Eastern District of Texas
Press releases recorded for this federal judicial district.
Galveston County Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 37-year-old Bacliff, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Samuel David Sanford, III, pleaded guilty on Oct. 8, 2013 to bank robbery and was sentenced to 72 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, on Dec. 19, 2012, Sanford entered the JP Morgan Chase Bank located in the 3100 block of 16th Street in Orange, Texas, and presented the teller with a threatening note demanding money. Sanford was given $25,859.00 and fled the bank. He was identified by tipsters after the robbery and indicted by a federal grand jury on Jan. 23, 2013.
Sanford has also been ordered to pay restitution in the amount of $25,859.00.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Wood County Man Sentenced for False Statement on Mortgage AppRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Quitman, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today
Daniel Huffman, also known as Steven Ball, pleaded guilty on Feb. 10, 2014 to making a false statement on a loan application and was sentenced to 23 months in federal prison today by U.S. District Judge Michael H. Schneider. Huffman was also ordered to pay restitution in the amount of $196,028.52.
According to information presented in court, on Jan. 23, 2012, Huffman applied for a mortgage loan under the false name of Steven Ball. Huffman was indicted by a federal grand jury on Oct. 23, 2013 and charged with federal violations.
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 U.S. Secret Service and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Authorities Seek Tyler Man in Cocaine ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Tyler, Texas man is being sought by authorities in a drug conspiracy case in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Apr. 9, 2014, Tyler Police Department, Federal Bureau of Investigation, and Texas Rangers executed a search warrant for narcotics at a residence located in Tyler Texas. This was the result of a one-year undercover narcotics investigation led by the Tyler Police Department in conjunction with the F.B.I. Law enforcement officials arrested Micol Jauron Sears, 39, of Tyler. Sears was charged in a federal indictment with conspiracy to possess with intent to distribute cocaine base. Federal and local law enforcement officials are seeking a second suspect, also named in the indictment, identified as Calvin Donell Dorsey, a 37-year-old black male, of Tyler. Dorsey is charged with conspiracy to possess with intent to distribute cocaine base. If you have any information to the whereabouts of Dorsey please contact your Federal or local law enforcement agency.
Attached: Photo of Calvin Donell Dorsey
Anderson County Man Sentenced for Sexual Exploitation of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — U.S. Attorney John M. Bales announced today that an Anderson County man has been sentenced for the sexual exploitation of children in the Eastern District of Texas.
Robbie Newby, 46, of Grapeland, Texas, was indicted by a federal grand jury on April 17, 2013, and pleaded guilty on January 9, 2014, to sexual exploitation of children. Newby was sentenced on April 23, 2014, to 30 years in federal prison by United States District Judge Leonard E. Davis.
According to the information provided in court, on or about March 14, 2012, Newby knowingly used and coerced a minor under the age of sixteen to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
This case is being investigated by the United States Department of Homeland Security - Homeland Security Investigations (DHS-HSI) and the Anderson County Sheriff's Office (ACSO). The case is being prosecuted by Assistant United States Attorney Nathaniel Kummerfeld.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.
####Shreveport Attorney Guilty of Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has pleaded guilty to federal violations in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty to an Information charging him with making a false statement in a bankruptcy proceeding today.
According to information presented in court, Davis is a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz. He also 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.
Davis faces up to 5 years in federal prison and a fine of $250,000, 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 Frank Coan.
####Kountze Man Pleads Guilty in Fraud CaseRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 53-year-old Kountze, Texas man has pleaded guilty in connection with his role in theft of government property, announced U.S. Attorney John M. Bales today.
Tony Lynn Thornton, Sr. pleaded guilty to an Information charging him with theft of government property of a value of less than $1000 today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in August 2007, Thornton was the executive director and also served as a member of the board of directors of the Hardin County Disaster Recovery Alliance (HCDRA), a non-profit organization chartered by the State of Texas. HCDRA’s main function and purpose was to operate exclusively for charitable, educational, and faith-based purposes, including but not limited to improvement of the condition of victims of Hurricane Rita, giving priority to the elderly, the disabled, the poor and the underprivileged. Thornton controlled and operated the HCDRA residential repair and renovation program. As part of his duties, Thornton selected contractors that were used to repair hurricane damaged homes in Hardin, Jefferson, and Orange Counties. Thornton was to secure the payment for the contractors after each repair job was finished, and inspect and verity that the work was completed. Thornton maintained control over the HCDRA checking account, often writing and signing checks to pay HCDRA vendors and contractors. On or about May 5, 2007, Thornton’s wife incurred a charge on her personal Citi Bank Advantage Credit card in the amount of $627.83. On May 15, 2007, Thornton wrote a check made out to “City Master Carpenters” on the HCDRA checking account. He then signed the check on behalf of HCDRA. The check was then sent, along with a copy of Thornton’s wife’s credit card statement to Citi Bank where the HCDRA check was processed and her account credited in the amount of the check. Thornton knew that the charge was not made for the benefit of HCDRA, and he intended to convert the funds for his own use or that of another to pay off the outstanding credit card debt, without the authority of the HCDRA.
Thornton faces up to one year in federal prison, a fine not to exceed $100,000.00 and restitution. A date for sentencing has not yet been set.
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The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Joseph Batte.Wood County Man Sentenced for Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsProject Safe Neighborhoods sends Convicted Felon to Federal Prison For Possessing a Stolen Firearm
TYLER, Texas - A 29-year-old Dike, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Kerry Lynn Sanders pleaded guilty on December 4, 2013, to possessing a stolen firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on March 19, 2013, Sanders was stopped by Wood County Sheriff’s Deputies due to an outstanding arrest warrant. The deputies arrested Sanders and performed an inventory of Sanders’ vehicle. During the inventory, the deputies discovered a 20gauge, pump-action shotgun behind the driver’s seat. Sanders admitted that he knowingly possessed the shotgun without the consent of the owner, and with the intent to deprive the owner of the shotgun.
Sanders was indicted by a federal grand jury on September 25, 2013, for possessing the shotgun after having been previously convicted of multiple felony crimes including Theft, Attempted Evading Arrest with a Vehicle, Possession of a Controlled Substance, and Aggravated Robbery. Federal law prohibits the possession of stolen firearms and further prohibits convicted felons from owning or possessing firearms or ammunition.
