Eastern District of Texas

TYLER, Texas – A 46-year-old Whitehouse, Texas business owner has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Miles Brosang pleaded guilty to one criminal count of willful failure to collect or pay over tax before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22, 2020.

According to information presented in court, Brosang was the only director, sole shareholder, and general manager of Brosang’s Landscaping, Inc.  As such, he exercised control over every aspect of the business affairs of Brosang’s Landscaping, Inc., including approving all payments by the company and controlling all of the bank accounts of Brosang’s Landscaping, Inc.

During the third quarter of 2015, between approximately July 1, 2015, and September 30, 2015, Brosang’s Landscaping, Inc. withheld payroll taxes from its employees’ paychecks, including federal income taxes, and Medicare and social security taxes (often referred to as Federal Insurance Contribution Act or “FICA” taxes.)   Brosang knew that Brosang’s Landscaping, Inc. was required to make deposits of the payroll taxes to the Internal Revenue Service on a periodic basis.

In his capacity with Brosang’s Landscaping, Inc., Brosang was a “responsible person,” that is, he had the corporate responsibility to collect, truthfully account for, and pay over the payroll taxes for Brosang’s Landscaping, Inc.  During the third quarter of 2015, Brosang’s Landscaping, Inc. failed to make required payments to the Internal Revenue Service.  As a responsible person, Brosang knew that Brosang’s Landscaping, Inc. had a duty to pay, and the ability to make, the required payments, and he intentionally and willfully failed to make and pay over, or have Brosang’s Landscaping, Inc. make and pay over, the payments.  The amount of taxes that should have been, and was not, paid over for the third quarter of 2015 is $49,704.47.  The total of payroll taxes that should have been, and was not, paid over is $229,552. 

“Business owners need to understand the importance of their obligations in the withholding of payroll taxes,” said United States Attorney Joseph D. Brown.  “They hold those taxes in trust for the employee and the government and there are criminal penalties for those who divert those funds for other uses.”

            Under federal statutes, Brosang faces up to five years in federal prison at sentencing.  The maximum penalty prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office. This case was investigated by the IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.

BEAUMONT, Texas – A 41-year-old Newton, Texas, man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

Desmond Deray Gatson was found guilty on Jan. 22, 2020, of being a felon in possession of a firearm following a two-day jury trial before U.S. District Judge Marcia A. Crone.

According to information presented in court, on Feb. 8, 2019, Gatson was stopped by Beaumont police on Lucas Road in Beaumont for having an obstructed license plate.  During the traffic stop, officers could smell marijuana and Gatson indicated that he had just finished smoking marijuana.  Gatson also admitted to having served prison time for a drug conviction.  A search of the vehicle revealed a handgun under the seat and marijuana in the center console.  As a convicted felon, Gatson is prohibited from owning or possessing firearms or ammunition.  Gatson was indicted on Aug. 7, 2019 and charged with federal firearms violations.

Under the federal statute, Gatson faces up to 10 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

                This case was prosecuted as part of the Project Safe Neighborhoods Initiative.  Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Michael Anderson and Rachel Grove.

MARSHALL, Texas – A 31-year-old Hallsville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

         Mark McLean Farmer pleaded guilty on Aug. 16, 2019, to conspiracy to possess with intent to distribute and distribution of anabolic steroids and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 72 months in federal prison by U.S. District Judge Rodney Gilstrap on Jan. 16, 2020.

         According to information presented in court, beginning in August 2018, Farmer began conspiring with others to distribute at least 2,500 units of anabolic steroids.  Farmer served as a distributor of the steroids, receiving the drugs from foreign suppliers and then selling them to other dealers and users by way of the internet and through the United States mail.  Additionally, Farmer was found to be in possession of a pistol while he was in the process of delivering steroids.

         This case was investigated by the DEA Dallas Field Division, Tyler Resident Office and the U.S. Postal Inspection Service, Fort Worth Division.  This case was prosecuted by Assistant U.S. Attorneys Colleen Bloss and Jim Noble.

TYLER, Texas – A 38-year-old Carthage, Texas, man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.             

Timothy Earl Brown was found guilty today of being a felon in possession of a firearm  and ammunition  following a two-day jury trial before U.S. District Judge Jeremy D. Kernodle.

According to information presented in court, on Oct. 14, 2016, law enforcement officers were dispatched to a rural residence in Panola County for a prowler.  Brown was spotted by law enforcement carrying a rifle in a wooded area near the home.  Brown fled but was apprehended and also found in possession of a revolver.  Further investigation revealed Brown is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.  Brown was convicted in Panola County in 2000 for theft, in 2000 for escape and in 2011 for sexual assault.  He also has a prior conviction in the Eastern District of Texas for being a felon in possession of a firearm in 2004.   Brown was indicted for this incident on June 21, 2018 and charged with federal firearms violations.

