Eastern District of Texas

BEAUMONT, Texas – Acting United States Attorney for the Eastern District of Texas Nicholas J. Ganjei announced today that he will be stepping down from the role of Acting United States Attorney effective November 16th. 

“The opportunity to serve the American people as Acting United States Attorney was both an awesome responsibility and a tremendous privilege,” said Mr. Ganjei.  “I was incredibly fortunate to have such a skilled team of prosecutors and staff by my side, and I could not have asked for more dedicated and professional law enforcement partners.  I am tremendously proud of the work we have done and all that we have accomplished.  Together, we made a real difference in the lives of the people of East Texas.”

Mr. Ganjei was named the Acting United States Attorney on January 20, 2021, after previously having served as the district’s First Assistant United States Attorney.  As Acting United States Attorney, Mr. Ganjei served as the chief federal law enforcement officer for the district, which includes 43 counties, more than four million people, and stretches across 35,000 square miles from the Oklahoma border to the Gulf of Mexico.  Mr. Ganjei oversaw a staff of approximately 120 prosecutors, civil litigators, and support personnel across six division offices and was responsible for all federal criminal prosecutions and civil litigation in the district involving the United States.   Under his leadership, the Eastern District of Texas advanced a number of Justice Department priorities, from violent crime and cybersecurity to corporate fraud and False Claims Act enforcement.  Mr. Ganjei was the first person of color to serve as the United States Attorney (acting or otherwise) in the Eastern District’s 164-year history.

During his tenure, Mr. Ganjei prioritized the prosecution of large-scale drug trafficking organizations, particularly international drug cartels, and oversaw one of the most prolific extradition practices in the nation.  Mr. Ganjei’s team successfully extradited, convicted, and obtained a life sentence against a high-ranking member of the Los Zetas cartel who participated in the massacre of an entire Mexican village in 2011; obtained a life sentence against a Guatemalan drug lord who supplied cocaine to cartels and guerilla fighters in Central and South America; and successfully prosecuted an international soccer star for his coordination of bulk drug shipments between Colombia and the United States.

Mr. Ganjei also prioritized the investigation and prosecution of complex frauds and white collar crime and increased the office’s staffing and resources devoted to such cases.  Under Mr. Ganjei’s leadership, the Eastern District of Texas obtained a 408-month sentence in a multi-million dollar fraud and money laundering scheme that victimized senior citizens and charities; obtained convictions against multiple individuals in connection with a kickback conspiracy related to genetic testing; obtained a sentence of 84 months for a doctor engaged in health care fraud; successfully prosecuted an engineer who fraudulently sought $13 million in Paycheck Protection Program (PPP) loans; secured a 97-month sentence against a defendant who defrauded an elderly East Texas victim of $4.8 million; successfully prosecuted a wedding planner for fraudulently obtaining more than $3.3 million in PPP loans, and investigated and indicted two defendants for the alleged fraudulent filing of hundreds of Economic Injury Disaster Loan (EIDL) applications.

Mr. Ganjei’s team also obtained bribery convictions against a former Richardson, Texas mayor and her land developer husband; disrupted and prosecuted an enormous international black market operation alleged to have trafficked over $100 million in stolen merchandise; convicted a Texas lawyer who swindled his Colombian drug trafficking clients by claiming he had successfully bribed judges and prosecutors; disrupted and prosecuted an alleged multi-scheme fraud conspiracy charged with stealing $17 million through romance scams and business email compromise; successfully prosecuted a Honduran national who solicited the murder-for-hire of family members; obtained a 30-year sentence against a North Texas pastor for the sexual exploitation of children; and obtained RICO convictions against numerous members of a violent white supremacist prison gang. 

On the civil side, the Eastern District of Texas recovered more than $44 million for the American taxpayer through Affirmative Civil Enforcement resolutions. In 2021, the Eastern District of Texas concluded four investigations into individual providers, totaling nearly $1 million, relating to the providers’ improper billing for implantable neurostimulators. Additionally, the Eastern District of Texas obtained resolutions in excess of $500,000 with four individual providers as part of its ongoing investigation into payment of kickbacks to induce referrals of advanced cardiac lab tests.

A hallmark of Mr. Ganjei’s time as Acting United States Attorney was the leveraging of agency and law enforcement partnerships.  EDTX teamed with the Special Inspector General for Pandemic Recovery as well as the Department of Justice’s Health Care Fraud Strike Force, Civil Frauds Section, Consumer Protection Section, Antitrust Division, and Civil Rights Division, among others, to combat novel criminal and civil legal challenges.

Prior to serving as Acting United States Attorney, Mr. Ganjei was a career prosecutor who handled all manner of federal crimes, having joined the Department of Justice in 2008.  Most recently, Mr. Ganjei investigated and prosecuted fraud, public corruption, and other complex white collar matters.  Mr. Ganjei also prosecuted organized crime, narcotics, and human trafficking cases.  Before joining the Department, Mr. Ganjei clerked for the Honorable Richard Allen Griffin of the Sixth Circuit Court of Appeals and the Honorable Ralph R. Erickson of the Eighth Circuit Court of Appeals (previously of the United States District Court for the District of North Dakota).  Mr. Ganjei has additionally taught on the subjects of civil, criminal, and constitutional law, at both the collegiate and law school level. 

Leadership responsibilities will be handed off to Brit Featherston, who presently serves as the district’s Executive Assistant United States Attorney.

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BEAUMONT, Texas – A federal grand jury in Beaumont has returned a three-count indictment charging nine individuals in drug trafficking conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

The indictment was returned on Nov. 3, 2021, and charges the defendants with conspiracy, trafficking in drugs with a counterfeit mark, and money laundering conspiracy.  The indictment remained sealed until the defendants were arrested this week.

The following individuals have been indicted and arrested:

• 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.    

“Food and drug products, particularly pharmaceuticals, undergo rigorous testing and inspection by federal authorities to ensure their safety,” said Acting U.S. Attorney Nicholas J. Ganjei.  “When producers evade those inspection and certification requirements, the innocent consumer could potentially be put at risk. EDTX is committed to ensuring public safety and upholding public trust through the vigorous prosecution of those that skirt these safety requirements.”

“These arrests send a strong and unified message that the illicit sales of misbranded and counterfeit drugs will not be tolerated in our communities and those who commit these offenses will be brought to justice,” said Daniel C. Comeaux, Special Agent in Charge Houston Division.  “The DEA and our law enforcement partners will continue to commit significant resources to the identification and investigation of those who are distributing fraudulently labeled drugs in our neighborhoods and communities.” 

“Selling illegal prescription drugs in the U.S. marketplace puts all consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”

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 Precent #2, Brazoria County Sheriff’s Office, Fort Bend County Sheriff’s Office, Liberty County Sheriff’s Office, and the Texas National Guard.  This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. Lee, with assistance from the Civil Division’s Consumer Protection Branch and the FDA’s Office of Chief Counsel.

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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DALLAS, Texas – Acting United States Attorney Nicholas J. Ganjei addressed the North Texas Crime Commission (NTCC) today via Zoom for their regular monthly meeting.

            Acting U.S. Attorney Ganjei was introduced by NTCC Chair David Dean:

            “David, thank you so much for that kind introduction.  Good morning everyone.  I want to thank you all for taking the time to join us on this Veterans Day holiday.  To that end, I would especially thank all the fighting men and women that have made incredible sacrifices, and continue to make such sacrifices, to keep our great nation strong and free.

            Today I’d like to speak to you about the robust international drug investigation, extradition, and prosecution practice happening in your Eastern District of Texas.  Colloquially known as “959” cases, these investigations and prosecutions result in the identification, capture, and conviction of some of the world’s largest and most notorious drug traffickers.  Through joint action with the DEA, HSI, other federal law enforcement partners, as well as our foreign law enforcement counterparts, EDTX can interdict bulk shipments of narcotics before they reach American shores and prosecute those trafficker kingpins who believe themselves above the law simply because they reside overseas.  I’d also like to speak to some of EDTX’s success in this space, and how these cases are, and will remain, a priority for the Eastern District.

            I want to speak to you today about what the Eastern District and its law enforcement partners are doing to stem the tide of the international drug trade – not just inside the borders of its own district, but on the soil of foreign nations and even on the high seas.  But before I do that, it’s probably best that I provide some background on what 959 cases are, and how these cases come to be.  Specifically, how does the United States prove its case when the drugs never actually enter the country, and, just as importantly, what is the process for bringing these drug traffickers from their homes to face justice in United States courts? 

            The international dimension of 959 cases makes them particularly worthwhile endeavors.  By looking internationally, EDTX can focus on the investigation and prosecution of the leadership class of these drug trafficking organizations, who invariably reside overseas.  When drugs are seized in a routine domestic narcotics investigation, those drugs have already been paid for, and that purchase money is either in the hands of the cartel, or on its way.   However, by interdicting drug shipments before they make landfall in the U.S., we can stop this addictive poison from ever infecting our communities, and we can disrupt a lucrative drug transaction from ever taking place.   This has a ripple effect on other related criminal activity, which is often financed by narco-dollars.  All of us, for example, have heard how drug cartels are expanding into human smuggling, including the smuggling of children, through our southern border.  By depriving cartels and other criminal organizations of drug proceeds, we help prevent other criminal activity—including financial crimes, public corruption, even terrorism—from ever taking root.

            The fact of the matter is that most of the illicit drugs consumed in the United States originate in Central and South America.  Mexico is the primary supplier of heroin and a major source of methamphetamine smuggled into this country. Similarly, Colombia is the leading producer of cocaine for the United States market.  Even illicit drugs manufactured in other parts of the world are smuggled into the United States through many of these same countries via established drug routes. For example, according to the Drug Enforcement Administration, precursor chemicals used in the production of illicit fentanyl often originate in China, but typically enter the United States through our southern border with Mexico.

            Recognizing this threat, as well as the need to attack the drug problem at its source, the United States has enacted “long-arm” statutes.  In the civil context, long-arm statutes apply to a particular state or entity’s ability to exercise jurisdiction beyond its borders.  In the criminal context, the idea is somewhat similar, insofar as these laws allow for the prosecution of individuals by the American justice system for narcotics crimes that occurred entirely in other countries.  These statutes fall into two primary classes.  First, there are narcotics trafficking and conspiracy statutes which are focused on the importation of narcotics into the United States.  Second, the United States has maritime statutes which are based on the centuries old concept of the “Law of the Sea,” providing law enforcement with statutory authority for interdiction on the high seas.  The Eastern District makes vigorous use of both in its international practice.  Allow me to elaborate on both.

               21 United States Code Section 959 is a criminal statute intended to reach violations committed outside of the United States.  Critically, no act needs to actually occur in the United States.  It makes it a crime for a defendant to manufacture or distribute a Schedule 1 or Schedule 2 controlled substance (drugs like cocaine, methamphetamine, marijuana, fentanyl, heroin, and the like), intending that the drug be imported into the United States, knowing that the drug will be imported into the United States, or even having reasonable cause to believe that the drug will be imported into the United States.  Similarly, Title 21 United States Code Section 963 makes it a crime to conspire to commit a violation of Section 959.  Here, the agreement to commit the unlawful act is the crime.  No overt act ever has to occur, simply an agreement.  Collectively, these two statutes give law enforcement a powerful set of tools to disrupt traffickers on their home turf.       

            The power and effectiveness of these long-arm statutes, however, is most evident when reviewing what we don’t have to prove.  The United States does not have to prove that

            (1)  The suspect ever entered the United States;

            (2)  That any criminal act occurred in the United States;

            (3)  That any drugs were actually successfully imported into the United States;

            (4)  That the suspect knew the buyers or the specific destination for the drugs in the United      States; or that

            (5)  The suspect actually physically delivered or distributed the drugs.

            So, against that statutory backdrop, what exactly are we looking for as we investigate and prosecute these international cases?  In other words, how do we prove our case?  Chiefly, we rely on three key pieces of evidence.

            First, we often rely on judicially authorized wiretap evidence.  These are typically wiretaps that are authorized and conducted in foreign countries and shared with us as a part of Mutual Legal Assistance Treaties (otherwise known as MLATs).  In certain limited circumstances, we can intercept communications here in the United States even when the communication occurs entirely outside of our borders because some wireless carriers route all conversations (wherever they might occur) through servers in the United States.  Naturally, this is some of our best evidence because it captures drug negotiations, delivery and payment coordination, and other logistical discussion.  And in situations where law enforcement has already interdicted or seized a drug shipment, targets may even openly speak about previous drug seizures—which is sort of the holy grail of establishing relevant conduct.

            Second, we also rely on “locally sourced” evidence, that is money, drugs, and other contraband seized in foreign countries, and shared with us in the MLAT process.

            Finally, cooperating witnesses are a critical aspect of these cases, just as they are in all of our cases.

            To put a finer point on it, though, how do we prove that a suspect knew, or had reasonable cause to believe, that drugs seized in Colombia, Guatemala, Mexico or elsewhere were destined for the United States? 

            The first indicator is quantity.  In 959 cases we’re dealing with importation-size quantities, amounts measured in thousands of kilograms—quite literally tons—of illicit narcotics.  Long experience tells us that drugs seized in this amount are not intended for distribution on the streets of Bogota or Mexico City, rather these drugs are unfortunately headed for the number one illegal drug-consuming country in the world, the United States.  Just as the hypothetical seizure of ten kilograms of cocaine in a stash house tells the reasonable person that the drugs are intended for distribution as opposed to personal use, the extreme quantities seen in 959 cases is proof of the intended export of the narcotics

            Second, experience with prior investigations has demonstrated that traffickers utilize known drugs routes.  When drugs are seized leaving the eastern Pacific side of Colombia or the Western Caribbean, those drugs are headed north through Guatemala, Honduras, and Mexico, with an eventual destination of the United States.

            Third, another key piece of evidence demonstrating that a given conspiracy is importing drugs into the United States is the seizure of U.S. currency from traffickers abroad.  It is not at all uncommon to find that bulk cash seized in Central or South America is actually United States currency, itself the proceeds of prior drug loads. 

