Eastern District of Texas

Department of Justice
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TYLER, Texas - A 54-year-old McKinney, Texas photographer has been sentenced to federal prison for sexual exploitation of children in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Todd Fleming pleaded guilty on October 2, 2014, to sexual exploitation of children and was sentenced to 240 months in federal prison today by U.S. District Judge Michael H. Schneider.  Fleming will be required to register as a sex offender and serve a life term of supervised release upon his release from federal prison.

            Fleming was indicted by a federal grand jury on April 17, 2013, and charged with twenty-four counts of sexual exploitation of children and one count of possession of materials involving the sexual exploitation of minors.

            According to information presented in court, between 1999 and 2007, Fleming, knowingly employed, used, persuaded, induced, enticed, and coerced eight minor females to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
“Sexually exploiting children is a crime that has traumatic effects on the most vulnerable members of our society," said Katherine Greer, acting Special Agent in Charge of Homeland Security Investigations (HSI) in Dallas.  “HSI will continue to work aggressively with our law enforcement partners to identify and apprehend individuals who sexually exploit our children and deprive them of their innocence.
“Today, Todd Fleming received a sentence that was both fair and appropriately severe,” said U.S. Attorney Bales.  “I sincerely hope that the punishment, and the shame, experienced by this defendant will serve as a warning to others attempting to victimize our children.  We will continue to have zero tolerance for child pornographers in the Eastern District of Texas.”

The investigation leading to the charges was conducted by agents from the U.S. Department of Homeland Security - Homeland Security Investigations (DHS-HSI) and Texas Department of Public Safety - Criminal Investigations Division (DPS-CID).  Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.

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TYLER, Texas - U.S. Attorney John M. Bales announced today that a Longview man has been sentenced to federal prison for his involvement in a drug conspiracy in the Eastern District of Texas.

            Antonio Cortez Gonzales, 35, of Longview, Texas, was sentenced to 136 months in federal prison today by United States District Judge Michael H. Schneider.  Gonzales had entered a guilty plea on October 2, 2014, on charges he conspired with others to distribute cocaine and marijuana.

            According to information presented in court, Gonzales, along with his co-defendants, distributed drugs including cocaine and marijuana in the Longview, Texas area.  Drugs were shipped from an individual in Houston, Texas to Gonzales’ residence in Longview, where he then distributed the drugs to other people. 

            Gonzales was indicted on August 28, 2013.  As part of his sentence, Gonzales was also ordered to forfeit a money judgment in the amount of $336,000, a residence in Longview, Texas, a vehicle, three firearms and ammunition.

            This case was investigated by the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI) and the Texas Department of Public Safety.  The case is being prosecuted by Assistant United States Attorney Mary Ann Cozby.

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ID Theft: IRS Efforts on Identity Theft: English | Spanish | ASL
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IR-2015-37, March 3, 2015
WASHINGTON — Continuing its enforcement push against refund fraud and identity theft, the Internal Revenue Service today announced the Top Ten Identity Theft Prosecutions for Fiscal Year 2014 (FY14).  The ongoing efforts to bring identity thieves to justice remains a significant priority as part of the IRS’s comprehensive identity theft strategy focusing on preventing, detecting and resolving identity theft cases as soon as possible.
“Identity theft is a crime that carries significant consequences, and these cases send a warning to criminals,” said Richard Weber, Chief, IRS-Criminal Investigation. “Our top 10 cases represent the seriousness of these crimes and the magnitude of the consequences that will be faced by those who victimize honest taxpayers and steal from hard-working Americans.”

Learn more about identity theft and what the IRS is doing to combat it at IRS.gov/identitytheft. You can also read IRS Fact Sheet 2015-1, IRS Combats Identity Theft and Refund Fraud on Many Fronts, and IRS Fact Sheet 2015-2, Identity Theft Information for Taxpayers and Victims.

The summary of the following 10 identity theft cases is based on public information available in court records: Top Ten Identity Theft Cases

1. Couple Sentenced for False Tax Refund Conspiracy -
On April 24, 2014, in Charlotte, North Carolina, Senita Birt Dill and Ronald Jeremy Knowles, were sentenced to 324 and 70 months in prison, respectively. Both were also ordered to pay $3,978,211 in restitution to the IRS. Dill and Knowles pleaded guilty to false claims of conspiracy and access device fraud. Dill also pleaded guilty to aggravated identity theft. Dill and Knowles used fraudulently obtained personal identification information (including names, dates of birth and social security numbers) to file false tax returns claiming tax refunds. Dill and Knowles used neighboring addresses to fill out the fraudulent tax returns and checked the homes’ mailboxes frequently to retrieve the fraudulent refund checks upon delivery. The defendants also used addresses in Greenville and Greer, S.C., which belonged to Knowles’ businesses. Dill and Knowles filed over 1,000 false tax returns using the fraudulently obtained personal identification information.

2. Georgia Man Sentenced for Tax Fraud and Identity Theft -
On Aug. 25, 2014, in Atlanta, Georgia, Mauricio Warner was sentenced to 240 months, three years of supervised release, ordered to pay $5,041,869 in restitution and forfeiture of bank accounts that contained $4,185,455. Warner was convicted on wire fraud, aggravated identity theft, filing false claims, and money laundering. Warner filed over 5,000 false tax returns using the names and social security numbers of unsuspecting victims that were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and social security numbers. In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information.

3.  Dallas Men Sentenced for Role in Massive Stolen Identity Refund Fraud Scheme -
On May 15, 2014, in Dallas Texas, Ogiesoba City Osula was sentenced to 210 months in prison and ordered to pay $15.9 million in restitution. Osula was convicted on conspiracy to commit wire fraud, mail fraud and bank fraud; presenting fraudulent claims upon the U.S.; access device fraud and aiding and abetting; and aggravated identity theft and aiding and abetting. Previously sentenced were co-defendants: George Ojonugwa, sentenced to 174 months and ordered to pay $15,979,187 in restitution; Eseos Igiebor, sentenced to 96 months and ordered to pay $9,660,658 in restitution; Ebenezer Legbedion, sentenced to 40 months and ordered to pay more than $1 million in restitution; and Evelyn Nyaboke Haley sentenced to 60 months and ordered to pay approximately $5.7 million in restitution.  The defendants conspired to defraud the United States by using stolen identity information and false information to create and electronically file false tax returns to claim refunds. On Nov. 8, 2011, police in a Cincinnati suburb questioned Osula and Ojonugwa, who were in a parked car.  When the vehicle was searched, police found more than $300,000 in cash and money orders and numerous debit cards.  During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.

4. Floridian Sentenced in Identity Theft Tax Fraud and Social Security Schemes -
On Sept. 17, 2014, in Miami, Florida, Kevin Cimeus, was sentenced to 156 months in prison and three years of supervised release. Cimeus was convicted of conspiracy to steal government property or money, theft of government money or property, access device theft, and aggravated identity theft.  Federal agents found over 2,400 social security numbers and names of real people stored on thumb drives, laptop computers, iPad, and Cimeus’ email account at Cimeus’ residence. Cimeus recruited Miami Dade College students to allow him to use their bank accounts to receive fraudulently obtained tax refunds. Cimeus also used his own bank accounts to receive fraudulently obtained tax refunds. Cimeus filed at least one thousand tax returns from two IP addresses. He also used the two IP addresses to access the Social Security Administration’s web site and create online profiles for social security recipients in order to re-route the victims’ social security payments to other accounts.

5. Ohio Man Sentenced for Participation in $3.5 Million Identity Theft Scam -
On Aug. 21, 2014, in Columbus, Ohio, Roma L. Sims was sentenced to 100 months in prison, three years of supervised release, and ordered to pay $3,517,534 in restitution to the IRS. Sims pleaded guilty to aggravated identity theft, wire fraud and conspiring to commit identity theft in a scheme to defraud the IRS. Sims advertised through various means in order to collect personal identification information from low-income or unemployed single parents with children. After tricking the innocent individuals who responded into providing their personal identification information, Sims prepared and filed false income tax returns in their names. Sims also obtained additional personal identification information by conspiring with Robert Earthman, who had access to the Kentucky child support enforcement database, which contained personal identification information of single parents with children who were recipients of child support. In total, Sims was responsible for the preparation and filing of approximately 977 income tax returns for the 2010 - 2012 tax years. Samantha C. Towns was sentenced to three years of probation and ordered to pay $1,312,513 in restitution to the IRS. Robert S. Earthman was sentenced to 24 months in prison, three years of supervised release and was ordered to pay $1,312,513 in restitution to the IRS.

6. New York Tax Preparer Sentenced for Filing False Tax Returns and Aggravated Identity Theft
On April 24, 2014, Mahamadou Daffe, a tax preparer in Queens, N.Y., was sentenced to 102 months in prison and three years of supervised release. Daffe was found guilty of conspiracy to steal government funds, theft of government funds, conspiracy to file false claims, wire fraud, and aggravated identity theft in connection with the preparation and filing of nearly 1,000 false income tax returns submitted online using stolen identities.

