Eastern District of Texas
Press releases recorded for this federal judicial district.
Jefferson County Counselor Guilty of Health Care Fraud in Overbilling SchemeRead the Press Release
BEAUMONT, Texas – A 59-year-old Beaumont mental health care counselor has pleaded guilty to health care fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Douglas Duane Franklin pleaded guilty to an Information charging him with health care fraud today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, since 2007, Franklin has been the owner and sole provider at Guiding Light Counseling Service, PLLC, where he provides mental health counseling services, for which he bills Medicaid, Medicare and private insurance. Between 2007 and 2019, Franklin was reimbursed $591,600.69 for three different time-based counseling CPT codes, all in durations of 30 minutes or more. Medicaid rules require that the indicated time is spent face-to-face with the patient, and expressly does not include time for documentation or other administrative activities. Between 2007 and 2019, Franklin submitted over 10,000 claims for visits exceeding 30 minutes or more.
During the course of a months-long investigation, investigators with the US Attorney’s Office, the FBI, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit discovered that Franklin had patient sessions scheduled in 30-minute increments, some of which were double-booked. However, out of the 10,215 claims submitted by Franklin, only one was for a 30-minute visit. All of the remaining visits were billed under the 45-minute or 60-minute CPT codes, which provided for an increased reimbursement rate. Franklin was paid a total of $591,600.69 for all claims under the previously described CPT codes, when he was only entitled to receive $321,772.50. As a result of Franklin submitting fraudulent claims, he was overpaid $269,828.19 by Medicaid.
Under federal statutes, Franklin 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 is being investigated by the Federal Bureau of Investigation, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Jasper County Men, Houston Woman, Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – Two Buna, Texas men and a Houston woman have pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James Joseph Fabela, 41, Benjamin Jason Fabela, 35, both of Buna, Texas, and Darian Michelle Simmons, 25, of Houston, each pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn. Simmons also pleaded guilty to conspiracy to launder money.
According to information presented in court, from as early as July 2016, the defendants have been involved in a drug trafficking enterprise trafficking methamphetamine in the Buna, Texas area. James Fabela and Benjamin Fabela have supervised, managed and controlled the drug trafficking organization with personal knowledge of the distribution of methamphetamine. In total, the organization sold nearly 200 grams of methamphetamine in the Southeast Texas area. Their plea agreements include the forfeiture of a home in Buna, Texas. Simmons arranged for couriers to transport and conceal drugs and money to and from Houston for further distribution in Southeast Texas and Southwest Louisiana. Simmons is responsible for distributing at least 1.028 kilograms of methamphetamine.
The defendants were indicted by a federal grand jury on Sep. 5, 2018.
Under federal statutes, the defendants face from 10 years to life in prison for the drug conspiracy charge. Simmons also faces up to up to 20 years for the money laundering conspiracy violations. 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. Six other defendants have been convicted and sentenced for their roles in the conspiracies.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Jefferson County Sheriff’s Office and the Jasper County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Chicago Felon Sentenced for East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 44-year-old Chicago, Illinois, 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.
James L. Morgan was found guilty on Apr. 26, 2019, of possession with intent to distribute methamphetamine and being a felon in possession of a firearm following a four-day trial before U.S. District Judge Robert W. Schroeder, III. Morgan was sentenced to 160 months in federal prison today by Judge Schroeder.
According to information presented in court, on Sep. 28, 2017, Morgan was stopped by Texas DPS troopers on IH-30 near Mt. Pleasant, Texas, for failing to maintain a single lane of traffic. During the traffic stop, Morgan fled on foot while a passenger, Antonio Alexander Lee, got back in the vehicle and drove away before being stopped by spike strips in Bowie County, Texas. Morgan was apprehended on a rural county road after crossing all lanes of IH-30 on foot and a barbed wire fence. A search of the vehicle revealed more than 75 grams of actual methamphetamine, a loaded firearm, a digital scale and approximately one gram of heroin. Further investigation revealed Morgan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Morgan and Lee were indicted by a federal grand jury on Oct. 18, 2017.
Lee pleaded guilty to conspiracy to possess a controlled substance and was sentenced to 94 months in federal prison on Aug. 21, 2018.
This case was investigated by the Texas Department of Public Safety, Criminal Investigation and Highway Patrol Divisions; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Titus County Sheriff’s Office; Bowie County Sheriff’s Office; and the Cass County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Allen Hurst, Jonathan R. Hornok and Graham Jones.
Attorney General Announces Launch of Project Guardian – A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Our district has continued to improve collaboration with state and local law enforcement,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “It has resulted in a greater than 40% increase in prosecutions of firearms offenses, generally felons in possession of firearms or those who attempt to purchase firearms although they are legally prohibited from doing so. In the mental health arena, we are concentrating on identifying those with mental health red flags that attempt to purchase firearms, and being proactive in keeping weapons out of their hands.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
For a look at how the Eastern District of Texas supports Project Guardian, please visit our website at https://www.justice.gov/usao-edtx where you can find specific examples such as
https://www.justice.gov/usao-edtx/pr/smith-county-man-sentenced-firearms-violations
https://www.justice.gov/usao-edtx/pr/texarkana-felon-sentenced-firearms-possession
https://www.justice.gov/usao-edtx/pr/orange-county-felon-indicted-federal-firearms-violation
https://www.justice.gov/usao-edtx/pr/jefferson-county-felon-sentenced-federal-firearms-violations
https://www.justice.gov/usao-edtx/pr/lamarred-river-county-residents-indicted-federal-drug-and-weapons-charges
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- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Smith County Man Sentenced in East Texas Marijuana Cultivation OperationRead the Press Release
TYLER, Texas – A 26-year-old Tyler, 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.
Eduardo Pineda pleaded guilty on July 25, 2019, to manufacturing and possessing with intent to manufacture and distribute marijuana and was sentenced to 108 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, in 2016, Pineda supervised a large-scale marijuana cultivation enterprise throughout the Eastern District of Texas, including sites located on public lands such as Davy Crockett and Sabine National Forests. Other sites were located on private property where Pineda and others trespassed without the knowledge or consent of the landowners. In total, Pineda and his co-conspirators were responsible for cultivating thousands of marijuana plants.
This case was investigated by Texas Department of Public Safety - Criminal Investigations Division; Texas Department of Public Safety - Highway Patrol; Drug Enforcement Administration; Smith County Sheriff's Office; Department of Homeland Security - Immigration and Customs Enforcement; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Forest Service; U.S. Army National Guard; Texas Parks and Wildlife; Sabine County Sheriff's Office; Henderson County Sheriff's Office; Harrison County Sheriff's Office; Anderson County Sheriff's Office; Upshur County Sheriff's Office; Houston County Sheriff's Office; Morris County Sheriff's Office; Longview Police Department; and Gilmer Police Department. This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Ryan Locker.
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Gregg County Man Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TYLER, Texas – A 44-year-old Longview, Texas, man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office today.
Correy James Rider was found guilty by a jury of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and crack cocaine. The verdict was reached today following a two-day trial before U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, Rider was indicted together with several co-defendants on charges related to the distribution of methamphetamine and crack cocaine in the Gregg County area. On different occasions, Rider sold methamphetamine to an informant in 2017 and possessed methamphetamine and crack cocaine with intent to distribute it from a Longview, Texas motel room in 2018.
“Federal law enforcement is active in East Texas,” said United States Attorney Brown. “We are working with our state and local partners to move against drug dealers, large and small. It does not pay in the long run for people to get involved in the drug trade.”
Under the federal statute, Rider faces from 10 years 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 Federal Bureau of Investigation, Gregg County Organized Drug Enforcement (CODE) Unit and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Lucas Machicek and Ryan Locker.
Florida Man and Woman Indicted for Trafficking Drugs Through Southeast TexasRead the Press Release
BEAUMONT, Texas – A Florida man and woman have been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Ryan Andrew Davis, 35, of Clearwater, Florida and Erica Ann Lang, 35, of St. Petersburg, Florida, were indicted by a federal grand jury on Nov. 6, 2019, and charged with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to information provided 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.
If convicted, Davis and Lang each face from 10 years to life in federal prison.