            Fourth, drug traffickers, like legitimate businessmen, frequently use logos or brands to help advertise and identify their products.  When bricks of cocaine are produced and packaged at laboratories in Colombia, they are embossed with logos such as a scorpion, a Texas longhorn, or even the name of the cartel itself—something to signify to the buyer that the packaged drug is of a level of quality that they can trust, as well as a warning to would-be thieves.  When kilograms of cocaine are seized in New York, Chicago, Seattle, or right here in Dallas, we can frequently link those bricks to known drug lords and their laboratories through the logos they display.

            Lastly, but not least, wire intercepts and cooperating witnesses frequently explicitly discuss the intended destination of the drugs.        

            Let me know turn to EDTX’s maritime interdiction efforts.  Under the nation’s maritime laws, found in Title 46 of the United States Code, there is no need to prove that a group of defendants intended to import a load of narcotics into the United States.  Rather, EDTX only needs to prove that the United States has jurisdiction over the vessel itself.  Under the laws of the high seas, as codified in Title 46, a sovereign nation has jurisdiction over any vessel on the high seas that is either stateless (meaning it is not flying the flag of any country); or where the flag country consents (in the case of a vessel that is flying a flag).

            The Eastern District of Texas coordinates closely with the United States Coast Guard—who have been incredible partners—in order to prosecute many cases involving of these types of seizures.  In fact, just last month, we accepted two of these type of seizures for prosecution in our district, one with 1.8 tons of cocaine and another with 4.2 tons of cocaine.  Collectively, that is six tons of cocaine that will never reach American towns, and that’s several million dollars that will never reach the wallets of the cartel.

            Allow me to provide an example from an already resolved case.  A few years ago, a group of Colombian drug traffickers that were targeted by EDTX had arranged to transfer over one ton of cocaine to a vessel which was floating several hundred miles off of the west coast of the Galapagos Islands.  When the United States Coast Guard approached the ship, they discovered that it was a Chinese fishing vessel.  The Chinese government, in the first known case of its kind, consented to the United States taking jurisdiction over the vessel and its crew.  The crew members were subsequently prosecuted in the Sherman Division of the Eastern District and all defendants were convicted.

            The Eastern District has aggressively utilized both prosecutorial tools – importation statutes and maritime jurisdiction – doing so with great success.  For Fiscal Year 2020, in regard to organizational drug cases, otherwise known as OCDETF, the Eastern District was number one in the country for the number of defendants prosecuted, beating out much larger (and more famous) districts like SDNY, the Southern District of Florida, and the Central District of California.  So, when you think drug prosecution, instead of thinking New York, Miami, and Los Angeles, I urge to think Plano, Sherman, and Tyler.  EDTX also led the nation in the number of defendants in opioid and fentanyl prosecutions, as well the number of these organizational defendants involved in financial crimes.  And the Eastern District was number two in the country for the number of indictments against leadership-level defendants in these organizational cases.  And these numbers are driven to a large extent by our office’s relentless pursuit of overseas traffickers, made possible through our valuable 959 partnerships.  

            In discussing these cases, and 959 practice generally, one question inevitably comes up:  Why the Eastern District of Texas?  Why does the Eastern District of Texas prosecute so many of the world’s largest drug traffickers?”  I think the subtext there is “why does such a small district, particularly one without the major population centers seen in other districts, account for such a large share of international defendants?”  The answer is two-fold.

            In the late 1970’s the Eastern District of Texas undertook the investigation and prosecution of one of the richest and most powerful men in Texas, Rex Cauble.  Cauble was larger-than-life.  He owned a chain of western wear stores, a fleet of shrimp boats, ranches, and even a bank.  He was worth $100 million or more. He was known, too, as an anti-drug crusader who recorded his own anti-drug commercials. All the while, however, he was using his fleet of shrimp boats and his private jets to transport over $70 million worth of marijuana from Colombia directly into Texas.  The Eastern District prosecuted him and his entire organization, making national headlines.  This case and other cases led to the establishment of long and lasting relationships with agents and officials in Colombia and throughout Central and South America.  These relationships, in turn, led to joint efforts over the decades to prosecute the highest-level drug traffickers in the courts of the Eastern District.         

            Which leads me to my second point.  In East Texas, we have great judges who are both fair-minded and serious about enforcing the law.  I honestly cannot sing their praises high enough.  They are thorough, prepared, and well-versed in the law.  Furthermore, we have fair but tough juries who are no-nonsense when they evaluate these cases.  Moreover, years of positive experiences and great case results have shown our federal law enforcement partners, as well as our allies in Colombia and other countries, that EDTX can be counted upon to be aggressive and engaged, and to share the same passion for stomping out the drug trade that they do.

            Let me now speak a little bit about the mechanics of how we get defendants here.  The short answer is through the herculean efforts of the United States Marshals Service.  The work that U.S. Marshal John Garrison and his team do to get extradited defendants to the United States is nothing short of extraordinary.

            The longer answer, however, is that extradition is a matter of sovereign discretion.  Both treaties and actual practices can differ widely among countries.  The required paperwork to extradite defendants from another country may vary from 40 or 50 pages—to literally volumes, or even boxes, of papers.  Similarly, extradition proceedings in the foreign country can take anywhere from a few months to a few years, depending on the provisions of the respective treaty.  Most countries afford a hearing in a judicial setting, but again, the specifics of the hearing will vary from country to country.  Additionally, most countries afford a defendant at least one level of judicial review, as well as a final decision by one or more executive authorities.  Obviously, these proceedings will extend the length of the extradition process.

            The bulk of our cases come from Colombia and Guatemala.  This reflects the reality that Colombia is a major source country for cocaine and heroin, and that Guatemala is the critical waypoint, for reasons of geography, that nearly all loads of narcotics have to pass through on the way to the United States. Mexico is, of course, also a major transit point but it is much more difficult to accomplish extraditions from Mexico, often taking several years, sometimes even up to a decade.

            Since 2017, the Eastern District has extradited a total of 92 individuals from Colombia, 11 from Guatemala, and ten from Mexico.  There are many more suspects pending arrest in those countries, and even more than that, if one were to include requests to extradite that are currently pending before the State Department.  I know these numbers might not mean much when cited in the abstract, but, let me just say, that’s a lot.  In fact, one—just one—of our AUSAs in the Plano office is responsible for 70 percent of all of Guatemala’s extraditions.  By all accounts, the demand for extradition is only increasing, and EDTX, as part of its commitment to its 959 practice and partnerships, is scaling up in staffing and resources to meet the need.

            So, once we have properly investigated the case and our grand jury has handed up an indictment there are four key steps to the process of getting the defendant to the United States.    First, we work with our foreign partners to locate the fugitive.  This can often be one of the more difficult steps.  Second, we submit a formal request asking the foreign jurisdiction to issue a warrant based on our indictment--this is called a Provisional Arrest Warrant (or PAW) because it is conditioned on our promise to follow up with a formal extradition request once the fugitive is arrested.  Third, the foreign authorities obtain the requested warrant and arrest our defendant.  The defendant then waits in jail while we have a short deadline to have our State Department make a formal extradition request to the foreign ministry of the other nation.  Finally, if the formal extradition request is approved, the defendant is transported to the United States, courtesy of the United States Marshals Service.  This process can take as little as 30 days and, again, as much as a decade.  In our experience, it usually takes around nine months for a extradition from Colombia and several years for one from Mexico.

            Having explained the background of how we get our international cases, I would now, if you will indulge me, love to tell you about some of the exciting successes that we have had in the last year or two.

            I don’t know if we have any Netflix fans here, but if we do, you may have heard of a series called “Somos.”  It is a difficult-to-watch series that chronicles the events that led up to a massacre in a small village in Mexico called Allende by the Los Zetas cartel.  The Zetas were notorious for their brutality, even by cartel standards.  The Zetas ruthlessly carried out beheadings, hangings, torture, kidnappings, and even boiling or burning people alive, in order to intimidate and demoralize enemies and innocent civilians.

            In September of this year, after seven years of extradition efforts, one of the men most responsible for these murders was sentenced to life imprisonment in the Eastern District of Texas. Numerous witnesses described how Hugo Cesar Roman-Chavarria, also known as “El Vecino,” participated in the massacre by traveling around Allende with Zetas gunmen, pointing out the homes of relatives and associates of a person they suspected was providing information to law enforcement, marking these people and their families for death.  Zetas gunmen went door-to-door throughout the village, killing men, women, and children, decimating the town.  After the Zetas finished their mass murder, they loaded the bodies into a barn and incinerated the building.  A definitive conclusion has never been reached as to the number of men, women, and children who lost their lives, but the total is believed to be at least 100, and possibly up to 300.

            Over the course of a three-day sentencing hearing in August and September of this year the district court heard from 13 witnesses for the government, including other high-ranking Zetas members, who, like Chavarria, had been extradited to the United States to face charges.  These witnesses described not only Chavarria’s willing involvement in this massacre, but also described his role as a major player in the drug importation trade, overseeing the shipment of enormous quantities of cocaine between Piedras Negras, Mexico, and Eagle Pass, Texas on behalf of the Los Zetas cartel.  In the end, Chavarria received a well-deserved life sentence, and hopefully some justice and peace was delivered to the families and friends of those who were killed in Allende.

            Similarly, just last month, one of the largest and most violent drug traffickers in Guatemala, Wilson Luargas-Garcia, was also sentenced to a term of life imprisonment.  Luargas-Garcia was a prolific drug trafficker, responsible for the trafficking of large amounts of cocaine to drug cartels and guerrilla fighters in Central and South America.  He coordinated shipments with the Revolutionary Armed Forces of Colombia (also known as the FARC), one of Colombia’s largest and most violent rebel groups. Luargas-Garcia, who had a reputation for employing violence against his rivals, used illicit proceeds from his drug sales to acquire weapons and to train his personal paramilitary security guards.  In April 2018, Luargas-Garcia was extradited to the Eastern District of Texas to face drug charges.  Despite being in custody, he continued to run his drug trafficking organization from various local jails, using fellow inmates to smuggle cell phones and other contraband into the jail facilities.  Federal investigators teamed with the Smith County Sheriff’s Office and the Guatemalan Ministerio Público to uncover these activities and dismantle his drug operation.  In retaliation, Luargas-Garcia threatened to kill one of our Eastern District federal prosecutors.  Like Chavarria, Luargas Garcia also received a well-deserved life sentence.

            One more colorful defendant was Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.”  Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America, with an eventual destination of the United States.  Based on this conduct, Viafara was indicted, extradited, and eventually sentenced to 11 years for his involvement in narcotics trafficking.  One fun fact is that Viafara Mina was once a star soccer player in Europe, playing for teams in Great Britain and Spain and, notably, the Colombia National Team.  Despite all of this, the lure of even greater riches brought him into narcotics trafficking.  In the end, it only brought him a lengthy prison sentence.         

            In closing, I wish to make one obvious, but crucial point.  We could not bring these cases without the tremendous partnerships that we enjoy with our federal, state, local, and international partners.  For those agents and officers in attendance, let me say that EDTX is tremendously grateful for your hard work, your dedication, and your commitment to the rule of law.  You make a real difference in the lives of Americans, as well in the lives of those who live in countries where the fight against drug cartels is a matter of literal life and death.  EDTX will continue to be your partner and your ally as we continue this noble pursuit.  Let us, together, bring this fight to the cartels’ front door.

            Thank you again for the invitation to come and address you today.  I truly appreciate the contribution that the North Texas Crime Commission makes to keeping public safety at the forefront of the public conversation.  Thank you for what you do.”

The North Texas Crime Commission (formerly the Greater Dallas Crime Commission) was established in 1950.  Its belief is that proper enforcement and enlightened prevention can be achieved through a comprehensive and cooperative effort involving concerned citizens and law enforcement.  In addition to monthly membership breakfasts, the NTCC travels to Austin monthly during the Legislative Session to meet with key lawmakers and annually to Washington, D.C. to meet with law enforcement officials and lawmakers.

 

MARSHALL, Texas – A Jefferson man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.

Beau Daniel Merryman, 20, pleaded guilty to distribution of information relating to explosives and destructive devices today before U.S. Magistrate Judge Roy S. Payne.

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.

“This defendant had the knowledge, intent, and capability to inflict great harm on our East Texas community,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Thanks to the extraordinary investigative work of our agency partners, he was stopped before any lives were lost or damage was done.”

“This defendant believed he was sharing his knowledge and expertise with individuals who would cause significant damage or injury to targets including federal law enforcement and critical infrastructure,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent activity. We ask the public to stay vigilant and to continue reporting suspicious or threatening behavior to law enforcement.”

Merryman was indicted by a federal grand jury on Oct. 16, 2019.  He faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation Tyler Resident Agency, Bureau of Alcohol Tobacco Firearms and Explosives, Cass County District Attorney's Office, Atlanta Police Department, and Tyler Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Ryan Locker.

BEAUMONT, Texas – An Indian national residing in Seattle, WA, has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

Aakash Gandhi, 28, pleaded guilty to conspiracy to commit mail fraud today before U.S. District Judge Marcia A. Crone.  

According to information presented in court, throughout the month of October 2020, a Beaumont resident received multiple phone calls from an individual—later identified as Gandhi—falsely purporting to be a special agent with the Social Security Administration.  Gandhi demanded the victim send large sums of cash through the mail so they could receive a new social security number and avoid alleged criminal liability.  The elderly Beaumont resident fell victim to the scam and sent more than $20,000 in cash through the mail as requested to a UPS store in Seattle.  Gandhi received those packages in Seattle and forwarded a portion of those funds to his co-conspirators. 

“There can be no doubt that phone scams are not merely a nuisance, but a genuine threat to the financial livelihood of all Americans,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Although phone scams continue to increase in number, EDTX is scaling up through staffing and training to meet and defeat this challenge.”

“Criminals continue to exploit the elderly and vulnerable populations in search of a profit.  HSI is committed to bring these fraudsters to justice and return hard earned money.” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest.  “This should serve as a reminder that the U.S. Government will never call and ask you to send cash in the mail.”

Gandhi was indicted by a federal grand jury on July 8, 2021.  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.

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. 

The case is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jonathan C. Lee.

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SHERMAN, Texas - A Denton County tax preparer has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Tendai Gurure, 46, pleaded guilty on May 28, 2021 to aiding and assisting in preparation of false and fraudulent tax returns and was sentenced to 24 months in federal prison today by U.S. District Judge Jeremy Kernodle.  Gurure was additionally ordered to pay restitution in the amount of $2,928,740.10.

