Eastern District of Texas
Press releases recorded for this federal judicial district.
Eastern District of Texas Delivers Another Blow Against White Supremacist Prison GangRead the Press Release
BEAUMONT, Texas – Three individuals connected to the Aryan Circle (AC) prison gang have pleaded guilty to federal violations, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Anthony Levi Cochran, 39, of Bullard, Texas pleaded guilty today to charges related to an October 2016 violent assault in the Eastern District of Texas. Specifically, he admitted to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Cochran committed the assault as part of his membership in the AC.
Additionally, Breanna Beckley, 40, of Moberly, Missouri, pleaded guilty on June 29, 2021, to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine. Shane Louque, 46, of Gonzales, Louisiana, pleaded guilty to the same charges today.
“In the battle against organized, multistate criminal organizations, agency cooperation is essential,” said Acting U.S. Attorney Nicholas J. Ganjei. “Criminals carry on their illegal and violent conduct in whatever jurisdiction benefits them the most, so we need to bring the fight to them, wherever they might be.”
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Cochran’s offense conduct included planning and participating in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Cochran and other AC members carried out the attack in order to “X,” or remove, the AC member from the gang, because it violated the AC’s rules to join another organization. According to court documents, Beckley transported between 1.5 and 5 kilograms of methamphetamine in 2016, from Houston, Texas, to buyers in Louisiana, such as Louque and other AC members. The drug conspiracy that Beckley and Louque pleaded to was uncovered as part of Operation Noble Virtue, an investigation into the AC that has targeted AC leadership.
Cochran was indicted by a federal grand jury on Oct. 7, 2020. He faces up to 20 years in federal prison. Beckley and Louque were also indicted on Oct. 7, 2020, and each face up to life in federal prison. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencings 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 presentence investigations by the U.S. Probation Office.
This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; 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.
Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas is prosecuting these cases along with trial attorneys from the Organized Crime and Gang Section of the Department of Justice.
###
Jefferson County Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
George Broussard, also known as Man, 32, pleaded guilty to possession of a firearm by a prohibited person today before U.S. Magistrate Judge Keith Giblin.
“Today’s guilty plea is another victory for the Department of Justice’s Project Safe Neighborhoods program and our effort to help make Beaumont a safer community,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office, along with the Beaumont Police Department and our other local, state, and federal law enforcement partners, will never stop working to keep firearms out of the hands of violent criminals.”
According to court documents, on March 9, 2021, Broussard was observed by law enforcement officers driving a vehicle without a front license plate in the 3700 block of Magnolia in Beaumont. When officers began to follow the vehicle, Broussard tossed a firearm from the vehicle and sped off. Broussard was apprehended and the firearm was recovered. Further investigation revealed that Broussard had an extensive criminal record including felony convictions for burglary of a building; unauthorized use of a vehicle; evading arrest with a vehicle; theft from a person; aggravated robbery; and two convictions for possession of a controlled substance, all in Jefferson County, Texas. As such, Broussard is prohibited from owning or possessing firearms or ammunition.
Broussard was indicted by a federal grand jury on April 27, 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 is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.
###
Honduran National Extradited to Eastern District of Texas Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Honduran man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Oscar Ruiz Colon, 41, pleaded guilty on Feb. 4, 2021, to conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States and was sentenced to168 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
“The great work of law enforcement in this case demonstrates that criminals cannot avoid federal prosecution by conducting their activities abroad,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to aggressively fight the scourge of drug trafficking at the source, no matter how far away or well-concealed the offenders might be.”
“Criminals who attempt to broker and facilitate cocaine shipments into the United States will meet swift justice through DEA’s tireless efforts to dismantle Transnational Criminal Organizations across the world,” said DEA Special Agent in Charge Eduardo A. Chávez. “We applaud our South American counterparts to remain committed to the rule of law and the DEA will continue to work together to ensure consequences come to those who profit from illicit drugs in our neighborhoods.”
According to information presented in court, beginning sometime in 2017, Colon, a resident and national of Honduras, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments which originated from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. A federal grand jury returned an indictment charging Colon with federal drug trafficking violations on August 8, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
###
Target of U.S. Attorney’s Office Anti-Violent Crime Initiative Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jarrel Jakeem Joseph, 25, pleaded guilty to receipt of a firearm while under indictment today before U.S. District Judge Michael J. Truncale.
“We take violent crime seriously in Southeast Texas, and violent individuals who possess firearms will be held accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s guilty plea represents another step forward in making Port Arthur a safer community.”
According to court documents, on March 31, 2021, Joseph and several other individuals were observed fighting by law enforcement in 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 on Oct. 8, 2020, Joseph was placed on probation for seven years after a deferred adjudication of guilt for felony possession of a controlled substance in Jefferson County, Texas. Joseph is prohibited from possessing or receiving firearms as part of the deferred adjudication.
Joseph was indicted by a federal grand jury on May 13, 2021. He faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.
Jefferson County Doctor Sentenced to Federal Prison for Health Care Fraud ViolationsRead the Press Release
BEAUMONT, Texas – A physician practicing in Beaumont has been sentenced to prison for federal health care fraud violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Grigoriy T. Rodonaia, 45, of Port Neches, Texas, was convicted by a jury on Nov. 17, 2020, of 12 counts of health care fraud, three counts of aggravated identity theft, and one count of making a false statement. Rodonaia was sentenced to 84 months in federal prison today by U.S. District Judge Marcia Crone. Rodonaia was additionally ordered to pay $195,607.76 in restitution.
“Mr. Rodonaia’s sentence is well deserved. His criminal acts inflicted significant financial harm on the TRICARE system and involved identity theft from military service members and their families,” said Acting U.S. Attorney Nicholas J. Ganjei. “Targeting health care fraud in all its forms remains a top priority for the U.S. Attorney’s Office for the Eastern District of Texas.”
Rodonaia, a physician practicing in Beaumont with Rodonaia Family Medicine and Aesthetics, was indicted on March 18, 2020. According to information presented in court, beginning in January 2015, Rodonaia participated in a health care fraud scheme by issuing prescriptions for specially compounded scar creams using the names, dates of birth, and Health Insurance Claim Numbers of TRICARE beneficiaries, and caused the prescriptions to be forwarded directly to Memorial Compounding Pharmacy in Houston, Texas. These prescriptions were issued without consultation with the patient and without the patient’s knowledge. The pharmacy billed the prescriptions to the military health care program, TRICARE, at approximately $9,000 to $13,000 per prescription, with multiple refills authorized per prescription. Rodonaia issued over 600 prescriptions in the names of approximately 140 beneficiaries in furtherance of this scheme. Before the scheme could be detected, TRICARE paid approximately $6.7 million in TRICARE funds to Memorial Compounding Pharmacy. Further, to conceal his criminal activity, Rodonaia forged patient records to create the false appearance that he had examined those patients, and he submitted the fraudulent records to the Defense Health Agency in response to an audit.
This case was investigated by the Defense Criminal Investigative Service, the Drug Enforcement Administration, Health and Human Services – Office of Inspector General, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorneys John B. Ross and Robert A. Wells prosecuted this case.
###
Jefferson County Engineer Sentenced for $13 Million COVID-Relief FraudRead the Press Release
BEAUMONT, Texas – A Beaumont engineer has been sentenced for his participation in a scheme to file two fraudulent loan applications seeking more than $13 million 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 Eastern District of Texas Acting U.S. Attorney Nicholas J. Ganjei today
Shashank Rai, 31, pleaded guilty on Feb. 9, 2021, to making false statements to a bank and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia A. Crone. Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. In the application submitted to the first lender, Rai sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
“The Payroll Protection Program was designed to provide financial support during the COVID-19 pandemic to real American businesses with real employees,” said Acting U.S. Attorney Nicholas J. Ganjei. “It was not designed to provide loans to individuals for personal investment purposes. Today’s sentence demonstrates our shared commitment to protecting this important, taxpayer-funded program.”
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA-OIG, FDIC-OIG, SBA-OIG, and USPIS. Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan prosecuted the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Henderson County Man Sentenced to 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
TYLER, Texas – An Athens, Texas man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Matthew Don Herrington, 49, pleaded guilty on Dec. 12, 2020, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison on June 16, 2021, by U.S. District Judge Jeremy D. Kernodle.
“Drug dealers who pump poison into our communities will face certain and severe consequences,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will continue to partner with federal, state, and local agencies to ensure our communities are safe and to bring to justice those who spread the misery of methamphetamine.”
According to documents and information presented in court, Herrington was arrested on Oct. 22, 2019 by Rusk County Sheriff’s Deputies with a quantity of methamphetamine that he intended to distribute to others, along with a firearm. In March 2020, Rusk County Deputies learned that Herrington was still engaged in methamphetamine trafficking. On March 25, 2020, Deputies executed a search warrant of Herrington’s home and recovered a distributable quantity of methamphetamine and another firearm. Herrington is prohibited from possessing firearms because of multiple prior felony convictions, including a 2009 federal conviction for distribution of methamphetamine, for which he received 70 months in federal prison.
This case was investigated by the U.S. Drug Enforcement Administration and the Rusk County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ryan Locker.
###
Final Defendant Sentenced in Anderson County Drug Trafficking ConspiracyRead the Press Release
TYLER, Texas – The final defendant has been sentenced to federal prison in a drug trafficking conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Amber Nicole Priehs, 30, pleaded guilty on Dec. 12, 2019, to conspiracy to distribute cocaine, methamphetamine, and heroin, and was sentenced to 80 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Priehs was the sixth and final Palestine, Texas resident to be sentenced in the drug trafficking conspiracy.
