Eastern District of Texas
Press releases recorded for this federal judicial district.
Four Members of East Texas Methamphetamine and Firearms Trafficking Ring SentencedRead the Press Release
TYLER, Texas – A husband and wife, along with two other co-conspirators in a methamphetamine and gun trafficking ring, were sentenced to federal prison today, announced Acting U.S. Attorney Nicholas J. Ganjei.
Amanda Rae Williams, 32, of Carthage, Texas, and Illona Annette Amburn, 41, of Longview, Texas pleaded guilty on August 4, 2020 to conspiracy to distribute methamphetamine. They were both sentenced to 120 months in federal prison today. Marvin Robert Williams, 38, also of Carthage, Texas, pleaded guilty on Sep. 22, 2020, to use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Today, he was sentenced to 84 months in federal prison. Larry Demontrie Mock, a/k/a “Boogati,” 39, of Houston, pleaded guilty on Dec. 7, 2020 to conspiracy to distribute methamphetamine and was sentenced to 151 months in federal prison today.
The sentencing hearings were conducted before U.S. District Judge J. Campbell Barker. Judge Barker also ordered each defendant to pay forfeiture in the amount of $5,000.00, which represents proceeds derived from their participation in the criminal conspiracy.
“The citizens of East Texas will not tolerate those who pump poison into our communities and traffic firearms in the process,” said Acting U.S. Attorney Nicholas J. Ganjei. “The sentences imposed on the Williams, Mock, and Amburn organization send a strong message to those who would try to profit from the misery of methamphetamine addiction or the violence that comes with underground firearm trafficking. We will continue to investigate and prosecute the most dangerous members of our community, such as these individuals.”
According to court documents and information provided in court, beginning in April 2018, Amburn and Mock began brokering sales of methamphetamine and firearms that were being supplied by Amanda and Marvin Williams and others. During the conspiracy, Amanda and Marvin Williams, Mock, and Amburn sold at least 150 grams of actual methamphetamine and at least 13 firearms during more than 10 separate transactions. Marvin Williams, Mock, and Amburn are previously convicted felons who could not lawfully possess firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the Panola County Sheriff's Office and prosecuted by Assistant U.S. Attorney Ryan Locker.
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Wood County Woman Guilty of Stealing Stimulus PaymentRead the Press Release
MARSHALL, Texas – A Hawkins, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Brianna Clarisse Banks, 24, pleaded guilty to theft of government money today before U.S. Magistrate Judge Roy Payne.
“COVID has been financially devastating for many East Texans, especially for those who were already struggling,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thieves who take the federal funds intended for the financially vulnerable will be aggressively investigated and prosecuted in the Eastern District of Texas.”
According to information presented in court, in April of 2020, the U.S. Treasury issued an Economic Impact Payment (EIP) check in the amount of $1,200.00, made payable to an individual and mailed it to that individual’s post office box in Avinger, Texas. Banks stole the EIP check from the individual’s post office box and then used the victim’s name, social security number, and date of birth to open a checking account, but used Banks’ mailing address for the address on the account. Banks deposited the stolen EIP check into the fraudulently opened bank account and then withdrew the funds and spent them for her own personal benefit.
A federal grand jury returned an indictment against Banks on Jan. 20, 2021. Under federal statutes, Banks 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.
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. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
This case is being investigated by the U.S. Secret Service and the Cass County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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Upshur County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
MARSHALL, Texas – A Gilmer, Texas man has pleaded guilty to federal child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Michael Parker, 41, pleaded guilty to sexual exploitation of a child today before U.S. Magistrate Judge Roy Payne.
“The U.S. Attorney’s Office for the Eastern District of Texas places the highest priority on protecting our children from sexual predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those that seek to victimize minors should know that the EDTX will do whatever it takes to find them and bring them to justice for their heinous crimes.”
According to information presented in court, Parker hid a cellular phone in a bathroom for the purpose of capturing video recordings of a minor under the age of twelve. Parker positioned the phone to intentionally capture images and videos of the child. Parker then distributed the images and videos of the child to other individuals utilizing multiple online communications platforms, including e-mail, a cloud storage account, and a photo-sharing social media application.
A federal grand jury returned an indictment charging Parker with federal violations on Sep. 17, 2020. Under federal statutes, Parker faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by the Department of Homeland Security, the Texas Department of Public Safety, the Gilmer Police Department and the Longview Police Department and prosecuted by Assistant U.S. Attorney Jim Noble.
Harrison County Man Sentenced for Possessing Pipe BombRead the Press Release
MARSHALL, Texas – A Marshall, Texas man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Thomas Asa Harbarger, 57, pleaded guilty on Nov. 17, 2020, to possession of an unregistered destructive device and was sentenced to 72 months in federal prison today by U.S. District Judge Rodney Gilstrap.
“We are proud to work with our state and local partners to protect the public and ensure the safety of our community,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thanks to the diligence and quick thinking of the Texas State Trooper in this case, a dangerous criminal is off the street.”
According to information presented in court, on August 2, 2019, Harbarger was working on a disabled vehicle on the side of Highway 49 in Cass County, Texas when he was approached by a Texas State Trooper. During the incident the trooper learned that the vehicle had been reported stolen. When asked for identification, Harbarger told the trooper he did not have his identification and gave a fictitious name. Harbarger was subsequently detained, where it was determined that he had outstanding warrants. After Harbarger’s arrest, a homemade pipe bomb was found in the driver’s side door pocket of the vehicle. A later inspection of the device by the ATF, concluded that the pipe bomb was capable of causing injury or death to a person.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety, and the Atlanta, Texas Police Department. The case was prosecuted by Assistant U.S. Attorney Jim Noble.
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Sexual Predators Sentenced for Attempted Coercion and Enticement, Distribution of Child PornographyRead the Press Release
PLANO, Texas – Two men have been sentenced for crimes against children, including attempted coercion and enticement of a minor and distribution of child pornography, in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“The Eastern District of Texas, along with its law enforcement partners, is committed to locating and stopping the most dangerous predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Many of the events of these cases occurred during the height of the pandemic; however, these agents never stopped working to ensure the safety of the children in our community.”
“Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish once they occur,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are thankful for the collaboration of our partners in the Dallas Child Exploitation and Human Trafficking Task Force. It is because of this partnership that these two individuals are now facing lengthy sentences for their crimes.”
Christopher A. Sheffer, 58, of Media, Pennsylvania pleaded guilty to attempted coercion and enticement of a minor on Oct. 30, 2020 and was sentenced to 240 months in federal prison today by U.S. District Judge Sean D. Jordan. Judge Jordan also ordered Sheffer to pay a fine of $40,000 and a $5,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
According to information presented in court, in September 2019, Sheffer was the administrator of a group on a popular social media and communications application. As an administrator, he had the authority to determine who could join the group, which was devoted to incest and individuals who sexually abuse children. Participants in the group shared child pornography as well as their interest in molesting children. Sheffer privately communicated with an individual who he believed had access to a prepubescent child. Over the next few months, Sheffer expressed his interest in meeting the child for sex, mailed the child gifts, and sent the child private messages. On July 10, 2020, Sheffer flew from his home in Pennsylvania to Texas, where he then rented a car and drove to a specific location to meet the child and engage in sexual acts.
Judge Jordan also sentenced Thomas Earl Cardwell, Jr., 43, of Kemp, Texas, to 210 months in federal prison. Cardwell had previously pleaded guilty to distributing child pornography on Oct. 19, 2020.
According to information presented in court, Cardwell had been arrested for and convicted of online solicitation of a minor, sexual conduct in July 2019 in the 371st District Court of Tarrant County, Texas. He was released from the Texas Department of Criminal Justice in December 2019. Two months later, in February 2020, Cardwell began communicating with individuals on a social media application about his desire to perform oral sex on female children. As part of those communications, on March 6, 2020, Cardwell distributed four videos of child pornography, depicting prepubescent minors engaged in sexually explicit conduct.
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.
These cases were investigated by the Federal Bureau of Investigation – Dallas Child Exploitation and Human Trafficking Task Force and members of the Plano Police Department. These cases were prosecuted by Assistant U.S. Attorney Marisa Miller.
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North Texas Man Pleads Guilty to His Involvement in Multi-Million Dollar International Fraud SchemeRead the Press Release
SHERMAN, Texas – A Carrollton, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Moses Moreira, 42, pleaded guilty to conspiracy to commit wire fraud and wire fraud on April 1, 2021 before U.S. Magistrate Judge Christine A. Nowak.
“The identification and disruption of white collar fraud schemes, and the vigorous prosecution of the criminals responsible for them, is a top priority for the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “It is our mission to make internet communication and commerce as safe as possible and rooting out online fraud schemes—such as the one here—are an integral part of that process.”
According to court documents, Moreira worked with co-conspirators to devise and execute an online fraud scheme, which involved, among other things, fabricating false identities and stories to entice victims and ultimately lure money from them. Moreira and his co-conspirators used the fraudulently obtained funds for personal purchases and converted portions of these funds for use in international shipping. According to the indictment, at least 80 victims sent money to Moreira and his co-conspirators, with at least 60 victims sending money directly to Moreira or accounts controlled by Moreira. These victims have lost a combined total of approximately $4 million. Moreira was indicted on Feb. 10, 2021 and charged with federal violations.
Under federal statutes, Moreira faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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Oath Keeper Affiliates Charged in Superseding Indictment for Conspiracy Leading to the U.S. Capitol AttackRead the Press Release
WASHINGTON — Two individuals associated with the Oath Keepers, a large but loosely organized collection of individuals who explicitly focus on the recruitment of current and former military, law enforcement and first responder personnel, were indicted yesterday in federal court in the District of Columbia for conspiring to obstruct Congress, among other charges. James and Minuta are the 11th and 12th defendants to be charged in this case.
Joshua James, 33, of Arab, Alabama, was arrested on March 9, 2021 in Arab, Alabama; and Roberto Minuta, 36, of Prosper, Texas, was arrested on March 7, 2021, in Newburgh, New York. Both individuals were charged by superseding indictment with conspiracy, obstruction of an official proceeding, and entering and remaining in a restricted building or grounds. If convicted, James and Minuta each face a maximum penalty of 20 years in prison.
According to the charging documents, James and Minuta communicated with co-conspirators in advance of the Jan. 6, 2021, incursion on the U.S. Capitol. The indictment alleges frequent and consistent communication leading up to the attack, such as in reserving hotel rooms and making phone calls to co-conspirators the morning of the breach.
According to the indictment, in response to a call for individuals to head to the Capitol after the building was breached, James and Minuta drove to the Capitol in a golf cart, at times swerving around law enforcement vehicles with Minuta stating, “Patriots are storming the Capitol…so we’re en route in a grand theft auto golf cart to the Capitol building right now…it’s going down guys; it’s literally going down right now Patriots storming the Capitol building…”
Once they arrived, Minuta aggressively berated and taunted law enforcement officers in riot gear guarding the perimeter of the Capitol near the East side of the building. At 3:15 p.m., Minuta and James forcibly entered the Capitol building through the same east side Rotunda doors through which their alleged co-conspirators had entered earlier.