According to information presented in court, Gurure owned and operated TaxLinks, a tax return preparation business.  An investigation revealed that Gurure was filing returns that included false Schedule C information, fictitious business losses, and false claims for Earned Income Credits.  A search warrant was executed on Gurure’s business and a subsequent review of seized documents determined that Gurure was responsible for losses to the government totaling $2,928,740.10 for tax years 2015, 2016, and 2017.

“The American public places a tremendous amount of trust in the hands of tax preparers, and the IRS, in turn, trusts these preparers to abide by all laws and file accurate returns,” said Acting U.S. Attorney Nicholas Ganjei. “Fraudulent tax returns are ultimately a theft against the public fisc and a breach of the public trust, and EDTX will do its utmost to protect the integrity of both.”

This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Kevin McClendon.

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PLANO, Texas – An Irving man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

Ira Morya Davis, 40, pleaded guilty to conspiracy to commit wire fraud before U.S. Magistrate Judge Kimberly Priest Johnson on Oct. 26, 2021.

According to information presented in court, Davis and at least two other co-conspirators devised a fraud scheme targeting various financial institutions and real estate purchasers.  To accomplish the fraud, Davis and his co-conspirators created shell companies and executed various mortgage and property documents that purportedly conveyed ownership interests of various real properties from the true owners to the conspirators’ shell companies.  Davis and his co-conspirators then filed the fraudulent documents with county offices falsely showing that they had mortgage liens on the properties, sold the properties, and triggered the title companies to unwittingly fund the co-conspirators.  During the course of the scheme, Davis obtained and used fraudulent notary stamps using real people’s identities, which enabled the conspirators to legitimatize the otherwise fraudulent documents.  Davis and his co-conspirators targeted multiple properties, and the financial harm resulting from his offense was at least $2.5 million. 

“The Eastern District is committed to tackling complex fraud schemes, including those that target financial institutions and purchasers in the real estate market,” said Acting United States Attorney Nicholas J. Ganjei.  “Regardless of the complexities involved, the public can be assured that EDTX and its law enforcement partners are working tirelessly to disentangle complex white collar fraud schemes and bring culpable individuals to justice.” 

Davis was indicted by a federal grand jury on March 12, 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.

The case is being investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation.

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PLANO, Texas – A Nigerian national has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

Sobanke Idris Sunday Adereti, 24, pleaded guilty to false use of a passport and attempted bank fraud today before U.S. Magistrate Judge Kimberly Priest Johnson.

According to information presented in court, Adereti knowingly used a false passport in an attempt to open a bank account for the purpose of furthering fraud schemes and engaging in money mule activity.

“A significant danger of document fraud is that it helps fraudsters move their ill-gotten gains through the US bank system by concealing it in legitimate-looking bank accounts,” said Acting U.S. Attorney Nicholas J. Ganjei, adding, “this not only affects our banks but also the individual victims whose identities were used to open the accounts.  Thanks to astute bank employees and the quick work of law enforcement, this defendant was prevented from further fraud against innocent victims.”

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.   

The case was investigated by the Diplomatic Security Service of the U.S. Department of State, the U.S. Secret Service, the U.S. Small Business Administration-Office of Inspector General, and with assistance from the Federal Bureau of Investigation.

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BEAUMONT, Texas – A Beaumont man has pleaded guilty to hurricane-related fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Ricky Gonzales, 61, pleaded guilty to fraud in connection with a major disaster or emergency benefits today before U.S. Magistrate Judge Christine L. Stetson.

According to information presented in court, Hurricane Harvey made landfall in southeast Texas in August 2017, causing extensive damage to the region.  Gonzales applied for assistance from the Federal Emergency Management Agency (FEMA) for damage to a residence in Mauriceville, which he claimed was his primary residence.  Gonzales received approximately $35,000 as a result of his claim.  This residence, however, was actually rented and occupied by Gonzales’ daughter, who also applied for FEMA assistance.  Her application was denied because of the duplicate applications for the same address.  In order to receive FEMA funds, the applicant must use the property as their primary residence.  Rental income properties are not eligible for FEMA funds.   

Gonzales was indicted by a federal grand jury on July 8, 2021.  He faces up to 30 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

“FEMA relief funds are intended to assist Americans who have been affected by life-changing disasters, not as a publicly-funded handout for unscrupulous fraudsters,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX will protect the integrity of these relief programs, and the interests of the American taxpayer, by vigorously prosecuting anyone who attempts to steal disaster relief funds.”

This case is being investigated by the Department of Homeland Security Office of Inspector General and the Federal Emergency Management Agency and prosecuted by Assistant U.S. Attorney Rachel Grove.  

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BEAUMONT, Texas - A Cuban national has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Victor Entenza, 30, pleaded guilty on May 10, 2021 to conspiracy to commit access device fraud and aiding and abetting aggravated identity theft.  Entenza was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.

“Typically, a skimmer, such as the one found in this case, is placed inside a gas pump and used by criminals to collect credit card information from victims using the pump,” said Acting U.S. Attorney Nicholas Ganjei. “The crime is difficult to detect because intended gas purchase will proceed without interruption or notification,” Ganjei added. “A single gas station skimmer is capable of storing credit card information for hundreds of victims.”

According to information presented in court, on Jan. 27, 2017, an officer with the Nacogdoches Police Department conducted a traffic stop on a vehicle driven by Entenza and occupied by Cuban nationals, Orlando Enrique Quesada-Oliva, 25, and Ricardo Chavez-Travieso, 29.  During the traffic stop, the officer discovered a credit card bearing the name of third party, leading to a more exhaustive search of the car.  During this search, the officer found a notepad that listed various gas stations in Texas, Tennessee, and Alabama, numerous cell phones, a laptop computer and tape used as a security seal/tamper indicator for gas station fuel pumps. The officer also located a card skimmer, an encoder, a key used to open gas pumps, and additional credit cards located in hidden compartments within the vehicle. Credit card information for nine individuals, none of whom were occupants the vehicle, was additionally found.

Entenza, Oliva, and Travieso were indicted by a federal grand jury on Oct. 8, 2020 and charged with federal violations.  On July 12, 2021, Travieso pleaded guilty to conspiracy to commit access device fraud and aiding/abetting aggravated identity theft. Travieso is awaiting a sentencing date.  The case against Oliva is still pending.

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

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SHERMAN, Texas – A Guatemalan national who operated an international drug trafficking ring received a life sentence, announced Acting U.S. Attorney Nicholas J. Ganjei.

Wilson Wilfredo Luargas-Garcia, a/k/a “Primazo,” 44, was convicted on Sep. 18, 2019 to conspiracy to manufacture and distribute five kilograms or more of cocaine for distribution into the United States.  On Oct. 18, 2021, after a full-day sentencing hearing that stretched into the late evening hours, U.S. District Judge Amos L. Mazzant sentenced Luargas-Garcia to a term of life imprisonment.

According to information presented in court, Luargas-Garcia was a prolific drug trafficker, responsible for the trafficking of large amounts of cocaine to drug cartels and guerrilla fighters in Central and South America.  He coordinated shipments with the Revolutionary Armed Forces of Colombia (also known as the FARC), one of Colombia’s largest and most violent rebel groups. Luargas-Garcia, who had a reputation for employing violence against his rivals, used illicit proceeds from his drug sales to acquire weapons and to train his personal paramilitary security guards.

In April 2018, Luargas-Garcia was extradited to the Eastern District of Texas to face drug charges. Despite being in custody, however, he continued to run his drug trafficking organization from various local jails.  Fellow inmates helped to facilitate Luargas-Garcia’s drug operation by smuggling cell phones and other contraband into the jail facilities.  Federal investigators teamed with the Smith County Sheriff’s Office and the Guatemalan Ministerio Público to uncover these activities and dismantle the drug operation.  In retaliation, Luargas-Garcia threatened to kill a federal prosecutor. 

“Mr. Luargas-Garcia’s sentence sends a strong message that international drug traffickers are not safe from prosecution simply because they reside overseas,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX will continue to be aggressive in its efforts to extradite and prosecute international drug traffickers and to stop their deadly shipments from ever making it to American shores.”

“Today, Mr. Luargas-Garcia is being held responsible for actions he took thousands of miles away that have a direct impact on our neighborhoods and our families,” said DEA Special Agent in Charge Eduardo A. Chávez. “Criminals who attempt to broker and facilitate cocaine shipments into the United States will meet swift justice through DEA Dallas’ tireless efforts to dismantle these Transnational Criminal Organizations across the world.”

“The sentence is a remarkable success,” said Gerson Russell Alegría Meza, Chief Prosecutor for narcotics in Guatemala.  “The fundamental strategy to fight against drug trafficking is to work in a safe, immediate, coordinated, and effective manner between the United States and Guatemala.”

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Smith County Sherriff’s Office, and the Fiscalia de Delitos de Narcoactividad, Ministerio Publico, Guatemala.  The Justice Department’s Office of International Affairs provided significant assistance in securing his extradition from Guatemala.

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BEAUMONT, Texas - A Port Arthur man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Michael James Shaw, 40, pleaded guilty on June 30, 2021 to possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison today by U.S. District Judge Marcia Crone.

“Methamphetamine remains one of the greatest threats to the health and safety of East Texans,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The sentence in this case is directly proportional to the amount of methamphetamine Mr. Shaw intended to traffic, and thus proportional to the harm he was willing to inflict upon the Jefferson County community.”

According to information presented in court, Shaw was arrested on Oct. 6, 2020 after Jefferson County Narcotics Task Force officers executed a search warrant at Shaw’s residence and found 454 grams of pure methamphetamine. The drugs were hidden inside an upholstered chair in Shaw’s living room. The officers also found four firearms locked in a safe inside the master bedroom.      

Shaw was indicted by a federal grand jury on April 7, 2021 and charged with the drug trafficking violations.

This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.

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SHERMAN, Texas – A former McKinney man has been charged with federal violations related to his alleged participation in a scheme to file fraudulent loan applications seeking millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Sinoj Kallamplackal Joseph, 42, was charged in an indictment filed in the Eastern District of Texas with seven counts of wire fraud and three counts of making false statements to a bank.  The indictment alleges that Joseph submitted fraudulent applications for over $3 million in PPP loans to an SBA-approved lender in the names of MK Analytics, LLC; Sanbi Solutions, LLC; and KMS Traders Group, LLC.  In these applications, Joseph fabricated payroll records, including the number of employees working for his companies and the amounts of his payroll costs, the indictment alleges.  The indictment also alleges that Joseph submitted fraudulent documentation in support of his applications.  If convicted, Joseph faces up to 20 years in federal prison for the wire fraud charges and up to 30 years in federal prison for making false statements to a bank.

“This indictment is the latest installment in our District’s efforts to hold accountable those who perpetrate fraud on the Paycheck Protection Program,” said Acting U.S. Attorney Nicholas J. Ganjei.  “PPP has been a vital tool for American small businesses and their employees who have struggled with the economic fallout from the pandemic.  EDTX is committed to pursuing fraudsters who have exploited this program to the detriment of others.”

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 is being investigated by Internal Revenue Service-Criminal Investigation, Small Business Administration - OIG, Federal Reserve Board - OIG, FDIC - OIG, and the Treasury Inspector General for Tax Administration.  Assistant U.S. Attorneys Sean J. Taylor and Nathaniel C. Kummerfeld are prosecuting the case.

A federal criminal indictment is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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BEAUMONT, Texas – The U.S. Department of Justice, the Eastern District of Texas, the U.S. Environmental Protection Agency (EPA), and the Texas Commission on Environmental Quality (TCEQ) have announced a settlement with E.I. Du Pont de Nemours and Company (DuPont) and Performance Materials NA, Inc. (PMNA) to resolve alleged violations of hazardous waste, air, and water environmental laws at the PMNA Sabine River chemical manufacturing facility in Orange, Texas.  Under this settlement agreement, DuPont and PMNA will conduct compliance audits, control benzene emissions, and perform other injunctive relief to address violations at the facility.  Defendants will also pay a $3.1 million civil penalty and attorney’s fees to the State of Texas.  These measures will benefit nearby communities already overburdened by pollution by reducing uncontrolled emissions of hazardous air pollutants and unpermitted discharges from surface impoundments at the facility.

In a joint complaint filed on October 13, 2021, the United States, on behalf of the U.S. Environmental Protection Agency (EPA), and the State of Texas asserted claims against DuPont and PMNA for alleged violations of the Resource Conservation and Recovery Act (RCRA), the Clean Water Act (CWA), the Clean Air Act (CAA), Section 7.002 of the Texas Water Code, Tex. Water Code § 7.002, and applicable regulations, at the former DuPont facility now owned and operated by PMNA.  The alleged RCRA violations include failure to make hazardous waste determinations, the treatment, storage or disposal of hazardous waste without a RCRA permit, and failure to meet land disposal restrictions. The alleged CWA violations include unpermitted discharges of process wastewater in violation of the facility’s Texas Pollutant Discharge Elimination System permits. The alleged CAA violations include failure to comply with the national emission standards for hazardous air pollutants for benzene waste operations and for miscellaneous organic chemical manufacturing for certain waste streams.

“The Eastern District of Texas is a proud home to numerous natural resources including lakes, rivers, and streams, which span the district,” said U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas. “We are also home to some of the leading names in industry. Generally, these two co-exist harmoniously. However, when industry violates applicable laws and harms the environment, the Eastern District of Texas is committed to taking steps to hold that actor accountable and require better compliance in the future.” 

“The petrochemical industry must operate in compliance with environmental laws,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to hold operators accountable to address pollution from industrial operations that violate the law, such as those at the Sabine River facility, and to enhance public health and the environment, particularly in surrounding communities overburdened by industrial pollution.”

“This settlement ensures proper management of hazardous wastes, requires a comprehensive review of the facility’s environmental compliance across all media, and ensures cleanup of contamination from past operations,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance.  “This case not only benefits the environment but demonstrates our commitment to advancing justice and equity to communities across Texas.”

 “TCEQ is committed to protecting human health and the environment consistent with sustainable economic development,” said Executive Director Toby Baker for the Texas Commission on Environmental Quality (TCEQ). “This settlement is a representation of that commitment.”

