Eastern District of Texas
Press releases recorded for this federal judicial district.
Attorney General Recognizes Beaumont Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney Matt Quinn of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Matthew C. Quinn was recognized for his outstanding contributions in leading the formation of the office in Texarkana, Arkansas, while he was an AUSA for the Western District of Arkansas. AUSA Quinn volunteered to be the first AUSA in the newly formed office, where he worked to build relationships with federal agents and local officers throughout approximately 20 counties. He was central to a new partnership between United States Attorneys’ offices for the Eastern District of Texas and Western District of Arkansas who share the Texarkana office. In addition, AUSA Quinn’s efforts have led to large drug-trafficking investigations and prosecutions including Operation Stateline Sweep, Operation Crystal Clear, Operation Street Sweeper, and Operation Ice Pick. His caseload and tireless leadership in the southern part of the district have had an enormous impact on the furtherance of justice in this previously underserved area. AUSA Quinn left the Western District of Arkansas in June 2014 and joined the Eastern District of Texas as the Attorney in Charge of the Beaumont office.
“Matt Quinn’s accomplishments as an AUSA in Texarkana are the stuff of legend,” said U.S. Attorney John M. Bales. “He started the work from scratch and four years later, dozens of dangerous criminals were justly incarcerated and federal, state and local law enforcement had effectively coalesced around Matt’s leadership. I have no doubt that Matt will accomplish similarly great things in the Golden Triangle for the people of the Eastern District of Texas.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Beaumont Federal ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney John B. Ross of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
John B. Ross, of the Beaumont office, was recognized for his distinguished service and outstanding success in related prosecutions of the Solid Wood Soldiers (SWS). The SWS is a race-based organization that began to grow significantly in the late 2000s. Led by AUSA Ross, a multi-agency team of agents and investigators leveraged the investigation of one murder to severely disrupt and dismantle the operation and growth of the SWS criminal enterprise. In so doing, the team also effectively disrupted the Aryan Brotherhood and Aryan Circle gangs. White supremacist gang leaders who had sworn never to cooperate with the government were induced to do so. AUSA Ross used available federal statutes and investigative tools to send a substantial portion of the SWS leadership to prison to serve life sentences. This successful VICAR (Violent Crime in Aid of Racketeering) prosecution highlights effective federal law enforcement and served to deter the SWS and other racketeering organizations.
“When John was asked to take on an unsolved and unspeakably grisly murder, he did so with the knowledge that we might not ever know what had happened to James Sedtal,” said U.S. Attorney John M. Bales. “John assembled a task force of agents and officers who worked tirelessly to find out the answers and in the process, they completely unspooled the Solid Wood Soldiers, essentially crippling that gang’s organizational hierarchy. John Ross’ resolute work is a great example of how the Eastern District of Texas takes on cases that are much more than just solving a crime – they change the community for the better.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Jury Convicts Louisiana Man in Orange County Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 38-year-old Vinton, Louisiana man has been convicted of 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 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. The jury deliberated for 30 minutes before returning with a guilty verdict on all four counts. The verdict was returned late Friday, Sep. 5, 2014 following a three-day trial before U.S. District Judge Ron Clark.
According to information presented in court, in September 2013 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.
Wimberly faces a mandatory sentence of life in federal prison. A sentencing date has not been set.
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 is being prosecuted by Assistant U.S. Attorneys Michelle Englade and Baylor Wortham.
Former Hospital Employee Pleads Guilty to Criminal HIPPA ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — U.S. Attorney John M. Bales announced today that a former employee of an East Texas hospital has pleaded guilty to criminal HIPAA charges in the Eastern District of Texas.
Joshua Hippler, 30, formerly of Longview, Texas, was indicted on March 26, 2014, on charges of Wrongful Disclosure of Individually Identifiable Health Information. Hippler pleaded guilty on August 28, 2014 during a hearing before United States Magistrate Judge John D. Love.
The indictment alleged that from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain.
Hippler faces up to ten years in federal prison. A sentencing date has not been set.
The investigation leading to the charges was conducted by agents from the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service. Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.
Collin County Man Arrested for Smith County Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old McKinney, Texas man has been arrested in connection with a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Daniel River Burson was arrested on Aug. 25, 2014 pursuant to a criminal complaint issued by the U.S. District Court charging him with bank robbery. Burson had an initial appearance before U.S. Magistrate Judge John D. Love today and will have a detention hearing on Aug. 29, 2014.According to information presented in court, on Aug. 11, 2014, Burson is alleged to have robbed the Capitol One Bank on New Copeland Road in Tyler. A joint investigation with the Federal Bureau of Investigation and the Tyler Police Department led to the identity of Burson.
If convicted, Burson faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Angelina County Man Guilty in Wire Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Lufkin, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Andy Lee House pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in October 2009, House purchased a 2006 Bugatti Veyron for $1 million and had it insured for $2.2 million. On Nov. 11, 2009, House drove the vehicle into the Gulf Bay near La Marque, Texas, and upon exiting the Bugatti, left the motor running, resulting in the engine taking on large amounts of salt water which destroyed the vehicle. House reported to first responders he was reaching for his cell phone when he swerved and accidently drove into the bay. On Nov. 12, 2009, House called the insurance company and filed a $2.2 million claim on the Bugatti. However, House did not know that another motorist had videoed the accident, including the moment House drove the vehicle into the water, and then posted the video to YouTube.
House faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, the Lufkin Police Department, the Texas Rangers, the Department of Public Safety-Criminal Investigation Division, and the Nacogdoches Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
###Jury Convicts Nederland Man in Orange County Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Nederland, Texas man has been convicted of 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 of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm. The verdict was returned late Thursday, August 21, 2014 following a three-day trial before U.S. District Judge Marcia Crone.
According to information presented in court, from February 2013 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 have already pleaded guilty and are awaiting sentencing.
Stephen Shane Hall faces a mandatory sentence of life in federal prison. A sentencing date has not been set.
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 is being prosecuted by Assistant U.S. Attorney Michelle Englade and Special Assistant U.S. Attorney Russell James.