This case is being 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.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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BEAUMONT, Texas – A Florida man and woman have been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Ryan Andrew Davis, 35, of Clearwater, Florida and Erica Ann Lang, 35, of St. Petersburg, Florida, were indicted by a federal grand jury on Nov. 6, 2019, and charged with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to information provided 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.
If convicted, Davis and Lang each face from 10 years to life in federal prison.
This case is being 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.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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North Texas Strike Force Arrests 10 Defendants Related to Collin County Overdose DeathRead the Press Release
SHERMAN, Texas - U.S. Attorney Joseph D. Brown announced today that 10 individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On Oct. 30, 2019, a combined task force of federal, state and local law enforcement executed federal arrest warrants as the result of an Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force investigation in the North Texas Area. The investigation came about as a result of a Fairview, Texas overdose death in December, 2018.
The defendants are charged in the seven-count indictment with possession with intent to distribute and distribution of controlled substances resulting in death and aiding and abetting; conspiracy to distribute and possession with intent to distribute a controlled substance; accessory after the fact; misprision of a felony; possession with intent to distribute and distribution of controlled substances and aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm in furtherance of a drug trafficking crime. Those arrested and named in the indictment are:
Gary Collin Bussell, 50, of Dallas;
Ben Westin, 28, of Carrollton, Texas;
Scott Perras, 27, of McKinney, Texas;
Frank Eric Dockery, 45, of Blue Ridge, Texas;
William Grant Allbrook, 32, of The Colony, Texas;
Austin Seymour, 24, of Dallas;
Lisa Young, 32, of Dallas;
George Wagner, III, 46, of Garland, Texas;
Gina Corwin, 51, of Dallas; and
Todd Shewmake, 34, of McKinney, Texas.The defendants made initial appearances last week.
This prosecution was brought as a part of the Department of Justice’s OCDETF Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the North Texas Strike Force is to target the region’s largest threats, with particular emphasis on heroin and synthetic opioids trafficking.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
This case is being investigated by the North Texas Strike Force. Strike Force members are the U.S. Drug Enforcement Administration; U.S. Federal Bureau of Investigation; U.S. Marshals Service; U.S. Internal Revenue Service – Criminal Investigations Division; U.S. Postal Inspection Service; Dallas Police Department; Garland Police Department; Grand Prairie Police Department; Grapevine Police Department; Lancaster Police Department; Plano Police Department; Sherman Police Department; and Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Jay R. Combs.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Operation Dirty Bird Brings Down Texas Drug Trafficking OrganizationRead the Press Release
TEXARKANA, Texas - U.S. Attorney Joseph D. Brown announced today that three search warrants were executed this morning in Dallas County, Texas in relation to a drug trafficking organization in the Eastern District of Texas.
While executing the search warrants, law enforcement officers seized six firearms; a large quantity of ammunition; more than 27 kilograms of suspected cocaine; suspected marijuana; approximately $200,000.00 in cash, jewelry, and luxury goods; five vehicles, and other drug trafficking paraphernalia and proceeds in addition to arresting two men facing federal drug and firearms charges.
The operation this morning was the result of a drug trafficking and money-laundering investigation that has already led to the seizure of $349,600 in cash that was being smuggled to Mexico, almost ten kilograms of cocaine that was being smuggled from Pittsburg, Texas, through Tennessee to North Carolina, and more than a quarter kilogram of methamphetamine in Mt. Pleasant, Texas.
Three men have been charged with conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, and heroin and with carrying a firearm during and in relation to the drug trafficking conspiracy. Jose Armando Rosales-Bernal, 27, of Dallas; Julio Villarreal, 35, of Mesquite, Texas; and Armando Moreno, Jr., 30, of Roma, Texas; were named in an indictment and a complaint. Rosales-Bernal and Villarreal were arrested this morning during the execution of search warrants in Dallas and Mesquite, Texas, and they will appear in the Dallas Division of the Northern District of Texas. Moreno was arrested on Oct. 29, 2019, in George West, Texas, after a traffic stop revealed $349,600 in cash hidden in secret compartments in the vehicle he was driving, and he will appear in the Corpus Christi Division of the Southern District of Texas.
Rodolfo Javier Falcon, Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, and Gerardo Cabrera Ramirez were previously charged and arrested as a result of this investigation. Gardea and Ornelas-Pineda have pleaded guilty and are awaiting sentencing. Falcon and Ramirez are awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas.
If convicted, Falcon, Rosales-Bernal, Ramirez, Villarreal, and Moreno, face a minimum of 10 years and as much as life in federal prison.
This case is being investigated by the Mt. Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division. In addition, the following agencies have played critical roles in this investigation: the Dallas office of Homeland Security Investigations; the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; and the 23rd Judicial Drug Task Force in Dickson, Tennessee. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mexican National Sentenced to over 30 Years for Southeast Texas KidnappingRead the Press Release
BEAUMONT, Texas – A 22-year-old Mexican national living in Liberty, Texas, has been sentenced for federal kidnapping violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Juan Carlos Saucedo-Meza was found guilty by a jury on April 24, 2019 of kidnapping and was sentenced to 365 months in federal prison on Oct. 30, 2019, by U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning on Aug. 24, and continuing into the early hours of Aug. 25, 2018, Saucedo-Meza kidnapped a woman from Liberty, Texas and transported her to Lake Charles, LA, against her will.
Saucedo-Meza stopped the vehicle in Jefferson County where the woman was raped and assaulted. The victim escaped Saucedo-Meza in Lake Charles, Louisiana when he stopped for gas. She then locked herself in a bathroom at the gas station and obtained a phone to call 911.
Under federal sentencing guidelines, Judge Crone found that Saucedo-Meza’s sentencing range was 292 months to 365 months imprisonment, but elected to sentence him to 365 months imprisonment. The potential sentencing range which Saucedo-Meza faced was increased in the case because the court found that an obstruction of justice enhancement applied to sentencing. A recording of a conversation in a police interview room revealed that the defendant aided another woman, to whom he was married at the time, in attempting to contact the victim and offering her a truck and money if the victim requested authorities to dismiss the case. Saucedo-Meza was indicted by a federal grand jury on Sep. 5, 2018 and charged with kidnapping.
A statement written by the victim was read during sentencing concluded, “The time of imprisonment that you receive will never be enough for the harm that you have caused me, but it brings a sort of comfort to know that you are no longer free.”
“This was a violent assault, and no doubt will affect the victim of this crime forever,” said United States Attorney Joe Brown. “The fact that the defendant tampered with a witness shows that the defendant had no remorse, will continue to engage in criminal conduct, and it attacks the criminal justice system.”
This case was investigated by the Federal Bureau of Investigation, Jefferson County Sheriff’s Office, Liberty County Sheriff’s Office, Lake Charles Police Department, and Jefferson County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and K. P. Kennedy Gates.
Former Administrator of Texarkana Assisted Living Facility Guilty of Federal ViolationsRead the Press Release
TEXARKANA, Texas – A 43-year-old Little Rock, AR man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Antonio Otero pleaded guilty to an Information charging him with equity skimming today before U.S. Magistrate Judge Barry A. Bryant.
According to information presented in court, from before 2011 until October 2015, Otero was the administrator of the Magnolia Alzheimer’s Assisted Living facility in Texarkana, Texas, and was instrumental in the founding and operation of the facility. In order to secure millions of dollars in necessary funding, Otero obtained a loan that was insured by the U.S. Department of Housing and Urban Development (HUD.) The HUD insured loan provided a favorable interest rate and did not require the owners of the Magnolia to take personal responsibility for the loan in the event of a default. Instead, HUD would suffer the financial loss in the event that the Magnolia defaulted on the loan. As a condition of this federal benefit, Otero and the owners of the Magnolia agreed to be bound by a regulatory agreement with HUD that prohibited them from removing equity from the Magnolia unless the loan was being paid and the Magnolia had surplus cash.
