Eastern District of Texas
Press releases recorded for this federal judicial district.
Jefferson County Man Sentenced in Carjacking DeathRead the Press Release
BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has been sentenced to federal prison for a fatal carjacking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Demond Patton pleaded guilty on Aug. 11, 2015 to carjacking resulting in death and was sentenced to 40 years in federal prison today by U.S. District Judge Thad Heartfield. This sentence will run consecutive to a state prison sentence he is already serving.
According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant. When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction. Patton and Gobert fled the laundry in their vehicle without the victim’s keys. They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle. A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him. Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys. A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting. Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind. Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings. On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting. Gobert pleaded guilty and was sentenced to seven years in state prison. Patton pleaded guilty and was sentenced to 10 years in state prison. On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.
Gobert is set for sentencing in federal court on Feb. 2, 2016.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Carthage Man Sentenced for Selling MarijuanaRead the Press Release
TYLER, Texas – A 43 year old Carthage, Texas man has been sentenced to federal prison for conspiring to distribute over 50 kilograms of marijuana that was stolen from the Tenaha City Marshal’s Office in 2010 announced U.S. Attorney John M. Bales todayU.S. Attorney John M. Bales today.
Roderrete Dewrayne McClure (McClure) pleaded guilty on March 6, 2015, to Conspiracy to Distribute Marijuana and was sentenced to 56 months in federal prison today by U.S. District Judge Michael H. Schneider. According to information presented in court, sometime before August 22, 2010, McClure and a confederate removed over fifty (50) kilograms of marijuana from the Tenaha City Marshal’s Office evidence room. Fire starter logs were substituted to cover the taking of the marijuana. On August 17 and 19, 2010, McClure took digital images of the stolen marijuana and transmitted them to person identified only as (T.F.) in order to facilitate the sale of the drugs in the Dallas area. In July 2010, McClure provided some of the stolen marijuana to another person, identified as K.M., to sell in the area of Shreveport, Louisiana. McClure admitted that he received payments in exchange for the marijuana.
This case was investigated by the F.B.I. Tyler Office and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Former Smith County Insurance Agent Guilty in $5.4 million Fraud SchemeRead the Press Release
TYLER, Texas – A 64-year-old former insurance agent has pleaded guilty to wire fraud and money laundering in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robert B. Hahn, of Tyler, pleaded guilty to an information charging him with wire fraud and money laundering on Nov. 19, 2015 before U.S. Magistrate Judge John D. Love.
According to information presented in court, from January 2007 to February 2015, Hahn devised and executed a scheme in which he claimed to represent a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn led approximately 100 potential investors to believe this group of doctors would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from these individuals and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to said individuals, representing a 20% return on said fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to said individuals in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that in truth and in fact, there never was a group of doctors raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from individual investors. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”.
Hahn faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.
Grade School Teacher Arrested on Child Pornography ChargesRead the Press Release
PLANO, Texas — A 31-year-old Plano schoolteacher has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Oser, a 5th grade teacher at Legacy Charter School in Plano, was arrested on Friday, Nov. 13, 2015, and appeared today before U.S. Magistrate Judge Don D. Bush for an initial appearance.
Oser has been charged in a federal complaint with distribution of child pornography. Oser will return to court on Nov. 24, 2015 for detention and preliminary hearings.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have any information on this case, please contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being investigated by the Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
It is important to note that an arrest, indictment, or complaint 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.
North Texas Man Sentenced in Foreign Currency Trading SchemeRead the Press Release
SHERMAN, Texas – A 47-year-old former resident of Bonham, Texas, was sentenced to federal prison for operating a currency trading scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frank Edwin Pate was found guilty by a jury on May 26, 2015, of two counts of wire fraud and one count of mail fraud following a five-day trial before U.S. District Judge Amos Mazzant. Pate was sentenced to 210 months in federal prison today by Judge Mazzant. Pate was also ordered to pay restitution in the amount of $2,829,589.84.
According to information presented in court, Pate perpetrated a fraud scheme on seven individuals who invested money with Pate for the purpose of trading foreign currency on their behalf. Pate’s scheme caused investors to invest over $3.4 million over a several year period for the purpose of currency trading. Instead of using the money for foreign currency trading, Pate spent a large portion of the money for his own personal expenses. Pate was indicted by a federal grand jury on Aug. 13, 2014.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys J. Andrew Williams and Christopher Eason.
Denton County Man Sentenced for Transporting Child PornographyRead the Press Release
PLANO, Texas – A 37-year-old Denton, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe Edward Cummings pleaded guilty on Sep. 16, 2015, to transporting child pornography in interstate commerce and was sentenced to 151 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, in September 2014, the Texas Rangers and the Justin Police Department initiated an investigation when the social media platform Twitter reported to the National Center for Missing and Exploited Children that an individual using a computer in Cummings’ residence had posted child pornography on Twitter. Law enforcement obtained and executed a search warrant at Cummings’ house on Oct. 1, 2014. At that time, officers seized a number of digital devices, including a computer tablet belonging to Cummings. Forensic agents located child pornography on Cummings’ tablet during a forensic review of the seized digital media. As the investigation continued, officers discovered that Cummings, who was then a sworn peace officer with the Denton County Sheriff’s Office, had transported child pornography onto an online file hosting service for cloud storage, as well as through other social media platforms and online communication services.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety – Texas Rangers, and the Justin, Texas Police Department, and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
Texarkana Drug Traffickers Arrested in Operation Flashback Meth InvestigationRead the Press Release
TEXARKANA, Texas – U.S. Attorney John M. Bales announced today the arrest of multiple individuals indicted for drug trafficking violations in the Eastern District of Texas.
Arrests were made on Oct. 27, 2015 as part of Operation Flashback, a two-year joint federal and state investigation into individuals responsible for mid- and high-level trafficking and distribution of methamphetamine through the Eastern District of Texas as well as to Arkansas, Louisiana, and Tennessee. The defendants are alleged to have been responsible for trafficking and distributing more than 1,000 kilograms of methamphetamine through the I-30 corridor, to Northeast Texas, Southwest Arkansas, and beyond. A federal grand jury returned a sealed 43-count indictment on Sep. 16, 2015 charging the following individuals with drug trafficking violations:
Jeffrey George, Jr., 29, of Texarkana, Texas;
Joshua Thompson, 35, of Hot Springs, Arkansas;
Kyle Davis, 29, of Texarkana, Arkansas;
Demetrice Dornell Mullens, 25, of Texarkana, Texas;
James Neal Byrd, 25, of Texarkana, Arkansas;
Shawna Marie Seifert, 34, of Texarkana, Texas;
Stacy Childs, 25, of Hot Springs, Arkansas;
Stephanie Martinez, 33, of Hot Springs, Arkansas;
Pablo Martinez, 39, of Royal, Arkansas;
Dondrail Parks, 31, of Texarkana, Arkansas;
Billy Krimmel, 36, of Gould, Arkansas;
Lloyd Guedel Jones, Jr., 30, of Texarkana, Texas;
Jay Dee Doolin, 53, of Hooks, Texas;
Whitney Ann Smith, 52, of Texarkana, Texas;
Mica Crumpton-Smith, 35, of Texarkana, Arkansas;
Eliasar Mata, 31, of Dallas, Texas;
Gary Don Sandlin, 58, of Texarkana, Texas;
Roddis Faust, 28, of Texarkana, Texas;
Michael Shane Spencer, 42, of Texarkana, Texas;
Veronica Zuniga Rodriguez, 32, of Texarkana, Texas;
April Michaelle Wright, 24, of Texarkana, Texas;
Charles Randall Porter, 59, of Wake Village, Texas;
Kenneth Wayne Milner, 42, of Texarkana, Arkansas;
Jamilu Whiteside, 38, of Nash, Texas;
Matthew Ray Thompson, 28, of Texarkana, Arkansas;
Shauna Michelle Erwin, 37, of Wake Village, Texas;
Sam Rich, 47, of Tyler, Texas;
Kimberly Denise Unholz, 46, of Texarkana, Texas;
Jeanna Renea Watson-Patterson, 30, of Nash, Texas;
Daniel Garrett , 27, of Texarkana, Arkansas; and
Sheena Geneene McClendon, 30, of Texarkana, Texas.This case is the result of an extensive two-year joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and Texarkana, Texas, Police Department; with the assistance of the U.S. Drug Enforcement Administration; U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Marshals Service; Texarkana, Arkansas, Police Department; the Bowie County (Texas) and Miller County (Arkansas) Sheriff’s Offices; the U.S. Attorney’s Office for the Western District of Arkansas; and the District Attorney’s Offices of Bowie County (Texas) and Miller County (Arkansas). During the course of this operation, agents have successfully arrested approximately 75 individuals and seized approximately six pounds of methamphetamine, large amounts of marijuana, more than $35,000 in U.S. currency, one vehicle, approximately 45 firearms, and more than 10,000 rounds of ammunition.