They then stormed the building, wearing military gear. Minuta additionally wore hard-knuckle tactical gloves, ballistic goggles, a radio with an earpiece and bear spray. Video captures Minuta yelling at an officer: “All that’s left is the Second Amendment!” as he exited the building at 3:19 p.m. Not long after 4:00 p.m., individuals who breached the Capitol – including James, Minuta and many of their alleged co-conspirators – gathered together approximately 100 feet from the Capitol near the northeast corner of the building.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice’s National Security Division, Counterterrorism Section. Valuable assistance was provided by the U.S. Attorneys’ Offices for the Southern District of New York, Eastern District of Texas and Northern District of Alabama. The case is being investigated by the FBI’s New York, Dallas, Birmingham and Washington Field Offices.
The charges contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Colombian Soccer Star Sentenced in the Eastern District of Texas for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Colombian soccer star was sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jhon Eduis Viafara Mina, 42, a native of Robles, Colombia, pleaded guilty on Nov. 23, 2020, to conspiracy to import five kilograms or more of cocaine into the United States and was sentenced to 135 months in federal prison today by U.S. District Judge Amos Mazzant. Viafara Mina, an international soccer star, previously played for the Colombian National Team and Once Caldas football club, as well for the English football clubs Portsmouth and Southampton, among many others.
“The defendant in this case had it all, worldwide fame, wealth, and stature—despite all of this, he chose to use his talents to advance the evil of the drug trade,” said Acting U.S. Attorney Nicholas Ganjei. “The Eastern District of Texas will identify drug trafficking operations and dismantle them at their source, stopping deadly drugs before they reach our shores. Traffickers should take note, no matter who you are; no matter where in the world you live; the United States will prosecute you if you join in a conspiracy to send drugs to our country.”
According to information presented in court, in August 2017, DEA Dallas Field Division Group 3, in conjunction with the DEA Bogota Country Office, the DEA San Jose Country Office, and the Panama City Country Office began an investigation into a cocaine drug trafficking organization operating out of Colombia, which included Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.” Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America for subsequent distribution within the United States. Based on this conduct, Viafara was indicted by a grand jury based on June 13, 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 Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Harrison County Meth Dealer Sentenced to Decade in Federal PrisonRead the Press Release
MARSHALL, Texas – A Marshall, Texas, man was sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Fernie Moreno, 35, pleaded guilty on Nov. 23, 2020, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Rodney Gilstrap.
“Drug traffickers who ply their deadly wares in our communities will be met with harsh consequences,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX, along with its law enforcement partners, will do whatever it takes to ensure that Harrison County is kept safe and drug free.”
According to information presented in court, Moreno was a member of a criminal organization responsible for selling large quantities of methamphetamine in Marshall. Moreno and eight others were indicted by a federal grand jury on Feb. 19, 2020, with five of these co-defendants already having been sentenced for their roles in the criminal conspiracy. Danny Brian Hernandez was sentenced to 17 years in federal prison, while Ronald Charles Parker received 14 years, Armando Ivan De La Torre received 16 years, Daniel Ramirez received 10 years, and Martin Lopez received 10 years. Pursuant to Operation Pine Curtain, numerous other co-conspirators have been arrested and are awaiting dispositions in their respective cases.
Operation Pine Curtain 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.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Gregg County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A Kilgore, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Christopher Marcell Mumphrey, 43, pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
“As evidenced by this plea and a co-defendant's plea last week, local and state law enforcement, partnering with the FBI, are making a difference in shutting down the flow of illegal drugs in our communities,” said Acting U.S. Attorney Nicholas J. Ganjei.
According to information presented in court, on Feb. 5, 2020, Mumphrey was a passenger in a vehicle which was used to transport and distribute methamphetamine in Smith County, Texas. Mumphrey exited the vehicle and signaled to the buyer to approach the vehicle to complete the transaction.
A federal grand jury returned an indictment charging Mumphrey with federal drug trafficking crimes on Nov. 6, 2020. Under federal statutes, Mumphrey faces up to 40 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office, and the Texas Department of Public Safety-CID and prosecuted by Assistant U.S. Attorney Alan Jackson.
Longview Brothers “Big Hub” and “Little Hub” Sentenced to Federal Prison in Separate Firearms-Related CasesRead the Press Release
SHERMAN, Texas – Two Longview brothers were sentenced to federal prison this week in separate firearms cases, announced Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas.
Thomas Ricardo “Big Hub” Hubbard, 40, pleaded guilty on January 9, 2020, to use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Today, he was sentenced to 104 months in federal prison by U.S. District Judge J. Campbell Barker.
Dennis Derrell “Little Hub” Hubbard, 39, pleaded guilty on October 28, 2020, to being a felon in possession of a firearm. On March 25, 2021, he was sentenced to 57 months in federal prison by U.S. District Judge Jeremy D. Kernodle. Both Hubbard brothers were also ordered to forfeit firearms and ammunition related to their offenses.
“These cases demonstrate that we will vigorously pursue felons who acquire and use firearms in their crimes,” said Acting U.S. Attorney Nicholas J. Ganjei. “The defendants were multi-convicted felons who chose to acquire and carry firearms. We will continue to partner with federal and local agencies to investigate and prosecute the most dangerous members of the criminal community.”
According to court documents and statements made in court, on January 20, 2019, a Tatum Police Officer attempted to stop Dennis “Little Hub” Hubbard on suspicion of drunk driving after Hubbard’s vehicle was seen swerving. Hubbard refused to stop and traveled several miles at low speed before finally pulling over. As the officer approached Hubbard’s vehicle, he gave Hubbard commands to exit his vehicle with his hands visible. Hubbard started to comply, but then abruptly drove away as the officer approached. After a short distance, Hubbard again pulled over and again began to comply with the officer’s instructions to exit the vehicle. However, Hubbard again drove away from the officer as he approached Hubbard’s vehicle. After a few more miles of pursuit, Hubbard entered the City of Beckville, Texas, where officers had converged to set up a roadblock at an intersection. Hubbard attempted to drive around the roadblock before he was finally boxed-in by police. Hubbard then surrendered and was arrested. A handgun and .40 caliber ammunition were located inside Hubbard’s car. Hubbard has multiple prior felony convictions.
In a separate incident, on April 8, 2019, Gregg County Organized Drug Enforcement (CODE) officers executed a search warrant at Thomas “Big Hub” Hubbard’s home and located a rifle, ammunition, 16.42 grams of PCP, 37.62 grams of “ice” methamphetamine, and 32.9 grams of crack cocaine. All of these items were located in Thomas Hubbard’s bedroom. He claimed ownership of those items in a subsequent interview and also admitted that, among other reasons, he possessed the firearm for the purpose of protecting his drug dealing activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Gregg County CODE Unit; the Tatum Police Department; and the Panola County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ryan Locker.
Gregg County Man Sentenced for Trafficking Nearly Two Kilograms of MethamphetamineRead the Press Release
TYLER, Texas – A Longview, Texas man was sentenced to federal prison today for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Allen Martez Anthony, 30, pleaded guilty on June 25, 2020, to distribution of methamphetamine and was sentenced to 188 months in federal prison today by U.S. District Judge J. Campbell Barker.
“This case illustrates how effective we can be at disrupting narcotics trafficking when our state and local law enforcement officers coordinate with federal agencies like the DEA,” said Acting U.S. Attorney Nicholas J. Ganjei. “The U.S. Attorney’s Office is fully committed to supporting the efforts of our drug task forces and the local, state and federal agents who are working tirelessly to rid our communities of addictive narcotics like methamphetamine.”
According to information presented in court, on October 8, 2019, Anthony was stopped along Interstate 20 in Smith County, Texas. During the traffic stop, a police canine alerted to the presence of narcotics in Anthony’s vehicle. A subsequent search revealed 1,958 grams of methamphetamine hidden inside the car. Anthony was indicted by a federal grand jury on December 15, 2020, and charged with drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Grayson County Man Receives Life Sentence for Drug Trafficking EnterpriseRead the Press Release
SHERMAN, Texas – A Sherman, Texas man was sentenced to federal prison today for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Tyton Hester, 30, pleaded guilty on June 30, 2020, to conspiracy to possess with intent to manufacture and distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Today, he was sentenced to life in federal prison by U.S. District Judge Amos Mazzant.
“Today’s sentence sends a strong message to those who would seek to profit from the trafficking of illegal narcotics,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to collaborate with all of our law enforcement partners to stem the flow of deadly drugs into the United States.”
“Mr. Hester furthered the plague of drug trafficking with a pattern of menacing and intimidating behaviors that victimized vulnerable individuals and jeopardized the lives of children in order to obfuscate his illegal activities,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Today’s life sentence should send comfort to the greater community of Sherman that the FBI, along with our federal and local partners, continues to work diligently to remove dangerous criminals from our streets.”
According to information presented in court, in 2018, law enforcement officials received information that a major drug distributor was conducting operations in Sherman, Texas, and southern Oklahoma. Hester was identified as a multi-kilogram distributor of methamphetamine, cocaine, heroin, and Xanax. Hester, who ran his drug trafficking activities out of a mechanic shop in Sherman, recruited down-on-their-luck individuals to help with the narcotics trafficking. He offered them food, shelter, and drugs in exchange for conducting drug deals and securing his “trap house.” To appear less suspicious Hester also had these individuals, including children, accompany him on trips to Dallas where his sources of supply were located.
Hester was indicted by a federal grand jury in May 2018. He proceeded to trial and was found guilty by a jury on June 30, 2020.
Ultimately, eight other members of Hester’s operation were also indicted. Hester is the final defendant to be sentenced. The others had previously pleaded guilty and collectively received sentences totally more than 100 years in federal prison.
Four East Texas Felons Sentenced to Prison for Federal Firearms ViolationsRead the Press Release
TYLER, Texas – Four men were sentenced to prison today for federal firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
U.S. District Judge J. Campbell Barker imposed the following sentences after the defendants pleaded guilty:
Patrick Odell Session, 27, of Carthage, Texas, was sentenced to 84 months for felon in possession of a firearm;
Cory Tederrel Dawkins, 43, of Longview, Texas, was sentenced to 72 months for felon in possession of a firearm;
Isaiah Bodate Pierce, 29, of Longview, Texas, was sentenced to 72 months for felon in possession of a firearm; and
Tramaine Keishone Robinson, 22, of Carthage, Texas, was sentenced to 37 months for felon in possession of a firearm.
“Prohibiting the possession of firearms by convicted felons illegally in our country is a critical component of keeping our communities safe,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas remains committed to keeping the guns out of the hands of the most dangerous members of our society.”