Under the settlement, an independent third party will conduct multimedia compliance audits to review the facility’s compliance with RCRA, the CWA and the CAA, as well as related state laws and regulations. Additionally, the defendants will undertake measures to monitor and control benzene emissions and pH levels in wastewaters. They also will conduct soil, sediment or groundwater sampling to determine the extent of contamination within and from certain surface impoundments. The defendants will perform this sampling and necessary cleanup work pursuant to the Texas Risk Reduction Program.

The consent decree was lodged with the U.S. District Court for the Eastern District of Texas on Oct. 13, 2021 and is subject to publication in the Federal Register and an opportunity for public comment.

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WASHINGTON – The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department. 

The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints, and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.

“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are pleased to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”

“Too often children in juvenile facilities like those at issue here are abused, mistreated, and deprived of essential services,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions, and the Department of Justice is committed to protecting the rights of children who end up in such facilities. We look forward to working with our colleagues in the United States Attorney’s Offices throughout Texas to ensure that the State’s treatment of these children comports with constitutional standards.”

The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the Department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The Department’s work has led to important reforms to protect the rights of young people housed in those facilities. 

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the United States Attorney’s offices in the Eastern, Southern, Northern and Western Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].

Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.

BEAUMONT, Texas – A Port Neches man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Rion Carlos, 40, pleaded guilty to transportation of child pornography today before U.S. Magistrate Judge Christine L. Stetson.

“Viewing, possessing, trading, or transporting child pornography ultimately drives demand for its production,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX is committed to punishing those on both the production and consumption side of this disgraceful and exploitive industry.”

According to court documents, Carlos admitted to using the internet and a cellular phone to provide an individual with links to a cloud storage service, causing the transport of over 300 images of child pornography, including some images that depicted prepubescent minors.  

Carlos was indicted by a federal grand jury on June 2, 2021.  He faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is part of Project Safe 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 prosecuted by Assistant U.S. Attorney Rachel Grove.

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BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Charles Nicholas Lock, 34, pleaded guilty to being a felon in possession of ammunition today before U.S. District Judge Marcia A. Crone.

“This case unfortunately shows why convicted felons are prohibited from owning firearms and ammunition,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Project Safe Neighborhood prosecutions like this one demonstrate that the people of Jefferson County should not, and will not, accept the unreasonable risk of harm posed by armed felons in their community.”

According to court documents, on Oct. 22, 2018, officers with the Port Arthur Police Department responded to an emergency call regarding an individual who had been shot inside a residence on 7th Street in Port Arthur.  Upon arrival, they located the victim laying on a couch, bleeding from a gunshot wound to his leg.  The victim told officers that he got into a verbal argument with Charles Lock, after which Lock fired three shots at him, striking him one time in the leg.  Other witnesses reported seeing Lock flee the scene after the shooting.  Officers located three spent .380 caliber shell casings on the floor of the residence where the shooting occurred.  Further investigation revealed Lock has previously been convicted in October 2008 of possession of a controlled substance in Jefferson County, Texas, and as a convicted felon, is prohibited from owning or possessing firearms or ammunition.

Lock was indicted by a federal grand jury on Sep. 7, 2021.  He faces up to 10 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Port Arthur Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.

 

TYLER, Texas – A Tyler woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Theresa Cecelia Soliz, 37, pleaded guilty on March 4, 2021, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. 

According to information presented in court, Soliz was arrested in December 2019 following a traffic stop near Canton, during which she was found to be in possession of almost a kilogram of methamphetamine along with various pills, THC oil, and heroin. Soliz admitted to obtaining the methamphetamine from a supplier in Dallas, and that she intended to return to Tyler and distribute it to her customers, who would then repackage and sell it to users. 

Soliz and three others were indicted for federal drug trafficking violations on July 15, 2020.  Nasir Saleh-Saad Jabr, of Tyler, was sentenced to 140 months in prison on May 20, 2021; Ralph Paul Pressley, III, of Troup, was sentenced to 135 months in prison on April 23, 2021; and Tammy Lynn Dilbeck, of Troup, was sentenced to 100 months in prison on May 13, 2021.

“Today’s sentence ensures that this group of people will no longer be able to distribute their poison to East Texans for the foreseeable future,” said Acting U.S. Attorney Nicholas J. Ganjei. “We remain grateful to our law enforcement partners for their unwavering commitment to eradicating illegal drug distribution everywhere.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Smith County Sheriff’s Office, the Van Zandt County Sheriff’s Office, and the Tyler Police Department.  This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.

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A Texas man was sentenced today to 87 months in prison followed by three years of supervised release for his role in directing subordinate Aryan Circle (AC) gang members to assault and inflict serious bodily injury on a victim.

Michael Martin, aka Aryan Prodigy and AP, 38, of Santa Fe, Texas, pleaded guilty to committing assault resulting in serious bodily injury in aid of racketeering on March 4, 2021. According to court documents, the AC is a violent, race-based, prison-based gang with hundreds of members operating inside and outside of state and federal prisons in states throughout the country. The AC enforces its rules and promotes discipline among its members, prospects and associates through threats, intimidation and acts of violence including, but not limited to, acts involving assault and murder. Members are required to follow the orders of higher-ranking members without question.

Martin joined the AC in the early 2000s and held the rank of upper board member at the time of the offense, meaning that he was one of the five highest-ranking AC members in the country. In this role, Martin made decisions and directed the actions of other gang members regarding a range of issues including who to recruit and admit as members of the gang; who should be disciplined or removed for violating the AC rules; and which rival gangs the AC would fight with or against. 

According to court documents, Martin learned that another AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Martin ordered AC members to attack the member to “X” him, or remove him from the gang, because it violated the AC’s rules to join a different organization. On Martin’s orders, several AC members then violently beat the victim, including by kicking the victim in the head while he was on the ground. The attack resulted in the victim obtaining medical care and suffering long-term injury.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.

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 Criminal Division’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 prosecuted the case.

BEAUMONT, Texas – A Santa Fe, Texas, man has been sentenced to federal prison for his role in a violent gang-related beating in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division today.

Michael Martin, a/k/a Aryan Prodigy and AP, 38, pleaded guilty on March 4, 2021 to committing assault resulting in serious bodily injury in aid of racketeering and was sentenced to 87 months in federal prison by U.S. District Judge Thad Heartfield on Oct. 5, 2021.

“The defendant’s violent actions demonstrate his commitment to a hateful and dangerous ideology,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Today’s sentence shows that no gang is above the law.”

According to court documents, the Aryan Circle (AC) is a violent, race-based, prison-based gang with hundreds of members operating inside and outside of state and federal prisons in states throughout the country. The AC enforces its rules and promotes discipline among its members, prospects, and associates through threats, intimidation, and acts of violence including, but not limited to, acts involving murder and assault. Members are required to follow the orders of higher-ranking members without question.

Martin joined the AC in the early 2000s and held the rank of upper board member at the time of the offense, meaning that he was one of the five highest-ranking AC members in the country. In this role, Martin made decisions and directed the actions of other gang members regarding a range of issues including who to recruit and admit as members of the gang, who should be disciplined or removed for violating the AC rules, and which rival gangs the AC would fight. 

According to court documents, Martin learned that another AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Martin ordered AC members to attack the former member to “X” him, or remove him from the gang, because it violated the AC’s rules to join a different organization. On Martin’s orders, two AC members violently beat the victim, including by kicking him in the head while he was on the ground. The attack resulted in the victim obtaining medical care and suffering long-term injury.

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 Criminal Division’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 prosecuted the case.

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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 Acting U.S. Attorney Nicholas Ganjei today.

Benjamin Bernard Garrett, 40, pleaded guilty on May 4, 2021, to being a prohibited person in possession of a firearm and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield.

According to court documents, on Sep. 6, 2020, Beaumont police responded to a call of shots fired and was told the suspect was leaving in a white Chevy Malibu.  Officers located the vehicle and attempted to conduct a traffic stop.  The car did not stop until it pulled into a driveway.  The driver, identified as Garrett, was taken into custody for evading with a motor vehicle.  A search of the vehicle revealed two handguns. Further investigation revealed Garrett had been previously convicted of four felony offenses prohibited from owning or possessing firearms or ammunition.  Garrett was indicted by a federal grand jury on Dec. 2, 2020, and charged with federal firearms violations.

“This defendant did more than just illegally possess a firearm, he discharged the weapon,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Thankfully, no one was hurt, and we were able to take someone with a history of violent behavior off the streets of Beaumont.”

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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BEAUMONT, Texas – A Houston man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

Jorge Sayon, Jr., 38, pleaded guilty to conspiracy to possess 400 grams or more of fentanyl today before U.S. Magistrate Judge Zack Hawthorn. 

“Fentanyl is among the deadliest drugs that America has ever encountered.  Even a small dosage can greatly increase the user’s chance of overdose or death.  Simply put, there is no safe amount of fentanyl,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Taking these drugs off the street undoubtedly saved lives, and we are grateful to our law enforcement partners for their continued vigilance.”

According to information presented in court, since at least May 2017, Ruben Flores Pulido, Ivan Castano-Aguirre, and Javier Hernandez, supervised, managed and controlled a drug trafficking organization of more than five people that distributed cocaine and fentanyl and laundered narcotics proceeds in Houston, Texas, Southeast Texas, Atlanta, Georgia, Chicago, Illinois, and Monterrey, Mexico.

On June 26, 2018, agents intercepted a call where Flores told Castano-Aguirre that Jorge Sayon had picked up illegal narcotics and was traveling back to Houston.  Agents relayed this information to Texas DPS who were able to locate the Sayon traveling southbound on Interstate 45 through Montgomery County.  During a subsequent traffic stop of Sayon, DPS Troopers located two bags that contained approximately 2 kilograms of cocaine and 16.5 kilograms of fentanyl, 11.5 kilograms of which were in pill form.

Sayon was indicted by a federal grand jury on June 3, 2020.  He faces up to life in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.

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BEAUMONT, Texas – A Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Eulalio Torres-Cadenas, 44, pleaded guilty on April 19, 2021, to conspiring to possess with intent to distribute methamphetamine and was sentenced to 87 months in federal prison today by U.S. District Judge Thad Heartfield. 

“The sentence today reflects the Eastern District of Texas continuing effort to hold drug traffickers accountable,” said Acting U.S. Attorney Nicholas J. Ganjei.  “This is especially important when they are supplying gangs like the Aryan Circle. We will relentlessly pursue those who provide narcotics to violent gangs.”

According to information presented in court, from May 2016 through August 2016, law enforcement officers investigated methamphetamine trafficking activity of Aryan Circle (“AC”) members in the Houston, Southeast Texas, and Southwest Louisiana area.  The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri.  As part of the charged conspiracy, Torres was identified as the driver of a vehicle stopped by law enforcement on Aug. 22, 2016, following the delivery of 290 grams of methamphetamine.  Further investigation revealed that Torres was part of a conspiracy to deliver between 1.5 kilograms and 5 kilograms of methamphetamine.  Torres was indicted by a federal grand jury on Oct. 10, 2020.

This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Houston Police Department, the and the Texas Department of Public Safety.  The case was prosecuted by Assistant U.S. Attorney Christopher Rapp.

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BEAUMONT, Texas – A Houston businessman has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Robert Lance Kuperman, 74, pleaded guilty on March 22, 2021, to interstate transportation of money by fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.  Kuperman was also ordered to pay over $1.8 million in restitution.

“Fraud victimizes not only the insurance companies, but costs Americans billions of dollars every year in increased premiums,” said Acting U.S. Attorney Nicholas Ganjei.  “I thank our federal, state, and local partners—law enforcement and non-enforcement alike—for the excellent work they provided in this case.”

According to information presented in court, Kuperman purchased a home on Lake Livingston in Polk County in 2013.  In July 2015, he submitted an insurance claim related to water damage to the house that he said was caused by a defective water heater. As part of the claim, Kuperman submitted fraudulent documentation supporting his claim for out-of-pocket costs associated with what he represented was his replacement of personal property destroyed by the water leak.

Based on Kuperman’s fraudulent claims, American Strategic Insurance Company issued a series of checks, made payable to Kuperman totaling $412,836.12. As part of the sentence, Kuperman was ordered to repay not only the $412,836.12 to American Strategic Insurance Company, but an additional $1,445,000.00 in restitution to RSUI Indemnity Group for conduct deemed relevant to the offense, for a total of $1,857,836.24 in restitution and an additional fine of $80,000.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Polk County Sheriff’s Office and the Texas State Fire Marshal’s Office. The case was prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman and Assistant U.S. Attorney Donald S. Carter.

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SHERMAN, Texas – A federal grand jury in Sherman has returned a two-count indictment charging 23 individuals in a fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

The indictment, returned on Sep. 8, 2021, charges multiple individuals with conspiracy to commit wire fraud and conspiracy to commit money laundering.  The indictment remained sealed until this week, when the defendants were arrested and arraigned.

“The criminal conduct alleged in this case is sophisticated in its means, expansive in its scope, and callous in its aims,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The indictment alleges a scheme where all manner of fraud—including romance and investment scams—was unleashed on an unsuspecting American public, including the elderly and most vulnerable, with the ill-gotten gains syphoned off and funneled overseas.  The amount of loss, both financial and emotional, alleged in this case is nothing short of staggering.”

According to the indictment, beginning around January 2017, the defendants used a multitude of fraudulent schemes to obtain money from their victims, including online romance scams, business email compromise and investor fraud, and unemployment insurance fraud.  The indictment further alleges that the defendants not only coordinated how to extract money from their victims, but how to disguise, disburse, and launder that money once they successfully defrauded their victims.  Allegedly, the defendants obtained at least $17 million from at least 100 individual victims, companies, and government entities from across the world.  The defendants are alleged to have specifically targeted elderly persons and used various schemes such as online dating sites to lure their victims.  The indictment charges that once they fraudulently obtained funds from their victims, the defendants laundered the money through a network of various bank accounts and sent money to bank accounts, co-conspirators and businesses located in Africa and Asia.

