Eastern District of Texas
Press releases recorded for this federal judicial district.
Katy, Texas Man Indicted for Trafficking Drugs Through BeaumontRead the Press Release
BEAUMONT, Texas – A 38-year-old Katy, Texas man has been indicted for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Paul Andrew Cabiro was indicted by a federal grand jury on March 4, 2020 and charged with possession with intent to distribute LSD, methamphetamine, cocaine, heroin, and fentanyl and possession of a firearm in furtherance of a drug trafficking offense.
According to the indictment, Feb. 21, 2020, Cabiro was stopped for a traffic violation on Interstate-10in Beaumont. During the stop, a narcotics canine alerted on the vehicle. Inside the vehicle, officers discovered 480 dosage units of LSD, approximately 48.2 grams of methamphetamine., approximately 48 grams of cocaine, approximately 53.2 grams of “China White” heroin, and approximately 68.4 grams of “tar” heroin, two firearms and over $10,000 cash.
If convicted, Cabiro faces up to life in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County Men Indicted for Beaumont CarjackingRead the Press Release
BEAUMONT, Texas – Two Beaumont men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Thaddiaus Joseph Thomas, 34, and Tremaurice Arthur Randall, 24, were indicted by a federal grand jury on March 4, 2020 and charged with conspiracy to commit carjacking, carjacking, possession of a firearm during a crime of violence, and possession of a firearm by a prohibited person.
According to the indictment, on Dec. 21, 2019, Thomas and Randall traveled to the Excellent Carwash located at 5010 Haden Road in Beaumont, Texas, wearing masks, where they approached a man who was sitting in the driver’s seat of his 2003 Dodge Ram pickup truck. Thomas pointed a pistol at the man and Randall ordered him to “give it up” before Randall and Thomas then pulled the man out of his truck and threw him on the ground. Thomas then hit the man's head with the pistol and fired one shot toward his feet. Randall and Thomas then entered the pickup truck and drove away.
If convicted, Thomas and Randall each face up to 20 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Houston Man Sentenced in Beaumont Gas Pump Skimming SchemeRead the Press Release
BEAUMONT, Texas –A 36-year-old Houston man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Carlos Garcia pleaded guilty on July 11, 2019, to conspiracy to commit access device (credit card) fraud and was sentenced to 18 months in federal prison by U.S. District Judge Thad Heartfield on March 5, 2020.
According to information presented in court, on Nov. 10, 2017, law enforcement officers responded to a suspicious activity call at the Gator’s convenience store located at 2890 Dowlen Road in Beaumont, Texas. Upon arrival, the officers located Garcia and Alfredo Angel Almaguer-Almira, along with a red Dodge truck next to a gas pump at the store. The door of the truck was open revealing a credit card skimming device consisting of a computer chip and two connector wires. There was wet caulk around the door frame and on the floorboard of the truck was a caulk gun and a screwdriver. A search of Garcia revealed he had a set of universal gas pump keys in his pocket. Forensic analysis of the skimming device found 258 credit card account numbers had been recorded without authorization, many of the numbers identified as belonging to Beaumont residents and businesses who frequently used the gasoline pumps. Bank records showed that the available credit on the 258 accounts totaled approximately $1.2 million.
Garcia and Almaguer-Almira were indicted by a federal grand jury on Oct. 3, 2019. Almaguer-Almira pleaded guilty and was sentenced to 10 months in federal prison on Jan. 9, 2020.
This case was investigated by the U.S. Secret Service and the Beaumont Police Department and prosecuted by the Assistant U.S. Attorney Robert L. Rawls.
Dallas Stripper and White Supremacist Gang Member Convicted of Obstruction of JusticeRead the Press Release
TEXARKANA, Texas – A 28-year-old Dallas, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Collin Garrett Hayden was found guilty by a jury of obstruction of justice on March 6, 2020 following a five-day trial before U.S. District Judge Robert W. Schroeder, III. Hayden pleaded guilty to possessing a weapon in jail before the trial began.
According to information presented in court, in 2016, law enforcement began working a drug trafficking investigation into methamphetamine trafficking from Dallas into East Texas. During the investigation, Hayden and his roommate were heard on an undercover recording offering to sell drugs to another individual. Further investigation revealed Hayden had been personally selling cocaine in the Dallas strip clubs in which he performed and had been supplying methamphetamine to a Shreveport, Louisiana, buyer who was traveling through East Texas to purchase from Hayden. When Hayden became aware of his pending federal charges, he turned on his roommate and threatened to use his association with a white supremacist group to have the roommate killed. While in custody at the Titus County jail, Hayden obtained a shank-type weapon and threatened to kill any guards who entered his cell in retaliation for a guard reporting Hayden had attempted to obtain a cell phone by bribe. Hayden was indicted by a federal grand jury on April 19, 2017, and charged with federal violations.
Under federal statutes, Hayden faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
The case was investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Donald Carter.
Jefferson County Felon Convicted of Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 32-year-old Beaumont, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Larry Young, Jr., was found guilty of being a felon in possession of a firearm following a two-day trial before U.S. District Judge Marcia A. Crone. The jury returned their verdict in the afternoon on Tuesday, March 3, 2020.
According to information presented in court, on Jan. 17, 2019, law enforcement officers executed a search warrant at a home where Young was residing. Inside the residence, officers discovered several firearms, including one which had been reported as stolen, a ballistic vest, and numerous rounds of ammunition. Further investigation revealed Young had been convicted of multiple felonies and as a convicted felon, prohibited from owning or possessing firearms or ammunition. Young was indicted by a federal grand jury on June 5, 2019, and charged with firearms violations.
Under federal statutes, Young faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of firearms, 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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Russell E. James and Rachel Grove.
Cooke County Felon Convicted of Firearms ViolationsRead the Press Release
PLANO, Texas – A 38-year-old Gainesville, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
William Randall Brannan was found guilty of being a felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug trafficking crime today following a week-long trial before U.S. District Judge Sean D. Jordan.
According to information presented in court, in January 2019, Brannan, while delivering methamphetamine, discharged a firearm in a Gainesville residence, and again outside the home, while attempting to intimidate others into returning methamphetamine which he believed had been stolen from him. On Feb. 28, 2019, Brannan was located in Arlington, Texas and fled as law enforcement officers attempted to arrest him. He then led police on a high-speed chase before crashing the vehicle. The gun used in the Gainesville shooting was found in the vehicle. Further investigation revealed Brannan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Brannan was indicted by a federal grand jury on March 14, 2019.
“Brannan has a long criminal history, and continues to mix drugs, guns, and violence,” said U.S. Attorney Joseph D. Brown. “This conviction should keep him off the streets for a long time.”
Under federal statutes, Brannan faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the 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 Cooke County Sheriff’s Office, the Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Matthew Johnson and Chris Eason.
Dallas Felon Sentenced for Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A 46-year-old Dallas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Steven Ray Breckenridge pleaded guilty on Oct. 7, 2019, to being a felon in possession of a firearm and was sentenced to 51 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, on June 19, 2019, Breckenridge was stopped in Canton, Texas by law enforcement. A search of the vehicle was conducted as Breckenridge had an active warrant. During the search, officers located a pistol. Further investigation revealed Breckenridge was a convicted felon, having been previously convicted of eight felonies. It is a violation of federal law for a convicted felon to own or possess a firearm or ammunition. Breckenridge was indicted by a federal grand jury on Aug. 21, 2019, and charged with federal firearms violations.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Frank Coan.
Two Sentenced for Liberty County Federal ViolationsRead the Press Release
BEAUMONT, Texas – Two Texas men have been sentenced to federal prison for drug and gun violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Tommy Joe Tomlin, 48, of Lubbock, pleaded guilty on Aug. 15, 2019, to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 120 months in federal prison for the drug trafficking violation and 60 months for the firearms violation. Tomlin was sentenced today by U.S. District Judge Marcia A. Crone. Judge Crone ordered the sentences to run consecutively for a total of 180 months in federal prison.