The investigation has led to additional arrests in the Northern District of Texas (Dallas area), including more than 16 additional defendants and the seizure of more than two kilograms of methamphetamine.
These cases are being prosecuted by Assistant U.S. Attorneys Ryan Locker and Paul Hable.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kellogg Brown & Root Ordered to Pay for Accepting KickbacksRead the Press Release
BEAUMONT, Texas – A military contractor has been levied with a monetary judgment for accepting gifts and gratuities from sub-contractors, announced Eastern District of Texas U.S. Attorney John M. Bales today.
On Oct. 15, 2015, Kellogg Brown & Root, Inc. (KBR) was ordered to pay a final judgment of $108,342.10 to the United States by U.S. District Judge Marcia Crone.
According to court documents, KBR, a Delaware corporation with its principal place of business in Houston, violated provisions of the Anti-Kickback Act, 41 U.S.C. § 8706, when KBR employees improperly accepted gifts and gratuities, including expensive dinners, golf outings and event tickets from various sub-contractors while KBR was providing logistic services to the United States Army Operations Support Command contract known as LOGCAP III. LOGCAP III was awarded to KBR for the provision of logistical support to the Army in Iraq and Afghanistan. Final judgment was ordered following a four-day bench trial in June 2015.
The kickbacks first came to light during an investigation of fraudulent billings in another case. At that time it was revealed that from 2003 to 2005, several managers in the KBR traffic department had accepted illegal benefits from two subcontractors, Eagle Global Logistics EGL and Panalpina, Inc. Both subcontractors previously settled claims for kickback violations without admitting liability.
“The business of paying and accepting kickbacks to gain or keep government business is an age-old practice, but it is an obnoxious one and a violation of the trust that companies and individuals should be held to when doing business on behalf of the nation,” said U.S. Attorney Bales. “The Court’s verdict underscores that principal and we commend and celebrate its judgment. The United States Attorney’s office will remain vigilant to detect and to prosecute future violations – there will be zero tolerance for any kickbacks.”
The case was investigated by the Federal Bureau of Investigation and Defense Criminal Investigative Services. The case was prosecuted by Samuel Buffone, Kelley Hauser and Glenn Harris from the Department of Justice, Civil Division, and Michael Lockhart, Assistant U.S. Attorney for the Eastern District of Texas.
Orange County, Texas Man Charged with Federal Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas – A 59-year-old Orange, Texas man has been indicted on federal drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Grover Lee Roberts was indicted on Oct. 7, 2015 and charged with conspiracy to possess with intent to distribute crack cocaine. Roberts was arrested in Orange today on those charges.
According to the indictment, since 2008, Roberts conspired with others to distribute more than 28 grams of crack cocaine from his residence on South Hart Avenue in Orange, Texas.
If convicted, Roberts faces up to 40 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
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.
Angelina County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
LUFKIN, Texas – A 47-year-old Lufkin, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Phil Bernard Lewis pleaded guilty on Dec. 17, 2014, to conspiracy to distribute and to possess with intent to distribute cocaine and was sentenced to 300 months in federal prison on Oct. 9, 2015 by U.S. District Judge Michael H. Schneider.
According to information presented in court, from 2011 to October 2014, Lewis conspired with others to distribute more than five kilograms of cocaine from Mexico to customers in the United States, including Lufkin, Texas. Much of the cocaine was converted to crack cocaine. Lewis personally received shipments of cocaine from a supplier on a weekly basis and transported it to Lufkin. Once in Lufkin, Lewis stored the cocaine and crack cocaine at several locations in Lufkin including houses on Dale Street, Booker Street, and East Texas Road, until the drugs were distributed to dealers for trafficking in the area. Lewis was indicted by a federal grand jury on Oct. 1, 2014 and charged with drug trafficking violations.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation, Operation Fowl Play. 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 U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Angelina County Sheriff’s Office, Angelina County Constable Tom Selman, Precinct 1, Nacogdoches County Sheriff’s Office, the Nacogdoches Police Department, and the Lufkin Police Department. This case was prosecuted by Assistant U.S. Attorney Baylor Wortham.
Two Sentenced for Roles in Prescription Drug Smuggling RingRead the Press Release
TYLER, Texas - U.S. Attorney John M. Bales announced today that two Athens, Texas residents have been sentenced for their role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.
Tom Giddens, 57, and Wanda Hollis, 63, were each sentenced to serve 15 months in prison by U.S. District Court Judge Michael H. Schneider. In April 2015, they each pleaded guilty to one count of conspiracy to smuggle the drugs into the United States. A third defendant, Catherine Nix, 42, also of Athens, will be sentenced at a later date.
In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. The shipments contained unapproved, bogus versions of several U.S. Food and Drug Administration (FDA)-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense. The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra®; and, Stilnox®, marketed in the United States as Ambien®. None of the pills that were seized and tested were legitimate. Some were sub-potent, but most contained entirely different active ingredients from the legitimate, approved versions. The defendants also attempted to conceal their smuggling by using shipping labels that misrepresented the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.
“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This illegal operation introduced over 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk. Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”
“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales of the Eastern District of Texas. “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display. These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”
“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations. “Those who evade those laws risk harming the public’s health. We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”
This case was investigated by the FDA-OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Allen Hurst of the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Department of Justice, Civil Division’s Consumer Protection Branch.
Longview Men Plead Guilty to Daingerfield Bank RobberyRead the Press Release
MARSHALL, Texas – Two Longview, Texas men have pleaded guilty to their involvement in a Daingerfield Bank Robbery announced U.S. Attorney John M. Bales today.
Latarious Martez Hughes, 21, and Kenneth Duane Hooks, 23, both pleaded guilty today in U.S. Magistrate Roy Payne’s court to their involvement in the armed bank robbery of the 1st National Bank of Hughes Springs, Daingerfield Branch on February 27, 2015. A federal grand jury indicted the two men for robbery on March 18, 2015.
Hughes admitted that he entered the bank with a bandana over his face, brandished a pistol, and pointed the pistol at one of the tellers. Hughes then handed a mesh bag to the teller and instructed her to put money in the bag. The teller complied and put $53,654.00 in the bag and returned the bag to Hughes. Hughes then fled the bank, with the cash, on foot.
Hooks admitted that, following the bank robbery, he drove Hughes, in Hooks’ vehicle, from Daingerfield to Hooks’ residence in Longview, Texas, where the pair were residing together. At approximately 1:30 p.m. that afternoon, F.B.I. agents arrived at Hooks’ residence. The agents advised Hooks of the bank robbery and questioned him about it. Hooks denied that he had been in Daingerfield on the day of the robbery, which was false. Hooks claimed that he had traveled to Mount Pleasant, Texas on the morning of the robbery, which was also false. Hooks further claimed that he had not seen Hughes on the morning of the bank robbery, which was also false. Hooks admitted that he made the false statements to the F.B.I. to assist Hughes in order to hinder or prevent Hughes’ apprehension.
All but $7,566.00 of the stolen cash was recovered from Hughes and Hooks’ residence. Both men will be required to repay the missing $7,566.00 to the bank.
Hughes is facing up to twenty-five years in prison and a $250,000.00 fine. Hooks is facing up to twelve and one half years in prison and a $125,000.00 fine. A sentencing date for the pair has not been set.