Corrected 8/25/2014
Wisconsin Man Arrested for Federal Drug and Money Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsLUFKIN, Texas – A 40-year-old man from Milwaukee, Wisconsin has been arrested for federal drug and money trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Henry Korvett Bams, of Milwaukee, Wisconsin, was arrested Tuesday, pursuant to a criminal complaint issued by the U.S. District Court charginghim with conspiracy to possess with the intent to distribute over five kilograms of cocaine and engaging in interstate and foreign travel or transportation in aid of a Racketeering Enterprise. On Sunday, July 6, 2014, Bams was stopped for a traffic violation by the Texas Department of Public Safety while traveling southbound on US Highway 259 in Nacogdoches County, Texas. The officer eventually conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Following an arrest on state charges, Bams was released when the charges were dismissed. In addition, the Nacogdoches County District Attorney’s office returned all but $100,000 of the seized currency to Bams. On Tuesday, July 22, 2014, Bams was stopped for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside a hidden compartment within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account referenced in the deposit slips and seized approximately $135,015.14 in suspected drug proceeds.If convicted, Bams faces a minimum of 10 years to life in federal prison for the drug distribution violation and up to five years for the interstate transportation in aid of racketeering violation.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the Texas Department of Public Safety, the Arkansas State Police, Milwaukee High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Port Arthur Woman Guilty in Mail Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Port Arthur, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shawnta Rene Bell Jones pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, from November 2006 to August 2013, Jones was involved in a conspiracy with others to defraud insurance providers and other businesses by staging automobile collisions and then submitting claims for property damage and personal injury by U.S. mail and other carriers. On Mar. 4, 2012, Jones and others staged an automobile accident in Port Arthur and then submitted fraudulent insurance claims to Farmers Insurance and Old American Mutual Insurance Company. As a result of the fraudulent claim, payment was made by U.S. mail to defendants. Jones’ received less than $5,000 for her part in the conspiracy.
On June 4, 2014, a federal grand jury returned an indictment charging Jones and Port Arthur residents James Lee Jones, Sr., 46; Charles Christopher Mosley, 34; Martin James Eaglin, 39; Edmund Hurts III, 27; and Kristopher Bernard, 28, with conspiracy to commit mail fraud and 17 counts of mail fraud.
Jones faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation, Port Arthur Police Department, National Insurance Crime Bureau and Farmers Insurance Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Special Assistant U.S. Attorney Catherine Cockrell.
Jefferson County Man Guilty of Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 42-year-old Nederland, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Antonio Govea Figueroa pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, from June 2008 to November 2013, Figueroa, the owner and operator of Tony’s Kustom & Collision in Port Arthur, Texas, electronically submitted claims to Farmers Insurance for collision work. Farmers became suspicious of the invoices submitted by Figueroa. The inspection of 44 claims revealed Figueroa claimed repairs that were not actually done and claimed to use new parts when salvaged or inferior parts were actually used without the consent or knowledge of the insured.
Figueroa faces up to 20 years in federal prison and restitution of $118,013.34 at sentencing. A sentencing date has not been set.
This case is being investigated by Department of Homeland Security – Homeland Security Investigations, Texas Department of Public Safety, and Farmers Insurance Significant Investigations Unit and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Dallas Man Guilty of Money LaunderingRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 51-year-old Dallas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Waddell “Wade” Jones pleaded guilty to money laundering and aiding and abetting today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, Jones admitted to receiving currency from an undercover officer and that he was told the currency was drug money derived from the sale of illegal narcotics. In exchange, Jones provided stolen U.S. Treasury Checks to the undercover officer. Jones admitted that he intended to conceal the currency that he believed to be from drug trafficking. A federal grand jury returned an indictment against Jones and Chijioke Obiora on May 28, 2014. Obiora is awaiting trial.
Jones faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by IRS Criminal Investigation, Texas Department of Public Safety Criminal Investigation, and U.S. Diplomatic Security and prosecuted by Assistant U.S. Attorney Jay Combs.
Jefferson County Man Arrested, Charged for Synthetic MarijuanaRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Beaumont, Texas man has been arrested for possessing Lego-shaped blocks of synthetic marijuana in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Conrad Stanley Hammon was indicted by a federal grand jury on Aug. 6, 2014 and charged with possession with intent to distribute Dimethyltrypamine (DMT), or synthetic marijuana.
According to information presented in court, a state-issued search warrant was executed on June 13, 2014 at a residence in the 3900 block of Sunbury Drive in Beaumont. Approximately 85 kilograms of DMT was discovered during the search. Synthetic marijuana is often targeted for sale to minors or younger adults. This particular seizure included liquid DMT injected into Lego-shaped blocks. Hammon was arrested at his residence on the morning of Aug. 8, 2014 and brought before U.S. Magistrate Judge Keith F. Giblin for an Initial Appearance. Hammon was released pending trial.
If convicted, Hammon faces up to 20 years in federal prison.
This case is being investigated by the Drug Enforcement Administration and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
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.
Jasper County Man Indicted for Lethal Drug TransactionsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Jasper, Texas man has been indicted for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shane Dwayne Hadnot was indicted on Aug. 6, 2014 by a federal grand jury charging him with conspiracy to possess with intent to distribute a controlled substance resulting in death and distribution of a controlled substance resulting in death. Hadnot was arrested on Aug. 7, 2014 and will appear before U.S. Magistrate Judge Keith Giblin today.
According to the indictment, 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.
If convicted, Hadnot faces from 20 years to life in federal prison for each charge.
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.It is important to note that a grand jury indictment is not evidence of guilt.
Three Former Beaumont ISD Employees Indicted for FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — Three former Beaumont Independent School District employees have been indicted for embezzling money from a program receiving federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daryl Glenn Johnson, 44, Erin Gipson Johnson, 38, and Kailyn DeShondra Pete, 25, all of Beaumont, were indicted by a federal grand jury today on charges of conspiracy and fraud upon programs receiving federal funds.
According to the indictment, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, is alleged to have had 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 is alleged to have 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. Pete is alleged to have paid Daryl Johnson $500.00 from each of the BISD payroll checks she received. 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.
If convicted, the defendants each face up to 10 years in federal prison.