Instead of paying the HUD insured loan, Otero engaged in a scheme to skim equity from the Magnolia. For example, Otero took money from the Magnolia to pay for $3,952 of camera equipment, a $3,247 watch, $2,520 in landscaping for his personal residence, a $27,408 personal mortgage payment, a $12,750 down payment on a personal vehicle, and $1,540 tickets to a Dallas Cowboys football game. Additionally, he took money from the Magnolia and gave it to other individuals, including $13,000 for cosmetic surgery, $5,500 for a loan repayment, and $30,000 in equity distributions. In total, Otero took personal responsibility for causing a loss to the United States in the amount of $2 million. As part of his plea agreement, he has agreed to pay restitution in that amount to the United States.
Under federal statutes, Otero faces up to five years in federal prison at sentencing and restitution to the parties involved. 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 is being investigated by the Fort Worth Office of the U.S. Department of Housing and Urban Development’s Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Central Texas Lawyer Guilty of Swindling Colombian Drug Trafficking ClientsRead the Press Release
SHERMAN, Texas – A Central Texas criminal defense lawyer was found guilty of federal violations related to an international fraud scheme involving his Colombian cocaine trafficking clients, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office today.
James Morris Balagia, 62, of Manor, Texas was found guilty by a jury of five federal charges today following a two week trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Balagia, also known as Jamie Balagia, also known as The DWI Dude,
had a law practice with offices in San Antonio and Manor specializing in defending clients charged with violations such as driving while intoxicated and drug possession. In 2014, Balagia conspired with Florida private investigator, Chuck Morgan, and Colombian attorney, Bibiana Correa Perrea to swindle Colombian drug traffickers under the guise of bribing officials in the United Sates. During meetings in Colombia and in Collin County, Texas, the group represented that in exchange for inflated “attorney fees,” they were in contact with government officials in the United States who would accept bribes resulting in either the dismissal of their criminal charges or significant reductions in their U.S. federal prison sentences. In reality, there were no bribes or government officials.
The Office of Foreign Assets and Control (OFAC) had previously designated Balagia’s Colombian clients as “Specially Designated Narcotics Traffickers.” These individuals were considered some of the biggest drug traffickers in the world. As such, they were on an OFAC list, essentially freezing their assets and prohibiting U.S. persons from engaging in any financial transactions or dealings with them unless they had received an OFAC license. In order to comply with federal requirements under the “Kingpin Act,” Balagia was advised to obtain an OFAC license on multiple occasions but failed to do so.
As part of the scheme, Balagia provided Colombian co-conspirators with his personal bank account number and routing number. Evidence at trial showed multiple deposits over several months into the account in amounts intended to avoid federal cash transaction reporting requirements. The cash deposits were made at bank counters across the United States by anonymous individuals with daily deposits totaling just under the $10,000 reporting threshold. Additionally, at least four bulk cash payments were made to Balagia in amounts ranging from approximately $70,000 to $120,000. Balagia admitted to driving from his San Antonio office to a mall parking lot in Katy, Texas, where he was given a shopping bag filled with bundles of cash from either an unknown individual, or an individual who identified himself only as “Coco.” In an attempt to conceal these payments, Balagia failed to report the payments as required by federal law.
Balagia was indicted by a federal grand jury on Dec. 15, 2016. Bibiana Correa Perea pleaded guilty and was sentenced to 84 months in federal prison on June 29, 2018. Chuck Morgan pleaded guilty and was sentenced to 72 months in federal prison on Mar. 8, 2018.
Balagia was found guilty of conspiracy to commit money laundering; obstruction of justice, violation of the Kingpin Act; conspiracy to commit wire fraud; and conspiracy to obstruct justice.
“This defendant-and his group-were running a scam on drug dealers – some of the biggest drug dealers in the world,” said U.S. Attorney Joe Brown. “Fortunately for him, these drug dealers chose to turn him into the FBI rather than handle it any other way. It is important for the American justice system that we prosecute those who represent that the justice system is for sale. The Colombians, and criminals in every other country that we deal with, need to understand things don’t work that way in the United States. When we have lawyers representing that officials can be bought, we take that very seriously.”
“The defendant used his position as an attorney to not only steal from drug lords, but also to sell out the U.S. justice system in order to line his own pockets,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “The FBI prioritizes all cases of public corruption and we will continue to hold these officials accountable for using their positions to benefit financially.”
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.
Under the federal sentencing guidelines, Balagia faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys Heather H. Rattan and Jay Combs.
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Two Texas Women Indicted for Money Laundering SchemeRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced that two Texas women have been indicted on money laundering charges in the Eastern District of Texas.
Pamela Sue Hannan, 66, of Sherman, Texas, and Pamela Sue Jennings, 68, of Houston, Texas, were indicted by a federal grand jury on October 16, 2019. The defendants were both charged with conspiracy to commit money laundering.
According to the indictment, Hannan and Jennings are alleged to have laundered funds received from romance scam victims and from victims of other fraudulent schemes on behalf of their co-conspirators, who were based outside of the United States. In order to facilitate the scheme, Hannan and Jennings opened bank accounts in the names of businesses which purported to provide legitimate services. In reality, these businesses were used to facilitate the money laundering scheme. Together, Hannan and Jennings received more than $880,000 from victims of the scheme. The majority of the funds they received were subsequently transferred overseas to their co-conspirators.
If convicted, Hannan and Jennings each face up to 20 years in federal prison.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations with assistance from the U.S. Postal Inspection Service, the Sherman Police Department, and the Appleton (Wisconsin) Police Department. It is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jefferson County Man Guilty in Southeast Texas Arson and Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 51-year-old Groves, Texas man has been found guilty of charges related to an arson and insurance fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Patrick Wayne Bronnon was found guilty of 40 charges including conspiracy to commit mail fraud and use of a fire in commission of a felony today by a jury following an eight-day trial before U.S. District Judge Marcia A. Crone. The jury deliberated approximately 75 minutes before returning with a guilty verdict.
According to information presented in court, beginning in 2011, Bronnon, and others, began executing a scheme to defraud various insurance companies through fraudulent claims on homes and vehicles. The scheme involved identifying a low value property and purchasing it through a co-defendant straw purchaser. Within a few weeks of a down payment being made, Bronnon or an associate would intentionally damage the home, typically by fire or water, in order to collect insurance proceeds. In total, nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims were filed with various insurance companies on nine different addresses, totaling approximately $1.7 million in fraudulent payments. The properties were located in Port Arthur, Port Neches, Beaumont, and Sugarland, Texas.
“This was a scheme motivated by greed,” said U.S. Attorney Joe Brown. “It cost insurance companies certainly, but it also endangered people - emergency personnel, neighbors, and others. And these frauds contribute to higher insurance costs for all of us. We take these things very seriously.”
Under the federal statute, Bronnon faces up to 20 years in federal prison at sentencing for the conspiracy and mail fraud counts and up to 70 years for the use of fire in commission of a felony violations. 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. Postal Inspection Service, National Insurance Crime Bureau and prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and K.P. Kennedy Gates.
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Tarrant County Man Guilty of Child Coercion and Enticement ViolationRead the Press Release
PLANO, Texas – A 47-year-old Saginaw, Texas man has been found guilty of attempted child coercion and enticement in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Adam Rene Rodriguez was found guilty by a jury today of attempted coercion and enticement of a minor following a trial before U.S. District Judge Sean D. Jordan.
According to information presented at trial, on May 3, 2019, Rodriguez was arrested by members of the FBI Dallas Field Office and the Plano Police Department when he traveled to Plano to engage in sex acts with an individual he believed to be a 14-year old child.
During the 4-day trial, jurors heard that an undercover agent entered a sexually-oriented messaging group that was run by Rodriguez. Between April 10, 2019 and May 3, 2019, Rodriguez engaged in continuing messages with the undercover persona, even after being repeatedly advised of the persona's age. In the messages, Rodriguez (as username "Texasarod") repeatedly asked for photos of the child, sent the child sexually explicit material, and offered to "train" the child to engage in various sex acts. Evidence presented to the jury also included messages in which Rodriguez instructed the child on how to conceal her online activities and avoid detection by her parents. The exchanges culminated in a meeting on May 3, 2019, to which Rodriguez arrived in his personal vehicle and bringing condoms and sexual lubricant in order to engage in illegal sex acts with the child. Rodriguez testified on his own behalf, contending that he believed that he was communicating with an adult who was role playing or fantasizing about pretending to be a child.