This conviction is yet another important outcome from Project Safe Neighborhoods (PSN), a national priority of the United States Department of Justice. PSN is designed as a partnership between federal and local law enforcement to reduce violent crime and gun-related crime through the vigorous enforcement of the criminal provisions of the federal firearms laws.
This case was investigated by ATF and the Wood County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Jim Noble.
####Pasadena Man Sentenced to 300-month Prison Term in Multimillion Dollar Investment Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Gary Lynn McDuff, 59, was sentenced to 300 months in prison today for his role in conspiring to defraud investors of almost $11 million in an investment fraud scheme and laundering the proceeds in the Eastern District of Texas, announced U.S. Attorney John M. Bales. United States District Judge Richard A. Schell also ordered the payment of over $6.5 million in restitution to the victims of the fraudulent scheme. McDuff’s fellow conspirators, Gary Lancaster, 62, of Oregon, and Robert Reese, deceased, of Carmel, California, previously pleaded guilty and were sentenced to terms of imprisonment for their roles in the scheme.
According to evidence presented during the federal trial, McDuff and Lancaster agreed to create the Lancrorp Investment Fund, to draft a prospectus for the Fund, and to solicit investments from individuals across the United States. While McDuff controlled the operation, Lancaster agreed to serve as the “front” since McDuff could not possess a securities license or sell securities because of a past felony conviction. McDuff recruited Reese to help sell the investment despite the fact that Reese had been barred by the State of California from selling securities. McDuff, Lancaster, and Reese made numerous false representations to their investors in order to induce payments, including representations that the Fund would only invest in A+ or A1 rated bonds, that the principal of each investment would be insured and never at risk, and that Lancaster had experience operating this type of investment. McDuff, Lancaster, and Reese never disclosed McDuff’s felony conviction or Reese’s securities ban. McDuff then laundered the criminal proceeds in order to promote the operation of the fraudulent scheme. After hearing the evidence, the jury needed just six minutes to convict McDuff on the conspiracy and laundering charges.
“This significant sentence reflects how seriously we take investment fraud. We will not tolerate false representations being made to investors in order to take their money,” said U.S. Attorney Bales.
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 Internal Revenue Service and prosecuted by Assistant United States Attorneys Shamoil T. Shipchandler and Camelia Lopez.
####Final Defendant Sentenced in Foreclosure Rescue/Drug Distribution SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 43-year-old McKinney, Texas man has been sentenced to federal prison in connection with a combination foreclosure rescue and drug distribution scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Julius Williams pleaded guilty on Aug. 21, 2013 to conspiracy to commit mail and wire fraud and was sentenced to 46 months in federal prison today by U.S. District Judge Marcia Crone. Williams was also ordered to pay $1,432,208.00 million in restitution.According to information presented in court, from February 2007 to June 2012, Jarrod Williams, Julius Williams, and Charles Williams, controlled and operated Applied Investment Strategies, Inc. (AIS), which marketed itself as a foreclosure rescue service offering assistance to homeowners at risk of foreclosure. However, once a homeowner detained AIS, the defendants fraudulently used the customer’s personal identification information to prepare and send false military orders to banks and lending institutions in order to claim relief from foreclosure under the Servicemember’s Civil Relief Act. AIS would then lease out the home and collect rental payments for AIS’ benefit. The scheme involved approximately 38 homes throughout North Texas and also extended to interfering in the repossession of automobiles. After at least one of the fraudulently-acquired properties was vacated, Charles Williams, Christopher Carter and Sean Harrell turned it into a marijuana grow operation that housed approximately 1,300 marijuana plants that were intended for distribution. A federal grand jury returned an indictment on July 11, 2012, charging the defendants with federal violations.
Jarrod Williams, 34, of McKinney, Charles Williams, 39, of McKinney, Christopher Carter, 34, of Leicester, England, and Sean Harrell, 38, of Dallas are each currently serving prison sentences ranging from 41 to 57 months.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.
####East Texas Men Sentenced for Methamphetamine TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two East Texas men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chadwick Marvin Thompson, 36, of McKinney, pleaded guilty on Nov. 21, 2013, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Leonard E. Davis. As part of his plea, Thompson has agreed to the forfeiture of $8,700 cash along with six firearms and ammunition.
Brandon Lee Lagrone, 36, of Carthage, Texas, pleaded guilty on Dec. 9, 2013, to using a communication facility to facilitate the commission of a felony and was sentenced to 36 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on multiple occasions in 2012 and 2013, Thompson sold methamphetamine and firearms to others. On July 20, 2013, Lagrone used a telephone to facilitate the commission of the felony offense of possession with intent to distribute methamphetamine. Thompson, Lagrone and two others were indicted by a federal grand jury on Mar. 27, 2013, and charged with drug trafficking violations.
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This case was investigated by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Liberty County Man Sentenced for Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 70-year-old Daisetta, Texas man has been sentenced to five years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenneth Claude Davenport pleaded guilty on Sep. 25, 2013 to possession of child pornography and was sentenced to 60 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on Mar. 16, 2011, law enforcement officers executed a search warrant at Davenport’s residence in Liberty County, Texas during which two computers and a hard drive were seized. A forensic examination of the computers and equipment revealed 20 videos containing approximately 1,500 images of child pornography. These images included prepubescent minors engaging in sexually explicit conduct, including depictions of violence and minors engaging in sexually explicit conduct with adults. Davenport admitted to using the computer to download and view child pornography approximately twice a week. Davenport was indicted by a federal grand jury on June 20, 2013 and charged with child pornography violations.
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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.
This case was investigated by the U.S. Secret Service, Houston Field Office Internet Crimes Against Children Task Force and the Liberty Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Former Beaumont ISD Employees Guilty of Stealing over $4 MillionRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, 35, of Beaumont, pleaded guilty to the charge of fraud upon programs receiving federal funds today before U.S. District Judge Ron Clark.
Sharika Baksh Allison, 43, of Beaumont, pleaded guilty to the charge of conspiracy to commit fraud upon programs receiving federal funds today before Judge Clark.
According to information presented in court, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, devised schemes in which they embezzled over $4 million from BISD. McCraney and Allison were indicted by a federal grand jury on Jan. 8, 2014.