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.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Four Indicted for Newton County Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — Four East Texans have been charged in connection with a violent bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Collins, Jr., 24, of Jasper, Texas, Michael Dwayne Byerly, 20, of Newton, Texas, Xavier Odarius Clark, 21, of Jasper, Texas, and Khadijah Joy De’Inn Adams, 20, of Bon Weir, Texas, were indicted by a grand jury today and charged with federal violations.
According to the indictment, on June 25, 2014, law enforcement authorities were alerted to a robbery at the Sabine State Bank & Trust Company on Highway 63 in Burkeville, Texas. During the robbery, a bank employee was stabbed multiple times sustaining serious injuries. Video surveillance revealed a man wearing a black hooded top confronting the bank employee with a knife and a handgun. The bank employee struggled with the assailant and was stabbed approximately five times resulting in a punctured lung. The assailant fled the scene without taking any money from the bank. Law enforcement officers reviewed security surveillance from nearby businesses and were able to identify Collins as a person of interest. Further investigation revealed the alleged involvement of Byerly, Clark and Adams.
A federal grand jury returned a four-count indictment charging Collins, Byerly and Clark with bank robbery, conspiracy to commit armed bank robbery, possession of a firearm during a crime of violence, and accessory after the fact. Adams was also charged with accessory after the fact.
If convicted, Byerly, Clark and Adams each face up to 20 years in federal prison for the bank robbery charge, up to 5 years for the conspiracy charge, and a minimum of 5 years for the firearms charge. All four defendants face up to 10 years in federal prison for the accessory charge.
This case is being investigated by the Federal Bureau of Investigation, Newton County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Ohio Man Sentenced for Credit Card Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 29-year-old Columbus, Ohio man has been sentenced for his part in a credit card scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mohamed Laye Dioubate, a naturalized citizen from Guinea, was sentenced to 33 months in prison today during a hearing before Judge Marcia Crone. In December 2013, Dioubate was found guilty by a jury of possessing 15 or more unauthorized access devices in December.
According to information presented in court, on June 27, 2012, Dioubate was stopped on Interstate-10 in Beaumont for a traffic violation. A search of the vehicle revealed 158 fraudulent credit cards, a laptop computer and a credit card encoder. The credit cards contained various names and account numbers and had been used in multiple fraudulent purchases throughout the country. In November 2012, Dioubate was stopped on two separate occasions, once in Missouri and once in Indiana. During each of those stops, he was again found in possession of multiple fraudulent credit cards. Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations in April 2013.Citizens can visit the Federal Trade Commission’s website to learn more on how to protect themselves from identity theft schemes: http://www.consumer.ftc.gov/features/feature-0014-identity-theft.
This case was investigated by the Beaumont Police Department, U.S. Secret Service, St. Charles County, Missouri, Sheriff’s Office, and the Henry County, Indiana, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Brit Featherston.
Collin County Man Convicted for Failing to Register as A Sex OffenderRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 77-year-old McKinney, Texas man was found guilty for failing to register as a sex offender in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A jury found Larry Wayne Thompson guilty on July 30, 2014, for failure to register as a sex offender before U.S. District Judge Richard Schell. Thompson faces up to two years in federal prison at sentencing. A sentencing date has not been scheduled.According to information presented in court, Thompson was convicted of possession of child pornography in U.S. District Court for the Northern District of Oklahoma in 2000. As a result of this conviction, Thompson is required to register under the Sex Offender Registration and Notification Act. In 2011, Thompson moved to Corpus Christi, Texas, and then in 2013, he moved from Corpus Christi to McKinney, Texas. Thompson failed to register and update his registration to reflect his move to McKinney, Texas. Thompson was previously convicted for failing to register as a sex offender in the U.S. District Court for the Southern District of Texas in Corpus Christi in 2011.
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 United States Marshals Service and prosecuted by Assistant U.S. Attorneys William R. Tatum and Stevan A. Buys.Houston Man Guilty of Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty to bank robbery on July 29, 2014 before U.S. Magistrate Judge Zack Hawthorn.
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.
Thomas faces up to 20 years in federal prison. A sentencing date has not been set.
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.
###Grand Prairie, Texas Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Grand Prairie, 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.
Daniel Martinez pleaded guilty on Jan. 28, 2014 to conspiracy to distribute narcotics and was sentenced to 87 months in federal prison on july 28, 2014 by U.S. District Judge Marcia Crone.
According to information presented in court, in May 2010, Martinez became involved in a conspiracy to distribute marijuana and cocaine in the Eastern District of Texas. Martinez used cellular telephones to conduct coded conversations about drug trafficking activity with various co-conspirators. Martinez admitted responsibility for distributing approximately 900 kilograms of marijuana.
On May 12, 2011, a federal grand jury returned a seven-count second superseding indictment against Martinez and 15 co-defendants, charging them with numerous federal drug trafficking conspiracy and firearm violations.
Twelve co-defendants have pleaded guilty and been sentenced as follows:
- Armando Basaldua – sentenced to 57 months
- Paola Alonso – sentenced to 21 months
- Armando Iniguez – sentenced to 6 months
- Guadalupe Patricia Rangel-Salazar – sentenced to 71 months
- Jorge Enrique Perez-Solis – sentenced to 71 months
- Diego Hernandez – sentenced to 57 months
- Daniel Hernandez-Gutierrez – sentenced to 69 months
- Jose Frederico Flores – sentenced to 262 months
- Orthon Carranza Rodriguez – sentenced to 30 months
- Jonathan Belen Lugo – sentenced to 24 months
- Juan Antonio Roslaes – sentenced to 60 months
- Oscar Omar Guerra-Moreno – sentenced to 6 months
- Guadalupe Chavez-Figueroa – sentenced to 60 months
Two additional defendants, Eliezer Aleman and Luis Enrique Arguero, are currently fugitives from justice.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation and Homeland Security Investigations.
Dallas Man Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 51-year-old Dallas real estate recruiter has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Dewane Carr pleaded guilty on Feb. 13, 2014 to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, from July 2008 to August 2010, Carr conspired with others to defraud Wells Fargo Bank and Flagstar Bank by inflating the purchase price of residential properties in Dallas and requiring buyers to secure mortgage loans for the fraudulent amount. Excess loan funds were then used to pay kickbacks to Carr, who recruited buyers, and others for arranging the sale of the properties.
