Eastern District of Texas
Press releases recorded for this federal judicial district.
Four Texas Men Indicted on Federal Hate Crime and Conspiracy Charges for Assaults Based on Victims’ Sexual OrientationRead the Press Release
A federal grand jury returned an eighteen-count superseding indictment against Anthony Shelton, 19; Nigel Garrett, 21; Chancler Encalade, 20; and Cameron Ajiduah, 18, charging them with conspiring to cause bodily injury to persons because of the sexual orientation of those persons, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the indictment, from Jan. 17 to Feb. 7, 2017, the defendants committed home invasions in Plano, Frisco, and Aubrey, Texas. For each of the four home invasions, the defendants used Grindr, a social media dating platform for gay men, to falsely identify as a gay man and arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants assaulted the victim, restrained the victim with tape, and made derogatory statements about the victim being gay. The defendants possessed a firearm during each home invasion, and they stole the victim’s property, including his motor vehicle.
For these crimes, the defendants have been charged with conspiracy, kidnapping, carjacking and possession of a firearm in furtherance of these crimes. The hate crime counts carry a maximum statutory penalty of life in prison and a $250,000 fine.
An indictment merely establishes probable cause, and the defendants are presumed innocent unless proven guilty.
The investigation is being conducted by the ATF, the Plano Police Department and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office of the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
U.S. Attorney’s Office and Lamar University Join Forces to Address RecidivismRead the Press Release
BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that as part of a federal reentry initiative, the United States Attorney’s Office is working with Lamar University in Beaumont in a new and innovative program designed to reduce recidivism by improving employment outcomes for ex-offenders in the Beaumont Division of the Eastern District of Texas.
The U.S. Attorney’s Office, in collaboration with Lamar University’s Criminal Justice program, launched Project GROW in February. Project GROW, an acronym for "Getting Reentrants On a Working Path,” brings third- and fourth-year criminal justice and social work students into the federal prison and halfway house to work with inmates. Led by Criminal Justice Instructor Karen Roebuck, a former U.S. Probation supervisor, Lamar University professors help students use evidence-based practices to provide counseling and job readiness training for successful reentry.
In the program, as part of their coursework, students work with assigned ex-offenders to develop assessment skills to address ex-offender risks and needs. The goal is to understand what each individual needs to successfully navigate reentry. Depending on the ex-offender’s risks and needs, students create individualized case plans to address all determined barriers. The course also develops offender accountability, self-awareness, and relationship skills for family reunification.
Because lawful employment is so important to successful reentry, the students network to provide ex-offenders with interview clothing, assist the development of resumes, and conduct mock job interviews. The students also assist in job searching and even address transportation barriers by providing donated bicycles. As a direct result of these efforts, in a relatively short time, the program significantly reduced the unemployment rate at the halfway house.
“Too many former prisoners re-offend, and we will hold them accountable if they do, but it doesn’t have to be that way. Many resources are available to help them succeed after prison, and pairing ex-offenders with those resources makes a difference,” said Acting U.S. Attorney Brit Featherston. “Keeping the community safe is our first priority, and addressing recidivism and helping ex-offenders re-enter that community is a part of our mission to prevent crime. This program is a good example of the community bringing resources forward to help us in that part of our mission.”
In coordination with federal, state, and local agencies and community service providers, the U.S. Attorney’s Office supports reentry initiatives as a means of reducing recidivism and keeping communities safe. Last year, the Eastern District received targeted funding from the Department of Justice to host a reentry summit and hire a specialist to promote reentry and other crime-prevention efforts. That reentry specialist, Dayana Borges, was instrumental in the development and execution of Project GROW, which is ongoing. The U.S Attorney’s Office is also working with a community-based reentry coalition to host an “employee awareness” luncheon later this spring. That luncheon will bring together prospective employers to share information about the practical benefits of hiring ex-offenders. The event will feature success stories from a panel of employers and the ex-offenders they have hired.
Fifteen Illegal Aliens Arrested on Federal Identity Theft ChargesRead the Press Release
BEAUMONT, Texas – Fifteen illegal aliens working under false identities have been arrested on charges out of the Eastern District of Texas, announced Acting United States Attorney Brit Featherston today.
On the evening of May 4, 2017, federal and state agents arrested 15 illegal aliens working under false identities at the LNG facility under construction in Cameron, Louisiana. Earlier in the week, a federal grand jury in Beaumont returned indictments charging the individuals with identity theft, using social security numbers of actual citizens, and making false claims of United States citizenship in order to obtain jobs at the facility over the past three years. The defendants, who are in the United States illegally, were all working under assumed names obtained through the possession of fraudulently obtained legitimate social security numbers and matching birth certificates, primarily issued in Puerto Rico. With such primary identifying information the defendants obtained State issued identification cards from Louisiana, Arkansas, Missouri, Texas, and other states. The use of such documents allowed the illegal aliens to pass the E-verify systems used by their employers to ascertain U.S. citizenship or alien lawful work permits. All 15 aliens were identified after being arrested under their assumed names. Some had previous encounters with immigration authorities and had returned to the United States, which can lead to further charges being added or increased sentences upon conviction of the current charges. The defendants had all been hired by subcontractors who used hiring offices in Port Arthur, Texas, to accept applications, interview, and E-verify employees who then report to the jobsite in Louisiana upon hiring. Those arrested and making initial appearances in federal court today are:
- Miguel Roblero-Morales, 36, of Guatemala;
- Mario Arnulfo Pantaleon-Castaneda, 30, of Guatemala;
- Luis Angel Pulido Cervantes, 29, of Mexico;
- Joel Pulido-Gutierrez, 27, of Mexico;
- Juan Manuel Zavala-Leon, 30, of Mexico;
- Rigoberto Romo Martinez, 41, of Mexico;
- Jose De Jesus Vega-Gutierrez, 31, of Mexico;
- Juan Alexis Juarez-Coto, 46, of Honduras;
- Felix Jiminez-Ruiz, 25, of Mexico;
- Jose Gutierrez-Valencia, 27, of Mexico;
- Bernardo Hernandez-Gallo, 37, of Mexico;
- Elizar Alvarez-Barajas, 43, of Mexico;
- Roberto Carlos Cruz Cruz, 28 of Mexico;
- Guily Tenorio-Sierra, 21, of Mexico; and
- Arturo Rebollar-Osorio, 34, of Mexico.
“Protecting critical infrastructure is a national security priority for law enforcement,” said Acting U.S. Attorney Brit Featherston. “To do so we must make sure that workers in our community, and especially those working in proximity to vital national interests like our oil and chemical industries, are legal and properly vetted as required by law. Further, we must remain vigilant to these concerns to protect the economy and the law abiding worker.”
If convicted, the defendants each face up to five years in federal prison. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations, ICE Enforcement and Removal Operations, Social Security Administration Office of Inspector General, Coast Guard Investigative Service, and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Smith County Husband and Wife Sentenced in Health Care Fraud ConspiracyRead the Press Release
TYLER, Texas – A Smith County couple has been sentenced for health care fraud violations in the Eastern District of Texas announced Acting U.S. Attorney Brit Featherston today.
Gerard Dengler, 61, and Suzanne Dengler 52, of Tyler, Texas, pleaded guilty on Jan. 10, 2017, to conspiring to commit health care fraudand were sentenced today by U.S. District Judge Thad Heartfield. Gerard Dengler was sentenced to 24 months in federal prison. Suzanne Dengler received a sentence of five years of probation. The Denglers were also ordered to pay restitution in the amount of $161,695, which represented the loss to Medicare.
According to information presented in court, the Denglers owned and operated Elite Lab Services, a clinical diagnostic laboratory based in Tyler. As a Medicare provider, the company would bill Medicare for laboratory services provided to nursing homes located throughout east Texas, including the mileage associated with providing those services. Beginning in April 2014, Gerard and Suzanne Dengler conspired to fraudulently increase route mileage that Elite Lab used to calculate the travel allowances billed to Medicare. From April through October 2014, the company then sought reimbursement from Medicare for mileage that included the falsely inflated amounts.