Patrick Ray Glenn, 35, of San Antonio, pleaded guilty on July 31, 2019, to being a felon in possession of a firearm and was sentenced to 110 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, in February 2019, Tomlin and Glenn, both convicted felons and members of the Aryan Brotherhood of Texas, were arrested in Cleveland, Texas following a drug transaction at an area hotel.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Jefferson County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 27-year-old Beaumont, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Bernard James Bell pleaded guilty on July 23, 2019, to being a felon in possession of a firearm and was sentenced to 71 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Apr. 11, 2019, law enforcement officers began investigating a homicide that occurred in Beaumont’s west end. On Apr. 14, 2019, investigators learned that Bell was provided a firearm that was used in connection with that homicide so that he could dispose of it or hide it. After speaking with Bell, investigators recovered the firearm and determined that Bell had possessed it. Further investigation revealed Bell is a convicted felon having several convictions in Jefferson County, Texas in 2011 and 2012. As a convicted felon, Bell is prohibited from owning or possessing firearms or ammunition. Bell was indicted on those charges by a federal grand jury on May 1, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
Federal Inmate Sentenced for Beaumont Prison EscapeRead the Press Release
BEAUMONT, Texas – A federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Victor Luis Pescador, 57, of Laredo, pleaded guilty on Nov. 21, 2019, to escape and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone. This sentence will be added to the remainder of the federal sentence Pescador was serving as a result of his 2007 conviction on federal drug trafficking charges at the time of his escape from federal custody earlier this year.
According to information presented in court, on July 12, 2019, Pescador and another inmate were discovered missing from the Bureau of Prison Camp Facility in west Jefferson County. Pescador was subsequently arrested near Roma, Texas on Aug. 29, 2019.
“This is one of several inmates who have walked away in recent months from the prison camp, which is a minimum security facility for low risk inmates, usually serving the final portion of their sentences,” said United States Attorney Joseph D. Brown. “Regardless of the circumstances, they escaped from a prison facility and anyone who does so will be prosecuted, along with anyone on the outside who helps the escape.”
Pescador was sentenced to 20 years in federal prison in 2007 for possession with intent to distribute over 1000 pounds of marijuana in the Southern District of Texas.
This case was investigated by the Federal Bureau of Prisons and the United States Marshals Service and prosecuted by Assistant U.S. Attorney Joe Batte.
Guatemalan Attorney General Visits Eastern District of TexasRead the Press Release
PLANO, Texas – Attorney General Maria Consuelo Porras Argueta, of the Republic of Guatemala, joined United States Attorney Joseph D. Brown, Adam Cohen, Director of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF), and Drug Enforcement Administration Assistant Special Agent in Charge of the Dallas Field Division Guy Baker in the Eastern District of Texas today to discuss investigations and advancements in joint efforts to curtail transnational criminal organizations operating between the United States and Guatemala.
During the meeting, officials discussed the surrender and extradition of Erik Salvador Suniga Rodriguez, also known as “El Pocho.” Suniga Rodriguez was indicted by a federal grand jury on June 13, 2018 in the Eastern District of Texas and charged with drug and money laundering violations. The mayor of Ayutla, a town on the border with Mexico, Suniga Rodriguez surrendered to U.S. Drug Enforcement agents in Guatemala on Dec. 19, 2019 and was extradited to McKinney, Texas. His trial is scheduled to begin in the federal courthouse in Plano.
Suniga Rodriguez has been identified by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) as a significant foreign narcotics trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). As a result, all assets in which Suniga Rodriguez has an interest in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
“We are very appreciative of the cooperation of the government of Guatemala as we jointly fight narco-trafficking,” said United States Attorney Joseph D. Brown. “Attorney General Porras visit shows her country’s commitment to standing up against the drug cartels and her recognition that both of our countries benefit when we move aggressively against these criminal organizations. We have excellent juries and judges in East Texas that do not tolerate crime and these kinds of international prosecutions are one of our priorities.”
“This case highlights the importance of law enforcement coordination and information sharing,” said OCDETF Director Adam Cohen. “By coordinating effort and leveraging resources, we are able to disrupt and dismantle the operations of criminal networks that pose the greatest threat to our communities and to the Nation.”
“Criminals who attempt to stay above the law through positions of public trust will meet swift justice through DEA’s tireless efforts to dismantle Transnational Criminal Organizations across the world,” said DEA Special Agent in Charge Eduardo A. Chavez. “We applaud the bravery and resolve of our Guatemalan counterparts to remain committed to the rule of law and the DEA will continue to work together to ensure consequences come to those who profit from illicit drugs in our neighborhoods.”
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF agents and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States.
The Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s return from Guatemala. This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
Orange County Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 30-year-old Vidor, Texas man has pleaded guilty to federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown.
Taylor Graham Cozart pleaded guilty to being a felon in possession of a firearm today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on July 30, 2019, law enforcement officers responded to a motorcycle accident on Interstate Highway 10 in Orange County, Texas. The defendant was the driver of the motorcycle, which was later determined to be stolen. Cozart was transported to a nearby hospital and the accident scene was cleared, during which time officers located a backpack affixed to the motorcycle. The backpack contained a pistol, ammunition, $3,000 cash, methamphetamine, Xanax and Hydrocodone pills. Further investigation revealed Cozart was a convicted felon having three prior felony drug convictions. As a convicted felon, Cozart is prohibited from owning or possessing firearms or ammunition.
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.
Under federal statutes, Cozart faces up to 10 years 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.
This case was investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Houston Man Guilty of Interstate Transportation of Stolen GoodsRead the Press Release
BEAUMONT, Texas – A 44-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Curtric DeMaine White pleaded guilty to interstate transportation of stolen property today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, during the early morning hours of July 31, 2019, White and others burglarized Best Buy in Mobile, Alabama and D’Iberville, Mississippi. Later in the evening of that same day, law enforcement officers conducted a traffic stop on Interstate 10 West in Vidor, Texas on a vehicle having a fictitious license plate. White was identified as one of the two occupants of the vehicle. While questioning the occupants, the officer noticed a steel security cage in the vehicle. After getting consent to search, the cage was found to have the Best Buy “Geek Squad” insignia on it and contained approximately 20 new Apple iPhones, all of which were determined to belong to Best Buy. In total, the two Best Buy stores suffered a combined loss of $117,363.97 in stolen items and damage to their property.
Under federal statutes, White faces up to 10 years 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.
This case was investigated by the Federal Bureau of Investigation and the Vidor Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Florida Woman Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 35-year-old St. Petersburg, Florida woman has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Erica Ann Lang pleaded guilty to conspiracy to distribute and possess methamphetamine today before U.S. Magistrate Judge Keith F. Giblin. Ryan Andrew Davis, 35, of Clearwater, Florida pleaded guilty to the same charge on Jan. 16, 2020.
According to information presented in court, on Oct. 24, 2019, Davis and Lang were stopped for a traffic violation on Interstate Highway 10 East in Beaumont, Texas. A certified narcotics detection dog alerted on the car and a search was performed revealing approximately one kilogram of methamphetamine hidden in the trunk of the vehicle.
Under federal statutes, Davis and Lang each face at least 10 years and up to life 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.
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.
Smith County Woman Sentenced in Counterfeit Immigration Documents ConspiracyRead the Press Release
TYLER, Texas –A 53-year-old Tyler, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Virginia Colis Rodriguez pleaded guilty on Sep. 30, 2019 to conspiracy to produce and transfer false identification documents and was sentenced to 20 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. The court also ordered forfeiture of firearms and ammunition; a computer and three printers; $30,961.09 in currency and bank accounts; and two pieces of real property in Flint, Texas.
According to information presented in court, beginning in April 2009, Rodriguez conspired with others, including her husband, Jose Luis Marquez Rodriguez, to produce and sell fictitious U.S. identification documents to others. The false documents included U.S. Social Security cards and Permanent Residence cards. Rodriguez admitted to being personally responsible for the transfer of over 25 false identification documents as part of this conspiracy. Marquez Rodriguez will be sentenced later this month. The defendants were indicted by a federal grand jury on April 23, 2019.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Tyler Resident Agency, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.
Collin County Man Sentenced to 35 Years for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – A 41-year-old Allen, Texas man has been sentenced for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Richard Denver Belden pleaded guilty on June 20, 2019 to receipt and possession of child pornography and was sentenced to 420 months in federal prison by U.S. District Judge Amos Mazzant on Feb. 6, 2020.
According to information presented in court, in May 2018, a detective with the Plano Police Department was conducting an undercover investigation into Internet programs know for trading child pornography and located a user, later identified as Belden, who was making a large quantity of child pornography available for download. Over the course of two days, the detective downloaded over 4,000 images and videos of child pornography from Belden.