This case was investigated by the Daingerfield Police Department, the Longview Police Department, and the F.B.I., Texarkana Office, and prosecuted by Assistant U.S. Attorney Jim Noble.
Wisconsin man found guilty of federal drug and Racketeering chargesRead the Press Release
LUFKIN, Texas – A 41-year-old man from Milwaukee, Wisconsin has been convicted on federal drug and money trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Henry Korvett Bams, of Milwaukee, Wisconsin, was found guilty by a jury today after a three day trial before the Honorable Michael H. Schneider. Bams was found guilty of conspiracy to possess with the intent to distribute cocaine in an amount of five kilograms or more and use of an interstate facility in aid of racketeering.
Bams and his co-defendant, Frederick Mitchell, were indicted on September 3, 2014. On Sunday, July 6, 2014, Bams and Mitchell were stopped for a traffic violation by the Texas Department of Public Safety while traveling southbound on US Highway 259 in Nacogdoches County, Texas. The officer eventually conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Following an arrest on state charges, both men were released when the charges were dismissed. In addition, the Nacogdoches County District Attorney’s office returned all but $100,000 of the seized currency to Bams and Mitchell. On July 22, 2014, Bams and Mitchell were stopped for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside hidden compartments within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account referenced in the deposit slips and seized approximately $135,015.14 in drug proceeds.
Mitchell pleaded guilty to the charges on January 7, 2015 and was sentenced to a term of imprisonment of 84 months on April 9, 2015.
Bams faces a minimum of 10 years to life in federal prison for the drug distribution violation and up to five years for the interstate transportation in aid of racketeering violation. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, Milwaukee, Wisconsin District Office, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Lauren Gaston.
Former North Texas Pharmacist Charged with Federal Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 29-year-old Granbury, Texas man has been charged with federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Christopher Esparza was indicted by a federal grand jury on Sep. 10, 2015 and charged with conspiracy to distribute and possession with intent to distribute oxycodone. Esparza appeared before U.S. Magistrate Judge Don D. Bush on Sep. 24, 205, and was ordered to be detained until trial.
According to information presented in court, from November 2012 to September 2015, Esparza was the pharmacist in charge of Trinity Pharmacy on Rosemeade Parkway in Carrollton, Texas. During this time he is alleged to have illegally sold large quantities of oxycodone to an informant. During the investigation it was revealed that a review of the pharmacy’s inventory records suggests that a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for.
If convicted, Esparza faces up to 20 years in federal prison. A trial date has not been set.
This case was investigated by the Drug Enforcement Administration – Dallas Field Division Tactical Diversion Squad, the Texas Department of Public Safety, the Texas Board of Pharmacy, and the McKinney Police Department. This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
It is important to note that 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.
East Texas Federal Grand Jury Indicts 12 in Medicare Fraud SchemeRead the Press Release
TYLER, Texas — Law enforcement officers in East Texas have arrested multiple individuals charged in a Medicare fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Sep. 16, 2015, a federal grand jury returned an 18-count indictment charging 12 individuals associated with Three Angels Home Health Inc., in a scheme to defraud Medicare by recruiting East Texas Medicare recipients who were not eligible, or did not necessitate the need, for home health care services. Law enforcement officers began arresting the defendants today.
According to the indictment, an investigation revealed that between August 2013 and November 2014, the defendants were involved in a scheme to defraud Medicare of approximately $2.5 million for home health services allegedly provided to about 250 East Texas Medicare patients. These patients were from Tyler, Jacksonville, Marshall, Nacogdoches, Lufkin, and other areas. The indictment alleges the defendants worked as recruiters for Grace Munthali and her company, Three Angels. The defendants were paid approximately $500 for each Medicare beneficiary they signed up to receive home health care services from Three Angels. To encourage the patient’s participation, the defendants offered and paid them from $100 to $200 each. Those charged in the indictment include:
Lizzy Sirls, 33, of Cuney, Texas;
Katrina Watts, 38, of Lufkin, Texas;
Pandra Wade, 55, of Lufkin, Texas;
Victoria Sterns, 40, of Lufkin, Texas;
Tammy Washington, 51, of Nacogdoches, Texas;
Nichelle Fofana, 51, of Nacogdoches, Texas;
Yulanda Nash, 44, of Nacogdoches, Texas;
Ronald Russell, 51, of San Augustine, Texas;
Sheneki McCollister, 39, of Center, Texas;
Meoshe Goodwin, 42, of Tenaha, Texas;
Latosha Gray, 26, of Jacksonville, Texas; and
Marcus Chukwu, Jr., 52, of Sugarland, Texas.
If convicted, the defendants face up to five years in federal prison for the conspiracy to commit health care fraud charge and up to five years for each of the payment of illegal remuneration charges.
Earlier this year, Munthali pleaded guilty to health care fraud charges and was sentenced to 5 years in federal prison on Sep. 22, 2015.
This case is being investigated by the U.S. Health and Human Services Office of Inspector General and the Texas Attorney General’s Medicare Fraud Control Unit with assistance from the Federal Bureau of Investigation. This case is being investigated by Special Assistant U.S. Attorney Kenneth McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Smith County Sex Offender Sentenced for Transporting Minors for ProstitutionRead the Press Release
TYLER, Texas – A 33-year-old Tyler, Texas registered sex offender has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Anthony Nelson pleaded guilty on Nov. 10, 2014, to transportation of minors and was sentenced to 276 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, in November and December of 2013, Nelson was assisted by others in transporting individuals, including two minors, in interstate commerce with the intent that the individuals engage in prostitution. During the investigation it was also revealed that Nelson was a registered sex offender having served eight years in the Texas Department of Corrections for the 2001 aggravated sexual assault of a minor in Smith County, Texas. Nelson was indicted by a federal grand jury on Mar. 26, 2014, and charged with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“Anthony Nelson is on his way to prison where he will serve a very long sentence of imprisonment,” said U.S. Attorney Bales. “He deserves every day of that lengthy term and I hope that every day he is consumed with guilt and self-recrimination. There is no more important work for the U.S. Attorney’s office than to protect and come to the aid of those who cannot protect themselves. Nelson and his ilk will always be squarely in our sights and for that reason, I commend the work of the prosecution team for putting a stop to Nelson and his outrageous conduct.”
“Our children are our most valuable resource,” said Katrina W. Berger, special agent in charge of HSI Dallas. “As such, our special agents from Homeland Security Investigations operate an active program called Operation Predator to rescue victims, and identify and pursue prosecution against child predators. We routinely work with our law enforcement partners to achieve these goals.”
This case was investigated by Homeland Security Investigations (HSI), Louisiana State Police, Bossier Parish Sheriff’s Office, Shreveport Police Department, Longview Police Department, Smith County Sheriff’s Office, Tyler Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and the Smith County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Longview, Texas Man Sentenced for Bank RobberyRead the Press Release
TYLER, Texas – A 32-year-old Longview, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christian Drew Ponce pleaded guilty on Apr. 9, 2015 to bank robbery and was sentenced to 105 months in federal prison today by U.S. District Judge Michael H. Schneider. Ponce was also ordered to pay restitution in the amount of $11,620.00.
According to information presented in court, on Aug. 11, 2014, Ponce and three co-defendants devised and executed a scheme to rob the Austin Bank, Bar K Bank, in Longview, Texas. Ponce was indicted by a federal grand jury on Aug. 27, 2014, and charged with bank robbery. Ponce was immediately taken into custody following sentencing by the U.S. Marshals.
This case was investigated by the Federal Bureau of Investigation, the Gregg County Sheriff’s Office and the Longview Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.
Baltimore Man Guilty of Child Exploitation Charges in East TexasRead the Press Release
BEAUMONT, Texas — A 36-year-old Baltimore, MD man has pleaded guilty to child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ian Christian Anderson pleaded guilty to enticement of a minor today before U.S. Magistrate Judge Zack Hawthorne.