Under the federal statute, Brown faces up to 10 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

            This case was prosecuted as part of the Project Safe Neighborhoods Initiative.  Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.

This case was investigated by the Panola County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Jim Noble and Alan Jackson.

TYLER, Texas – A 57-year-old Longview, Texas man has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Joseph Valdie Kimble pleaded guilty on Sep. 11, 2019, to health care fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.  Kimble was also ordered to pay restitution in the amount of $751,986.30 to Medicare and Medicaid and was ordered not to seek or retain employment in the health care fraud industry while serving three years of supervised release.

               According to information presented in court, Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers.  Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that either a beneficiary be bed-confined and it is documented that other methods of transportation are contraindicated; or the beneficiary's medical condition is such that transportation by ambulance is medically required.  Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary. 

               This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.

TYLER, Texas – A 31-year-old Houston woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.             

         Angelica Iczayana Jaimes-Loredo pleaded guilty on July 25, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 92 months in federal prison by U.S. District Judge Robert W. Schroeder III.

         According to information presented in court, between January 2018 and August 2018, Jaimes-Loredo and others were involved in a conspiracy to distribute methamphetamine in the Smith County, Texas area.  On Nov.14, 2018, Jaimes-Loredo; Suri Surai Rivera-Zuniga, 25, of Houston; Kevin Russ Ivy, 58, of Whitehouse, Texas; and Stephen Paul Barton, 55, of Tyler; were charged in a six-count indictment with conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine.  Jaimes-Loredo and Rivera-Zuniga admitted to distributing approximately three kilograms of methamphetamine on Aug. 18, 2018 in Whitehouse, Texas.  Ivy admitted to possessing with intent to distribute 88 grams of methamphetamine on Aug. 16, 2018 in Whitehouse, Texas.  Barton admitted to distributing 48.7 grams of methamphetamine on Aug. 16, 2018 and 35.7 grams of methamphetamine on July 20, 2018 in Whitehouse, Texas. 

         Rivera-Zuniga pleaded guilty on April 2, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 63 months in federal prison on Sep. 26, 2019.  Ivy pleaded guilty on May 13, 2019 to conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and was sentenced to 49 months in federal prison on Sep. 19, 2019.  Barton pleaded guilty on July 25, 2019 to possession with intent to distribute 5 grams or more of methamphetamine and was sentenced to 87 months in federal prison on Jan. 13, 2020.   

         This case was investigated by the Smith County Sheriff’s Office Narcotics Unit, the Texas Department of Public Safety Criminal Investigation Division and Highway Patrol, and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Allen Hurst.

TYLER, Texas – A 24-year-old Jacksonville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

                David Anthony Ebanez pleaded guilty on Sep. 4, 2019, to possession with intent to distribute methamphetamine and was sentenced to 84 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.    

                According to information presented in court, on April 10, 2019, Ebanez was found in possession of over 50 grams of a substance containing methamphetamine at the Cherokee County Courthouse in Rusk, Texas.  Ebanez was indicted by a federal grand jury on May 15, 2019, and charged with federal drug trafficking violations.

                This case was investigated by the DEA Dallas Field Division, Tyler Resident Office; the Cherokee County Sheriff’s Office, Jacksonville Police Department, and the Smith County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Colleen Bloss.

BEAUMONT, Texas – Four Houston men have been arrested on federal violations in the Eastern District of Texas announced. U.S. Attorney Joseph D. Brown

            David Nathan Taylor, 28; Prentis Leewood Delaney, 29; Coray Quan Brown, 32; and Jamarius Early Jones, 21; appeared in federal court in Beaumont today for initial appearances.  A criminal complaint charging the individuals with conspiracy to commit Hobbs Act robbery was signed by U.S. Magistrate Judge Zack Hawthorn on Jan. 14, 2020.  The Hobbs Act prohibits actual or attempted robbery that has an effect on interstate commerce by reason of their repetition and aggregate effect on the economy.  Investigators believe the crew is responsible for the October 2019 murder of an armored car guard in northwest Houston.

            According to the criminal complaint filed in the Eastern, District of Texas, the Federal Bureau of Investigation was investigating a series of armored car robberies, including the fatal robbery of a Loomis armored car courier that occurred on Oct. 24, 2019, in Houston.  During that robbery, three individuals brandished firearms and demanded money from the courier.  The courier was shot and killed.  A subsequent investigation led officers to these four subjects.  On Jan. 13, 2020, these individuals were observed together in Houston prior to traveling to Lake Charles in two separate vehicles.  Upon arriving in Lake Charles the subjects were observed by law enforcement following an armored vehicle that then traveled to Beaumont.  After arriving in Beaumont they were encountered by law enforcement and subsequently arrested.  Inside one of the vehicles officers discovered two AR-15 style rifles, a pistol, three masks, three sets of gloves, five cell phones, and two open bottles of rubbing alcohol.