7. Alabama Man Sentenced for Scheme Using Prisoner Identities to Obtain False Tax Refunds
On April 29, 2014, in Montgomery, Ala., Harvey James was sentenced to 110 months in prison, three years of supervised release and ordered to pay $618,042 in restitution. James pleaded guilty to mail fraud and aggravated identity theft. James and his sister, Jacqueline Slaton, obtained stolen identities from various individuals, including one person who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file federal and state tax returns that claimed fraudulent refunds.  Vernon Harrison, a U.S. Postal Service employee, provided James with addresses from his postal route, which were used as mailing addresses for the fraudulent prepaid debit cards and state tax refund checks. In total, James filed over 1,000 federal and state income tax returns that claimed over $1 million in fraudulent tax refunds. Slaton was sentenced to 70 months in prison and Harrison was sentenced to 111 months in prison.

8. Several Sentenced in $19 Million Tax Fraud Conspiracy -
On December 30, 2013, in Anchorage, Alaska, Joel Santana-Pierna and Abel Santana-Pierna, citizens of the Dominican Republic residing in Alaska, were sentenced to 135 months and 72 months in prison, respectively. In addition, they were ordered to pay $559,755 in restitution to the IRS and agreed to forfeit approximately $130,000 obtained as part of their drug trafficking activities.  The brothers pleaded guilty to conspiracy to distribute cocaine and conspiracy to defraud the government. The Santana-Pierna brothers conspired to use more than 3,000 stolen Puerto Rican identities to file false income tax returns and obtain large income tax refunds to which they were not entitled. In total, eleven individuals have been sentenced in this scheme with sentencings ranging from probation to 135 months in prison.

9. Woman Sentenced for Tax Fraud and Aggravated Identity Theft -
On Oct. 22, 2014, in Orlando, Florida, Tanya Fox was sentenced to 240 months in prison for conspiracy to defraud the federal government, wire fraud, theft of government property, and aggravated identity theft. Fox was also ordered to pay a money judgment in the amount of $4,055,735. On July 24, 2014, Fox was found guilty by a jury of one count of conspiracy, five counts of wire fraud, ten counts of theft of government property, and ten counts of aggravated identity theft. According to court documents, Fox orchestrated a scheme to file fraudulent tax returns using identities that had been stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and to have the tax refunds deposited into those accounts. She then worked with those individuals to withdraw the funds and she spent the money on several luxury and other vehicles, cosmetic surgery and to open a restaurant in the Orlando area. Four others have been sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox, with sentencing’s ranging from five years to two years and six months in prison.   

10. Bogus Charity Operator Sentenced for ID Theft and Wire Fraud Scheme -
On June 12, 2014, in Columbus, Ohio, Jonathan Webster was sentenced to 108 months in prison, three years of supervised release and ordered to pay $1,457,936 in restitution. Webster pleaded guilty to wire fraud and aggravated identity theft.  Webster purchased advertising in newspapers representing himself as a charity seeking to provide financial assistance to others. Webster set up an online website where individuals responding to the advertisements could provide their names and social security numbers. Webster and a co-conspirator electronically filed more than 500 false income tax returns using the names and social security numbers of the individuals.

Statistical Information
In fiscal year 2014, the IRS initiated 1,063 identity theft related investigations. Criminal Investigation enforcement efforts resulted in 748 sentencings as compared to 438 in FY 2013, an increase of 75 percent. The incarceration rate rose 7.1 percent to 87.7 percent. The courts also imposed more jail time in 2014, with the average months of those being sentenced rising to 43 months as compared to 38 months in FY 2013. The longest sentence was 27 years.

Enforcement Efforts
During FY 2014, Criminal Investigation dedicated significant time and resources to bringing down identity thieves attempting to defraud the federal government.

The nationwide Law Enforcement Assistance Program provides for the disclosure of federal tax return information associated with the accounts of known and suspected victims of identity theft with the express written consent of those victims. There are now more than 755 state/local law enforcement agencies from 47 states participating. Since the start of the program, more than 6,776 requests were received from state and local law enforcement agencies.

The Identity Theft Clearinghouse (ITC) continues to develop and refer identity theft refund fraud schemes to CI Field Offices for investigation. Since its inception in FY 2012, it has received over 7,600 individual identity theft leads. These leads involved approximately 1.47 million returns with over $6.8 billion in refunds claimed. 

CI continues to be the lead agency that investigates identity theft and is actively involved in more than 78 multi-regional task forces or working groups including state, local and federal law enforcement agencies solely focusing on identity theft.  CI has one of the highest conviction rates in all of federal law enforcement -- at 93.4% -- and is the only federal law enforcement agency with jurisdiction over federal tax crimes.  CI is routinely called upon to be the lead financial investigative agency on a wide variety of financial crimes including international tax evasion, identity theft and transnational organized crime.

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TYLER, Texas - U.S. Attorney John M. Bales announced today that a Flint man has been sentenced to federal prison for his involvement in a drug conspiracy in the Eastern District of Texas.

            Isaac Dion Smith, also known as “Ike”, 34, of Flint, Texas, was sentenced to 144 months in prison today by United States District Judge Michael H. Schneider.  Smith had entered a guilty plea on October 14, 2014, on charges he conspired with others to distribute methamphetamine and heroin.

            According to information presented in court, Smith, along with his co-defendants, distributed drugs including methamphetamine and heroin in the north Tyler, Texas area.  Firearms were also bartered and sold by the group.  The group was supplied by sources primarily in the Dallas, Texas area. 

            Smith and 12 co-defendants were indicted on a 23-count indictment by a federal grand jury on April 23, 2014.  To date, his co-defendants have been sentenced as follows:

            Desirae Dewberry, 34, of Longview, was sentenced on January 16, 2015, to 60 months; Deidra Duran, 22, of Mineola, was sentenced on January 16, 2015, to 32 months; Jacob Durst, also known as "Bubba" and "Chucky", 23, of Tyler, was sentenced on January 22, 2015, to 72 months; Victor Grant, also known as "Vic", 23, of Tyler, was sentenced on December 3, 2014, to 66 months; Keith Kimbrough, 47, of Huntsville, Alabama, was sentenced on January 16, 2015, to 24 months; Hannah McCartney Manziel, 25, of Lindale, was sentenced on January 15, 2015, to 32 months; Sabrina Tutt, also known as "Taylor Breeze" and "Breezy", 35, of Tennessee Colony, was sentenced on January 16, 2015, to 32 months; and Cedric Williams, also known as "Ced", 34, of Tyler, was sentenced on January 15, 2015, to 36 months.

Additionally, Smith and codefendants agreed to forfeit multiple firearms and money judgments totaling $18,000.00 to the United States.

            This case was investigated by the Smith County Sheriff’s Department, Tyler Police Department, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco and Firearms (ATF), and it was prosecuted by Assistant United States Attorney Bill Baldwin.

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BEAUMONT, Texas – A 32-year-old Orange, Texas man has been sentenced to 10 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Jason Ryan Bickham pleaded guilty on Sep. 17, 2014 to possession of child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, law enforcement authorities were alerted by a citizen that Bickham had images containing child pornography on his cellular phone.  Bickham provided officers consent to search the phone and a forensic analysis revealed multiple images and videos of child pornography.  Bickham was indicted by a federal grand jury on June 4, 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Orange Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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TYLER, Texas –  U.S. Attorney John M. Bales announced today that a former executive has been indicted for making false declarations before court in a civil trade secrets case in the Eastern District of Texas.

                Albert Davis, 54, formerly of Richardson, Texas, was arrested on Feb. 19, 2015 in Lewisville, Texas on a federal arrest warrant issued by the Eastern District of Texas and the Western District of Missouri.  Davis was recently charged in Missouri for his role in a fraud scheme in which a Dallas-area hospital paid more than $1 million to purchase an MRI machine from Davis and co-conspirators who impersonated representatives of Kansas City-based Cerner Corporation.  Davis will have a detention hearing on Feb. 25, 2015.

                Davis was indicted on Feb. 19, 2015 in Tyler on three counts of false declaration before court.  The indictment alleges that on May 5, 2014, Davis, while under oath as a witness in a case being tried before the U.S. District Court for the Eastern District of Texas entitled, LBDS Holding Company, LLC vs. ISOL Technology, Inc. et al., Docket No. 6:11-CV-428, knowingly made false material declarations.

                If convicted, Davis faces up to five years in federal prison for each count.

                The investigation leading to the charges was conducted by agents from the Federal Bureau of Investigation and the U.S. Attorney's Office for the Western District of Missouri.  Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.

It is important to note that a grand jury indictment is not evidence of guilt.

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BEAUMONT, Texas – A 27-year-old California, Maryland 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.