“This is another example of the dangers that are out there online for children,” said U.S. Attorney Joseph D. Brown. “Law enforcement will continue to be aggressive in deterring this behavior. Predators should know by now that we are online as well, and they will eventually be caught.”
Under federal statutes, Rodriguez faces a minimum of 10 years and 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 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 was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
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New Boston Man Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 47-year-old New Boston, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Armando Moya was found guilty of conspiracy to possess with intent to distribute and distribution of heroin, fentanyl, and cocaine. The verdict was reached today following a four-day trial before U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on June 7, 2018, law enforcement officers from the Drug Enforcement Administration and supporting law enforcement agencies executed a search warrant at Moya’s home. During the search, law enforcement officers located $198,184.00 in rubber-banded bundles of cash hidden in boxes in Moya’s closet with a pistol. Moya then confessed to being part of an international drug-trafficking ring: smuggling large quantities of drugs from Mexico to cities across the United States and returning with large quantities of United States currency. Moya described how he received drugs from his brother, Jose Roberto Moya. He also explained that the bulk currency hidden in his house was drug proceeds from New York that was destined for Mexico. In addition to his brother, Armando Moya identified multiple people involved in their drug-trafficking conspiracy, including their boss in Mexico named Don Roberto. The defendant’s brother, Jose Roberto Moya, was arrested earlier on his way to Armando Moya’s New Boston residence with eight kilograms of heroin and one kilogram of fentanyl. Testimony and extensive digital evidence at trial established that Armando Moya was responsible for delivering as much as 150 kilograms of heroin, fentanyl, and cocaine from November 2017 through June 2018 to Illinois, New York, Ohio, Tennessee, and Pennsylvania. Special Agents from the DEA also testified at trial regarding the deadly role that heroin and fentanyl are currently playing in the nation-wide opioid epidemic.
Armando Moya’s codefendant and brother-in-law, Oscar Alan Chavez-Belman, has pleaded guilty and is awaiting sentencing. According to the factual basis in Chavez-Belman’s plea agreement and testimony at trial, Armando Moya supervised Chavez-Belman’s involvement in the conspiracy. Jose Moya has also pleaded guilty and been sentenced to federal prison. Armando Moya was indicted by a federal grand jury on June 21, 2018.
Under the federal statute, Moya 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 Drug Enforcement Administration’s Tyler, Corpus Christi, and Chicago offices and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Ryan D. Locker.
Upshur County Convicted Sex Offender Indicted on Child Sexual Exploitation ViolationsRead the Press Release
TYLER, Texas – A 39-year-old Ore City, Texas man has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jeremy OKieth Kyle, also known as Corey Webster, also known as Rick, also known as Derrick Willis, also known as Eric Sanders, also known as Brad Smith, also known as Jason, also known as J, was named in a superseding indictment returned by a federal grand jury on Oct. 16, 2019 charging him with coercion and enticement; sexual exploitation of children; travel with intent to engage in illicit sexual conduct; and penalties for registered sex offenders.
According to the indictment, on various dates between 2013 and 2018, Kyle, a convicted sex offender, is alleged to have committed numerous offenses against 18 different minor female victims.
If convicted of all counts, Kyle will receive life in federal prison.
Anyone who had contact, in person or on social media, with an individual who identified himself as Jeremy OKieth Kyle, Corey Webster, Rick, Derrick Willis, Eric Sanders, Brad Smith, Jason, or J, is urged to contact the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect the individuals’ identities and confidential information.
The investigation leading to the charges was conducted by agents from the Federal Bureau of Investigation (FBI), the Texas Department of Public Safety - Criminal Investigations Division, the Tyler Police Department, the Longview Police Department, the Ore City Police Department, the Hughes Springs Police Department, the Daingerfield Police Department, and the Red Oak Police Department. Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.
This case is being 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.
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.
Texarkana Felon Sentenced for Firearms PossessionRead the Press Release
TEXARKANA, Texas – A 31-year-old Texarkana, 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.
Kendall Ray Gray was found guilty by a jury on May 29, 2019, of being a felon in possession of a firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on Nov. 9, 2018, Gray’s vehicle was spotted by police as he drove to a location known for drug activity in Texarkana. Upon noticing the marked patrol car, Gray attempted to evade police by making four successive left turns and then briefly parking in a restaurant parking lot. Gray then exited the business parking lot by illegally turning directly into a center lane. Again, officers attempted to follow Gray as he improperly signaled turns and accelerated away from their marked police car. Gray drove into a residential area and parked along a public street. As police activated the lights on their car, Gray jumped out of the vehicle, locked the doors, and ran. Gray was apprehended by a police office on foot and arrested for evading detention. A search of the vehicle revealed small bags containing suspected marijuana and a loaded handgun with a chambered round was positioned under the driver’s side seat.
Further investigation revealed Gray was a convicted felon having been previously convicted of counterfeiting and forging obligations or securities of the United States in 2012 in the Eastern District of Texas and forgery in 2015 in Bowie County, Texas. As a convicted felon, Gray is prohibited from owning or possessing firearms or ammunition. Gray was indicted by a federal grand jury on Jan. 17, 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 Texarkana, Texas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Colleen Bloss and Alan Jackson.
Michigan Man Sentenced for Coercion and Enticement of a Child in East TexasRead the Press Release
TYLER, Texas – A 22-year-old Harrison, Michigan man has been sentenced for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Daniel Wayne Little, II, pleaded guilty on May 13, 2019, to coercion and enticement of a child and was sentenced to 240 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, over a 10-month period between December 2016 and October 2017, Little pursued an inappropriate relationship with a 10-year-old child. Little used internet applications to find the victim and then sought sexually explicit images and videos from her, demanding specific images and videos and describing the sexual acts that he wanted to engage in with her. Little was indicted by a federal grand jury on Nov. 14, 2018.
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 Federal Bureau of Investigation’s Tyler Resident Agency and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Mexican National Indicted for Illegal Reentry following Angelina County Intoxication Manslaughter ConvictionRead the Press Release
BEAUMONT, Texas – A 41-year-old Mexican citizen has been indicted for immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Vicente Gonzalez-Rico was named in an indictment returned by a federal grand jury on Oct. 2, 2019, charging him with unlawful reentry of a deported alien.
According to documents filed in court, on Jan. 26, 2017, was arrested for intoxication manslaughter for an incident which occurred on May 30, 2009 in Lufkin, Texas. While processing the defendant, it was discovered that he had previously been deported from the United States in 2005. Gonzalez-Rico was convicted of three counts of intoxication manslaughter in state district court in Lufkin, Texas and sentenced to 18 years in prison on Oct. 17, 2017.
If convicted, Gonzalez-Rico faces up to two years in federal prison and deportation.
This case is being investigated by the Department of Homeland Security/Enforcement Removal Operations and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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.
Kemah Man Indicted for Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A 58-year-old Kemah, Texas man has been indicted for attempted bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jimmy James Mamoth, Jr., was indicted by a federal grand jury on Oct. 2, 2019 and charged with attempted bank robbery.
According to information presented by prosecutors, on Sep. 27, 2019, Mamoth was alleged to have been seen walking outside the Texas First Bank located on FM 834 in Hull, Texas, dressed in a dark hooded jacket with a Halloween-style mask on his face. Mamoth was also reported to have been wearing gloves and carrying a small duffle bag. As Mamoth approached the bank’s entrance, a bank customer in a vehicle saw Mamoth pulling the mask over his face. The bank customer began honking the horn when he realized Mamoth was entering the bank. The honking startled Mamoth who then ran past the bank entrance and into the nearby woods. The customer followed Mamoth and reported the incident to police. Law enforcement officers responded and were able to locate Mamoth with the reported hooded jacket, gloves, mask, duffle bag and an airsoft style plastic replica gun meant to resemble a Beretta 9mm pistol.
If convicted, Mamoth faces up to 20 years in federal prison.
“What a great job this citizen did to prevent a bank robbery,” said U.S. Attorney Joe Brown. “He didn’t just look the other way, he acted. And even though it may have seemed like a small act, it could have saved lives. He is a hero in my book.”