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

            This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, the Texas Department of Public Safety, the Lake Charles Police Department and the Houston Police Department.  This case is being prosecuted by Assistant U.S. Attorney Russell E. James.

            A grand jury indictment or complaint is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

TEXARKANA, Texas –  Twelve individuals from three states have been charged in a federal indictment returned in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

            Nicolas Arroyo, 38, of Newport Coast, CA, pleaded guilty to conspiracy to defraud the United States on Jan. 14, 2020 before U.S. Magistrate Judge Caroline Craven.

            According to information presented in court, Arroyo was the CEO of a clinical laboratory when he conspired with others to pay and receive kickbacks in exchange for the referral of and arranging for health care business, specifically pharmacogenetic (PGx) tests.  Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that effect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California, Irvine, California, and San Diego, California.  More than $28 million in illegal kickback payments were exchanged by the defendants and others during the conspiracy.  On Dec. 11, 2019, a federal grand jury returned an indictment in which Philip Lamb, 44, of Scottsdale, Arizona; Nicolas Arroyo, 38, of Newport Coast, California; Vincent Marchetti, Jr., 55, of Coronado, California; William Flowers, 55, of Houston, Texas; Steven Donofrio, 45, of Temecula, California; James J. Walker, Jr. a/k/a Jimmy Walker, 46, of Frisco, Texas; Timothy Armstrong, 62, of Frisco, Texas; Virginia Blake Herrin, 54, of Frisco, Texas; Patrick Ridgeway, 50, of Jackson, Mississippi; Chismere Mallard, 39, of McAllen, Texas; Ray W. Ng, 61, of Dallas, Texas; and Ashley Kretzschmar, 34, of Aledo, Texas; were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute.  The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for items or services payable under federal health care programs.

            “We continue to see individuals in the healthcare industry creating illegal kickback arrangements, trying to cheat the system and turn healthcare decisions into financial decisions instead of what is best for the patient,” said United States Attorney Joseph D. Brown.  “This must stop, and doctors should be aware of the emphasis that is being put on stopping these practices.”

            Under federal statutes, Arroyo faces up to 5 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

            This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.

BEAUMONT, Texas - A San Antonio man and his wife have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Joel Vargas, 34, and Angelica Vargas, 39, were found guilty by a jury of federal violations following a five-day trial in March 2019 and were sentenced by U.S. District Judge Marcia A. Crone on Jan. 8, 2020.  Joel Vargas was convicted of two counts of interstate transportation of stolen property, conspiracy to transport stolen property in interstate commerce, and tampering with a witness.  He was sentenced to a total of 235 months in federal prison and ordered to pay restitution in the amount of $1,278,580.27.  Angelica Vargas was convicted of conspiracy to transport stolen property in interstate commerce and was sentenced to 60 months in federal prison and ordered to pay restitution in the amount of $1,071,344.38.

                According to information presented in court, on Dec. 17, 2017, over $38,000 in automotive tires were stolen during a burglary of the Goodyear Commercial Tire and Service Center on Cardinal Drive in Beaumont, Texas.  The investigation of the burglary led to Joel and Angelica Vargas, who were part of a multi-participant conspiracy.  The conspiracy targeted commercial tire businesses, resulting in the theft, trafficking and sale of commercial tires, specifically 18-wheeler truck tires.  Over a 15-year period, the conspiracy targeted over 100 tire stores or concrete/gravel yards, where they would force entry into the premises, disable surveillance equipment, steal tires, and then remove the tires in rental moving van type vehicles.   Over 50 rental moving vehicles were stolen to facilitate the crimes.  Joel Vargas was also found guilty of threatening a trial witness.  In all, seven individuals were convicted as part of this investigation. 

                “This was a major theft ring that cost businesses a very large amount of money,” said U.S. Attorney Joseph D. Brown.  “They operated all over the state of Texas.”

                “I’m very proud of the work our officer did to clear this case,” said Beaumont Police Chief Jimmy Singletary.  “It just goes to show how much law enforcement can accomplish when working across jurisdictional lines.”

                This case was investigated by the Beaumont Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Michael Anderson, Chris Rapp, and Christopher T. Tortorice.

BEAUMONT, Texas – Two federal inmates have pleaded guilty to escape from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today. 

            Julian Villa-Gomez Lemus, 34, a Mexican national, and Robert Lloyd Young, 45, of Bruceville, Texas, each pleaded guilty to escaping from federal custody before U.S. Magistrate Judge Zack Hawthorn on Jan. 9, 2020.  