“The imprisonment of this drug trafficking organization is a significant victory for the citizens of Palestine and the rest of East Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will continue to pursue those who pump poison and misery into our communities. These defendants showed an utter lack of regard for their fellow citizens by lining their own pockets off of addiction and the decay of their own community.”
According to information presented in court, Byron Bernard Billups, Brandon Williams, and Priehs distributed large amounts of methamphetamine, cocaine, and heroin in Palestine and surrounding areas. Billups served as the leader and primary source of supply and worked with Priehs and others to acquire kilos of methamphetamine and other drugs from sources of supply across Texas and brought them back to East Texas for distribution. Brandon Williams distributed bulk methamphetamine, cocaine, and ecstasy to wholesale and retail customers from his home in Palestine, which he shared with his uncle, Larry Williams, who also assisted with handling customers in the drug deals. Priehs distributed bulk methamphetamine, cocaine, and heroin directly to customers and through Marcos Navarro, who reported to Priehs. Priehs also recruited Steve Foster to store bulk drugs at his house, which he also permitted Priehs to use to meet customers. A federal grand jury returned an indictment charging the defendants with federal drug trafficking violations on Feb. 20, 2019.
Brandon Kione Williams, 37, pleaded guilty on Sep. 21, 2020, to conspiracy to distribute drugs and was sentenced to 216 months in federal prison on March 25, 2021. Larry Joe Williams, 65, pleaded guilty on March 9, 2020, to misprision of a felony and was sentenced to 36 months in federal prison on Oct. 13, 2020. Byron Bernard Billups, 36, pleaded guilty on July 14, 2020, to conspiracy to distribute drugs and was sentenced to 120 months in federal prison on Dec. 17, 2020.
Marcos Antonio Navarro, 35, pleaded guilty on March 12, 2020, to conspiracy to distribute drugs and was sentenced to 60 months in federal prison on August 11, 2020. Steve Allen Foster, 33, pleaded guilty on March 16, 2020, to conspiracy to distribute drugs and was sentenced to 78 months in federal prison on Sep. 15, 2020.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration, Texas Department of Public Safety-CID, and the Palestine Police Department. These defendants were prosecuted by Assistant U.S. Attorneys Ryan Locker, Colleen Bloss, and Heather H. Rattan.
###
Costa Rican National Extradited to Eastern District of Texas and Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
PLANO, Texas – A Costa Rican man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Felipe Espinoza-Cruz, 49, pleaded guilty on Feb. 3, 2021, to conspiracy to manufacture and distribute 5 kilograms or more of cocaine for distribution into the United States and was sentenced to 135 months in federal prison today by U.S. District Judge Sean D. Jordan.
“As this case demonstrates, drug smugglers will use any transportation method they can to bring their deadly wares to our shores,” said Acting U.S. Attorney Nicholas J. Ganjei. “Although the transportation network these traffickers devised and implemented was extraordinarily vast and complex, our law enforcement partners were able to identify and disrupt it, and ultimately bring the perpetrators to justice in United States courts. This case is nothing less than a tremendous win for the American people.”
“Drug trafficking, whether on one of our local street corners or on the open sea 1500 nautical miles away still impacts the safety and security of all of our lives,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “This sentence reflects our continued resolve to partner with our international law-enforcement counterparts to fight greed, violence, and drug addiction as we continue to combat the crises we face daily.”
According to information presented in court, from at least 2005 and continuing up until his indictment, Espinoza-Cruz, a resident and national of Costa Rica, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments originating in Colombia and then shipped to Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. A federal grand jury returned an indictment charging Espinoza-Cruz with federal drug trafficking violations on Nov. 10, 2016.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
###
Florida Man Guilty in Transnational Money Laundering Operation Involving Elder FraudRead the Press Release
TYLER, Texas – A Floridian who moved to Sulphur Springs, Texas has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jeremy Christopher Jones, 46, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love. Jones has additionally agreed to pay restitution in the amount of $438,433.00, representing the proceeds he and his recruits received and deposited.
“Multiple federal agencies worked together to dissect a complicated, international financial scheme that was bilking thousands of Americans from all over the country out of hard-earned funds,” said Acting U.S. Attorney Nicholas J. Ganjei. “Together, those agencies have ensured that individuals seeking to profit from fraudulent activities have been called to account. Today’s plea has added significance, given that it comes on the eve of World Elder Abuse Awareness Day.”
According to information presented in court, in 2014, Jones, who then lived in Florida, became involved with a money laundering operation. He picked up funds wired to various money services businesses, such as MoneyGram and Western Union. Jones created fictitious companies and opened bank accounts in the names of these businesses, and then deposited the money into the accounts for the fake companies. The wired funds were actually fraud proceeds obtained from victims of various schemes, including loan modification scams, IRS impersonation scams, and credit card scams.
Jones relocated to Sulphur Springs, Texas in 2015, but continued his money laundering activities. He made pickups of wired victim funds, and also recruited others, supervised their activity. Jones was paid a percentage of the cash and money orders that he and his recruits picked up. He returned to Florida in 2018 and resumed his money laundering operations there.
Jones was indicted by a federal grand jury on June 29, 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.
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 Investigations; Housing and Urban Development-Office of Inspector General; the United States Secret Service; and Treasury Inspector General-Tax Administration and prosecuted by Assistant U.S. Attorneys Alan Jackson and Frank Coan.
###
Beaumont Felon Sentenced for Parkdale Mall Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Derionte Chrishaun Thomas, aka, Shug, 25, pleaded guilty on Feb. 24, 2021, to being a felon in possession of a firearm and was sentenced to 100 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Felons who possess firearms, and certainly those who possess firearms in connection with other felony offenses, will receive swift justice in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “This violent felon is now off the streets of Beaumont for a considerable time thanks to the hard work of the Beaumont Police Department and the ATF.”
According to information presented in court, on Sep. 24, 2020, Beaumont police officers responded to a call regarding a theft and aggravated assault at Parkdale Mall in Beaumont. Upon arrival, officers spoke to the victim, who told officers that men in a black SUV stole her purse in the parking lot, and that the driver pointed a handgun at her face. A short time later, officers located the black SUV parked at Smoke Deez Smoke Shop in Beaumont, and observed three males, including Thomas, exiting the smoke shop and walk towards the SUV. Officers engaged the suspects, who fled on foot. During this pursuit, officers saw Thomas discard a handgun. All three individuals were eventually caught and placed in custody, and the victim’s purse was found inside the black SUV. The handgun that Thomas tossed was also recovered. Further investigation revealed Thomas was a convicted felon having previously been found guilty of unauthorized use of a vehicle in 2016 in Harris County; unlawful possession of a firearm by a felon in 2017 in Jefferson County; and continuous family assault in 2017 in Jefferson County. As a convicted felon, Thomas is prohibited from owning or possessing forearms or ammunition. Thomas was indicted by a federal grand jury on Oct. 27, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matt Quinn.
###
Collin County Man Convicted of Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – An Allen man was found guilty by a jury of federal child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Clay Melton Denton, 56, was found guilty of distribution, receipt and possession of child pornography today by a jury following a five-day trial before U.S. District Judge Amos L. Mazzant, III.
“Those that view and trade child pornography perpetuate a cycle of exploitation and abuse by providing a market for producers,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas will do whatever it takes to stamp out this terrible industry—and make no mistake, it is indeed an industry—doing so with the help of our federal, state, and local law enforcement partners.”
“The sheer volume of devices and images recovered by investigators in this case is astounding. I commend the FBI’s Child Exploitation Task Force, the Garland and Plano Police Departments and the North Texas Regional Computer Forensics Laboratory for their diligence in processing evidence to best serve justice in this investigation,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “With our partners, we are committed to ensuring that distributors of abusive content are held accountable so that we can protect our population’s most vulnerable members.”
“This important collaboration with our local area and Federal law enforcement partners continues to keep catching these criminals in an effort to keep our communities safe,” said Plano Police Chief Ed Drain. “We are very appreciative all those involved in this case.”
“I am proud of the work that our police department is doing, and cases like these showcase the importance and effectiveness of working together not only locally but federally,” said Garland Police Chief Jeff Bryan. “The safety of our communities is the top priority, and these are the types of folks we need off our streets.”
According to the court documents and testimony at trial, in January and March 2018, undercover officers with the Plano Police Department and the Garland Police Department received child pornography, via an online platform, that had been distributed to them by a computer user. The officers traced the online conduct to the Denton residence in Allen, Texas. Members of the FBI obtained a search warrant for the residence, which they served on April 25, 2018. The searching team discovered multiple digital devices in the residence, including server racks, network area storage devices, laptops, hard drives, cellular phones, and digital storage media. Agents testified that the entire second story of the house was filled with floor-to-ceiling book cases storing digital devices, manuals, and peripherals. Additional testimony revealed that forensic analysis of the seized devices took almost one year. During this forensic analysis, personnel discovered tens of thousands of images and videos of child pornography. Specifically, evidence demonstrated that a laptop belonging to Denton and located on one of his desks contained the same software used to distribute child pornography to the undercover officers. That software was also used to obtain child pornography, which was saved on a different portion of Denton’s computer. Evidence also revealed that child pornography was located on a 60+ terabyte storage device that Denton owned and possessed. A federal grand jury returned an indictment charging Denton with federal violations on Sep. 11, 2019.