Felix Alexandro Pinto, Jr., pleaded guilty on Oct. 10, 2014, to transporting a minor with intent to engage in criminal sexual activity and was sentenced to 144 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, on May 25, 2011, Pinto was pulled over for a traffic violation in Harrison County, Mississippi.  During the stop, the deputy noticed the passengers, a male and female, appeared extremely nervous.  Pinto advised the deputy that he had driven from Maryland to Houston and was returning to Maryland.  The vehicle had been rented by Pinto in Maryland at 8:00 am the day before, approximately 30 hours before the traffic stop.  While interviewing the female passenger, the deputy learned she was a 14-year-old runaway from Liberty County, Texas.  As she was being transported back to Texas, the girl reported that Pinto had sexually assaulted her.  This was confirmed by a sexual assault nurse’s examination (SANE) in Beaumont, Texas.  Further investigation revealed Pinto met the girl through a social media website.  They communicated by the internet and cellular telephone networks for about two months before Pinto drove to Liberty County and picked the girl up from school on May 25, 2011.  During this time, Pinto sent the girl sexually explicit photos of himself and asked her to send similar photos of herself to him.  At one point the girl asked Pinto if her only being 14 years old would be a problem and he replied it would not.  A forensic examination of the girl’s cell phone confirmed the conversations and photos.

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, Harrison County, Mississippi, Sheriff’s Office, and Liberty County, Texas, Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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BEAUMONT, Texas – A 55-year-old Plano, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
Kevin G. White pleaded guilty on Dec. 11, 2013, to committing mail fraud in connection with a commodity trading fraud scheme and was sentenced to 97 months in federal prison on Feb. 18, 2015 by U.S. District Judge Marcia A. Crone.  White was also ordered to pay restitution in the amount of $3,926,870.

According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading.  RFF had its offices in Plano.  In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence.  RFF received investments totaling over $7.4 million.  White admitted to using approximately $1.8 million of investor funds for non-investment purposes.  The loss to investors was approximately $4 million.

White was ordered to surrender to the Bureau of Prisons on Apr. 6, 2015 to begin his sentence.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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SHERMAN, Texas – A 61-year-old Colleyville, Texas man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

James Donald Cagle pleaded guilty on Nov. 19, 2013 to conspiracy to engage in monetary transactions in property derived from the sale of cocaine and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia A. Crone.  Cagle was also ordered to pay a fine of $10,000.

According to information presented in court, from May 19, 2008, through April 28, 2010, Cagle knowingly conspired with Jose Vasquez, Sr., a large-scale distributer of cocaine in Texas.  Knowing that Vasquez was involved in some form of illegal activity, Cagle financed and purchased real and personal property in Cagle's name or in the names of Vasquez' family members on behalf of Vasquez.  Cagle received payments for these properties from Vasquez in cash that had been transported from Richardson, Texas to Cagle in Colleyville, Texas.

Vasquez was indicted by a federal grand jury in Dec. 2010 and pleaded guilty to conspiracy to possess with intent to distribute cocaine in Feb. 2013.  He was sentenced to 147 months in federal prison by Judge Crone on Nov. 19, 2014.

This case was investigated by the U.S. Drug Enforcement Administration and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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BEAUMONT, Texas – Two Bridge City, Texas brothers have pleaded guilty to federal wildlife violations, announced U.S. Attorney John M. Bales today.

Cory James Moseley, 23, and Cade Ryan Moseley, 18, pleaded guilty to taking a marine mammal in United States waters on Feb. 17, 2015, before U.S. Magistrate Judge Keith F. Giblin.

            According to information presented in court, on July 26, 2014, Cory Moseley and Cade Moseley were fishing on Cow Bayou near Orangefield, Texas, when they spotted two bottlenose dolphins stranded in the bayou.  They shot at the dolphins with a compound bow and Cade Moseley hit one of the dolphins.  The dolphin swam away but was mortally wounded.  Wildlife agents were notified by a fisherman that there was a dead dolphin in the bayou.  The deceased dolphin was recovered and an investigation resulted in federal charges against the Moseley brothers.  The second dolphin was located in the bayou and rescued by wildlife agents and SeaWorld San Antonio personnel.         

The defendants each face up to one year in federal prison and a $20,000.00 fine.  A sentencing date has not been set.

            “It is disheartening that individuals would kill a dolphin for the sport of it, especially in today’s age,” said Tracy Dunn, Assistant Director for NOAA OLE.  “And, without the determination and skills of the NOAA investigator, supported by CGIS and TPWD, this unnecessary death may have gone unsolved."

“The Coast Guard is committed to providing the highest level of service to protecting our nation's valuable natural resources,” said Rear Admiral Kevin S. Cook, Commander, Eighth Coast Guard District.  “The continued cooperative sharing of professional knowledge and expertise among our inter-agency partners will ensure perpetrators of such horrible acts are held accountable." 

“We are extremely pleased that this case is being resolved,” said Colonel Craig Hunter, Texas Parks and Wildlife Department. “The dedication, professionalism, and teamwork demonstrated by investigators from NOAA, CGIS, and TPWD proved to be successful in solving this egregious criminal act.  The U.S. Attorney’s Office is to be commended for their role and hopefully this prosecution will deter others from illegally taking our natural resources for their personal enjoyment.”    

This case was investigated by the NOAA Office of Law Enforcement, U.S. Coast Guard Investigative Service and the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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BEAUMONT, Texas – A 40-year-old Nederland, Texas man has been sentenced to life in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Stephen Shane Hall, also known as Shane Hall, was found guilty by a jury on Aug. 21, 2014, of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.  Hall was sentenced to a mandatory life in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, from February to August 2013, law enforcement officers investigated Hall and others regarding the distribution of methamphetamine in the Orange County area.  On Aug. 31, 2013, a search warrant was executed at a residence on Spooner Road in Orange County, Texas.  During the search, 57 grams of methamphetamine were discovered as well as many items relating to the distribution of narcotics.  Officers also located three firearms inside the residence and garage area.  A federal grand jury returned an indictment on Nov. 6, 2013, charging Stephen Shane Hall, Misty Hall, Kevin Trent Portie, and Scott Robicheaux with federal drug trafficking violations.  Misty Hall, Portie, and Robicheaux pleaded guilty and have been sentenced.

The case was investigated by the Orange County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, and the Beaumont Police Department.  This case was prosecuted by Assistant U.S. Attorney Michelle Englade and Special Assistant U.S. Attorney Russell James.

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BEAUMONT, Texas – A 38-year-old Vinton, Louisiana 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.

Jeremy James Wimberly was found guilty by a jury on Sep. 5, 2014 of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, use of a firearm during a drug trafficking crime and being a felon in possession of a firearm.  Wimberly was sentenced to life in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, in September and October 2013, Wimberly made two controlled deliveries of a large amount of methamphetamine to an individual in Orange County, Texas.  After the drug transaction on Oct. 23, 2013, law enforcement officers attempted to make a traffic stop on Wimberly.  However, he led them on a 23-mile high speed chase at speeds reaching approximately 135 mph in Orange County before running out of gas in south Newton County and fleeing on foot.  Wimberly was found to have discarded a gun and a large quantity of methamphetamine during the chase.  Further investigation revealed he was a convicted felon and prohibited from owning or possessing a firearm or ammunition.  Wimberly was indicted by a federal grand jury on Nov. 6, 2013 and charged with federal drug and gun violations.

The case was investigated by the Orange County Sheriff’s Office, Orange Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Drug Enforcement Administration, and the Beaumont Police Department.  This case was prosecuted by Assistant U.S. Attorneys Michelle Englade and Baylor Wortham.

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BEAUMONT, Texas – A 53-year-old Port Arthur, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
John “Johnny” Anthony Sassine pleaded guilty on Nov. 4, 2014 to attempting to transfer obscene material to a minor and was sentenced to 78 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, in March 2013, an undercover officer in Jefferson County, Colorado, was working in an undercover capacity on a social networking sight posing as a 13-year-old female.  The undercover officer received an unsolicited message from Sassine.  The undercover officer and Sassine began an online chat conversation which became sexually explicit in nature.  The undercover officer provided Sassine with a birthdate which would have made the minor 15 years of age.  Sassine sent the undercover officer two sexually explicit photos and requested naked photos of the minor.  Officials in Colorado coordinated with authorities in Port Arthur, Texas to identify and apprehend Sassine.  On Apr. 12, 2013, a federal search warrant was executed at Sassine’s residence.  At first Sassine denied having any computers in the home before admitting there were three laptops and a notebook computer in the residence.  When asked if he knew why authorities were there, Sassine speculated it was because he had been to talking to someone “illegally” and admitted sending the sexually explicit photos of himself to someone he thought was under 16 years of age.

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 Department of Homeland Security HSI-ICE, Jefferson County Colorado District Attorney’s Office, Port Arthur Police Department and Beaumont Police Department.  This case was prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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TYLER, TEXAS – A 55-year-old Murchison, Texas woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Deborah Cornett pleaded guilty on June 9, 2014 to embezzlement by a bank employee and was sentenced to 41 months in federal prison today by U.S. District Judge Leonard Davis.  Cornett was also ordered to pay restitution in the amount of $365,988.43.

According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler.  During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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TYLER, TEXAS – A former employee of an East Texas hospital has been sentenced to federal prison for criminal HIPAA violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Joshua Hippler, 30, formerly of Longview, Texas, pleaded guilty on Aug. 28, 2014, to wrongful disclosure of individually identifiable health information and was sentenced to 18 months in federal prison today by U.S. District Judge Leonard Davis.