Members of the Collin County Sheriff's Office obtained a search warrant for Belden's apartment, in Allen, Texas and on May 15, 2018, the Sheriff's Office and Plano Police Department executed the search warrant. Upon entering the residence, they discovered Belden actively downloading and distributing child pornography on a laptop computer. In addition to the laptop, Belden owned a tower containing 15 hard drives, totaling 57 TB of storage. The Plano Police Department and FBI child exploitation task force spent months forensically analyzing Belden's digital media. Officers located thousands of images and videos of child pornography, including depictions of children as young as toddlers and depictions of sadistic or masochistic abuse. Belden was indicted by a federal grand jury in June 2018.
During the sentencing hearing, a Plano Police Department Detective testified about the undercover investigation, the forensic review of Belden's devices, and the content of those devices. Belden's sentencing guidelines included a term of imprisonment of 210 to 262 months. The government requested that the Judge vary upward and impose a sentence of 420 months. Based on Belden's history and characteristics and the nature and circumstances of his offense, Judge Mazzant granted the government's motion and sentenced Belden to a total term of 420 months (35 years) imprisonment, to be followed by 20 years of supervised release.
“These type of cases show the real depravity of parts of our society,” said U.S. Attorney Joseph D. Brown. “We are fortunate that law enforcement is out there looking for these people.”
“Today’s result is the product of the outstanding collaboration between the FBI and its local partners,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI, through the North Texas Child Exploitation and Human Trafficking Task Force, will continue to work tirelessly to keep our kids safe. This lengthy sentence will hopefully serve as a warning for all those who would seek to prey on the most vulnerable among us.”
This case was prosecuted 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 North Texas Child Exploitation and Human Trafficking Task Force, which is made up of FBI agents and officers from the Dallas, Plano and Grand Prairie Police Departments and Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.
Beaumont Couple Guilty of Falsifying Tax ReturnsRead the Press Release
BEAUMONT, Texas –A Beaumont, Texas business owner and his wife have been convicted of federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted on Feb. 5, 2020 by a jury following a three-day trial before U.S. District Judge Marcia A. Crone. The Brocatos were found guilty of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.
According to information presented in court, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated for tax purposes as an S corporation. The Brocatos were the sole shareholders of the company with Judith Brocato as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity. The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocatos underreported income received by checks from numerous customers of the company after having the checks cashed rather than depositing the checks into the company accounts. They then purposefully failed to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.
“The obligation of all of us to pay our taxes is important, and no one should forget that there are criminal penalties for failing to pay your taxes as required,” said United States Attorney Joseph D. Brown. “And it is again tax season, so this verdict is a timely reminder.”
Under federal statutes, the Brocatos each face up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls and John B. Ross
Cass County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
MARSHALL, Texas – A 41-year-old Hughes Springs, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Oscar Dean Davis pleaded guilty to conspiracy to distribute and distribution of methamphetamine today before U.S. Magistrate Judge Roy S. Payne.
According to information presented in court, Davis was the leader of an illegal drug distribution network responsible for obtaining multiple-kilogram quantities of methamphetamine from a Mexican-based supplier and selling them throughout East Texas. Davis admitted to acquiring large numbers of firearms, including pistols, rifles, and high-caliber weapons, and transporting them to the U.S.-Mexico border as a medium of exchange for methamphetamine. Finally, Davis admitted to directing others to use money services businesses to wire transfer proceeds from methamphetamine sales to his supplier in Mexico.
Fourteen other individuals have previously entered pleas of guilty for their involvement in the drug and firearms trafficking organization. Stephanie Bennett Mata, 35, of Daingerfield; Gary O'Neal Gibson, 62, of Henderson; Felix Antonio Jaime, 37, of Mt. Pleasant; Charlie Jake Porter, 34, of Marietta; Tony King, 41, of Daingerfield; and Gerald Wayne Furlow, 55, of Hughes Springs; each pleaded guilty to possessing or conspiring to possess with the intent to distribute methamphetamine. Raymond Danny Moore, 43, of Avinger; Jennifer Michelle Kirkham, 39, of Jena, Louisiana; Donna Gail Sertuche, 53, of Hughes Springs; Jamie Nicole Browning, 40, of Gilmer; Joshua Nickie Soto, 35, of Leesville, Louisiana; and James Drakeford Scholl, 41, of Naples; pleaded guilty to either unlawfully obtaining firearms from licensed dealers or transporting firearms to the U.S.-Mexico border in furtherance of the drug trafficking conspiracy. Christina Felipe, 37, of Hughes Springs, and Angelica Arreola, 28, of El Paso, have pleaded guilty to conduct including transferring or transporting money from the U.S. to Mexico.
Under federal statutes, Davis 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 the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Davis was indicted by a federal grand jury on Oct. 10, 2018 and charged with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Two Sentenced in North Texas Multi-Million Dollar Investment Fraud SchemeRead the Press Release
SHERMAN, Texas –Two Texas men have been sentenced to federal prison for an investment fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Thurman Bryant, III, 46, of Frisco, Texas and Arthur Franz Wammel, 46, of Houston, were convicted by a jury on Apr. 3, 2019, of conspiracy to commit wire fraud and were sentenced to federal prison on Jan. 29, 2020 by U.S. District Judge Amos Mazzant. Bryant was sentenced to 240 months in federal prison and ordered to pay restitution in the amount of $9,103,088.12. Wammel was sentenced to 136 months in federal prison and was also ordered to pay restitution in the amount of $9,103,088.12.
According to information presented in court, the defendants devised and executed an investment fraud scheme that claimed to earn investors a guaranteed minimum 30% annual return on investment. In addition, Bryant promised an investment that would be placed in a secure escrow account, when in fact the money was funneled to Wammel for securities trading and other purposes. Evidence at trial showed that the defendants separately spent money on personal expenses such as home leases, home improvements, car leases, expensive jewelry, and private school tuition, and that defendant Wammel spent a large amount of money on expenses related to a Rolls-Royce, a Ferrari and a Range Rover. Additional evidence showed that the investors contributed over $22 million to the scheme.
Bryant and Wammel were indicted by a federal grand jury on Dec. 13, 2017.
“The defendants’ Ponzi scheme hurt people badly,” said U.S. Attorney Joseph D. Brown. “Many of the victims were friends and family of these men, and the amount of loss was just tremendous. The length of their sentences reflect that.”
"Today’s sentencing sends a strong message to all white collar criminals. The FBI will thoroughly investigate and expose your fraud,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Victims can rest assured that these individuals will be held accountable for their actions.”
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Frisco Resident Agency and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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Florida Woman Guilty of Trafficking Drugs Through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has pleaded guilty to federal drug trafficking charges in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Shenita Denise Peterson pleaded guilty to possession with intent to distribute cocaine before U.S. District Judge Michael Truncale on Jan. 28, 2020.
According to information provided in court, on Aug. 23, 2019, Peterson was stopped by Beaumont Police for a traffic violation on Interstate Highway 10 in Beaumont, Texas. A search of the vehicle revealed approximately 45 individual kilograms of cocaine, which were concealed in the door panels of the vehicle. Peterson was indicted by a federal grand jury on Sep. 4, 2019 and charged with drug trafficking violations.
Under federal statutes, Peterson faces up to life in federal prison at sentencing. The maximum penalty prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Bowie County Booster Club Treasurer Sentenced for Wire FraudRead the Press Release
TEXARKANA, Texas – A 42-year-old Texarkana, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Nikki Diane May pleaded guilty on Sep. 12, 2019 to wire fraud and was sentenced to 23 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, during 2017 and 2018, May served as the treasurer of the Pleasant Grove High School Showstoppers Booster Club, in Texarkana, Texas. The club exists primarily to support the educational enrichment of the Showstoppers dance team by raising funds that allow them to participate in events across Texas and the United States. To further that goal, the club solicits the public for charitable donations and participation for the benefit of the students involved. As treasurer of the organization, May was entrusted with all funds received by the club and was responsible for depositing cash and checks received through various fundraising sources. May was also responsible for maintaining appropriate records of the funds received and expenditures made on behalf of the club. As treasurer, May was also entrusted with a debit card attached to the club’s bank account to be used for club business. However, from June 2017 to around November 2018, May defrauded the club by stealing cash that had been received as donations to the club and using the debit card to withdraw funds from the club’s bank account all for her own personal use. May prepared treasurer reports that falsely stated the club’s bank balances in order to hide her scheme from club officers and members. May’s fraudulent scheme resulted in the theft of more than $60,000 from the booster club.