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 HUD-OIG and Federal Home Finance Agency-OIG and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Galveston County Man Sentenced for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44-year-old Galveston, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Brett Maurice Disiere pleaded guilty on Dec. 11, 2013 to bank robbery and was sentenced to 240 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on May 13, 2013, Disiere entered the Wells Fargo Bank located in the 4400 block of Dowlen Road in Beaumont, Texas, and presented the teller with a note demanding money while brandishing a knife. Disiere fled the bank with $5,500. He was identified from video surveillance camera photographs by tipsters after the robbery. Disiere admitted to robbing the bank after he was arrested in Conroe, Texas on May 21, 2015 just after the robbery of another bank there. Disiere was indicted by a federal grand jury on May 23, 2013.
This case was investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Former President and CFO of Advanced Materials Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 48-year-old Collin County businessman has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Guy Mortensen, formerly of Plano, Texas, pleaded guilty on Aug. 1, 2012 to bank fraud and was sentenced to 110 months in federal prison today by U.S. District Judge Ron Clark. Judge Clark also ordered Mortensen to pay restitution in the amount of $1,984,496.32.
According to information presented in court, Mortensen was the president and chief financial officer of Advanced Materials, Inc., a publicly traded company. In July 2007, Mortensen requested that Chase Bank extend and enlarge an existing $1.5 million line of credit for Advanced Materials. The loan was secured by Advanced Materials’ accounts receivable. In order to induce the bank to extend the loan, and enlarge the line of credit to $2 million, Mortensen inflated the accounts receivable numbers to make the company’s financial condition appear better than it actually was
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 Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Collin County Man Guilty of Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 35-year-old Allen, Texas man has pleaded guilty to mail fraud in in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Brian Curry pleaded guilty to mail fraud today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers. To facilitate the scheme, Curry solicited distressed homeowners through mail advertisements and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments. Curry would then sell the property to a new buyer representing that he was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised. In order to conceal the existing lien from the buyer, Curry financed the mortgage himself and had the new buyer send payments to a private mail box under his control. As a result of his fraudulent actions, Curry caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350.
Curry faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
Texas Doctor Convicted of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.
According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.
Mahmood faces up to 10 years in federal prison for the conspiracy conviction, 10 years for each health care fraud conviction and two years for each aggravated identity theft conviction. A sentencing date has not been set.The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorneys Alma Hernandez and Ken McGurk.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
Shreveport Attorney Sentenced to Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has been sentenced to federal prison in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty on Apr. 22, 2014 to a false statement in a bankruptcy proceeding and was sentenced to 60 months in federal prison today by U.S. District Judge Donald E. Walker. Davis was also ordered to pay restitution in the amount of $1 million and then immediately remanded into custody of the U.S. Marshals Service.
According to information presented in court, Davis, a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz, operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana. In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum. By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf. Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.” A client trust account for Davis’s law firm was used for escrow. After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures. In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana. They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11. A hearing was held on that motion in August 2010. During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account. In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorney Frank Coan.
Smith County Man Sentenced for Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 60-year-old Tyler, Texas man was sentenced to federal prison for making false statements on a loan application in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Bobby Gene Loggins pleaded guilty on Dec. 5, 2013 to making false statements to a bank and was sentenced to 51 months in federal prison on July 22, 2014 by U.S. District Judge Leonard E. Davis. Loggins was also ordered to pay restitution in the amount of $2,773,371.52.According to information presented in court, Loggins has been affiliated with Loggins Meat Company (LMC) in Tyler for more than 30 years. During most of that time, Loggins served as President and Chief Executive Officer of LMC. The company was founded in 1940 by Loggins’ father and operates as a wholesaler, retailer, and processor of meat and meat products. In March 2009, Loggins applied to Bank of Tyler for a revolving line of credit. In connection with the loan application, Loggins provided fraudulent financial information for LMC. Following approval of the loan, Loggins continued to provide false financial data when seeking advances on the credit line. Ultimately, LMC ceased operations in about August 2010.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
Brazoria County Drug Lord Sentenced to 22 Plus Years in Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The organizer and leader of a large scale drug trafficking ring responsible for moving multi-kilogram quantities of illegal drugs from Mexico to the United States has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Alejandro “Alex” Gonzales, 36, of Alvin, Texas, pleaded guilty on Jan. 30, 2014 to conspiring to possess with the intent to distribute over 5 kilograms of cocaine, over 1,000 kilograms of marijuana, and over 500 grams of methamphetamine and was sentenced to 270 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, Gonzales began acquiring multi-kilogram quantities of cocaine, marijuana, and methamphetamine from drug cartel suppliers in Mexico sometime in the late 2000’s. Those narcotics were subsequently smuggled into the United States and transported to Alvin, Texas for distribution. Gonzales and other members of the drug ring coordinated the sale of those narcotics to customers located in Texas, Oklahoma, Louisiana, Alabama, Mississippi, Florida, North Carolina, New York, and New Jersey.
On Aug. 8, 2013, a federal grand jury returned a six-count second superseding indictment against Gonzales and 27 other codefendants, charging them with numerous federal drug trafficking conspiracy and firearm violations.
During the course of the investigation, state and federal agents successfully arrested 40 individuals and seized large quantities of cocaine, marijuana, methamphetamine, $766,577 in U.S. currency, 30 vehicles, a boat, three residences, and 25 firearms. This case was the result of an extensive two and a half year joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This investigation was conducted by the U.S. Drug Enforcement Administration Galveston Resident Office, the Miami and Houston Division Offices, the McAllen District Office, and the Dickinson Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Internal Revenue Service, U.S. Customs and Border Patrol, U.S. Immigration and Customs Enforcement/Homeland Security Investigations, U.S. Marshals Service, Marine Interdiction Agency, Texas Department of Public Safety, Brazoria, Galveston, Harris, and Jefferson County (Texas) Sheriff’s Offices, and the police departments of Alvin, Beaumont, Galveston, Houston, League City, Pasadena, and Pearland, Texas. This case is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Michelle Englade.