According to information presented in court, from December 2012 through January 2013, Hippler was an employee of a covered entity under HIPAA, the Health Insurance Portability and Accountability Act.  During this time, Hippler obtained protected health information with the intent to use it for personal gain.  Hippler was indicted by a federal grand jury on Mar. 26, 2014.

This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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SHERMAN, Texas – A 35-year-old Plano, Texas man has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Thomas W. Lucas, Jr., was found guilty by a jury of seven counts of wire fraud and one count of making a false statement to the FBI today following a five-day trial before U.S. District Judge Amos Mazzant.  The jury deliberated for less than an hour before returning their verdict.

According to information presented in court, from 2006 to 2010, Lucas devised and executed an elaborate scheme to defraud more than 100 investors out of approximately $60 million by telling them he had insider information regarding a Walt Disney resort and theme parks planned for the North Texas area.  Originally, according to Lucas, the Disney Resort and Theme Park was 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 had 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.

On Sep. 11, 2013, Lucas was indicted by a federal grand jury in the Eastern District of Texas and charged with multiple counts of wire fraud and providing a false statement to federal agents.

Lucas faces up to 20 years in federal prison.  A sentencing date has not been set.

                This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher Eason and J. Andrew Williams.

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BEAUMONT, Texas – The former owner of a Port Arthur, Texas business has been sentenced for disaster loan fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Kenneth W. Matthews, 59, of Fort Pierce, Florida pleaded guilty to on Mar. 12, 2014 to conspiracy to defraud the Small Business Administration of disaster loan funds and was sentenced to 5 years probation today by U.S. District Judge Thad Heartfield.  Matthews was also ordered to pay restitution in the amount of $500,000 to the SBA.

According to information presented in court, from January 2008 to May 2010, Matthews conspired with his general contractor and subcontractor to submit falsely inflated invoices and checks for repair work done after Hurricanes Humberto and Ike in order to obtain low interest disaster repair loans extended by the Small business Administration.  Matthews, the former owner of MegaBowl in Port Arthur, received SBA disaster loan proceeds of $750,000 after Hurricane Humberto and $760,000 after Hurricane Ike.  After receiving the loan disbursements based upon the false invoices, the general contractor and a subcontractor would receive from Matthews a lesser amount than invoiced for the work actually done, or would kickback to Matthews a portion of the loan disbursement paid to them.  The loan funds were disbursed solely for repairs and other expenses associated with the hurricanes and were not allowed for other general business or personal use.  Matthews’ declining health was a factor in his sentencing.

In September 2005, the U.S. Department of Justice created the Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud.  The Hurricane Katrina Fraud Task Force includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.

This case was investigated by the Small Business Administration-OIG and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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BEAUMONT, Texas – A 23-year-old Beaumont man has been sentenced to over 43 years in federal prison for his role in an armed carjacking spree in April 2012 in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Timothy Wayne Harris, Jr. a/k/a “J” was found guilty by a jury on Mar. 26, 2014, of conspiracy to commit carjacking, two counts of motor vehicle theft, and two counts of brandishing a firearm during a crime of violence.  Harris was sentenced to 522 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart.  On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking.  The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses.  In late 2013, Harris was determined to be competent to stand trial 

Edwards pleaded guilty before trial to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes, and was sentenced to 60 months in federal prison on Oct. 24, 2014.

This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine 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.

The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.

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TYLER, Texas - A 44-year-old Wills Point, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Terry Dewayne Monk pleaded guilty on Sep. 16, 2014, to being a felon in possession of a firearm and was sentenced to 71 months in federal prison today by U.S. District Judge Leonard Davis.

According to information presented in court, on Mar. 14, 2014, Monk was stopped by a on a rural county road in Van Zandt County by sheriff’s deputy for an outstanding warrant. During the traffic stop, officers discovered the vehicle did not belong to Monk, but to a nearby resident.  Officers went to the home and talked to the vehicle’s owner who advised them that Monk had been staying at her home for the about a week and that she had seen him with a sawed-off shotgun.  The home-owner gave permission to search the residence.  During the search, officers located the sawed-off shotgun which had an obliterated serial number.  Further investigation revealed Monk was a convicted felon having been found guilty of aggravated assault with a deadly weapon in 1990 in Tarrant County, Texas.  Convicted felons are prohibited by federal law from owning or possessing firearms or ammunition.  Monk was indicted by a federal grand jury on May 28, 2014.

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

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

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TYLER, Texas – A 25-year-old Palestine, Texas man has been sentenced to federal prison for child pornography charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Joshua Quick pleaded guilty on Oct. 14, 2014 to receiving child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard Davis.  Quick was also ordered to register as a sex offender upon release from prison.

According to information presented in court, on Sep. 14, 2013, Quick received child pornography on a computer after using the computer to solicit the participation of a minor to engage in sexually explicit conduct persuading the minor to produce images depicting child pornography.  Quick was indicted by a federal grand jury on Feb. 26, 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Anderson County Sheriff’s Office and the Urbandale, Iowa Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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BEAUMONT, Texas – A Houston husband and wife have been sentenced to federal prison for racketeering violations in connection with an employment referral conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston today.

                Lina Sun, 55, and Chenglun Ma, 58, both pleaded guilty on June 3, 2014, to RICO conspiracy and were sentenced on Feb. 5, 2015 by U.S. District Judge Thad Heartfield.  Sun was sentenced to 18 months in federal prison and Ma received 13 months in federal prison.  They were also jointly ordered to submit to forfeiture of a residence located at 8715 Bellaire Blvd. in Houston, $2.2 million money judgment, and forfeiture of $50,000 cash.

According to court documents, Lina Sun and her husband, Chenglun Ma operated the “Hong Li employment agency” in Houston Texas for more than a decade.  The principal purpose of the employment agency was the placement of prohibited aliens as food service workers in Chinese/Asian restaurants across the United States.  Restaurants securing employees from this scheme have been identified in 20 states, including some as far away as Maine. Some of the most prolific restaurants in the scheme were located in Jefferson County, Texas. 

Federal indictments were returned on Nov. 7, 2013, charging 32 individuals with RICO conspiracy and conspiracy to transport, harbor, and encourage and induce aliens to reside in the United States. 

This case was investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) offices in: Houston, Dallas, San Antonio and New Orleans; U.S. Customs and Border Protection, Office of Air and Marine; U.S. Marshals Service; and Police Department’s in Houston, Port Author and Beaumont.  This case was prosecuted by Assistant U.S. Attorney John Craft.

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TYLER, Texas - U.S. Attorney John M. Bales announced today that 18 individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On Feb. 5, 2015, a combined task force of federal, state and local law enforcement executed federal arrest warrants in Gregg and Upshur counties as a result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Administration, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office.

The operation resulted in the arrest of 18 of 20 defendants named in a 37-count indictment returned by a federal grand jury on Jan 21, 2015.  According to the indictment, from at least January 2010 to the present, the defendants conspired to distribute methamphetamine in East Texas.  The indictment also includes 14 charges of possession of a firearm during a drug trafficking crime, 20 charges of felon in possession of a firearm and two charges of possession of an unregistered firearm.  Those arrested and named in the indictment are:

MICHAEL DAIN BONNER, 38-years-old, DAVID FRANKLIN BECK, JR., 48-years-old, MICHAEL DEWAYNE JONES, aka “Sleepy”,             27-years-old, STEPHEN DWAYNE CANNADA, aka “Little Wood”, 40-years-old, CYNTHIA BETH BRANTLEY, 56-years-old, DEVON VERNON HARRIS, aka “Cali”, 37-years-old, BRODERICK LAMAIL JONES, aka “BA”, 30-years-old, KATLIN QUATEZ GODFREY, aka “Slim/KG”, 28-years-old, TROY OWEN, JR.,       34-years-old, MARK CYRUS HIPP, 35-years-old, CHRISTOPHER EVERETT BROOK, aka “Blue,” 40-years-old, KEITH DEONDRAY YOUNG, aka “Tugg,” 34-years-old, LARRY GENE KEEN, aka “Junior,” 37-years-old, CARLA THOMAS HAWKINS, aka “Breeze,” 44-years-old, COURTNEY BREANNE MCMULLEN, 25-years-old, CHASE ANTHONY HAGLER, 31-years-old, JESSICA MILLESON. 25-years-old, and
HEATHER REBECCA BECK, 45-years-old.

All of the defendants are residents of the Gregg/Upshur County area.  If convicted, the defendants face as much as life in federal prison.

This case is being investigated by ATF, DEA, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Richard Moore.

An indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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BEAUMONT, Texas – A 57-year-old Rialto, CA woman living in Port Arthur, Texas  has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Angie Dang pleaded guilty on Oct. 2, 2014 to possession with intent to distribute crack cocaine and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, in March 2014, Dang was observed by law enforcement conducting a drug transaction in the parking lot of the apartment complex where she lived in Port Arthur, Texas.  Shortly afterwards, Dang left her apartment and was pulled over by law enforcement and a canine partner was employed to examine the outside of the vehicle. The canine alerted to the presence of drugs and a search revealed a rock of crack cocaine in the center console of the vehicle. Additionally, Dang had $2,550 in her pants pocket. She was transported to the police department where a more thorough search was conducted. More crack cocaine was found in the vehicle, along with $453 cash. A total of 14.290 grams of crack cocaine was found in the vehicle. A state search warrant was obtained and officers searched the apartment where Dang lived. A cookie of crack cocaine, which weighed 22.585 grams, was found in the dining room.  Twenty-five, one-ounce bags of powder cocaine weighing 663.925 grams was found hidden in various places in Dang's closet. Officers also found $97,700 cash.  A federal grand jury returned an indictment on May 14, 2014, charging Dang with drug trafficking violations.

This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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BEAUMONT, Texas – A 23-year-old Houston 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.  

Christopher M. Carmon Thomas pleaded guilty on July 29, 2014 to bank robbery and was sentenced to 37 months in federal prison today by U.S. District Judge Thad Heartfield.  Thomas was also ordered to pay restitution in the amount of $2,309.00.

According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note.  During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt.  Thomas fled the bank with $2,309.00.  Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.

            This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.

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BEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent was one of two employees indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Patricia Adams Lambert, 60, of Beaumont and Victoria Gauthier Steward, 31, of Lake Charles, LA, were named in the five-count indictment returned by a federal grand jury today.  Lambert and Steward are accused of conspiring to cheat on standardized test results while Lambert is also alleged to have embezzled over $750,000 from the school district.

According to the indictment, Lambert is alleged to have devised several schemes to defraud the school district and even the students directly while employed with BISD.   In October 2006, while Lambert was principal of Central Medical Magnet High School (CMMHS), she took control of the CMMHS booster club, which raises money to support various athletic teams at the school.  The booster club raises funds largely through concession sales at football games and had been controlled by parents in the past.  Lambert is alleged to have diverted funds from the booster club account, which was not subject to BISD oversight or auditing, by writing checks payable to her children and then depositing them directly into her own personal account.  In addition to stealing directly from the booster club account, Lambert is also alleged to have diverted funds which traditionally had been deposited into the Student Activity Account, which is subject to oversight and auditing, to the booster club account.  An example of diverted funds is student transcript fees, which are usually $5 or less.  Lambert also diverted money from the Medical Magnet program to the booster club account.  Students enrolled in the program, which allows them to earn college credit while attending high school, were required to pay tuition fees which amounted to $275 per student per year for the 2010-2011 school year.  However, Lambert is alleged to have inflated the fees, requiring students enrolled in the program to pay $1,000 per student per semester and that payments be made in cash or by money order.  In 2007, Lambert assisted a close family member in becoming an authorized vendor with BISD.  From 2007-2013, Lambert directed that all printing and graphic work prepared for CMMHS be done through her family member’s companies.  This scheme alone resulted in approximately $480,000 paid by CMMHS or BISD at Lambert’s direction.  The indictment alleges that Lambert’s fraudulent activity amounted to $751,602.76.

The indictment also alleges that in order to increase the standardized test scores at CMMHS, Lambert directed others to change students’ tests before submitting the answer documents to the BISD administration building for forwarding to the State of Texas’ contractor for analysis.  Steward, a teacher at CMMHS, is alleged to have performed a large portion of the actual test changing and on more than one occasion, would provide teachers with a stack of tests and an answer key.

Lambert is charged with four counts of fraud upon programs receiving federal funds and if convicted, faces up to 10 years in federal prison on each count.  Lambert and Steward are both charged with conspiracy and if convicted, each face up to five years in federal prison.              

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 matter, please call the Federal Bureau of Investigation at 409-832-8571.

This investigation was conducted by the Federal Bureau of Investigation, the Department of Education Office of Inspector General, the Texas Education Agency, the Jefferson County District Attorney’s Office and the Beaumont Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.

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.

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TYLER, Texas — A 44-year-old woman, formerly of Port Harcourt, Nigeria, has been sentenced to federal prison for a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Vivian Yusuf pleaded guilty on Sep. 17, 2014, to conspiracy to commit health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Michael Schneider.

According to information presented in court, from June 2007 to May 2009, Yusuf, the former owner of Ivy Health Care Supply, a Houston-area medical supply company, and Aghaegbuna “Ike” Odelugo, James Reese, and others carried out a scheme to defraud Medicare through the marketing of power wheelchairs and accessories, as well as “ortho kits,” which primarily consisted of a bag of orthotic items, including braces, wraps, and supports, and a heat lamp or heat pad.  As part of the scheme, the defendant and her co-conspirators illegally obtained protected health information, including names, dates of birth, and Medicare numbers from elderly individuals.  Yusuf and her co-conspirators supplied beneficiaries with kits and power wheelchairs which were not prescribed or otherwise authorized by a physician and which were not wanted by the beneficiaries.  Claims were submitted by the defendant and her co-conspirators for approximately 790 beneficiaries located primarily in Texas and Louisiana.  In some instances, physicians’ signatures were forged and false claims were submitted to Medicare in the names of Medicare beneficiaries who were deceased.  By means of fraudulent billing practices, the defendant and her co-conspirators unlawfully submitted false and fraudulent claims to Medicare of more than $3.4 million and obtained more than $1.6 million.

Yusuf was a fugitive for several years before her arrest June 3, 2014 at George Bush Intercontinental Airport in Houston.  Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft on Jan. 12, 2012.
Odelugo and Reese were indicted for their involvement in similar health care fraud schemes.  Odelugo pleaded guilty to conspiracy to commit health care fraud, health care fraud, and money laundering and was sentenced to 72 months in federal prison.  The loss to Medicare as a result of Odelugo’s scheme was approximately $9.9 million. Reese pleaded guilty to health care fraud and tax evasion and was sentenced to 180 months in federal prison.  The loss to Medicare as a result of Reese’s scheme was approximately $8.6 million. 
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).  Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Ken McGurk prosecuted the case.

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SHERMAN, Texas – A 39-year-old Irving, Texas man has pleaded guilty for his role in an identity theft ring operating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jose Otero, also known as Jorge Osorio Morales, pleaded guilty to conspiracy to submit false statements to the U.S. Postal Service on Jan. 30, 2015, before U.S. District Judge Amos L. Mazzant, III.

According to information presented in court, Otero admitted that he used a false North Carolina driver’s license bearing his photograph but bearing the name of someone else to obtain private mail boxes in Irving, Plano, and Carrollton, Texas.

A federal indictment was returned on Mar. 15, 2012 against a number of conspirators in the scheme.  At this time, six others have been sentenced to federal prison for their roles.  Luigi Montes, 34, of Houston was sentenced to 60 months in federal prison on June 28, 2013 for conspiracy to submit false statements to the U.S. Postal Service and false claims to the Internal Revenue Service (IRS).  Montes was also ordered to pay restitution in the amount of $50,381 to the IRS.  Lupe Mendoza, 33, of Houston, was sentenced to 15 months in federal prison on Apr. 15, 2013 for conspiracy to make a false statement to the U.S. Postal Service and ordered to pay restitution to the IRS in the amount of $31,270. Tania Estafania Aguilar Gomez, 27, of Dallas, was sentenced to 10 months in federal prison on Feb. 15, 2013 and ordered to pay restitution of $22,268 to the IRS.  Rosalba Gomez, 48, of Dallas, was sentenced to five months in federal prison on Feb. 15, 2013.  David Gomez, 23, of Omaha, Nebraska, was sentenced to 16 months in federal prison on Nov. 29, 2012.  Joana Gomez, 52, of Balch Springs, Texas, was sentenced to five months in federal prison on Aug. 21, 2012.

Otero faces up to five years in federal prison at sentencing.  A sentencing date has not been set.

This case was investigated by the U.S. Postal Inspection Service and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams

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TYLER, Texas – A 39-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Micol Jauron Sears pleaded guilty on Sep. 3, 2014 to conspiracy to possess with intent to distribute crack cocaine and was sentenced to 168 months in federal prison today by U.S. District Judge Michael H. Schneider.  Sears was also ordered to submit to forfeiture of $25,000.

According to information presented in court, on Apr. 9, 2014, a federal search warrant was executed at Sears’ residence in Tyler during which law enforcement officers located 1.8 kilograms of crack cocaine, six firearms and a safe containing $39,900 in cash.  Sears had previously been indicted by a federal grand jury on Mar. 26, 2014 and charged with drug trafficking violations.

This case was investigated by the Federal Bureau of Investigation, the Tyler Police Department, and the FBI HIDTA Task Force and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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BEAUMONT, Texas – A 46-year-old Port Arthur, 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.

Michael Williams pleaded guilty on July 9, 2014, to conspiracy to possess with intent to distribute synthetic marijuana and was sentenced to 60 months in federal prison on Jan. 27, 2015 by U.S. District Judge Ron Clark.