According to information presented in court, in January 2015, Anderson began an on-line relationship with a 14-year-old girl in the Eastern District of Texas. After several weeks of communicating with the victim, Anderson traveled from his home near Baltimore, Md., to the victim's hometown in Texas, on two separate occasions in February and March 2015. On both trips Anderson engaged in sexual relations with the 14-year-old that constituted felony sexual assault under the laws of the State of Texas. Anderson also used his cellular telephone to send sexually explicit text messages to the victim in which he attempted to persuade her to engage in future similar sexual relations. Anderson was indicted by a federal grand jury on May 7, 2015.
Anderson faces a minimum of 10 years and up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the Federal Bureau of Investigation, the Lumberton Police Department and the Hardin County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Jefferson County Man Guilty of Producing Child PornographyRead the Press Release
BEAUMONT, Texas – A 20-year-old Beaumont, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Dwayne Marks, Jr. pleaded guilty to production of child pornography today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on May 21, 2014, law enforcement officers in Grand Prairie, Texas, were notified by a school nurse that a 10-year-old student had come to the nurse’s office feeling ill after receiving a photo on an instant messaging app of a male’s genitals. The student disclosed she had been communicating with the male through several instant messaging and internet video chats and that she knew him as Keith Marks from Beaumont, Texas. It was determined that Marks was a registered sex offender due to a June 3, 2013 conviction for possession of child pornography in Jefferson County, Texas. On Sep. 3, 2014, a search warrant was executed at Marks’s residence in Beaumont. During the search, law enforcement officers discovered images and a video containing child pornography. Further investigation enabled law enforcement officers to locate and identity of the 13-year-old child in those photos in the Houston area. The child confirmed Marks had coerced them into engaging in sexually explicit conduct while filming such conduct with a cellular phone. Marks was indicted by a federal grand jury on June 4, 2015.
Marks faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI), Beaumont Police Department, the Grand Prairie Police Department and the Pearland Police Department and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Marisa Miller.
North Texas Man Sentenced in Fictional Disney SchemeRead the Press Release
SHERMAN, Texas – A 35-year-old Plano, Texas man has been sentenced to federal prison for defrauding investors in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Thomas W. Lucas, Jr., was convicted on Feb. 13, 2015, of seven counts of wire fraud and one count of making a false statement to the FBI and was sentenced to 210 months in federal prison today by U.S. District Judge Amos Mazzant.
According to information presented in court, from 2006 to 2010, Lucas devised and executed an elaborate scheme to defraud approximately 280 investors out of approximately $20 million by telling them he had insider information regarding a Walt Disney resort and theme parks planned for the North Texas area. Lucas’s scheme to defraud solicited two types of investors – those that invested in options to purchase land supposedly near the Walt Disney property and those that actually purchased land supposedly near the Walt Disney property. While information presented in Court showed tens of millions of dollars more were raised based on Lucas’s fraudulent Disney information, the value of the land purchased was subtracted to determine the overall loss amount of approximately $20 million. The 65 investors that invested in options to purchase land lost all of their money invested, which was slightly over $8 million, and received no interest in land.
According to Lucas, the Disney Resort and Theme Park was originally set to be called, “The King Ranch Project,” but that changed in 2007 to “Frontier Disney DFW,” both of which were completely fabricated. Disney witnesses, including Disney’s then Chairman of Parks and Resorts and executive assistants, testified at the trial that the information presented to investors by Lucas was not authentic and that Disney never had any intentions of opening a Disney resort and theme park in north Texas at any time. Lucas pocketed approximately $450,000 from fees and commissions gleaned from the various land deals closed on his fraudulent Disney information. When confronted by the FBI about the scheme, Lucas falsely blamed the Disney information on a man he had previously met at a methadone rehabilitation clinic, who is now deceased. Lucas was indicted by a federal grand jury on Sep. 11, 2013.
Lucas was also ordered to pay restitution in the amount of $8,456,360.00 to the investors who invested in options to purchase land, and was immediately remanded to the custody of the U.S. Marshals Service.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher Eason and J. Andrew Williams.
Jefferson County Man Guilty in Carjacking DeathRead the Press Release
BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Demond Patton pleaded guilty today before U.S. Magistrate Judge Keith F. Giblin to carjacking resulting in death.
According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant. When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction. Patton and Gobert fled the laundry in their vehicle without the victim’s keys. They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle. A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him. Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys. A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting. Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind. Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings. On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting. Gobert pleaded guilty and was sentenced to seven years in state prison. Patton pleaded guilty and was sentenced to 10 years in state prison. On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.
Patton faces up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case 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.
Tyler County Man Sentenced for Lying to Federal AgentsRead the Press Release
BEAUMONT, Texas - A 53-year-old Warren, Texas man has been sentenced to prison for lying to federal agents in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Anthony Welborn Jones pleaded guilty on Feb. 25, 2014, to making a false statement and was sentenced to 12 months in federal prison today by U.S. District Judge Ron Clark. Jones was also ordered to pay restitution in the amount of $114,433.37.
According to information presented in court, Jones was hired by the non-profit organization, the Hardin County Disaster Recovery Alliance (HCDRA), as the primary residential-repair building contractor to assist victims suffering from damage caused by Hurricane Rita’s impact on the Texas Gulf Coast on Sep. 24, 2005. An investigation revealed that Jones was paid for repairs to homes which he had not worked on or had never completed. When questioned by federal agents, Jones denied having been paid for the work he had not done. Jones was indicted by a federal grand jury on Nov. 28, 2012. On Feb. 25, 2014, he admitted to making the false statements and pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Jefferson County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
BEAUMONT, Texas – A 28-year-old Guatemalan man living in Beaumont, Texas has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cesar Estuardo Hernandez-Cruz pleaded guilty to production of child pornography on Aug. 4, 2015 before U.S. District Judge Marcia Crone.
According to information presented in court, on Dec. 4, 2014, law enforcement officers were notified by a parent that they had discovered sexually explicit photographs of their child. The photographs had been taken by the child on a cellular phone and had been sent by text message to Hernandez-Cruz at his request. Hernandez-Cruz admitted to knowing the child was only 12-years-old. Hernandez-Cruz was indicted by a federal grand jury on June 3, 2015.
Hernandez-Cruz faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Final Defendant Sentenced for Heroin Transaction at Federal Prison VisitationRead the Press Release
BEAUMONT, Texas – A 31-year-old Houston woman has been sentenced for bringing prohibited drugs into a federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Janet Tapia pleaded guilty on Apr. 28, 2015, to attempting to provide heroin to a federal inmate and was sentenced to 49 months in federal prison on July 29, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, in August 2012, while monitoring inmate telephone calls and emails at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont, officials discovered that a federal prisoner, Sultan Adnan Al-Bizri, arranged for Tapia to be supplied with heroin which she would then deliver to Al-Bizri during a regular prison visitation. On Aug. 6, 2012, federal agents intercepted Tapia arriving at the prison visitation area with two balloons that contained heroin. Tapia, Al-Bizri, and three others were indicted by a federal grand jury on Oct. 1, 2014.
Al-Bizri was sentenced to 55 months in federal prison on June 23, 2015. Federal inmate Pedro Alejandro Ramirez was sentenced to 40 months in federal prison on May 14, 2015. Federal inmate Donald James Bratton, Jr., was sentenced to 37 months in federal prison on June 11, 2015, while his father, Donald James Bratton, Sr., received three years federal probation.
This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke and Special Assistant U.S. Attorney Russell James.
Lake Charles, Louisiana, Man Convicted in Nigerian Mail Fraud SchemeRead the Press Release
TYLER, Texas – A 38-year-old Lake Charles, Louisiana, man has been convicted in a Nigerian mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Heesham Broussard, also known as Sudan, was found guilty by a jury for conspiracy to commit mail fraud, two counts of mail fraud, and two counts of aggravated identity theft following a four day trial before U.S. District Judge Michael H. Schneider.
According to information presented in court, Broussard participated in a Nigerian-based mail fraud scheme that distributed counterfeit postal money orders and checks. The scheme targeted victims throughout the United States. Victims of the scheme were led to believe that they were working as mystery shoppers. Broussard served as a re-shipper or dispatcher of counterfeit postal money orders and checks. As part of the scheme, he sent packages to more than 600 intended victims and sent counterfeit items bearing a face value of more than $1 million. Broussard was indicted by a federal grand jury on Jan. 22, 2014.