This case was investigated by the Federal Bureau of Investigation’s Texarkana Resident Agency of the Dallas Field Office and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Nine East Texans Arrested for Trafficking MethamphetamineRead the Press Release
TYLER, Texas - U.S. Attorney Joseph D. Brown announced today that nine individuals have been arrested pursuant to a federal indictment charging them with drug and firearms violations in the Eastern District of Texas.
A federal grand jury returned the 42-count indictment on Jan. 15, 2020, charging the following individuals with being involved in a conspiracy to traffic methamphetamine in Smith, Cherokee, and Rusk counties:
Alexa Leigh Brown, 50, of Tyler;
Stanley Wayne Hunter, 43, of Troup, Texas;
David Raymond Lusk, 41, of Jacksonville, Texas;
Johnathan Rudy Duke, 30, of Recklaw, Texas;
Anthony Russell Hamilton, 42, of Tyler;
Donald Ray Carr, 55, of Tyler;
Justin Ray Carr, 32, of Tyler;
Joseph Paul Melancon, 46, of Henderson, Texas; and
Tonya Hudson Hammonds, 46, of Troup.
The indictment alleges that the arrested individuals conspired with others to distribute large quantities of methamphetamine in the Eastern District of Texas, and that several of the defendants possessed firearms while being convicted felons and in furtherance of their drug trafficking activities. The defendants appeared before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22 and 24, 2020, to be arraigned on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and use, carrying, or possession of a firearm during and in furtherance of a drug trafficking crime. Many of the charged offenses carry a statutory penalty range that includes life in prison.
This case is the result of a nearly two-year joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Texas Department of Public Safety; Smith County Sheriff's Office, Tyler Police Department, Troup Police Department, Cherokee County Sheriff's Office, Jacksonville Police Department, Rusk County Sheriff's Office, Henderson Police Department, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grayson County Woman Sentenced for Wire Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A 57-year-old Collinsville, Texas woman has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Rosemary Wolf pleaded guilty on June 12, 2019, to conspiracy to commit wire fraud and was sentenced to 51 months in federal prison by U.S. District Judge Amos L. Mazzant on Jan. 2, 2020.
According to information presented in court, Wolf conspired with James Michael Murray to defraud Brakebush Brothers, Inc., a food services company formerly known as Trinity Valley Foods, Inc., out of $1,207,163.32 from March of 2014 through November 2015. Wolf, in her role as Executive Assistant, conspired with Murray to set up fake business entities with similar names of legitimate Brakebush customers in order to divert company funds to bank accounts held by Wolf and Murray. Wolf caused checks to be issued by Brakebush to the fraudulent businesses and provided the checks to Murray. Murray deposited the checks in accounts he controlled and shared the ill-gotten funds with Wolf. Murray and Wolf used the funds to pay for lifestyle expenses including gambling at Oklahoma-based casinos and costs associated with owning horses.
“Businesses are vulnerable to insider thefts like this because we all want to trust our employees, especially in smaller companies,” said U.S. Attorney Joseph D. Brown. “While companies have to rely on their employees, cases like this confirm that they should follow the old saying of ‘Trust, but verify’ as much as possible.”
On Aug. 13, 2019, Murray was sentenced to 36 months in federal prison for his role in the scheme. Both Wolf and Murray were ordered to pay full restitution to Brakebush of $1,207,163.32.
Anyone with information on other participants in this scheme are asked to contact law enforcement.
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Lesley Davis Brooks.
Smith County Landscaper Guilty of Failing to Pay Payroll TaxesRead the Press Release
TYLER, Texas – A 46-year-old Whitehouse, Texas business owner has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Miles Brosang pleaded guilty to one criminal count of willful failure to collect or pay over tax before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22, 2020.
According to information presented in court, Brosang was the only director, sole shareholder, and general manager of Brosang’s Landscaping, Inc. As such, he exercised control over every aspect of the business affairs of Brosang’s Landscaping, Inc., including approving all payments by the company and controlling all of the bank accounts of Brosang’s Landscaping, Inc.
During the third quarter of 2015, between approximately July 1, 2015, and September 30, 2015, Brosang’s Landscaping, Inc. withheld payroll taxes from its employees’ paychecks, including federal income taxes, and Medicare and social security taxes (often referred to as Federal Insurance Contribution Act or “FICA” taxes.) Brosang knew that Brosang’s Landscaping, Inc. was required to make deposits of the payroll taxes to the Internal Revenue Service on a periodic basis.
In his capacity with Brosang’s Landscaping, Inc., Brosang was a “responsible person,” that is, he had the corporate responsibility to collect, truthfully account for, and pay over the payroll taxes for Brosang’s Landscaping, Inc. During the third quarter of 2015, Brosang’s Landscaping, Inc. failed to make required payments to the Internal Revenue Service. As a responsible person, Brosang knew that Brosang’s Landscaping, Inc. had a duty to pay, and the ability to make, the required payments, and he intentionally and willfully failed to make and pay over, or have Brosang’s Landscaping, Inc. make and pay over, the payments. The amount of taxes that should have been, and was not, paid over for the third quarter of 2015 is $49,704.47. The total of payroll taxes that should have been, and was not, paid over is $229,552.
“Business owners need to understand the importance of their obligations in the withholding of payroll taxes,” said United States Attorney Joseph D. Brown. “They hold those taxes in trust for the employee and the government and there are criminal penalties for those who divert those funds for other uses.”
Under federal statutes, Brosang faces up to five years in federal prison at sentencing. The maximum penalty prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office. This case was investigated by the IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
Newton County Felon Convicted of Firearms PossessionRead the Press Release
BEAUMONT, Texas – A 41-year-old Newton, Texas, man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Desmond Deray Gatson was found guilty on Jan. 22, 2020, of being a felon in possession of a firearm following a two-day jury trial before U.S. District Judge Marcia A. Crone.
According to information presented in court, on Feb. 8, 2019, Gatson was stopped by Beaumont police on Lucas Road in Beaumont for having an obstructed license plate. During the traffic stop, officers could smell marijuana and Gatson indicated that he had just finished smoking marijuana. Gatson also admitted to having served prison time for a drug conviction. A search of the vehicle revealed a handgun under the seat and marijuana in the center console. As a convicted felon, Gatson is prohibited from owning or possessing firearms or ammunition. Gatson was indicted on Aug. 7, 2019 and charged with federal firearms violations.
Under the federal statute, Gatson faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Michael Anderson and Rachel Grove.
Harrison County Man Sentenced for Distributing Anabolic SteroidsRead the Press Release
MARSHALL, Texas – A 31-year-old Hallsville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Mark McLean Farmer pleaded guilty on Aug. 16, 2019, to conspiracy to possess with intent to distribute and distribution of anabolic steroids and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 72 months in federal prison by U.S. District Judge Rodney Gilstrap on Jan. 16, 2020.
According to information presented in court, beginning in August 2018, Farmer began conspiring with others to distribute at least 2,500 units of anabolic steroids. Farmer served as a distributor of the steroids, receiving the drugs from foreign suppliers and then selling them to other dealers and users by way of the internet and through the United States mail. Additionally, Farmer was found to be in possession of a pistol while he was in the process of delivering steroids.
This case was investigated by the DEA Dallas Field Division, Tyler Resident Office and the U.S. Postal Inspection Service, Fort Worth Division. This case was prosecuted by Assistant U.S. Attorneys Colleen Bloss and Jim Noble.
Panola County Felon Convicted of Firearms PossessionRead the Press Release
TYLER, Texas – A 38-year-old Carthage, Texas, man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Timothy Earl Brown was found guilty today of being a felon in possession of a firearm and ammunition following a two-day jury trial before U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, on Oct. 14, 2016, law enforcement officers were dispatched to a rural residence in Panola County for a prowler. Brown was spotted by law enforcement carrying a rifle in a wooded area near the home. Brown fled but was apprehended and also found in possession of a revolver. Further investigation revealed Brown is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Brown was convicted in Panola County in 2000 for theft, in 2000 for escape and in 2011 for sexual assault. He also has a prior conviction in the Eastern District of Texas for being a felon in possession of a firearm in 2004. Brown was indicted for this incident on June 21, 2018 and charged with federal firearms violations.