This case is being investigated by the Federal Bureau of Investigation and the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Kennedy Gates.
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.
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Jefferson County Man Indicted on Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been indicted for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Brandon Michael Wyatt was named in a three-count indictment returned by a federal grand jury on Oct. 2, 2019, charging him with possession of child pornography, distribution of child pornography, and receipt of child pornography.
According to the indictment, on June 17, 2019, Wyatt was in possession of a digital media card that contained at least one visual depiction of a pre-pubescent minor engaged in sexually explicit conduct. The indictment also alleges that from Sep. 5, 2018 to Dec. 6, 2018, Wyatt received and distributed visual depictions that involved the use of a person under the age of 18 engaging in sexually explicit conduct.
If convicted, Wyatt faces up to ten years in federal prison.
This case is being 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 is being investigated by Homeland Security Investigations, the Orange County Sheriff’s Office, and the Office of the Attorney General – Louisiana Bureau of Investigation. Assistant U.S. Attorney Christopher T. Tortorice is prosecuting the case.
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.
Jefferson County Couple Indicted for Falsifying Tax ReturnRead the Press Release
BEAUMONT, Texas –A Jefferson County business owner and his wife have been indicted on 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 named in a seven-count indictment charging them with conspiracy to defraud the United States for purposes of impeding government functions and six counts of making a false return. The indictment was returned by a federal grand jury on Sep. 4, 2019. The defendants made initial appearances before U.S. Magistrate Judge Keith F. Giblin today.
According to information presented by prosecutors, the Brocato’s owned a lawn service company, Superior Lawn Service, which was operated for tax purposes as an S corporation. The Brocato’s are 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 Brocato’s are alleged to have conspired to defraud the United States for the purpose of impeding, impairing, 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, it is alleged that that they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocato’s are alleged to have underreported income received by checks from numerous customers of the company and having the checks cashed and converted to cash rather than depositing the checks into the company accounts and then failing to report the 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.
If convicted, the defendants each face up to five years in federal prison for the conspiracy charge and up to three years for each of the false return charges.
This case is being investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hopkins County Man Sentenced for Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 53-year-old Sulphur Springs, Texas man has been sentenced to 17.5 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Russell Dean Hill pleaded guilty on May 3, 2019, to distributing child pornography and was sentenced to 210 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 2, 2019. Upon his release from the Bureau of Prisons, Hill will serve 8 years on federal supervised release and will be required to register as a sex offender.
According to information presented in court, in September of 2018, law enforcement in Hopkins County, Texas received a tip that Hill, who had previously been convicted of child exploitation offenses, had uploaded child pornography onto an online social media platform. A team of law enforcement officers from Hopkins County Sheriff’s Office, Sulphur Springs Police Department, and the FBI executed a search warrant at the residence where Hill was residing in November 2018. Law enforcement discovered that Hill was trading child pornography on multiple platforms, using a digital device that he owned and possessed. During the investigation, Hill also told law enforcement that he was in the process of trying to privately adopt what he believed to be an 11-year old boy in order to teach the child about sex. Through further investigation, and with the assistance of FBI-South Bend, Indiana, law enforcement determined that even though Hill had been communicating with someone he believed to be the child, the person with whom he had been communicating was not actually a child, and in reality, there was no child at risk.
“The level of depravity we discover never ceases to amaze,” said United States Attorney Joseph D. Brown. “Thankfully, there are law enforcement officers watching for these types of things, and doing everything they can to prevent these crimes.”
“The defendant was not only a prolific collector and distributor of child pornography, but also a registered sex offender who posed a threat to the community he lived in and individuals he interacted with online,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Division. “The FBI will continue working with our state and local partners to actively identify and pursue sexual predators who endanger the safety of our children.”
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 Hopkins County Sheriff’s Office, the Federal Bureau of Investigation’s Tyler Resident Agency, and the Sulphur Springs Police Department and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
Carrollton Man Sentenced to 30 Years for Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 50-year-old Carrollton, Texas man has been sentenced to 30 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Patrick Mosher pleaded guilty on March 19, 2019, to two-counts of sexual exploitation of children and was sentenced to 360 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 2, 2019. Mosher must also pay a fine of $50,000 and an assessment pursuant to the Justice for Victims of Trafficking Act of $10,000, and must forfeit $50,000 from the sale of his home.
According to information presented in court, in September of 2018, a teenager known to Mosher reported to school officials that he believed he had been secretly filmed in a bathroom of Mosher’s home. Carrollton Police Department detectives executed a search warrant at the home and seized a number of hidden cameras and electronic devices. A forensic review of those devices revealed a number of videos of males captured in private spaces within the home. It appeared that the males did not know they were being recorded or that Mosher had obtained footage of them engaged in private or personal activities. A total of five victims were identified in recordings from Mosher’s home. Mosher’s sentence also included a conviction for communicating with a minor online, persuading the minor to engage in sexually explicit conduct, and then filming the child – again without the child’s knowledge.
“This case is another warning to parents to be aware of who their children are communicating with, and to be careful about who they allow to be around their children,” said United States Attorney Joe Brown. “There are threats from so many different directions these days, and the internet makes it so much easier for offenders. We have to get the message to our kids to be aware of these threats.”
“This predator of children volunteered for a position of trust as a host parent for international foreign exchange students so that he could sexually exploit these children,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “For grossly abusing that trust, he has earned the 30-year prison sentence imposed upon him after victimizing at least five of these students.”
“On behalf of the Carrollton Police Department, I thank the U.S. Attorney’s Office for the Eastern District for partnering with us to protect children from predators like Joseph Patrick Mosher,” said Carrollton Police Chief Derick Miller. “May this sentence bring peace to his victims and may it encourage others as yet unheard to speak out.”
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 Homeland Security Investigations and the Carrollton Police Department and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
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Smith County Man Guilty in Counterfeit Immigration Documents ConspiracyRead the Press Release
TYLER, Texas –A 53-year-old Flint, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jose Luis Marquez Rodriguez pleaded guilty on Oct. 1, 2019 to conspiracy to produce, transfer, and forge false identification documents before U.S. Magistrate Judge K. Nicole Mitchell. Marquez Rodriguez also agreed to the forfeiture of several firearms and ammunition; a computer and three printers; $9602 cash; funds in three bank accounts totaling $21,359.09; and two pieces of real property in Flint, Texas. Marquez Rodriguez has also agreed to a money judgment in the amount of $308,961.09, representing proceeds received from his conduct.
According to information presented in court, beginning in April 2009, Marquez Rodriguez was involved in a conspiracy to produce and sell fictitious U.S. identification documents to others. The false documents included U.S. Social Security cards and Permanent Residence cards. Marquez Rodriguez admitted to being personally responsible for the transfer of over 100 false identification documents as part of this conspiracy. Marquez Rodriguez was indicted by a federal grand jury on April 23, 2019.
Under the federal statute, Marquez Rodriguez 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 is being investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Colleen Bloss.
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Federal Inmate Indicted for Escaping from PrisonRead the Press Release
BEAUMONT, Texas – A 41-year-old federal prison inmate has been indicted for escaping from prison announced U.S. Attorney Joseph D. Brown today.
Anthony Safford King was indicted by a federal grand jury on Oct. 2, 2019 and charged with escape from custody.
According to information presented by prosecutors, on Sep. 28, 2019, King was discovered missing from the Satellite Prison Camp at the Federal Correctional Complex (FCC) in Beaumont, Texas. According to the FCC, law enforcement authorities were notified and an internal investigation was initiated. King is described as a “black male with black hair, brown eyes, 6’01” tall and weighs approximately 200 pounds.” King was serving a 48-month federal sentence for possession with intent to distribute cocaine out of the Southern District of Alabama.
Anyone with information related to King should contact the U.S. Marshals Service at USMS TIPS via www.USMARSHALS.GOV or through the app USMS TIPS.
If convicted, King faces an additional five years in federal prison.
This case is being investigated by the U.S. Marshals Service, the U.S. Bureau of Prisons and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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.
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Houston Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 52-year-old Houston 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.
Gary Allen Patterson pleaded guilty on Feb. 2, 2019, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 262 months in federal prison by U.S. District Judge Marcia A. Crone on Sep. 30, 2019.