On June 11, 2021, the jury returned a guilty verdict on all counts of the indictment. Under federal statutes, Denton 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 was investigated by the Plano Police Department, Garland Police Department and the FBI Dallas Child Exploitation Task Force and prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.
###
Seven-Time Felon Sentenced for Federal Firearms ViolationRead the Press Release
TYLER, Texas – A Carthage man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Tyreese Williams, 34, pleaded guilty on March 3, 2021, to being a felon in possession of a firearm and was sentenced to 72 months in federal prison today by U.S. District Judge J. Campbell Barker.
“Felons who possess firearms endanger our communities and are a priority for federal prosecution,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will continue to partner with federal, state, and local agencies to keep firearms out of the wrong hands. As a seven-time convicted felon, Tyreese Williams should have expected this day of reckoning.”
According to information presented in court, Williams was arrested on May 2, 2019 by deputies of the Panola County Sheriff's Office following a nine-mile high-speed chase where Williams’ speed exceeded 120 miles per hour. Subsequent to Williams’ arrest, deputies searched Williams’ car and found a handgun. While being placed under arrest, Williams informed the deputies that he had swallowed a large amount of methamphetamine just prior to surrendering to police.
Among his seven prior felony convictions, Williams has previously been convicted of evading detention in a motor vehicle, possession of a controlled substance (twice), felon in possession of a firearm, forgery (twice), and assault family violence by impeding an airway or circulation. As a convicted felon, Williams is prohibited from owning or possessing firearms or ammunition. Williams was indicted by a federal grand jury on March 15, 2020.
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 Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Ryan Locker.
###
Ninth Circuit Court of Appeals Judge Ken Lee Addresses Eastern District of Texas as Part of EDTX’s Distinguished Speaker SeriesRead the Press Release
BEAUMONT, Texas – The United States Attorney’s Office for the Eastern District of Texas is pleased to announce the latest guest in its EDTX Distinguished Speaker Series, Judge Kenneth Kiyul Lee of the U.S. Court of Appeals for the Ninth Circuit.
Judge Lee has served on the Ninth Circuit since June 2019. Prior to joining the court, he was a partner in the Los Angeles office of Jenner & Block. From 2006 to 2009, Judge Lee was Associate Counsel and Special Assistant to the President. He has also served as a special counsel on the United States Senate Judiciary Committee and was an associate at Wachtell, Lipton, Rosen & Katz from 2001 to 2006. Judge Lee is no stranger to Texas – he began his legal career as a law clerk to Fifth Circuit Judge Emilio M. Garza from 2000 to 2001.
Judge Lee was born in South Korea and is only one of three Korean Americans to serve on any United States Courts of Appeal.
“The Eastern District is fortunate to have Judge Lee speak to us today. It is particularly fitting to hear from Judge Lee shortly after we celebrated Asian American and Pacific Islander Heritage Month,” said Acting U.S. Attorney Nicholas J. Ganjei. “In his brief service as federal judge, Judge Lee has already distinguished himself for his clear writing and sharp legal analysis. I am confident Judge Lee will continue his excellent service to our Nation and the rule of law for years to come.”
Judge Lee is a graduate of Cornell University (summa cum laude) and Harvard Law School (magna cum laude).
###
Nacogdoches Felon Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Marcus Bernard Tutt, 42, pleaded guilty on Jan. 27, 2021, to possession with intent to distribute methamphetamine and use of a firearm during a drug trafficking crime and was sentenced to 222 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Methamphetamine abuse has a tremendously negative effect on our local communities, touching upon every facet of our daily lives” said Acting U.S. Attorney Nicholas J. Ganjei. “Ensuring the health and safety of East Texas begins with prosecutions like this case, and you can expect EDTX to maintain its aggressive posture in prosecuting meth trafficking.”
According to information presented in court, on Nov. 25, 2019, Tutt was stopped by a trooper with the Texas Department of Public Safety for a traffic violation and was arrested for driving without a valid license. During a subsequent search of Tutt’s vehicle, the trooper located 100 grams of methamphetamine and a revolver. Tutt has numerous prior felony convictions, including possession of a controlled substance, credit card abuse, unlawful possession of a firearm by a felon, attempted obstruction, forgery, aggravated assault with a deadly weapon, and multiple convictions for delivery of a controlled substance. As a convicted felon, Tutt is prohibited from owning or possessing firearms or ammunition. Tutt was indicted by a federal grand jury on August 19, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Donald S. Carter.
###
Guatemalan National Extradited to Eastern District of Texas and Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
PLANO, Texas – A Guatemalan man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jose Ramon Reyes Villagran, 37, pleaded guilty on Sep. 1, 2020, to conspiracy to import cocaine into the United States and manufacturing, distributing, and importing cocaine into the United States and was sentenced to 292 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Despite the sophisticated network of land, sea, and air smuggling routes, it wasn’t enough to conceal the criminal activities of Mr. Villagran and his associates from American investigators and our overseas law enforcement allies,” said Acting U.S. Attorney Nicholas J. Ganjei. “The long arm of the American justice system extends even overseas, and brings international drug traffickers and their conspirators to our shores to face justice in American courts.”
According to information presented in court, Villagran, a resident and national of Guatemala, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments which originated from Columbia. The drugs were then shipped to Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. Villagran was involved with coordinating airplanes used to transport cocaine shipments departing from Colombia and Venezuela to arrive at his clandestine landing strips in Guatemala. Thereafter, he distributed the bulk cocaine to his customers in Guatemala and Mexico. A federal grand jury returned an indictment charging Villagran with federal drug trafficking violations on August 8, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
###
Dallas Felon Sentenced for Cooke County Firearms ViolationRead the Press Release
PLANO, Texas – A Dallas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Charles Jerome Bowman, 54, pleaded guilty on Dec. 1, 2020, to being a felon in possession of a firearm and was sentenced to 210 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Keeping firearms out of the hands of dangerous criminals is essential to protecting our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s sentencing sends a strong message that the possession of firearms by convicted felons will be aggressively prosecuted.”
According to information presented in court, on March 24, 2019, a deputy with the Cooke County Sheriff's Office responded to a call regarding a reckless driver on Interstate 35. The deputy stopped the reported vehicle and identified the driver as Bowman. The deputy requested that Bowman exit the vehicle to issue a warning for defective equipment and because Bowman was showing signs of intoxication. Bowman refused to comply and became combative. He was wearing a holster containing a Phoenix Arms .25 caliber pistol. Bowman was subsequently arrested and transported to the Cooke County Jail. Upon arrival at the jail, Bowman threated to kill two of the officers. A criminal history check revealed that Bowman had numerous prior felony convictions, including robbery, aggravated assault, and aggravated robbery. Bowman was indicted by a federal grand jury on Oct. 9, 2019.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cooke County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
###
Dallas Brothers Convicted of Supplying Heroin in OverdoseRead the Press Release
PLANO, Texas – Two Dallas brothers have been found guilty of drug violations related to a 2019 overdose in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jose Antonio Carreto, 30, and his brother, Isauro Carreto-Cruz, 32, were found guilty by a jury of all counts: conspiracy and distribution of heroin resulting in seriously bodily injury, conspiracy to possess with intent to distribute and distribution of methamphetamine, and possession with intent to distribute and distribution of heroin resulting in serious bodily injury aiding and abetting. The verdict was reached today following a five-day trial before U.S. District Judge Sean D. Jordan.
According to information presented in court, on Sep. 25, 2019, law enforcement authorities responded to a heroin overdose on a Plano highway. The victim was administered Narcan and survived the overdose. An investigation revealed the Carreto brothers had supplied the heroin used in the overdose.
“As long as the scourge of heroin continues to devastate lives, so too will we continue to aggressively seek out and prosecute the perpetrators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Drug dealers should know that they’re not only on the hook for dealing drugs, but they’re also going to be held responsible for injuries or death stemming from their deadly wares. With this conviction and others like it, hopefully more lives will be saved.”
Jose Antonio Carreto and Isauro Carreto-Cruz were indicted by a federal grand jury on Nov. 13, 2019. Jose Antonio Carreto faces up to life in federal prison. Isauro Carreto-Cruz faces up to 40 years in federal prison. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Plano Police Department, the Texas Department of Public Safety and the Plano Fire Department and prosecuted by Assistant U.S. Attorneys Colleen Bloss and Ernest Gonzalez and Special Assistant U.S. Attorney Bethany Pickett.
###
Houston Man Pleads Guilty to Drug Trafficking in Southeast TexasRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jeremy Klintman, 38, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, a law enforcement investigation from May 2016 through August 2016, revealed that Klintman was supplying methamphetamine to others, including members of the Aryan Circle, for trafficking in Houston, Southeast Texas, and Southwest Louisiana.
“Trafficking methamphetamine in the Eastern District of Texas is going to result in a knock on the door from law enforcement,” said Acting U.S. Attorney Nicholas J. Ganjei. “Ensuring safe communities in Southeast Texas is a top priority for EDTX, and shutting down the methamphetamine trade is a lynchpin of that effort.”
Klintman was indicted by a federal grand jury on Oct. 7, 2020 and 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, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Texas Department of Public Safety, and Houston Police Department and prosecuted by Assistant U.S. Attorney Christopher Rapp and Trial Attorney Alexander Gottfried with the Department of Justice’s Organized Crime and Gang Section (OCGS).