“The guilty pleas are an important milestone, not just for the Government and the Defendants, but for citizens of Beaumont, said U.S. Attorney Bales. “Lately, much of the news coming from BISD has been disappointing but its mission to educate Beaumont’s children remains critically important. The joint task force will continue to diligently work to insure that individuals who are ripping off BISD and impugning both the mission, and the many good public servants who are committed to that mission, are held accountable.”
“These defendants knowingly and willfully abused their position of trust to steal education funds that were supposed to be used to provide services for the most innocent of victims – school children. That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s South Central Regional Office. “I’m proud of the work of OIG Special Agents and our law enforcement colleagues for holding these individuals accountable for their criminal actions.”
“The admission of guilt today by these defendants is one more step in the process of restoring the public’s faith and belief in law and order in our community,” said Jefferson County District Attorney Cory Crenshaw. “I sincerely hope the mission of our task force is made evident by these guilty pleas which allow our entire community to see clearly that we have people who allow their own greed to put the future of our children at great risk. We will continue in our goal to do what is required to bring all of those responsible to justice and I continue to ask that those with knowledge of wrongdoing within our school district to promptly come forward.”
McCraney faces up to 10 years in federal prison and restitution of $4,041,705.27. Allison faces up to 5 years in federal prison and restitution of up to $1,351,983.11. Sentencing dates have not been set.
This case is being prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
####Port Arthur Man Indicted on Federal Income Tax Evasion ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44 year-old Port Arthur, Texas man has been indicted for income tax evasion, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., was indicted on April 2, 2014, and charged with four counts of failing to report taxable income during the calendar years 2007 through 2010. Victor is accused of failing to report taxable income in excess of $361,000, leaving him with a tax liability of over $69,000.
If convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.The case is being investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell.
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.
####Collin County Man Guilty in Plano ISD Embezzlement SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 59-year-old Princeton, Texas man has pleaded guilty in connection with his role in a conspiracy to embezzle over $2.5 million from the Plano Independent School District, announced U.S. Attorney John M. Bales today.
Kris Wilson Gentz pleaded guilty to an Information charging him with conspiracy to commit federal program fraud today before U.S. Magistrate Judge Don Bush.
According to information presented in court, from August 2001 to December 2013, Gentz was employed by the Plano ISD as a Manager and Security and Fire Systems Security Support Specialist. Gentz was responsible for ensuring that Plano ISD schools were equipped with fire and security alarms that were properly maintained. Between 2004 and December 2013, Gentz and two other individuals set up two companies called Fire System Specialists (FSS) and Digital Security Solutions (DSS) that were allegedly in the business of maintaining fire safety systems and security systems. Gentz and his co-conspirators generated fraudulent FSS and DSS invoices and submitted them to Plano ISD for payment. Gentz, in his Plano ISD management role, corruptly approved these invoices; however the services and products referenced on the invoices were never provided or delivered. When payment was made to FSS and DSS, Gentz and his co-conspirators would split the profits between themselves. Over the course of the scheme, Gentz and his co-conspirators obtained over $2.5 million from Plano ISD. Gentz acknowledged that he had abused the position of trust that Plano ISD had given him.
“Public corruption always involves the breach of a position of trust,” said U.S. Attorney Bales, “and, even apart from the financial impact, erodes the trust of taxpayers and the community. We commend Plano ISD for discovering the corrupt conduct and reporting it to the authorities, and we recognize our law enforcement partners for their quick action in addressing this case. We intend this case to be a message that we will not tolerate public corruption in the Eastern District of Texas or anywhere else.”
"The FBI, Department of Education, Plano Police Department and Plano Independent School District should be commended for their collaborative investigative efforts which led to a quick resolution in this matter," said FBI Special Agent in Charge Diego Rodriguez.
“Today’s action shows that this individual not only knowingly and willfully abused his position of trust for personal gain, but he did so at the expense of the educational development of children. That is unacceptable," said Marcus Culpepper, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southwest Regional Office. “As the law enforcement arm of the U.S. Department of Education, I’m proud of the work of OIG special agents and our law enforcement colleagues for holding this man accountable for his criminal actions and for cheating Plano’s students.”
Gentz faces up to five years in federal prison. A date for sentencing has not yet been set.
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The case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Education, Office of Inspector General and the Plano Police Department. The case is being prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.Smith County Convicted Sex Offender Indicted for Interstate Transportation of Minors for ProstitutionRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 31-year-old convicted sex offender from Tyler, Texas has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Anthony Nelson, also known as Flip, was indicted by a federal grand jury on Mar. 26, 2014 and charged with transportation of minors, transportation, and penalties for registered sex offenders.
According to the indictment, in November and December 2013, Nelson, a previously convicted sex offender, transported individuals, including two minors, across state lines with the intent that they engage in prostitution.
If convicted of all counts, Nelson will receive life in federal prison.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the U.S. Department of Homeland Security - Homeland Security Investigations (DHS-HSI), the Louisiana State Police, the Bossier Parish Sheriff's Office, the Shreveport Police Department, the Longview Police Department, the Gregg County Sheriff’s Office, the Smith County Sheriff's Office, the Tyler Police Department, the ATF, the DEA, and the Smith County District Attorney's Office. Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting the case.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Jury Convicts Gunman of Beaumont CarjackingsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 22-year-old Beaumont man has been convicted of multiple crimes related to an armed carjacking spree in April 2012 in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Timothy Wayne Harris, Jr. a/k/a “J” was found guilty by a jury following a three-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart. On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking. The men have been detained since their arrests on April 24, 2012. The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses. Late last year, Harris was determined to be competent to stand trial
The jury today convicted Harris of all five counts. Harris faces a sentence of between 50 years and life in federal prison. Edwards pleaded guilty in January to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes. Edwards faces up to 5 years in federal prison. Sentencing dates have not been set.
This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell. ####Former Smith County Deputy Sentenced for Federal Drug ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas former sheriff’s deputy has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kimbrick Bernard Jones pleaded guilty on Oct. 8, 2013, to conspiracy to possess with intent to distribute and distribution of more than 50 grams of methamphetamine and less than 28 grams of crack cocaine and was sentenced to 72 months in federal prison on Mar. 25, 2014 by U.S. District Judge Leonard E. Davis.