Under federal statutes, the Denglers each face up to 10 years in federal prison at sentencing and have already agreed to pay restitution in excess of $160,000, which represents the loss to Medicare. 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 criminal investigation arose from a civil qui tam action filed by former Elite Lab employee Karen Malcolm. In her complaint, Malcolm alleged, among other things, that Elite Lab and the Denglers submitted false claims to Medicare from approximately 2010 through 2014. The United States intervened in the action for purposes of settlement. The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the lawsuit. As a result of the settlement, Elite Lab will be excluded from participating in Medicare for eight years; Gerard Dengler will be excluded for 10 years; and Suzanne Dengler will be excluded for eight years. The settlement also resolved a separate civil lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their fraudulent conduct.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Texas Office of the Attorney General – Medicaid Fraud Control Unit, and the United States Attorney’s Office for the Eastern District of Texas. The criminal case was prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld and Special Assistant U.S. Attorney Ken McGurk. The civil settlement was negotiated by Assistant U.S. Attorney Josh Russ. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Bob Wells.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case was prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Jasper County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 34-year-old Kirbyville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Stefone Dwayne Palomo pleaded guilty on Oct. 17, 2016, to conspiracy to distribute and possess methamphetamine and was sentenced to 180 months in federal prison today by U.S. District Judge Marcia A. Crone. The leader of the conspiracy, McGee Lamar Falcon, previously pleaded guilty and was sentenced to 204 months in federal prison by Judge Crone on March 31, 2017. Palomo is the last remaining defendant in the case to be sentenced.
According to information presented in court, beginning in 2009, Falcon and his co-conspirators operated a drug trafficking organization which acquired large multi-kilogram quantities of methamphetamine and crack cocaine from suppliers in Mexico for distribution to customers in the United States, including the Eastern District of Texas and Western District of Louisiana. Palomo and nine others were indicted by a federal grand jury on Sep. 2, 2015.
Law enforcement agencies became aware of the organization’s activities in September 2013. From that time forward, the investigation led to controlled purchases from members of the organization and the seizure of money, drugs, and firearms. Falcon and his distributors typically arranged customer meetings in rural locations around Kirbyville and Bon Weir, Texas.
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.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, Beaumont Police Department, Jefferson County Sheriff’s Office, Jasper County Sheriff’s Office, Jasper Police Department, and Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys John B. Ross, Michelle Englade and John Craft.
Concert Promoter Arrested on Federal Fraud Charges that Allege He Solicited Investment Money that Was Never Used for Music EventsRead the Press Release
LOS ANGELES – A concert promoter with operations in Dallas, Texas and West Hollywood has been arrested on federal wire fraud charges in a case that alleges he defrauded investors in connection with concerts and other events.
Gabriel Martin Reed, 46, a former Malibu resident who recently relocated to Las Vegas, Nevada, was arrested by special agents with the Federal Bureau of Investigation on Saturday afternoon in McKinney, Texas.
Reed, who does business under the name Gabe Reed Productions, was arrested pursuant to a criminal complaint filed on April 19 in United States District Court in Los Angeles. The case against Reed was announced today after the complaint was unsealed during Reed’s first court appearance. The complaint charges Reed with wire fraud and aggravated identity theft.
Over an 8½-year period, Reed represented himself as a promoter and organizer of hard rock music events, as well as wrestling matches for World Wrestling Entertainment. According to the affidavit in support of the criminal complaint, Reed solicited investors in concert events by touting longstanding relationships with well-known musicians, showing props from alleged previous tours, and, in some instances, creating fabricated financial records related to music events.
The complaint alleges that Reed falsely told investors that musical artists had agreed to participate in events and that their funds would be used to provide up-front financing for the events. However, in many instances, the musical artists had not agreed to participate and, rather than using the funds for the events, Reed allegedly used the investors’ funds for personal expenses.
One Los Angeles investor agreed to put $100,000 into a concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the tour. An FBI review of bank records showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, according to the affidavit. Over the course of several months in 2015, the $100,000 “had been depleted,” due in part to ATM withdrawals, and the FBI was “unable to identify the payment of any expenses related to a concert or tour,” the affidavit states.
The complaint alleges that Reed solicited money from at least 15 victims who suffered losses of at least $1.4 million.
Reed made his initial court appearance this morning in United States District Court in Sherman, Texas. Reed has agreed to appear in federal court Los Angeles at a date to be determined. He remains in custody until a detention hearing set for Friday in Texas.
Reed is charged with wire fraud for allegedly bilking the Titans of Rock investor and aggravated identity theft in relation to another promoter whose name Reed allegedly used in connection with the wire fraud.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he convicted of the charges, Reed would face a statutory maximum sentence of 20 years in federal prison for the wire fraud count and a mandatory, consecutive two-year sentence for the aggravated identity theft charge. Investors who provided money to Reed and believe they were defrauded should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The case against Reed is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorney Poonam Kumar of the Major Frauds Section.
Port Arthur Man Convicted for Federal Violations Related to Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been found guilty by a jury for federal violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Sabino Orlando Martinez was found guilty by a jury of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime following a two-day trial before U.S. District Judge Marcia A. Crone today. After the opening statement by the prosecutor, the defendant pleaded guilty to conspiracy to possess with intent to distribute cocaine and methamphetamine. The trial proceeded on the remaining three charges of which the jury found him guilty after approximately one hour.
According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas. Clark was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting. Testimony at trial was that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016.
“This conviction of Sabine Orlando Martinez concludes the prosecution of two very dangerous men, who for more than ten years terrorized innocent Jefferson County victims by robbing, threatening, exploiting, and eventually killing one of their "lambs" they targeted for attack and theft,” said Acting U.S. Attorney Brit Featherston. “A tenacious team of dedicated investigators, Alton Baise, of the Jefferson County Sheriff’s Office; Paul Arvizo, of the Port Arthur Police Department; and Mike Hebert, of the Port Arthur Police Department, refused to let this cold case die. Joined by Assistant U.S. Attorney and prosecutor, Lesley Woods, this team worked night and day, turning over every stone to bring Allison's killer to justice. That happened today!”
Under federal statutes, Martinez faces up to 100 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 Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lesley Woods.
Four Men Charged with the Illegal Trafficking of Threatened Alligator Snapping TurtlesRead the Press Release
The Department of Justice’s Environment and Natural Resources Division, the United States Attorney’s Office for the Eastern District of Texas, and the U.S. Fish and Wildlife Service announced today that four men have been charged for their involvement in the illegal trafficking of alligator snapping turtles.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas state law which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so.
In one indictment, Travis Leger and Rickey Simon, both of Sulphur, Louisiana, and Jason Leckelt of Wilburton, Oklahoma, are charged with conspiracy and Lacey Act violations for illegally taking about 66 alligator snapping turtles in Texas and then transporting them back to their property in Sulphur, Louisiana, for sale in the Spring and Summer of 2016. In July 2016, federal agents seized 30 large alligator snapping turtles from ponds located at the defendants’ property in Sulphur, Louisiana, pursuant to a federal search warrant. The indictment also charges Leger with making a false statement to federal agents and charges Rickey Simon with destroying evidence during the execution of the federal warrant. In a separate indictment, Montaro Williams of Elton, Louisiana, is charged with a Lacey Act violation for illegally taking two alligator snapping turtles in Texas and then attempting to transport them to Louisiana for sale on Aug. 12, 2013.
Leger was arrested today in Lake Charles, Louisiana, and made his initial appearance in federal court there. Simon, Leckelt, and Williams were arrested earlier this month.
An indictment is an allegation based upon a finding of probable cause by a federal grand jury, and all defendants are presumed innocent until proven guilty. If convicted, the defendants face up to five years in prison and a $250,000 fine for the conspiracy, Lacey Act, and false statement charges and up to 20 years in prison and a $250,000 fine for the destruction of evidence charge.
Assistant U.S. Attorney Joseph E. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
Starr County, Texas Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 45-year-old Roma, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Amador Saldana pleaded guilty on Oct. 5, 2016, to conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Saldana, also known as Mustard, because he packaged kilograms of cocaine with mustard because he believed it would defeat drug dog detection, was a large-scale distributor of cocaine based in Roma, Texas. Saldana had status with members of the Gulf Cartel and was able to import hundreds of kilograms from Mexico into Texas for distribution to customers across the Eastern District of Texas and to the Eastern part of the United States.
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.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John A. Craft.
Dallas Man Guilty in Connection with Denton County Highway Expansion FraudRead the Press Release
SHERMAN, Texas – A 34-year-old Dallas man has pleaded guilty to fraud in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Wade Wylie Blackburn, 33, pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Christine A. Nowak.
According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.
TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.
As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.
“Government programs are designed to benefit the citizens, in this case, to build critical infrastructure to be used by all,” said Acting U.S Attorney Featherston. “Taxpayers must trust that state and federal funds for building roads and highways are being used and expended in a judicious manner, and not lost to greed and manipulation. Blackburn and others used a complex scheme to defraud the taxpayers, and in doing so, corrupted the process designed to build roads for our citizens.”
Under federal statutes, Blackburn faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Shanna Peek Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
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 DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeremy Chad Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
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 DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Oregon Woman Sentenced in East Texas Child Exploitation ConspiracyRead the Press Release
TYLER, Texas — A 35-year-old Medford, Oregon woman has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Crystal Beam pleaded guilty on Nov. 14, 2016, to conspiracy to sexually exploit children and was sentenced to 216 months in federal prison today by U.S. District Judge Ron Clark. Beam will be required to register as a sex offender upon her release from federal prison.