New Boston, Texas Woman Sentenced for Ricin LettersRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 35-year-old New Boston, Texas woman has been sentenced to 18 years in federal prison on a biological weapons charge in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Assistant Attorney General for National Security John Carlin today.
On December 10, 2013, Shannon Guess Richardson pleaded guilty to an Information charging her with possession of a toxin for use as a weapon before U.S. Magistrate Judge Caroline M. Craven. Richardson was named in an indictment returned by a federal grand jury on June 27, 2013, charging her with threatening the President of the United States, mailing a threatening letter to New York City Mayor Michael Bloomberg, and mailing a threatening letter to Mark Glaze in Washington, D.C.Richardson was sentenced to 216 months in federal prison today by U.S. District Judge Michael H. Schneider and ordered to pay restitution in the amount of $367,222.29.
“Today's sentencing brings an appropriate and just end to what is surely one of our most unusual, even bizarre cases,” said U.S. Attorney Bales. “The investigation was also very challenging and I hope that East Texans are encouraged to know that their East Texas law enforcement proved to be amazingly resourceful, determined and focused in all facets of this prosecution. It was truly a great job.”
According to the information presented in court, during April-May 2013, Richardson made several online purchases of items for the purpose of producing ricin. These supplies included castor bean seeds and sodium hydroxide (lye). Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected. There is no known antidote or cure for ricin poisoning.
Richardson subsequently placed ricin onto threat letters addressed to President Barack Obama, Mayor Michael Bloomberg and Mark Glaze. On May 20, 2013, Richardson mailed the three threatening letters from the New Boston, Texas, Post Office. On May 30, 2013, Richardson traveled to the Shreveport, LA, Police Department and reported that her husband was responsible for the ricin-laced letters.
Richardson was arrested on June 7, 2013, in Mt. Pleasant, Texas, and has been detained since that time.
This case was investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Postal Inspection Service, the Texas Department of Public Safety, the New Boston, Texas Police Department, the Shreveport, Louisiana, Police Department and the New York City Police Department. This case was prosecuted by Assistant U.S. Attorneys Frank Coan, Ryan Locker, and Brit Featherston as well as Trial Attorney Jolie Zimmerman of the Justice Department’s National Security Division.
East Texans Arrested on Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - U.S. Attorney John M. Bales announced today that six individuals have been arrested following a lengthy investigation into illegal gambling, money laundering and drug trafficking in the Eastern District of Texas.
On July 15 2014, a combined task force of federal, state and local law enforcement executed six federal arrest warrants and four federal search warrants in the Tyler, Texas and Gladewater, Texas area as a result of a joint investigation by the Federal Bureau of Investigation, Smith County Sheriff's Office, U.S. Drug Enforcement Administration, and the Texas Racing Commission.
The operation resulted in the arrest of all six defendants and the seizure of over $30,000 cash, methamphetamine, and several firearms. The following defendants were arrested and appeared before U.S. Magistrate Judge K. Nicole Mitchell on charges of conspiracy to distribute methamphetamine, prohibition of illegal gambling businesses, and conspiracy to money launder:
OMAR BONIFACIO BONILLA, a/k/a “Pelon,” 32, of Tyler;
RENAULT LANSING KAY, a/k/a “Nault Pete,” a/k/a “Chocolate,” 47, of Tyler;
JESSICA MARIA BONILLA, 31, of Tyler;
JOEL ORLANDO BONILLA-LOYA, 36, of Tyler;
GUILLERMO RIVERA-BONILLA, 58, of Tyler; and
SHEENA SHAVETTE PERRY, 31, of Tyler.If convicted, the defendants face as much as life in federal prison.
Homeland Security-Deportation and Removal Operations, Tyler Police Department, and the Texas Department of Public Safety also assisted in the arrests and searches. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Richard Moore.
A complaint or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County Man Sentenced for Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 33-year-old Port Neches, Texas man has been sentenced to 25 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Dale Harrison pleaded guilty on Nov. 19, 2013 to production of child pornography and was sentenced to 300 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on Apr. 18, 2013, a federal search warrant was executed at Harrison’s Port Neches home. During the search, agents located and seized an external hard drive and a cell phone from the home and a camera owned by Harrison that had been recently pawned at a local pawn shop. Forensic examinations of the items revealed they contained images of child pornography. Agents were able to determine that the images containing child pornography on the camera were taken at Harrison’s residence in Port Neches and involved a child younger than 18 years of age engaged in sexually explicit conduct and that Harrison had persuaded and ordered this minor to engage in this conduct.
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 Homeland Security Investigations, HSI-ICE, the Port Neches Police Department, the Beaumont Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
Former Hospital Employee Indicted for Criminal Hipaa ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A former employee of an East Texas hospital has been indicted for criminal violations of the Health Insurance Portability and Accountability Act, more commonly known as HIPAA, in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joshua Hippler, 30, formerly of Longview, Texas, was indicted on charges of Wrongful Disclosure of Individually Identifiable Health Information. According to the indictment, from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain. HIPAA contains provisions protecting the privacy of individually identifiable health information.
If convicted, Hippler faces up to ten years in prison.
The investigation leading to the charges was conducted by agents from the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service. Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.
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.
Houston Man Arrested for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has been arrested for a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas was taken into custody in Houston on June 25, 2014 and went before U.S. Magistrate Judge Keith F. Giblin on June 26, 2014 for an Initial Appearance.
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.
If convicted, Thomas faces up to 20 years in federal prison.
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.
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.
Collin County Woman Guilty in Plano ISD Embezzlement SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 68-year-old Prosper, Texas woman has pleaded guilty in connection with her role in a conspiracy to embezzle millions from the Plano Independent School District, announced U.S. Attorney John M. Bales today.