According to information presented in court, from 2012 up until July 10, 2013, jones, who had been employed by the Smith County Sheriff’s Office for about 10 years, admitted to having distributed over 50 grams of methamphetamine and less than 28 grams of crack cocaine while on duty as a Smith County Deputy Sheriff. Jones was indicted by a federal grand jury on July 25, 2013.
This case was investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office and the Texas Rangers and prosecuted by Assistant U.S. Attorneys Richard Moore and Jim Middleton.
####Fort Worth Man Guilty in Extensive Mortgage Fraud Scheme, Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas - A 64-year-old Fort Worth man has pleaded guilty to mortgage fraud and federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lawrence Michael Day pleaded guilty to conspiracy to commit mail and wire fraud affecting a financial institution today before U.S. Magistrate Judge Don Bush. Day also pleaded guilty today to an Information charging him with two counts of tax fraud.
According to information presented in court, from 2005 to 2008, Day conspired with others 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. Based on this criminal activity, Day personally gained $1,877,032.56.
On Apr. 11, 2013, a federal grand jury indicted Day and five others for their participation in this mortgage fraud scheme. Co-defendants Donna Shirley Cobb, 53, of Aledo, Texas; Michael Jerome Edwards, 41, of Lewisville, Texas; Scott Cameron Sherman, 38, of Mansfield, Texas; and Donald Lee Mattox, 41, of McKinney, Texas, have all pleaded guilty in this scheme and are awaiting sentencing.
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.
In another scheme, on Oct. 8 2008, Day claimed a refund of $981,952 on his 2006 federal income tax return to which he knew he was not entitled. On Oct. 10, 2008, Day claimed a refund of $2,895,041 on his 2007 federal income tax return to which he knew he was not entitled. Day prepared and submitted fraudulent Forms 1099-OID worksheets in support of both fraudulent federal income tax returns.
Day faces up to 30 years in federal prison for the mortgage fraud violation and has agreed to submit to forfeiture of $1,877,032.56. He also faces up to three years in federal prison and a fine of up to $100,000 for each of the tax fraud violations. A sentencing date has not been set.These cases are being investigated by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and the Internal Revenue Service-Criminal Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
####Texas Chemical Plant Agrees to Cut Harmful Air Pollution in Overburdened CommunityRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON - The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Flint Hills Resources of Port Arthur has agreed to implement innovative technologies to control harmful air pollution from industrial flares and leaking equipment at the company’s chemical plant in Port Arthur, Texas. This settlement is part of EPA’s national effort to advance environmental justice by protecting communities such as Port Arthur that have been disproportionately impacted by pollution. The company is also required to pay a $350,000 penalty for Clean Air Act violations.
Once fully implemented, EPA estimates that the settlement will reduce emissions of volatile organic compounds (VOCs), including benzene and other hazardous air pollutants (HAPs), by an estimated 1,880 tons per year, and will reduce emissions of greenhouse gases by approximately 69,000 tons per year.
“This agreement reflects the Justice Department’s and the EPA’s commitment to alleviate the environmental and human health challenges faced by vulnerable communities,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This settlement will mean cleaner, healthier air for residents of the Port Arthur area who continue to bear a disproportionate burden from the impacts of industrial pollution.”“Communities like Port Arthur are a focus of our enforcement efforts as they have been hit hard by air pollution,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By working with EPA, Flint Hills has advanced new air pollution controls that will help EPA bring similar air quality improvements to other American communities. EPA will continue to focus on tough pollution controls and cutting edge technologies in order to reduce the burden of air pollution on Americans who need it most.”
The settlement requires Flint Hills to operate state‑of‑the‑art equipment to recover and recycle waste gases and to ensure that gases sent to flares are burned with 98 percent efficiency. The company has spent approximately $16 million to implement these required controls on industrial flares.
When the agreement is fully implemented, the company estimates it will spend $28 million to reduce “fugitive” pollutant emissions that may leak from valves, pumps, and other equipment. The company must monitor leaks more frequently, implement more aggressive repair practices, adopt innovative new practices designed to prevent leaks and replace valves with new “low emissions” valves or use packing material to reduce leaks.
To further mitigate pollution impacting the community, the company will spend $2 million on a diesel retrofit or replacement project that is estimated to reduce nitrogen oxides and particulate matter by a combined 85 tons, in addition to 39 tons of carbon monoxide, over the next 15 years. The company will also spend $350,000 to purchase and install technologies to reduce energy demand in low income homes.
For the past several years, Flint Hills has operated a system to monitor the ambient levels of the hazardous air pollutants benzene and 1,3-butadiene at the boundaries of the facility, also known as the “fence line.” The company has used the information collected to identify and reduce potential pollutant sources for communities living near the facility. In this settlement, Flint Hills has agreed to make its fence line monitoring data available online to the public.
The complaint, filed by DOJ on behalf of EPA at the same time as the settlement, alleges that the company improperly operated its steam-assisted flaring devices in a way that emitted excess amounts of VOCs, including benzene and other hazardous air pollutants. It also alleges violations of EPA regulations designed to limit emissions from leaking equipment.
The measures required by the settlement will cut emissions of pollutants that can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Today’s settlement is part of EPA’s national effort to reduce emissions of toxic air pollutants, with a particular focus on industrial flares and leaks from equipment. Improper operation of an industrial flare can emit hundreds of tons of hazardous pollutants into the air. EPA encourages companies to flare less, and when they do flare, to fully burn the harmful chemicals found in the waste gas.
Flint Hills’ plant in Port Arthur manufactures chemicals that are used in a variety of products, including medical devices, automotive parts and appliance components. The Port Arthur facility has the capacity to produce nearly 1.4 billion pounds of ethylene and 700 million pounds of propylene annually.