According to information presented in court, between November 2014 and January 2015, Beam conspired and agreed with Brian Casper, 27, of Tyler, Texas to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Casper also conspired and agreed with Taylor Keeth, 22, of Indianola, Iowa, and Lacy Brooks, 31, of Searcy, Arkansas, to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Casper pleaded guilty on Nov. 16, 2016, to conspiracy to sexually exploit children. Keeth pleaded guilty on Dec. 7, 2016, to conspiracy to sexually exploit children. Brooks pleaded guilty on Jan. 10, 2017 in the Eastern District of Arkansas, to production of child pornography and distribution of child pornography.
“He who harms the child, shall have a millstone tied upon his neck and he shall be cast into the deepest part of the sea,” said Acting U.S. Attorney Brit Featherston. “Although we cannot cast anyone into the sea, it is, and shall remain the highest priority that those who harm a child shall be swiftly brought to justice and punishment shall be sought.”
On Apr. 10, 2017, Casper and Keeth were sentenced by Judge Clark. Casper was sentenced to 336 months in federal prison, and Keeth was sentenced to 282 months in federal prison. Brooks is awaiting sentencing.
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.
“These cases are heart wrenching for all involved, the child advocates, the families, the investigators, the prosecutors and the courts,” said Acting U.S. Attorney Featherston. “I applaud their resilience and fortitude in bringing these predators to justice.”
This case was investigated by the Federal Bureau of Investigation, Tyler Police Department, Port of Galveston Police Department, White County (Arkansas) Sheriff's Office, Indianola (Iowa) Police Department, and the Medford (Oregon) Police Department. This case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorneys Erin O'Leary and Kristin Bryant of the Eastern District of Arkansas.
Orange County, Texas Man Sentenced for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 37-year-old Orange, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Kenneth Martin, Jr., was found guilty by a jury on July 13, 2016 of conspiracy to possess with intent to distribute methamphetamine and was sentenced to 115 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, from September 2015 to February 2016, Martin conspired with others to distribute methamphetamine in and around the Orange County, Texas area. Evidence presented at trial indicated that Kenneth Martin, Jr., who was traveling with his cousin and co-defendant, Brandon Martin, were stopped by Orange County Sheriff's deputies for traffic violations. Brandon Martin, who was the driver of the vehicle, gave officers verbal consent to search the vehicle and officers located a magnetic key box under the left front wheel well. This is the same location from where officers observed Brandon Martin a few days earlier, retrieve suspected methamphetamine. Kenneth Martin, Jr. was searched and found to have a small amount of methamphetamine in his pocket and both Brandon and Kenneth Martin were arrested and taken to the Orange County Jail. Once at the jail, Kenneth Martin repeatedly advised officers that the substance found in the magnetic box was all his and Brandon had nothing to do with it.
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.
This case was investigated by the Drug Enforcement Administration, the Orange County Sheriff’s Office and the Orange Police Department and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Southeast Texas Men Sentenced for Drug TraffickingRead the Press Release
BEAUMONT, Texas – Two Southeast Texas men have been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Richard William Jones, 40, of Diboll, Texas pleaded guilty on Oct. 28, 2016, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 125 months in federal prison today by U.S. District Judge Thad Heartfield.
Ronny Joe Bartz, 51, of Humble, Texas pleaded guilty on Oct. 28, 2016, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by Judge Heartfield.
According to information presented in court, on Jan. 7, 2013, San Jacinto County Sherriff’s deputies performed a traffic stop on a vehicle traveling north on Highway 59. As they attempted to pull over the vehicle, the officers observed a black bag fly out of the passenger side window and land in the grass. The driver of the vehicle continued without stopping for approximately 100 yards before stopping. The driver was identified as Richard William Jones and the passenger was identified as Ronny Joe Bartz. Officers then went back and retrieved the black bag that was thrown out of the passenger side where Bartz was sitting. The deputies opened the bag and inside located a small silver handgun, a set of digital scales, clear plastic baggies containing methamphetamine, a clear glass pipe with residue in it, and a quantity of empty clear plastic baggies.
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.
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, tobacco, Firearms and Explosives, and the San Jacinto County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Michelle Englade.
Upshur County Man Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 41-year-old Gilmer, Texas man has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeremy Chad Tidwell pleaded guilty on Nov. 17, 2016, to conspiracy to commit offenses against the United States and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, 6 automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, his wife, Shanna Peek Tidwell, 38, of Gilmer, and Tidwell's brother, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in U.S. currency, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
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 DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Houston Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas - A 41-year-old Houston man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jesus Najar Silva pleaded guilty on Nov. 29, 2016, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 90 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, Jesus Najar Silva was identified as a supplier during an investigation into the distribution of multi-kilograms of methamphetamine in Houston and the Eastern District of Texas. Silva made four deliveries of more than one pound of methamphetamine to an undercover officer in Houston and Cleveland, Texas. Based on Title III wiretaps and other investigative tools, agents learned that at least three other individuals were involved in this organization. The recorded calls revealed that Silva negotiated the sale of a total of 6.1 kilograms of methamphetamine and four kilograms of cocaine during this conspiracy. These calls also led to the identification, arrest and prosecution of Silva's source of supply, and two other members of this conspiracy.
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.
This case was investigated by the Drug Enforcement Administration, Texas Department of Public Safety and the Houston Police Department and was prosecuted by Assistant U.S. Attorney Michelle Englade.
Dallas County Men Sentenced for Jacksonville Bank BurglaryRead the Press Release
TYLER, Texas – Two Dallas men have been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Curtis Eugene Thomas, 32, pleaded guilty on Sep. 29, 2016 to bank burglary and was sentenced to 42 months in federal prison today by U.S. District Judge Ron Clark.
Dominic Dennard Green, 31, pleaded guilty on Nov. 29, 2016 to bank burglary and was sentenced to 24 months in federal prison today by Judge Clark.
Both men were ordered to pay restitution in the amount of $58,376.75.
According to information presented in court, on Feb. 9, 2016, Thomas, Green and two others broke into the Jacksonville branch of Austin Bank early in the morning before the bank had opened for business. Three of the individuals were dropped off at the bank while the other waited nearby with a getaway car. After disabling the bank’s surveillance cameras and security system, the defendants stole more than $30,000 from the bank’s automated teller machine cash drawers. They then left the bank, returned to the getaway car and left the area. A local patrol unit attempted a traffic stop and a high speed chase ensued. During the chase, all four men bailed out of the vehicle and attempted to flee on foot. One individual was apprehended at the scene and the others were arrested later
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Frank Coan.
Two Sentenced for Conspiring to Sexually Exploit ChildrenRead the Press Release
TYLER, Texas — A man and woman have been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Brian Casper, 27, of Tyler, Texas pleaded guilty on Nov. 1, 2016, to conspiracy to sexually exploit children and was sentenced to 336 months in federal prison today by U.S. District Judge Ron Clark. Casper will be required to register as a sex offender upon his release from federal prison.
Taylor Keeth, 22, of Indianola, Iowa, pleaded guilty on Dec. 7, 2016, to conspiracy to sexually exploit children and was sentenced to 282 months in federal prison today by Judge Clark. She will also be required to register as a sex offender upon her release from federal prison.
According to information presented in court, between November 2014 and August 2015, Casper, knowingly conspired and agreed with Keeth, Crystal Beam, 35, of Medford, Oregon, and Lacy Brooks, 31, of Searcy, Arkansas, to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Crystal Beam pleaded guilty on Nov. 14, 2016, to conspiracy to sexually exploit children. Lacy Brooks, 31, of Searcy, Arkansas, pleaded guilty on Jan. 10, 2017 in the Eastern District of Arkansas, to production of child pornography and distribution of child pornography. Beam and Brooks are awaiting sentencing.
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, Tyler Police Department, Port of Galveston Police Department, White County (Arkansas) Sheriff's Office, Indianola (Iowa) Police Department, and the Medford (Oregon) Police Department. This case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorneys Erin O'Leary and Kristin Bryant of the Eastern District of Arkansas.