            According to information presented in court, on Oct. 11, 2019, the Jefferson County Sheriff’s Office received an anonymous tip alerting them that inmates at the Bureau of Prison Camp Facility in west Jefferson County were planning to escape from the facility in order to retrieve contraband that had been left for them in a field off Hillebrandt Road.  Law enforcement officers surrounded the area in concealed locations and within several hours observed four inmates approaching on foot.  All four inmates were apprehended after attempting to flee and detained.  A search of the inmates revealed several cellular telephones and a bottle of whisky.  All four were indicted by a federal grand jury on Nov. 6, 2019.

            Lemus and Young were both serving federal prison sentences for drug trafficking convictions.  Lemus was convicted in the Middle District of Florida while Young was convicted in the Western District of Texas.

            “There have been ongoing issues with inmates walking away from this facility, which is a low security prison camp,” said U.S. Attorney Joseph D. Brown.  “Bureau of Prison officials have continued to improve the security features at the camp, and we will continue to prosecute inmates that escape, and any friends or family members that help them in any way.”

            Under federal statutes, Lemus and Young face up to an additional 5 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

            This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Executive Assistant U.S. Attorney Brit Featherston.

TYLER, Texas – A 44-year-old Canton, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                

Robby Dale Baker pleaded guilty on June 21, 2019, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 130 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Jan. 7, 2020.  Baker was also ordered to pay a money judgment in the amount of $8,000.

According to information presented in court, in March, April, and May of 2018, Baker sold methamphetamine on three separate occasions.  On May 22, 2018, law enforcement executed a search warrant at Baker’s Canton, Texas residence and recovered more methamphetamine, as well as several firearms and ammunition.  Baker admitted to being involved in a drug trafficking conspiracy to distribute methamphetamine to others.  Baker was indicted by a federal grand jury on July 27, 2018.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.

 

A former Supervisory Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced today in federal court for aiding and abetting the assault of an inmate.

Khristal Ford, 33, was sentenced by U.S. District Judge Marcia A. Crone to 24 months in federal prison followed by one year of supervised release. Ford previously pleaded guilty on May 29, 2019, to one count of aiding and abetting another correctional officer in the assault of an inmate housed at the facility.

According to plea documents and information presented in court, on June 8, 2017, while on duty at the FCC, Ford opened the door of a secured medical observation cell after A.A., an inmate, threw a tray at the locked door. Ford then told another correctional officer to “take care of it” and watched as the officer entered the cell and punched A.A. in the head three times without justification. Following this assault, Ford submitted written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.

“The Department of Justice will not tolerate this abuse of authority,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute those who will assault inmates under their supervision.”

“The work of prison guards is obviously very difficult, but they cannot resort to unprovoked violence,” said United States Attorney Joseph Brown for the Eastern District of Texas.   “They are expected to remain professional, and if they assault inmates, they will be arrested and prosecuted.”

“The public has a right to expect that Correctional Officers will keep federal prisons safe and secure and will perform the duties of their jobs with integrity.  Ford did the exact opposite when she aided in the assault and civil rights violations of an inmate.  She will rightly serve time for this offense,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.

This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.  

WASHINGTON – A former Supervisory Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced today in federal court for aiding and abetting the assault of an inmate.

       Khristal Ford, 33, was sentenced by U.S. District Judge Marcia A. Crone to 24 months in federal prison followed by one year of supervised release. Ford previously pleaded guilty on May 29, 2019, to one count of aiding and abetting another correctional officer in the assault of an inmate housed at the facility.

       According to plea documents and information presented in court, on June 8, 2017, while on duty at the FCC, Ford opened the door of a secured medical observation cell after A.A., an inmate, threw a tray at the locked door. Ford then told another correctional officer to “take care of it” and watched as the officer entered the cell and punched A.A. in the head three times without justification. Following this assault, Ford submitted written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.

       “The Department of Justice will not tolerate this abuse of authority,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute those who will assault inmates under their supervision.”

       “The work of prison guards is obviously very difficult, but they cannot resort to unprovoked violence,” said United States Attorney Joseph Brown for the Eastern District of Texas. “They are expected to remain professional, and if they assault inmates, they will be arrested and prosecuted.”

       “The public has a right to expect that Correctional Officers will keep federal prisons safe and secure and will perform the duties of their jobs with integrity. Ford did the exact opposite when she aided in the assault and civil rights violations of an inmate. She will rightly serve time for this offense,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.

       This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.

       The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

TYLER, Texas –  A 51-year-old Edgewood, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Timothy Dwayne Henson pleaded guilty to conspiracy to possess with intent to distribute methamphetamine before U.S. Magistrate Judge John D. Love on Jan. 7, 2020.              

               According to information presented in court, on two separate occasions in July 2018, Henson sold methamphetamine during controlled purchases in Van Zandt County.  On Sep. 9, 2018, law enforcement executed a search warrant at his residence in Van Zandt County and recovered methamphetamine.  Henson admitted to being involved in a conspiracy to obtain and distribute methamphetamine, and that he was directly responsible for the distribution of at least 500 grams of methamphetamine.  Henson was indicted by a federal grand jury on Aug. 8, 2018 and charged with federal drug trafficking crimes.