According to information presented in court, Patterson was identified during a federal drug investigation as trafficking large quantities of methamphetamine in the Houston, Liberty County and Beaumont, Texas area. In October 2017, Patterson arranged two methamphetamine deals with an undercover agent and directed a co-defendant to meet with the agent and deliver the drugs. In April 2018, a Nederland, Texas traffic stop resulted in the discovery of 24 ounces of methamphetamine that had been supplied by Patterson. Overall, Patterson was responsible for the possession with intent to distribute and distribution of more than one kilogram of methamphetamine. Patterson was indicted by a federal grand jury on May 2, 2018.
This case was investigated by the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Michelle S. Englade and Michael Anderson.
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Smith County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas - A 36-year-old Tyler, 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.
Florencio Campos, Jr., pleaded guilty on March 19, 2019, to conspiracy to possess with intent to distribute and distribution of cocaine and was sentenced to 36 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Campos was also ordered to submit to the forfeiture of $27,810.
According to information presented in court, on May 22, 2018, law enforcement agents executed a search warrant at Campos’ residence where they discovered a number of firearms and ammunition and evidence of drug trafficking activities including several pages of ledgers for tracking illegal cocaine transactions and nearly $28,000 in cash. Agents also recovered cellular phones belonging to Campos that contained text messages from Campos and to Campos relating to illegal cocaine transactions. Campos was indicted by a federal grand jury on June 29, 2018.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, Smith County Sheriff’s Office, and Tyler Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
Violent Offender Sentenced for Illegally Re-entering United StatesRead the Press Release
SHERMAN, Texas –A 43-year-old Mexican national with a prior felony conviction has been sentenced to federal prison for immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Julio Edgar Ruiz-Bautista pleaded guilty on July 19, 2019, to unlawful reentry by a deported alien and was sentenced to 54 months in federal prison by U.S. District Judge Amos Mazzant on Sep. 18, 2019
According to information presented in court, on Feb. 22, 2019, Ruiz-Bautista was taken in to custody following an investigation by ICE Dallas Fugitive Operations Team 3. The investigation revealed Ruiz-Bautista had been previously removed from the United States on Oct. 3, 2017, following serving a five year sentence for aggravated sexual assault of a child in Dallas County. Ruiz-Bautista was indicted on federal immigration violations on Mar. 20, 2019 and will be deported after serving this prison sentence.
“The judge’s sentence was, I would suspect, a result of the fact that this offender had a history of sexual assault of a child, and then continued to illegally re-enter this country,” said U.S. Attorney Joseph D. Brown. “These are the types of offenders that make the immigration issue difficult for everyone.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and prosecuted by Assistant U.S. Attorney William R. Tatum.
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Van Zandt County Man Guilty of Child Pornography ViolationsRead the Press Release
TYLER, Texas – A 58-year-old Wills Point, Texas man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James Joseph Veeser pleaded guilty to receiving child pornography today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, between January 2016 and January 2019, Veeser received child pornography using the internet and a computer, including three videos containing child pornography.
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.
Under federal statutes, Veeser faces a minimum of five years and up to 20 years in federal prison. These guidelines prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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North Texans Charged with Health Care Fraud ViolationsRead the Press Release
SHERMAN, Texas – Three North Texas residents have been indicted on health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Demetrius Cervantes, 44, of McKinney, Texas, Amanda Lowry, 39, of Sherman, Texas, and Lydia Henslee, 27, of Denison, Texas, were named in a federal indictment returned by a grand jury on Sep. 11, 2019. The defendants were each charged with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification
Cervantes, Lowry, and Henslee were indicted by a federal grand jury on Sep. 11, 2019. If convicted, they each face up to 15 years in federal prison.
The indictment was announced today during a press conference held in Dallas with Texas U.S. Attorneys and the Assistant Attorney General of the Justice Department’s Criminal Division. A total of 58 individuals across all four federal districts in Texas were charged for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
According to the indictment, the defendants are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients of the provider. The information that was stolen from the provider was “repackaged” in the form of false and fraudulent physician orders and sold to durable medical equipment (DME) providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced, and the following forfeitable assets were identified: a 2019 Land Rover Range Rover SC; a 2019 Dodge Durango; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Collin County Couple Indicted in Sex Trafficking ConspiracyRead the Press Release
PLANO, Texas – Two Plano residents have been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown and Homeland Security Investigation Special Agent in Charge Ryan Spradlin today.
Quan Tu, 48, a Vietnamese national, and Li Xin, 44, a Chinese national, were arrested on Aug. 15, 2019, in Houston on Dallas County charges stemming from an ongoing sex trafficking investigation in Collin and Dallas counties. On Sep. 11, 2019, a federal grand jury in the Eastern District of Texas returned a three-count indictment charging Tu and Xin with conspiracy to commit sex trafficking by force, fraud, or coercion; conspiracy to use interstate facilities to manage and facilitate an unlawful prostitution enterprise; and money laundering.
Beginning in December 2018, residents in Richardson, Texas began complaining to the Richardson Police Department that men were traveling to a condominium at all hours of the day and night, some of whom were knocking on neighbors’ doors, seeking sexual services. Upon further investigation by a task force of state and federal law enforcement agencies, officers determined that Tu and Xin were allegedly operating a prostitution enterprise from that location. During the investigation, it was revealed that similar operations were being conducted by the same actors in a single-family residence in Plano and a commercial foot spa in Garland.
The investigation further revealed that advertisements for commercial sex were placed on various websites, listing phone numbers that connected back to Tu and Xin. In the meantime, Asian women traveled to the north Texas area from other states, cities, and countries, often with the promise of legitimate masseuse jobs. Once in Tu and Xin’s employ, the women were taken to one of the three locations (Richardson, Plano, or Garland) where they lived and serviced customers. Tu and Xin collected fees from the women, maintained financial control over them, and intimidated them, thereby compelling them into prostitution. The scheme resulted in the proceeds which allowed Tu and Xin to maintain their lifestyle and to purchase vehicles, including a 2017 Toyota Tundra.
“These defendants took advantage of women who were vulnerable,” said United States Attorney Joseph D. Brown. “The women relied on the defendants for what they needed to live in the United States and it was clear that the defendants were coercive in keeping these women in their employment. Human trafficking degrades its victims and keeps them trapped in unhealthy situations, and we are committed to doing everything we can to stop it.”
“In many cases, victims of human trafficking are immigrants who have been duped into deplorable circumstances by false promises of a better life. Regardless of the scenario, HSI takes a victim-centered approach in these investigations, and we have the unique ability to provide assistance/benefits to victims no matter their citizenship,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “As public awareness increases, our HSI special agents along with our tremendous partners are identifying, investigating and pursuing prosecution against more and more sex traffickers who criminally and without mercy exploit women against their will to generate profits.”
If convicted, Tu and Xin each face up to life in federal prison. Anyone with information regarding this case or any similar activities, can contact the U.S. Attorney’s Office at 1-800-804-3547. This is a confidential line. This case is being investigated by Homeland Security Investigations, Texas Department of Public Safety, and the Richardson Police Department, with assistance of the Plano Police Department, Garland Police Department, and Dallas County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Marisa Miller. It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Texas Healthcare Fraud Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG and the Department of Labor, various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said HHS - OIG Special Agent in Charge C.J. Porter. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
Among those charged in the Northern District of Texas are the following:
- Michael Charles Braddick, Kyle Martin Hermesch, and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
- Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians, Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
- Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
- Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
- Nilesh Patel, Dr. Craig Henry, and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
- Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply, and 4B Ortho Supply, all durable medical equipment companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
- Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba, and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy, and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Texas Health Care Fraud and Opioid Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in losses and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG, the Department of Labor and various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
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Among those charged in the Northern District of Texas are the following:
Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment (DME) companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
Nilesh Patel, Dr. Craig Henry and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply and 4B Ortho Supply, all DME companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
Michael Charles Braddick, Kyle Martin Hermesch and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
Among those charged in the Southern District of Texas are the following:
Diana Hernandez, Kathy Hernandez, Hieu Troung, R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer of the Fraud Section.