Federal Grand Jury Returns Multiple Indictments in Beaumont, TexasRead the Press Release
BEAUMONT, Texas –A federal grand jury returned multiple indictments this week charging individuals with separate federal crimes in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Martin Gutierrez, 22, of Harlingen, Texas, was indicted on charges of assaulting a federal officer. If convicted, he faces up to eight years in federal prison. According to the indictment, in November 2016, while an inmate with the Bureau of Prisons, Gutierrez assaulted correctional officers on at least two separate occasions. This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jonathan Derick Hickey, 35, of Orange, Texas, was indicted on charges of possession with intent to distribute methamphetamine and being a felon in possession of a firearm. If convicted, he faces from 10 years to life in federal prison. According to the indictment, on Jan. 17, 2017, Hickey was arrested following a traffic stop during which officers discovered a large amount of methamphetamine and cash in his vehicle. This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Terence Millsaps, 51, of New Orleans, LA, was indicted on charges of assaulting a federal officer. If convicted, he faces up to eight years in federal prison. According to the indictment, while an inmate with the Bureau of Prisons, Millsaps assaulted a correctional officer. This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Eva Renee Powell, 50, of Vidor, Texas, was indicted on charges of bank robbery. If convicted, she faces up to 20 years in federal prison. According to the indictment, on May 30, 2016, Powell robbed the Capital One Bank in Orange, Texas. This case is being investigated by the Federal Burea of Investigation and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Enrique David Vanegas, 52, of El Salvador, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to two years in federal prison to be followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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.
Jasper County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 35-year-old Kirbyville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
McGee Lamar Falcon pleaded guilty on Oct. 16, 2016, to conspiracy to distribute and possess methamphetamine and was sentenced to 204 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in 2009, Falcon and his co-conspirators operated a drug trafficking organization which acquired large multi-kilogram quantities of methamphetamine and crack cocaine from suppliers in Mexico for distribution to customers in the United States, including the Eastern District of Texas and Western District of Louisiana. Falcon and nine others were indicted by a federal grand jury on Sep. 2, 2015.
- enforcement agencies became aware of the organization’s activities in September 2013. From that time forward, the investigation led to controlled purchases from members of the organization and the seizure of money, drugs, and firearms. Falcon and his distributors typically arranged customer meetings in rural locations around Kirbyville and Bon Weir, Texas.
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.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, Beaumont Police Department, Jefferson County Sheriff’s Office, Jasper County Sheriff’s Office, Jasper Police Department, and Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys John B. Ross, Michelle Englade and John Craft.
Federal Inmate Sentenced for Possession of ShankRead the Press Release
BEAUMONT, Texas - A 25-year-old federal inmate has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Armando Rodriguez, Jr., pleaded guilty on Mar. 6, 2017, to possession of a prohibited object and was sentenced to 12 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Sep. 11, 2016, Rodriguez, a federal inmate housed in the Federal Correctional Complex in Beaumont, was found to be in possession of a homemade knife. The knife, commonly referred to as a shank, was discovered by a corrections officer during a routine pat-down. The shank was a piece of metal that had been sharpened to a point and was designed to be used as a weapon. Such objects are prohibited in the Bureau of Prisons. Rodriguez had previously been convicted of a federal drug violation and was scheduled to complete his sentence on April 3, 2017.
This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney John B. Ross.
Collin County Man Guilty of Federal Tax ViolationsRead the Press Release
PLANO, Texas – A 48-year-old McKinney, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Peter Mwedziwendira pleaded guilty on Mar. 28, 2017, to filing false personal tax returns before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to information presented in court, Mwedziwendira admitted to filing false personal tax returns for himself for tax years 2011, 2012 and 2013. In those false returns, Mwedziwendira falsely claimed that he was entitled to a Head of Household filing status and also falsely claimed the Earned Income Tax Credit and the Child Tax Credit in addition to false educational expenses. Mwedziwendira also admitted to preparing false tax returns for several of his clients for the 2011, 2012 and 2013 tax years. Mwedziwendira’s actions caused a tax loss to the Internal Revenue Service of $248,332. He was indicted in February 2017 by a federal grand jury.
Under federal statutes, Mwedziwendira faces up to three years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service Criminal Investigations is being prosecuted by Assistant U.S. Attorney J. Andrew Williams.
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Gregg County Mother and Son Indicted for Student Financial Aid FraudRead the Press Release
TYLER, Texas – A Longview, Texas mother and son have been indicted on federal charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherson today.
Gracie Brisco, 54, and her son, Robert Brisco, 29, were indicted by a federal grand jury on Mar. 22, 2017, and charged with multiple counts of student financial aid fraud.
According to the indictment, between June 2013 and September 2015, Gracie Brisco and Robert Brisco, aided and abetted by each other and others, knowingly and willfully misapplied, stole, and obtained by fraud, false statement, and forgery funds, assets, and property provided and insured under the Pell Grant Program and the William D. Ford Federal Direct Loan Programs.
If convicted, the defendants face up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Department of Education - Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, the Longview Police Department, and the Kilgore College Police Department and prosecuted by Assistant U.S. Attorney Nathanial Kummerfeld.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Houston Man Guilty in Beaumont IH-10 Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 41-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Fabian Paredes Alvarez, also known as Fabian Hernandez Alvarez, has pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on Dec. 28, 2015, law enforcement officers received information that a described vehicle would be traveling to Beaumont, Texas to deliver methamphetamine. Officers observed the described vehicle and performed a traffic stop on the vehicle in the Eastern District of Texas. The driver was identified as Cody Drawhorn and there were three other passengers in the vehicle. A drug-detecting K-9 was then deployed to perform an open-air search of the vehicle and while arresting one of the passengers on an active warrant, officers located a used glass smoking pipe with residue believed to be methamphetamine in her purse. Drawhorn provided the officers with consent to search his vehicle. The vehicle was then searched and officers located approximately 6.5 ounces of methamphetamine packaged in 20 individually prepackaged baggies. Additionally, officers located two firearms inside the vehicle. The first one, which was identified as a black, Hi-Point.45 caliber semi-automatic pistol, bearing serial number X4271020, loaded with nine live rounds in plain view between the driver and front passenger seat. The second firearm also located inside the vehicle was identified as a black, Davis Industries P .380 caliber automatic pistol, bearing serial number AP156106, loaded with five rounds. Additional ammunition, small amounts of methamphetamine and methamphetamine paraphernalia was also located inside the vehicle. Drawhorn later advised officers that he brought one of the passengers to Beaumont to drop off some methamphetamine there after they picked it up in northwest Houston from Drawhorn’s supplier he knew as “Rob Bos.” Drawhorn further admitted that he had been selling approximately one pound of methamphetamine per week that he obtained from “Rob Bos” to pay his bills. Phone analysis identified the person whom Drawhorn was receiving methamphetamine was Robert Borowski. The defendants were indicted by a federal grand jury on Sep. 7, 2016. Drawhorn pleaded guilty on Mar. 20, 2017. Robert Edward Borowski pleaded guilty on Mar. 15, 2017.
Under federal statutes, the defendants face 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 prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
Dallas Man Indicted in East Texas Investment Fraud SchemeRead the Press Release
SHERMAN, Texas – A 51-year-old Dallas man has been indicted for investment fraud in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Carlton Chadbourne Sayers, also known as Chad Sayers was indicted by a federal grand jury on Mar. 8, 2017, and charged with wire fraud, mail fraud, bank fraud, and aggravated identity. The indictment was unsealed on Mar. 15, 2017, and Sayers was arraigned before U.S. Magistrate Judge Christine Nowak and entered a plea of not guilty on Mar. 16, 2017.
According to the indictment and information presented in court, Sayers is alleged to have devised a scheme to defraud numerous victims by requesting that individuals loan to or invest money with him and Wellington and Franklin Financial, a business that he controlled, representing that this money would be used to purchase and/or renovate various residential real properties, to be secured by an interest in the property. The indictment also alleges that Sayers would promise a significant rate of return (such as ten percent) to the investors, and would frequently secure multiple investments based on a single piece of real property. As set out in the indictment, however, Sayers did not invest the funds as he had represented to investors and did not provide the secured interests in real property as he represented to the investors. On some occasions, as set forth in the indictment, when Wellington and Franklin Financial or Sayers did actually own the residential properties, the property had been purchased with a pre-existing loan from a seasoned investor, and was already acting as security to that investor. Sayers is also alleged to have defrauded dozens of victims with little experience in real estate investments, who were induced by Sayers’s false claims of a secure investment, purportedly backed by the assignment of an interest in the respective real estate asset and returns that were considerably higher than what they could achieve through many other investments. The scheme is alleged to have resulted in substantial losses of over $3 million affecting dozens of victims.
If convicted, Sayers faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Tom Gibson.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Prison Correctional Officer Guilty of BriberyRead the Press Release
BEAUMONT, Texas – A 34-year-old federal prison guard has pleaded guilty to bribery in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Anqunett Vernetta Lewis, of Houston, pleaded guilty to an Information charging her with bribery of a public official today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, from Feb. 22, 2015 to Nov. 9h, 2016, Lewis worked as a corrections officer for the Bureau of Prisons at the Federal Correctional Institution – Beaumont (FCI – Beaumont). During that time, she carried out the duties typical of a corrections officer – overseeing inmates, delivering food and other items to the inmates, and ensuring compliance with Bureau of Prisons and FCI – Beaumont rules, policies, and regulations.