               Under federal statutes, Henson faces up to 40 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

               This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.

PLANO, Texas – Three North Texas residents have been indicted for conspiring to pay for patient referrals in violation of the Anti-Kickback Statute in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown. The indictment was unsealed today.

            The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally-funded programs, including Medicare, TRICARE, and Medicaid.  The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

            Sultan Satar Sattar, 64, and his wife Bibi Zabeda Sattar, 61, of Fort Worth, Texas, and Jeffrey Paul Cornwell, a/k/a "Boomer," 43, of McKinney, Texas, were indicted by a federal grand jury on December 11, 2019.  The indictment alleges that the defendants conspired to make an unlawful kickback arrangement involving payments for the referral of federal health care beneficiaries, in violation of 18 U.S.C. § 371.  According to the indictment, the illegal arrangement concerned the referral of testing services to clinical laboratories located in Richmond, Virginia, and Frisco, Texas, in exchange for per-test compensation.

            The Sattars were arraigned on December 30, 2019, before U.S. Magistrate Judge Kimberly Priest Johnson.  Cornwell's initial appearance took place on January 7, 2020, also before Judge Johnson.

            If convicted, the Sattars and Cornwell each face up to 5 years in federal prison.

            This case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Defense Criminal Investigative Service, and the State of Texas Medicaid Fraud Control Unit.  The case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld.

It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

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            William Craig Whisman came to a parking lot in Plano with a stuffed toy, intending to have sex with a young girl whose father had offered her up in a website chatroom.   Earlier, Whisman had sent two videos to the father in which Whisman simulated the acts he wanted to commit on the young girl.    Now, he was there to make his fantasy a reality.   

            Fortunately, the girl was not real.   But after law enforcement discovered that Whisman had sent pictures of other children – this time real children he had secretly photographed while standing in line at a local Home Depot – officers ended their ruse and swept in to arrest him

            When Whisman saw agents closing in, he turned off his phone.   Security measures on the phone prevented officers from accessing its contents.   Search warrants and subpoenaes were powerless to provide access because advanced encryption techniques protected Whisman’s secrets.    Had real children been abused?   Could abused children be hidden somewhere?   Were there other child exploiters communicating with him that law enforcement could pursue and prevent from offending?    Time was ticking, and officers needed to know the answers quickly to potentially prevent a tragedy.

            The answers would not come for months.

            Technology companies continue to advance security measures and implement “warrant-proof” encryption of data on communication devices.    To be sure, encryption protects important privacy interests of law-abiding citizens.   But encryption also provides a safe space for criminals to operate, shielding evidence of illegal activities from authorities.    Terrorists, child predators, and other criminals should not be able to hide what they do from law enforcement, especially when investigators have been authorized by a court to search for evidence.

            Common sense solutions are needed to protect the privacy of citizens while ensuring that criminals cannot hide their activities.    The Fourth Amendment protects us all from unwarranted government intrusion, but the Constitution has always struck a balance between privacy and security by allowing law enforcement, upon a showing of probable cause, to access an individual’s zone of privacy.   We ask for no more access to digital devices than what the Constitution already provides.

            Today, more and more evidence of crime is digital.    Evidence stored in a phone or on a laptop should not be protected more than evidence in a person’s home, which has always been considered the most private of places.   By allowing dangerous criminals to cloak their communication behind an impenetrable digital shield, the deployment of warrant-proof technologies is already imposing a great cost on society.

            Over a year after William Whisman was arrested, law enforcement finally was able to access his phone when new forensic techniques were implemented.   On the phone were thousands of images of child pornography.   Even more troubling, investigators found chat logs of conversations Whisman had been having with other men and women about the sexual abuse of children.   As prosecutors secured a prison sentence of more than 24 years for Whisman, officers began the job they should have been able to do months before – investigating those individuals, rescuing children, and trying to prevent the evil that happens too often.

            The United States must enact legislation to ensure lawful access for law enforcement, consistent with the traditional protections of privacy, to digital evidence of crime.

 

                                    By Joseph D. Brown
                                    United States Attorney, Eastern District of Texas

SHERMAN, Texas - U.S. Attorney Joseph Brown announced today that the Eastern District of Texas collected $42,720,785.69 in criminal and civil actions in Fiscal Year 2019.  Of this amount, $41,528,315.03 was collected in criminal actions and $1,192,470.66 was collected in civil actions.   

Additionally, the Eastern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,829,172.54 in cases pursued jointly by these offices.  Of this amount, $19,813.58 was collected in criminal actions and $3,809,358.96 was collected in civil actions.         