Franklin Nwabugwu, R.P.H. was charged for his alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer.
Steven Inbody, M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose. The case is being prosecuted by Trial Attorney Catherine Wagner.
Ashley McCain, John Sims, Gregory Comer, Kesia Banks, Jacqueline Hill and Horace LeBlanc were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation. The case is being prosecuted by Assistant Deputy Chief Aleza Remis of the Fraud Section and Trial Attorney Devon Helfmeyer.
Among those charged in the Eastern District of Texas are the following:
Demetrius Cervantes, 44, of McKinney, Texas, Amanda Lowry, 39, of Sherman, Texas, and Lydia Henslee, 27, of Denison, Texas, were indicted for conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. The case involves the breach of a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients of the provider. The information that was stolen from the provider was “repackaged” in the form of false and fraudulent physician orders and sold to DME providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced and the following forfeitable assets were identified: a 2019 Land Rover Range Rover SC; a 2019 Dodge Durango; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move. This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan.
Joseph Valdie Kimble, 62, of Longview, Texas, pleaded guilty to health care fraud. 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 (a) the beneficiary be bed-confined, and it is documented that other methods of transportation are contraindicated; or (b) 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. The plea agreement provides for an agreed sentence of 30 months in prison and $751,986.80 in restitution. This case is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
Among those charged in the Western District of Texas are the following:
Orlando Garcia-Moya, owner and president of Fleet Ambulance Co. in San Antonio (Fleet), and Melody Ann Villareal, emergency medical technician and Fleet supervisor, were charged for their roles in a scheme to defraud Medicaid by submitting over $2.5 million in fraudulent claims for non-emergency ambulance transportation that was never provided. As a result of the scheme, Fleet received over $1 million in Medicaid funds. The case is being prosecuted by Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorney John Kennedy.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Longview Ambulance Operator Guilty of Health Care FraudRead the Press Release
TYLER, Texas – A 62-year-old Longview, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Joseph Valdie Kimble pleaded guilty to health care fraud on Sep. 11, 2019, before U.S. Magistrate Judge John D. Love.
Kimble’s plea was announced today during a press conference held in Dallas with Texas U.S. Attorneys and the Assistant Attorney General of the Justice Department’s Criminal Division. A total of 58 individuals across all four federal districts in Texas were charged for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
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. The plea agreement provides for an agreed sentence of 30 months in federal prison and $751,986.80 in restitution.
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
A sentencing hearing will be scheduled at a later date.
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 is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Smith County Man Guilty in Counterfeit Immigration Documents ConspiracyRead the Press Release
TYLER, Texas –A 45-year-old Tyler, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Eleazar Juarez Juarez pleaded guilty to conspiracy to produce, transfer, and forge false identification documents today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, beginning in April 2009, Juarez Juarez was involved in a conspiracy to produce and sell fictitious U.S. identification documents to others. The false documents included U.S. Social Security cards and Permanent Residence cards. Juarez Juarez admitted to being personally responsible for the transfer of at least 25 false identification documents as part of this conspiracy. Juarez Juarez was indicted by a federal grand jury on April 23, 2019.
Under the federal statute, Juarez Juarez 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 is being investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Plano Federal Prosecutor Honored by North Texas Crime CommissionRead the Press Release
PLANO, Texas – The North Texas Crime Commission (NTCC) recognized an Eastern District of Texas federal prosecutor as the 2019 Prosecutor of the Year at their monthly membership meeting on Sep. 12, 2019 in Dallas.
Assistant United States Attorney Marisa Miller was honored as Prosecutor of the Year specifically for her outstanding achievements in the areas of combating child exploitation and human trafficking. The award was presented by NTCC Chair David Dean and U.S. Attorney for the Eastern District of Texas, Joseph D. Brown.
AUSA Miller is the Project Safe Childhood Coordinator for the Eastern District of Texas, responsible for the coordination of all of the district’s prosecution of crimes against children and human trafficking. Prior to joining the Eastern District of Texas in 2014, AUSA Miller spent six years as Project Safe Childhood Coordinator for the Western District of New York. Throughout her tenure with the United States Attorney’s Offices in Texas and New York, AUSA Miller has prosecuted crimes against vulnerable persons, including the production of child pornography; the receipt, transportation, distribution and possession of child pornography; enticement of minors, transporting minors in interstate commerce for illegal sexual activity, travel in interstate and foreign commerce for illegal sexual activity, sex trafficking of children, and transportation of individuals in interstate commerce for commercial sex. AUSA Miller received her BA from Bryn Mawr College and her juris doctorate from the University of Michigan Law School.
The North Texas Crime Commission (NTCC) recognized Eastern District of Texas federal prosecutor as the 2019 Prosecutor of the Year (Attorney in Charge of the Plano Office AUSA Jay Combs, AUSA Marisa Miller, First Assistant U.S. Attorney Heather Rattan)Also honored were Department of Homeland Security, Homeland Security Investigations, Special Agent Jason Mitchell as 2019 Federal Agency Officer of the Year and Plano Police Detective Jeffrey Rich as 2019 State/Local Prosecutor of the Year.
“Marisa Miller works very hard to fight child abuse,” said U.S. Attorney Joe Brown. “Whether it is rooting out child predators, bringing law enforcement agencies together, or educating parents on the online threats to their children, Ms. Miller has been a leader in the fight. We are very proud of her efforts.”
The North Texas Crime Commission (formerly the Greater Dallas Crime Commission) was established in 1950. Its belief is that proper enforcement and enlightened prevention can be achieved through a comprehensive and cooperative effort involving concerned citizens and law enforcement. In addition to monthly membership breakfasts, the NTCC travels to Austin monthly during the Legislative Session to meet with key lawmakers and annually to Washington, D.C., to meet with law enforcement officials and lawmakers.
Headshot AUSA Marisa MillerOrange County Felon Indicted for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 30-year-old Vidor, Texas man has been indicted for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown.
Taylor Graham Cozart was indicted by a federal grand jury today and charged with being a felon in possession of a firearm.
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.
If convicted, Cozart faces up to 10 years in federal prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Houston Men Indicted for Interstate Transportation of Stolen GoodsRead the Press Release
BEAUMONT, Texas – Two Houston men have been indicted for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Lynric Doniel Strambler, 40, and Curtic DeMaine White, 43, were indicted by a federal grand jury today and charged with interstate transportation of stolen property and conspiracy.
According to information presented in court, on July 31, 2019, Strambler and White are alleged to have burglarized the Best Buy Co., Inc in Mobile, Alabama and D’Iberville, Mississippi. Strambler and White were arrested in Vidor, Texas while transporting approximately 20 stolen iPhones from Mississippi to Texas.
If convicted, the defendants each face up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Vidor Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Gregg County Man Sentenced for Federal Financial CrimesRead the Press Release
TYLER, Texas – A 59-year-old Longview, Texas, man has been sentenced to federal prison for criminal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno.
Timmy Lynn Vaughn pleaded guilty on May 2, 2019, to making false statements to a bank and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Jeremy D. Kernodle. Vaughn was also ordered to pay restitution in the amount of $145,100.
According to information presented in court, in March of 2016, Vaughn applied for a personal loan at a bank located in the Eastern District of Texas using the name of another individual. The promissory note and documents submitted to the bank in connection with the application contained forged signatures of the borrower. As a result, the loan was approved and the proceeds remitted by a cashier’s check payable to one of Vaughn’s businesses. The cashier’s check was deposited the same day into an account controlled by Vaughn.
This case was investigated by the Federal Bureau of Investigation’s Tyler Resident Agency and prosecuted by Assistant U.S. Attorney Frank Coan.
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East Texas Men Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – Two East Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
David Anthony Ebanez, 23, of Jacksonville, and Vincent James Galella, 28, Whitehouse, each pleaded guilty this week to possession with intent to distribute methamphetamine before U.S. Magistrate Judge K. Nicole Mitchell.
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.
On Sep. 24, 2018, Galella was found in possession of methamphetamine in a vehicle in Smith County, Texas.
Ebanez and Galella were both indicted by a federal grand jury on May 15, 2019, and charged with federal drug trafficking violations.