Starting in October 2015 until January 2016, Lewis was paid by inmates to smuggle watches with cellular capabilities into FCI – Beaumont. Inmates in the Federal Bureau of Prisons are prohibited from possessing phones, watches, or other devices with cellular capabilities. Lewis admitted to smuggling in numerous watches and was paid by the inmates, or surrogates on their behalf, via wire transfer.
Under federal statutes, Lewis 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 Department of Justice – Office of the Inspector General and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Dallas County Twins Sentenced in Foreign Currency Trading SchemeRead the Press Release
PLANO, Texas – Dallas County twin brothers were sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Roger Harvey Wagner, of Grand Prairie, Texas and Rodney Lee Wagner, of Cedar Hill, Texas, each pleaded guilty on July 7, 2016, to conspiracy to commit wire fraud and were sentenced to 48 months in federal prison on Mar. 8, 2017, by U.S. District Judge Amos Mazzant. The 52-year-old twins were also ordered to pay restitution in the amount of $1,895,318.62.
According to information presented in court, the Wagner brothers perpetrated what amounted to a Ponzi scheme that caused investors to lose over $2.1 million. From February through November 2010, the brothers solicited money from investors to be invested in foreign currency trading. The brothers promised investors they would be repaid their principal plus a fixed rate of return that would be paid out to them over a series of weeks. Very little of the invested money was used for foreign currency trading, and prosecutors contended the money received from the latest investors was used to repay earlier investors to keep them lulled.
"These scams, unfortunately, are in our midst,” said Acting U.S. Attorney Featherston. “I encourage all potential investors to fully investigate any investment opportunity before handing over hard earned money. If a deal sounds too good to be true, as the saying goes...it usually is! These two individuals may not wear a mask over their face and may not carry a gun, but they are as much a thief as those that do, and they deserve the just punishment handed down by the court."
This case was investigated by the Texas State Securities Board and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Andy Williams and Tom Gibson.
Montgomery County Couple Guilty in Bankruptcy Fraud ConspiracyRead the Press Release
HOUSTON, Texas - A Conroe, Texas couple has pleaded guilty to bankruptcy fraud conspiracy in the Southern District of Texas, announced Eastern District of Texas Acting U.S. Attorney Brit Featherston.
Richard Kent Harris, 73, and Darlene Ann Riley, 59, pleaded guilty to conspiracy to commit bankruptcy fraud today before U.S. District Judge Kenneth M. Hoyt.
According to information presented in court, on June 22, 2012, Richard Harris entered into a contract with a home builder to construct a custom home for Harris and his wife, Darlene Riley. In August 2012, Harris and Riley became embroiled in a dispute with the home builder over the design of their house and a lawsuit ensued. The lawsuit went to arbitration, where Harris and Riley were ordered to pay the home builder $54,686.55 in damages. Approximately two weeks later Harris and Riley consulted with a bankruptcy attorney.
Harris and Riley filed for divorce on April 1, 2013, but continued to reside at the same address. In the months leading up to the divorce filing, Harris and Riley made substantial charges on their credit card, which was used for their mutual benefit. On February 26, 2013, Riley withdrew $67,000 from the joint checking account she shared with Harris and deposited it into her own sole checking account.
Following Riley’s filing for divorce, a property settlement was entered into between Riley and Harris. All material assets of the marriage were awarded to Riley, which included a 2004 Jaguar XK8, a 2007 beachcomber boat, a utility trailer, all of their furnishings, 43 paintings, jewelry, 2012 federal income tax refund, and half of his net federal pension. On June 12, 2013, Harris also transferred his interest in their homestead by special warranty deed to Riley. The divorce was finalized on June 3, 2013.
On October 15, 2013, Harris filed for Chapter 7 bankruptcy in the Southern District of Texas. Harris claimed debts totaling $173,305.19 to various banks, credit cards, the home builder and other unsecured creditors. Harris failed to disclose on his bankruptcy petition the transfer of his homestead interest to Riley, the vehicle transfers, the sale of a truck for $5,500, and the $67,000 withdrawal from his joint account with Riley. A review of Riley’s bank records found that the $67,000 she transfered into her solely owned bank account was spent on mortgage payments and other joint household expenses. Riley’s transfer of the $67,000 from the joint account with Harris was done to hide those assets from being used to repay Harris’s creditors in the Chapter 7 bankruptcy. Further, Harris filed the bankruptcy petition with knowledge that the transfer was not disclosed to his creditors in the bankruptcy petition, as is required by law.
Under federal statutes, Harris and Riley face up to five 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.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorneys Christopher T. Tortorice and Paul Hable.
Harris County Residents Arrested on East Texas Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas – Acting U.S. Attorney Brit Featherston announced today that four individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
A federal grand jury returned an indictment, which was unsealed on Mar. 1, 2017, charging the following individuals with conspiracy to distribute heroin and conspiracy to money launder. These men appeared today before U.S. Magistrate Judge Keith Giblin for arraignments:
Jeihka Angelica Cuero, 24, of Colombia;
Carlos Ivan Calderon Rosado, 52, of Puerto Rico;
Alexander Ramirez Valencia, 43, of Colombia; and
Harry Martinez, 41, of Colombia.
According to the indictment, from about 2014 until February 2017, the defendants conspired to distribute heroin through Southeast Texas to the New Orleans area. During the investigation, law enforcement officers seized 10 kilograms of heroin and $386,000 cash.
All four men were currently residing in Houston. Martinez and Ramirez were pending final deportation hearings at the time of their arrests. Defendants face up to 20 years in federal prison if convicted of these crimes.
“Heroin use in the United States has reached a 20 year high according to the 2016 World Drug Report issued by the United Nations Office on Drugs and Crime, said Acting U.S. Attorney Featherston. “2016 saw the number of overdose drug deaths exceeded 50,000. This number is more than violent gun deaths, and more than car crash related fatalities reported in 2016.”
- case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case is being investigated by DEA, HSI-OHS, Texas Department of Public Safety, Houston Police Department and Beaumont Police Department and prosecuted by Assistant U.S. Attorney John A. Craft.
Red River County Man Convicted of Bank Robbery & Federal Firearms ViolationsRead the Press Release
TEXARKANA, Texas – A 50-year-old Avery, Texas man has been convicted by a jury following a violent crime spree in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Bobby Wayne Lance was found guilty of all eight counts in the indictment following a four-day trial before U.S. District Judge Robert W. Schroeder, III today. Lance was convicted of bank robbery, carjacking, two counts of Hobbs Act robbery, and four counts of possession of a firearm during a violent crime.
According to information presented in court, on Nov. 8, 2015, Lance robbed the Cinemark Movies 8 Cinema in Paris, Texas. On Nov. 14, 2015, Lance robbed the Carter’s Store and RV Park convenience store near DeKalb, Texas. On Nov. 17, 2015, Lance robbed the First National Bank of Mount Vernon, Cypress Springs Branch, in Scroggins, Texas of $73,946. Also on Nov. 17, 2015, Lance carjacked a vehicle from another individual. Lance used a handgun during each of these violent crimes. Lance was indicted by a federal grand jury on Dec. 16, 2015.
Under federal statutes, Lance 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, Paris Police Department, Texarkana, Texas Police Department, Franklin County Sheriff’s Office, Red River County Sheriff’s Office, Bowie County Sheriff, and the Texas Rangers. This case was prosecuted by Assistant U.S. Attorneys Ryan Locker, Robert Wells, and Jonathan Ross.
Federal Inmate Guilty of Possessing Shank in Beaumont PrisonRead the Press Release
BEAUMONT, Texas – A 26-year-old federal prison inmate has pleaded guilty to possession of a shank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rafael Castillo, Jr., pleaded guilty to possession of a prohibited object on Feb. 28, 2017, before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on June 20, 2016, Castillo, an inmate at the Federal Correctional Complex in Beaumont, was found during a pat-down search, to be in possession of two homemade weapons measuring approximately 5.5 inches and 7 inches in length each. Castillo had the weapons concealed in his pants pocket. Each weapon, commonly referred to as a ‘shank,’ had been constructed out of metal material and had been sharpened to a point and designed to be used as a weapon. Such objects are prohibited in the Beaumont Federal Correctional Complex.
Under federal statutes, Castillo faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and 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 Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Dallas Woman Sentenced in East Texas Bank Robbery & CarjackingRead the Press Release
TYLER, Texas – A 24-year-old Dallas woman has been sentenced to federal prison for her role in a series of violent crimes in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Chanel Collins pleaded guilty on Apr. 8, 2016 to aiding in the commission of a car-jacking and bank robbery and was sentenced to 36 months in federal prison by U.S. Appellate Court Judge Catherine Haynes on Feb. 27, 2017.