Under the federal statute, Brown faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the 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 Panola County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Jim Noble and Alan Jackson.
Longview Ambulance Operator Sentenced for Health Care FraudRead the Press Release
TYLER, Texas – A 57-year-old Longview, Texas man has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Valdie Kimble pleaded guilty on Sep. 11, 2019, to health care fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Kimble was also ordered to pay restitution in the amount of $751,986.30 to Medicare and Medicaid and was ordered not to seek or retain employment in the health care fraud industry while serving three years of supervised release.
According to information presented in court, Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers. Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that either a beneficiary be bed-confined and it is documented that other methods of transportation are contraindicated; or the beneficiary's medical condition is such that transportation by ambulance is medically required. Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.
Houston Woman Latest to be Sentenced in Smith County Methamphetamine ConspiracyRead the Press Release
TYLER, Texas – A 31-year-old Houston woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Angelica Iczayana Jaimes-Loredo pleaded guilty on July 25, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 92 months in federal prison by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, between January 2018 and August 2018, Jaimes-Loredo and others were involved in a conspiracy to distribute methamphetamine in the Smith County, Texas area. On Nov.14, 2018, Jaimes-Loredo; Suri Surai Rivera-Zuniga, 25, of Houston; Kevin Russ Ivy, 58, of Whitehouse, Texas; and Stephen Paul Barton, 55, of Tyler; were charged in a six-count indictment with conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine. Jaimes-Loredo and Rivera-Zuniga admitted to distributing approximately three kilograms of methamphetamine on Aug. 18, 2018 in Whitehouse, Texas. Ivy admitted to possessing with intent to distribute 88 grams of methamphetamine on Aug. 16, 2018 in Whitehouse, Texas. Barton admitted to distributing 48.7 grams of methamphetamine on Aug. 16, 2018 and 35.7 grams of methamphetamine on July 20, 2018 in Whitehouse, Texas.
Rivera-Zuniga pleaded guilty on April 2, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 63 months in federal prison on Sep. 26, 2019. Ivy pleaded guilty on May 13, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 49 months in federal prison on Sep. 19, 2019. Barton pleaded guilty on July 25, 2019 to possession with intent to distribute 5 grams or more of methamphetamine and was sentenced to 87 months in federal prison on Jan. 13, 2020.
This case was investigated by the Smith County Sheriff’s Office Narcotics Unit, the Texas Department of Public Safety Criminal Investigation Division and Highway Patrol, and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Allen Hurst.
Cherokee County Man Sentenced for having Methamphetamine at County CourthouseRead the Press Release
TYLER, Texas – A 24-year-old Jacksonville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
David Anthony Ebanez pleaded guilty on Sep. 4, 2019, to possession with intent to distribute methamphetamine and was sentenced to 84 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, on April 10, 2019, Ebanez was found in possession of over 50 grams of a substance containing methamphetamine at the Cherokee County Courthouse in Rusk, Texas. Ebanez was indicted by a federal grand jury on May 15, 2019, and charged with federal drug trafficking violations.
This case was investigated by the DEA Dallas Field Division, Tyler Resident Office; the Cherokee County Sheriff’s Office, Jacksonville Police Department, and the Smith County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Colleen Bloss.
Houston Men Arrested in Beaumont in Armored Car Robbery SchemeRead the Press Release
BEAUMONT, Texas – Four Houston men have been arrested on federal violations in the Eastern District of Texas announced. U.S. Attorney Joseph D. Brown
David Nathan Taylor, 28; Prentis Leewood Delaney, 29; Coray Quan Brown, 32; and Jamarius Early Jones, 21; appeared in federal court in Beaumont today for initial appearances. A criminal complaint charging the individuals with conspiracy to commit Hobbs Act robbery was signed by U.S. Magistrate Judge Zack Hawthorn on Jan. 14, 2020. The Hobbs Act prohibits actual or attempted robbery that has an effect on interstate commerce by reason of their repetition and aggregate effect on the economy. Investigators believe the crew is responsible for the October 2019 murder of an armored car guard in northwest Houston.
According to the criminal complaint filed in the Eastern, District of Texas, the Federal Bureau of Investigation was investigating a series of armored car robberies, including the fatal robbery of a Loomis armored car courier that occurred on Oct. 24, 2019, in Houston. During that robbery, three individuals brandished firearms and demanded money from the courier. The courier was shot and killed. A subsequent investigation led officers to these four subjects. On Jan. 13, 2020, these individuals were observed together in Houston prior to traveling to Lake Charles in two separate vehicles. Upon arriving in Lake Charles the subjects were observed by law enforcement following an armored vehicle that then traveled to Beaumont. After arriving in Beaumont they were encountered by law enforcement and subsequently arrested. Inside one of the vehicles officers discovered two AR-15 style rifles, a pistol, three masks, three sets of gloves, five cell phones, and two open bottles of rubbing alcohol.
If convicted, the defendants face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, the Texas Department of Public Safety, the Lake Charles Police Department and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Russell E. James.
A grand jury indictment or complaint is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twelve Indicted in Kickback Conspiracy, Former CEO Pleads GuiltyRead the Press Release
TEXARKANA, Texas – Twelve individuals from three states have been charged in a federal indictment returned in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Nicolas Arroyo, 38, of Newport Coast, CA, pleaded guilty to conspiracy to defraud the United States on Jan. 14, 2020 before U.S. Magistrate Judge Caroline Craven.
According to information presented in court, Arroyo was the CEO of a clinical laboratory when he conspired with others to pay and receive kickbacks in exchange for the referral of and arranging for health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that effect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California, Irvine, California, and San Diego, California. More than $28 million in illegal kickback payments were exchanged by the defendants and others during the conspiracy. On Dec. 11, 2019, a federal grand jury returned an indictment in which Philip Lamb, 44, of Scottsdale, Arizona; Nicolas Arroyo, 38, of Newport Coast, California; Vincent Marchetti, Jr., 55, of Coronado, California; William Flowers, 55, of Houston, Texas; Steven Donofrio, 45, of Temecula, California; James J. Walker, Jr. a/k/a Jimmy Walker, 46, of Frisco, Texas; Timothy Armstrong, 62, of Frisco, Texas; Virginia Blake Herrin, 54, of Frisco, Texas; Patrick Ridgeway, 50, of Jackson, Mississippi; Chismere Mallard, 39, of McAllen, Texas; Ray W. Ng, 61, of Dallas, Texas; and Ashley Kretzschmar, 34, of Aledo, Texas; were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for items or services payable under federal health care programs.
“We continue to see individuals in the healthcare industry creating illegal kickback arrangements, trying to cheat the system and turn healthcare decisions into financial decisions instead of what is best for the patient,” said United States Attorney Joseph D. Brown. “This must stop, and doctors should be aware of the emphasis that is being put on stopping these practices.”
Under federal statutes, Arroyo faces up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
San Antonio Husband and Wife Sentenced for Tire Theft ConspiracyRead the Press Release
BEAUMONT, Texas - A San Antonio man and his wife have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joel Vargas, 34, and Angelica Vargas, 39, were found guilty by a jury of federal violations following a five-day trial in March 2019 and were sentenced by U.S. District Judge Marcia A. Crone on Jan. 8, 2020. Joel Vargas was convicted of two counts of interstate transportation of stolen property, conspiracy to transport stolen property in interstate commerce, and tampering with a witness. He was sentenced to a total of 235 months in federal prison and ordered to pay restitution in the amount of $1,278,580.27. Angelica Vargas was convicted of conspiracy to transport stolen property in interstate commerce and was sentenced to 60 months in federal prison and ordered to pay restitution in the amount of $1,071,344.38.
According to information presented in court, on Dec. 17, 2017, over $38,000 in automotive tires were stolen during a burglary of the Goodyear Commercial Tire and Service Center on Cardinal Drive in Beaumont, Texas. The investigation of the burglary led to Joel and Angelica Vargas, who were part of a multi-participant conspiracy. The conspiracy targeted commercial tire businesses, resulting in the theft, trafficking and sale of commercial tires, specifically 18-wheeler truck tires. Over a 15-year period, the conspiracy targeted over 100 tire stores or concrete/gravel yards, where they would force entry into the premises, disable surveillance equipment, steal tires, and then remove the tires in rental moving van type vehicles. Over 50 rental moving vehicles were stolen to facilitate the crimes. Joel Vargas was also found guilty of threatening a trial witness. In all, seven individuals were convicted as part of this investigation.