The consent decree, lodged in U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.More information about the settlement: www2.epa.gov/enforcement/flint-hills-resources-port-arthur-clean-air-act-settlement
For more on recent settlements related to flaring: www2.epa.gov/enforcement/national-enforcement-initiatives
####Collin County Man Sentenced in Foreclosure Rescue/Drug Distribution SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 34-year-old McKinney, Texas man has been sentenced to federal prison in connection with a combination foreclosure rescue and drug distribution scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jarrod Williams pleaded guilty on Aug. 21, 2013 to conspiracy to commit mail and wire fraud and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone. Williams was also ordered to pay over $1.4 million in restitution.According to information presented in court, from February 2007 to June 2012, Jarrod Williams, Julius Williams, and Charles Williams, controlled and operated Applied Investment Strategies, Inc. (AIS), which marketed itself as a foreclosure rescue service offering assistance to homeowners at risk of foreclosure. However, once a homeowner detained AIS, the defendants fraudulently used the customer’s personal identification information to prepare and send false military orders to banks and lending institutions in order to claim relief from foreclosure under the Servicemember’s Civil Relief Act. AIS would then lease out the home and collect rental payments for AIS’ benefit. The scheme involved approximately 38 homes throughout North Texas and also extended to interfering in the repossession of automobiles. After at least one of the fraudulently-acquired properties was vacated, Charles Williams, Christopher Carter and Sean Harrell turned it into a marijuana grow operation that housed approximately 1,300 marijuana plants that were intended for distribution. A federal grand jury returned an indictment on July 11, 2012, charging the defendants with federal violations.
Charles Williams, 39, of McKinney, Christopher Carter, 34, of Leicester, England, and Sean Harrell, 38, of Dallas are each currently serving prison sentences ranging from 41 to 50 months. Julius Williams, 43, of McKinney faces up to five years in federal prison at sentencing.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.
####Collin County Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 43-year-old Plano, Texas man has been sentenced for his role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Anthony Glen Jones pleaded guilty on Oct. 23, 2013 to bank fraud in connection with a FHA insured home loan and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield. Jones was also ordered to pay restitution in the amount of $348,918.44 and submit to forfeiture of $152,795.83.
According to court documents, in October 2007, Jones devised and executed a scheme to defraud Prime Lending, a subsidiary of Plains Capital Bank, a federally insured bank. To execute the scheme, Jones used another person’s identity without their knowledge or consent to sell property located at 1626 Lipscomb Street in Fort Worth, twice within one week. With respect to the second transaction, Jones caused a fraudulent loan application package to be submitted to Prime Lending while failing to notify Prime Lending that he had already sold the same property. As a result Prime Lending funded a loan of $184,300 for the second transaction. Jones fraudulently gained $152,795.83 from this criminal conduct and caused a loss to lending institutions of about $456,601.68. Jones was indicted by a federal grand jury on Mar. 13, 2013.
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.
The case was investigated by the U.S. Secret Service and the Federal Housing Finance Agency-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Christopher A. Eason and Andy Williams. ####Port Arthur Businessman Guilty of Disaster Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former owner of a Port Arthur, Texas business has pleaded guilty to disaster loan fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenneth W. Matthews, 58, of Fort Pierce, Florida pleaded guilty to conspiracy to defraud the Small Business Administration of disaster loan funds on Mar. 12, 2014, before U.S. Magistrate Judge Zachary Hawthorn.
According to information presented in court, from January 2008 to May 2010, Matthews conspired with his general contractor and subcontractor to submit falsely inflated invoices and checks for repair work done after Hurricanes Humberto and Ike in order to obtain low interest disaster repair loans extended by the Small business Administration. Matthews, the former owner of MegaBowl in Port Arthur, received SBA disaster loan proceeds of $750,000 after Hurricane Humberto and $760,000 after Hurricane Ike. After receiving the loan disbursements based upon the false invoices, the general contractor and a subcontractor would receive from Matthews a lesser amount than invoiced for the work actually done, or would kickback to Matthews a portion of the loan disbursement paid to them. The loan funds were disbursed solely for repairs and other expenses associated with the hurricanes and were not allowed for other general business or personal use. Matthews agreed to pay criminal restitution of $500,000 to the SBA and remains civilly liable for all loan proceeds.
Matthews faces up to 5 years in federal prison. A sentencing date has not been set.
In September 2005, the U.S. Department of Justice created the Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The Hurricane Katrina Fraud Task Force includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.
This case is being investigated by the Small Business Administration-OIG and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robert L. Rawls. ####Federal Jury Convicts Gregg County Man of Drug ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 72-year-old Longview, Texas man has been convicted of drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
This case was investigated by the Drug Enforcement Administration and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####
Jerry Don Castleberry was found guilty by a jury on March 11, 2014, of conspiracy to possess with intent to distribute and distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of drug trafficking activity, following a two day trial before U.S. District Judge Michael H. Schneider.
According to information presented in court, up until May 1, 2013, Castleberry conspired with other persons to acquire and distribute large quantities of methamphetamine from a source in Dallas, Texas to dealers throughout the Longview, Texas area. Evidence indicated that Castleberry was distributing methamphetamine manufactured in Mexico. Castleberry was also in possession of numerous firearms and ammunition, which are subject to forfeiture. Castleberry is a former member of the Bandidos motorcycle gang. As a result of his crime, Castleberry will also forfeit 2 Harley Davidson motorcycles and a Corvette Stingray.
A federal grand jury returned an indictment on June 27, 2013, charging Castleberry and others with the federal violations.
Castleberry faces a minimum of 15 years in federal prison. A sentencing date has not been set.Criminal Enterprise Results in Multiple Arrests in Cherokee County, TexasRead the Press Release
Department of Justice
Office of Public AffairsOn February 26, 2014, a federal grand jury returned a sealed 6‑count indictment charging 7 individuals with multiple counts of federal drug and firearms violations. The indictment resulted from a lengthy investigation launched by the Federal Bureau of Investigation, the Cherokee County Sheriff’s Office, and the Jacksonville Police Department. The Rusk Police Department assisted in the apprehension and arrest of four of the suspects. At the time of the arrests, over 100 grams of methamphetamine, 10 firearms, and cash was seized.
If convicted, the defendants face between 5-40 years in prison and fines of up to $5,000,000 on the drug charges and additional incarceration on the weapons charges.
All of the defendants are residents of Cherokee County and are currently in custody. Initial appearances were held before U.S. Magistrate Judge Nicole Mitchell in Tyler, Texas, on March 11, 2014.
Those named in the indictment are:
Eric Scott Smart, 30
Steven Ray Davis, 42
Michael Wayne Christopher, 52
Jimmy Royce Stafford, aka “Jimmy Loven,” 28
Karl Dwayne Underwood, 23
Jimmy Chance Guillen, 23
Darren Michael Massey, 20Assistant U.S. Attorney Richard L. Moore is prosecuting the case. It is important to note that an indictment is merely a charge and should not be considered as evidence of either innocence or guilt.