Indicted individuals that have been arrested include:

• Kingsley Ita, aka “Baron” “Sifk,” 42, of Dallas;
• Irabor Fatarr Musa, aka “Fatai” “Head JJ,” 51, of Richardson;
• Solomon Esekheigbe, 48, of Katy;
• Sandra Iribhogbe Popnen, aka “General,” 46, of Allen;
• Edgal Iribhogbe, aka “Oseme,” 50, of Allen;
• Damilola Kumapayi, aka “Luke Morris,” 33, of Dallas;
• Ehiedu Onyeagwu, aka “Young,” 58, of Rosedale, Maryland;
• Mathew Okpu, 57, of Temple Hille, Maryland;
• Benedicta Atakare, 46, of Temple Hills, Maryland;
• Segun Adeoye, 47, of Pearland;
• Chidindu Okeke, aka “Steve,” 28, of Richmond;
• Ngozi Okeke, 47, of Katy;
• Nosoregbe Asemota, aka “Patrick Asemota,” 46, of Melissa;
• Chigozi Ekwenugo, 53, of Grand Prairie;
• Bukola Obaseki, 48, of Allen;
• Stella Hadome, 43, of Allen;
• Jequita Batchelor, 37, of Farmers Branch;
• Osaretin Eghaghe, aka “Biggie,” 37, of Plano;
• Ejiro Ohwovoriole, 29, of McKinney;
• Isaac Asare, aka “Asarko,” 48, of Houston;
• Gold Ude, 44, of Wylie;
• Henrietha Oziegbe, 23, of Lexington, Kentucky; and
• Kingsly Oziegbe, 25, of Edinburg.

The indictment unsealed today in the Eastern District of Texas complements indictments unsealed in the Northern District of Texas, which charged 11 defendants (including one also charged in the Eastern District of Texas) with a variety of financial crimes.

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

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office; Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; Department of Labor-Office of Inspector General; the U.S. Department of State’s Diplomatic Security Service (DSS); U.S. Postal Inspection Service; U.S. Citizenship and Immigration Service; Allen Police Department; Denton Police Department; Dallas County Sheriff’s Office; and Texas Department of Public Safety.  This case is being prosecuted by the Plano Office of the U.S. Attorney’s Office for the Eastern District of Texas with assistance from Northern District of Texas Assistant U.S. Attorneys.

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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A federal grand jury has indicted 11 defendants in the Northern District of Texas for defrauding elderly victims in romance schemes, announced Acting U.S. Attorney Prerak Shah.

The 11 defendants, all arrested during a large-scale operation Wednesday morning, are charged with a variety of financial crimes, including conspiracy to commit wire fraud and conspiracy to launder monetary instruments.  The majority of the defendants charged in this investigation have ties to a transnational organized crime syndicate originating in Nigeria, law enforcement revealed Friday.

According to court documents, these defendants allegedly preyed on elderly victims, many of whom were widowed or divorced. They assumed fake names and trolled dating sites like Match.com, ChistianMingle, JSwipe, and PlentyofFish, searching for targets.

Once they had ingratiated themselves with their victims, they allegedly concocted sob-stories about why they needed money – i.e., taxes to release an inheritance, essential overseas travel, crippling debt, etc. – and then siphoned money from victim’s accounts, tens of thousands of dollars at a time.

“Crimes like these are especially despicable because they rely not only on victims’ lack of internet savvy, but also, their isolation, their loneliness, and sometimes their grief. As the victims open their hearts, the perpetrators open their wallets,” Acting U.S. Attorney Prerak Shah said at a press conference announcing the charges. “The only mistake these victims make is being generous to the wrong people.”

“The crimes allegedly committed by these defendants hit close to home. Your neighbors, parents, friends and family would be targets of this organization. The fraudsters intimidated and berated their victims, ruined their lives, really, and then disappeared,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “We’re confident this investigation will have a significant impact on this region and beyond.”

The indictments unsealed today in the Northern District of Texas complement a related indictment unsealed in the Eastern District of Texas, which charges 23 defendants (including one also charged in the Northern District of Texas) with a variety of financial crimes.

Those charged in the Northern District of Texas include:

• David Animashaun, 38 – arrested in DFW, charged with wire fraud conspiracy
• Oluwalobamise Michael Moses, 40 – arrested in DFW, charged with wire fraud conspiracy
• Irabor Fatarr Musa, 51 – arrested in the Eastern District of Texas, charged by the Northern District of Texas wire fraud conspiracy, money laundering conspiracy
• Ijeoma Okoro, 31 – arrested in DFW, wire fraud conspiracy fraud, money laundering conspiracy
• Chukwemeka Orji, 36 – arrested in DFW, charged with wire fraud conspiracy, money laundering conspiracy
• Emanuel Stanley Orji, 35 – arrested in DFW, charged with wire fraud conspiracy
• Frederick Orji, 37 – arrested in Dallas, charged with wire fraud conspiracy, money laundering conspiracy
• Uwadiale Esezobor, 36 – arrested in Lubbock, charged with mail & wire fraud conspiracy
• Victor Idowu, 36 – arrested in Los Angeles, charged with mail & wire fraud conspiracy
• Afeez Abiola Alao, 37 – wire fraud conspiracy, money laundering conspiracy
• Ambrose Sunday Ohide, 47 – wire fraud conspiracy
   

Indictments are merely allegations of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.

If convicted, the defendants face up 20 years in federal prison on the wire fraud conspiracy counts and up to 10 years in federal prison on the money laundering conspiracy counts.

The Federal Bureau of Investigation’s Dallas Field Office, Homeland Security Investigations, and IRS – Criminal Investigation led the investigation with assistance from the Department of Labor Office of Inspector General, the U.S. Postal Inspection Service, the Texas Department of Public Safety, the Texas Rangers,  the U.S. Marshals, U.S. Citizenship & Immigration Services, and the U.S. Department of State’s Diplomatic Security Service (DSS). Assistant U.S. Attorneys Mary Walters, George Leal, and Erica Hilliard are prosecuting the cases for the Northern District of Texas, with assistance from Assistant U.S. Attorneys in the Eastern District of Texas.

The FBI estimates that more than 20,000 people lost more than $600 million in romance scams in 2020 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.

 

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

Derrick Rashard Gloude, 24, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. District Judge Marcia A. Crone.

According to court documents, from November 9, 2020 through November 16, 2020, Gloude robbed six businesses and attempted to rob another in Beaumont.  The stores were all engaged in interstate commerce and employed clerks who were engaged in the commercial activities of the stores at the time of the robberies.  The Hobbs Act prohibits actual or attempted robbery affecting interstate commerce.  In each of the robberies, Gloude brandished a purple pistol and pointed it at the clerks when demanding money.

After receiving a CrimeStoppers tip, investigators were able to develop Gloude as a suspect. A review of Gloude’s public Facebook page showed photos of Gloude wearing clothes matching the clothing reported by the clerks in each store.  Additionally, Gloude’s Facebook showed pictures of him brandishing a purple handgun and flashing fans of cash.  The pistol was recovered after Gloude’s arrest and determined to have been reported stolen in Beaumont.

“Gloude did more than use violence to steal money from local businesses, he terrorized the clerks by pointing guns in their faces,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Now, these victims can rest assured that they are safe from Gloude as a result of outstanding investigative work by our law enforcement partners.”

Gloude was indicted by a federal grand jury on Jan. 13, 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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.

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PLANO, Texas – A Dallas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Gary Collin Bussell, 52, pleaded guilty on Jan. 26, 2021, to possession with intent to distribute and distribution of controlled substances and was sentenced to 360 months in federal prison today by U.S. District Judge Sean D. Jordan.

“The Eastern District of Texas remains committed to pursuing the fight against illegal narcotics on all fronts,” said Acting U.S. Attorney Nicholas J. Ganjei.  “This case is a sad reminder that recreational use of prescription drugs—counterfeit or not—can present tremendous risks to the user, including overdose and death.  EDTX continues to partner with the DEA in the battle against the trafficking of counterfeit and illegally-obtained pharmaceuticals.”

According to information presented in court, on Dec. 28, 2018, a 29-year-old Fairview resident died as the result of a fentanyl and alprazolam drug overdose.  During the investigation of the death, federal drug enforcement agents learned Bussell was involved in the large-scale purchase and distribution of various pharmaceutical medications.  Bussell personally distributed drugs, and had others distribute drugs on his behalf.  Among his transactions, Bussell distributed the fentanyl and alprazolam that caused the victim’s overdose death. 

Another defendant, William Grant Allbrook, 34, of the Colony, was a counterfeit pharmaceutical drug distributor in the Dallas area.  Allbrook acquired counterfeit pharmaceutical drugs from another defendant, Peter Yin, 38, of Garland, and distributed those drugs to Bussell and others on behalf of Bussell’s organization.

Earlier this week, Allbrook and Yin were each sentenced to 240 months in federal prison for their roles in the drug trafficking conspiracy. 

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

This case was investigated by the U.S. Drug Enforcement Administration, the Dallas Police Department, the Fairview Police Department, and the Internal Revenue Service-CI.  This case was prosecuted by Assistant U.S. Attorney Jay Combs.

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PLANO, Texas – A Boston, Massachusetts man has been sentenced to federal prison for human trafficking related violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Daniel Bennett, 38, pleaded guilty on January 28, 2021 to the transportation of an individual in interstate commerce, knowing they would engage in illegal sex.  Bennett was sentenced to 70 months in federal prison today by U.S. District Judge Sean D. Jordan.   

“We know human trafficking is basically modern-day slavery and the victims often feel they have no way out,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Thanks to the great work of law enforcement, Bennett’s victims can now hopefully build a better, safer life.  As we have stated before, there is no safe harbor in the Eastern District for human traffickers.”

According to information presented in court, on October 27, 2019, Bennett drove two women from Boston, Massachusetts to Texas for the purpose of having the women engage in commercial sex.  The three stayed at hotels in the Eastern District of Texas and the women engaged in illegal sex work around the north Texas metroplex area.  Bennett came to the attention of law enforcement on November 2, 2019, when one of the women approached an officer with the Dallas Police Department seeking assistance.  Bennett admitted to knowing prostitution and commercial sex are illegal in the State of Texas. A federal grand jury returned an indictment charging Bennett with federal violations on November 13, 2019. 

This case was investigated by Homeland Security Investigations and the Dallas Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.

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PLANO, Texas – A Denton man has been sentenced to prison for threatening a federal official, announced Acting U.S. Attorney Nicholas Ganjei today.

Guy Zachary Klossner, 33, pleaded guilty on April 29, 2021, to threatening a federal official and was sentenced to 30 months in federal prison today by U.S. District Judge Sean Jordan.

“Today’s sentence sends a strong message that EDTX takes seriously any death threats to public officials,” said Acting U.S. Attorney Nicholas J. Ganjei.  “In our democracy, there is room for disagreement and even dissent.  However, we will not tolerate threats of violence, particularly those made against our elected representatives.” 

According to information presented in court, on July 24, 2020, an individual using the name “You’re F. Dead” sent a threatening email message to U.S. Congressman Theodore Yoho of Florida’s 3rd Congressional District.  The message contained a threat to kill Congressman Yoho and his family.  An investigation determined that the message originated from a computer at a location in Denton, Texas.  Klossner was identified as the user of the computer.  Further investigation revealed that Klossner also made threats against U.S. Congressman Clay Higgins of Louisiana’s 3rd Congressional District through his Facebook account and in a voice-mail message.  Klossner, who admitted to law enforcement officials that he made the threats, was indicted by a federal grand jury on Oct. 15, 2020.

This case was investigated by the U.S. Capitol Police in Washington, D.C. and the Denton Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.

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

Moses Ray Rhine, Jr., 21, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. Magistrate Judge Zack Hawthorn.

According to court documents, from January 11, 2021 through January 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.

“Mr. Rhine’s operation was to plunder,” said Acting U.S. Attorney Nicholas J. Ganjei.  “This case was more than just a garden-variety market robbery by a junior varsity robber.  Rhine and his crew robbed convenience stores across the Beaumont community.  Thanks to the excellent work of ATF and Beaumont Police, this robbery crew has been neutralized and their robbery spree has been brought to an end.”

Rhine was indicted by a federal grand jury on June 2, 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 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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WASHINGTON – The Department of Justice announced today criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various healthcare fraud schemes that resulted in approximately $1.4 billion in alleged losses.

The enforcement action includes criminal charges against four defendants in the Eastern District of Texas involving telemedicine, alleging over $2.9 million in losses.

Nationwide, the charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.

“While the United States government works to ensure the physical health of the American people through numerous federal programs, the Department of Justice and the Eastern District of Texas work tirelessly to safeguard the financial health of these programs against theft and fraud,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The present enforcement action is not only a decisive blow against fraud and malfeasance in these specific cases, but also serves as a reminder to would-be fraudsters that the federal government is keeping a watchful eye on the use and abuse of taxpayer-funded health care dollars.”

“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The Eastern District of Texas worked with the Justice Department’s Criminal Division and agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies in the investigation and prosecution of these cases.

“Health care fraud targets the vulnerable in our communities, our health care system, and our basic expectation of competent, available care,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Despite a continued pandemic, the FBI and our law enforcement partners remain dedicated to safeguarding American taxpayers and businesses from the steep cost of health care fraud.”

“We have seen all too often criminals who engage in health care fraud — stealing from taxpayers while jeopardizing the health of Medicare and Medicaid beneficiaries,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Today’s announcement should serve as another warning to individuals who may be considering engaging in such illicit activity: our agency and its law enforcement partners remain unrelenting in our commitment to rooting out fraud, holding bad actors accountable, and protecting the millions of beneficiaries who rely on federal health care programs.”

“Holding to account those responsible for health care fraud and diversion of prescription drugs is a priority for DEA,” said DEA Administrator Anne Milgram. “These fraudulent activities prey on our most vulnerable – those in pain, the substance-addicted, and even the homeless – those who are most susceptible to promises of relief, recovery, or a new start. Not only do these schemes profit from desperation, but they often leave their victims even deeper in addiction. We are grateful to our partners who stand with us to keep our communities safer and healthier through our collective efforts to prevent the misuse and over-prescribing of controlled medications.”

“Every dollar saved is critical to the sustainability of our Medicare programs and meeting the needs of seniors and people with disabilities,” said Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure. “CMS has taken actions against 28 providers on behalf of people with Medicare coverage and to protect the Medicare Trust Fund.  Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of Centers for Medicare & Medicaid Services, the Department of Justice and the U.S. Department of Health and Human Services, Office of Inspector General.” 