###
Houston Man Sentenced for Federal Violations Related to Identity Theft SchemeRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to prison for federal violations related to identity theft in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
French Latrelle Carpenter, 45, pleaded guilty on Feb. 4, 2021, to access device fraud and was sentenced to 40 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Anybody who has ever been a victim of identity theft can attest to how stressful the experience can be and how difficult it can be to get your finances back in order,” said Acting U.S. Attorney Nicholas J. Ganjei. “Identity theft wreaks havoc on the finances of its victims, which can take literally years to repair. Criminals that victimize others through identity theft in the Eastern District of Texas should expect to receive a visit from law enforcement.”
According to information presented in court, a search of Carpenter’s vehicle on August 28, 2020 produced four credit card skimmers, a laptop computer, blank credit cards and several birth certificates bearing the names of other individuals. A search of the laptop, pursuant to a search warrant, revealed more than 100 credit card numbers and names along with personal identifying information for three individuals. The computer also contained a user guide for card/magnetic strip reader/writer software, a document related to credit card fraud and an internet search history related to the buying of stolen credit card data.
Carpenter was indicted by a federal grand jury on Nov. 4, 2020, and charged with federal violations.
This case was investigated by Homeland Security Investigations and the Corrigan Police Department and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
###
Houston Man Guilty of Laundering Drug ProceedsRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations related to drug trafficking in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Roberto Fuentes, 42, pleaded guilty to conspiracy to launder money today before U.S. Magistrate Judge Zack Hawthorn.
“Money laundering is a key part of hiding evidence of criminal activity such as illegal narcotics distribution,” said Acting U.S. Attorney Nicholas J. Ganjei. “When we disrupt a drug trafficking organization’s ability to profit from their illegal conduct, we are helping prevent dangerous, addictive substances from being distributed in East Texas. I continue to be grateful for the great work and dedication of the DEA and their efforts to combat all aspects of the illegal drug trade.”
According to information presented in court, Roberto Fuentes was an associate of Ruben Pulido Flores and participated in transactions to conceal currency that was the proceeds of Flores’ illegal drug trafficking. Since at least May 2017, Flores has supervised, managed and controlled a drug trafficking organization of more than five people that distributed cocaine and other narcotics in the Houston area, which was subsequently redistributed to customers throughout Southeast Texas, Atlanta, and Chicago.
Fuentes was indicted by a federal grand jury on Dec. 6, 2018 and charged with federal violations. Under federal statutes, Fuentes 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 U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.
###
Houston Man Sentenced for Tyler County ATM Burglary AttemptRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Aaron Lakeefe Rubins, 33, pleaded guilty on Jan. 14, 2021 to bank burglary and aiding and abetting and was sentenced to 24 months in federal prison today by U.S. District Judge Michael J. Truncale. Rubins was also ordered to pay restitution in the amount of $6,729.66.
“As if attempting to rob an ATM was not bad enough, the high-speed chase that this defendant and his co-conspirators engaged in endangered the lives of law enforcement and the public,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thankfully, law enforcement was able to bring the situation to a conclusion without any injury or loss of life.”
According to information presented in court, on March 4, 2020, law enforcement officers were alerted to an attempted theft of an ATM at the First National Bank in Woodville. A 911 caller reported a passenger car parked at an intersection just east of the bank with its hazard lights on and another car blocking an intersection just west of the bank. Additionally, a truck pulled into the bank’s parking lot and proceeded to back up to an ATM machine. Bank surveillance video shows the truck dragging a chain and three subjects exiting the truck, one with a crowbar.
Although the subjects were able to open the ATM and attach a chain to it, the truck was not able to drag away the ATM. The subjects then got into a getaway car and a high-speed chase ensued that continued into Polk County, where spike strips were deployed. The car struck a tree as it attempted to avoid the strips and two of the passengers ran away. However, the rear seat passenger was taken into custody and identified as Aaron Lakeefe Rubins. Rubins was indicted by a federal grand jury on June 3, 2020, and charged with federal violations.
This case was investigated by the Federal Bureau of Investigation, the Tyler County Sheriff’s Office and the Polk County Sheriff’s Office and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
###
Kemah Man Sentenced for Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A Kemah man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jimmy James Mamoth, Jr., 59, pleaded guilty on July 13, 2020, to attempted bank robbery and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Sep. 27, 2019, a witness observed Mamoth approach the entrance to the Texas First Bank in Hull, Texas, wearing a dark hooded jacket, gloves, a Halloween-style mask on his face, and carrying a duffle bag. The witness honked his vehicle’s horn to draw attention to Mamoth, who subsequently fled into the nearby woods. Law enforcement was able to locate and arrest Mamoth, and from him recovered an Airsoft-style replica gun meant to resemble a Beretta 9mm pistol. Mamoth was indicted by a federal grand jury on Oct. 9, 2019.
As part of his plea agreement, Mamoth admitted his participation in a string of other robberies and attempted robberies, specifically, the robbery of the Arbor 8 movie theater in Austin, Texas, on March 17, 2019; an attempted robbery of the Benchmark Bank in West Lake Hills, Texas, on June 4, 2019; the robbery of the Broadway Bank in Wimberley, Texas, on June 19, 2019; and the robbery of the First National Bank of Hughes Springs in Kilgore, Texas, on June 28, 2019.
“The brave actions of this witness not only stopped the bank robbery, but also put an end to the Defendant’s violent crime spree,” said Acting U.S. Attorney Nicholas J. Ganjei. “We applaud this citizen’s courage and quick thinking and extend our sincere thanks on behalf of law enforcement.”
This case was investigated by the Federal Bureau of Investigation, Beaumont Resident Agency, the Liberty County Sheriff’s Office, the Austin Police Department, the West Lake Hills Police Department, the Hays County Sheriff’s Office, and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Christopher Rapp and Rachel Grove.
###
Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
PLANO, Texas – A Murphy, Texas, man, pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable 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, 44, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
“PPP loans were intended to help businesses keep themselves and their employees afloat during the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “PPP loans were not, and never were, intended to serve as personal loans for personal use. By applying and qualifying for PPP funds on fraudulent grounds, Fahad Shah took advantage of the COVID-19 economic crisis to enrich himself and his family. By seeking a loan that he should not have received, Shah helped to deplete the amount of funds available to all potential legitimate borrowers who really needed financial support. This plea shows that the Eastern District of Texas is dedicated to pursuing fraudsters and ensuring they do not benefit from their crimes.”
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah was indicted by a federal grand jury on June 18, 2020, and pleaded guilty to wire fraud today. Under federal statutes, Shah 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.
Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Acting Assistant Attorney General Nicholas L. McQuaid 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); Acting Special Agent in Charge Mark Pearson 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 are investigating the case.
Assistant U.S. Attorneys Frank Coan and Robert Wells of the Eastern District of Texas and Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
A Texas man pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable 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, 44, of Murphy, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah pleaded guilty to one count of wire fraud. He is scheduled to be sentenced at a future date and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – OIG (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); Acting Special Agent in Charge Mark Pearson 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 are investigating the case.
Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Robert Wells of the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Red River Army Depot Officials Charged in Bribery and Conspiracy SchemeRead the Press Release
TEXARKANA, Texas – Four individuals, including two Red River Army Depot (RRAD) officials, have been charged with federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jimmy Scarbrough, 69, of Hooks, was an RRAD supervisor and is charged by criminal complaint with conspiracy to defraud the United States and 36 counts of bribery. Scarbrough made an initial appearance before U.S. Magistrate Judge Caroline Craven today.
Jeffrey Harrison, 43, of Texarkana, and Justin Bishop, 50, of Clarksville, both RRAD vendors, are pleading guilty today to bribery charges.
Devin McEwin, 41, of Avery, an RRAD official, has also been charged with bribery and is scheduled to plead guilty.
“The Red River Army Depot is a key component of our nation’s defense infrastructure and is the lifeblood of the surrounding community,” said Acting U.S. Attorney Nicholas J. Ganjei. “Scarbrough, Harrison, Bishop, McEwin, and others exploited the public trust in order to line their own pockets, and undermined the warfighting mission of the Depot in the process.”
“These guilty pleas are a direct reflection of the tenacity and teamwork by MPFU special agents and our law enforcement partners,” said SA Ray Rayos, Special Agent-in-Charge of the Southwest Fraud Field Office, Major Procurement Fraud Unit (MPFU), U.S. Army CID. “Bribery and other fraud schemes have no place in the government contracting system and those who attempt it will be caught.”
“Today’s announcement highlights a successful collaboration among partner agencies as we collectively hold these defendants accountable for allegedly creating a fraudulent and deceptive scheme against the government and the people of the United States. We remain committed to the aggressive pursuit of those who selfishly leverage government programs for their own personal gain,” said Dallas FBI Special Agent in Charge, Matthew J. DeSarno.
According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough is alleged to have directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program. In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price. By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process. Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors. However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.
Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison. Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols. Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations. In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.
Scarbrough is not the only official at RRAD who accepted bribes. Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck.
Under federal statutes, the defendants each face up to 15 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Criminal complaints, informations and indictments are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Denton County Woman Sentenced for Student Loan FraudRead the Press Release
PLANO, Texas – A Denton, Texas, woman has been sentenced for student loan fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Tiffany O’Neal, 47, pleaded guilty on Nov. 19, 2020, to student loan fraud and was sentenced to five years of federal probation and ordered to pay restitution in the amount of $234,113.00 by U.S. District Judge Sean D. Jordan on May 17, 2021.
“Funds earmarked for student financial aid provide critical educational and professional opportunities for students,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas is committed to ensuring that those funds serve that purpose. However, when those funds are diverted or stolen, this case shows that EDTX, along with its law enforcement partners, will take action and hold those responsible.”