####U.S. Attorney, Jefferson County DA Announce Joint Task ForceRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Eastern District of Texas U.S. Attorney John M. Bales and Jefferson County District Attorney Cory Crenshaw today announced the formation of a multi-jurisdictional Task Force. The mission of the Task Force will be to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust.
“By combining our investigative and prosecutorial resources, we can more effectively gather and evaluate all cases, and use all of the state and federal prosecution tools needed to stop and punish any criminal activity associated with public corruption," Crenshaw said. “We look forward to ensuring that those who have abused their positions of public trust will be prosecuted and removed from those positions. Our Task Force will bring to justice any individual who has abused the people’s trust and put both the future of our children and our economy at great risk.”
“This Task Force signifies a new and exciting era of collaboration of law enforcement resources in Jefferson County,” said U.S. Attorney Bales. “Our objective is not complicated, but it is bold – we aim to make Jefferson County a safer, better place to live. This unique, collaborative effort will work to ensure that state and federal law enforcement resources are maximized to address our most serious criminal problems.”
The Task Force will be led by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte, former Assistant District Attorney Luke Nichols who will rejoin the District Attorney's Office this month, and Assistant District Attorneys Koby Hoffpauir and Logan Campbell. Additionally, the Task Force will evaluate cases that fall under both state and federal prosecutorial jurisdictions. The final prosecutorial jurisdiction will be determined on a case by case basis, and will be determined in the light of prosecutorial efficiency and relevant state and federal laws. The Federal Bureau of Investigation, the Department of Education Office of Inspector General and the Texas Rangers will also be members of the Task Force. ####Gregg County Man Guilty in Counterfeit Silver SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 47-year-old Longview, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Leroy Frattarola pleaded guilty to possessing counterfeit silver bars with the intent to defraud another today before U.S. Magistrate Judge K. Nicole Mitchell.
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 faces up to 15 years in federal prison at sentencing. He must also submit to forfeiture of the sized bars and over 100 counterfeit coins. Frattarola will also be ordered to pay a total of $28,720.40 in restitution to be divided among nine victims. A sentencing date has not been set.
This case is being investigated by the Longview Police Department, the Kingsville Police Department, the Grand Prairie Police Department, the Brazoria County Sheriff’s Office, and the U.S. secret Service and prosecuted by Assistant U.S. Attorney Jim Noble.
####Jury Finds Lumberton Karate Instructor Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A federal jury has convicted a 60-year-old Lumberton, Texas man of child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ronald Seabridge, Sr., owner of Brass Dragon Karate, was found guilty on Feb. 27, 2014, of receiving, distributing and possessing child pornography following a four-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, in 2009, federal agents executed a search warrant at Seabridge’s residence/karate studio in Lumberton as the result of an undercover operation which determined Seabridge was using a peer-to-peer file sharing program to receive and distribute child pornography. Seabridge’s computer and hard drives were seized and a forensic examination revealed over 300 images of child pornography.
Seabridge was indicted by a federal grand jury on May 23, 2013.
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.
Seabridge faces a minimum of five years and up to 20 five years in federal prison for receiving and distributing child pornography and up to 10 years in federal prison for the possession charge. A sentencing date has not been set. Seabridge was remanded to the custody of the U.S. Marshal immediately following the verdict.
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The case was investigated by the Federal Bureau of Investigation, the Lumberton Police Department, the Jefferson County Sheriff’s Office, and the Orange County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.Escrow Officer Guilty in North Texas Mortgage Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsFinal defendant’s guilty plea brings closure to nearly $4 million fraud
SHERMAN, Texas – A 35-year-old Edinburg, Texas woman has pleaded guilty to federal charges in connection with a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Lacie Devine pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Amos L. Mazzant. She is the remaining defendant associated with five others in the same conspiracy to plead guilty to the mortgage fraud scheme.
According to information presented in court, from March 2008 through February 2010, Devine, an escrow officer at National Escrow & Title, LCC, located on north Dallas Parkway in Dallas, conspired with others, including the five individuals identified below, to defraud lending institutions by submitting false documentation in support of mortgage applications on 28 property transactions located in the Dallas/Fort Worth Metroplex. Specifically, Devine created fraudulent HUD-1 documents for each transaction that falsely stated the source of the down payments and concealed the true nature of the loan fund disbursements from the lending institutions. Devine’s criminal conduct in the scheme resulted in a loss to lending institutions of approximately $3,718,702.28.
Devine was indicted by a federal grand jury on June 13, 2013 and charged with federal violations. The five co-conspirators, all charged in separate indictments, have also pleaded guilty and been sentenced for their roles in the mortgage fraud conspiracy:
- Roslyn Long, 45-year-old loan officer from Plano, Texas, sentenced to 97 months in federal prison and $3,492,011.79 in restitution;
- Michael Ross, 36-year-old loan officer and coordinator from Dallas, Texas, sentenced to 63 months in federal prison and $3,337,930.60 in restitution;
- Curtis Callier, 33-year-old recruiter from Desoto, Texas, sentenced to 30 months in federal prison and restitution in the amount of $691,543.22;
- Ronzell Mitchell, 37-year-old recruiter from Stroudsburg, Pennsylvania, sentenced to 46 months in federal prison and $1,408,402.96 in restitution; and
- Christi Wyatt, 42-year-old recruiter from Desoto, Texas, sentenced to 37 months in federal prison and restitution in the amount of $1,032,650.17.
Devine faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, the Federal Housing Finance Agency, Office of Inspector General, and the Texas Department of Insurance. These cases are being prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
####Shelby County Man Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 68-year-old Center, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Madison Hughes pleaded guilty on Oct. 2, 2013, to possessing a stolen firearm and was sentenced to 72 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 17, 2012, a law enforcement officer was dispatched to a residence on County Road (CR) 1286 in Shelby County, Texas regarding a domestic disturbance involving Hughes and his girlfriend. A sheriff’s deputy stopped Hughes’ truck on CR 1286 and detained Hughes pending further investigation. The deputy observed a rifle on the seat of Hughes’ truck. Hughes’ girlfriend told deputies the rifle belonged to her an Hughes took it without her consent. Hughes was indicted by a federal grand jury on Jan. 23, 2013, and charged with federal firearms violations.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.This case was investigated by the Shelby County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
####Final Defendants Sentenced in Colombia/Texas Drug Trafficking ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Four members of a Colombian drug trafficking organization have been sentenced to prison for federal violations after being convicted in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jaime Gonzalo Castiblanco Cabalcante, 58, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 360 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Julio Hernando Moya Buitrago, 49, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Oscar Orlando Barrera Pineda, 37, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Roberth William Villega Rojas, 40, of Florencia, Caqueta, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 235 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Sep. 9, 2013 by U.S. District Judge Marcia A. Crone.