According to information presented in court, the defendants were prohibited from possessing firearms under federal law because of prior felony convictions. Law enforcement encountered the defendants on separate dates following traffic stops that resulted in the discovery of firearms and, in several instances, other criminal contraband such as controlled substances and distribution paraphernalia. In addition to being prohibited from possessing firearms, several of the defendants were also identified by law enforcement as documented gang members. The defendants were separately indicted by a federal grand jury and charged with violations of federal firearms laws.
These cases were 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.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the Longview Police Department; and the Tatum Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Smith County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A Tyler, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Cory Jsamard Ford, 33, pleaded guilty to possession of cocaine with intent to distribute today before U.S. Magistrate Judge John D. Love.
“This case is another example of how federal, state, and local law enforcement, working together, can significantly interrupt the flow of controlled substances in our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Cases like this, sustained over time, can make a big difference in our towns and cities.”
According to information presented in court, between Jan. 23, 2020 and Feb. 5, 2020, Ford distributed cocaine and methamphetamine in Smith County, Texas. A federal grand jury returned an indictment charging Ford with federal drug trafficking crimes on Nov. 2, 2020. Under federal statutes, Ford faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office, and the Texas Department of Public Safety-CID and prosecuted by Assistant U.S. Attorney Alan Jackson.
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North Texas Woman Guilty in Multimillion-Dollar Conspiracy Involving the Sale of Forged PrescriptionsRead the Press Release
SHERMAN, Texas – A Denison, Texas, woman has pleaded guilty for her role in a conspiracy scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Lydia Henslee, 29, pleaded guilty to conspiring to possess and use means of identification in connection with various offenses today before U.S. Magistrate Judge Christine A. Nowak. Her co-conspirators, Demetrius Cervantes, 46, of McKinney, Texas, and Amanda Lowry, 40, of Sherman, Texas, previously pleaded guilty to conspiracy to obtain information from a protected computer and are awaiting sentencing.
“Prescriptions are not for sale in the Eastern District of Texas — the monetization of patient information and fabrication of physicians’ orders will not be tolerated,” said Acting U.S. Attorney Nicholas J. Ganjei. “This office will vigorously prosecute defendants who place profits over patients and manipulate the healthcare system for their personal gain.”
The defendants were indicted by a federal grand jury on Sep. 11, 2019, and were each charged with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification.
According to information presented in court, the defendants breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients. This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced, which resulted in the discovery of the following forfeitable assets: a 2019 Land Rover Range Rover Supercharged; a 2019 Dodge Durango SUV; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move.
On Nov. 18, 2020, Henslee was charged in a ten-count superseding indictment with one count of conspiracy to unlawfully transfer, possess, and use a means of identification, and nine counts of unlawfully transferring, possessing, and using a means of identification. Henslee was also charged in a separate superseding indictment along with Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 67, of Allen, Texas, with one count of conspiracy to commit illegal remunerations.
According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for orders from physicians that were subsequently used to obtain payments from federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physician orders. The conspirators then sold the physicians’ orders to each other and to other DME providers. Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE.
Under federal statutes, Henslee faces up to 15 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office. Henslee has agreed to forfeit $253,520.00.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. It is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia and Special Assistant U.S. Attorney Bethany R. Pickett.
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Nigerian National in Collin County Sentenced for Multimillion-Dollar Fraud and Money Laundering Scheme Which Victimized Senior Citizens, School Districts, and CharitiesRead the Press Release
SHERMAN, Texas – A Nigerian national based in Plano, Texas has been sentenced to federal prison for violations related to a bank fraud and money laundering conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Babatope Joseph Aderinoye, 30, was convicted by a jury on Oct. 14, 2020, of conspiracy to commit bank fraud, wire fraud, and money laundering; wire fraud; aggravated identity theft; and mail fraud. Aderinoye was sentenced to 408 months in federal prison today by U.S. District Judge Amos Mazzant. Aderinoye was also ordered to pay restitution in the amount of $1,919,526.13.
“The types of fraud committed by Mr. Aderinoye and his co-conspirators not only have lasting ramifications for the affected victims, but also threaten the integrity of our country’s financial systems,” said Acting U.S. Attorney Nicholas J. Ganjei. “While today’s sentence is a decisive victory for the victims of Mr. Aderinoye and his co-conspirators, the overall fight against cyber fraud continues. EDTX will do everything in its power to bring other cyber criminals to justice, and to recover ill-gotten gains for those victimized.”
“The defendant defrauded senior citizens, a school district, and a non-profit aimed at helping the families of the terminally-ill. The money stolen was needed for critical services, basic everyday necessities, and retirement,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Business Email Compromise is a financially devastating scam that targets both businesses and individuals. The FBI is committed to holding cyber criminals accountable for the harm they do to everyday citizens and our financial institutions.”
According to information presented in court, Aderinoye would obtain fake passports in the names of others. He would then use those fraudulent passports and the identifying information of others to establish false business entities and fraudulent bank accounts. To this date, 13 individual aliases, 12 business aliases, and over 40 fraudulent bank accounts have been tied to Aderinoye, and there is evidence to suggest more aliases exist. Once Aderinoye would open the fraudulent bank accounts, co-conspirators would engage in various business email compromise scams and telephone compromise scams to defraud individuals and businesses out of money. In these scams, co-conspirators would pose as a known individual and direct the targeted victims to wire or send funds to Aderinoye or the fraudulent accounts Aderinoye had set up. Once the ill-gotten money posted in Aderinoye’s fraudulent accounts, he would immediately withdraw the funds, transfer the monies to other fraudulent accounts, or wire them internationally to a bank account he had set up in Nigeria. The illicit proceeds were used to pay off co-conspirators and further fund their fraudulent schemes. From June 2018 through September 2019, over $6.7 million was deposited into alias accounts of Aderinoye, with almost all of those funds being withdrawn or wired internationally. The victims of the BEC scams included school districts such as Community ISD, Project 4031, a non-profit organization that helps families of the terminally ill, an individual whose identity was used to drain his retirement account, and an elderly man who had over $352,000 stolen from his investment account. The investigation is ongoing, as co-conspirators and victims continue to be identified.
This case was investigated by the Federal Bureau of Investigation’s Dallas Financial Crimes Task Force, which includes FBI agents and members of the Fort Worth Police Department. This case was prosecuted by Assistant U.S. Attorneys Wes Wynne and Will Tatum.
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Louisiana Woman Guilty in $4.8 Million Elder Fraud SchemeRead the Press Release
TYLER, Texas -- A Shreveport, Louisiana woman has pleaded guilty for her role in an elder fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Monica Ruiz, 45, pleaded guilty to wire fraud today before U.S. Magistrate Judge John D. Love.
“Schemes that target elderly victims are particularly troubling,” said Acting U.S. Attorney Nicholas J. Ganjei. “Ruiz manipulated a vulnerable victim, exploited his trust, and stole much of his hard-earned life savings. Protecting senior citizens from exploitation has been, and will remain, a priority in the Eastern District.”
According to information presented in court, Ruiz enlisted a variety of false and fraudulent pretenses, representations, and promises in a scheme to defraud an elderly victim from Bullard, Texas. Among the various misrepresentations Ruiz made in order to obtain money from the victim were the following:
- That Ruiz had been in a coma;
- That Ruiz had brain surgery;
- That Ruiz was falsely arrested and imprisoned;
- That Ruiz had bribed a judge and prosecutor;
- That Ruiz’s son died in a car accident in Pennsylvania;
- That Ruiz was in a car accident;
- That Ruiz had a kidney transplant;
- That Ruiz’s daughter was committed to a mental institution;
- That Ruiz was incarcerated; and
- That Ruiz’s grandmother died.
At times, Ruiz impersonated other people in communications with the victim. At other times, she created and used false personas in communications with the victim. Over the course of her scheme, Ruiz obtained more than $4.85 million from the victim.
A federal grand jury returned an indictment charging Ruiz with federal violations on Nov. 19, 2020. Under federal statutes, Ruiz 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.
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 7 days a week from 6:00 a.m. to 11:00 p.m. Eastern Time. English, Spanish, and other languages are available.
This case is being investigated by the U.S. Secret Service with the assistance of the Tyler Police Department and the Louisiana State Police – Gaming Enforcement Division and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Jefferson County Man Sentenced for Federal Firearms and Drug ViolationsRead the Press Release
BEAUMONT, Texas – A Nederland, Texas man has been sentenced to federal prison for firearms and drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Esdras Homero Pedroza, 27, pleaded guilty on January 6, 2021, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Today, he was sentenced to 180 months in federal prison today by U.S. District Judge Marcia A. Crone.
“Today’s sentence sends a clear message that this sort of criminal conduct—possession of drugs with an intent to distribute, and having a gun to facilitate the distribution—will not be tolerated in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei.
According to information presented in court, on August 7, 2020, Jefferson County Narcotics Task Force officers stopped Pedroza’s pickup truck after a brief pursuit on Highway 69 South in Port Arthur. After a drug detection dog alerted on the truck, the officers searched the vehicle. They found 336 grams of methamphetamine; a digital scale; $1,259 cash; and an AR-15 rifle. Pedroza was indicted by a federal grand jury on November 4, 2020 and charged with firearms and drug trafficking violations.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
El Paso Man Sentenced to Federal Prison for Money Laundering Connected to East Texas Meth Trafficking RingRead the Press Release
MARSHALL, Texas – An El Paso man was sentenced to prison today for his role in a money laundering conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Damian Munoz, 36, pleaded guilty on April 20, 2020 to conspiracy to commit money laundering and was sentenced to 35 months in federal prison by U.S. District Judge Rodney Gilstrap today.
“Drug trafficking is a predatory enterprise that victimizes vulnerable addicts, while simultaneously encouraging violence and criminality for profit,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are committed to cutting off the flow of profits to those who would harm our communities in order to put them out of business.”
According to information presented in court, Munoz was associated with an organization responsible for importing large quantities of methamphetamine from Mexico and distributing it in Hughes Springs and elsewhere. The organization was also responsible for trafficking numerous firearms acquired in East Texas down to Mexico. Munoz received more than $15,000 in drug proceeds from traffickers and then transported this cash to others located in Mexico. On May 16, 2019, twenty-one others were indicted by a federal grand jury, and charged with violations of federal drug trafficking, firearms, and money laundering laws.
Operation Patch Over is a long-term drug trafficking and money-laundering investigation that has already resulted in the arrest and prosecution of numerous co-conspirators. Twenty others have already pleaded guilty and been sentenced in the case, including Oscar Dean Davis, who received 264 months in prison as the head of the East Texas methamphetamine distribution ring.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Upshur County Individuals Guilty of Conspiring to Commit ID Theft for COVID Economic Impact PaymentsRead the Press Release
TYLER, Texas – Two individuals from Gilmer, Texas have pleaded guilty to conspiring to commit identity theft in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Emilee Fenton, 24, pleaded guilty to conspiracy to unlawfully transfer, possess, and use a means of identification today before U.S. Magistrate Judge K. Nicole Mitchell. Dalton Brewer, also 24, pleaded guilty to the same charge on March 4, 2021.