Under federal statutes, Ebanez faces a minimum of five years and up to 40 years in federal prison while Galella faces a maximum of 20 years. These guidelines prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case 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 is being prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Colleen Bloss.
Beaumont Man Indicted for Bank RobberyRead the Press Release
BEAUMONT, Texas – A 29-year-old Beaumont, Texas man has been indicted for robbing a bank in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Clarence Richard Griffin was indicted by a federal grand jury today and charged with bank robbery.
According to information presented in court, on Aug. 8, 2019, Griffin is alleged to have entered the Beaumont Community Credit Union on MLK Parkway in Beaumont, approached the teller with his hand inside a plastic bag simulating a weapon, and demanded money. Griffin then fled the credit union with approximately $2,100 in cash and was apprehended a short time later near the credit union with the stolen cash, plastic bag, and bank tracking device. Video surveillance supported witness accounts.
If convicted, Griffin faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Anderson.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Jefferson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 28-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.
Raymond Earl Robinson, III, pleaded guilty on April 15, 2019, to being a felon in possession of a firearm and possession of a firearm during a drug trafficking crime and was sentenced to 97 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Feb. 11, 2018, Robinson was a passenger in a vehicle stopped by local police in Beaumont. A search of the vehicle during the stop revealed a loaded automatic handgun, ammunition and various illegal drugs including marijuana, Xanax, Hydrocodone, and methamphetamine. On Mar. 24, 2018, Robinson was driving a vehicle in Beaumont when he was stopped by local police. During the traffic stop, it was discovered that Robinson had multiple warrants and was arrested. A semiautomatic handgun was discovered during a search of the vehicle. Further investigation revealed Robinson was a convicted felon having been previously found guilty of possession of a controlled substance in 2012, evading arrest in 2013, firearms smuggling in 2013, and unlawfully carrying a weapon in 2015. It is a violation of federal law for a convicted felon to own or possess a firearm or ammunition. Robinson was indicted on June 6, 2018 and charged with federal firearms violations.
“By removing a criminal involved in the illegal possession of firearms and narcotics, ATF and Beaumont Police Department have successfully shortened the reach of this individuals’ capability to do harm to our community,” said ATF Special Agent in Charge Fred Milanowski.
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. Attorney Randall L. Fluke.
Florida Woman Indicted for Trafficking Drugs Through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Shenita Denise Peterson was indicted today and charged with possession with intent to distribute cocaine.
According to information provided in court, on Aug. 23, 2019, Peterson was stopped 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.
If convicted, Peterson faces up to life in federal prison.
This case is being investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Dallas Man Sentenced for Child Exploitation ViolationsRead the Press Release
PLANO, Texas — A 34-year-old Dallas man has been sentenced to over 12 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joshua David LeCompte pleaded guilty on Feb. 21, 2019, to distribution of child pornography and was sentenced to 151 months in federal prison by U.S. District Judge Marcia A. Crone on Aug. 28, 2019.
According to information presented in court, in August 2016, a law enforcement officer received a tip that an individual had uploaded multiple files containing child pornography onto an Internet-based communications software application. An investigation led to LeCompte’s address in Dallas, Collin County, Texas. Law enforcement officers executed a search warrant at LeCompte’s residence and seized digital media items from the residence. A forensic analysis of the digital media revealed a substantial amount of child pornography files that LeComte had distributed to others. LeCompte was indicted by a federal grand jury on Dec. 12, 2018.
“This lengthy sentence should send a strong message to predators who think they are anonymously exploiting children by using the internet,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “Homeland Security Investigations special agents are highly skilled and trained to use the most advanced technology available to locate, identify and investigate these monsters who collect and distribute this kind of horrific material that traumatizes victims for the rest of their lives. We aggressively work with community members and our law enforcement partners to rescue these innocent children and prosecute their exploiters.”
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 HSI Dallas, the Dallas Police Department and the Collin County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.
Collin County Man Sentenced for Child Exploitation and Pornography ViolationsRead the Press Release
PLANO, Texas — A 22-year-old McKinney, Texas man has been sentenced to over 20 years in federal prison for child exploitation and child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today and Federal Bureau of Investigation Special Agent in Charge Matthew J. DeSarno.
Stephen Chase Clark pleaded guilty on March 4, 2019, to attempted coercion and enticement of minors and distribution of child pornography and was sentenced to 250 months in federal prison by U.S. District Judge Marcia A. Crone on Aug. 28, 2019.
According to information presented in court, in August 2018, an undercover law enforcement officer posing online as a 13-year-old child received messages on a social media application from Clark requesting personal information such as where the child attended school and asking about the child’s home life. Clark also asked for photos of the child in their underwear and in the nude and asked if he could meet the child for sex and discussed the sexual acts he wanted to engage in with the child. On Aug. 28, 2018, Clark arrived at a Collin County park with the intention of meeting the child and engaging in sexual activity. Clark was arrested at that time and indicted by a federal grand jury on Oct. 10, 2018.
“This was an especially warped defendant, and we have real concern that there could be other victims out there,” said United States Attorney Joseph D. Brown. “We encourage anyone who knows of other inappropriate contact that Clark could have had with children to call our victim’s assistance hotline.”
Those with information on this matter or those who may have had contact with Clark are urged to contact the U.S. Attorney’s Office at 1-800-804-3547.
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 Federal Bureau of Investigation’s Dallas Field Division and the Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.
Van Zandt County Man Guilty of Drug Trafficking in East TexasRead the Press Release
TYLER, Texas – A 55-year-old Canton, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew D. DeSarno.
Andrew Mark Harris pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on July 14, 2018, Harris was stopped for a traffic violation in Van Zandt County, Texas, and found to be in possession of 1.4 grams of methamphetamine. During the investigation, Harris admitted to being responsible for the distribution of between 50 and 200 grams of methamphetamine. Harris was indicted by a federal grand jury on May 22, 2019 and charged with federal drug trafficking violations.
Under federal statutes, Harris faces up to 20 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 and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
Illegal Alien Sentenced for Southeast Texas Drug Trafficking and Immigration ViolationsRead the Press Release
BEAUMONT, Texas –A 37-year-old Mexican national has been sentenced to federal prison for immigration and drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Juan Jose Castro-Ayala pleaded guilty on April 3, 2019, to possession with intent to distribute cocaine and unlawfully reentering the United States after having been deported. Castro-Ayala was sentenced today by U.S. District Judge Marcia Crone to 80 months in federal prison for the drug conviction and 24 months for the immigration violation. The sentences were ordered to run concurrently.
According to information presented in court, on Sep. 12, 2018, Castro-Ayala was stopped for a traffic violation in Jefferson County, Texas. A search of the vehicle revealed seven kilograms of cocaine inside two five-gallon paint buckets. Castro-Ayala was transported to jail where a records check revealed he had been previously deported from the United States on three separate occasions in 2014 and again in 2015. Further investigation revealed Castro-Ayala was convicted in 2003 of assault causing bodily injury in Hidalgo County, Texas.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Federal Inmate Sentenced for Beaumont Prison EscapeRead the Press Release
Clemente Valdez, Jr., 36, of Dallas, pleaded guilty on April 11, 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 Valdez was serving as a result of his 2012 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 Jan. 12, 2019, the Jefferson County Sheriff’s Office received a call from a citizen near the Bureau of Prison Camp Facility in west Jefferson County reporting they had witnessed inmates crossing a pasture and getting picked up by a vehicle on Hillebrandt Road. A Jefferson County Sheriff’s Deputy pulled over the vehicle shortly afterwards and found Valdez and another escapee inside. The inmates were transported back to the prison facility by law enforcement officers and indicted by a federal grand jury on Feb. 6, 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 that helps the escape.”
Valdez was sentenced to over 17 years in federal prison in 2012 for conspiracy to commit money laundering and conspiracy to distribute cocaine. Valdez was also convicted of marijuana trafficking in 2003 and served state prison time in North Carolina for that offense.
This case was investigated by the Federal Bureau of Prisons, Federal Bureau of Investigation and Jefferson County Sheriff’s Office and prosecuted by Executive Assistant U.S. Attorney Brit Featherston.
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