Broussard’s co-conspirators, Olumide Lalemi, also known as Paul Smith, the Nigerian organizer of the scheme, and Victoria Williams, a re-shipper, have pleaded guilty to conspiracy to commit mail fraud. Lalemi and Williams will appear before Judge Schneider for sentencing. At sentencing, both defendants face up to 20 years in federal prison.
Broussard faces up to 20 years in federal prison for the conspiracy conviction, 20 years for each mail fraud conviction, and two years for each aggravated identity theft conviction. A sentencing date has not been sent.
The case was investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), and U.S. Customs and Border Protection (CBP). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and D. Ryan Locker.
Any individuals with knowledge of these or other mail fraud violations are encouraged to contact the Homeland Security Investigations Tip Line at 866-DHS-2-ICE (866-347-2423) or the U.S. Postal Inspection Service Tip Line at 877-876-2455.
Registered Sex Offender Guilty of Producing Child Pornography in Jefferson CountyRead the Press Release
BEAUMONT, Texas – A 45-year-old Galveston, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Stephen Gracia pleaded guilty to production of child pornography today before U.S. District Judge Marcia Crone.
According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location. During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims. In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children. Further investigation revealed the videos were originally produced in Jefferson County, Texas. Gracia was indicted by a federal grand jury on May 7, 2015.
Gracia faces a mandatory term of life in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office and Galveston Police Department and prosecuted by Assistant U.S. Attorney Lesley Bartow.
Former Hopkins County Teacher Indicted on Child Sexual Exploitation ViolationsRead the Press Release
TYLER, Texas – A 38-year-old former Hopkins County school teacher has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lucas R. Hill, formerly of Sulphur Springs, Texas, has been named in a three-count indictment returned by a federal grand jury on July 15, 2015 charging him with producing child pornography, enticing and coercing a minor, and transferring obscene matter to a child younger than 16 years of age.
The indictment was unsealed today and Hill is scheduled to make his initial appearance before U.S. Magistrate Judge Don D. Bush on July 22, 2015.
According to the indictment and information presented in court, earlier this year, law enforcement officials were notified by a family who had discovered that an unknown individual had created an account on the social media site, Facebook, using images of their minor son. An investigation revealed that an individual accessed the account from Hill’s residence in Sulphur Springs, Texas. At the time, Hill was a teacher with the Cumby Independent School District. Hill is alleged to have created the Facebook account under the fictitious name, “Aaron Cage,” and posed as a teenage boy by utilizing photographs of another minor male, without that minor’s knowledge or consent. From at least October 2013, Hill is alleged to have contacted a number of minor females, including children who may have attended Cumby schools, through the fictitious “Aaron Cage” Facebook page. Hill chatted with the females and persuaded them to engage in sexually explicit conduct, including producing images and videos of themselves engaged in sexual activity.
If convicted, Hill faces a minimum of 10 years and up to life in federal prison.
Any minors who may have had contact with “Aaron Cage” are urged to contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the U.S. Secret Service, the Hopkins County Sheriff’s Office, and the Sulphur Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
North Carolina Man Indicted in East Texas Fraud SchemeRead the Press Release
PLANO, Texas – A 27-year-old Morganton, NC man has been indicted in connection with an oil and gas scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Justin Spearman was indicted by a federal grand jury on July 15, 2015 and charged with wire fraud and three counts of aggravated identity theft. Spearman appeared before U.S. Magistrate Judge Don D. Bush today and will remain in federal custody pending trial. Spearman was arrested on July 6, 2015, in McKinney after he arrived in Texas to pick up a check from a victim.
According to the indictment, in June 2015, Spearman is alleged to have devised and executed a scheme to defraud another individual by filing fraudulent Assignments of Overriding Royalty Interest (ORI)s in Greeley Colorado, and attempting to do so in Cheyenne, Wyoming, that actually belonged to other persons, one of which was the owner of a royalties company located in Collin County, Texas.
If convicted, Spearman faces up to 20 years in federal prison for the wire fraud charge and two years to be served consecutively on the aggravated identity theft counts.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chris Eason.
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.
Carrollton Man Indicted on Child Exploitation ChargesRead the Press Release
PLANO, Texas — A 47-year-old Carrollton, Texas man has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Oscar Figueroa was indicted by a federal grand jury on July 15, 2015 and charged with coercion and enticement of minors.
According to the indictment and evidence introduced at a detention hearing today, on July 7, 2015, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Figueroa seeking young males for sexual activity. An undercover officer posing as a 16-year-old male responded to the ad and began communicating with Figueroa. Figueroa directed the undercover officer to the AMC theatre at the Stonebriar Centre in Frisco. The undercover officer met Figueroa at the theatre and engaged in additional conversation before Figueroa directed the undercover officer to a bathroom, where Figueroa was detained.
Figueroa was arrested on July 10, 2015 and remains in custody. If convicted, Figueroa faces a minimum of 10 years, and up to life, in federal prison.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Angelina County Individuals Arrested on Federal Drug Trafficking ChargesRead the Press Release
LUFKIN, Texas - U.S. Attorney John M. Bales announced today that five individuals are in custody following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On July 14, 2015, a combined task force of federal, state and local law enforcement agencies began executing federal arrest warrants for defendants indicted following a two year investigation into the distribution of methamphetamine in the Eastern District of Texas and elsewhere. The agencies also executed three search warrants in Diboll and one in Lufkin.
Two separate indictments were returned by a federal grand jury on July 1, 2015 charging 10 individuals with federal drug and firearms violations. Of those, five defendants were arrested on July 14th and the indictment was unsealed by a federal magistrate late that night. Those defendants in custody are:
Ruben Enriquez, 42 of Diboll, Texas;
Agustin Enriquez, 48 of Diboll, Texas;
Alonso Enriquez, 33 of Diboll, Texas;
Jorge Enriquez, 33, of Lufkin, Texas; and
Douglas Wayne Williams, 40 of Lufkin, Texas
Law enforcement officers seized eight firearms, approximately 26 pounds of methamphetamine, $20,000 cash and eight vehicles during the arrests. The remaining five defendants are being sought by law enforcement at this time.
According to the first indictment, beginning in 2013, Ruben Enriquez, Agustin Enriquez, Alonso Enriquez, and Jorge Enriquez are alleged to have conspired with each other and others to possess with the intent to distribute over 50 grams of methamphetamine. Nine of the defendants are charged with conspiracy to possess with the intent to distribute a controlled substance. One defendant is charged with possession of a firearm in furtherance of a drug trafficking crime.
According to the second indictment, on Jan. 15, 2015, Douglas Wayne Williams is alleged to have possessed with the intent to distribute methamphetamine and possessed a firearm in furtherance of a drug trafficking crime.
If convicted of the drug conspiracy charges, the defendants face a minimum of 10 years and up to life in federal prison. If convicted of the drug possession charges, Douglas Wayne Williams faces a minimum of five years and up to 40 years in federal prison. If convicted of the weapons violations, those defendants face at least 5 years in federal prison. The indictments also seek forfeiture of any property used to commit or facilitate the crimes or derived from proceeds of the conspiracy.
The cases are being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety – Criminal Investigation Division. The U.S. Marshals Service, DEA Aviation, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security – Homeland Security Investigations, Texas Department of Public Safety-Highway Patrol Division, Texas Department of Public Safety-Aircraft Division, Angelina County Constable Precinct 1 and Precinct 4, Angelina County Sheriff’s Office, Lufkin Police Department, Diboll Police Department, Houston Police Department, Conroe Police Department and the Nacogdoches County Sheriff’s Office assisted in the execution of the arrest warrants and search warrants in the Eastern District of Texas. The cases are being prosecuted by Assistant U.S. Attorney Lauren Gaston.
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.
Orange County, Texas Man Guilty of Possessing Child PornographyRead the Press Release
BEAUMONT, Texas – A 28-year-old Orange, Texas man pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Michael Swearingen pleaded guilty to possession of child pornography today before U.S. Magistrate Judge Zachary J. Hawthorn.