The defendants were indicted by a federal grand jury on Oct. 15, 2009, along with 21 others charged with drug trafficking crimes, including conspiracy to import cocaine into the United States and manufacturing and distribution of cocaine to be imported into the United States. According to the indictment, the defendants are members of a drug trafficking organization responsible for sending cocaine from Colombia to the United States using Central America and Mexico as a transshipment point.
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 Direccion de Investigacion Criminal e Interpol (DIJIN) of the Colombian National Police (CNP), Fiscalia General de la Nacion (Office of the Attorney General of Colombia), Cuerpo Tecnico de Investigacion (CTI), Fuerza Aerea Colombiana (Colombian Air Force), U.S. Drug Enforcement Administration (DEA) Panama Country Office, DEA Houston Field Division, DEA Bogota, Colombia, DEA Dallas Field Division, Federal Aviation Administration (FAA), the Honduran National Police and the U.S. Coast Guard. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan, Jay Combs, and Camelia Lopez.
####Mexican National Sentenced for Trafficking Methamphetamine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 45-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Melicio Nunez-Duque, also known as La Burra, of Coyuca de Catalan, Guerrero, Mexico, pleaded guilty on Jan. 30, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 108 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Nunez-Duque was also ordered to pay a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from July 2011 to October 2012, Nunez-Duque conspired with others to distribute methamphetamine in and around Marshall, Texas. Nunez-Duque admitted to distributing 15 grams of methamphetamine on July 27, 2011 and another 14 grams on Oct. 27, 2011 in Marshall, Texas. He also admitted to directing others to distribute methamphetamine on Aug. 4, 2011 and Aug. 24, 2011. He admitted the value of the methamphetamine distributed was at least $20,000. A federal grand jury returned an indictment on Oct. 3, 2012, charging Nunez-Duque and co-defendants, Julia Flores Saucedo and Oscar Diaz-Mendoz, with federal drug trafficking violations.
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This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Illegal Alien Sentenced for Drug Trafficking Violations in Harrison CountyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 42-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to over 18 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Apolinar Carbajal Abelardo, of Guerrero, Mexico, pleaded guilty on Feb. 18, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 225 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Abelardo also agreed to forfeit a truck, several firearms, $13,650 in U.S. currency and a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from November 2009 to October 2012, Abelardo conspired with others to manufacture and distribute methamphetamine and cocaine in East Texas. Abelardo admitted to distributing over 50 grams of methamphetamine and possessing a firearm during the conspiracy. A federal grand jury returned an indictment on Nov. 7, 2012, charging Abelardo with federal drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Former Shelby County Residents Guilty in Health Care Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Center, Texas couple now living in Elgin, Texas, has pleaded guilty to federal violations in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
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Cathy Harvill, 57, and William Harvill, also known as Bill Harvill, 60, pleaded guilty to conspiracy to commit health care fraud on Feb. 18, 2014, before U.S. Magistrate Judge Keith Giblin..
According to information presented in court, the Harvills owned and operated North East Texas EMS. From January 2007 through March 2012, the defendants carried out a scheme to defraud Medicare and Medicaid by submitting false and fraudulent claims for nonemergency, scheduled, repetitive ambulance services which did not meet Medicare program coverage criteria.
The defendants each face up to 10 years in federal prison at sentencing. Sentencing dates have not been set.
This case is being investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the U.S. Department of Labor – employee Benefits Security Administration (DOL-EBSA). This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Tom Gibson and Special Assistant U.S. Attorney Kenneth C. McGurk.Collin County Man Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 52-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Alan Curington pleaded guilty on Oct. 3, 2013, to attempting to sell a machinegun and was sentenced to 27 months in federal prison on Feb. 18, 2014, by U.S. District Judge Michael H. Schneider.
According to information presented in court, Curington recruited a do-defendant, Craig Marcus Cooper, to sell a machinegun for a share of the sale proceeds. On Jan. 31, 2012, Cooper and Colten Barrow traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun. The defendants intended to sell the firearm to the individual for $10,000. However, the buyer was actually an undercover federal agent. The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized. The machinegun had been reported stolen approximately 10 years earlier. A federal grand jury returned an indictment on Mar. 27, 2013, charging Curington, Cooper and Barrow with firearms violations.On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison. On Jan. 15, 2014, Barrow was sentenced to 24 months in federal prison.
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This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.Rusk County Woman Guilty of Embezzling Postal FundsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Henderson, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Tracy A. Bojorquez, former Postmaster Relief at the Joinerville Post Office, has pleaded guilty to misappropriation of United State postal funds today before U.S. Magistrate Judge John D. Love.According to information presented in court, from July 2012 to May 2013, Bojorquez was the relief postmaster at the Joinerville Post Office in Rusk County, Texas. During that time, she embezzled payments she received at the Post Office for postal money orders, post office box rental fees, and the sale of U.S. postage stamps. The unreimbursed losses to the U.S. Postal Service amounted to $5,132.23. Bojorquez was indicted by a federal grand jury on Nov. 20, 2013.
Bojorquez faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the U.S. Postal Service, Office of Inspector General and prosecuted by Assistant U.S. Attorney Allen Hurst.
Former Civilian Translator Embedded with Military Units in Afghanistan Pleads Guilty to Federal ChargesRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 39-year-old McKinney, Texas woman has pleaded guilty to federal violations stemming from her employment as a translator embedded with several U.S. military units in Afghanistan, announced U.S. Attorney John M. Bales of the Eastern District of Texas and U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Farida Yusufi, a U.S. citizen of Afghan origin, pleaded guilty to eight counts of a nine-count indictment, unsealed in August 2013, today before U.S. Magistrate Judge Amos Mazzant. Specifically, Yusufi pleaded guilty to five counts of making false statements to a federal agency; two counts of altering a military, naval or official pass; and one count of theft of government records. She has been in federal custody since her arrest in August 2013 by special agents with the FBI’s North Texas Joint Terrorism Task Force (JTTF).