“Economic Impact Payments were designed to reach the most needy, not to line the pockets of criminals. The Eastern District of Texas is committed to fighting fraud and criminal activity related to the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s plea is just another example of how our office and our law enforcement partners are holding accountable the wrongdoers who exploit this crisis.”
Fenton and Brewer were indicted by a federal grand jury on August 19, 2020 and charged with conspiracy to unlawfully transfer, possess, and use a means of identification. Fenton was also charged with theft of government money and aggravated identity theft.
According to the indictment, from at least November 2019 through June 2020, Brewer and Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two Economic Impact Payments (EIPs) using the means of identification of other persons.
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. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
At sentencing, Brewer and Fenton each face up to 15 years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service (USPIS), Treasury Inspector General for Tax Administration (TIGTA), and the Internal Revenue Service-Criminal Investigations (IRS-CI) and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Houston Man Pleads Guilty to Federal Charges Stemming from Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Robert Lance Kuperman, 71, pleaded guilty to interstate transportation of money by fraud on March 22, 2021 before U.S. District Judge Michael J. Truncale.
“Insurance fraud ultimately harms individual Americans in the form of higher insurance premiums, making every business more expensive to operate, and passing these costs on to the consumer in the form of higher prices” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will diligently prosecute those who seek to commit insurance fraud in the Eastern District of Texas.”
According to information presented in court, Kuperman purchased a home on Lake Livingston in Polk County, Texas in 2013, and, in July of 2015, submitted an insurance claim related to water damage to the house that he said was caused by a defective water heater. As part of the claim, Kuperman submitted fraudulent documentation for out-of-pocket costs for the purported replacement of personal property destroyed by the water leak. Based on Kuperman’s fraudulent claims, American Strategic Insurance Company issued a series of checks, made payable to Kuperman including a check for more than $136,000.00. As part of the plea, Kuperman has agreed to repay $136,000.00.
A federal grand jury returned an indictment charging Kuperman with federal violations on July 1, 2020. Under federal statutes, Kuperman 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 investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Polk County Sheriff’s Office, and the Texas State Fire Marshals Office and is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman.
Van Zandt County Man Sentenced for Mail-Order OpioidsRead the Press Release
TYLER, Texas – A Wills Point, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Namand Joaquincy Battles pleaded guilty on July 29, 2020, to possession with intent to distribute a controlled substance. Today, he was sentenced to 27 months in federal prison by U.S. District Judge J. Campbell Barker.
“I commend the hard work of the investigative team that put this case together,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to use a multi-agency approach to combat international drug trafficking. We will not tolerate drug dealers like this one trying to profit off the addictions of our fellow citizens.”
According to information presented in court, in January 2020, law enforcement officials received information that a package had been seized as it was being shipped from the United Kingdom to a Wills Point, Texas, address. The package, which was marked “clothing,” contained some clothes and snacks as well as 50,000 Tramadol tablets. Federal agents were able to determine a second package was being mailed from the United Kingdom to the same Wills Point, Texas address. That package also contained 50,000 Tramadol tablets and had been intercepted by law enforcement at the John F. Kennedy airport in New York. Battles was identified as the intended recipient. The investigation revealed that after receiving the packages from overseas sources, he would repackage the tablets for distribution by using United States Postal Service Priority Mail boxes and envelopes. Battles admitted to having possessed with intent to distribute at least 100,000 Tramadol 100 mg tablets during the course of his criminal activities. He was indicted by a federal grand jury on January 15, 2020.
This case was investigated by the U.S. Customs and Border Protection, Homeland Security Investigations, U.S. Postal Inspection Service, Texas Department of Public Safety-Criminal Investigations Division, and Van Zandt County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Allen Hurst.
Members of Harrison County Drug Ring Sentenced for Methamphetamine TraffickingRead the Press Release
MARSHALL, Texas – Two Harrison County men were sentenced to prison today for federal drug trafficking and firearms crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Armando Ivan De La Torre, a.k.a. “Poncho,” pleaded guilty on Oct. 6, 2020, to possession with intent to distribute methamphetamine and use and carrying of a firearm during a drug trafficking crime. De La Torre was sentenced to 190 months in federal prison today by U.S. District Judge Rodney Gilstrap. Judge Gilstrap also sentenced Martin Lopez to 84 months in federal prison for possession with intent to distribute methamphetamine.
“Interagency cooperation between federal, state, and local agencies is essential in achieving our mission of dismantling drug trafficking organizations—from top to bottom—and disrupting the flow of drug-related crime and violence into our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those involved in this investigation serve as an example of how that cooperation brings about shared success.”
According to information presented in court, both men were members of an organization responsible for importing large quantities of methamphetamine from Mexico and distributing it in Marshall. The ring operated as both direct seller of methamphetamine, as well as a source-of-supply to other drug dealers.
On Feb. 19, 2020, De La Torre and Lopez were indicted by a federal grand jury along with seven other co-conspirators, and charged with violations of federal drug trafficking laws.
Operation Pine Curtain is a long-term drug trafficking and money-laundering investigation that has already resulted in the arrest and prosecution of numerous co-conspirators. Danny Brian Hernandez, Ronald Charles Parker, Daniel Ramirez, Guadalupe Salvador Diosdado, Erik Alberto Galindo, and Rachel Naomi Hernandez have pleaded guilty and have been sentenced. Andres Michael Martinez-Juarez, Cristian Leobardo Torres-Santana, Francisco Moreno, Fernie Moreno, Amanda Jean Crisp, and Damarcus Damon Armstrong have pleaded guilty and are awaiting sentencing. Several others have been arrested, pleaded not guilty, and are awaiting trial.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Dallas County Man Convicted at Trial for Child EnticementRead the Press Release
PLANO, Texas – An Irving, Texas man has been convicted of attempted coercion and enticement of a minor in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Cody Ryan Turner, 37, was found guilty by a jury on March 10, 2021, following a three-day trial before U.S. District Judge Sean D. Jordan.
“I commend our law enforcement partners for their vigilance in ensuring the safety of our children,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who target child victims are the worst among us. Their actions will not be tolerated. The Eastern District of Texas will continue to find such individuals and bring them to justice.”
According to information presented in court, in August 2019, Turner began messaging an individual he believed to be a young teen on a popular social media application. After receiving no response throughout August 2019, he sent a graphic image to the child in December 2019. Turner then messaged the child again in June 2020. The individual who Turner believed to be a teen responded and identified herself as a child. From June-September 2020, Turner sent a series of sexually explicit messages to this individual.
On September 8, 2020, believing that the child was at home attending school online because of COVID, Turner sent a message asking, "want company"? Evidence introduced at trial showed that Turner drove from Irving to a location in Plano to meet the child, at which time he was arrested by a joint law enforcement team comprised of officials from the FBI and the Plano Police Department.
Turner was indicted by a federal grand jury on September 17, 2020. Under federal statutes, he 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 case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's 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.projectsafechildhood.gov.
This case was investigated by the FBI and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller and Special Assistant U.S. Attorney Bethany Pickett.
U.S. Attorney’s Office Statement on the Passing of Clyde M. SiebmanRead the Press Release
BEAUMONT, Texas – Nicholas J. Ganjei, Acting United States Attorney for the Eastern District of Texas, issued the following statement following the passing of attorney Clyde M. Siebman.
“We join others in the Eastern District of Texas and beyond in mourning the passing of Clyde Siebman. A native of Grayson County, and a law clerk in Sherman to the late U.S. District Judge Paul Brown, Clyde had deep roots in—and a great love for—East Texas. From founding and serving as president of the district’s bar association, to chairing the bench-bar conference for the past 25 years, Clyde devoted his life and career to the promotion of the East Texas legal community. His impact on the district simply cannot be overstated. We extend our condolences to Clyde’s family, law partners, and many friends.”
Clyde Siebman attended Southern Methodist University for both undergraduate studies and law school. He was Board Certified in Civil Trial Law by the Texas Board of Legal Specialization and a member of the East Texas chapter of American Board of Trial Advocates. Clyde served as a member of the Eastern District of Texas’s Local Rules Advisory Committee, Non-Appropriated Fund Committee, and U.S. Magistrate Judge Merit Selection Committee. He passed away on March 4, 2021.
Longview Sex Offender Sentenced to Federal Prison for Child Pornography Violations Following International InvestigationRead the Press Release
TYLER, Texas – A Longview, Texas sex offender who was identified as part of a joint international investigation has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Charles Orange, 55, was convicted by a jury on Sep. 18, 2020, of possession of child pornography and was sentenced to 240 months in federal prison by U.S. District Judge Robert W. Schroeder III on March 4, 2021. Following Orange’s release from federal prison, he will be placed on a life term of supervised release.
“There is no place for Charles Orange in lawful society,” said Acting U.S. Attorney Nicholas J. Ganjei. “He is unapologetic, unrepentant, and unremorseful. Nothing short of incarceration will stop him from engaging in the sexual exploitation of children. The Court’s sentence sends a clear message to Charles Orange and to other likeminded predators – the public has the right to be protected. On behalf of the Eastern District of Texas, I wish to express my gratitude to HSI, INTERPOL, Thailand’s DSI, Australia’s AFP, and our other law enforcement partners from around the world for their tireless efforts and shared commitment to save the lives of children and bring sexual predators to justice.”
“Finding and arresting devious child predators who attempt to evade detection by law enforcement through use of the dark web and other anonymizing technologies remains a top priority for our agency,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “Fortunately, the investigative actions of our dedicated special agents have prevented this deviant from victimizing children within our community while also reminding other criminals that there are no safe spaces on the internet for sexual exploitation of children. We remain committed to our global law enforcement partnerships in fighting child sexual exploitation, and we will continue to relentlessly pursue the predators who seek to steal the innocence of our children.”
According to information presented at trial, the investigation of Charles Orange originated as a lead from INTERPOL’s Operation Blackwrist. Agents with HSI Tyler, acting upon information provided in the INTERPOL lead, executed a search warrant on Dec. 20, 2018 at Charles Orange’s residence in Longview, Texas. A device containing child pornography was found on a dresser next to Orange’s bed. According to the testimony of a forensic analyst, child pornography contained on the device had been accessed and downloaded as recently as the night before the execution of the search warrant. Analysts testified that Orange’s email address, Internet history, and Internet Protocol (IP) address connected him to the child exploitation website identified in Operation Blackwrist. Additionally, evidence presented at trial showed that the device was used to take surreptitious photographs of young boys in stores in Longview, Texas the day before the execution of the search warrant.
In 2008, Orange was convicted of Indecency with a Child and was required to register as a sex offender.