According to information presented in court, on Mar. 13, 2015, Collins drove LaQuaylan Patterson from Wood County, Texas, to an apartment complex in Tyler, Texas, so that he could commit an armed carjacking. Once they arrived at the complex, Patterson got out of Collins’ car, armed with a semiautomatic pistol, and told Collins to wait for his signal to her cell phone. Patterson then approach a woman, who was visiting her mother at the complex, brandished his pistol, and demanded the woman’s car keys. The woman surrendered the keys and Patterson got into her car and drove away. Patterson signaled Collins and she also departed the complex in her car. Collins and Patterson then drove the vehicles back to Wood County.
Later that day, Patterson used the stolen car to commit the second armed bank robbery. Collins drove her vehicle to a car wash in Big Sandy, Texas, and waited for Patterson as he robbed the 1st National Bank of Gilmer, located in Big Sandy. Patterson drove the stolen vehicle to the bank, brandished a pistol, climbed behind the teller counter, and demanded money from the tellers. The tellers stood aside as Patterson removed $29,734.00 from two cash drawers and put the money in a bag. Patterson then fled the bank with the cash and drove away in the stolen vehicle to meet Collins at the carwash. Once there, Patterson abandoned the stolen vehicle and fled with Collins in her vehicle. Collins and Patterson were indicted by a federal grand jury on June 17, 2015.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety - Texas Rangers, Tyler Police Department, Big Sandy Police Department, and Lancaster Police Department, and prosecuted by Assistant U.S. Attorney Jim Noble.
Southeast Texas Men Charged in Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that four Southeast Texas men have been charged in a federal robbery conspiracy in the Eastern District of Texas.
According to complaints filed today in federal court, Micah Ledell Johnson, 37, of Humble, Texas; Darrell Paul Williams, 36, of Beaumont; Gerrick Leon Wade, 36, of Houston; and Eric Ray Johnson, 36, of Houston, are alleged to be involved in a conspiracy to commit interference with commerce by robbery in Beaumont, Corpus Christi, and the Houston metro area.
On Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding.
If convicted, the defendants face penalties of up to 20 years in federal prison. 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.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Lesley Woods.
Dallas County Man Sentenced for East Texas Bank Robberies & CarjackingRead the Press Release
TYLER, Texas – A 25-year-old Lancaster, Texas man has been sentenced to federal prison for violent crimes in the Eastern District of Texas, announced Acting U.S. Attorney Britt Featherston today.
LaQuaylan Wesley Patterson pleaded guilty on Aug. 23, 2016 to committing two armed bank robberies and a related car-jacking. Patterson was sentenced to 171 months in federal prison on Feb. 21, 2017 by U.S. District Court Judge Ron Clark.
According to information presented in court, on Aug. 8, 2014, Patterson robbed the Cornerstone Credit Union in Lancaster, Texas, where he brandished a pistol, climbed behind the teller counter, and demanded money from the tellers. The tellers removed $6,888.00 from cash drawers and put the money in a bag. Patterson then fled the bank, with the cash, and drove away in a stolen car. Patterson then drove the stolen vehicle to the 500 block of West Main Street, in Lancaster, where he abandoned the vehicle and fled on foot.
On Mar. 13, 2015, Patterson and co-defendant, Chanel Collins, drove from Wood County, Texas, to an apartment complex in Tyler, Texas, with the intent commit an armed carjacking. Once they arrived at the complex, Patterson got out of Collins’ car, armed with a semiautomatic pistol, and told Collins to wait for his signal to her cell phone. Patterson then approach a woman, who was visiting her mother at the complex, brandished his pistol, and demanded the woman’s car keys. The woman surrendered the keys and Patterson got into her car and drove away. Patterson signaled Collins and she also departed the complex in her car. Collins and Patterson then drove the vehicles back to Wood County.
Later that day, Patterson used the stolen car to commit the second armed bank robbery. Collins drove her vehicle to a car wash in Big Sandy, Texas, and waited for Patterson as he robbed the 1st National Bank of Gilmer, located in Big Sandy. Patterson drove the stolen vehicle to the bank, brandished a pistol, climbed behind the teller counter, and demanded money from the tellers. The tellers stood aside as Patterson removed $29,734.00 from two cash drawers and put the money in a bag. Patterson then fled the bank with the cash and drove away in the stolen vehicle to meet Collins at the carwash. Once there, Patterson abandoned the stolen vehicle and fled with Collins in her vehicle. Patterson was indicted by a federal grand jury on June 17, 2015.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety - Texas Rangers, Tyler Police Department, Big Sandy Police Department, and Lancaster Police Department, and prosecuted by Assistant U.S. Attorney Jim Noble.
Houston Man Guilty in Beaumont IH-10 Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 27-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Hugo Alejandro Garcia pleaded guilty to conspiracy to possess with intent to distribute cocaine today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Oct. 27, 2016, law enforcement officers pulled over Garcia on Interstate 10 eastbound in Beaumont for a traffic violation. Garcia was extremely nervous and during questioning he provided officers with inconsistencies as to his travel plans. Garcia gave consent to search the vehicle which resulted in officers discovering four bundles wrapped in black electrical tape and concealed under the carpet in the trunk. Garcia admitted to transporting narcotics and stated he was on his way to Louisiana with the drugs. The bundles contained four kilograms of cocaine. Garcia was indicted by a federal grand jury on Nov. 2, 2016.
Under federal statutes, Garcia faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Drug Enforcement Administration and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
Trophy Club Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 29-year-old Trophy Club, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jayce Craft pleaded guilty on July 28, 2016, to distribution of child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Amos L. Mazzant.
- to information presented in court, Craft came to the attention of law enforcement when it was discovered that an individual utilizing an online file hosting service and online accounts associated with his identity had uploaded child pornography into a cloud storage account. Agents obtained a search warrant for a residence in Trophy Club that was associated with the online activity, which was executed on Sep. 15, 2015. Agents seized electronic media belonging to Craft that was found to contain a substantial amount of child pornography. In addition, it was discovered that Craft had distributed child pornography to, and received files from, other individuals through the use of electronic mail accounts. As part of his plea, Craft admitted that the files depicted children, including prepubescent children, engaged in sexually explicit activity, as well as sadistic/masochistic abuse. Craft was indicted by a federal grand jury on Oct. 14, 2015, and charged with child pornography violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, Flower Mound Police Department and Trophy Club Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Jasper County Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 25-year-old Jasper, Texas man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Floyd Michael Richardson pleaded guilty on Oct. 4, 2016, to being a felon in possession of a firearm and was sentenced to 70 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Mar. 27, 2016, law enforcement officers responded to a call from the Jasper Manor Apartments. An officer observed Richardson exiting a vehicle at the apartments with crack cocaine in plain view on the vehicle’s center console. Richardson fled the scene as officers attempted to apprehend him. A search of the vehicle revealed a loaded pistol, which had been reported stolen just a few days earlier. Further investigation revealed Richardson was a convicted felon having been previously found guilty in Jefferson County, Texas of theft in 2010 and robbery in 2010. As a convicted felon, Richardson is prohibited from owning or possessing firearms or ammunition. Richardson was indicted by a federal grand jury on Aug. 3, 2016 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, 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 Jasper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
Houston Man Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 44-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
John Nealy Holt pleaded guilty on Aug. 5, 2016, to conspiracy to possess with intent to methamphetamine and was sentenced to 174 months in federal prison today by U.S. District Judge Thad Heartfield.
On Mar. 5, 2015, a federal grand jury returned an indictment charging 24 individuals with conspiring to possess with the intent to distribute methamphetamine, possessing firearms in furtherance of a drug trafficking crime, and using facilities of interstate commerce to facilitate the interstate distribution of illegal narcotics. The defendants were responsible for trafficking methamphetamine to customers across the United States, including in the Eastern District of Texas. Over the span of the conspiracy, this drug ring obtained over 150 kilograms of methamphetamine from numerous Mexican sources of supply that was subsequently redistributed in Houston, Texas, Port Arthur, Texas, Southwest Louisiana, and other areas across the United States. During the course of the investigation, officers recovered numerous stolen automobiles and other valuable property, which investigators allege was acquired by members of the drug trafficking ring in exchange for methamphetamine.