“One of the most important missions of the U.S. Attorney’s Offices is enforcing and collecting monetary judgments for violations of federal law,” said U.S. Attorney Joe Brown.  “Aggressive enforcement of these judgments achieves the multiple purposes of compensating crime victims, punishing those who break the law, and deterring future violations.  The Eastern District prides itself in incorporating asset recovery into the earliest stages of all cases, which ultimately helps maximize the money we collect.”

               In August 2019, the Eastern District of Texas recovered nearly $3,200,000 to fully satisfy a restitution judgment entered in United States v. Manpreet Singh in August 2018.  Singh was prosecuted for defrauding several banks in the Eastern District of Texas.  The Eastern District’s asset recovery team was involved in the prosecution and ensured that Singh made a significant down payment to the restitution prior to sentencing.  Next, the asset recovery team sought specific payment terms that would require Singh to sell a hotel and other real property as part of his sentence.  The Court adopted the entirety of the government’s requested payment terms and incorporated them into the judgment.  Prosecutors successfully forced Singh to promptly effect the hotel sale, which led to the judgment being paid in full in less than a year.

               The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

               Additionally, the U.S. Attorney’s office in the Eastern District of Texas, working with partner agencies and divisions, collected $15,049,725 in asset forfeiture actions in FY 2019.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

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A Texas man has pleaded guilty today to child exploitation violations in the Eastern District of Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph D. Brown of the Eastern District of Texas.

Alexander Nathan Barter, 23, of Joaquin, Texas, pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin of the Eastern District of Texas.

According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a TOR site stating, “I’d like to try necrophilia and cannibalism, and see how it feels to take a life.  If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.”  An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter.  Between Oct. 9, 2018, and Oct.19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing and eating the 13-year old child.  Barter provided the undercover officer with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel and how to conceal evidence of their crime.  On Oct. 19, 2018, Barter arrived at the designated meet site with a knife, trash bag, cellular phone and a tablet.

As part of his plea, Barter also admitted to using a social media communications application, the Internet and digital devices he owned to communicate with other individuals about child pornography.  On Oct. 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual.  The individual accepted the offer and Barter sent the files, along with descriptions of their contents.

Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count.  A sentencing date has not yet been set.

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

This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Lufkin, Beaumont, and Houston, Texas; HSI Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office Florida; Nacogdoches Police Department; Texas Department of Public Safety; U.S. Customs and Border Protection Air Units; and Shelby County Sheriff’s Office. Senior Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marisa Miller of the Eastern District of Texas prosecuted the case.

TEXARKANA, Texas – A 66-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

            Troy Lee Ware pleaded guilty on July 23, 2019, to bank robbery and was sentenced to 180 months in federal prison today by U.S. District Judge Robert W. Schroeder III.

            According to information presented in court, on April 26, 2019, Ware entered the Wells Fargo Bank on New Boston Road in Texarkana, Texas, brandishing a firearm and demanding money from the bank teller’s drawer.  The teller complied and gave the cash to Ware.  Ware took the cash and backed out of the bank while pointing the firearm at bank employees and demanding they remain on the floor.  Ware fled the bank on a bicycle.  Ware was indicted by a federal grand jury on May 15, 2019, and charged with bank robbery.

            “This defendant was a danger throughout northeast Texas and in Arkansas,” said U.S. Attorney Joseph D. Brown.  “He earned every one of those years he will serve.”

            Ware also admitted to committing the following, additional armed robberies:

• Paradise Quick Stop Exxon located at 3400 New Boston Road in Texarkana, Texas on April 18, 2017;
• Papa John’s Pizza located at 403 State Line Ave. in Texarkana, Texas on April 22, 2017;
• The Tobacco Store located at 2806 New Boston Road, Texarkana, Texas on Dec. 18, 2017;
• Shamrock Gas Station and Convenience Store located at 824 Richmond Road, Texarkana on Dec. 23, 2017;
• Potato Patch restaurant located at 3815 N. State Line Ave., Texarkana on Dec. 23, 2017;
• Bancorp South, located at 2200 N. State Line Ave., in Texarkana, Arkansas on Feb. 16, 2017;
• Fast & Low #2 Convenience Store located at 402 East Street, Texarkana, Arkansas on April 24, 2017;
• Exxon gas station and convenience store located at 2324 N. Stateline Ave. in Texarkana, Arkansas on June 9, 2017;
• Family Dollar store located at 1213 E. 9th Street in Texarkana, Arkansas on Oct. 24, 2017;
• Texas Liquor store located at 914 N. Stateline Ave. in Texarkana, Arkansas on Oct. 27, 2017;
• Stop & Shop convenience store located at 402 East Street in Texarkana, Arkansas on or about Dec. 9, 2017; and
• Bottle Shop liquor store located at 1224 N. Stateline Ave. in Texarkana, Arkansas on Dec. 12, 2017.