According to information presented in court, on Sep. 4, 2013, federal agents executed a search warrant at Swearingen’s residence in Orange, Texas, after authorities identified a computer Internet Protocol (IP) address belonging to Swearingen, possessing and offering images of child pornography via file sharing programs. A personal computer and digital storage devices were seized during the search. A review of the items revealed approximately 308 images and 25 videos of child pornography. Swearingen was indicted by a federal grand jury on Oct. 1, 2014 and charged with child exploitation violations.
Swearingen faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by Homeland Security Investigations (HSI), the Beaumont Police Department, the West Orange Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
####
Head of the Gulf Cartel Sentenced to Federal Prison for Drug TraffickingRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that the current head of the Mexican drug trafficking organization, the Gulf Cartel, or Cartel del Golfo, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas.
Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, pleaded guilty on Jan. 13, 2015 to distribution and possession with intent to distribute cocaine, conspiracy to distribute and possession with intent to distribute marijuana, and conspiracy to commit money laundering. Saenz-Tamez was sentenced to 30 years in federal prison today by U.S. District Judge Marcia A. Crone and ordered to pay a money judgment of $100 million.
According to information presented in court, a federal investigation into the large-scale trafficking of illegal drugs from Mexico into the Eastern District of Texas led to the identity of Saenz-Tamez. The investigation revealed Saenz-Tamez was responsible for the shipment of one-half ton of cocaine and 90 tons of marijuana into the Eastern District of Texas and then to locations across the nation, including Florida, Ohio, Michigan, Mississippi, Louisiana, Washington D.C., Pennsylvania, Tennessee, Maryland and Georgia. As a result of this scheme, $100 million was laundered by Saenz-Tamez and his drug trafficking organization.
Saenz-Tamez was indicted by a federal grand jury on Sep. 5, 2013 and charged with conspiracy with intent to distribute cocaine, conspiracy with intent to distribute marijuana, and conspiracy to money launder. Saenz-Tamez was arrested by federal agents on Oct. 9, 2014 while shopping in Edinburg, Texas.
This case is the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation South Park, Operation La Mano Negra, Operation Frontera Chica and Operation Iceberg. 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 joint law enforcement investigation was led by the U.S. Drug Enforcement Administration and Homeland Security Investigations, Houston HIDTA Group 33, Internal Revenue Service – Criminal Investigation, U.S. Marshals Service, Texas Department of Public Safety, Texas Attorney General’s Office, National Guard of Texas – Joint Counterdrug, Beaumont Police Department, Houston Police Department, Nacogdoches Police Department, Jefferson County Sheriff’s Office, and the Harris County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney John Craft.
######
Beaumont Federal Inmate Sentenced for Drug Transaction during VisitationRead the Press Release
BEAUMONT, Texas – A 28-year-old federal inmate has been sentenced for receiving contraband in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Sultan Adnan Al-Bizri, of Lubbock, Texas, pleaded guilty on Mar. 11, 2015, to attempting to obtain a prohibited object by a federal inmate and was sentenced to 55 months in federal prison on June 23, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, in August 2012, while monitoring inmate telephone calls and emails at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont, officials discovered Al-Bizri and others arranging for the delivery of heroin into the prison during visitation. On Aug. 6, 2012, federal agents intercepted an individual arriving at the prison visitation area with two balloons that contained heroin. Al-Bizri was indicted by a federal grand jury on Oct. 1, 2014.
Al-Bizri was convicted of being a felon in possession of a firearm in the Northern District of Texas in 2010 and sentenced to 120 months in federal prison. He must serve his 55 month sentence from this conviction following the conclusion of his current prison sentence.
This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke and Special Assistant U.S. Attorney Russell James.
Former Shelby County Hospital CFO Sentenced in EHR Incentive CaseRead the Press Release
TYLER, Texas – The former Chief Financial Officer of Shelby Regional Medical Center has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe White, 68, of Cameron, Texas, pleaded guilty on Nov. 12, 2014 to making a false statement and was sentenced to 23 months in federal prison today by U.S. District Judge Michael Schneider. White was also ordered to pay restitution in the amount of $4,483,089.09 to Medicare’s Electronic Health Record (EHR) Incentive Program.
According to information presented in court, White was the Chief Financial Officer for Shelby Regional Medical Center in Center, Texas, in addition to other hospitals owned and operated by Dr. Tariq Mahmood. White oversaw the implementation of electronic health records for the hospital and was responsible for attesting to the meaningful use of electronic health records in order to qualify to receive incentive payments under Medicare’s EHR Incentive Program. On Nov. 20, 2012, White knowingly made a false statement to Medicare falsely representing that the hospital was a meaningful user of electronic health records, when the hospital did not meet the meaningful use requirements. As a result, Shelby Regional Medical Center received $785,655.00 from Medicare. In total, hospitals owned by Mahmood were paid over $16 million under the Medicare and Medicaid EHR Incentive Programs. White was indicted by a federal grand jury on Jan. 22, 2014.
“The granting of EHR funds to individual and institutional providers was intended to modernize medical record storage and access. Unfortunately, there are individuals and institutions like Mr. White and his hospital whose only intent for EHR funds was to enrich themselves,” said Mike Fields, Special Agent in Charge of the Dallas region’s HHS – Office of Inspector General.
“I agree with SAC Fields,” said U.S. Attorney Bales. “The EHR Incentive Program was designed to enhance the delivery of excellent medical care to all Americans and especially for those citizens who live in underserved, rural areas like Shelby County. There is no doubt that Mr. White understood that purpose and yet, he intentionally decided to steal taxpayer monies and in the process, undermine and abuse this important program.”
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 is being prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Smith County Woman Sentenced for Wire FraudRead the Press Release
TYLER, Texas – A 54-year-old Tyler, Texas, woman has been sentenced for wire fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tammy Ogden pleaded guilty on Dec. 15, 2015, to wire fraud and was sentenced to 27 months in federal prison on June 10, 2015 by U.S. District Judge Leonard E. Davis. Ogden was also ordered to pay restitution in the amount of $136,237.75.
According to information presented in court, from July 2009 to November 2012, Ogden was employed by a professional cleaning and restoration company that performs water, fire, and storm damage restoration. During this time, she devised and executed a scheme to defraud her employer by offering unauthorized discounts to customers, creating fraudulent invoices and receipts, obtaining payments, and embezzling the proceeds.
This case was investigated by the Smith County Sheriff’s Office and the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Former West Brook Booster Club President Sentenced for Wire FraudRead the Press Release
BEAUMONT, Texas – A 53-year-old Beaumont man has been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. attorney John M. Bales.
William Elzy Kelley, Jr., also known as Bo Kelley, pleaded guilty on Apr. 13, 2015, to wire fraud and was sentenced to one year and one day in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Kelley was president of the West Brook High School Football Booster Club from 2012 to February 2014. During which time Kelley had access to the Booster Club’s funds, which were kept in separate checking and savings accounts. From Sep. 2013 through Feb. 2014, Kelley withdrew funds from these accounts to pay personal expenses, including, but not limited to rent payments at Stoneleigh Apartments, college tuition, and other household bills. Kelley carried out the scheme by withdrawing cash and depositing it into his personal bank account and by using the debit card and writing checks on the account for his personal use. Kelley is specifically charged with using the Booster Club debit card to make a payment to Stoneleigh Apartments in the amount of $922.42 on Dec. 3, 2013.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this or any other matter related to fraud, please call the Federal Bureau of Investigation at 409-832-8571.
This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Jefferson County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.
Beaumont Federal Inmate Sentenced for Drug Transaction during VisitationRead the Press Release
BEAUMONT, Texas – A 37-year-old federal inmate has been sentenced for receiving contraband in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Donald James Bratton, Jr., of Little Rock, AR, pleaded guilty on Jan. 6, 2015, to attempting to obtain a prohibited object by a federal inmate and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 1, 2012, Bratton, Jr., was visited by his father, Donald James Bratton, Sr., at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont. During the visitation, officers using surveillance equipment observed Bratton Jr. obtain an object from the waistband of his father. Officers responded to the visitation room and separated the Brattons. The item contained 12.25 grams of heroin. The father and son were indicted by a federal grand jury on Oct. 1, 2013. Bratton Sr. was sentenced to 3 years of probation on May 12, 2015.