                According to information presented in court, from May 2013 to November 2013, Williams conspired to receive synthetic marijuana from individuals in the Syracuse, New York area for distribution in the Port Arthur, Texas area.  Williams was shipped boxes containing packages labeled with brand names such as:  “Caution,” “Scooby Snax,” “Kush,” “WTF,” “Masterkush,” “Mr. Niceguy,” and “Klimax” on credit for approximately $4.50 per package.  Williams would then sell the packages of synthetic marijuana to others for $8 to $10 per package and then either send money orders to Syracuse or deposit money into a Bank of America account in the name of another defendant.

                In November 2013, a search warrant executed on Williams’ residence and vehicle revealed a phone, cash, and deposit slips linking Williams to the drug trafficking organization out of Syracuse.  A federal grand jury in the Northern District of New York returned an indictment on Nov. 20, 2013 charging nine individuals in that organization with drug trafficking violations.  Southeast Texans named in the NDNY indictment are Ali Bedwan, Joe Aref and Arafat Khdour.  Bedwan pleaded guilty to the conspiracy charge in Beaumont in 2014 and was sentenced to 46 months in federal prison.  Aref and Khdour are awaiting trial in Syracuse. Williams was indicted by a federal grand jury in Beaumont in May 2014.

               This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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SHERMAN, Texas – A 35-year-old Little Elm, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.  

Joey Earl Cooper pleaded guilty to wire fraud today before U.S. District Judge Amos L. Mazzant.

According to information presented in court, from April 2011 to July 2012, Cooper controlled a Wells Fargo bank account in the name of Darmaini & Cooper BG, Inc., in Frisco, Texas.  Cooper also operated a private postal center in Little Elm, Texas.  During this time, Cooper devised a scheme to defraud two customers of his private postal center and Citibank by using the customer’s Citibank credit card, which was only provided to Cooper to pay for the customer’s mailings from his private postal center, to transfer funds from Citibank to his Wells Fargo bank account.  Cooper would then withdraw the funds from his Wells Fargo account and use the money for his own personal benefit.

Cooper was indicted by a federal grand jury on Aug. 13, 2014 charging Cooper with federal violations.  He was arrested by Special Agents of the IRS Criminal Investigation on Sep. 14, 2014 at JFK International Airport in New York.

Cooper faces up to 10 years in federal prison and forfeiture of $1,001,360.92.  A sentencing date has not been set.

                This case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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SHERMAN, Texas – A 55-year-old Dallas  former mortgage broker has pleaded guilty to federal charges in connection with a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Jose Antonio Caballero pleaded guilty to defrauding the Department of Housing and Urban Development and Federal Housing Administration today before U.S. District Judge Amos L. Mazzant.

According to information presented in court, Caballero owned and operated American Processing Center, providing assistance to homeowners with mortgage loan modification programs, including the Home Affordable Modification Program.  Between March 2011 and December 2011, Caballero worked with homeowners in Mesquite, Texas to obtain an extension and renewal of a loan and mortgage on their residence on Bayberry Drive, which was insured by the Department of Housing and Urban Development.  In the process, Caballero falsified documents, including a Statement of Hardship Letter, a Monthly Income Expense Worksheet, and a Making Home Affordable Program Request for Modification and Affidavit.  Caballero did so knowing the documents were fraudulent and for the purpose of defrauding the federal agencies.

Caballero also engaged in similar conduct with respect to 20 other properties located in Carrollton, Dallas, Farmers Branch, Fort Worth, Garland, Grand Prairie, Irving, Little Elm, Mesquite, and Rowlett, some of which were secured by Fannie Mae and Freddie Mac. 

Caballero faces up to two years in federal prison at sentencing.  A sentencing date has not been set.

           This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

            This case was investigated by the Department of Housing and Urban Development, Office of Inspector General, and the Federal Housing Finance Agency, Office of Inspector General and prosecuted by Assistant U.S. Attorney Christopher A. Eason.

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TYLER, Texas – A 37-year-old Palestine, Texas man has been charged with federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jefferson Kincade appeared before U.S. Magistrate Judge K. Nicole Mitchell today and was released on an unsecured bond.  Kincade was indicted on Jan. 21, 2015, and charged with 31 counts of preparing income tax returns with false statements in them, six counts of theft of government money, and six counts of aggravated identity theft.

According to information presented in court, Kincade prepared tax returns for individuals at a tax preparation business, EZ Tax, in Palestine, Texas.  Kincade is alleged to have devised a scheme to prepare false tax returns, steal clients' refunds, and use the clients' and other individuals' identities to accomplish the theft.  The indictment alleges that the goal of Kincade's false statements and representations in the tax returns that he submitted was to increase the amount of tax refunds to which the taxpayer would be entitled.  All of these false statements and representations were about material matters, including such matters as filing status, dependents, wages, farm losses, business losses, withholding, education credits, distribution codes on retirement distributions, and itemized deductions.  The indictment also alleges that Kincade was able to intercept the government tax refunds for his own benefit by printing the refund checks, not giving them to his clients, and then cashing them with the assistance of two individuals who were not associated with EZ Tax.  This process involved Kincade's delivering refund checks along with his clients' identification information to an acquaintance who was also a client.  Kincade's acquaintance would then deliver the checks to a third person, who owned a check cashing business located in Tyler, Texas.  This third individual would cash the checks and give the cash to Kincade's acquaintance, and the acquaintance would deliver the cash to Kincade, who would keep the money.

                If convicted, Kincade faces up to three years in federal prison for each of the 31 counts of preparing false tax returns, up to 10 years in federal prison for each of the six counts of theft of government money, and up to two years in federal prison for each of the six counts of aggravated identity theft.

            Kincade was arrested by Texas Department of Public Safety.  This case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Tom Gibson.

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

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BEAUMONT, Texas – Nearly $900,000 of forfeited funds have been paid towards financial losses suffered by the Beaumont Independent School District (BISD), announced U.S. Attorney John M. Bales today.

Devin Wayne McCraney, former Director of Finance for BISD, and Sharika Baksh Allison, former Comptroller for BISD, were sentenced on Sep. 18, 2014 for fraud and conspiracy to commit fraud upon programs receiving federal funds.  McCraney and Allison surrendered to the Bureau of Prisons on Oct. 21, 2014.

As part of their sentences, McCraney and Allison were ordered to pay restitution in the amount of $4,041,705.27 to BISD.  On Jan. 15, 2015, the U.S. District Clerk forwarded $896,915.33 in forfeiture funds to BISD as part of that restitution.

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 involving abuse of the public trust in Jefferson County, Texas.

After McCraney and Allison were indicted in January 2014, more than $900,000 in assets, including cash and luxury vehicles, were seized pursuant to the Justice Department’s asset forfeiture procedures.  The majority of those assets were forfeited to the federal government when McCraney was sentenced.  Assets were also forfeited from Allison in the criminal case.  Aside from those forfeited assets, McCraney and Allison had spent nearly all of the remaining money that they embezzled from BISD.

Because McCraney and Allison did not have enough other assets to pay anything towards the $4 million restitution judgment, the U.S. Attorney requested for the Justice Department’s Asset Forfeiture and Money Laundering Section (AFMLS) to approve application of the forfeited assets to the restitution debt so that the forfeited funds could be paid to BISD.  AFMLS expedited the U.S. Attorney’s request and approved it in a matter of days.

“Returning forfeited assets to the victims of financial crime is an important priority of the Justice Department’s asset forfeiture program,” said U.S. Attorney Bales.  “We endeavor to seek restitution to crime victims whenever possible in our cases.  Unfortunately, criminals often spend all of the money that they steal, which ultimately leaves very little else for the victims.  Asset forfeiture is a key law enforcement tool because it helps to restrain a criminal’s assets and preserve them for crime victims.”
“Given how these defendants spent their ill-gotten gains and had very little of value to show for it, we are fortunate that there was anything to forfeit at all,” said U.S. Attorney Bales.  “Thanks to the efforts of the task force, we were able to find what assets of value they did have, seize them, forfeit them, and now have them paid to BISD.”

This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General.  This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.

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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 pleaded guilty to drug trafficking charges in the Eastern District of Texas.

            Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, pleaded guilty 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 entered his guilty plea on Jan. 13, 2015, before U.S. District Judge Marcia A. Crone.

            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.

Saenz-Tamez faces a minimum of 10 years and up to life in federal prison for the drug convictions and up to 20 years in federal prison for the money laundering conviction.  A sentencing date has not been set.

"This guilty plea marks a great victory in our long struggle against illegal narcotics trafficking and yet we must reiterate what should be self-evident - enforcement is only one part of the solution to what has been an interminable and ugly problem in American culture,” said U.S. Attorney Bales.  “The American appetite for narcotics is a stain on our national honor and a dark cloud for our future. The agents working on this case are amazing - they are true American heroes and I congratulate them all."

IRS-CI Special Agent in Charge Lucy Cruz stated, "This is an important victory for the American public; the role of IRS-CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations.  We are committed to taking the profits away from drug traffickers and putting those individuals in jail.  IRS-CI is proud to provide financial expertise as we work alongside our law enforcement partners and bring these criminals to justice."