This case is the result of an extensive 4 ½ year 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. During the course of this operation, agents have successfully arrested over 38 individuals and have seized multi-kilogram quantities of methamphetamine, kilogram quantities of drug laced hallucinogen “gummy” candies, 22 firearms, over 400 lbs. of ammunition, and recovered 17 stolen automobiles, 5 stolen motorcycles, 2 stolen trailers, and hundreds of antiques. Holt was the final defendant to be sentenced as a result of this investigation. The other defendants were sentenced to federal prison as follows:
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Leslie Dianne Baron, 32, of Houston, 168 months;
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Christopher Dean Inman, 41, of Houston, 121 months;
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Leslie Lee Inman, 37, of Houston, 168 months;
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Eric Lazaro Castaneda, 38, of Houston, 87 months;
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Carlos Eduvijis Rosales, 38, of Houston, 151 months;
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Travis Alejandro Lyon, 34, of Houston, 60 months;
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Gilbert Gomez, 37, of Baytown, Texas, 292 months;
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Joshua Lee Lanman, 38, of Jersey Village, Texas, 60 months;
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Albert Cardenas, Jr., 23, of Houston, 87 months;
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Burton Paul Dupuy, 44, of Shreveport, LA, 24 months;
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Amado Tobar, 44, of Dallas, 137 months;
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Joseph Louis Henning, 58, of Houston, 200 months;
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Kenneth Sheldrick, 37, of Houston, 135 months;
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Luis Fernando Garcia, 23, of Port Arthur, Texas, 87 months;
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Gerardo Chavez, 38, of Nederland, Texas, 121 months;
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Alex Trejo, 28, of Lake Elsinore, CA, 80 months;
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Michael Broughton, 39, of Port Arthur, Texas, 63 months;
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Shawn Key, 37, of New Caney, Texas, 188 months
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Taber Price, 39, of Humble, Texas, 151 months;
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Britanny Danielle Beckham, 31, of Hearne, Texas, 33 months;
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Ricardo Cortes Lozano, 44, of Baytown, Texas, 12 months;
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Pablo Hernandez, 39, of Houston, 87 months; and
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Thurman Clevenger, 51, of Houston, 12 months.
This case was investigated by the Drug Enforcement Administration Beaumont Resident Office, Internal Revenue Service – Criminal Investigations, the Port Arthur Police Department, and the Houston Police Department, and prosecuted by Assistant U.S. Attorneys Paul A. Hable and Michelle S. Englade.
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Denton County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 63-year-old The Colony, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
David M. Kruse pleaded guilty on Oct. 6, 2016, to possession of child pornography and was sentenced to 10 years in federal prison today by U.S. District Judge Amos L. Mazzant.
- to information presented in court, in August 2015, federal agents obtained a search warrant for a computer owned by Kruse after receiving information about an individual who had accessed child pornography from a site known to host that material. On that date, agents spoke with Kruse who admitted to owning the computer, which was later found to contain more than 20,000 images and videos of child pornography, including files depicting prepubescent minors and sadistic/masochistic conduct. Kruse was indicted by a federal grand jury on Aug. 13, 2015, and charged with child pornography violations.
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 and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Collin County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 40-year-old Wylie, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jesse McQuade pleaded guilty on Sep. 13, 2016, to possession of child pornography and was sentenced to 97 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, in April 2016, an undercover officer was conducting an investigation into the sharing of child pornography files on a peer-to-peer network. The officer downloaded a number of files of child pornography, which resolved to a computer user at McQuade's home in Wylie. A federal search warrant was executed on Aug. 9, 2016, during which agents seized digital media, including a 1TB hard drive that was found to contain child pornography. McQuade admitted that he knew that the items on the hard drive were child pornography, including files depicting prepubescent minors and sadistic/masochistic conduct.
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, the Plano Police Department and the Wylie Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Orange County Man Sentenced for Federal Violations Related to Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 40-year-old Orange, Texas man has been sentenced to federal prison for federal violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Ozzie Nelson Ibarra pleaded guilty on Aug. 9, 2016, to conspiracy to interfere with interstate commerce by robbery and conspiracy to use and carry firearms during a crime of violence and drug trafficking crime. Ibarra was sentenced to 420 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in 2001, Ibarra and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Ibarra admitted to committing the robberies for the purpose of supporting his crack cocaine habit. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Ibarra and his co-defendants were responsible for the May 2010 death of a Port Acres, Texas woman who was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Ibarra’s involvement, they were able to obtain video surveillance from area businesses that verified Ibarra’s presence in the area at the time of the shooting. Ibarra was indicted by a federal grand jury on May 4, 2016.
“The murder of Allison Neil Clark in 2010 was long held as an unsolved cold case, but it was never forgotten by detectives with the Port Arthur Police Department or Allison’s family,” said Acting U.S. Attorney Brit Featherston. “This tenacious team, joined by federal prosecutor Lesley Woods and Port Arthur Police detectives Alton Baise and Paul Arvizo, focused their time and skills to piece this case together. Today, justice was finally served for the family of Allison, and for the investigators, and the citizens of Port Arthur who were egregiously harmed by these individuals. Ozzie Ibarra will harm no one else in the future!”
This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lesley Woods.
Jefferson County Man Sentenced for Drug ViolationsRead the Press Release
BEAUMONT, Texas - A 34-year-old Beaumont, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Billy Ray Joseph, Jr., pleaded guilty on Oct. 13, 2016, to conspiracy to distribute and possession with intent to distribute heroin and was sentenced to 135 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Mar. 28, 2016, acting on leads from investigators in Houston, agents and investigators conducted surveillance of an address in Beaumont, Texas on McLean Street where they observed Joseph exit the residence with a Styrofoam cup in his hand and get in a vehicle. Joseph was then detained by officers after committing multiple traffic violations. Investigators searched the residence, which was Joseph’s home at the time, and recovered a firearm, crack cocaine, and plastic wrapping for a kilogram of narcotics that contained heroin residue. Detectives also found drug paraphernalia and ecstasy. Joseph was indicted by a federal grand jury on Apr. 6, 2016.
This case was investigated by the Drug Enforcement Administration, the Beaumont Police Department, and Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Lesley Woods.
Jefferson County Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 44-year-old Beaumont, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Michael Jon Gelagotis pleaded guilty on Aug. 17, 2016, to being a felon in possession of a firearm and was sentenced to 100 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Sep. 24, 2015, law enforcement officers executed a search warrant at Gelagotis’s residence after he had violated the terms of his state probation for impersonating a public servant. Inside the residence, the officers found 34 firearms, including high-caliber rifles, semi-automatic pistols, and a shotgun. The officers also found more than 30,000 rounds of assorted ammunition and more than 40 large capacity 223 caliber magazines, and a ballistic vest. As a convicted felon, Gelagotis is prohibited from owning or possessing firearms or ammunition. Gelagotis was previously convicted of risk of injury in New Haven, Connecticut, in 1993, and grand larceny, in Newport, Vermont, in 1997. Gelagotis was indicted by a federal grand jury on May 4, 2016 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Jefferson County Convicted Felon Sentenced for Drug and Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 43-year-old Beaumont, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Deshawn Paul Hall, also known as Deshawn Paul Davis, was convicted at trial on Aug. 31, 2016, of being a felon in possession of a firearm, possession with intent to distribute, and distribution of crack cocaine and was sentenced to 155 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Hall was found to be distributing crack cocaine out of a home on Magnolia Street in Beaumont, Texas for over a year. During the investigation it was also revealed that Hall was a convicted felon having been previously convicted in Jefferson County, Texas of sexual assault in 1993; failure to comply with sex offender registry in 2007; and possession of a controlled substance in 2012. When detectives and officers with the police department executed a search warrant at the residence where Hall was living illegally, investigators discovered that Hall was also living with a juvenile female. Hall was also in possession of three firearms and crack cocaine on that same occasion. Hall was indicted by a federal grand jury on Sep. 5, 2015.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Lesley Woods.
Hardin County Man Sentenced for Drug ViolationsRead the Press Release
BEAUMONT, Texas - A 28-year-old Silsbee, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Seth Deandre Turner pleaded guilty on Aug. 9, 2016, to conspiracy to possess with intent to distribute crack cocaine and was sentenced to 250 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on July 21, 2010, law enforcement officers searched a residence in Beaumont where Turner resided during which officers recovered a handgun, a rifle and 7.93 grams of crack cocaine. Also recovered during the search was drug paraphernalia commonly used for “cooking” or manufacturing cocaine powder into crack cocaine and $1,050 in cash from controlled substance sales. On Feb. 17, 2015, Turner was apprehended as the suspect of a burglary and found in possession of over 20 grams of crack cocaine and another $2,013 in his pocket from illegal crack cocaine sales. Turner was indicted on May 4, 2016, along with co-defendants responsible for dealing crack cocaine from a Beaumont residence on Avenue A for over 10 years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Lesley Woods.
Former CEO of Nebraska Pharmaceutical Benefits Manager Guilty in Kickback SchemeRead the Press Release
TYLER, Texas – The former CEO of a Nebraska pharmaceutical benefits manager has pleaded guilty to engaging in illegal kickbacks in the Eastern District of Texas, announced Acting United States Attorney Brit Featherston today.
Douglas M. Pick, 57, of Omaha, Nebraska, pleaded guilty to making unlawful kickback payments today before United States Magistrate Judge John D. Love. At sentencing, Pick faces up to three years in federal prison. A sentencing date has not been set.