Bratton Jr. was convicted of being a felon in possession of a firearm in the Western District of Arkansas on Mar. 31, 2010, and sentenced to 211 months in federal prison. He must serve his 37 month sentence from this conviction following the conclusion of his current prison sentence.
This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 45-year-old Palestine, Texas man has been sentenced to federal prison for distributing methamphetamine, announced U.S. Attorney John M. Bales today.
Edwin William Pacheco pleaded guilty on Feb. 11, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Aug. 29, 2014, Pacheco delivered approximately 3.5 grams of methamphetamine to another person in Palestine, Texas. From Aug. 29, 2014 to Oct. 24, 2014, Pacheco distributed at least 10 grams of methamphetamine in Palestine receiving about $2,500. On Sep. 3, 2014, a search warrant was executed at Pacheco’s residence located on W. Debard Street in Palestine. During the search, the officers recovered a .380 caliber pistol, loaded with four bullets, from above a ceiling tile in the hallway of the residence. The officers also recovered numerous rounds of assorted ammunition from a shed on the premises.
Pacheco is a citizen of El Salvador and will face deportation upon his release from prison.
This case was investigated by the Palestine Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 22-year-old Palestine, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Abel Estrada Jr. pleaded guilty on Feb. 19, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 33 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Oct. 25, 2013, in Palestine, Texas, Estrada Jr. delivered approximately 28 grams of methamphetamine to an individual in Palestine, Texas. The court also found that from October 1, 2013 through September 24, 2014, Estrada distributed at least 40 grams of a methamphetamine and that during that time period, Estrada Jr. and received at least $10,000.00 from the delivery of methamphetamine.
This case was investigated by the Palestine City Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant U.S. Attorney Jim Noble.
Hardin County Man Sentenced for Attempting to Entice a ChildRead the Press Release
BEAUMONT, Texas – A 47-year-old Kountze, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Raymond Edward Russ, Jr., pleaded guilty on Oct. 17, 2014, to coercion and enticement involving the sexual exploitation of a child and was sentenced to 120 months in federal prison on June 2, 2015 by U.S. District Judge Thad Heartfield.
According to information presented in court, on May 2, 2014, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Russ seeking a young female for sexual activity. An undercover officer posing as a 13-year-old girl named Ashley contacted Russ and began corresponding online. During the next 20 days, Russ and “Ashley” engaged in email conversations about “Ashley’s” sexual experiences and that she was only 13. Russ also provided a photo of himself to Ashley. On May 20, 2014, Russ began aggressively pursuing Ashley and attempting to entice her to meet for sexual activity. Russ arranged to pick Ashley up from an apartment complex on Folsom in Beaumont. Russ arrived at the apartment complex and was detained. Russ was indicted by a federal grand jury on June 24, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Michelle Englade.
Plano Man Sentenced for Pipeline Bombing IncidentRead the Press Release
PLANO, Texas - A 35-year-old Plano, Texas man has been sentenced to 20 years in federal prison in relation to an incident involving an explosive device in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Anson Chi pleaded guilty on June 3, 2013, to possession of an unregistered firearm or explosive device and malicious use of explosive material and was sentenced to 240 months in federal prison today by U.S. District Judge Richard A. Schell. The Court applied a terrorism enhancement and did an upward departure of the sentencing guidelines. This enhancement classifies Chi as a domestic terrorist.
According to information presented in court, on June 18, 2012, Chi possessed a destructive device or explosive that was not registered in the National Firearms Registration and Transfer Record. The explosive device was manufactured by Chi through the combination of chemicals to create methyl nitrate. Methyl nitrate is a highly volatile explosive capable of inflicting significant damage to persons or property. Chi admitted to obtaining the chemical formula for methyl nitrate and documents related to explosives from the Internet. A superseding indictment was returned by a federal grand jury on Feb. 14, 2013, charging Chi with these violations.
Chi also admitted to intentionally damaging an Atmos Energy pipeline by attaching the explosive device to the pipeline and igniting it. Chi was ordered to pay restitution to Atmos in the amount of $28,127.77.
This case was investigated by the FBI, the FBI-Joint Terrorism Task Force, the Plano Police Department, and the ATF and prosecuted by Assistant U.S. Attorney M. Andrew Stover.
North Texas Man Convicted in Foreign Currency Trading SchemeRead the Press Release
SHERMAN, Texas – A 47-year-old former resident of Frisco, Texas, was found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frank Edwin Pate was found guilty by a jury of two counts of wire fraud and one count of mail fraud following a five-day trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Pate perpetrated a fraud scheme on seven individuals who invested money with Pate for the purpose of trading foreign currency on their behalf. The evidence established that seven investors gave Pate a total of over $2.6 million over a several year period for the purpose of currency trading. Instead of using the money for foreign currency trading, Pate spent a large portion of the money for his own personal expenses. Pate was indicted by a federal grand jury on Aug. 13, 2014.
Pate faces up to 20 years in federal prison on each conviction. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys J. Andrew Williams and Christopher Eason.
Sherman Jury Finds Pakistani National Guilty of International Drug Conspiracy and Money Laundering CrimesRead the Press Release
SHERMAN — A 49-year-old man from Karachi, Pakistan, has been found guilty of being a member of a large-scale drug trafficking organization responsible for illegally importing and distributing millions of counterfeit, adulterated, and misbranded pills in the Eastern District of Texas and throughout the United States, U.S. Attorney John M. Bales announced.
On May 14, 2015, a federal jury in Sherman, Texas, convicted Muhammad Aijaz Sarfraz of conspiracy to manufacture and distribute controlled substances and international money laundering conspiracy following a four-day trial before U.S. District Judge Amos Mazzant. Today, the Court entered a Preliminary Order of Forfeiture against Sarfraz, awarding the government a $38,967,372 money judgment based on a portion of the drug proceeds generated by the criminal enterprise.
According to information presented in court, from approximately March 2009 until Sarfraz’s arrest in April 2012, Sarfraz and his co-conspirators operated numerous illegal websites through which they distributed millions of illicit Schedule II, III, and IV controlled substances to Internet customers throughout the United States. Those pills included such popular prescription medications as OxyContin, Percocet, Adderall, Ritalin, Hydrocodone, Xanax, Valium, Ambien, and others. The counterfeit drugs were generally manufactured in China, Singapore, Malaysia, India, Pakistan, and Hong Kong. The pills, which were made to look like authentic prescription medications approved for use in the U.S. when validly prescribed by a physician, often contained incorrect active pharmaceutical ingredients or the wrong quantity and dosage strength of those substances. No physicians or medical professionals of any kind were involved at any stage of the drug distribution process. Anyone with access to the Internet, a credit card and a physical mailing address could order drugs from this criminal organization without a prescription or limits on quantity desired.
Key members of the group operated in Pakistan, India, the United Arab Emirates, and other foreign countries. Bulk pill shipments containing 25,000 to 50,000 or more pills at a time were shipped to ground operatives living in the U.S., who would re-ship the pills to co-conspirators operating in other parts of the country and fulfill Internet drug orders by drop-shipping individual pill bottles to Internet customers. Evidence presented at trial established that the drug trafficking organization was capable of distributing upwards of 1 million pills or more per month on average. This is believed to be one of the largest cases of its kind ever prosecuted in the United States in terms of pill quantities involved.
The criminal enterprise laundered money by moving drug proceeds from the United States to various foreign countries for the purpose of promoting the unlawful drug operation. Sarfraz and other conspirators also caused money to be moved back into the U.S. through foreign banks and shell companies for the purpose of funding U.S. operations by, for example, purchasing bulk pill bottles, postage and other shipping supplies, as well as paying ground operatives. It is estimated that the criminal enterprise may have generated as much as $100 million or more in proceeds between 2009 and 2012.
Several low-level ground operatives have been successfully prosecuted in the Eastern District of Texas and elsewhere over the past three years, but Sarfraz is the first upper-level member of the group to be apprehended and prosecuted. Sarfraz faces up to 20 years in federal prison on each of the two drug conspiracy and money laundering conspiracy charges for which he was convicted. A sentencing date has not yet been set.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigations Division, and was prosecuted by Assistant U.S. Attorneys Stevan Buys and Will Tatum.