“Ms. O’Neal knowingly and willfully abused her position of trust for personal gain and in doing so, defrauded the school, the Federal student aid program, and America’s taxpayers. She’ll now be held accountable for her criminal actions,” said Edd Cole, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s (OIG) Southwestern Regional Office. “OIG Special Agents will continue to work with our law enforcement partners to aggressively pursue those who seek to enrich themselves with Federal education funds. America’s students, their families, and taxpayers deserve nothing less.”
According to court documents, between 2012 and 2017, O'Neal was both a student at the University of North Texas as well as an employee in their financial aid office. In this role, she had the ability to approve and reject financial aid awards and grants. During this time, she submitted fictitious expenses relating to her husband's financial aid application, approved financial aid awards to her husband to which he was not otherwise entitled, and awarded monetary grants to her husband that he should not have received. In addition, she fraudulently obtained additional funds in her own financial aid packages. In sum, she misappropriated approximately $230,000 in funds that were earmarked for federal financial aid grants.
This case was investigated by the Department of Education Office of Inspector General and prosecuted by the Plano office of the United States Attorney’s Office for the Eastern District of Texas.
North Texas Woman Sentenced for Tax EvasionRead the Press Release
PLANO, Texas – A Fannin County, Texas, woman has been sentenced to federal prison for tax evasion in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Chelsea Jolynn Tucker, 45, pleaded guilty to tax evasion on Nov. 4, 2020, and was sentenced to 14 months and 23 days in federal prison today by U.S. District Judge Sean D. Jordan today. Tucker was also ordered to pay restitution in the amount of $779,664.00.
“Tax-related offenses often go hand-in-hand with other financial crimes, because the perpetrator needs to conceal their ill-gotten gains from government scrutiny,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s sentence and restitution award will help to make the American taxpayer whole.”
According to public court records, from approximately 1997 to 2016, Tucker was employed by a staffing and contract services company located in Addison, Texas. In her role with the company, Tucker had various financial responsibilities, including administering payroll, preparing W-2 Forms, making employment tax deposits, paying business expenses, and monitoring the company’s tax obligations using QuickBooks and TaxGuard.
Between approximately 2012 and 2017, Tucker knowingly and willfully misappropriated and embezzled funds from the company by paying herself as both an employee and a vendor, issuing herself unauthorized bonuses and fraudulent expense reimbursements, using a corporate credit card for personal purchases, and using company funds to pay personal credit cards.
Tucker also willfully attempted to evade her income tax obligations by preparing false and fraudulent W-2 Forms, which substantially underreported the income owed to the Internal Revenue Service. In addition, Tucker failed to pay the company’s employment taxes, which she had a duty to both truthfully account for and pay. As a result of Tucker’s criminal conduct, the amount still owed to the Internal Revenue Service totals approximately $779,664.
This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys in the Plano office.
###
Final Defendants Sentenced in Red River County Methamphetamine Trafficking ConspiracyRead the Press Release
TEXARKANA, Texas – The final two defendants in a Clarksville methamphetamine conspiracy have been sentenced to federal prison in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
According to court documents, Jacory Dewayne Coulter, 35, pleaded guilty on Oct. 5, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 102 months in federal prison on May 13, 2021, by U.S. District Judge Robert W. Schroeder III.
Brandon Charles Nickerson, 42, pleaded guilty on July 1, 2020, to the same charges and was sentenced to 70 months in federal prison on April 21, 2021 by Judge Schroeder.
“Today’s sentences close the book on a methamphetamine trafficking operation, and makes the Red River County area a safer place to live and work,” said Acting U.S. Attorney Nicholas J. Ganjei. “This operation also showcases how effective a joint federal, state, and local law enforcement operation can be. Expect to see similar operations in the near future.”
The U.S. Attorney’s Office will never stop fighting against the scourge of methamphetamine distribution that destroys so many lives,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are grateful to our law enforcement partners who have also worked tirelessly to identify and disrupt these dangerous organizations.”
Operation Big Red is a multiyear methamphetamine trafficking investigation in Red River County that has led to federal convictions of 11 men. From at least January 2016, Counter and Nickerson were part of that conspiracy which distributed large amounts of methamphetamine in the Clarksville area. Previously, Judge Schroeder sentenced other Mavin Earl Baty to 92 months in prison; Gregory Lamont Dillard to 102 months; Victor Gonzales to 63 months; Miguel Angel Hernandez to 78 months; Neopholis Dontray Scales to 70 months; Brian Bradley Beers to 70 months; Kevin Wayne Guess to 57 months; James Wayne Johnson to 145 months; and Billy Carl Webb, Jr., to 120 months in prison.
The Texas Department of Public Safety-CID and the Red River County Sheriff’s Office investigated the case. Assistant U.S. Attorney Jonathan R. Hornok prosecuted the case.
###
Frisco Attorney Sentenced for Defrauding ClientRead the Press Release
TEXARKARNA, Texas - A Frisco lawyer has been sentenced to federal prison in connection with a wire fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
David A. Krueger, 52, pleaded guilty on Jan. 5, 2021, to federal wire fraud violations and was sentenced to 18 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. He was also ordered to pay $350,000 in victim restitution.
“As an attorney in Texas, this defendant took an oath to act honestly and with integrity. He then violated that oath by scamming his client out of hundreds of thousands of dollars,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas will continue to hold accountable those who exploit positions of trust to defraud others.”
According to information presented in court, from February 2014 to September 2015, Krueger, an attorney licensed to practice in the state of Texas, devised a scheme to defraud current and former clients of his law practice by soliciting them to invest in and fund his outside business ventures. Krueger represented to his clients that they would be receive guaranteed annual returns at rates of approximately ten percent of their investments. To facilitate the scheme, Krueger persuaded a client to transfer $400,000 the client received from a legal settlement to Krueger himself for the purpose of funding a misting fan business. Krueger used those investment funds not only for this misting fan business, but also other unrelated business ventures, as well as for his own personal benefit. Krueger was not licensed to sell securities. Krueger was indicted on federal charges on August 21, 2019.
This case was investigated by the Federal Bureau of Investigations – Texarkana Resident Agency and prosecuted by Assistant U.S. Attorneys Frank Coan and Jonathan Hornok.
###
The U.S. Department of Justice and EDTX Recognize Federal, State, Local, and Tribal Law Enforcement During National Police WeekRead the Press Release
BEAUMONT, Texas - In honor of National Police Week, Acting U.S. Attorney Nicholas J. Ganjei recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Law enforcement officers put their lives on the line each and every day to protect the safety and wellbeing of their fellow citizens,” said Acting U.S. Attorney Nicholas J. Ganjei. “Though the hours can be long, and the job fraught with peril, many brave men and women put on the badge and holster every morning to make our communities a safe place to live and work. To these heroes—and especially to those who made the ultimate sacrifice in the line of duty—you have our deepest respect. A grateful nation thanks you.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Eastern District of Texas, four officers died in the line of duty. A fifth officer who died in 1937 will also be included in this year’s induction.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 295 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be live-streamed to the public at 8:00 p.m. EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
###
Member of White Supremacist Gang Pleads Guilty to Violent Assault and Conspiracy to Sell FirearmsRead the Press Release
A member of the Aryan Circle (AC) pleaded guilty Thursday to his role in an October 2016 violent assault, as well as conspiring to sell firearms to a convicted felon. Another individual pleaded guilty on April 19, to conspiring with members of the AC to sell methamphetamine.
Rodney Shane Holt, aka “Turbo,” 48, of Tyler, Texas, pleaded guilty to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Holt committed the assault as part of his membership in the AC, a gang that operates in Texas and other states throughout the country. According to court documents, Holt planned and participated in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Holt and other AC members carried out the attack in order to “X,” or remove the AC member from the gang, because joining another organization violated the AC’s rules. Holt also sold high caliber firearms to convicted felons.
Eulalio Torres-Cadenas, aka “Yayo,” 43, of Houston, Texas, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine. According to court documents, Torres-Cadenas supplied an AC member with multiple kilograms of methamphetamine in 2016, in the area of Houston, Texas. The AC member then went on to distribute the methamphetamine to buyers in Louisiana, including other AC members. The drug conspiracy that Torres-Cadenas pleaded to was uncovered as part of Operation Noble Virtue, an investigation that has focused on the criminal conduct of the AC’s leadership.
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Sentencing dates have not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Holt faces maximum sentences of 20 years in prison for the assault in aid of racketeering and five years in prison for the firearms conspiracy, while Torres-Cadenas faces a mandatory minimum sentence of 10 years in prison, and a maximum sentence of life in prison.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.
This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; 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) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorneys Bethany Lipman, Rebecca Dunnan and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Two Texas Women Sentenced to Federal Prison for Involvement in Transnational Elder Fraud SchemeRead the Press Release
TYLER, Texas – Two Texas women have each been sentenced to 24 months in federal prison for conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Pamela Sue Hannan, 68, of Sherman, and Pamela Sue Jennings, 69, of Houston, pleaded guilty on August 6, 2020, to conspiring with foreign co-conspirators to operate an unlicensed money transmitting business and were sentenced to 24 months in federal prison by U.S. District Judge J. Campbell Barker today.
“Today’s sentences send a clear message that schemes targeting elderly victims will not be tolerated, and those facilitating such schemes will be held accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “By acting as domestic money transmitters for foreign co-conspirators, these defendants played fundamental roles that allowed foreign actors to reach from overseas to target elderly victims in communities across the United States. Bringing the remaining perpetrators to justice remains a priority for this office.”