Operation Blackwrist, named after a bracelet worn by one of the victims, was launched by INTERPOL in 2017 following the discovery of material depicting the abuse of 11 boys, all under 13 years old. The material—first identified on the dark web—originated from a subscription-based website with nearly 63,000 users worldwide. For years, the site had published new material weekly, with the abuser taking great care to avoid detection, often masking the children and leaving very few visual or audio clues. Officers relied on the physical traits of the children to track their ongoing abuse and reached out to the global police community for help.
In June 2017, Thailand’s Department of Special Investigations (DSI) took on the case, working in close collaboration with INTERPOL’s Liaison Bureau in Bangkok. Investigators around the world also joined the effort to identify the 11 boys and locate website administrators. HSI eventually identified the website IP address and worked to establish links to the United States.
Bulgaria’s Cybercrime Department at the General Directorate Combating Organized Crime, supported by Europol, took down the website’s servers. The Department of Internal Affairs in New Zealand deconflicted intelligence and compiled information packages on website users for INTERPOL member countries. The U.S. National Center for Missing and Exploited Children cross-checked e-mail addresses and provided additional intelligence. The Australian Federal Police (AFP) and South Australian Police came on board when an IP address pointed to a location in Adelaide.
In November 2017, the first victims were identified, leading to simultaneous arrests in Thailand and Australia two months later. The website’s main administrator, based in Thailand, was identified as Montri Salangam. He was the man seen abusing the 11 boys, one of whom was his nephew. The children had been lured to Salangam’s home with meals, internet access and football games. A second administrator, Ruecha Tokputza, was based in Australia. Police found thousands of images taken in both Thailand and Australia on his seized devices, some of which featured Tokputza as the main abuser. The youngest identified victim during the South Australian court proceedings was just 15 months old.
In June 2018, Thai courts sentenced Salangam to 146 years in prison on charges of child rape, human trafficking, and possession and distribution of child sexual abuse material. A second man, an elementary school teacher close to Tokputza, received 36 years in prison on the same charges. On May 17, 2019, an Australian judge sentenced Tokputza to 40 years and three months in prison, the longest sentence ever imposed in Australia for child sex offenses. The judge referred to Tokputza as “every child’s worst nightmare” and “every parent’s horror.”
INTERPOL Secretary General Jürgen Stock welcomed the successful prosecutions and applauded the massive international effort required. “Operation Blackwrist sends a clear message to those abusing children, producing child sexual exploitation material and sharing the images online: We see you, and you will be brought to justice. Every child abuse image is evidence of a crime and INTERPOL will always provide its full support to officers on the ground to help identify and rescue victims around the world.”
“These efforts have already resulted in numerous arrests in the United States to include individuals occupying positions of public trust. We are proud to be a part of these international efforts,” said HSI Bangkok Regional Attaché Eric McLoughlin.
The website sparked a series of investigations around the world, leading to further arrests in Thailand, Australia, and the United States. Police in nearly 60 countries examined referrals compiled by New Zealand.
HSI Bangkok and HSI Indianapolis partnered with INTERPOL and DSI, as well as other law enforcement agencies, to pursue any investigative leads with a potential nexus to the United States. On January 16, 2018, HSI Bangkok assisted Thai authorities with the execution of search and arrest warrants in furtherance of this operation. One arrest was executed, and five victims were rescued at the time of the operation.
Following this operation, HSI Bangkok worked with the HSI Cyber Crimes Center (C3) to ensure actionable leads were provided to HSI domestic offices for further investigation. HSI Indianapolis, HSI Buffalo, HSI Ft. Lauderdale, HSI Norfolk, HSI Tyler, and C3 provided significant support for the operation.
To date, the operation has led to the rescue of 50 children, as well as the arrest and prosecution of child sex offenders in Thailand, Australia, and the United States.
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.
The investigation leading to the charges was conducted by agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Longview Police Department with support from HSI C3. Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Marisa Miller prosecuted this case.
Correctional Officer and Inmate Sentenced to Prison for Bribery and Smuggling SchemeRead the Press Release
TEXARKANA, Texas – A correctional officer and federal inmate have been sentenced for a bribery conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“EDTX is committed to the principle that no person, regardless of their title, status, or position, is above the law,” said Acting U.S. Attorney Nicholas J. Ganjei. “This corrupt law enforcement officer exploited his position of public trust and endangered the inmates and staff at FCI Texarkana. This office will work tirelessly to protect the trust and confidence that East Texans have placed in their law enforcement community.”
James Thompson, a 55-year-old Titus County, Texas, man, pleaded guilty on August 5, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Thompson to forfeit $17,200.00 in U.S. currency and cash proceeds from his scheme.
Gilbert Gomez, a 54-year-old federal inmate, pleaded guilty on August 31, 2020, to conspiring to commit bribery and was sentenced to 46 months in federal prison by Judge Schroeder. Judge Schroeder also ordered Gomez to forfeit $15,000 in cash proceeds from his scheme.
According to information presented in court, beginning before August 2019 and continuing through January 2020, Thompson, a federal correctional officer, and Gomez, a federal inmate, engaged in a scheme to smuggle contraband into the Federal Correctional Institution located in Texarkana, Texas. During the scheme, Thompson received cash bribe payments and prison contraband at a post office box under the alias of “Bobby Brown.” Thompson then smuggled the contraband into FCI Texarkana when he entered the facility to go to work. Gomez coordinated the scheme from inside the institution, where he arranged cash bribe payments and delivered the smuggled contraband to other inmates. Thompson and Gomez received more than $30,000.00 total for smuggling contraband into FCI Texarkana.
This case was investigated by the Dallas Field Office of the U.S. Department of Justice, Office of the Inspector General, the Fort Worth Division of the U.S. Postal Inspection Service, and the Bureau of Prisons, Special Investigative Services. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Bowie County Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
TEXARKANA, Texas – A Bowie County sex offender has been sentenced to federal prison for possessing child pornography in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
William Johnson Springer, 60, of Texarkana, Texas, pleaded guilty on Oct. 5, 2020, to possessing child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Springer to pay restitution to his victims, to register as a sex offender, and to serve a life term of supervised release following his imprisonment.
“This repeat sex offender victimized the weakest in our community by viewing and possessing child pornography,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office will continue to find and prosecute those who sexually exploit our children by viewing, possessing, distributing, or producing child pornography.”
According to information presented in court, Springer possessed a cell phone, which he used to download and collect images and videos containing child pornography. His collection of more than 600 images included depictions of prepubescent minors, sadistic or masochistic abuse or violence, and sexual abuse and exploitation of infants and toddlers.
Springer was previously convicted of possession of child pornography in the U.S. District Court for the Northern District of Oklahoma and on Feb. 9, 2009, was sentenced to 67 months in federal prison and five years of supervised release as a result of that conviction. Springer also has pending charges for failure to comply with registration requirements in the 202nd District Court in Bowie County.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's 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.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
White Supremacists Plead Guilty to Violent Crime in Aid of RacketeeringRead the Press Release
Two members of the Aryan Circle (AC) pleaded guilty this week to their roles in a violent assault of a man in October 2016.
Michael Martin, aka Aryan Prodigy, aka AP, 38, of Austin, Texas, and Bobby Dayle Boney, 50, of Sulphur Springs, Texas, each pleaded guilty to assault resulting in serious bodily injury in aid of racketeering. Martin and Boney committed the assault as part of their membership in the AC, a gang that operates in Texas and other states throughout the country.
This case is part of a larger investigation into the AC, Operation Noble Virtue, that has targeted AC leadership and resulted in prosecutions and convictions in six different jurisdictions to date. According to information presented in court and contained in court filings, 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.
Martin and Boney both joined the AC in the early 2000s and have gang tattoos indicating their affiliation. Both served in leadership roles within the gang. For a period of time, Martin served as an upper board member, which meant that he was one of the five highest-ranking leaders in the gang. Also, for a period of time, Boney held the leadership rank of vice president, which meant that he gave orders to other AC members and disciplined members who were not following the gang’s directives, among other things.
Prior to October 2016, AC members learned that another member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Martin ordered AC members to attack the former member in order to “X” him, or remove him from the gang, because it violated the AC’s rules to join another organization. AC members, including Martin and Boney, held a “church,” or meeting, at an AC member’s home in the Tyler, Texas, area where they planned the logistics of the assault.
On Oct. 2, 2016, Martin, Boney, and other AC members met at a park near Tyler to carry out the assault. On Martin’s order, Boney and another AC member violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care.
Martin and Boney will be sentenced at a date to be determined.
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 part of a larger investigation into the Aryan Circle 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 Attorney Bethany Lipman 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.
U.S. Attorney’s Office Reminds East Texans to Beware of Social Security Scam CallsRead the Press Release
BEAUMONT, Texas – In connection with the Social Security Administration’s March 4th National “Slam the Scam” Day, the United States Attorney’s Office for the Eastern District of Texas reminds the public to be vigilant of Social Security scam calls.
“For the past year, we have seen a steady increase in Social Security-related scam calls,” said Acting U.S. Attorney Nicholas J. Ganjei. “The financial exploitation of older Americans will not be tolerated. We are partnering with the Social Security Administration Office of the Inspector General to spread the word about these scams. We encourage anyone who receives such calls to hang up.”
“We are working with the Department of Justice and law enforcement agencies across the United States to combat Social Security imposter scams—but our best weapon in this fight will always be awareness,” said Inspector General Gail S. Ennis. “I want to thank the many agencies and organizations that have joined us in our effort this year to alert Americans to hang up on suspicious calls, and talk to their family and friends about phone scams.”
Last year, the (SSA-OIG) received over 700,000 reports of Social Security-related telephone scams—with a total of nearly $45 million lost. Victims reported an average loss of $5,800. The scams involve an imposter calling from what appears to be a local or government phone number. Scammers often use robocalls, but they may also have a live person call. They may also follow up with emails or texts to try to convince you they are a government official, and they are investigating you. These scammers will state that the individual’s Social Security Number has been compromised or has already been suspended for fraudulent activity. The caller may even threaten to suspend the account or have the person arrested if they do not take immediate action.
The U.S. Attorney’s Office and SSA-OIG offer the following information about how to spot these scams:
- SSA may call you in some situations, but will NEVER call you and:
- Tell you that your Social Security Number has been suspended or offer to increase your benefits or resolve an identity theft issue for a fee.
- Threaten you with arrest or legal action if you do not immediately pay a debt, fine, or fee.
- Request immediate payment or even accept payment via gift cards, pre-paid debit cards, cash, wire transfers, or internet currency, such as Bitcoin.
- Demand secrecy from you in handling a Social Security-related problem, or tell you to make up a story to tell your friends, family, or store and bank employees.
- If you owe money to Social Security, the agency will generally mail you a letter with payment options and appeal rights.
- SSA will not send you an email with an attachment containing your personal information.
- SSA will only send you emails or text messages when you have subscribed with SSA to receive updates, or as part of SSA’s enhanced security when accessing your personal my Social Security account.