Carol Ann LaRue pleaded guilty to an Information charging her with conspiracy to commit federal program fraud today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, LaRue owned and operated Fire Systems Specialists (FSS) and Digital Security Solutions (DSS), companies supposedly in the business of maintaining fire safety systems and security systems. Between May 2011 and December 2013, LaRue conspired with Plano Independent School District employee, Kris Wilson Gentz, to defraud Plano ISD by submitting fraudulent invoices for services that were not rendered and products that were not provided. When payment was made to FSS and DSS, LaRue and Gentz would split the profits between themselves. As a result of the fraudulent scheme, Plano ISD suffered a loss that did not exceed $7 million. LaRue is responsible for losses that do not exceed $2.5 million. Gentz pleaded guilty to the same charges on Apr. 1, 2014 and is awaiting sentencing.
"The other shoe has now dropped in the Kris Gentz-Carol LaRue fraud scheme,” said U.S. Attorney Bales. “These defendants not only cheated the taxpayers in Plano ISD, they robbed the children. I congratulate the investigative team for a job well done. This case also should serve as a warning to others who somehow believe that they can rip off the public and not be held accountable. There will always be a reckoning.”
LaRue faces up to five years in federal prison. A date for sentencing has not yet been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.Arlington Man Sentenced for Counterfeiting ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 58-year-old Arlington, Texas, man has been sentenced for counterfeiting violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cloyd Ray Knight, III pleaded guilty on May 9, 2013 to passing counterfeit bills and was sentenced to 69 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, Knight began manufacturing counterfeit $100 United States Federal Reserve Notes at his home in Arlington sometime in 2004-2005. He developed a manufacturing process that included using newspaper print paper, painting the paper with acrylic, printing a simulated watermark on the paper, printing a simulated security thread on the paper, printing a front and rear image on the paper, and spraying the notes with a dulling coat. The process changed over time based on his experience and experimentation. After printing the counterfeit $100 bills, Knight would pass or use the counterfeit bills to purchase goods and then receive change in legitimate bills from retail stores located in east Texas and west Louisiana. Considered one of the largest digital counterfeiters in recent history, Knight successfully passed more than $400,000 in counterfeit $100 bills.
Knight was indicted by a federal grand jury on January 23, 2013. After pleading guilty in May 2013, he absconded. Knight was then rearrested in January 2014.
This case was investigated by the United States Secret Service and was prosecuted by Assistant U.S. Attorney Frank Coan.
Anderson County Man Sentenced for Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 50-year-old Palestine, 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.
Alvin Westley pleaded guilty on Jan. 9, 2014 to possession of child pornography and was sentenced to 156 months in federal prison today by U.S. District Judge Leonard E. Davis.According to information presented in court, on Jan. 26, 2011, Westley knowingly possessed child pornography. At the time of the offense, Westley was a registered sex offender having been previously convicted of three counts of indecency with a child. Westley was indicted by a federal grand jury on Oct. 23, 2013, and charged with federal child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the U.S. Department of Homeland Security - Homeland Security Investigations (DHS-HSI), the Texas Department of Public Safety – Criminal Investigations Division, and the Anderson County Sheriff's Office. Assistant U.S. Attorney Nathaniel C. Kummerfeld prosecuted this case.U.S. Attorney Announces Selection of Plano Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – U.S. Attorney John M. Bales announced the appointment of J. Kevin McClendon as the Attorney in Charge of the Plano office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney (AUSA) J. Kevin McClendon will oversee the daily operations of the Plano office which includes a staff of 31 federal prosecutors, support, and administrative personnel.
Born and raised in Texas, McClendon graduated from Texas Tech University in 1986 and Texas Tech University School of Law in 1989. He has been an AUSA for the U.S. Attorney’s Office for the Eastern District of Texas since September 2004, serving as the Affirmative Civil Enforcement (ACE) Coordinator, the Professional Responsibility Officer (PRO) for the Criminal Division, Civil Health Care Fraud Coordinator, and the Plano Office Intern Co-coordinator. Prior to joining the U.S. Attorney’s Office, McClendon was an Assistant Attorney General in the Medicaid Fraud Control Unit of the Texas Attorney General for nearly 10 years, working criminal health care fraud cases. He was also a Special Assistant U.S. Attorney for the Western District of Texas, an Assistant Criminal District Attorney in Lubbock County, and worked as an associate at a small law firm.
“I am very pleased to announce that Kevin McClendon has been selected to lead our busy Plano office,” said U.S. Attorney Bales. “He is the epitome of quiet strength which he couples with a wisdom that will serve not only our office well but also our law enforcement partners. Kevin is absolutely the right person to lead us to the next level of achievement.”
The Eastern District of Texas includes 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 51 federal prosecutors.U.S. Attorney Announces Hiring of Beaumont Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT – U.S. Attorney John M. Bales announced the hiring of Matt Quinn as the Attorney in Charge of the Beaumont office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney (AUSA) Matt Quinn joined the Beaumont office this week where he will oversee the daily operations of the office which includes a staff of 36 federal prosecutors, support, and administrative personnel.
Matt Quinn was born and raised in Southeast Texas graduating from Vidor High School in 1994. He graduated with a bachelor’s degree from Texas A&M University in 2000 and the University of Arkansas at Little Rock School of Law in 2003. Matt was a Deputy Prosecuting Attorney in Little Rock, Arkansas, for five years, where he was assigned to the gang unit and prosecuted numerous homicides and other violent crime. In 2008, Matt joined the Western District of Arkansas as an Assistant U.S. Attorney and was assigned to the Texarkana Branch Office, which happens to be located on the Texas/Arkansas state line and is a joint office with the Eastern District of Texas. As an AUSA in Texarkana, Matt worked side-by-side with Eastern District of Texas prosecutors handling major drug trafficking cases and violent crimes.
“Matt Quinn was raised in southeast Texas so it should be no surprise to anyone that he comes back to Beaumont with all the qualities that we admire – hard-working, smart, conscientious and caring,” said U.S. Attorney Bales. “He is a great addition to our Beaumont office and will do a wonderful job working with our law enforcement partners.”