“It’s a good day for law enforcement whenever we can take several tons of drugs off of America’s streets,” said Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston. “It’s even better when we can also dismantle and cripple the organization behind those drugs, and remove its leadership, as our law enforcement team did in this case.”
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, Operation Fowl Play 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, United States 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, Nacogdoches Sheriff’s Office, Jefferson County Sheriff’s Office, and the Harris County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney John Craft.

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SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Beaumont attorney was sentenced to 12 months in prison for failing to file his federal income tax return.

Craig J. Schexnaider, 63, of Beaumont, Texas, was sentenced by U.S. Magistrate Judge Zack Hawthorn for one count of failing to file an income tax return. He was also ordered to pay a $5,000 fine and serve one year of supervised release. He must also pay his tax liability of $98,805.57 to the U.S. Treasury. The court set a surrender date of February 11, 2015. According to evidence presented at the April 14, 2014 guilty plea, Schexnaider, an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.

The sentencing resulted from a Bill of Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. The government dismissed the remaining counts after sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted this recusal case from the Eastern District of Texas.

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 PLANO, Texas – A 38-year-old man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Charles Smolens, of Little Elm. Texas, pleaded guilty on April 29, 2014 to conspiracy to produce child pornography and distribution of child pornography, and was sentenced to 365 months in federal prison today by U.S. District Marcia Crone.

According to information presented in court, in December of 2012, Judith Williams was babysitting an 8 month old baby girl when she videotaped herself performing a sex act on the infant. Williams then emailed the video to her boyfriend, Charles Smolens.  During the investigation, FBI Agents discovered that Smolens had written a 22-page story about adults having sex with and raping children.  Smolens also provided Williams with a thumb drive that contained hundreds of images of child pornography, including an image of an adult male attempting to perform a sex act on an infant as well as images of his live-in girlfriend’s six-year old daughter.

Judith Williams is scheduled for sentencing on February 25, 2015.

This case was investigated by the Federal Bureau of Investigations and the McKinney Police Department. Assistant U.S. Attorneys Tracey M. Batson and Amanda Griffith prosecuted the case.

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.

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 BEAUMONT, Texas – A 75-year-old Beaumont doctor has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

John Q. A. Webb, Jr., now living in Houston, pleaded guilty on July 23, 2014 to conspiracy to commit health care fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, from January 2008 to December 2011, Webb, while he owned, operated and managed Beaumont Medical Clinic on Eastex Freeway in Beaumont, conspired with his office manager to have unlicensed individuals treat patients and then bill health care providers as if Webb had personally provided the services.  To execute the scheme, Webb would allow unlicensed staff to prescribe controlled substances to patients when he was not on the premises and allowed his office manager to distribute the controlled substances directly to patients.  Investigators have determined that the total amount of loss in this case for which Webb is responsible is $328,238.41. Programs suffering losses as a result of this scheme are Medicare, Medicaid, Blue Cross Blue Shield, and Aetna.  Webb was indicted by a federal grand jury on Dec. 5, 2013.

This case was investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration.  This case was prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.

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 SHERMAN, Texas – A 47-year-old McKinney, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
                 
Elijah El-Jihad pleaded guilty on May 29, 2014 to bank robbery and was sentenced to 96 months in federal prison on Dec. 17, 2014 by U.S. District Judge Marcia Crone.

According to information presented in court, on Mar. 31, 2014, El-Jihad entered the Woodforest National Bank located in the Kroger supermarket at 1820 Loy Lake Road in Sherman, Texas, and presented the teller with a note demanding money.  El-Jihad fled the bank with approximately $800.00.  He was seen entering his vehicle by witnesses after he exited the supermarket.   El-Jihad was arrested in McKinney, Texas on Apr. 1, 2014 and admitted to robbing the bank.   A federal grand jury returned an indictment on Apr. 9, 2014, charging El-Jihad with bank robbery.  

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney William R. Tatum.

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 PLANO, Texas – A 68 year-old Galveston, Texas woman has been sentenced to federal prison for federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Yvonne Gumaer pleaded guilty on Jan. 22, 2013 to making a false statement in connection with an FHA insured home loan and was sentenced to 33 months in federal prison today by U.S. District Judge Richard Schell.  Gumaer was also ordered to pay restitution in the amount of $791,782.89.

According to information presented in court, Gumaer was an escrow officer at Regency Title Company ("RTC") in Collin County.  In 2008, Gumaer conspired with Larry Reisman, Kathy Moore, and others to knowingly and willfully make a materially false statement, for the purpose of influencing the FHA to insure a mortgage loan made to another person to purchase property known as the Thistle Way III Property from Reisman.  Specifically, Reisman, the seller of the property, had not and would not pay or reimburse the borrower for any part of the borrower's closing costs which had not been disclosed in the sales contract, a violation of 18 U.S.C. § 1014.  This scheme resulted in losses to mortgage lenders, including The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac).  Gumaer was indicted by a federal grand jury on Mar. 15, 2012. 

Others who have been sentenced in connection with the mortgage fraud schemes include
Kathy Moore, 50, of Broken Arrow, Oklahoma, who was sentenced to 24 months in federal prison and ordered to pay restitution in the amount of $774,377.63; and Larry Reisman, 52, of Dallas, who was sentenced to 42 months in federal prison and ordered to pay restitution in the amount of $1.5 million.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

This case was investigated by HUD-Office of Inspector General, IRS Criminal Investigation, Federal Bureau of Investigation, Federal Housing Finance Agency-Office of Inspector General, U.S. Secret Service, and U.S. Postal Inspection Service.  The case was prosecuted by Assistant U.S. Attorneys Andy Williams and Chris Eason.

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 BEAUMONT, Texas – A 36-year-old Beaumont, 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.

Jonathan Van Johnson pleaded guilty on Mar. 18, 2014, to possession with intent to distribute phencyclidine (PCP) and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia Crone.

            According to information presented in court, on May 21, 2013, law enforcement officers executing search warrants at Johnson’s residence in Beaumont discovered approximately 536 grams of PCP, as well as additional drugs and paraphernalia consistent with drug trafficking activities.  The search of Johnson’s residence and his arrest was the result of an investigation into illegal drug activity in the area.  Johnson was indicted by a federal grand jury on Nov. 6, 2013 and charged with drug trafficking violations.

           This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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   TYLER, Texas – Joseph A. Masso, a 64-year-old resident of Athens, Texas, pleaded guilty to federal income tax violations, announced U.S. Attorney John M. Bales today.

            Masso was charged with making and subscribing to a false tax return for the calendar year 2011 in violation of 26 U.S.C. ' 7206(1).  According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007.  Lone Store operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas.  For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million.   As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.

            At sentencing, Masso faces imprisonment for up to three years.  Masso has already agreed to pay restitution in excess of $900,000 to the IRS as well as a civil fraud penalty of more than $450,000.

            In a related civil action, Masso agreed to forfeit $800,000 to the United States.  The funds were originally seized during the execution of federal seizure warrants.

This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Frank Coan.

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   Plano, Texas –U.S. Attorney John M. Bales announced today that a deputy with the Denton County Sheriff’s Department has been indicted on child exploitation charges in the Eastern District of Texas.

The defendant, Joe Edward Cummings, 36, of Justin, TX, was indicted by a federal grand jury on December 10, 2014.  According to the indictment, between June and October 2014, Cummings transported child pornography using the internet and a cloud-based storage service and he possessed digital media that contained child pornography files.

Cummings appeared before U.S. Magistrate Judge Don Bush for an initial appearance on December 12, 2014.  If convicted, Cummings faces a term of imprisonment of not less than five years and up to twenty years in federal prison.

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.

The indictment is the culmination of an investigation conducted by the United States Secret Service and Texas Department of Public Safety – Texas Rangers, with assistance from the Justin Police Department, Denton County Sheriff’s Office and the United States Marshal’s Service.  The case is being prosecuted by Assistant U.S. Attorney Marisa Miller.

The 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.

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 BEAUMONT, Texas – Four Southeast Texas residents have pleaded guilty to federal counterfeiting charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Felicia Nicole Ardoin, 30, of Beaumont, Sonja DeAnn Lee, 31, of Orange, Texas, Norris Marie Narcisse, III, 26, of Port Arthur, Texas, and Kevin Douglas Orphe, 41, of Port Arthur, each pleaded guilty to conspiracy to counterfeit business checks.  The pleas were held today before U.S. Magistrate Judge Keith F. Giblin.

According to information presented in court, a joint task force was formed after the Beaumont Police Department received an unusual number of complaints from merchants, financial institutions, and account holders that they were the victims of counterfeit checks from January 2012 through January 2014.  Twelve companies in the Golden Triangle complained their bank accounts were compromised by 144 counterfeit checks manufactured to appear as legitimate payroll checks. Numerous grocery stores and other merchants who cashed the checks were also affected by the organized counterfeiting activities of the defendants. Losses to merchants and financial institutions exceeded $110,000.

            A federal grand jury returned an indictment on Sep. 3, 2014 charging these four defendants and Kenneth Ray Smith, 39, of Orange, with federal violations.  Smith pleaded guilty on Nov. 13, 2014, to the conspiracy charge and being a felon in possession of a firearm.  The defendants face up to five years in federal prison for the conspiracy conviction.  Smith faces up to an additional 10 years in federal prison for the firearms conviction.  Sentencing dates have not been set.