According to information presented in court, over the course of several years, Hannan and Jennings received funds from romance scam victims and from victims of other fraudulent schemes on behalf of their co-conspirators, who were based outside of the United States. In order to facilitate the scheme, Hannan and Jennings opened bank accounts in the names of businesses which purported to provide legitimate services. In reality, Hannan and Jennings used these businesses as fronts to facilitate the money transmitting scheme. Together, Hannan and Jennings received more than $4.1 million from victims of the schemes. Hannan and Jennings transferred the majority of the funds they received to their co-conspirators’ foreign bank accounts.
Hannan and Jennings were indicted by a federal grand jury on Oct. 16, 2019.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. In March of last year, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August of 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organization, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
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 from 10:00 a.m. to 6:00 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations with assistance from the U.S. Postal Inspection Service, the Sherman Police Department, and the Appleton (Wisconsin) Police Department. It is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
###
New Yorker Sentenced in Eastern District of Texas for Nationwide Identity Theft and Fraud SchemeRead the Press Release
SHERMAN, Texas - A Huntington, New York, man has been sentenced to federal prison in connection with an identity theft scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Daniel Brian Rink, 37, pleaded guilty on June 24, 2020, to conspiracy to commit bank fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Amos L. Mazzant, III. He was also ordered to pay $230,783 in victim restitution.
“Identify theft is not a victimless crime. Indeed, it often causes great hardship to its victims, and could lead to years of trying to repair one’s finances, reputation, and credit,” said Acting U.S. Attorney Nicholas J. Ganjei. “This sentence sends a clear message that the fraudulent use of victims’ identities will be aggressively prosecuted in the EDTX.”
According to information presented in court, Dallas-Fort Worth Airport police officers discovered drugs in Rink’s luggage on Oct. 7, 2018. Police also found fraudulent identification cards that contained Rink’s photograph as well as credit cards and Sam’s Club membership cards that matched the names on the identification cards. Further investigation revealed Rink had applied for credit accounts using the names on the fraudulent identification cards. He then used those cards to purchase various items, including computers, iPhones, and prepaid gift cards.
On Nov. 15, 2018, Rink rented a 2018 Audi Q3 from Enterprise Rent-a-Car by using one victim’s Illinois identification card and paying for the rental with another victim’s credit card. A few days later, the card issuer notified the Port of Portland, Oregon, Police Department that the credit card had been used to rent a hotel room at the Portland Airport. Investigators located the Audi in the hotel parking lot and Rink inside the hotel. Rink was in possession of the false Illinois identification, another fictitious Illinois identification card that contained his photograph, victim credit cards, and gift cards. His hotel room contained more fictitious identification cards with his photograph, fraudulent credit cards, cellular phones, and a gaming system. Text and picture message exchanges on Rink’s phone included victims’ personal and credit information; discussions about the credit limit amounts they opened in victims’ names in Oregon and Colorado; and sharing of victims’ personal identification used to open and use credit in the victims’ names.
In addition, the investigation revealed that Rink’s co-conspirators used device-making equipment to manufacture fraudulent state identification documents and credit cards, provided other conspirators with fraudulent documents, and directed those conspirators to different cities throughout the United States, including Frisco and Plano, Texas, to open instant credit accounts to purchase merchandise. After purchasing the items, the conspirators would ship the illegally obtained goods to New York, where they were resold for cash. Conspirators used fraudulently obtained credit cards to rent vehicles to travel during their commission of the offense.
In all, Rink and his associates caused a loss of more than $1 million to various lenders and individual victims. On Dec. 11, 2019, a federal grand jury in the Eastern District of Texas, returned a 35-count indictment against Rink and 17 others.
This case was investigated by Homeland Security Investigations, DFW Airport Police Department, and the Port of Portland, Oregon Police Department, and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
###
Investigation into White Supremacists and Drug Traffickers Yields Guilty PleasRead the Press Release
TEXAS – One member of the Aryan Circle (AC) pleaded guilty today to his role in a violent assault of a man in October 2016, as well as conspiring to sell firearms to a convicted felon, and a Mexican national pleaded guilty on Monday, April 19, to conspiring with members of the AC and others to sell methamphetamine, announced Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas and Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division today.
Rodney Shane Holt, aka “Turbo,” 48, of Tyler, Texas pleaded guilty to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Holt committed the assault as part of his membership in the AC, a gang that operates in Texas and other states throughout the country. Eulalio Torres-Cadenas, aka “Yayo,” 43, of Mexico, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine.
“Today’s pleas demonstrate the unfortunate truth that violence and the drug trade go hand-in-hand,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Department of Justice and its state and local partners will continue to take a hard line against organized criminal gangs and their enablers.”
According to court documents, Torres-Cadenas supplied an Aryan Circle member with between 1.5 and 5 kilograms of methamphetamine over a number of occasions in 2016, in the area of Houston, Texas. The AC member went on to distribute the methamphetamine to buyers in Louisiana, including other AC members. The drug conspiracy that Torres-Cadenas pleaded to was uncovered as part of Operation Noble Virtue, an investigation into the AC that has targeted AC leadership.
Holt’s offense conduct included planning and participating in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Holt and other AC members carried out the attack in order to “X,” or remove the AC member from the gang, because it violated the AC’s rules to join another organization. Holt’s offense conduct also included several sales of high caliber firearms to convicted felons.
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Sentencing dates have not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; 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) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorneys Bethany Lipman, Rebecca Dunnan, and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Jefferson County Woman Sentenced for Distributing MethamphetamineRead the Press Release
BEAUMONT, Texas - A Nederland woman 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.
Keri Colleen Beck, 49, pleaded guilty on Jan. 27, 2021, to possession with intent to distribute methamphetamine and was sentenced to 151 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Jan. 19, 2020, the Jefferson County Narcotics Task Force executed a search warrant at Beck’s Nederland residence and found approximately one pound of methamphetamine. Beck also possessed an assortment of drug trafficking paraphernalia including resealable bags and digital scales. Beck was indicted by a federal grand jury on Nov. 4, 2020 and charged with drug trafficking violations.
“Cases like this that partner local and federal law enforcement resources significantly interrupt the destructive flow of methamphetamine into our local communities,” said Acting U.S. Attorney Nicholas J. Ganjei.
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.
###
Four North Texans Sentenced for Sex Trafficking OperationRead the Press Release
SHERMAN, Texas – A Plano man has been sentenced for crimes involving firearms and sex offenses in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Wayne Edward Bearden, 40, pleaded guilty on Dec. 4, 2019, to being a felon in possession of firearms and to coercion, enticement and aiding and abetting, and was sentenced to a total term of imprisonment of 180 months by U.S. District Judge Amos L. Mazzant today.
“Today’s sentence takes a dangerous man off the street, and will bring a measure of closure and comfort to those he victimized,” said Acting U.S. Attorney Nicholas J. Ganjei. “While this case began as a firearms investigation, due the excellent work of our federal and local law enforcement partners we were able to uncover – and dismantle – a commercial sex trafficking operation.”
“We will work relentlessly with all of our committed law enforcement partners to identify and rescue victims of human trafficking, and bring their exploiters and consumers to justice,” said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “This sentence may successfully conclude this particular operation but HSI’s efforts to eradicate sex trafficking continues.”
According to information presented in court, in August 2018, Bearden called the Plano Police Department after individuals robbed his Plano home. Responding officers observed a number of firearms in the home, and a subsequent investigation revealed that Bearden was a previously convicted felon, prohibited from possessing firearms under federal law. During the course of the investigation, Plano detectives and special agents with Homeland Security Investigations determined that Bearden was the organizer and leader of a sex trafficking operation. Specifically, Bearden employed a “booker” who coordinated the ads for sexual services, websites, and appointments for commercial sex appointments, and used other women in managerial roles, transporting the prostituted women to locations around the United States, obtaining hotel rooms, and managing cash payments. As the leader of the operation, Bearden controlled the acts the women performed, where they worked, how often they worked, how much money they made, with Bearden controlling the proceeds the prostituted women earned. As part of his plea, Bearden admitted to persuading, inducing, enticing, or coercing women to travel to other states to engage in illegal prostitution.
After his release from prison, Bearden will serve a total term of supervised release of five years. In addition to Bearden, other members of the operation were previously sentenced by Judge Mazzant for conspiracy to travel or cause another to travel in interstate commerce and to use facilities of interstate commerce to promote, manage, establish, carry on and facilitate unlawful activity, including:
- Ashlynn Clark – sentenced on July 2, 2020 to five months in federal prison, five months home detention, and one year of supervised release;
- Shelby Holzen – sentenced on June 4, 2020 to three years of probation;
- Ashley Judith Schafer – sentenced on June 3, 2020 to six months in federal prison, six months home detention, and two years of supervised release.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by Homeland Security Investigations – Dallas, the Plano Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Marisa Miller and Tracey Batson.
###
Denton County Man Sentenced for Production of Child PornographyRead the Press Release
SHERMAN, Texas – A Flower Mound man has been sentenced for the sexual exploitation of a child in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jermaine Lanie Codrington, 39, was convicted by a jury on Sep. 4, 2020, of production of child pornography. Codrington was sentenced to 30 years in federal prison by U.S. District Judge Amos L. Mazzant on May 4, 2021. Upon his release from custody, Codrington will be on supervised release for 10 years and will be required to register as a sex offender.
“The exploitation of a child is among one of the worst offenses a person can commit, and the sentence handed down in this case reflects that,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas will continue to work with our federal, state, and local partners to punish those that engage in such heinous acts, and hopefully deter those that might be inclined to similarly engage in such acts of exploitation.”