The Eastern District of Texas includes 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 51 federal prosecutorsSmith County Woman Guilty of Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A 44-year-old Whitehouse, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kristi Isom pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, in September 2011, Isom solicited an individual to intentionally set fire to and burn a residence on East FM 344 in Whitehouse, Texas. Isom admitted that she advised the individual of the general habits of the inhabitants of the home so that the individual could set the house on fire while it was unoccupied. After the residence was set on fire and burned, the owner of the residence filed a claim for insurance proceeds due to damage cause by the fire. Isom was listed as a co-owner on the insurance policy and admitted that she endorsed a check drawn on the account of “The Hartford Large Loss Organization” in the amount of $2,500. This check was one of several that were deposited, sent and delivered by mail. The total claim paid was $89,950. A federal grand jury returned an indictment on Dec. 18, 2013 charging Isom with federal violations.
Isom 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 Department of Public Safety, Criminal Investigation Division, the Smith County Sheriff’s Office, Smith County Fire Marshal, U.S. Postal Inspector’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Jefferson County Man Guilty of Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 44-year-old Port Arthur, Texas man has pleaded guilty to federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., pleaded guilty to tax evasion today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, for the calendar year 2009, Victor failed to disclose all of his taxable income resulting in a tax loss of approximately $25,935.58. Victor was indicted by a federal grand jury on Apr. 2, 2014.
Victor faces up to 5 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Henderson County Woman Guilty of EmbezzlementRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A 54-year-old Murchison, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Deborah Cornett pleaded guilty to an Information charging her with embezzlement by a bank employee today before U.S. Magistrate Judge K. Nicole Mitchell.
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 approximately $334,736.43 from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
Cornett faces up to 30 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Two Guilty of Racketeering in Chinese Restaurant Employment Referral ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A man and woman have pleaded guilty to 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, 54, and Chenglun Ma, 57, both of Houston, pleaded guilty to RICO conspiracy on June 3, 2014 before U.S. Magistrate Judge Keith Giblin.
According to court documents, two employment referral businesses operating out of Houston recruited unauthorized aliens, mostly from Mexico and Central America, for work in the Chinese restaurant industry. These workers routinely worked 12 hours a day, six days a week, they were not paid overtime, not permitted to receive tips or gratuities, and were paid in cash by the restaurants. The restaurants profited by avoiding payment of employment taxes and did not provide any benefits such as health insurance, vacation or sick time. Workers were paid far less than minimum wage, did not receive health examinations, food safety training, or any job training at any time while employed.
Additionally, these workers were subject to unfavorable living arrangements provided by the restaurant operators, either at the operator’s residence or at another off-site residential location. Living arrangements were overcrowded and sometimes consisted of air mattresses or floors for sleeping. For instance, 18 people were found to be housed in a 2000 square foot house.
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.
Sun and Ma each face up to 20 years in federal prison at sentencing. Sentencing dates have not been set.
"I congratulate the investigative team on what is surely a signature accomplishment,” said U.S. Attorney Bales. “The defendants abused the aliens who came looking for work and they abused our nation's immigration laws. Now they will be held accountable under the law and then what good will their ill-gotten riches be?" We will continue to be vigilant."
"Those who think that they can build their businesses on a foundation of corrupt and illegal activities will eventually see those enterprises crumble," said SAC Moskowitz. "Today's pleas cap a multi-year investigation of the Hong Li Job Agency and the Tai Shan Employment Agency by HSI and our partners in the Eastern District of Texas that weakened the business foundations and brought down these two enterprises."This case is being 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 is being prosecuted by Assistant U.S. Attorneys in Beaumont.
#######Nigerian Fugitive Arrested for Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 43-year-old Nigerian fugitive has been arrested at a Houston airport and will now face federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Vivian Yusuf, of Port Harcourt, Nigeria, the former owner of Ivy Health Care Supply, a Houston area medical supply company, was arrested on 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 and a fugitive since March 2011.
According to the indictment, from June 2007 through May 2009, Yusuf, 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 appeared in federal court in Houston for an initial appearance and is being transferred to the Eastern District of Texas.
Odelugo and Reese were indicted for their involvement in similar health care fraud schemes. "Ike" 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. James 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.
If convicted, Yusuf faces up to 10 years in prison for each count of conspiracy and health care fraud and up to 2 years in prison for each count of aggravated identity theft. A grand jury indictment is not evidence of guilt.This case is being 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 is prosecuting this case.
#######Houston Man Sentenced for Drug Trafficking Conviction in Liberty CountyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 51-year-old Houston 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.
Tomas Alonso Moreno pleaded guilty on Jan. 14, 2014 to possession with intent to distribute cocaine and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 22, 2013, Moreno was stopped in Liberty County, Texas for a defective brake light. Moreno appeared nervous and was driving while his license was suspended. He consented to a search of the vehicle after denying that he was carrying anything illegal. As officers prepared to search the vehicle, Moreno confessed to having cocaine in the center console. Officers located the cocaine and arrested Moreno. A federal grand jury returned an indictment on Nov. 6, 2013, charging Moreno with drug trafficking violations.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
#######Newton County Former Youth Pastor Guilty of Child Pornography ViolationRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old former youth pastor has pleaded guilty to 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 to production of child pornography today before 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.
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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.
Ethridge faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations, the Newton Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Lauren Gaston.Gregg County Man Sentenced in Counterfeit Silver SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 47-year-old Longview, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Leroy Frattarola pleaded guilty on Mar. 5, 2014, to possessing counterfeit silver bars with the intent to defraud another and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Sep. 13, 2013, Frattarola possessed approximately 90 one-ounce silver bars, stamped with the impression, “.999 FINE SILVER” and “NORTHWEST TERRITORIAL MINT” with intent to defraud another. Frattarola admitted to possessing the counterfeit bars in Longview, Texas and to engaging in similar criminal conduct on other occasions involving a total of nine victims. Frattarola was indicted by a federal grand jury on Oct. 23, 2013.
Frattarola was also ordered to pay a total of $28,720.40 in restitution to be divided among nine victims.
This case was investigated by the U.S. Secret Service, Longview Police Department, Kingsville Police Department, Terrell Police Department, Grand Prairie Police Department, and the Brazoria County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Jim Noble.