If you receive such a call, hang up immediately. Do not give anyone your personal information such as your Social Security Number, bank account, or credit card numbers. If you receive a voice mail, do not return the call. Report any scams to OIG.SSA.GOV.
Smith County Woman Sentenced for Methamphetamine TraffickingRead the Press Release
TYLER, Texas – A Tyler, Texas woman was sentenced to prison today for a federal drug trafficking crime in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Alexa Leigh Brown, 51, pleaded guilty on Sep. 8, 2020, to possession with intent to distribute methamphetamine and was sentenced to 71 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“The illegal drug trade brings with it violence, property crime, and severe health risks,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are committed to aggressively investigating and prosecuting those who would harm our communities.”
According to information presented in court, beginning in April 2019, Brown sold more than 165 grams of methamphetamine to a confidential informant over five separate occasions. On August 26, 2019, Brown was arrested following the execution of a search warrant at her residence in Tyler, which resulted in the seizure of additional quantities of methamphetamine and firearms. Brown and eight other co-conspirators were indicted by a federal grand jury on Jan. 15, 2020, and charged with violations of federal drug trafficking and firearms laws.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Smith County Sheriff’s Office; and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Mexican Drug Cartel Members Sentenced for Narcotics Trafficking in East Texas, Agree to Forfeit Millions in Illicit Drug ProceedsRead the Press Release
TEXARKANA, Texas – Three East Texans have been sentenced to prison for an international drug trafficking operation in the Eastern District of Texas pursuant to Operation Dirty Bird, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“Mexican drug cartels are not welcome in East Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office—in partnership with the phenomenal men and women of the Texas law enforcement community—will work tirelessly to dismantle any drug trafficking operations based in East Texas, or even those that happen to be passing through.”
Rodolfo Javier Falcon, a 36-year-old Camp County, Texas, man, was sentenced to thirty years in prison by U.S. District Judge Robert W. Schroeder III. Falcon pleaded guilty on August 20, 2020, to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven. Falcon agreed to forfeit $5 million in drug proceeds.
Eleazar Martinez Reyes, a 41-year-old Camp County, Texas, man, was sentenced to 87 months in prison by Judge Schroeder. Reyes pleaded guilty on August 4, 2020, to conspiring to distribute controlled substances and to illegal re-entry following removal before Judge Craven. Reyes agreed to forfeit $150,000 in drug proceeds.
Gerardo Carbrera Ramirez, a 28-year-old Franklin County, Texas, man, was sentenced to 151 months in prison by Judge Schroeder. Ramirez pleaded guilty on June 11, 2020, to conspiring to distribute controlled substances before Judge Craven. Ramirez agreed to forfeit $7500 in drug proceeds.
According to information presented in court, Falcon, Reyes, Ramirez, Jose Armando Rosales-Bernal, Julio Villarreal, Armando Moreno Jr., Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, David Martinez, and others conspired to distribute more than 150 kilograms of cocaine, along with methamphetamine and heroin, from the Jalisco Nueva Generacion drug cartel in Mexico. The group distributed drugs in Dallas, East Texas, Florida, North Carolina, Arkansas, Illinois, and Michigan. On one occasion, Falcon, Gardea, and Ornelas-Pineda—and two young children—were stopped in Tennessee carrying nine kilograms of cocaine from Rosales-Bernal to North Carolina. The organization was also responsible for shipping drug proceeds, in the form of bulk cash, back to Mexico. Law enforcement intercepted one bulk cash shipment of approximately $350,000. Rosales-Bernal and Falcon both occupied leadership roles in the drug trafficking organization. During the conspiracy, Rosales-Bernal, Falcon, Martinez, and others possessed and carried firearms to safeguard their drugs and cash. Rosales-Bernal and others spent their drug proceeds on lavish lifestyle items, including a Dodge Charger Hellcat, flashy watches, exotic weapons, a jewel encrusted rooster necklace, and numerous pairs of luxury shoes and boots.
Operation Dirty Bird is a long-term drug trafficking and money laundering investigation that has led to the seizure of more than $500,000 in U.S. Currency, almost 40 kilograms of cocaine, more than a quarter kilogram of methamphetamine, nine firearms, several vehicles, two houses in Dallas, and an array of fine jewelry.
Rosales-Bernal, Villarreal, Moreno, Falcon, Ramirez, Gardea, Ornelas-Pineda, Dalia Janet Campos Rosales, Reyes, and Martinez were previously charged and arrested as a result of this investigation. Ornelas-Pineda, Moreno, and Villarreal have pleaded guilty and have been sentenced. Rosales-Bernal, Gardea, and Campos Rosales have pleaded guilty and are awaiting sentencing. Martinez has pleaded not guilty and is awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas. If convicted, Martinez face a minimum of 15 years and as much as life in federal prison.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and the Dallas office of Homeland Security Investigations. In addition, the following agencies have played critical roles in this investigation: the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; the 23rd Judicial Drug Task Force in Dickson, Tennessee; and the Mount Pleasant, Texas, Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Members of White Supremacist Prison Gang Plead Guilty to Federal Charges of Violent Crime in Aid of RacketeeringRead the Press Release
BEAUMONT, Texas – Two Texas men pleaded guilty this week to violent gang-related activities in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei and Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division.
Michael Martin, aka Aryan Prodigy, aka AP, 38, of Austin, Texas, and Bobby Dayle Boney, 50, of Sulphur Springs, Texas, each pleaded guilty to assault resulting in serious bodily injury in aid of racketeering. Martin entered his plea before U.S. Magistrate Judge Zack Hawthorn and Boney pleaded before U.S. Magistrate Judge Keith Giblin. Martin and Boney committed the assault as part of their membership in the Aryan Circle (AC), a gang that operates in Texas and other states throughout the country.
“Fighting the scourge of organized criminal gangs is a team effort,” said Acting U.S. Attorney Nicholas Ganjei. “It will take the full resources and resolve of federal, state, and local law enforcement to push back against these violent criminal organizations.”
According to information presented in court and contained in court filings, Martin and Boney both joined the AC in the early 2000s and have gang tattoos indicating their affiliation. Both served in leadership roles within the gang. Martin had previously served as an upper board member of the gang, which meant that he was one of the five highest-ranking leaders in the AC. Also, for a period of time, Boney held the leadership rank of vice president, which meant that he gave orders to other AC members and disciplined members who were not following the gang’s directives, among other things.
The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Prior to Oct. 2, 2016, AC members learned that another AC member wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. AC members were ordered to attack the former member in order to “X” him, or attack and remove him from the gang, because it violated the AC’s rules to join another organization. A meeting was held at an AC member’s home in the Tyler, Texas area where AC members planned the logistics of the assault.
On Oct. 2, 2016, Martin, Boney, and other AC members met at a park near Tyler, Texas, where they had planned to attack the former member, who was also present. Multiple AC members violently beat the victim, including kicking the victim in the head while he was on the ground. This attack resulted in the victim seeking medical care for serious injuries.
This case is part of a larger investigation into the AC, Operation Noble Virtue, which has targeted AC leadership and resulted in prosecutions and convictions in six different jurisdictions to date. This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and 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. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
The matter is being prosecuted by Assistant United States Attorney Christopher Rapp of the Eastern District of Texas and Trial Attorney Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section.
Harrison County Woman Sentenced on Federal Methamphetamine Trafficking ChargesRead the Press Release
MARSHALL, Texas – A Marshall, Texas woman has been sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Rachel Naomi Hernandez, 32, pleaded guilty on September 23, 2020, to possession with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Rodney Gilstrap.
“Drug trafficking organizations prey on vulnerable addicts for profit in an illegal marketplace that encourages violence and lawlessness,” said Acting U.S. Nicholas J. Ganjei. “We are dedicated to dismantling these organizations and disrupting every link in their chain of supply.”
According to information presented in court, on May 20, 2018, police stopped Hernandez for a traffic violation, during which she admitted to possessing a firearm. The officer confirmed through dispatch that Hernandez was a convicted felon, and arrested her for being felon in possession of a firearm. A subsequent search of Hernandez’s vehicle led to the discovery and seizure of 270 grams of methamphetamine, a pistol, various pills, vials containing suspected PCP, digital scales, and $4,762 in U.S. Currency. Hernandez was indicted by a federal grand jury on December 18, 2019, and charged with violations of federal drug trafficking and firearms laws.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement. This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.
Eight Individuals Indicted for Transnational Drug Trafficking, Money Laundering, and Financial CrimesRead the Press Release
SHERMAN, Texas – A federal grand jury in the Eastern District of Texas has returned an indictment charging eight individuals with various federal violations related to a complex international drug trafficking conspiracy, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Debbie Mercer, 58, and Kayleigh Moffett, 33, both of Oklahoma City; Federico Machado, 53, of Florida; Carlos Villaurrutia, 40, of McAllen, Texas; and four others were named in an indictment charging them with conspiracy to manufacture and distribute cocaine, conspiracy to commit money laundering, conspiracy to commit wire fraud, conspiracy to commit export violations, and conspiracy to commit federal registration violations involving aircraft. The indictment details approximately $350 million in alleged criminal activity since 2016. The seven-count superseding indictment was returned by a federal grand jury earlier this week and unsealed today. The defendants have already been arrested and will be arraigned in federal court next week.
“The threat posed by transnational crime cannot be overstated,” said Acting U.S. Attorney Nicholas J. Ganjei. “The use of United States-registered aircraft by these criminal organizations and their networks of associates poses a clear and present danger to the security of our nation. The American public can expect EDTX to be relentless in its fight against the sometimes invisible, but always dangerous, threat of transnational organized crime.”
“The indictments resulting from this highly complex investigation showcases HSI’s unique and far-reaching authorities, serving as an example of what the global law enforcement community can accomplish when we work together,” said Ryan L. Spradlin, Special Agent in Charge, HSI Dallas. “We were able to deliver a significant blow to the transnational criminal organizations around the world by exposing a money laundering and drug trafficking scheme perpetuated by sophisticated drug cartels.”
“As this case demonstrates, we will aggressively investigate the illegal exportation of aircraft contrary to U.S. national security interests,” said Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office. “Alongside our Federal and State partners, OEE will leverage its unique criminal and administrative enforcement powers to detect and disrupt serious criminal schemes that violate U.S. export control law.”
“The indictment in this case demonstrate that individuals who choose to circumvent Federal regulations pertaining to aircraft registration and ownership will be pursued to the fullest extent of the law,” said Todd Damiani, Special Agent-In-Charge, Southern Region, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “The collaborative nature of this investigation is representative of the ongoing investigative work DOT-OIG performs to ensure aviation safety and maintain national security interests in order to prevent the nefarious acts these defendants are being charged with from occurring.”
According to unsealed court documents, the defendants allegedly purchased and illegally registered aircraft under foreign corporations and other individuals for export to other countries. The indictment specifically alleges that Mercer and Moffett, through their company Aircraft Guarantee Corporation (AGC), registered thousands of aircraft in Onalaska, Texas, an east Texas town without an airport.