“The sexual exploitation of a child is an inexcusable and unconscionable crime, often causing life-long harm to those victimized, said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “The lengthy sentence imposed will not eliminate the trauma endured by the victim, but it does highlight the seriousness of the sexual offense perpetrated by the abuser.”
According to information presented in court, in April 2019, a minor child reported sexual abuse by Codrington. Law enforcement investigating the matter discovered images of child pornography on Codrington’s cellular phone. Codrington testified at trial and admitted to taking the photographs, stating that he had done so at the child’s request, to teach the child about their anatomy. Other evidence introduced at trial detailed the child’s interactions with Codrington and established that the child had no contemporaneous knowledge of the photos. The district court determined that an upward variance from the U.S. Sentencing Guidelines was warranted and sentenced Codrington to a term of imprisonment of 30 years.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by members of Homeland Security Investigations – Dallas and the Flower Mound Police Department. The case was prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.
Mexican National Sentenced for Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A Mexican National has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ramiro Ortiz Perez, 35, pleaded guilty on Jan. 7, 2021, to being a prohibited person in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy Kernodle.
“This investigation by Homeland Security Investigations is a reminder that possession of firearms by those not legally permitted to possess them, especially in connection with illegal narcotics trafficking, is a direct threat to the safety of our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office, together with HSI, will continue to vigorously uphold the law.”
According to information presented in court, on July 3, 2020, Ortiz Perez possessed a pistol in Tyler. At the time he possessed the pistol, he was illegally and unlawfully in the United States, having entered, and remained in, the United States without proper authority. Ortiz Perez knew that he was in the United States illegally and admitted that he possessed the pistol in furtherance of his drug trafficking activities.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
###
Convicted Felon “Dollar Bill” Sentenced for Shooting Drug Customer Twice over Drug DebtRead the Press Release
BEAUMONT, Texas – A Beaumont 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.
Rustin Chase McKinsey, also known as “Dollar Bill,” 35, pleaded guilty on Jan. 6, 2021, to discharging a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. McKinsey was sentenced to 15 years in federal prison today by U.S. District Judge Marcia A. Crone.
“Felons who possess firearms, and certainly those who use firearms in furtherance of drug trafficking or violent crimes, are among the most dangerous members of our society,” said Acting U.S. Attorney Nicholas Ganjei. “These criminals will learn the hard way that violent drug trafficking will be met with swift and decisive action by law enforcement.”
According to information presented in court, on Sep. 4, 2020, law enforcement officers responded to a residence on Taylor Street in Beaumont, Texas in reference to a shooting. Upon arrival, officers discovered the victim laying on the front porch of the residence with a towel wrapped around a gunshot wound to his leg. The victim’s roommate told officers he awoke to an argument between McKinsey and the victim, and he observed McKinsey fire two shots at the victim before fleeing the scene. The victim stated that he owed money to McKinsey for methamphetamine that McKinsey sold him.
On Oct. 9, 2020, law enforcement officers responded again to the same residence in reference to another shooting. Upon arrival, officers discovered the same victim suffering from a gunshot wound to his back. A single spent .22 caliber shell casing was discovered at the scene. The victim stated that McKinsey shot him again over the same drug debt that was owed. Officers then immediately headed to McKinsey’s residence, ultimately finding McKinsey hiding in a car across the street. McKinsey admitted to officers that he had shot the victim on both occasions over a drug debt.
McKinsey is a convicted felon having previously been convicted of possession of a controlled substance in Jefferson County, Texas, on Dec. 18, 2017. As a convicted felon, McKinsey is prohibited by federal law of owning or possessing a firearm or ammunition.
This case is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Matthew Quinn.
###
Central Texas Lawyer Sentenced for Swindling Colombian Drug Trafficking ClientsRead the Press Release
SHERMAN, Texas – A Central Texas criminal defense lawyer was sentenced to federal prison today for an international fraud scheme involving his Colombian cocaine trafficking clients, announced Acting U.S. Attorney Nicholas J. Ganjei.
James Morris Balagia, 65, of Manor, Texas was found guilty by a jury on Oct. 29, 2019, of five federal charges and was sentenced to 188 months in federal prison today by U.S. District Judge Amos Mazzant. Balagia was also ordered to forfeit his law office building in Manor, Texas, and a money judgment of $1.5 million.
According to information presented in court, Balagia, also known as Jamie Balagia, also known as “The DWI Dude,” had a law practice with offices in San Antonio and Manor, specializing in defending clients charged with violations such as driving while intoxicated and drug possession. In 2014, Balagia conspired with Florida private investigator Chuck Morgan, and Colombian attorney, Bibiana Correa Perea to swindle Colombian drug traffickers under the guise of bribing officials in the United Sates. During meetings in Colombia and in Collin County, Texas, the group represented that in exchange for inflated “attorney fees,” they were in contact with government officials in the United States who would accept bribes resulting in either the dismissal of their criminal charges or significant reductions in their U.S. federal prison sentences. In reality, there were no bribes or government officials.
The Office of Foreign Assets and Control (OFAC) had previously designated Balagia’s Colombian clients as “Specially Designated Narcotics Traffickers.” These individuals were considered some of the biggest drug traffickers in the world. As such, they were on an OFAC list, essentially freezing their assets and prohibiting U.S. persons from engaging in any financial transactions or dealings with them unless they had received an OFAC license. In order to comply with federal requirements under the “Kingpin Act,” Balagia was advised to obtain an OFAC license on multiple occasions but failed to do so.
As part of the scheme, Balagia provided Colombian co-conspirators with his personal bank account number and routing number. Evidence at trial showed multiple deposits over several months into the account in amounts intended to avoid federal cash transaction reporting requirements. The cash deposits were made at bank counters across the United States by anonymous individuals with daily deposits totaling just under the $10,000 reporting threshold. Additionally, at least four bulk cash payments were made to Balagia in amounts ranging from approximately $70,000 to $120,000. Balagia admitted to driving from his San Antonio office to a mall parking lot in Katy, Texas, where he was given a shopping bag filled with bundles of cash from either an unknown individual, or an individual who identified himself only as “Coco.” In an attempt to conceal these payments, Balagia failed to report the payments as required by federal law.
Balagia was indicted by a federal grand jury on Dec. 15, 2016. Bibiana Correa Perea pleaded guilty and was sentenced to 84 months in federal prison on June 29, 2018. Chuck Morgan pleaded guilty and was sentenced to 72 months in federal prison on Mar. 8, 2018.
Balagia was found guilty following a two-week trial of conspiracy to commit money laundering; obstruction of justice, violation of the Kingpin Act; conspiracy to commit wire fraud; and conspiracy to obstruct justice.
“We live in a country with the greatest system of justice in the world,” said Acting U.S. Attorney Nicholas Ganjei. “That system, however, cannot function when officers of the court are corrupt. The evidence in this case demonstrated that Balagia had been shaking down his clients for years by claiming that he was able to purchase favorable deals from prosecutors and judges alike. The Department of Justice will defend our Justice system vigorously and will prosecute predatory lawyers like Balagia every single time they are discovered.”
“The FBI combats public corruption at all levels and will protect and defend the U.S. justice system from those who attempt to diminish its integrity,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Today’s sentence demonstrates that officials who misuse their influence for personal financial benefit will be held accountable.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys Heather H. Rattan and Jay Combs.
###
Tarrant County Man Convicted at Trial of Child Exploitation ViolationsRead the Press Release
SHERMAN, Texas – A Kennedale man was found guilty by a jury of federal child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Robert Allen Hall, 31, was found guilty of attempted coercion and enticement of a minor today by a jury following a three-day trial before U.S. District Judge Amos L. Mazzant, III.
“While sexual predators are actively looking for their child victims, we are also actively looking for those predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our law enforcement officers, federal agents, and prosecutors are dedicated to keeping the Eastern District of Texas safe from those who seek to destroy our greatest resource, our children.”
According to the court documents and testimony at trial, Hall reached out to and communicated with an individual he believed to be a 14-year-old child via a social media application. The two chatted between Feb 5, 2019 and May 21, 2019. These chats were sexually charged and contained graphic descriptions of the sex acts Hall wanted to perform on the minor child. On May 21, 2019, Hall traveled from Kennedale to a location in Collin County to meet the child.
A federal grand jury returned an indictment charging Hall with federal violations on June 12, 2019. Under federal statutes, Hall 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 part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Plano Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
###
Denton County Woman Sentenced for Bank FraudRead the Press Release
PLANO, Texas – A Pilot Point woman was sentenced today to 24 months in prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Kristine Irene Lynch, 44, pleaded guilty on Nov. 12, 2020 to bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Sean D. Jordan. As part of her sentence, Lynch was also ordered to pay restitution in the amount of $467,280.00.
“Schemes like this can cripple an institution,” said Acting U.S. Attorney Nicholas J. Ganjei. “One person’s greed can wreak havoc on countless others.”
According to the court documents, Lynch was employed at the North Texas Medical Center (NTMC) from 2006 until August 2017 as Comptroller. As Comptroller, she was able to print checks herself, or have checks printed on her behalf. Lynch devised a scheme to printing checks for personal use, or to have employees print them for her, drawn against the NTMC bank account. Lynch then voided the checks in the accounting system after they cleared the bank in order to disguise her scheme. Lynch spent the proceeds derived from the fraudulent checks for her own personal use. A later audit revealed that Lynch was responsible for a total of 113 fraudulent checks, resulting in a total loss of $467,280.00.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney William R. Tatum.