#######Smith County Woman Sentenced for Food Stamp Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 42-year-old Bullard, Texas, woman has been sentenced to federal prison for her role in a food stamp fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Monica Bunch, also known as, Monica Hernandez, pleaded guilty on Aug. 8, 2013 to conspiracy to unlawfully use, transfer, acquire, and possess SNAP (Supplemental Nutrition Assistance Program) benefits and was sentenced to six months in federal prison today by U.S. District Judge Michael H. Schneider. Bunch was also ordered to pay restitution in the amount of $72,846.09 to the U.S. Department of Agriculture and to forfeit the proceeds of the fraud scheme.
According to the indictment, from January 2007 through March 31, 2012, Bunch, a clerk with the Texas Health and Human Services Commission (HHSC) in Jacksonville, Texas, and her co-conspirators, devised and carried out a scheme to unlawfully obtain SNAP benefits. In her position as clerk at HHSC, Bunch identified dormant SNAP accounts belonging to individuals who did not live in or around Jacksonville, Texas, or who had moved away from the Jacksonville, Texas, area. Using the dormant accounts, Bunch created replacement Lone Star cards and forged and created documents to conceal the unlawful creation of the cards. Bunch sold the cards to the other defendants at approximately half of the card's actual SNAP benefit value. Bunch also provided the defendants with the PIN numbers associated with the cards. The defendants used the cards to purchase food from retailers in and around the Jacksonville, Texas, area and the Tyler, Texas, area.
On July 25, 2013, a federal grand jury returned an indictment charging Bunch, Ernest Grady, 47, Evelyn Whitaker, 47, Genoveve Servin, 49, Maria Silva, 50, and Maria Delrosario Padron a/k/a “Chayo”, 38, all of Jacksonville, with conspiracy to unlawfully use, transfer, acquire, and possess SNAP Benefits.
“The United States Department of Agriculture, Office of Inspector General-Investigations is dedicated to combating fraud and abuses in SNAP,” said Special Agent-in-Charge Mary L. Lewis of the United States Department of Agriculture, Office of Inspector General-Investigations (USDA-OIG). “I commend the coordinated investigative efforts of State and Federal agencies that led to the successful prosecution of this case.”
U.S. Attorney Bales also praised the investigative team and added, “SNAP is an expensive and vitally important aid program that assists deserving individuals and families who might otherwise go hungry. Hopefully, the felony conviction and sentencing to prison of Monica Bunch sends a message to anyone who thinks they can rip off the American taxpayer – you will be held to account.”
SNAP is a federal government program, administered by the United States Department of Agriculture (USDA) Food and Nutrition Service (FNS), which helps qualifying individuals and families buy food.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General-Investigations, U.S. Secret Service, and the State of Texas, Health and Human Services Commission, Office of Inspector General-Internal Affairs. Assistant U.S. Attorney Nathaniel C. Kummerfeld prosecuted this case.
#######Parker County Woman Sentenced in Extensive Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 53-year-old Aledo, Texas woman has been sentenced to federal prison for her role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Donna Shirley Cobb pleaded guilty on Oct. 16, 2013 to conspiracy to defraud the United States and was sentenced to 21 months in federal prison today by U.S. District Judge Thad Heartfield. Cobb was also ordered to pay restitution in the amount of $2,151,376.00.
According to information presented in court, from 2005 to 2008, Cobb, an escrow officer with Title Texas, Inc., was involved in a conspiracy to defraud lending institutions by providing fraudulent documents and causing residential loans to be provided based on the fraudulent information. One such property was located on Carlton Court in McKinney, Texas. A total of 28 properties located in Cedar Hill, Cresson, Dallas, Euless, Fairview, Fort Worth, Frisco, Heath, Hurst, McKinney, Murphy, Plano, Prosper, and Watauga, Texas, were involved in the scheme.
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 Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
#######Denton County Man and Woman Sentenced for Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A Denton County, Texas man and woman have been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Jerome Edwards, 40, and Cheri Joann Edwards, 38, both of Lewisville, Texas, pleaded guilty on Oct. 28, 2013 to conspiracy to defraud the government. Cheri Edwards was sentenced to eight months in federal prison and ordered to pay restitution in the amount of $67,574.83 today by U.S. District Judge Thad Heartfield.
Michael Edwards was sentenced to 46 months in federal prison and ordered to pay restitution of $419,739.00 on Apr. 22, 2014 by Judge Heartfield.
According to information presented in court, beginning in November 2008, Michael and Cheri Edwards devised a scheme to defraud the government by submitting fraudulent federal income tax returns claiming $3,860,722.00 in refunds for tax years 2006 through 2008, which far exceeded that to which they were entitled. To facilitate the scheme, the defendant’s submitted Form 1099-Original Issue Discount (OID) to falsely identify federal income tax withholdings. As a result of this fraudulent activity, Michael Edwards received a federal tax refund in February 2009 in the amount of $324,536.84 for the 2007 tax year. In April 2009, Cheri Edwards received a federal tax refund in the amount of $77,451.00 for tax year 2008. The defendants were indicted by a federal grand jury on Sep. 12, 2012.
This case was investigated by IRS Criminal Investigations and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
#######Cherokee County Man Guilty in Armed Robbery Crime SpreeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Jacksonville, Texas man has pleaded guilty in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Jonathan Roshard Brown pleaded guilty to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and possessing a firearm during a crime of violence today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Brown and three 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 Brown and two others stole $9,465 from the Wal-Mart Supercenter in Jacksonville. On Nov. 2, 1012, Brown and two others 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 and two others 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.
Brown faces up to 20 years in federal prison for the Hobbs Act violation and a minimum of 10 years in federal prison for the firearms violation. A sentencing date has not been set.
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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.Dallas Man Indicted for Smuggling Hummingbirds from Mexico to USRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 53-year-old Dallas man has been indicted on smuggling charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Carlos Delgado Rodriguez was indicted by a federal grand jury on May 14, 2014 and charged with smuggling dead hummingbirds from Mexico into the United States.
According to the indictment, from February 2013 through January 2014, Rodriguez is alleged to have unlawfully imported approximately 61 dead hummingbirds, of various varieties, into the United States for sale. The five-count indictment specifically alleges that the importation of dead hummingbirds violates the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Migratory Bird Treaty Act (MBTA), the Lacey Act, the federal smuggling law, and Texas State Law.
If convicted, Rodriguez faces up to 20 years in federal prison.
This case is being investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.