“This was a major theft ring that cost businesses a very large amount of money,” said U.S. Attorney Joseph D. Brown. “They operated all over the state of Texas.”
“I’m very proud of the work our officer did to clear this case,” said Beaumont Police Chief Jimmy Singletary. “It just goes to show how much law enforcement can accomplish when working across jurisdictional lines.”
This case was investigated by the Beaumont Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Michael Anderson, Chris Rapp, and Christopher T. Tortorice.
Federal Inmates Guilty of Escape from Beaumont FacilityRead the Press Release
BEAUMONT, Texas – Two federal inmates have pleaded guilty to escape from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Julian Villa-Gomez Lemus, 34, a Mexican national, and Robert Lloyd Young, 45, of Bruceville, Texas, each pleaded guilty to escaping from federal custody before U.S. Magistrate Judge Zack Hawthorn on Jan. 9, 2020.
According to information presented in court, on Oct. 11, 2019, the Jefferson County Sheriff’s Office received an anonymous tip alerting them that inmates at the Bureau of Prison Camp Facility in west Jefferson County were planning to escape from the facility in order to retrieve contraband that had been left for them in a field off Hillebrandt Road. Law enforcement officers surrounded the area in concealed locations and within several hours observed four inmates approaching on foot. All four inmates were apprehended after attempting to flee and detained. A search of the inmates revealed several cellular telephones and a bottle of whisky. All four were indicted by a federal grand jury on Nov. 6, 2019.
Lemus and Young were both serving federal prison sentences for drug trafficking convictions. Lemus was convicted in the Middle District of Florida while Young was convicted in the Western District of Texas.
“There have been ongoing issues with inmates walking away from this facility, which is a low security prison camp,” said U.S. Attorney Joseph D. Brown. “Bureau of Prison officials have continued to improve the security features at the camp, and we will continue to prosecute inmates that escape, and any friends or family members that help them in any way.”
Under federal statutes, Lemus and Young face up to an additional 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Executive Assistant U.S. Attorney Brit Featherston.
Canton, Texas Man Sentenced for East Texas Drug Trafficking CrimesRead the Press Release
TYLER, Texas – A 44-year-old Canton, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Robby Dale Baker pleaded guilty on June 21, 2019, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 130 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Jan. 7, 2020. Baker was also ordered to pay a money judgment in the amount of $8,000.
According to information presented in court, in March, April, and May of 2018, Baker sold methamphetamine on three separate occasions. On May 22, 2018, law enforcement executed a search warrant at Baker’s Canton, Texas residence and recovered more methamphetamine, as well as several firearms and ammunition. Baker admitted to being involved in a drug trafficking conspiracy to distribute methamphetamine to others. Baker was indicted by a federal grand jury on July 27, 2018.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
Former Supervisory Correctional Officer Sentenced to 24 Months in Federal Prison for Civil Rights ViolationRead the Press Release
A former Supervisory Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced today in federal court for aiding and abetting the assault of an inmate.
Khristal Ford, 33, was sentenced by U.S. District Judge Marcia A. Crone to 24 months in federal prison followed by one year of supervised release. Ford previously pleaded guilty on May 29, 2019, to one count of aiding and abetting another correctional officer in the assault of an inmate housed at the facility.
According to plea documents and information presented in court, on June 8, 2017, while on duty at the FCC, Ford opened the door of a secured medical observation cell after A.A., an inmate, threw a tray at the locked door. Ford then told another correctional officer to “take care of it” and watched as the officer entered the cell and punched A.A. in the head three times without justification. Following this assault, Ford submitted written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.
“The Department of Justice will not tolerate this abuse of authority,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute those who will assault inmates under their supervision.”
“The work of prison guards is obviously very difficult, but they cannot resort to unprovoked violence,” said United States Attorney Joseph Brown for the Eastern District of Texas. “They are expected to remain professional, and if they assault inmates, they will be arrested and prosecuted.”
“The public has a right to expect that Correctional Officers will keep federal prisons safe and secure and will perform the duties of their jobs with integrity. Ford did the exact opposite when she aided in the assault and civil rights violations of an inmate. She will rightly serve time for this offense,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Supervisory Correctional Officer Sentenced to 24 Months in Federal Prison for Civil Rights ViolationRead the Press Release
WASHINGTON – A former Supervisory Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced today in federal court for aiding and abetting the assault of an inmate.
Khristal Ford, 33, was sentenced by U.S. District Judge Marcia A. Crone to 24 months in federal prison followed by one year of supervised release. Ford previously pleaded guilty on May 29, 2019, to one count of aiding and abetting another correctional officer in the assault of an inmate housed at the facility.
According to plea documents and information presented in court, on June 8, 2017, while on duty at the FCC, Ford opened the door of a secured medical observation cell after A.A., an inmate, threw a tray at the locked door. Ford then told another correctional officer to “take care of it” and watched as the officer entered the cell and punched A.A. in the head three times without justification. Following this assault, Ford submitted written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.
“The Department of Justice will not tolerate this abuse of authority,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute those who will assault inmates under their supervision.”
“The work of prison guards is obviously very difficult, but they cannot resort to unprovoked violence,” said United States Attorney Joseph Brown for the Eastern District of Texas. “They are expected to remain professional, and if they assault inmates, they will be arrested and prosecuted.”
“The public has a right to expect that Correctional Officers will keep federal prisons safe and secure and will perform the duties of their jobs with integrity. Ford did the exact opposite when she aided in the assault and civil rights violations of an inmate. She will rightly serve time for this offense,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Van Zandt County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 51-year-old Edgewood, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Timothy Dwayne Henson pleaded guilty to conspiracy to possess with intent to distribute methamphetamine before U.S. Magistrate Judge John D. Love on Jan. 7, 2020.
According to information presented in court, on two separate occasions in July 2018, Henson sold methamphetamine during controlled purchases in Van Zandt County. On Sep. 9, 2018, law enforcement executed a search warrant at his residence in Van Zandt County and recovered methamphetamine. Henson admitted to being involved in a conspiracy to obtain and distribute methamphetamine, and that he was directly responsible for the distribution of at least 500 grams of methamphetamine. Henson was indicted by a federal grand jury on Aug. 8, 2018 and charged with federal drug trafficking crimes.
Under federal statutes, Henson 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 was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
North Texas Residents Indicted for Illegal Kickback ConspiracyRead the Press Release
PLANO, Texas – Three North Texas residents have been indicted for conspiring to pay for patient referrals in violation of the Anti-Kickback Statute in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown. The indictment was unsealed today.
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, TRICARE, and Medicaid. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Sultan Satar Sattar, 64, and his wife Bibi Zabeda Sattar, 61, of Fort Worth, Texas, and Jeffrey Paul Cornwell, a/k/a "Boomer," 43, of McKinney, Texas, were indicted by a federal grand jury on December 11, 2019. The indictment alleges that the defendants conspired to make an unlawful kickback arrangement involving payments for the referral of federal health care beneficiaries, in violation of 18 U.S.C. § 371. According to the indictment, the illegal arrangement concerned the referral of testing services to clinical laboratories located in Richmond, Virginia, and Frisco, Texas, in exchange for per-test compensation.
The Sattars were arraigned on December 30, 2019, before U.S. Magistrate Judge Kimberly Priest Johnson. Cornwell's initial appearance took place on January 7, 2020, also before Judge Johnson.
If convicted, the Sattars and Cornwell each face up to 5 years in federal prison.
This case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Defense Criminal Investigative Service, and the State of Texas Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld.
It is important to note that an 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.
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Legislators Must Not Allow “Warrant-Proof Encryption” to Make America A More Dangerous PlaceRead the Press Release
William Craig Whisman came to a parking lot in Plano with a stuffed toy, intending to have sex with a young girl whose father had offered her up in a website chatroom. Earlier, Whisman had sent two videos to the father in which Whisman simulated the acts he wanted to commit on the young girl. Now, he was there to make his fantasy a reality.