According to the indictment, several of the illegally registered and exported aircraft were used by transnational criminal organizations in Colombia, Venezuela, Ecuador, Belize, Honduras, Guatemala, and Mexico to smuggle large quantities of cocaine destined for the United States. The indictment further alleges that illicit proceeds from the subsequent drug sales were then transported as bulk cash from the United States to Mexico and used to buy more aircraft and cocaine. According to the indictment, aircraft purchases were typically completed by wiring funds from casa de cambios and/or banks in Mexico to shell corporations operating in the United States as aircraft sellers/brokers.
The indictment describes that foreign governments seized United States-registered aircraft containing multi-ton shipments of cocaine. According to the indictment, the aircraft were held in trust by AGC for the benefit of foreign corporations or individuals. The indictment identifies Federico Machado, through his company South Aviation, and Carlos Villaurrutia, who used his companies TEXTON, TWA International, and Ford Electric, as aircraft sellers/brokers operating in the United States.
The indictment separately charges Mercer, Moffett, and Machado with engaging in a fraud scheme related to the acquisition of aircraft. According to the indictment, Machado recruited investors to invest in aircraft purchase deposits for sales transactions that never took place. Investors allegedly placed their funds in an escrow account held by Wright Brothers Title Company, which was owned and managed by Mercer and Moffett. Machado then allegedly used these funds for purposes other than the purchase of aircraft.
If convicted, the defendants face a minimum of 10 years and up to life in federal prison for the drug conspiracy charges and up to 20 years for the money laundering, export and wire fraud violations.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by Homeland Security Investigations (Dallas, Brownsville and Laredo offices); Department of Commerce, Bureau of Industry and Security (Dallas and Houston offices); Department of Transportation Office of Inspector General (DOT-OIG); Polk County Constable Precinct 1; Southeast Texas Export Investigations Group; Internal Revenue Service; and Federal Aviation Administration (FAA). This case is being prosecuted by Assistant U.S. Attorneys Ernest Gonzalez, Colleen Bloss and Robert Wells. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
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.
U.S. District Judge Jason Pulliam Addresses Employees of Eastern District as Part of New EDTX Distinguished Speaker SeriesRead the Press Release
BEAUMONT, Texas – The United States Attorney’s Office for the Eastern District of Texas is pleased to announce a new speaker series and welcomes as its first guest The Honorable Jason K. Pulliam, United States District Judge for the Western District of Texas.
When Judge Pulliam took his oath of office on August 9, 2019, he became the first African American judge appointed to the district court in the Western District of Texas. Judge Pulliam has previously served as Judge Advocate with the United States Marine Corps, a judge in Bexar County, and a Justice on the Texas Fourth Court of Appeals before his federal appointment. He was invited to address the employees of the U.S. Attorney’s Office about his path to judgeship and to share his perspective from the bench.
“The Eastern District of Texas strives to have an outsized, positive impact in our community, and to recognize the contributions of thought leaders across the state,” said Acting United States Attorney Nicholas J. Ganjei. “We are thrilled that Judge Pulliam could speak with us today, particularly as we honor the contributions of African Americans to our country during this year’s Black History Month.”
The annual celebration of Black History Month was made law in 1986 when Congress passed Public Law 99-244, designating February as National Black History Month. It is commemorated by the Association for the Study of African American Life and History, which establishes a national theme for each year. The theme for 2021 is “The Black Family: Representation, Identity, and Diversity,” and acknowledges the rich tapestry of the African American family.
Convicted Murderer Pleads Guilty to Federal Firearms ChargeRead the Press Release
TYLER, Texas – A Tyler, Texas man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Eric Cadell Gipson, 56, pleaded guilty to being a felon in possession of a firearm today before United States Magistrate Judge K. Nicole Mitchell.
According to information presented in court, on June 2, 2020, Gipson, a convicted felon, arranged for the purchase of 9mm pistol. Six days later, on June 8, 2020, Gipson took possession of the firearm. Gipson, having been previously convicted of murder, robbery and theft, was prohibited by law from owning or possessing firearms or ammunition.
“Prohibiting the possession of firearms by convicted felons is a critical component of keeping our communities safe, said Acting United States Attorney Nicholas J. Ganjei. “The Eastern District of Texas remains committed to keeping guns out of the hands of the most dangerous members of society.”
A federal grand jury returned an indictment charging Gipson with federal violations on Oct. 29, 2020. Under federal statutes, Gipson 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 United States Probation Office.
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 the Federal Bureau of Investigation, Smith County Sheriff’s Office and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Alan Jackson.
Bank President’s Arson and Fraud Scheme Goes up in SmokeRead the Press Release
SHERMAN, Texas – A former bank president has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Anita Gail Moody, 57, of Cooper, Texas pleaded guilty on June 5, 2020, to conspiracy to commit bank fraud and arson and was sentenced to 96 months in federal prison today by U.S. District Judge Amos L. Mazzant, III. Moody has additionally agreed to pay restitution in the amount of $11,136,241.82.
According to information presented in court, on May 11, 2019, while Moody was President of Enloe State Bank in Cooper, Texas, the bank suffered a fire that investigators later determined to be arson. The fire was contained to the bank’s boardroom, however the entire bank suffered smoke damage. Investigation revealed that several files had been purposefully stacked on the boardroom table, all of which were burned in the fire. Notably, the bank was scheduled for a review by the Texas Department of Banking the very next day. Further investigation revealed Moody had created false nominee loans in the names of several people, including actual bank customers. Moody eventually admitted to setting the fire in the boardroom to conceal her criminal activity concerning the false loans. She also admitted to using the fraudulently obtained money to fund her boyfriend’s business, other businesses of friends, and her own lifestyle. The fraudulent activity, which began in 2012, resulted in a loss to the bank of approximately 11 million dollars.
“Criminal conduct that affects the financial health of a small, local lender can send a negative ripple effect throughout the entire community,” said Acting United States Attorney Nicholas J. Ganjei. “The Eastern District of Texas will vigorously prosecute cases, such as the one here, that undermine public confidence in our local banks. We are also deeply appreciative of the excellent investigative work of the FDIC Office of the Inspector General, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in bringing this matter to a close.”
Jeannie Swaim, who served as vice president of Enloe State Bank, and who was also involved in fraudulent conduct, was previously sentenced to 24 months’ imprisonment, and agreed to pay restitution in the amount of $410,675.18.
This case was investigated by the FDIC-OIG and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorneys Maureen Smith and Wes Wynne.
Vidor Woman Sentenced to Federal Prison for Opioid Overdose DeathsRead the Press Release
BEAUMONT, Texas – A 51-year-old Vidor, Texas, woman has been sentenced to federal prison for maintaining a drug-involved premises in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Michelle Lea Harrington pleaded guilty on Sep. 10, 2020. Today, she was sentenced to 60 months in federal prison by U.S. District Judge Marcia A. Crone.
“Individuals who contribute to the unlawful trafficking of prescription opiates will be punished,” said Acting U.S. Attorney Nicholas J. Ganjei. “This conviction of a landlord who permitted the distribution of opioid pills in her residence is a clear message that our community will not tolerate those perpetuating the opioid crisis in southeast Texas.”
According to information presented in court, Harrington rented out a residence in Vidor, Texas to three individuals, including Catherine Ardis. Harrington lived there as well and knew that Ardis distributed hydromorphone pills, also known as Dilaudid, from the residence. At least three persons died as a result of opiates purchased at the home. Medical examination determined that the victims died from poly-drug toxicity resulting from the use of hydromorphone pills.
Catherine Ardis was previously sentenced to 15 years.
This case was investigated by the U.S. Drug Enforcement Administration, Vidor Police Department, Jefferson County Sheriff’s Office, Beaumont Police Department, Port Arthur Police Department, and was prosecuted by Assistant U.S. Attorney Michael A. Anderson.
Scam Alert: Feds Warn Residents About Fraudsters Seeking to Profit from DisasterRead the Press Release
BEAUMONT, Texas – The United States Attorney’s Office for the Eastern District of Texas reminds the public that fraudsters soon follow disaster.
As Texas suffers from historic freezing and resulting property damage from ice and burst pipes, it is likely that individuals will seek to fraudulently profit from the attendant stress.
“Fraudsters often appear from nowhere to take advantage of natural disasters, which is what occurred in the early days of the pandemic. Now, we are concerned that weary homeowners will fall prey to unsolicited calls regarding insurance claims, home warranties, or bogus government grants” says Acting U.S. Attorney Nicholas J. Ganjei. “If you did not solicit the call, hang up.”
Millions of people fall victim to scams every year. If you think you have become a victim, contact your local law enforcement authority. You can also submit a report to https://ReportFraud.ftc.gov.
For more tips on how to identify a scam, visit www.consumer.ftc.gov/features/scam-alerts.
Houston Women Sentenced for Trading Illegal Drugs for Automatic WeaponsRead the Press Release
BEAUMONT, Texas – Two Houston women have been sentenced for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Cristal Lagunas, 26, and Iris Venture, 22, were indicted by a federal grand jury and charged with conspiracy to possess with intent to distribute cocaine and methamphetamine on March 18, 2020. They pleaded guilty in September 2020. Today, both defendants were sentenced to 135 months in federal prison by U.S. District Judge Marcia A. Crone.
“This case exemplifies how multiple federal law enforcement agencies can work together to take down those involved in the illegal drug trade,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to bring all resources to the fight against unlawful narcotics and firearms trafficking.”
According to information presented in court, on March 10, 2020, Lagunas and Ventura met an undercover federal agent at a credit union in Beaumont, Texas, to exchange a kilogram of methamphetamine and $600 cash for three fully automatic AK-47 rifles.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Texas Men Sentenced in Counterfeit Identification Documents ConspiracyRead the Press Release
TYLER, Texas – Two Texas men have been sentenced to federal prison for criminal violations in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Mario Eleuterio Garcia-Sevilla, 44, of Grand Saline, Texas, and Juan Valazquez Delgadillo, 50, of Garland, Texas, pleaded guilty in September 2020, to conspiracy to produce and transfer false identification documents. Today, United States District Judge Jeremy D. Kernodle sentenced Garcia to 37 months in federal prison, and sentenced Delgadillo to a prison term of 30 months.
“Identification document fraud is a direct threat to the security of the United States and its citizens,” said Assistant United States Attorney Nicholas Ganjei. “Disruption of criminal enterprises that aim to compromise document security is, and should be, a primary focus of federal law enforcement.”
According to information presented in court, beginning in January 2019, Garcia and Delgadillo conspired to produce and transfer fictitious United States identification documents to others in the Eastern District of Texas. The false documents included United States Social Security cards and Permanent Residence cards. Garcia obtained the documents from Delgadillo and then transferred them to individuals throughout the East Texas area. Garcia and Delgadillo were indicted by a federal grand jury on Feb. 27, 2020.