###
Henderson County Man Indicted for ArsonRead the Press Release
Alleged Arsonist Charged with Destroying Water Utility Pumping Stations that Serviced Hundreds of Athens Homes
TYLER, Texas - A federal grand jury in Tyler returned an indictment this week charging an Athens man with arson in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
According to court documents, Brandon Blake Neeley, 19, of Athens, was arrested on Oct. 5, 2020 as he attempted to leave the scene of a fire at the Dogwood Estates Water Company Pump No. 2 building. Four days earlier, on Oct. 1, 2020, another building belonging to Dogwood Estates that housed Pump No. 4, was also set ablaze. Dogwood Estates Water Company serves more than 400 Athens-area homes. After both Pump No. 2 and Pump No. 4 were destroyed, Dogwood was forced to use a backup pump not designed to bear the full load of customer demands. Customers have been asked to limit their water usage until the burned pumps can be repaired or replaced. The two fires caused more than $200,000 in damage.
“The destruction of the Dogwood Estates Pumps threatened water access for numerous Athens residents who rely on the pumping station to go about their daily lives,” said Acting U.S. Attorney Nicholas J. Ganjei. “Protection of our nation’s critical infrastructure from criminals, vandals, and saboteurs is a top priority for federal, state, and local law enforcement, and these charges demonstrate that.”
Neeley is charged with arson of property used in interstate commerce. If convicted, he faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson County Sheriff’s Office are investigating the case. Assistant U.S. Attorney Ryan Locker is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Cherokee County Man Sentenced for Distribution of MethamphetamineRead the Press Release
TYLER, Texas – A Jacksonville man was sentenced today to 78 months in federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Andres Gallegos, 38, pleaded guilty on Jan. 13, 2020, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 78 months in federal prison today by U.S. District Judge J. Campbell Barker.
According to the court documents, an investigation into drug trafficking in Smith and Cherokee Counties revealed in October 2018 Gallegos regularly sold methamphetamine from his residence in Jacksonville. Gallegos was indicted by a federal grand jury on Sep. 8, 2019, and charged with distributing methamphetamine on Oct. 16, 2018, Oct. 17, 2018, and again on Oct. 26, 2018.
“Over time, cases like this can make a big difference in our local communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Through a sustained, focused effort by federal, state, and local law enforcement, we can make our cities and town safer and drug-free.”
This case was investigated by the Smith County Sheriff’s Department, the Cherokee County Sheriff’s Department, the Jacksonville Police Department, and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Allen H. Hurst.
###
Eastern District of Texas Commemorates the 40th Anniversary of National Crime Victims’ Rights WeekRead the Press Release
BEAUMONT, Texas – The U.S. Attorney’s Office for the Eastern District of Texas joins communities nationwide in commemorating the 40th anniversary of National Crime Victims’ Rights Week (NCVRW) from April 18–24, 2021. This year’s theme, Support Victims. Build Trust. Engage Communities, emphasizes the importance of leveraging community support to help victims of crime.
“The faces of crime victims are those of our families, friends, neighbors, and community members,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas is committed to upholding victims’ rights as we work to protect the safety of our communities and pursue equal justice under the law. Now is the time to redouble our efforts so that fewer Americans become victims of crime.”
NCVRW is a time to renew a commitment to serving victims of crime, acknowledge achievements made in the victim services field, and remember crime victims and survivors. For more information about this year’s NCVRW and how to assist victims in your community, please visit the NCVRW website (https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview).
The Justice Department’s Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of NCVRW, during which victim advocacy organizations, community groups, and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. For additional information about visit OVC’s efforts, please visit www.ovc.ojp.gov.
Former Health Care Staffing Company Executives Charged in Superseding Indictment with Wage Fixing and ObstructionRead the Press Release
Note: Click to view superseding indictment.
SHERMAN, Texas – A federal grand jury in Sherman, Texas, returned a superseding indictment charging two Texas men with engaging in wage fixing and obstructing a federal investigation, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Neeraj Jindal, the former owner of a Texas-based therapist staffing company, and John Rodgers, a physical therapist and the clinical director of Jindal’s company, are charged with conspiring to fix prices, in violation of the Sherman Act, and with conspiring to obstruct a Federal Trade Commission (FTC) investigation. Both defendants are also charged with obstruction of an FTC investigation.
According to the four-count superseding indictment, in 2017, Jindal, Rodgers, and their co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants in North Texas. Their company, in turn, paid the agreed lower rates for several months after entering into the agreement.
Jindal and Rodgers also conspired to obstruct an FTC investigation and to obstruct proceedings occurring before the FTC. In furtherance of the conspiracy, Jindal and Rodgers made false and misleading statements and withheld and concealed information during the FTC’s investigation to determine whether their company or other therapist staffing companies violated the Federal Trade Commission Act.
The superseding indictment follows an indictment returned against Jindal in December 2020 for violating the Sherman Act and obstructing an FTC investigation.
“Wage-fixing agreements are, at their core, an attempt to artificially rig the labor market to depress wages and deprive workers of competitive salaries and benefits,” said Acting U.S. Attorney Nicholas J. Ganjei. “The present charges demonstrate that the Department of Justice and its partner agencies will not stand by and allow the exploitation of American workers and the manipulation of the marketplace.”
“The charges announced today underscore the Antitrust Division’s ongoing commitment to enforcing antitrust laws, particularly when the victims are American workers who deserve the benefits of competitive wages, mobility, and competition among employers for their services,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department's Antitrust Division. “This prosecution also demonstrates how seriously we take our obligation to protect the integrity of investigations into anticompetitive conduct, whether those investigations are conducted by the Department of Justice or another agency.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged conspiracy to commit obstruction and obstruction offenses carry statutory maximum penalties of five years imprisonment and a $250,000 fine.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
This case is being investigated by the Federal Bureau of Investigation’s International Corruption Unit and prosecuted by the Antitrust Division’s Washington Criminal I and II Sections with the assistance of United States Attorney’s Office for the Eastern District of Texas.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
###
Baytown Man Guilty of Cocaine TraffickingRead the Press Release
BEAUMONT, Texas – A Baytown, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Fernando Salcido, 46, pleaded guilty to conspiracy to possess with intent to distribute cocaine today before U.S. Magistrate Judge Keith F. Giblin.
“The Eastern District of Texas is committed to attacking drug trafficking organizations at every level,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will aggressively investigate and prosecute those who would try to harm our communities.”
According to information presented in court, from August 2018 through October 2019, Salcido was a member of a cocaine trafficking and money laundering operation. The investigation included the seizure of a 12-kilogram shipment of cocaine being sent to Salcido within the false compartments of a vehicle. Law enforcement also seized $54,100 in currency from a courier who had been transporting the proceeds at Salcido’s direction.
A federal grand jury returned an indictment charging Salido on Oct. 7, 2020. Under federal statutes, Salido 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 investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michael Anderson.
Florida Drug Traffickers Convicted for Large-Scale Cocaine OperationRead the Press Release
PLANO, Texas – A jury in Plano, Texas has convicted two Florida men of drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Omar Daniel Garcia-Agosto and Steven Thomas Mathis were found guilty by a jury for conspiracy to possess with intent to distribute cocaine following a week-long trial before U.S. District Judge Sean Jordan.
“Today’s guilty verdict sends a clear message to drug traffickers,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District is dedicated to dismantling their organizations—from top to bottom—and disrupting the flow of illegal drugs through the State of Texas. We appreciate the hard work of the DEA as well as our state and local partners in putting this case together.”
According to evidence presented in court, from at least January 2019, and continuing until their arrests in December 2019, Garcia-Agosto, 46, of Deltona, FL, and Mathis, 34, of Orlando, FL, were involved in a drug trafficking operation that was responsible for distributing hundreds of kilograms of cocaine through the United States, including the North Texas area. Supplied by members of the Cartel Del Noreste in Mexico, the cocaine was sent to Laredo, Dallas, and Houston, Texas. From there, couriers transported the multi-kilogram shipments by car to Florida and locations in New York. The defendants then purchased and distributed cocaine throughout the United States. The investigation included the seizure of approximately 30 kilograms of cocaine and more than $300,000 in currency.
Following their conviction at trial, each defendant faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration, the Rockwall Police Department, the Mesquite Police Department, Lewisville Police Department, the Collin County Sheriff’s Office and the North Texas Criminal Interdiction Unit. The case was prosecuted by Assistant United States Attorneys Ernest Gonzalez and Colleen Bloss and Special Assistant United States Attorney Bethany R. Pickett.
###
Van Zandt County Man Sentenced for Receiving Child PornographyRead the Press Release
TYLER Texas – A Wills Point, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
James Joseph Veeser, 59, pleaded guilty on Sep. 20, 2020, to receipt of child pornography and was sentenced to 97 months in federal prison by U.S. District Judge J. Campbell Barker today. Upon release from prison, Veeser will be required to register as a sex offender.
“Sexual exploitation of children is a scourge that the U.S. Attorney's Office has set as a high priority for investigation and prosecution,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who receive these detestable images and videos drive the demand for them - and, hence, should face criminal liability for that conduct.”
According to information presented in court, on Jan. 8, 2019, law enforcement authorities executed a search warrant at Veeser’s residence in Van Zandt County, Texas, and recovered computer equipment. A forensic examination of the computer equipment revealed visual depictions of minors engaged in sexually explicit conduct. The videos and photos had been downloaded between Jan. 25, 2016 and Jan. 8, 2019.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and the Longview Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
###