Fortunately, the girl was not real. But after law enforcement discovered that Whisman had sent pictures of other children – this time real children he had secretly photographed while standing in line at a local Home Depot – officers ended their ruse and swept in to arrest him
When Whisman saw agents closing in, he turned off his phone. Security measures on the phone prevented officers from accessing its contents. Search warrants and subpoenaes were powerless to provide access because advanced encryption techniques protected Whisman’s secrets. Had real children been abused? Could abused children be hidden somewhere? Were there other child exploiters communicating with him that law enforcement could pursue and prevent from offending? Time was ticking, and officers needed to know the answers quickly to potentially prevent a tragedy.
The answers would not come for months.
Technology companies continue to advance security measures and implement “warrant-proof” encryption of data on communication devices. To be sure, encryption protects important privacy interests of law-abiding citizens. But encryption also provides a safe space for criminals to operate, shielding evidence of illegal activities from authorities. Terrorists, child predators, and other criminals should not be able to hide what they do from law enforcement, especially when investigators have been authorized by a court to search for evidence.
Common sense solutions are needed to protect the privacy of citizens while ensuring that criminals cannot hide their activities. The Fourth Amendment protects us all from unwarranted government intrusion, but the Constitution has always struck a balance between privacy and security by allowing law enforcement, upon a showing of probable cause, to access an individual’s zone of privacy. We ask for no more access to digital devices than what the Constitution already provides.
Today, more and more evidence of crime is digital. Evidence stored in a phone or on a laptop should not be protected more than evidence in a person’s home, which has always been considered the most private of places. By allowing dangerous criminals to cloak their communication behind an impenetrable digital shield, the deployment of warrant-proof technologies is already imposing a great cost on society.
Over a year after William Whisman was arrested, law enforcement finally was able to access his phone when new forensic techniques were implemented. On the phone were thousands of images of child pornography. Even more troubling, investigators found chat logs of conversations Whisman had been having with other men and women about the sexual abuse of children. As prosecutors secured a prison sentence of more than 24 years for Whisman, officers began the job they should have been able to do months before – investigating those individuals, rescuing children, and trying to prevent the evil that happens too often.
The United States must enact legislation to ensure lawful access for law enforcement, consistent with the traditional protections of privacy, to digital evidence of crime.
By Joseph D. Brown
United States Attorney, Eastern District of TexasU.S. Attorney’s Office Collects nearly $43 million in Criminal and Civil Actions in Fiscal Year 2019Read the Press Release
SHERMAN, Texas - U.S. Attorney Joseph Brown announced today that the Eastern District of Texas collected $42,720,785.69 in criminal and civil actions in Fiscal Year 2019. Of this amount, $41,528,315.03 was collected in criminal actions and $1,192,470.66 was collected in civil actions.
Additionally, the Eastern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,829,172.54 in cases pursued jointly by these offices. Of this amount, $19,813.58 was collected in criminal actions and $3,809,358.96 was collected in civil actions.
“One of the most important missions of the U.S. Attorney’s Offices is enforcing and collecting monetary judgments for violations of federal law,” said U.S. Attorney Joe Brown. “Aggressive enforcement of these judgments achieves the multiple purposes of compensating crime victims, punishing those who break the law, and deterring future violations. The Eastern District prides itself in incorporating asset recovery into the earliest stages of all cases, which ultimately helps maximize the money we collect.”
In August 2019, the Eastern District of Texas recovered nearly $3,200,000 to fully satisfy a restitution judgment entered in United States v. Manpreet Singh in August 2018. Singh was prosecuted for defrauding several banks in the Eastern District of Texas. The Eastern District’s asset recovery team was involved in the prosecution and ensured that Singh made a significant down payment to the restitution prior to sentencing. Next, the asset recovery team sought specific payment terms that would require Singh to sell a hotel and other real property as part of his sentence. The Court adopted the entirety of the government’s requested payment terms and incorporated them into the judgment. Prosecutors successfully forced Singh to promptly effect the hotel sale, which led to the judgment being paid in full in less than a year.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Eastern District of Texas, working with partner agencies and divisions, collected $15,049,725 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Texas Man Pleads Guilty to Child Exploitation ViolationsRead the Press Release
A Texas man has pleaded guilty today to child exploitation violations in the Eastern District of Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph D. Brown of the Eastern District of Texas.
Alexander Nathan Barter, 23, of Joaquin, Texas, pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin of the Eastern District of Texas.
According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a TOR site stating, “I’d like to try necrophilia and cannibalism, and see how it feels to take a life. If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.” An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter. Between Oct. 9, 2018, and Oct.19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing and eating the 13-year old child. Barter provided the undercover officer with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel and how to conceal evidence of their crime. On Oct. 19, 2018, Barter arrived at the designated meet site with a knife, trash bag, cellular phone and a tablet.
As part of his plea, Barter also admitted to using a social media communications application, the Internet and digital devices he owned to communicate with other individuals about child pornography. On Oct. 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual. The individual accepted the offer and Barter sent the files, along with descriptions of their contents.
Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count. A sentencing date has not yet been set.
This case was brought as 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Lufkin, Beaumont, and Houston, Texas; HSI Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office Florida; Nacogdoches Police Department; Texas Department of Public Safety; U.S. Customs and Border Protection Air Units; and Shelby County Sheriff’s Office. Senior Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marisa Miller of the Eastern District of Texas prosecuted the case.
Texarkana, Texas Man Sentenced for Multiple Armed RobberiesRead the Press Release
TEXARKANA, Texas – A 66-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Troy Lee Ware pleaded guilty on July 23, 2019, to bank robbery and was sentenced to 180 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on April 26, 2019, Ware entered the Wells Fargo Bank on New Boston Road in Texarkana, Texas, brandishing a firearm and demanding money from the bank teller’s drawer. The teller complied and gave the cash to Ware. Ware took the cash and backed out of the bank while pointing the firearm at bank employees and demanding they remain on the floor. Ware fled the bank on a bicycle. Ware was indicted by a federal grand jury on May 15, 2019, and charged with bank robbery.
“This defendant was a danger throughout northeast Texas and in Arkansas,” said U.S. Attorney Joseph D. Brown. “He earned every one of those years he will serve.”
Ware also admitted to committing the following, additional armed robberies:
- Paradise Quick Stop Exxon located at 3400 New Boston Road in Texarkana, Texas on April 18, 2017;
- Papa John’s Pizza located at 403 State Line Ave. in Texarkana, Texas on April 22, 2017;
- The Tobacco Store located at 2806 New Boston Road, Texarkana, Texas on Dec. 18, 2017;
- Shamrock Gas Station and Convenience Store located at 824 Richmond Road, Texarkana on Dec. 23, 2017;
- Potato Patch restaurant located at 3815 N. State Line Ave., Texarkana on Dec. 23, 2017;
- Bancorp South, located at 2200 N. State Line Ave., in Texarkana, Arkansas on Feb. 16, 2017;
- Fast & Low #2 Convenience Store located at 402 East Street, Texarkana, Arkansas on April 24, 2017;
- Exxon gas station and convenience store located at 2324 N. Stateline Ave. in Texarkana, Arkansas on June 9, 2017;
- Family Dollar store located at 1213 E. 9th Street in Texarkana, Arkansas on Oct. 24, 2017;
- Texas Liquor store located at 914 N. Stateline Ave. in Texarkana, Arkansas on Oct. 27, 2017;
- Stop & Shop convenience store located at 402 East Street in Texarkana, Arkansas on or about Dec. 9, 2017; and
- Bottle Shop liquor store located at 1224 N. Stateline Ave. in Texarkana, Arkansas on Dec. 12, 2017.
As part of his plea agreement, Ware agreed to pay restitution of $24,702.00, which is the total amount he received from all robberies. He also agreed to forfeit the firearm and ammunition.
This case was investigated by the Texarkana, Texas and Texarkana, Arkansas Police Departments, the Miller County (Arkansas) Sheriff’s Office, the Federal Bureau of Investigation’s Texarkana, Texas and Texarkana, Arkansas Field Offices. This case was prosecuted by Assistant U.S. Attorney Jim Noble.###
Shelby County Man Guilty of Child Exploitation ViolationsRead the Press Release
BEAUMONT, Texas – A 23-year-old Joaquin, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Alexander Nathan Barter pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin on December 20, 2019.