 
            As part of his plea agreement, Ware agreed to pay restitution of $24,702.00, which is the total amount he received from all robberies.  He also agreed to forfeit the firearm and ammunition.
 
            This case was investigated by the Texarkana, Texas and Texarkana, Arkansas Police Departments, the Miller County (Arkansas) Sheriff’s Office, the Federal Bureau of Investigation’s Texarkana, Texas and Texarkana, Arkansas Field Offices.  This case was prosecuted by Assistant U.S. Attorney Jim Noble.       

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BEAUMONT, Texas – A 23-year-old Joaquin, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Alexander Nathan Barter pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin on December 20, 2019.

                According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a dark web site stating “I’d like to try necrophilia and cannibalism, and see how it feels to take a life.  If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.”  An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter.  Between October 9, 2018 and October 19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing, and eating the 13-year old child.  Barter provided the undercover with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel, and how to conceal evidence of their crime.  On October 19, 2018, Barter arrived at the designated meet site in Joaquin, Texas with a knife, trash bag, cellular phone, and a tablet.

                “These are the cases that remind us that evil is real,” said U.S. Attorney Joseph D. Brown.   “It also reminds us that we are fortunate that we have law enforcement working to stop these things.”

                As part of his plea, Barter also admitted to using a social media communications application, the internet, and digital devices he owned to communicate with other individuals about child pornography.  On October 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual.  The individual accepted the offer and Barter sent the files, along with descriptions of their contents.               

                Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count.  Each party has reserved the right to argue that the sentences should run concurrent or consecutive.  Accordingly, Barter will face a minimum term of 20 years in federal prison and a maximum sentence of 40 years when he is sentenced.  A sentencing date has not yet been set and the actual sentence will be determined by a federal judge at sentencing.

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

This case is being investigated by Homeland Security Investigations in Lufkin, Beaumont, and Houston, Texas; Homeland Security Investigations Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office (Florida); Nacogdoches Police Department; Texas Department of Public Safety; Customs and Border Protection Air Units; and Shelby County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Senior Trial Attorney Jennifer Toritto Leonardo.

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PLANO, Texas – A 44-year-old Guatemalan Mayor has been indicted for drug trafficking activities and extradited to the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Erik Salvador Suniga Rodriguez, also known as “El Pocho” surrendered to U.S. Drug Enforcement agents in Guatemala this morning and boarded an airplane for extradition to McKinney, Texas.  Suniga Rodriguez was indicted by a federal grand jury on June 13, 2018 in the Eastern District of Texas and charged with drug and money laundering violations.  Suniga Rodriguez was the mayor of Ayutla, a town on the border with Mexico.

                Also today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified Suniga Rodriguez, and the Suniga Rodriguez drug trafficking organization (Suniga Rodriguez DTO or “Los Pochos DTO”) as significant foreign narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). 

                As a result of today’s actions, all assets in which Suniga Rodriguez has an interest in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.  OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.

                This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 

                The Criminal Division’s Office of International Affairs of the Justice Department provided significant assistance in securing the defendant’s extradition from Guatemala.  This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.

                It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

BEAUMONT, Texas – A 45-year-old international terrorist imprisoned in the U.S. Bureau of Prisons has been convicted of additional offenses in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI, following a seven-day trial before U.S. District Judge Marcia A. Crone.

“This terrorist has shown that he was committed to his ideology and to violence,” said Eastern District of Texas U.S. Attorney Joseph D. Brown.  “It was important to pursue these charges not only to keep him in prison, but to deter others who would recruit in jail cells.”

“This defendant is a repeat offender.  While in prison on terrorism charges, Ahmed continued to recruit fellow inmates to join ISIS to train them and to help them plan future attacks,” said Assistant Attorney General for National Security John C. Demers.  “As long as terrorists keep offending, the Department will continue to bring them to justice.  We have done so in this case.”

“The threat posed by individuals like Ahmed is real and one we cannot afford to underestimate or ignore,” said Special Agent in Charge Perrye Turner of the FBI Houston Division.  “The threat from ISIS continues to evolve to include sustained radicalization online, loss of the physical caliphate, and inspiration for individuals to conduct attacks in their home countries using any means possible.  It is with any means possible and using all tools available to us that the FBI will continue to investigate criminal and national security threats to the United States, wherever they originate.”

According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization.  Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups.  A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas to serve his sentence. 

            Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont.  He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda.  From prison, he celebrated the Ariana Grande concert bombing and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.”  Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks. 

            Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.”  He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting.  Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as a revenge for his prosecution there.

Under the federal statute, Ahmed faces up to 25 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Federal Bureau of Investigation’s Beaumont Resident Agency, out of the Houston Division, and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.

A 45-year-old international terrorist imprisoned in the U.S. Bureau of Prisons has been convicted of additional offenses in the Eastern District of Texas.

Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI, following a seven-day trial before U.S. District Judge Marcia A. Crone.  The jury acquitted the defendant of two other charges and did not reach a verdict on another.

“This defendant is a repeat offender.  While in prison on terrorism charges, Ahmed continued to recruit fellow inmates to join ISIS to train them and to help them plan future attacks,” said Assistant Attorney General for National Security John C. Demers.  “As long as terrorists keep offending, the Department will continue to bring them to justice.  We have done so in this case.”

“This terrorist has shown that he was committed to his ideology and to violence,” said Eastern District of Texas U.S. Attorney Joseph D. Brown.  “It was important to pursue these charges not only to keep him in prison, but to deter others who would recruit in jail cells.”

 “The threat posed by individuals like Ahmed is real and one we cannot afford to underestimate or ignore,” said Special Agent in Charge Perrye Turner of the FBI Houston Division.  “The threat from ISIS continues to evolve to include sustained radicalization online, loss of the physical caliphate, and inspiration for individuals to conduct attacks in their home countries using any means possible.  It is with any means possible and using all tools available to us that the FBI will continue to investigate criminal and national security threats to the United States, wherever they originate.”

According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization.  Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups.  A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas, to serve his sentence. 

Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont.  He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda.  From prison, he celebrated a bombing at a concert in Manchester, England, and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.”  Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks. 

 Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.”  He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting.  Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as revenge for his prosecution there. 

Ahmed faces up to 25 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.

Tavoris Bottley, 34, a former Senior Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, pleaded guilty in court today to assaulting a federal inmate housed at the facility.

According to documents filed in connection with the guilty plea, on June 8, 2017, Bottley, while on duty as a federal correctional officer at FCC Beaumont, punched A.A, an inmate, in the face and head multiple times without justification. Bottley admitted that he and his supervisor, Lieutenant Khristal Ford, intentionally unlocked and entered the secured cell where A.A. was being held with the intention of assaulting the inmate for being disrespectful and throwing a food tray. Bottley admitted that he then punched A.A., even though the inmate did not pose any threat at the time.

Khristal Ford previously pleaded guilty on May 29, 2019, to aiding and abetting in the assault of A.A., and admitted to submitting written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.

“This conduct by a federal correctional officer erodes public trust,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute those who violate the civil rights of inmates.”

“Correctional officers have an obligation to be professional” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “Unprovoked violence not only violates the rights of the inmate, but hurts the reputations of law enforcement professionals who do things the right way.”

“When Bottley assaulted this inmate, he violated the inmate’s civil rights and he betrayed the oath of office he swore to uphold when he became a federal Corrections Officer,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.

Bottley faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.

BEAUMONT, Texas – Tavoris Bottley, 34, a former Senior Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, pleaded guilty in court today to assaulting a federal inmate housed at the facility, announced Eastern District of Texas U.S. Attorney Joseph D. Brown.

According to documents filed in connection with the guilty plea, on June 8, 2017, Bottley, while on duty as a federal correctional officer at FCC Beaumont, punched A.A, an inmate, in the face and head multiple times without justification. Bottley admitted that he and his supervisor, Lieutenant Khristal Ford, intentionally unlocked and entered the secured cell where A.A. was being held with the intention of assaulting the inmate for being disrespectful and throwing a food tray. Bottley admitted that he then punched A.A., even though the inmate did not pose any threat at the time.

Khristal Ford previously pleaded guilty on May 29, 2019, to aiding and abetting in the assault of A.A., and admitted to submitting written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.

“This conduct by a federal correctional officer erodes public trust,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously prosecute those who violate the civil rights of inmates.”

“Correctional officers have an obligation to be professional,” said United States Attorney Joseph D. Brown of the Eastern District of Texas.  “Unprovoked violence not only violates the rights of the inmate, but hurts the reputations of law enforcement professionals who do things the right way.”

“When Bottley assaulted this inmate, he violated the inmate’s civil rights and he betrayed the oath of office he swore to uphold when he became a federal Corrections Officer,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.

Bottley faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.

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WASHINGTON – Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.

The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns.  From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments.  To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals.  Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals.  As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE. 

“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”

“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas.  “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider.   Doctors and hospitals need to understand that these kinds of violations will be pursued.”

“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.

“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”

“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS).  “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”

“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office.  “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”

The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.

In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing.  Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act.  The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery.  The whistleblowers will receive approximately $4.36 million of the settlement.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs.  The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory.  The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS.  The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.).  The claims resolved by the settlement are allegations only and there has been no determination of liability.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).

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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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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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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.

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:

 

1. 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.
    
2. 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.
    
3. 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.
    
4. 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.
    
5. 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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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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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.

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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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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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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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.

 

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.

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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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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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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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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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.

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, 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.

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.

                                                                                                               

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.

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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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.

                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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