Telemedicine Fraud Cases

The largest amount of alleged fraud loss charged in connection with the cases announced today – over $1.1 billion in allegedly false and fraudulent claims submitted by more than 43 criminal defendants in 11 judicial districts nationwide – relates to schemes involving telemedicine. In the Eastern District of Texas, four defendants were charged with conspiracy to commit illegal remunerations and with substantive counts of illegal remunerations. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physicians’ orders.  The conspirators then sold the physicians’ orders to each other and to other durable medical equipment providers.  Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.

The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown.

COVID-19 Fraud Cases

Nine defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings.

The law enforcement action today also includes criminal charges against five defendants across the country who allegedly engaged in the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.

The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.

Sober Homes Cases

The sober homes cases are announced on the one-year anniversary of the first ever national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorney’s Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.

Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes

]The cases announced today involving the illegal prescription and/or distribution of opioids involve 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings. The cases that fall into more traditional categories of health care fraud include charges against over 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.

Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.

A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

To view Assistant Attorney General Polite’s remarks, see

https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.

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A Texas man was sentenced today in the Eastern District of Texas to 31 months in prison and three years of supervised release for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Fahad Shah, 45, of Murphy, who pleaded guilty to wire fraud, sought approximately $3.3 million in PPP funds by claiming that his family’s business, WBF Weddings by Farah Inc. (WBF), employed more than 100 individuals and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees aside from Shah and his wife. Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah. Shah then used the funds for personal gain contrary to program’s terms, paying off his home mortgage and purchasing two Teslas and a Mercedes, among other items.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Nicholas Ganjei for the Eastern District of Texas; Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Special Agent in Charge Christopher J. Altemus Jr. of the IRS-Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA investigated the case.

Trial Attorney Della Sentilles and Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Bob Wells of the Eastern District of Texas prosecuted the case.

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.

SHERMAN, Texas – A Sherman man has been indicted on federal child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Jeffrey L. Walters, 52, was named in an indictment returned by a federal grand jury in Sherman charging him with receipt of child pornography.  Walters pleaded not guilty to the charges at an initial appearance in federal court on Sep. 15, 2021, before U.S. Magistrate Judge Christine A. Nowak.

According to court documents, Walters came to the attention of law enforcement as someone who communicated with others about his interest in child pornography.  Through a joint investigation by Homeland Security Investigations-Dallas and the Grayson County Sheriff’s Office, law enforcement obtained a laptop and cellular phone owned and used by Walters.  Forensic analysis of the laptop revealed that Walters had received child pornography, using the Internet, on multiple dates.  The child pornography depicted prepubescent children engaged in sexually explicit conduct, including depictions of sadistic and masochistic abuse.

This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

If convicted, Walters faces up to 20 years in federal prison.

This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.

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 – A Murphy man has been sentenced to federal prison for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the Eastern District of Texas, announced Nicholas Ganjei, Acting U.S. Attorney of the Eastern District of Texas and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division today.

Fahad Shah, 45, pleaded guilty on May 19, 2021, to wire fraud and was sentenced to 31 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.

“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Every dollar that was stolen and extravagantly spent in this case was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees.  The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts.”

According to court documents, Shah sought approximately $3.3 million in PPP funds by claiming that his family’s business, WBF Weddings by Farah Inc. (WBF), employed more than 100 individuals and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees aside from Shah and his wife.  Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah. Shah used the funds for personal gain contrary to program’s terms. He paid off his home mortgage and purchased two Teslas and a Mercedes, among other items.

Acting U.S. Attorney Nicholas Ganjei for the Eastern District of Texas; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Special Agent in Charge Christopher J. Altemus, Jr., of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA investigated the case.

This case was prosecuted by Assistant U.S. Attorneys Frank Coan and Bob Wells of the Eastern District of Texas and Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.

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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 Acting U.S. Attorney Nicholas Ganjei today.

Jason Bernard Sibley, 21, pleaded guilty on May 28, 2021, to being a prohibited person in possession of a firearm and was sentenced to 33 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to court documents, on Feb. 3, 2021, Sibley began a video live-stream on a social media platform in which he recorded himself in an ice cream truck in a local Beaumont neighborhood serving ice cream to children.  He was also observed possessing a firearm in that video.  Officers with the Beaumont Police Department who had previous contact with Sibley saw the video and knew Sibley to be a convicted felon and prohibited from owning or possessing firearms or ammunition.  Officers eventually arrested Sibley in the ice cream truck and recovered the firearm.  Sibley was indicted by a federal grand jury on April 7, 2021 and charged with federal firearms violations.

“The conduct in this case is especially egregious because the firearm was possessed in the presence of children,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The United States Attorney’s Office commends the ATF and Beaumont Police Department for their diligent investigation, which removed an appreciable danger to the Beaumont community.” 

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

This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.

 

TYLER, Texas – A Tyler attorney has been sentenced to prison for federal employment tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

John Bennett White IV, 61, pleaded guilty on Feb. 1, 2021, to failure to pay employment taxes and was sentenced to 18 months in federal prison today by U.S. District Judge J. Campbell Barker.

“Although Mr. White withheld payroll taxes from his employees’ paychecks, he spent the money on himself rather than pay it forward to the government,” said Acting U.S. Attorney Nicholas J.  Ganjei.  “Mr. White also concealed assets in the names of other people and altered the law firm’s books to hide his fraud, all to the detriment of his honest, tax-paying, fellow Americans.”

According to court documents and statements made in court, White was an attorney and firm manager for a Tyler law firm, J. Bennett White, P.C., where White had significant control over the finances of the firm and had a duty to account for and pay over the employment taxes on behalf of the firm’s employees to the IRS.

Between the second quarter of 2007 and the fourth quarter of 2015, White made sporadic and partial efforts to pay his firm’s employment tax liabilities.  For multiple quarters during the same period White caused employment taxes to be withheld from the law firm’s employees’ wages, but willfully failed to fully pay those trust fund taxes of to the IRS.  White filed Forms 941 reporting the law firm’s employment taxes for each of these quarters.  White paid the full amount owed the IRS for 24 of those 38 quarters.  White made partial payments on 10 occasions and no payment for seven quarters.  In total, White caused a tax loss of over $300,000. Instead of paying employment taxes, White paid other creditors and his own personal expenses.

This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ryan Locker.

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PLANO, Texas – A Denison woman has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Lydia Henslee, 29, pleaded guilty on March 25, 2021, to conspiring to possess and use means of identification in connection with various offenses and was sentenced to 24 months in federal prison today by U.S. District Judge Sean D. Jordan.

“Not only did the defendants’ actions in this scheme compromise sensitive information, but they also stole the peace of mind of their victims,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Today’s sentence represents the serious consequences of identity theft and should serve as a warning to others who seek to profit from it.”

According to information presented in court, Henslee, Amanda Lowry, and Demetrius Cervantes, were named in a federal indictment on Sept. 11, 2019 charging them with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification.  They are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients.  This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors.  The defendants obtained more than $1.4 million in proceeds from the sale of the stolen information.  The defendants then used those proceeds to purchase items such as sport utility vehicles, off-road vehicles, and jet skis.   

Cervantes was sentenced to 48 months in federal prison on July 8, 2021.  Lowry was sentenced to 30 months in federal prison on July 22, 2021. 

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.  The matter was prosecuted by Assistant U.S. Attorneys Nathaniel Kummerfeld and Adrian Garcia.           

COPPELL, Texas – Attorney General Javier Caraballo, of the Republic of Panama, joined Acting U.S. Attorney Nicholas J. Ganjei; Drug Enforcement Administration Special Agent in Charge of the Dallas Field Division Eduardo Chavez; Special Agent in Charge Ryan L. Spradlin of Homeland Security Investigations, Dallas Field Office; Federal Bureau of Investigation Special Agent in Charge Matthew J. DeSarno; Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge Jamey Van Vliet; U.S. Postal Inspection Service Inspector in Charge Tom Noyes and Coppell Police Chief Danny Barton in the Eastern District of Texas to discuss investigations and advancements in joint efforts to curtail transnational criminal organizations operating between  the United States and Panama.

During the meeting, officials discussed significant cases involving the encroachment of the Colombian Cartel, “Clan del Golfo,” into Panama.  The Clan del Golfo is a drug trafficking organization responsible for multi-ton cocaine shipments originating from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States.  The organization airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles to transport the majority of its cocaine shipments. 

Federal prosecutors and law enforcement agencies in the Eastern District of Texas have worked tirelessly with Latin American countries, including Panama, to extradite and prosecute drug traffickers who continue to target the United States as a final destination for their drug trafficking enterprises.  The partnership between EDTX and Panama in particular has generated tremendous results, with anti-narcotics operations resulting in the seizure of over 145 tons of cocaine and 75 defendants extradited to the Eastern District. 

“Protecting our communities, fighting the scourge of drug and human trafficking, and combating money laundering and fraud requires a strong relationship and effective communication between national partners with shared values including a commitment to the rule of law,” said Acting U.S. Attorney Nicholas J. Ganjei.  “That is why the United States is grateful for the cooperation of the Republic of Panama, and in particular the support of today’s guest, Attorney General for the Republic of Panama, Javier Caraballo Salazar.  Panama is a vital partner to the United States in fighting transnational organized crime, counter-narcotics, and border security.  And since taking office earlier this year, Attorney General Caraballo has continued and strengthened that partnership.”

“We appreciate the participation and support of the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar in sending a unified message to those, who without remorse, intend to gain profits by peddling their poisons into our communities, that they will be found and held accountable no matter where they attempt to hide”, said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division.  “Recent successes were possible because of the cooperation of national and international partners like the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar.  DEA Dallas remains resolute on dismantling local and transnational criminal organizations who are trafficking drugs, creating drug violence, and causing drug related deaths within our communities.  Together, we will make safe neighborhoods.”

“HSI’s long standing relationship with Panama has led to the arrests of dozens of transnational criminal organization members, the seizure of thousands of pounds of narcotics and millions of dollars in illicit proceeds,” said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations Dallas. “Our law enforcement partnership with Panama is even more critical now as we work together to ensure that our transnational public safety threats are eliminated and the vulnerable protected in our communities.”

These cases are the result of extensive joint investigations by the Organized Crime Drug Enforcement Task Forces (OCDETF).  OCDETF agents and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States.

 

TYLER, Texas – A Shreveport, Louisiana woman has been sentenced to federal prison for her role in an elder fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.

Monica Ruiz, 45, pleaded guilty on March 24, 2021, to wire fraud and was sentenced to 97 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

“Fraud against the elderly is particularly devastating given that the victim will typically not have the ability to work their way towards financial recovery,” said Acting U.S. Attorney Nicholas J. Ganjei.  “While the Department of Justice will work tirelessly to ferret out elder fraud and punish the perpetrator, our seniors’ best defense against such fraud is, and remains, education, vigilance, and a healthy dose of skepticism.”

“The Secret Service remains committed to bringing to justice those criminals who seek to exploit our most vulnerable citizens,” said William Mack, U.S. Secret Service Resident Agent in Charge of the Tyler Resident Office. “In conjunction with the Department of Justice, as well as our state and local partners, the Secret Service will identify, pursue and seek prosecution of those that prey upon the elderly.”

According to information presented in court, Ruiz enlisted a variety of false and fraudulent pretenses, representations, and promises in a scheme to defraud an elderly victim from Bullard, Texas.  Among the various misrepresentations Ruiz made in order to obtain money from the victim were the following:

- That Ruiz had been in a coma;

- That Ruiz had brain surgery;

- That Ruiz was falsely arrested and imprisoned;

- That Ruiz had bribed a judge and prosecutor;

- That Ruiz’s son died in a car accident in Pennsylvania;

- That Ruiz was in a car accident;

- That Ruiz had a kidney transplant;

- That Ruiz’s daughter was committed to a mental institution;

- That Ruiz was incarcerated; and

- That Ruiz’s grandmother died.

At times, Ruiz impersonated other people in communications with the victim.  At other times, she created and used false personas in communications with the victim.  Over the course of her scheme, Ruiz obtained more than $4.85 million from the victim.

Ruiz was indicted by a federal grand jury on Nov. 19, 2020. 

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. Secret Service with the assistance of the Tyler Police Department and the Louisiana State Police – Gaming Enforcement Division and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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PLANO, Texas – A Mexican national and high-ranking member of the Los Zetas cartel received a life sentence for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Hugo Cesar Roman-Chavarria, also known as “El Vecino,” pleaded guilty on August 23, 2019, to conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and was sentenced to a term of life imprisonment by U.S. District Judge Sean Jordan today.

“The mill of justice grinds slowly, but it grinds finely,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Since the time of Mr. Chavarria’s criminal indictment nearly a decade ago, we and our dedicated law enforcement partners have never stopped trying to bring him into the United States, and, more particularly, our courts, to answer for his crimes.  That day has finally arrived.  Mr. Chavarria believed he was operating beyond the reach of the American justice system, but his lengthy sentence shows how mistaken he was.  His criminal career now at a close, Mr. Chavarria will no longer be able to import poison into the United States or fuel violence back in Mexico.”

“This lengthy sentence is the culmination of years of collaborative investigations with our trusted law enforcement partners, sending a resounding message that HSI will be relentless in its pursuit of criminals who bring illegal drugs in our communities and they will be brought to justice,” said Ryan S. Spradlin, Special Agent in Charge, HSI Dallas. “The conclusion of this significant operation with this criminal behind bars is a victory against organizations moving dangerous drugs in and across our borders.”

“Transnational Criminal Organizations like Los Zetas are fueled by greed, intimidation, and violence,” said DEA Dallas Special Agent in Charge Eduardo A. Chavez.  “Mr. Chavarria’s sentence today reflects that justice wins in the end and the positive impact DEA’s efforts can make on communities not just here in North Texas, but across the country.  A kilogram of cocaine seized in Dallas is one less kilogram available for a gang to fight over in Chicago or to be offered to one of our youth in Philadelphia.  It matters and DEA Dallas will remain steadfast in destroying command elements of these criminal organizations across the globe.”

Over the course of a three-day sentencing hearing in August and September 2021, the district court heard from 13 witnesses for the government, including other high-ranking Zeta members, who, like Chavarria, had been extradited to the United States to face charges.  According to court testimony, from 2007 through 2011, Chavarria oversaw the shipment of enormous quantities of cocaine between Piedras Negras, Coahuila, Mexico, and Eagle Pass, Texas on behalf of the Los Zetas Cartel, in which he was a high-ranking member.  The Zetas were notorious for their brutality, even by cartel standards.  The Zetas ruthlessly carried out beheadings, hangings, torture, kidnappings, and even boiling or burning people alive, in order to intimidate and demoralize enemies and innocent civilians.