            In addition to these five defendants, another 25 persons either cashed the checks or otherwise negotiated the checks knowing them to be counterfeited. Those persons will be prosecuted in state courts. 

This case was investigated by the Beaumont Police Department, Texas Department of Public Safety, and Homeland Security Investigations HSI-ICE and prosecuted by Assistant U.S. Attorney Robert Rawls.

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 BEAUMONT, Texas – A 41-year-old Port Acres, Texas man has pleaded guilty to federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Chad Piazza pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Dec. 9, 2014 before U.S. District Judge Marcia Crone.

According to information presented in court, beginning in January 2012, Piazza and a co-defendant, Wendy Claudine Hopkins, 45, of Groves, Texas, conspired to distribute methamphetamine in the Jefferson County, Texas area.  As part of his plea, Piazza admitted that he was a member of the Aryan Brotherhood of Texas and used his association with the ABT to further his drug trafficking activities.

            A federal grand jury returned an indictment on May 15, 2014 and charged Piazza and Hopkins with drug trafficking violations.  Piazza entered his guilty plea during jury selection for his trial, which was set to begin yesterday.

            Hopkins pleaded guilty on Nov. 5, 2014 to conspiracy to possess with intent to distribute methamphetamine.  Both defendants face a minimum of 10 years in federal prison.  Sentencing dates have not been set.    

This case was investigated by the U.S. Drug Enforcement Administration, the Port Arthur Police Department and the Jefferson County Sheriff’s office and prosecuted by Assistant U.S. Attorney John B. Ross.

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  BEAUMONT, Texas – A 28-year-old Jasper, Texas man has pleaded guilty to federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Shane Dwayne Hadnot pleaded guilty to possession with intent to distribute cocaine today before U.S. Magistrate Judge Keith F. Giblin.

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.

                “Today’s guilty plea signals that this investigation has reached a significant point of closure,” said U.S. Attorney Bales.  “Shane Hadnot is being held accountable for his criminality and the associated factual context for Hadnot’s plea provides the truth for why Alfred Wright lost his life in the Sabine County woods.  Of course, today’s court activity will provide little solace for Mr. Wright’s family who lost a husband, father, brother and son.  Can anyone doubt that the distribution and use of illegal narcotics is a cancer in American society?  On behalf of the U.S. Attorney’s Office, the Texas Rangers, DEA and FBI, I again express our sorrow and our condolences to those who loved Alfred Wright.  I also want to commend the Rangers, the agents and the officers who worked countless hours to determine what happened and who should be held accountable – they have done their duty and I am honored to be associated with this team.”

                Hadnot faces up to 20 years in federal prison at sentencing.  A sentencing date has not been set.

This case is being investigated by the Texas Rangers, the Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration.  This case is being prosecuted by Assistant U.S. Attorneys Brit Featherston and John B. Ross.

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    TYLER, Texas – Two Jacksonville, Texas men have been sentenced in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.  The sentences were handed down today by U.S. District Judge Michael Schneider.

                Jonathan Roshard Brown, 22, pleaded guilty on May 20, 2014, to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and possessing a firearm during a crime of violence and was sentenced to 180 months in federal prison for the Hobbs Act conviction and 80 months for the firearms conviction.

Michael Dangelio Johnson, 25, pleaded guilty on Feb. 12, 2014 to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and was sentenced to 100 months in federal prison today.

According to information presented in court, Brown, Johnson and two co-defendants conspired to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law.  Specifically, they committed four armed robberies in Jacksonville during a crime spree which began on Oct. 2, 2011 when they stole $9,465 from the Wal-Mart Supercenter in Jacksonville.  On Nov. 2, 1012, they robbed the Razorback Grocery on Hwy 69 in Jacksonville.  Brown brandished a handgun and demanded money from the owner.  Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets.  On Nov. 16, 2012, Brown, Johnson and another defendant again robbed the owner of the Razorback Grocery while he was waiting in the commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville.  During the robbery Brown fired a handgun, striking the victim.  The bullet passed through the victim’s hand, throat and shoulder.  The victim survived after being airlifted to a Tyler hospital.  The defendants obtained an undetermined amount of cash from the victim’s vehicle.  The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank.  On Nov. 23, 2012, Brown and another person attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville.  The owner was able to strike Brown and flee.

This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorney Richard Moore.

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     BEAUMONT, Texas — Three former Beaumont Independent School District employees have pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Daryl Glenn Johnson, 44, of Beaumont, pleaded guilty to conspiracy today before U.S. Magistrate Judge Keith Giblin.   Erin Gipson Johnson, 38, of Beaumont, and Kailyn DeShondra Pete, 25, of Beaumont, each pleaded guilty to fraud upon programs receiving federal funds today before Judge Giblin.

According to the indictment, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, first his wife, Erin Johnson, and then a friend, Kailyn Pete, placed on the BISD payroll as temporary employees.  However, neither Erin Johnson nor Kailyn Pete ever actually worked as a BISD warehouse employee.  Daryl Johnson had the autonomy to hire temporary warehouse employees on his own, and the authority to determine how many hours they would be paid, and could do so unilaterally and without the authorization or direct knowledge of anyone else. Daryl Johnson used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when he knew that they in fact had not worked any of the hours.  From July 2009 through May 2011, Erin Johnson was paid $193,998.37.  During the timeframe of June 2010 through May 2012, Kailyn Pete was paid $90,041.05.  The defendants were indicted by a federal grand jury on Aug. 6, 2014.

The defendants each face up to five years in federal prison at sentencing.  Sentencing dates have not been set.

This case is being investigated by the joint Task Force with the Jefferson County District Attorney’s Office, the Beaumont Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.

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        LONGVIEW, Texas – U.S. Attorney John M. Bales announced today that three individuals have been arrested following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas.

                On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force.  In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic marijuana trafficking organization based in the East Texas area.  This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.  To date, law enforcement officials have seized several products containing illegal synthetic drugs.

The operation resulted in the arrest of Jeremy Chad Tidwell, 39, of Gilmer, Texas, his wife, Shanna Peek Tidwell, 36, of Gilmer, and Jeremy’s brother, Brian Tidwell 42, of Arlington, Texas.  Four retail stores, all located in Longview, were searched as part of the law enforcement operation.  Approximately $1 million cash and two vehicles were seized, as well as synthetic drugs during the operation.

The defendants were indicted by a federal grand jury on Nov. 12, 2014 and charged with two counts of conspiracy to distribute and possess with intent to distribute synthetic drugs containing Schedule I controlled substances and controlled substance analogues, one count of conspiracy to offer for sale misbranded or altered drugs, one count of conspiracy to sell drug paraphernalia, and one count of conspiracy to money launder.  The defendants appeared before U.S. Magistrate Judge John D. Love today for an initial appearance.

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

“Today’s enforcement operations are indicative of the DEA’s commitment to rid East Texas communities of dangerous and unpredictable substances such as K2, also known as Spice (synthetic cannabinoids), that were being distributed by an organization that generated tremendous illicit profits from sales to multiple users,” said the DEA Dallas Division’s Special Agent in Charge Daniel R. Salter.  “Citizens in East Texas can rest assured that the DEA and our law enforcement partners are determined to ensure that Gregg County and the surrounding communities remain a safe place to live.  The success of this intensive and thorough investigation is an outstanding example of cooperative law enforcement efforts and determination.”

The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Henderson Police Department, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service

An indictment or arrest is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Department of Justice
Office of Public Affairs

          BEAUMONT, Texas – A 23-year-old former youth pastor has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Trevion Lechay Ethridge, of Newton, Texas, pleaded guilty on June 3, 2014 to production of child pornography and was sentenced to 280 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, from November 2012 to March 2013, while Ethridge was the youth pastor at a Newton County church, he persuaded a minor to video and photograph pornographic images and to send the pornography to Ethridge via smart phone.  Ethridge was indicted by a federal grand jury on Oct. 3, 2013.  Trial began in this case on May 12, 2014 and was recessed after two days.  Trial resumed on June 3, 2014, at which time Ethridge changed his plea to guilty and under oath, admitted to sending the minor pornographic images and videos of himself and enticing the minor to send pornographic images and videos in return.

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 ICE-HSI, the Newton Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Lauren Gaston.

Department of Justice
Office of Public Affairs

          TEXARKANA, Texas – A 38-year-old Texarkana, Texas woman has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
          Shelonda Chares pleaded guilty to an Information charging her with sexual abuse of a ward today before U.S. Magistrate Judge Caroline Craven.

          According to information presented in court, on June 1, 2014, Chares, while employed as a Bureau of Prisons Case Manager at the Federal Correctional Institution in Texarkana, engaged in a sexual act with a federal inmate detained at the facility. 

          Chares faces up to 15 years in federal prison at sentencing.  A sentencing date has not been set.

          This case is being investigated by the U.S. Department of Justice Office of Inspector General and the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Ryan Locker.