This case was investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, and Texas Department of Public Safety. This case was prosecuted by Assistant United States Attorney Alan R. Jackson.
Grayson County Man Indicted for Producing Child PornographyRead the Press Release
SHERMAN, Texas – A Sherman, Texas man has been indicted on charges involving the sexual exploitation of children in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Brian Christopher Welch, 43, was arrested on Feb. 3, 2021, pursuant to a federal criminal complaint charging him with production and distribution of child pornography. Welch was indicted by a federal grand jury this week and formally charged with child pornography violations.
“This case shows that there is no one type of individual who preys on children. Child sexual predators come from all backgrounds, genders, races, and ethnicities – and they are often active members of their community,” said Acting U.S. Attorney Nicholas J. Ganjei. “Parents are urged to use caution in allowing any outsider, including friends and people in positions of trust, to have unsupervised access to their children. The Eastern District is proud of its robust partnership with federal and state law enforcement agencies, and is committed to utilizing all available resources, both nationally and internationally, to locate those individuals who use internet-based technologies to exploit children.”
According to court documents, between December 2016 and August 2020, Welch is alleged to have used digital devices to record a minor engaged in sexually explicit conduct. Additionally, Welch is charged with distributing child pornography to another person, and with transportation of child pornography, on Jan. 29, 2021.
If convicted, Welch faces a minimum of 15 years and up to 30 years in federal prison.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's 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.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
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.
Couple Behind “My Buddy Loans” Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
TEXARKANA, Texas – A Liberty County, Texas, man and woman have been indicted for filing hundreds of fraudulent Economic Injury Disaster Loan (EIDL) applications with the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Clifton Pape, 45, and Sally Jung, 58, both of Cleveland, Texas, allegedly operated a COVID relief fraud scheme known as “My Buddy Loans,” that garnered them more than $700,000 in fraud proceeds and resulted in at least $1.3 million in loss to the United States. Pape and Jung are charged by way of a federal indictment that charges violations of 18 U.S.C. §§ 1349 and 2326, conspiracy to commit telemarketing wire fraud victimizing ten or more persons over the age of fifty-five; 18 U.S.C. § 1343, wire fraud; and 18 U.S.C. §§ 1028A and 2, aggravated identity theft and aiding and abetting.
“We believe this investigation—to date—involves the single largest number of individual fraudulent EIDL applications associated with the CARES Act,” said Acting U.S. Attorney Nicholas Ganjei. “We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
“This telemarketing scheme exploited those seeking assistance during the COVID pandemic, including many who were over the age of 55,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “We are asking members of the press and the community to encourage those victimized by this fraud scheme—including hundreds of residents in Texas and across the country—to file a complaint with the NCDF.”
“This case demonstrates the investigative capabilities of the United State Secret Service and should service as a strong deterrent to anyone considering taking part in a similar scam,” said William Mack, Resident Special Agent in Charge of the Secret Service Tyler Texas Resident Office. “This investigation highlights our outstanding partnership with the SBA OIG’s Central Region and we will continue to work with our law enforcement partners to disrupt criminal groups who target and victimize our communities. We thank members of the public and the banking community who have been vigilant, and we encourage them to continue reporting any suspicious activity involving COVID relief.”
According to court documents filed in U.S. District Court in Texarkana, Pape and Jung operated the telemarketing scheme under the name My Buddy Loans. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned a few acres of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information.
Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled. On one occasion, Pape used the fraud proceeds to pay a traffic ticket. On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at a resort in San Antonio, Texas. A picture from that stay shows Pape and Jung celebrating over sparkling wine. Pursuant to a seizure warrant, agents seized the $505,535.04 in fraud proceeds remaining in the account.
The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Under federal statutes, Pape and Jung face up to 168 years in federal prison and a $6,000,000 fine at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the U.S. Secret Service and the SBA Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Jefferson County Engineer Guilty of more than $10 Million Covid Relief FraudRead the Press Release
BEAUMONT, Texas – A 30-year-old Beaumont, Texas engineer pleaded guilty today for filing fraudulent bank loan applications seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Senior Executive Michael J. Mullaney for Law Enforcement Operations, Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG), Inspector General Hannibal “Mike” Ware of the SBA-OIG, and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Shashank Rai pleaded guilty to one count of making false statements to a bank. He was charged on May 13, 2020, with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
“The Payroll Protection Program was designed to help struggling businesses and hardworking Americans, not individuals who concoct imaginary businesses and employees,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to work diligently with our law enforcement partners to investigate and prosecute those who exploit this critical, taxpayer-funded program.”
As part of his guilty plea, Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. Rai made two fraudulent claims to two different lenders for seek loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). 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.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
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 for the Eastern District of Texas are prosecuting 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.
Father and Son Guilty of Defrauding Department of Housing and Urban Development Through Texarkana Alzheimer’s Assisted Living FacilityRead the Press Release
TEXARKANA, Texas – A Texarkana, Texas, doctor has pleaded guilty today to a federal fraud violation, announced Eastern District of Texas Acting U.S. Attorney Nicholas J. Ganjei.
Dr. Rafael Otero, 68, pleaded guilty to an information charging him with defrauding the U.S. Department of Housing and Urban Development (HUD) before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Dr. Otero agreed to pay restitution to HUD.
“Dr. Otero, and his son Antonio Otero, exploited a HUD-insured mortgage program designed to provide affordable housing for those suffering from diseases like Alzheimer’s,” said Acting U.S. Attorney Nicholas Ganjei. “While they left the HUD-insured mortgage unpaid, the Oteros took hundreds of thousands of dollars. Because of their actions, the American taxpayers ultimately suffered a loss of over $3.6 million.”
According to information presented in court, Dr. Otero was the majority owner of the Magnolia Alzheimer’s Assisted Living facility in Texarkana, Texas, and his son, Antonio Otero, was the facility’s administrator. In order to secure millions of dollars in necessary funding, the Oteros obtained a loan that was insured by HUD. The HUD-insured loan provided a favorable interest rate and did not require the owners of Magnolia to take personal responsibility for the loan in the event of a default. Instead, HUD would suffer the financial loss in the event that Magnolia defaulted on the loan. As a condition of this federal benefit, Magnolia agreed to be bound by a regulatory agreement with HUD that prohibited the owners from receiving money from Magnolia, unless the loan was being paid and Magnolia had surplus cash.
But instead of paying the HUD-insured loan, and in violation of the regulatory agreement they signed with HUD, the Oteros took hundreds of thousands of dollars from Magnolia. Dr. Otero received more than $150,000 from Magnolia in unauthorized compensation and other payments. Antonio Otero took even more money from Magnolia, using it to pay for $3,952 of camera equipment, a $3,247 watch, $2,520 in landscaping for his personal residence, a $27,408 personal mortgage payment, a $12,750 down payment on a personal vehicle, and $1,540 tickets to the Dallas Cowboys. Additionally, he took money from Magnolia and gave it to other individuals, including $13,000 for cosmetic surgery. When Dr. Otero learned that his son had been stealing money from Magnolia, Dr. Otero did not report him to authorities or remove him from his position. After Dr. Otero learned of his son’s theft, Antonio Otero stole an additional $62,000 from Magnolia.
Under federal statutes, Dr. Otero faces up to one year in federal prison at sentencing. The 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.
Antonio Otero pleaded guilty to equity skimming on October 28, 2019, and was sentenced on June 2, 2020, to 46 months in prison by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Antonio Otero to pay $2 million in restitution to HUD.
This case was investigated by the United States Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Engineer Pleads Guilty to More Than $10 Million of COVID-Relief FraudRead the Press Release
A Texas engineer pleaded guilty today for filing fraudulent bank loan applications seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas,
Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency (FHFA) – Office of Inspector General (OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) – OIG, Inspector General Hannibal “Mike” Ware of the SBA-OIG and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.Shashank Rai, 30, of Beaumont, pleaded guilty to one count of making false statements to a bank. He was charged on May 13, 2020, with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
As part of his guilty plea, Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. Rai made two fraudulent claims to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). In the application submitted to the first lender, 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.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
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 Frank Coan and Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting 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.
Tyler County Meth Dealer Guilty of Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Woodville, Texas, man has pleaded guilty to federal firearms and drug trafficking violations in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei today.
Christopher Dashawn Montoya, 26, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime today before U.S. District Judge Michael Truncale.
“The United States Attorney’s Office for the Eastern District of Texas remains committed to eliminating methamphetamine trafficking in our communities,” said Acting United States Attorney Nicholas Ganjei. “Our resolve is even greater in cases, such as here, where a drug dealer possesses firearms to aid his drug trafficking efforts.”
According to information presented in court, on December 1, 2019, Montoya was arrested at a Polk County residence on multiple outstanding warrants. A search of the residence resulted in the seizure of approximately one kilogram of methamphetamine, marijuana, a large amount of cash, a digital scale, and a firearm. A search of Montoya’s vehicle parked at the residence revealed a backpack containing another two firearms, and more illegal narcotics.
A federal grand jury returned an indictment charging Montoya with firearms and drug trafficking violations on July 1, 2020. As a result of his guilty pleas, under federal statutes, Montoya faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Polk County Sheriff’s Office; the Woodville Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Drug Enforcement Administration (DEA) and prosecuted by Special Assistant United States Attorney Tommy L. Coleman.
Cherokee County Domestic Violence Offender Sentenced for Possessing FirearmRead the Press Release
TYLER, Texas – A 53-year-old Rusk, Texas man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting United States Attorney Nicholas J. Ganjei.
Larry Van Butcher, a.k.a. “Red,” pleaded guilty on Oct. 29, 2020, to being a prohibited person in possession of a firearm and was sentenced to 21 months in federal prison by United States District Judge Jeremy D. Kernodle today.
“Domestic violence offenses represent a significant public safety concern in our communities, and, in the most tragic circumstances, result in a pattern of abuse and escalating violence,” said Acting United States Attorney Nicholas Ganjei. “Restricting domestic violence offenders from possessing the tools to perpetrate similar or more severe crimes is a priority for the Department of Justice.”
According to information presented in court, on Nov. 5, 2019, Butcher was interviewed by law enforcement about illegal drug and firearms activities occurring at his residence. After confessing to using methamphetamine and marijuana as well as possessing numerous firearms, Butcher admitted that he had been previously convicted in Cherokee County, Texas, for the misdemeanor offense of Assault Family Violence, which is a crime of domestic violence resulting in a federal prohibition on possessing firearms. Butcher advised that he knew he was prohibited from possessing firearms and could not purchase firearms for himself. Law enforcement officers then traveled to Butcher’s residence and seized 20 firearms, including two that had been reported stolen. Butcher was indicted by a federal grand jury on June 18, 2020, and charged with federal firearms violations.
This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Texas Department of Public Safety; the Smith County Sheriff’s Office; and the Tyler Police Department. This case was investigated by and is prosecuted by Assistant United States Attorney Lucas Machicek.