According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a dark web site stating “I’d like to try necrophilia and cannibalism, and see how it feels to take a life. If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.” An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter. Between October 9, 2018 and October 19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing, and eating the 13-year old child. Barter provided the undercover with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel, and how to conceal evidence of their crime. On October 19, 2018, Barter arrived at the designated meet site in Joaquin, Texas with a knife, trash bag, cellular phone, and a tablet.
“These are the cases that remind us that evil is real,” said U.S. Attorney Joseph D. Brown. “It also reminds us that we are fortunate that we have law enforcement working to stop these things.”
As part of his plea, Barter also admitted to using a social media communications application, the internet, and digital devices he owned to communicate with other individuals about child pornography. On October 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual. The individual accepted the offer and Barter sent the files, along with descriptions of their contents.
Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count. Each party has reserved the right to argue that the sentences should run concurrent or consecutive. Accordingly, Barter will face a minimum term of 20 years in federal prison and a maximum sentence of 40 years when he is sentenced. A sentencing date has not yet been set and the actual sentence will be determined by a federal judge at sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by Homeland Security Investigations in Lufkin, Beaumont, and Houston, Texas; Homeland Security Investigations Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office (Florida); Nacogdoches Police Department; Texas Department of Public Safety; Customs and Border Protection Air Units; and Shelby County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Senior Trial Attorney Jennifer Toritto Leonardo.
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Corrupt Guatemalan Mayor Indicted in Eastern District of Texas Designated by Treasury Department under Kingpin Act for Drug Trafficking ActivitiesRead the Press Release
PLANO, Texas – A 44-year-old Guatemalan Mayor has been indicted for drug trafficking activities and extradited to the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Erik Salvador Suniga Rodriguez, also known as “El Pocho” surrendered to U.S. Drug Enforcement agents in Guatemala this morning and boarded an airplane for extradition to McKinney, Texas. Suniga Rodriguez was indicted by a federal grand jury on June 13, 2018 in the Eastern District of Texas and charged with drug and money laundering violations. Suniga Rodriguez was the mayor of Ayutla, a town on the border with Mexico.
Also today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified Suniga Rodriguez, and the Suniga Rodriguez drug trafficking organization (Suniga Rodriguez DTO or “Los Pochos DTO”) as significant foreign narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).
As a result of today’s actions, all assets in which Suniga Rodriguez has an interest in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The Criminal Division’s Office of International Affairs of the Justice Department provided significant assistance in securing the defendant’s extradition from Guatemala. This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
It is important to note that an 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.
Federal Inmate Convicted of Attempting to Provide Material Support to ISISRead the Press Release
BEAUMONT, Texas – A 45-year-old international terrorist imprisoned in the U.S. Bureau of Prisons has been convicted of additional offenses in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI, following a seven-day trial before U.S. District Judge Marcia A. Crone.
“This terrorist has shown that he was committed to his ideology and to violence,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “It was important to pursue these charges not only to keep him in prison, but to deter others who would recruit in jail cells.”
“This defendant is a repeat offender. While in prison on terrorism charges, Ahmed continued to recruit fellow inmates to join ISIS to train them and to help them plan future attacks,” said Assistant Attorney General for National Security John C. Demers. “As long as terrorists keep offending, the Department will continue to bring them to justice. We have done so in this case.”
“The threat posed by individuals like Ahmed is real and one we cannot afford to underestimate or ignore,” said Special Agent in Charge Perrye Turner of the FBI Houston Division. “The threat from ISIS continues to evolve to include sustained radicalization online, loss of the physical caliphate, and inspiration for individuals to conduct attacks in their home countries using any means possible. It is with any means possible and using all tools available to us that the FBI will continue to investigate criminal and national security threats to the United States, wherever they originate.”
According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization. Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups. A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas to serve his sentence.
Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont. He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda. From prison, he celebrated the Ariana Grande concert bombing and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.” Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks.
Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.” He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting. Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as a revenge for his prosecution there.
Under the federal statute, Ahmed faces up to 25 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation’s Beaumont Resident Agency, out of the Houston Division, and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.
Federal Inmate Convicted of Attempting to Provide Material Support to ISISRead the Press Release
A 45-year-old international terrorist imprisoned in the U.S. Bureau of Prisons has been convicted of additional offenses in the Eastern District of Texas.
Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI, following a seven-day trial before U.S. District Judge Marcia A. Crone. The jury acquitted the defendant of two other charges and did not reach a verdict on another.
“This defendant is a repeat offender. While in prison on terrorism charges, Ahmed continued to recruit fellow inmates to join ISIS to train them and to help them plan future attacks,” said Assistant Attorney General for National Security John C. Demers. “As long as terrorists keep offending, the Department will continue to bring them to justice. We have done so in this case.”
“This terrorist has shown that he was committed to his ideology and to violence,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “It was important to pursue these charges not only to keep him in prison, but to deter others who would recruit in jail cells.”
“The threat posed by individuals like Ahmed is real and one we cannot afford to underestimate or ignore,” said Special Agent in Charge Perrye Turner of the FBI Houston Division. “The threat from ISIS continues to evolve to include sustained radicalization online, loss of the physical caliphate, and inspiration for individuals to conduct attacks in their home countries using any means possible. It is with any means possible and using all tools available to us that the FBI will continue to investigate criminal and national security threats to the United States, wherever they originate.”
According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization. Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups. A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas, to serve his sentence.
Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont. He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda. From prison, he celebrated a bombing at a concert in Manchester, England, and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.” Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks.
Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.” He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting. Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as revenge for his prosecution there.
Ahmed faces up to 25 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.
Former Texas Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
Tavoris Bottley, 34, a former Senior Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, pleaded guilty in court today to assaulting a federal inmate housed at the facility.
According to documents filed in connection with the guilty plea, on June 8, 2017, Bottley, while on duty as a federal correctional officer at FCC Beaumont, punched A.A, an inmate, in the face and head multiple times without justification. Bottley admitted that he and his supervisor, Lieutenant Khristal Ford, intentionally unlocked and entered the secured cell where A.A. was being held with the intention of assaulting the inmate for being disrespectful and throwing a food tray. Bottley admitted that he then punched A.A., even though the inmate did not pose any threat at the time.
Khristal Ford previously pleaded guilty on May 29, 2019, to aiding and abetting in the assault of A.A., and admitted to submitting written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.
“This conduct by a federal correctional officer erodes public trust,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute those who violate the civil rights of inmates.”
“Correctional officers have an obligation to be professional” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “Unprovoked violence not only violates the rights of the inmate, but hurts the reputations of law enforcement professionals who do things the right way.”
“When Bottley assaulted this inmate, he violated the inmate’s civil rights and he betrayed the oath of office he swore to uphold when he became a federal Corrections Officer,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
Bottley faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.
Former Beaumont Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
BEAUMONT, Texas – Tavoris Bottley, 34, a former Senior Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, pleaded guilty in court today to assaulting a federal inmate housed at the facility, announced Eastern District of Texas U.S. Attorney Joseph D. Brown.
According to documents filed in connection with the guilty plea, on June 8, 2017, Bottley, while on duty as a federal correctional officer at FCC Beaumont, punched A.A, an inmate, in the face and head multiple times without justification. Bottley admitted that he and his supervisor, Lieutenant Khristal Ford, intentionally unlocked and entered the secured cell where A.A. was being held with the intention of assaulting the inmate for being disrespectful and throwing a food tray. Bottley admitted that he then punched A.A., even though the inmate did not pose any threat at the time.
Khristal Ford previously pleaded guilty on May 29, 2019, to aiding and abetting in the assault of A.A., and admitted to submitting written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.
“This conduct by a federal correctional officer erodes public trust,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute those who violate the civil rights of inmates.”
“Correctional officers have an obligation to be professional,” said United States Attorney Joseph D. Brown of the Eastern District of Texas. “Unprovoked violence not only violates the rights of the inmate, but hurts the reputations of law enforcement professionals who do things the right way.”
“When Bottley assaulted this inmate, he violated the inmate’s civil rights and he betrayed the oath of office he swore to uphold when he became a federal Corrections Officer,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
Bottley faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.
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Laboratory to Pay $26.67 Million to Settle False Claims Act Allegations of Illegal Inducements to Referring PhysiciansRead the Press Release
WASHINGTON – Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.
The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns. From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments. To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals. As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE.
“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”
“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas. “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”
“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.
“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”
“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS). “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”
The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.
In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing. Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The whistleblowers will receive approximately $4.36 million of the settlement.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
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