According to information presented in court, Pick was the founder and long-time President and CEO of Pharmaceutical Technologies, Inc. (PTI). The company, which operates as a pharmacy benefits manager (PBM), provides for the administration and delivery of pharmacy products and services. PTI uses a network of pharmacies to service employee welfare benefit plans and health care benefit programs across the United States. During Pick’s tenure, PTI contracted with certain individuals, known as “Producers,” who had close business relationships with benefit plans. These benefit plans require administrative services in connection with the delivery of pharmacy products and services to their members. Agreements between PTI and certain Producers were used to facilitate the payment of illegal kickbacks. These Producers unlawfully used their positions to steer the benefit plans to PTI in exchange for kickback payments. The payments by Pick and PTI were based on the volume of business the Producers steered to PTI. Such agreements and the related payments violate the Employee Retirement Income Security Act of 1974 (ERISA). Pick, as PTI’s President and CEO, was primarily responsible for the negotiations with Producers.
Between 2001 and 2013, Pick, acting on PTI’s behalf, entered into agreements with several Producers who unlawfully used their positions to refer benefit plan business to PTI in exchange for illegal kickback payments. These Producers collectively received illegal payments in excess of $3.5 million.
One such Producer was Tom Slack of Tyler, Texas. From 1998-2011, Slack served as the CEO of Tyler-based HealthFirst and its subsidiaries, including HealthFirst RX Solutions (HFRX). HealthFirst, a subsidiary of East Texas Medical Center, provides administrative services to employee benefit plans in East Texas. The plans include health care benefits, such as pharmacy products. HFRX, a private label PBM located in Tyler, provides pharmacy benefit services to HealthFirst’s client plans. In early 2004, Pick and Slack executed a contract in which PTI agreed to administer the pharmacy benefits of HealthFirst’s client plans through HFRX. The agreement specified that HealthFirst would pay PTI an administrative fee for every claim made for the filling of prescriptions. During April and May of 2004, Slack expressed to Pick that he wanted to personally receive money on the pharmacy business from HealthFirst in exchange for directing more business to PTI and automatic renewal of the PTI-HealthFirst agreement each year. Pick agreed that PTI would pay Slack in exchange for this commitment. To do so, Pick and Slack agreed that Slack would approve an increase of the PTI administrative fee imposed on HealthFirst’s clients for each prescription filled. PTI would then pay the increase to a shell company that Slack had established. Slack, who was fired by HealthFirst in July 2011 and later passed away in 2012, received more than $1.5 million in illegal payments/kickbacks from Pick and PTI.
Gary Gustafson, a Producer from Eden Prairie, Minnesota, received close to $750,000 in illegal payments/kickbacks from Pick and PTI. He pleaded guilty to federal health care fraud charges in the District of Minnesota in May 2016 and is awaiting sentencing.
To resolve the matter, PTI entered into a non-prosecution agreement with the United States and agreed to pay over $8.5 million. As part of the agreement, PTI agreed to cooperate with the government in the investigation and prosecution of individuals involved in the illegal kickback arrangements and to maintain internal controls, including compliance with ERISA, the Anti-Kickback Statute, and all other applicable statutes.
The case was investigated by the U.S. Department of Health and Human Services, the U.S. Department of Labor - Employee Benefits Security Administration, and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan and Special Assistant U.S. Attorney Kenneth McGurk prosecuted the case.
Houston Man Guilty in Prison Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 54-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Alvin Lee Turner pleaded guilty to conspiracy to commit wire fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Sep. 30, 2016, federal and local agents arrested three individuals in the Houston area involved in a nationwide six-year scheme which defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality the indictment alleges the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony. Separate indictments in the scheme were handed down by federal grand juries in the Eastern District of Texas, Beaumont Division, and the Southern District of Florida, Miami Division. The Texas indictment alleged a wire fraud and conspiracy to commit wire fraud involving six individuals: Alvin James Warrick, 41, Colitha Patrice Bush, 36, Ronald B. Shepherd, 33, and Alvin Turner, 54, all of Houston, Texas; and Larry Lee Stephenson, 48, of Port Arthur, Texas. Additionally, Alvin James Warrick, Colitha Patrice Bush, Ronald B. Shepherd were also the subject of the indictment from the Southern District of Florida also alleging a wire fraud and conspiracy to commit wire fraud. The indictments allege different victims in and around each district. The scheme resulted in losses to inmate families of over $4 million. Turner was arrested in October and Stephenson surrendered in October. One defendant remains at large and is being sought by authorities. Warrick is detained pending trial in Miami. Bush, Shepherd, Turner, and Stephenson are released on conditions.
Under federal statutes, the defendants face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of Inspector General, in Miami and New York region; U.S. Marshals Service; Houston Police Department- Major Offenders Division; United States Attorney’s Offices in the Eastern District of Texas, Southern District of Florida, and Eastern District of New York. The case is being prosecuted by Assistant U.S. Attorney Robert L. Rawls.
North Texas Pharmacy and Owner Agree to pay $400,000 to Resolve AllegationsRead the Press Release
PLANO, Texas – Trinity Pharmacy in Carrollton, Texas, and one of its owners, Jonathan Paul Lipe, have agreed to pay the United States $400,000 to settle alleged violations of the Controlled Substances Act in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
The Controlled Substances Act (CSA) is the primary federal law regulating the distribution and availability of controlled substances. Strict compliance with the CSA is required in order to prevent, among other things, the unlawful movement of controlled substances into communities.
Prior to filing a lawsuit, the United States alleged that it had civil penalty claims against both Trinity Pharmacy and Lipe under the CSA for, among other things, failing to maintain required records, failing to secure controlled substances, and failing to file loss reports. According to the settlement agreement, the United States alleged that the CSA violations facilitated and enabled criminal conduct by Trinity Pharmacy’s prior pharmacist-in-charge, John Christopher Esparza. Esparza misappropriated Trinity Pharmacy’s controlled substances, including 3.1 kilograms of oxycodone powder, and has since pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance in violation of the CSA.
Trinity Pharmacy and Lipe agreed to pay $400,000 to resolve the civil allegations and have denied any allegations of wrongdoing.
As the United States Attorney’s Office announced regarding the recent National Prescription Drug Take Back Day, America is presently experiencing an epidemic of addiction, overdose, and death due to abuse of prescription drugs, particularly opioid painkillers. In 2015, approximately 6.4 million Americans aged 12 and over misused prescription drugs, according to the 2015 National Survey on Drug Use and Health—more than those that abused cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms.
“Today’s settlement puts on notice every entity and person with obligations under the CSA—including pharmacies and their owners—that the United States will not tolerate carelessness with controlled substances,” said Acting U.S. Attorney Featherston. “Prescription drug abuse is a deadly problem of epidemic proportions in our communities; people are dying every single day because of it. If you mishandle controlled substances or shirk your obligations under the CSA, expect a visit from us.”
This case was investigated by the Drug Enforcement Administration Dallas Division, the Texas Department of Public Safety, the Texas Board of Pharmacy, the McKinney Police Department, and the U.S. Attorney’s Office for the Eastern District of Texas. The settlement was negotiated by Assistant U.S. Attorney Joshua Russ. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Texas Doctor Sentenced in Prescription Drug ConspiracyRead the Press Release
SHERMAN, Texas – A Dallas physician has been sentenced to federal prison for conspiracy to sell illegal prescriptions in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Habiboola Niamatali, 75, of Dallas, was found guilty by a jury in July 2016 of conspiracy to distribute Hydrocodone, Alprazolam, and Promethazine with Codeine outside the usual course of professional practice and without a legitimate medical purpose. Niamatali was sentenced to 78 months in federal prison today by U.S. District Judge Marcia Crone. Niamatali was also ordered to pay a $50,000 fine.
According to information presented in court, Niamatali used his medical clinics in Garland and Lancaster to sell illegal prescriptions for cash. The defendant attempted to cover up his scheme by ordering his staff to falsify medical records. Niamatali was indicted by a federal grand jury on July 10, 2013.
Before the trial, the staff members who falsified the records, Esmeralda Lozada and Lisa Tumlinson, pleaded guilty to conspiracy and were sentenced respectively to 16 months and 10 months in prison. Additionally, the physician’s wife, Shirley Niamatali, admitted that she knew about the conspiracy, pleaded guilty to misprision of a felony, was sentenced to 3 years of probation, and fined $20,000.
“’Do no Harm,’ the Hippocratic Oath adhered to by all but a few physicians, remains as sacred today as it was centuries ago,” said Acting U.S. Attorney Brit Featherston. “Dr. Niamatali chose to violate the oath, and his duty as a physician, by choosing to harm others by prescribing unwarranted drugs.”
The case was investigated by the U.S. Drug Enforcement Administration – Dallas Tactical Diversion Squad, DeSoto Police Department, and Ellis County Sheriff’s Office.