A particularly shocking act of brutality was the 2011 massacre of men, women, and children in the Mexican town of Allende, just 40 minutes from Eagle Pass.  The Zetas’ mass killing of town residents was in retaliation for the suspected leaking of information to law enforcement by an individual whose relatives lived in Allende. Numerous witnesses described how Chavarria participated in the massacre by traveling around Allende with Zetas gunmen, pointing out the homes of relatives and associates of the suspected leaker, effectively marking these people and their families for death.  After the Zetas finished their mass killing, they loaded the bodies into a barn and incinerated the building.  A definitive conclusion has never been reached as to the number of men, women, and children who lost their lives, but the total is believed to be at least 100, and possibly up to 300.

Chavarria also led a separate drug trafficking and money laundering operation, which operated with the permission and protection of the Zetas Cartel.  Along with a partner, Chavarria imported 500 kilograms of cocaine into the United States every month.  This cocaine was primarily destined for distribution in Texas cities and towns.  Bulk currency, in turn, was smuggled from the United States back to Chavarria in Mexico by secreting the cash in washers, dryers, refrigerators, and automobile gas tanks.  Chavarria also acquired bulk firearms and military equipment from the United States on behalf of the Zetas, for use in the Cartel’s violent struggles against other drug trafficking organizations.

Chavarria and 17 other individuals were indicted by a federal grand jury on Sep. 15, 2011.  They were charged with drug trafficking and money laundering violations.  Chavarria was extradited from Mexico to the United States on Nov. 30, 2018 and has been detained since that time.

The investigation and prosecution of Chavarria and his organization comes as part of “Operation Too Legit to Quit,” 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.  To date, the overall operation has resulted in charges against approximately 160 defendants in 28 indictments and the seizure of close to 700 kilograms of cocaine as well as more than $9 million in cash and other assets.

This case was investigated by Homeland Security Investigations and the U.S. Drug Enforcement Administration-Dallas with assistance from DEA-Bogota, DEA-Cartagena, FBI, ATF, Texas Department of Public Safety, Dallas County Sheriff’s Office, Ellis County Sheriff’s Office, Tarrant County Sheriff’s Office, Mesquite Police Department, Fort Worth Police Department, Rowlett Police Department, and Lewisville Police Department.  The Justice Department’s Office of International Affairs provided significant assistance in securing extradition from Mexico. This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez and Colleen Bloss.

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BEAUMONT, Texas – A Port Arthur man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.

Jarrel Jakeem Joseph, 25, pleaded guilty on June 28, 2021, to receipt of a firearm while under indictment and was sentenced to 36 months in federal prison today by U.S. District Judge Michael J. Truncale.

“Criminal offenders living in our communities have no business possessing firearms,” said Acting U.S. Attorney Nicholas Ganjei.  “Mr. Joseph’s disregard for the law—and for the safety of his fellow Port Arthur residents—is vividly illustrated by his brazen carrying of a stolen handgun, despite his criminal status.”

According to court documents, on March 31, 2021, law enforcement observed Joseph and several other individuals fighting along the 1600 block of Vicksburg Avenue in Port Arthur.  Joseph left the fight on foot and was observed discarding an object, which was found by law enforcement and determined to be a stolen semiautomatic pistol.  Further investigation revealed that Joseph possessed a criminal history that prohibited him from possessing or receiving a firearm.

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 Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.

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TYLER, Texas – A Pensacola, Florida man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Perry Lewis Crenshaw, Jr., 27, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.  Crenshaw is the fifth indicted defendant to plead guilty in this case.

“Moving money on behalf of scammers helps facilitate the underlying criminal fraud, and ultimately contributes to the victimization of the public.  Those that help launder the ill-gotten gains of these fraud schemes are subject to significant criminal penalties,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The public needs to know that we will pursue not only the thief directly responsible for the fraud, but also the enablers who help these scammers profit from their predatory behavior.”

“Investigating scammers is a top priority for IRS Criminal Investigation,” said Special Agent in Charge Brian Payne. “Mr. Crenshaw preyed on vulnerable elderly Americans by impersonating the IRS. We found him, and now he and his co-conspirators will be held accountable for their heinous crimes.”

“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates allegations of individuals who misrepresent themselves as Internal Revenue Service employees to cheat taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in this effort.”  

“This investigation represents our continuing resolve to address instances of fraud involving HUD programs,” said Special Agent in Charge Michael V. Powell, U.S. Department of Housing and Urban Development, Region V.  “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our programs and take strong action against those who seek to circumvent the laws meant to protect the most vulnerable in our communities.”

According to information presented in court, in 2015, Crenshaw was contacted by a co-conspirator about partnering in a business venture.  As part of the venture, Crenshaw was asked to pick up money from call center sales at money services businesses in the Pensacola area.  Crenshaw picked up approximately $40,000 from money services businesses and deposited the funds into a designated bank account.  Crenshaw was also directed to create a business called “Network Florida LLC” in June 2015.  Crenshaw opened bank accounts in the name of the business and recruited approximately 20-25 individuals as employees of the business.  The job responsibilities for these individuals consisted of merely picking up cash or money orders at money services businesses and depositing the funds into the Network Florida bank accounts.  Crenshaw was paid 10 percent of the funds collected in this manner.  From June 2015 to October 2016, approximately $1,284,649 in fraudulent proceeds was deposited into the Network Florida bank accounts.  From February 2016 to July 2016, Crenshaw transferred approximately $266,106 in fraudulent proceeds from the Network Florida bank accounts to a foreign bank account.  Crenshaw later admitted that it became apparent the conspiracy was engaging in fraudulent activity and the purpose of the scheme was to conceal and disguise the nature of the fraudulent proceeds generated by the scheme. 

Codefendants, Jeremy Christopher Jones, pleaded guilty to conspiracy to commit money laundering in June of this year and Ronnie Duane Booth, Mary Elizabeth Beaman Booth, and Tracey Brookshier, pleaded guilty to aiding and abetting an unlicensed money transmitting business in August.     

As part of his plea agreement, Crenshaw has agreed to pay restitution in the amount of $1,284,649 and forfeiture of $32,112.50.  Crenshaw faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, and Housing and Urban Development-Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Alan Jackson.             

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TYLER, TEXAS – The Eastern District of Texas announced today that it had reached a cooperative resolution agreement under Title II of the Americans with Disabilities Act (ADA) with Smith County, Texas to ensure individuals who are deaf or hearing impaired can communicate as effectively as others. 

This matter was initiated upon receipt of a complaint filed with the Civil Rights Division of the U.S. Department of Justice, by an individual who is hearing impaired.  The complaint alleged that Smith County, which provides services, programs, and activities in its county courthouse, failed to take appropriate steps to ensure that communications with the deaf and hearing-impaired are as effective as communications between the non-hearing impaired.  

The ADA requires that public entities, like Smith County, furnish appropriate auxiliary aids and services, when necessary, to afford individuals with disabilities an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity, including those in a courthouse.

The U.S. Attorney’s Office for the Eastern District of Texas reviewed Smith County’s courthouse policies, training, and procedures relating to the provision of auxiliary aids and services to individuals who are deaf or hard of hearing and determined they did not fully comply with Title II of the ADA. The United States—along with Smith County—identified the areas of non-compliance and cooperatively implemented the resolution. 

Under the Agreement, Smith County is updating its website to ensure the site contains sufficient information to inform persons with impaired vision or hearing how and where to access auxiliary aids or services.  Smith County will provide Title II training relating to the provision of auxiliary aids or services to the courthouse staff to ensure all individuals can participate in the services, programs, and activities offered by Smith County; and Smith County will ensure sufficient auxiliary aids or services are available at the courthouse as required by the 2010 ADA Standards.  

“Deaf and hearing-impaired individuals are entitled to full and equal opportunities to effectively communicate with, and to benefit from, all services, programs and activities,” said Acting U.S.  Attorney Nicholas J. Ganjei.  “We commend Smith County for their full cooperation with this investigation, and their commitment to ensuring that deaf and hearing-impaired community members are provided effective communication and auxiliary services.”

For more information about the ADA, please visit http://www.ada.gov or call toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).  ADA complaints may be filed online at http://www.ada.gov/complaint.

This matter was investigated by the Civil Rights Enforcement Coordinator for the Eastern District of Texas Assistant U.S. Attorney Aimee M. Cooper as well as Assistant U.S. Attorney Betty Young.      

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TYLER, Texas – Three former Texans now living in Louisiana have pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Ronnie Duane Booth, 38, and Mary Elizabeth Beaman Booth, 40, both formerly of Forney, pleaded guilty on August 24, 2021 to aiding and abetting an unlicensed money transmitting business.  Tracey Brookshier, 52, formerly of Kingsville, pleaded guilty to the same charge on August 25, 2021 before U.S. Magistrate Judge John D. Love.  

“Defrauding elder persons of their life savings deprives them of a secure future and causes significant emotional distress to both the victim and their families,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX is committed to holding accountable those who unconscionably prey on our senior citizens and other vulnerable populations.”

“These developments demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “The defendants engaged in multiple scams, often targeting the most vulnerable members of society.  The success of this investigation is the result of a collaborative effort between multiple Federal law enforcement agencies and the dedicated staff at the United States Attorney’s Office.”

According to information presented in court, the three defendants were part of a scheme which involved call center fraudulent solicitations of various kinds, including home mortgage modifications, personal loans, repayment of Social Security benefits, and IRS demands for payment.  Victims were contacted by an overseas call center and instructed to make payments through various money service businesses or by mailing payments to specified addresses.  The Booths and Brookshier were recruited to pick up those payments from the money service businesses or receive them in the mail.  They would then deposit them into accounts as instructed by others involved in the scheme.  One such co-conspirator, Jeremy Christopher Jones, pleaded guilty to conspiracy to commit money laundering in June.

Brookshier admitted to being responsible for collecting and depositing approximately $126,000 in victim proceeds, Mary Booth admitted to being responsible for picking up and depositing approximately $155,000 in victim proceeds, and Ronnie Booth admitted to picking up and depositing approximately $91,000 in victim proceeds.  The overall scheme involved approximately $3.2 million in victims’ payments and almost 2000 victims, many of whom are elderly.

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

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, and Housing and Urban Development-Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Alan Jackson.             

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SHERMAN, Texas – A federal grand jury in Sherman has returned a seven-count superseding indictment charging 101 individuals in a cell phone trafficking conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

The superseding indictment was returned on August 11, 2021, and charges 101 individuals with conspiracy to interfere with interstate commerce; interference with interstate commerce; use or brandishing of a firearm during a crime of violence; conspiracy to transport stolen property in interstate commerce; mail fraud conspiracy; wire fraud conspiracy; and money laundering conspiracy.  The superseding indictment remained sealed until this week.

According to the superseding indictment, members of a multi-layered criminal organization stole personal electronics, including cell phones, tablets, laptops, and smart watches, within the North Texas area and then exported those items overseas for resale.  As detailed in the superseding indictment, the defendants’ organization included runners, suppliers, device traffickers, and exporters.  The defendants are alleged to have stolen electronics by armed robberies as well as through various fraud schemes. 

The superseding indictment alleges that in late October 2020, a series of armed takeover-style robberies began to take place at AT&T, T-Mobile, and Verizon retail cell phone stores in the Dallas area. According to the superseding indictment, a total of 23 armed takeover robberies were committed or attempted at various retail cellular phone stores located in Dallas, Corinth, Balch Springs, Seagoville, Greenville, Colleyville, Flower Mound, Grand Prairie, Arlington, Houston, Fort Worth, and Garland.  The estimated loss associated with those robberies exceeds $500,000.

In December 2020, four members of the robbery crew were arrested following the armed robbery of an AT&T cell phone store in Fort Worth.  Investigation revealed that these individuals were connected to a cell phone business in Dallas known as Global One Wireless.  The owners of Global One Wireless – Plano brothers Abdul Basit Bhangda, 30, and Arsalan Bhangda, a/k/a Adam, 36 – allegedly acted through a parent corporation, RJ Telecom, to sell stolen products abroad by shipping the merchandise to foreign import companies located in the United Arab Emirates and Hong Kong.

According to the superseding indictment, the conspirators also utilized compromised store employees to activate phones using fake identities or fraudulently adding lines to legitimate customer accounts.  Other schemes allegedly involved the use of fake identity information as well as legitimate customer information to swap SIM cards, enabling the defendants to verify banking information through text messages and withdraw funds from customer accounts.

The superseding indictment alleges that nearly $100 million of products were sold to foreign importers.  The investigation has revealed that approximately 20,000 products were acquired by identity theft.  The overall estimated losses exceed $42 million.

To date, 73 individuals have been arrested.  Law enforcement officials have also seized more than $6 million in assets, including cash, bank accounts, real estate, and stolen goods recovered from a warehouse.  The superseding indictment seeks the forfeiture of all property and funds derived from or traceable to the charged conduct.

“The criminal conspiracy, as alleged in the superseding indictment, is breathtaking in scope and varied in its means.  Although the public can often see criminal acts ‘above the surface,’ such as the violent robberies alleged in the superseding indictment, this case is a reminder that we do not often see the hidden criminal conspiracy ‘below the surface,’ whereby stolen or ill-gotten goods are sold in domestic or international commerce,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Such a wide-ranging conspiracy requires an equally wide-ranging response, and the cooperative, collaborative effort of our federal and local law enforcement partners made this investigation possible.”

“Together with our law enforcement partners, the FBI Dallas Violent Crimes Task Force has made great progress in removing violent offenders from our community,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Each time a device trafficker allegedly delivered a product to a supplier it was the direct result of theft, robbery or fraud.  We will continue working to dismantle organizations that threaten public safety, and will fulfill our duty to protect our residents.”

“HSI will never relent in our pursuit of individuals and criminal organizations that commit fraud, financial crimes and scams on the backs of hard-working Americans,” said Ryan L. Spradlin Special Agent in Charge HSI Dallas. “We will work tirelessly with our state and federal law enforcement partners to dismantle these organizations, seizing any financial gains and assets acquired, ensuring those responsible are held accountable for their selfish actions.” 