Vidor Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 66-year-old Hamond, Indiana, resident, who had lived in Vidor, Texas, has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Raymond Gajewski pleaded guilty on Dec. 4, 2014, to possession of child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, in April 2012, law enforcement officers were notified by a citizen of a computer which belonged to Gajewski which contained images of child pornography. Gajewski had left the computer in Vidor after relocating to Indiana. Gajewski admitted to possessing the images on the computer and to abandoning it in Vidor. A forensic analysis of the computer revealed approximately 300 images, including two videos, of child pornography. Gajewski was indicted by a federal grand jury on Aug. 6, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Collin County Woman Sentenced in Plano ISD Embezzlement SchemeRead the Press Release
PLANO, Texas – A 68-year-old Prosper, Texas woman has been sentenced to federal prison in connection with her role in a conspiracy to embezzle millions from the Plano Independent School District, announced U.S. Attorney John M. Bales today.
Carol Ann LaRue pleaded guilty on June 24, 2014, to conspiracy to commit federal program fraud and was sentenced to 30 months in federal prison today by U.S. District Richard Schell. LaRue was also ordered to pay restitution in the amount of $1,252,556 to Plano ISD.
According to information presented in court, LaRue owned and operated Fire Systems Specialists (FSS) and Digital Security Solutions (DSS), companies supposedly in the business of maintaining fire safety systems and security systems. Between May 2011 and December 2013, LaRue conspired with Plano Independent School District employee, Kris Wilson Gentz, to defraud Plano ISD by submitting fraudulent invoices for services that were not rendered and products that were not provided. When payment was made to FSS and DSS, LaRue and Gentz would split the profits between themselves. As a result of the fraudulent scheme, LaRue is responsible for losses to Plano ISD of $1.2 million and Gentz was responsible for losses of $2.6 million. Gentz pleaded guilty to the same charges and was sentenced to 51 months in federal prison on Apr. 16, 2015.
This case was investigated by the Federal Bureau of Investigation and the Department of Education and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
Jefferson County Man Indicted on Child Exploitation ChargesRead the Press Release
BEAUMONT, Texas — A 57-year-old Beaumont, Texas man has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Gary Allen George was indicted by a federal grand jury on May 6, 2015 and charged with receiving child pornography, distributing child pornography and possession of child pornography.
According to the indictment, an investigation revealed that from Aug. 6, 2014 to Sep. 18, 2014, George is alleged to have received, distributed and possessed files containing images or videos of child pornography on his computer. At least one of the images involved a minor under the age of 12-years-old engaging in sexually explicit conduct.
George faces a minimum of 5 years, and up to 20 years, in federal prison if convicted.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Baltimore Man Indicted on Child Exploitation Charges in East TexasRead the Press Release
BEAUMONT, Texas — A 35-year-old Baltimore, MD man has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ian Christian Anderson was indicted by a federal grand jury on May 7, 2015 and charged with two counts of enticement of a minor and two counts of traveling with intent to engage in illicit sexual conduct.
According to the indictment, on Feb. 15, 2015 and Mar. 16, 2015, Anderson is alleged to have traveled from Maryland to Lumberton, Texas to engage in sexual conduct with a person he knew to be under the age of 18.
Nelson faces a minimum of 10 years in federal prison if convicted of any of the charges.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the Federal Bureau of Investigation the Lumberton Police Department, and the Hardin County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Nigerian Witch Doctor Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 58-year-old Lafayette, LA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Omigie, a Nigerian native and naturalized U.S. citizen, pleaded guilty on Oct. 28, 2014 to conspiracy to distribute cocaine was sentenced to 168 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Omigie presented himself to drug traffickers as a witch doctor and was paid hundreds of thousands of dollars to provide supernatural protection from law enforcement. Omigie was consulted by drug traffickers in the Cesar Barrera and David Bazan drug trafficking organizations on a daily basis and before, during and after each drug transaction. The supernatural protections rendered involved card readings, massages (by Omigie) with magic ointments, cutting of the skin with razor blades and the topical application of magic powder, the use of magic amulets, magic belts, magic coconuts and magic rocks (that those being treated were required to talk to). Drug traffickers were required by Omigie to go without bathing and intercourse for a period of time following magic treatments so as not to diminish the potency of those ministrations. Magic “law stay away” candles were also burned in order to protect drug traffickers from law enforcement detection. Omigie would regularly return to Africa, at drug traffickers’ expense, to re-new his supernatural powers. Omigie was indicted by a federal grand jury on Sep. 5, 2013.
Cesar Barrera and David Bazan have since both pleaded guilty to schemes involving the trafficking of more than 1,000 kilograms of cocaine each.
This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney John Craft.
Jasper County Man Sentenced for Distributing CocaineRead the Press Release
BEAUMONT, Texas – A 28-year-old Jasper, Texas man has been sentenced to federal prison for drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shane Dwayne Hadnot pleaded guilty on Dec. 10, 2014, to possession with intent to distribute cocaine and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Nov. 7, 2013, Alfred Wright, of Jasper, Texas, was reported missing by his family after his truck broke down in rural Sabine County, Texas. Articles of Wright’s clothing were found on private land, approximately a mile from where Wright was last seen. After searchers initially failed to locate Wright, his body was found on Nov. 25, 2013 in brush near where his clothing had been found. An investigation into the cause of Wright’s disappearance and death revealed his involvement with Shane Hadnot. Phone records, witness statements, and drug evidence located during the search of Shane Hadnot’s car, indicated that Hadnot was selling cocaine to Alfred Wright.
During the two-day period before Wright’s death, Hadnot and Wright exchanged 20 text messages. The indictment alleges that on Nov. 7, 2013, Wright sent a text message to Hadnot at 12:36 pm requesting to purchase cocaine and other illegal narcotics from Hadnot. Wright went missing approximately five hours later. An autopsy was performed on Wright’s body and toxicology testing revealed that Wright’s blood contained cocaine, methamphetamine and Xanax. The final autopsy report, and other experts in the fields of pathology, toxicology, and anthropology concluded that Wright’s cause of death was an accident due to combined drug intoxication. Hadnot was indicted by a federal grand jury on Aug. 6, 2014 and charged with drug trafficking violations.
This case was investigated by the Texas Rangers, the Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorneys Brit Featherston and John B. Ross.
####
Princeton Man Receives Prison Sentence in MultiMillion Dollar Plano ISD Embezzlement SchemeRead the Press Release
PLANO, TX – Kris Wilson Gentz, 59, has been sentenced to federal prison for his role in a conspiracy to embezzle over $2.5 million from the Plano Independent School District, announced U.S. Attorney John M. Bales.
Gentz was sentenced to 51 months in prison yesterday during a court appearance before U.S. District Judge Thad Heartfield. Gentz had pleaded guilty to Conspiracy to Commit Federal Program Theft on April 1, 2014. In addition to his prison sentence, Gentz was also ordered to pay restitution of over $2.5 million dollars.
According to information presented in court, Plano ISD employed Gentz as a Manager and Security and Fire Systems Security Support Specialist from approximately August 2001 through December 2013. Gentz was responsible for ensuring that Plano ISD schools were equipped with fire and security alarms that were properly maintained. Gentz and two other individuals set up two companies called Fire System Specialists (FSS) and Digital Security Solutions (DSS) that were allegedly in the business of maintaining fire safety systems and security systems.
Between 2004 and December 2013, Gentz and his co-conspirators generated fraudulent FSS and DSS invoices and submitted them to Plano ISD for payment. Gentz, in his Plano ISD management role, corruptly approved these invoices and the services and products referenced on the invoices were never provided or delivered. When payment was made to FSS and DSS, Gentz and his co-conspirators would split the profits between themselves. Over the course of the scheme, Gentz and his co-conspirators obtained over $2,500,000 from Plano ISD. In pleading guilty, Gentz acknowledged that he had abused the position of trust that Plano ISD had given him.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Chris Eason and Andy Williams.
#######