“The individuals arrested during this investigation committed a litany of financial and cyber-enabled financial crimes ranging from wire fraud and pandemic-related fraud, to bank fraud and more,” said U.S. Secret Service Special Agent in Charge of the Dallas Field Office, Bill Smarr. “This case is a testament to the teamwork and partnership at all levels of law enforcement to stop these cyber criminals from defrauding American citizens.”

“The U.S. Postal Inspection Service is committed to protecting the U.S. Mail from criminal activity and is proud to have taken part in the dismantling of this criminal network,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division.  “The financial impact of this exploitation was significant and would only have continued to increase if not for a resolute, investigative response with our local, state and federal law enforcement partners.  We will continue to pursue all leads, and we thank the U.S. Attorney’s Office for their commitment to holding criminal enterprises accountable for their actions.”  

The superseding indictment includes charges against the following individuals:

• Jerome Omega Boulden, Jr. a/k/a JayCash, 21, of Dallas;
• Alvin Damon Arnold, Jr., 19, of Dallas;
• Alcides Maurice Scott, 20, of Dallas;
• Derek Demond Calhoun, Jr., 23, of Dallas;
• Jacob Lamar Eichelberger, III, 20, of DeSoto;
• Skylah Glenn, 23, of Lancaster;
• Tyvarius Daitron Taylor, 20, of Dallas;
• Ronald James Wiltz, 21, of Dallas;
• Sherman Leon Brown, 24, of Dallas;
• Jatyrine Marquis Stewart, 18, of Dallas;
• Davaunce Lakeith Lewis, 21, of Dallas;
• Darion Demon Anderson, 27, of Dallas;
• Brandon D’Lon Smittick, 30, of Dallas;
• Deira Jatary Davis, 19, of Dallas;
• Taurean Dion Armstrong, 27, of Cedar Hill;
• Jawaune Antonne Lee, 27, of Dallas;
• Kaylen Elizabeth Taylor, a/k/a KT, 26, of Dallas;
• Ciarra Chesarae Thibodeaux, 26, of Red Oak;
• Dajone Raheem Jaleel Gentry, 24, of Garland;
• Janvier Leiaron Branch, 23, of Spring;
• Joshua Uriah Tisdale, 23, of Denton;
• Ashley Nicole Washington, 24, of Lakeland, TN;
• Arsalan Bhangda, a/k/a Adam, 36, of Plano;
• Abdul Basit Bhangda, 30, of Plano;
• Jacqueline Daneane Quinn, 26, of Corinth;
• Jasmine Hailey Omar, 20, of Garland,
• Edwin Iglesias, 26, of Grand Prairie;
• Timothy James Leach, 21, of Burleson;
• Jacqueline Montes, 27, of Cleburne;
• Austin Brooks Young, 21, of Burleson;
• Gregory Steven Trent, a/k/a Ace, 34, of Farmers Branch;
• Eddie Donte Rodden, 24, of Dallas;
• Ryeshawn Willie Devon Green, a/k/a Peso, 31, of Dallas;
• Cary Mark Thompson, 35, of Dallas;
• Michelle Estefany Smith, 25, of Dallas;
• Marcus Allen Harlston, 36, of Little Rock, AR;
• Jamel Lamar Rankin, 25, of Lonoke, AR;
• Brent R. Johnson, 35, of North Little Rock, AR;
• Victor G. Youngblood, 35, of Little Rock, AR;
• Gregory Deshaun Wilkins, 35, of Little Rock, AR;
• Richard Todd Sims, a/k/a Richy Rich, 35, of Arlington;
• Zxerion Deosic Lee, 24, of Dallas;
• Deandre Jamal Staten, 22, of Dallas;
• Samuel Gregory Shorter, Jr., 28, of Dallas;
• Natasha Latrice Qualls, 26, of Fort Worth;
• Chukedrick D. Tarver, a/k/a Blacc, 34, of Denton;
• Brittany Vichelle Edwards, 33, of Lancaster;
• Laquan Dontrial Cooks, a/k/a Midas, 30, of Arlington;
• Nicholas Marchelle Chandler, a/k/a Brody, 25, of Dallas;
• Donte Thomas Deddo, 49, of DeSoto;
• Jordan Rashad Selexman, a/k/a Fero, 30, of Dallas;
• Sameer Ahmed Mohammed, 36, of Sugarland;
• Farhan Nuruddin Parpia, 24, of Richmond;
• Travis Donnell Moore, 34, of Katy;
• Robert Denton Whitmire, Jr., 36, of Willis;
• Matthew Daniel Smith, 41, of LaMarque;
• Jacqueline Sue Hardee, 27;
• Daniel Shapir Rascoe, 30, of Houston;
• Rayanna Dawn Byers, 21, of Pasadena;
• Kieffer James Barchetti, 23, of Houston;
• Kamie Taylor Jasinski, 21, of Houston;
• Junior Porfirio Nepomuceno-Hierro, 36, of Houston;
• Cesar Augusto Reyes, 44, of Bronx, NY;
• Darius Grant Whitlow, 30, of Farmington Hills, MI;
• Jibran Khalil, 33, of Richardson;
• Mohamed Tahiri, a/k/a Simo, 37, of Allen;
• Patrick Lydell Simmons, 52, of Waxahachie;
• Maryann E. Simmons, 53, of Waxahachie;
• Preston Patrick Simmons, 29, of Waxahachie;
• Cameron Patrick Simmons, 36, of Waxahachie;
• Lauren Ashley Elizabeth Simmons, 23, of Waxahachie;
• Dexter Lenner Caldwell, 53, of DeSoto;
• Keren Vargas-Gutierrez, 29, of Fishkill, NY;
• Edward Vonal Simmons, 55, of Stephenville;
• Sebastian Dominique Blay, 30, of Allen;
• Carey Watkins, Jr., 54, of Dallas;
• Michael Dimietri Reeves, 56, of Addison;
• Joshua Tapia, 27, of Fishkill, NY;
• Michael Joseph Savattere, 48, of Rowlett;
• Aashish Bhusal, 36, of Aubrey;
• Malik Salameh, a/k/a Blue, 27, of Dallas;
• Mohammad W. Salameh, a/k/a Moe, 27, of Dallas;
• Feras Mahmod Obeidat, 30, of Grand Prairie;
• Ali Anwar, 29, of Rowlett;
• Abdullah Anwar, 24, of Rowlett;
• Avaz Karimov, 41, of Plano;
• Clifford Jerome Smith, 28, of Garland;
• Shahrukh Razzak, 30, of Pflugerville;
• Joseph Delany Cooper, 29, of Austin;
• Arturo Gonzalez, 24, of Austin;
• Eulises Isidro Tavarez, 36, of Killeen;
• Nansellys Crespo-Rios, 37, of Killeen;
• Ruben Santana-Polanco, 40, of Lodi, NJ;
• Jordan Minh Nguyen, a/k/a Toan, 27, of Richardson;
• Ionel Stanescu, 33;
• Ana Marie Stanescu, 32, of Orlando, FL;
• Ionut Antonie, 32, of Asheville, NC;
• Elena Irina Antonie, Glasgow, KY;
• Marian Alexandru Firu, 20, of Denver CO;
• David Constanin, 29; and
• Costel Stanescu, 58, of Las Vegas, NV

 

If convicted, the defendants face up to 25 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Secret Service, U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration, Texas Department of Public Safety, Dallas Police Department, Garland Police Department, Dallas County District Attorney’s Office, Carrollton Police Department, Grand Prairie Police Department, Richardson Police Department, U.S. Marshals Service for Eastern District of Texas, Denton Police Department, Allen Police Department, Sherman Police Department, and Denison Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Ernest Gonzalez, Colleen Bloss and Lesley D. Brooks.

A grand jury superseding 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 – A Dallas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Zachariah Logan Carl, 31, pleaded guilty on April 12, 2021, to conspiring to possess with intent to deliver methamphetamine and cocaine and was sentenced to 135 months in federal prison today by U.S. District Judge Amos L. Mazzant. 

“The sentence handed down today reflects EDTX’s policy to aggressively target and pursue those responsible for bringing drugs into the Eastern District regardless of where they live,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Drug traffickers need to understand that despite their best efforts, it is only a matter of time until they are caught and brought to justice.”

According to information presented in court, from May 2019 through September 2019, a narcotics investigation into methamphetamine, MDMA and other drugs that were being sold in and around Cooke County identified Carl as the main source of supply.  On Sep. 17, 2021, Carl was arrested on an outstanding felony warrant at his Dallas apartment, along with co-defendants Michael Luke Allison and Mary Margaret Merrell.  A search of the apartment revealed an assault-style rifle on the couch; 489 grams of methamphetamine; 82.387 grams of cocaine; a digital scale; 119.6 grams of various pills; 1,121.8 grams of various liquid substances suspected of being GHB; 20 milligrams of Diazepam rectal gel; multiple fraudulent identification cards containing Carl’s photograph; multiple cellular phones; and a bag containing multiple rounds of ammunition.  Merrell and Allison both explained the methamphetamine inside the apartment belonged to Carl. A forensic analysis of Merrell’s cell phone revealed evidence that Merrell had been acting as a middle-man for Carl, arranging purchases of narcotics for others. A forensic analysis of Allison’s phone showed extensive communications with Carl relating to the distribution of cocaine, methamphetamine, Xanax, and gamma-hydroxybutyrate (“GHB”). Ultimately, the investigation revealed that Carl had been selling an extensive amount of various narcotics for many years, all while living under an assumed identity.

Other members of the conspiracy included Dallas residents Kathe Tran Vo, James Travis Tanner, Maxine Juliette Mitchell, and James Anthony Marzioli, all of whom previously pleaded guilty and have already been sentenced to terms of imprisonment. Vo and Mitchell both received 120 months for their role in the conspiracy. Tanner received 145 months for his role in the conspiracy. Marzioli was sentenced to 135 months, Allison received 60 months, and Merrell was sentenced to 120 months in federal prison. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cooke County Sheriff’s Office, the Dallas Police Department, the U.S. Drug Enforcement Administration, and the Rockwall County Sheriff’s Office.  The case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

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BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Demarcus Dewayne Elam, 23, pleaded guilty on March 2, 2021, to receipt of a firearm while under indictment and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia A. Crone.

“Those under a felony drug indictment have no business possessing a firearm, particularly a stolen one,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thanks to the great work of ATF and the Port Arthur Police Department, Jefferson County is a little bit safer.”

According to information presented in court, on May 3, 2020, Elam was pulled over in Port Arthur for a traffic violation.  During the traffic stop, the law enforcement officer conducting the stop learned that Elam was wanted on outstanding warrants.  Elam was arrested on those outstanding warrants and the officer began to search Elam incident to arrest.  Elam informed the officer he had a firearm in his pocket.  The officer retrieved the firearm and learned from dispatch the firearm had been reported stolen in Beaumont.  Further investigation revealed that on Sep. 24, 2018, Elam had been placed on four years of deferred probation for a felony drug charge.  Based on the deferred adjudication, Elam is considered to be under indictment and prohibited from owning or possessing firearms or ammunition. 

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

This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.

 

BEAUMONT, Texas – A Kirbyville man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

William Cody Shaver, 37, pleaded guilty on May 28, 2021, to possession of stolen mail and possession of fifteen or more stolen access devices and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia A. Crone. 

“Many Americans have either been directly affected by mail and identity theft or have a close friend or family member that has been victimized by mail and identity thieves,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX is proud to partner with the Postal Inspection Service to safeguard the public’s personal information and to aggressively prosecute those that would seek to steal or profit from such private information.”

“We understand the impact mail theft can have on our valued customers.  Mail theft is a serious crime, and we will work tirelessly to find those responsible and bring them to justice, as represented in this sentencing.  The U.S. Postal Inspection Service was created to protect the U.S. Mail, and we will not lose sight of that mission,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division.  “The mission is often accomplished through partnerships, and we thank the Newton County Sheriff’s Office for their efforts in this case.  We also thank the U.S. Attorney’s Office in the Eastern District of Texas for pursuing this case through to the end.” 

According to information presented in court, in September 2020, the Newton County Sheriff’s Office received multiple complaints of stolen mail throughout the area.  An investigation led authorities to Shaver and a search warrant was executed at his residence in Kirbyville on Sep. 25, 2020.  Shaver was found to be in possession of more than 200 pieces of stolen mail and mail matter including: credit cards, checks, gift cards, personal identification numbers, bank statements, and other miscellaneous items.  It was determined that Shaver victimized 82 separate Newton County residents at an estimated potential loss to those victims of more than $200,000.  Shaver was indicted by a federal grand jury on March 3, 2021. 

This case was investigated by the Newton County Sheriff’s Office and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Jonathan C. Lee.       

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SHERMAN, Texas – A Wylie man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Noble Nwachukwu, 26, pleaded guilty on Oct. 23, 2019, to conspiracy to commit bank fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Amos L. Mazzant.  The district court additionally ordered that Nwachukwu forfeit $56,921.40.

“An act of fraud against a FDIC-insured banking institution is ultimately a fraud on the American taxpayer,” said Acting U.S. Attorney Nicholas J. Ganjei.  “EDTX, along with its federal and local law enforcement partners, will do whatever it takes to keep our local financial institutions free from fraud and other criminal opportunism.”

According to information presented in court, in January 2019 law enforcement officers responded to a suspicious activity call and found Nwachukwu with $18,960 in cash in his vehicle.  A consent search of Nwachukwu’s cellular phone revealed a fraudulent check cashing scheme where fraudulent checks were drawn on Key Bank HELOC (home equity line of credit) accounts belonging to unrelated victims.  These checks were deposited into the account of Nwachukwu and another individual.  A total of three checks were deposited.  The bank froze the funds from one check totaling $29,900.  A second check for $37,900 was also deposited, with $37,200 subsequently withdrawn in cash.  A third check for $37,200 was deposited but the funds were frozen by the bank.  Nwachukwu and his accomplice Chijioke Maduewesi were indicted by a federal grand jury on July 9, 2019.  Maduewesi pleaded guilty on July 29, 2021 and is awaiting sentencing.

This case was investigated by the U.S. Secret Service and the Wylie Police Department and prosecuted by Assistant U.S. Attorney Kevin McClendon.     

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