According to documents filed in court, Yusufi received a final Secret security clearance in August 2008, but it was suspended on Oct. 1, 2009, and was never reinstated. Despite those facts, in an interview conducted by FBI and U.S. Army counterintelligence agents in Afghanistan in September 2011, Yusufi falsely told the federal agents that she possessed a Top Secret security clearance “in process,” which she knew was a false and misleading statement. In that interview, to mislead the agents who were trying to determine whether she was gaining access to classified information at a U.S. base in Afghanistan without authorization, she also falsely told them that she had never been fired from a job. In fact, she had previously been fired as a translator while working overseas for the U.S. military.
On Mar. 22, 2012, Yusufi made false statements to FBI agents about whether she had provided false information on her security clearance application form and whether she had actually been employed by a particular U.S. government contractor. She also made those false statements to mislead the FBI agents as to her actual statements to other federal agents and her employment history.
On Feb. 23, 2012, Yusufi again made a false statement to federal agents by stating that she had not applied for a position as a role player for a U.S. government contractor since her return from Afghanistan in September 2011, when, in fact, she had applied for such a position in June 2011 and inquired again about that application upon her return from Afghanistan earlier in September.
On Jan. 18, 2010, Yusufi falsely made, altered and tampered with an official military or government pass, that is a Letter of Authorization issued by or under the authority of the U.S. government, and on Mar. 13, 2013, Yusufi possessed an altered Letter of Authorization. A Letter of Authorization is the equivalent of a set of military orders for a government contractor, such as a contract linguist being deployed overseas, and it enables access to military transportation and military bases. The Letters of Authorization that Yusufi altered and possessed were never issued to her; rather, the original Letter of Authorization was issued to her former spouse.
On Mar. 13, 2013, the FBI executed a search warrant at Yusufi’s home in McKinney. On her computer, the FBI discovered sensitive U.S. military records that she obtained while embedded with the U.S. military and that she had no authority to possess or retain. She admits that she knew she had no right to possess or keep those records, and that she had converted them to her own use.
Statutorily, Yusufi faces a maximum penalty of five years in federal prison and a $250,000 fine for each of the false statement and altering a military, naval or official pass counts, and 10 years in federal prison and a $250,000 fine for the one count of theft of government records. However, according to the plea agreement, if acceptable by the Court, the parties have agreed that a sentencing range of 33 to 41 months in federal prison is an appropriate sentencing range. Yusufi also agreed to pay a $50,000 fine. Yusufi acknowledges that she may not withdraw her plea should the Court choose not to follow these sentencing recommendations. A sentencing date was not set.
This case was investigated by the FBI’s North Texas JTTF.
Assistant U.S. Attorney Andrew Stover, of the Eastern District of Texas, and Assistant U.S. Attorneys Errin Martin and Mark Penley, of the Northern District of Texas, are prosecuting.Tyler County Woman Guilty of Health Care FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 31-year-old Woodville, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kari Mannino pleaded guilty to conspiracy to commit health care fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to the information presented in court, from January 2008 to December 2011, Mannino was the office manager for Beaumont Medical Clinic on Eastex Freeway in Beaumont. During that time, Mannino conspired with co-defendant, Dr. John Q.A. Webb, Jr., to claim Webb had treated patients when he had not. Mannino then submitted, or had someone else submit, false claims to Medicaid and Medicare indicating a licensed physician and provided the health care services. False claims submitted to Medicare were in excess of $12,000. The total fraudulent activity resulted in a loss to both Medicare and Medicaid of over $30,000. Mannino and Webb were indicted by a federal grand jury on Dec. 5, 2013.Mannino faces up to 10 years in federal prison. A sentencing date has not been scheduled.
This case is being investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case is being prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.
Jefferson County Man Guilty of Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 25-year-old Port Arthur, Texas man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Joseph Barrett IV pleaded guilty to possession with intent to distribute methamphetamine on Feb. 11, 2014 before U.S. District Judge Marcia Crone.
According to information presented in court, on Feb. 19, 2013, law enforcement officers responded to a residence on 32nd Street in Port Arthur after receiving information regarding suspected manufacture of methamphetamine at the location. Consent to search was obtained and a search of the premises revealed a small amount of cocaine, a semi-automatic pistol, and various items associated with methamphetamine manufacture, including a three liter bottle containing a methamphetamine mixture. A federal grand jury returned an indictment on Dec. 4, 2014, charging Barrett with drug trafficking violations.
Barrett faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration, the Port Arthur Police Department and the Jefferson County Sheriff’s Office Crime Lab and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Houston Man Sentenced in Multi-State Health Care Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 55-year-old Houston man has been sentenced to federal prison for his role in a multi-state health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Peter Pedro Egede pleaded guilty on Apr. 4, 2013, to health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone. Egede was also ordered to pay restitution in the amount of $1,635,447.60 to the Medicare and Medicaid programs and a fine of $12,500.
According to the indictment, from May 2002 to June 2003, Egede conspired with others to defraud Medicare and Medicaid through the mass marketing of motorized wheelchairs. As part of the scheme, the defendant and his co-conspirators recruited Medicare and Medicaid beneficiaries by representing that the government was “giving away” motorized wheelchairs. The recruiters would secure the beneficiaries protected health information, including names, dates of birth, and Medicare numbers from mostly elderly individuals. Egede and his co-conspirators created false medical necessity certificates for each beneficiary by drafting, without authorization, prescriptions from doctors who had never examined those beneficiaries. Often, Egede billed Medicare for motorized wheelchairs, but instead delivered less expensive scooters to the beneficiaries. In other instances, Egede did not deliver anything even though Medicare had paid for a motorized wheelchair. Claims were submitted by the defendant for over 500 beneficiaries located in Texas, Oklahoma, Arkansas, Louisiana, and Mississippi. A great portion of the beneficiaries resided in counties within the Eastern District of Texas, including Smith, Bowie, Denton and Lamar counties. Egede submitted false and fraudulent claims to Medicare of more than $4.1 million and obtained more than $1.6 million in claims paid. Egede was indicted by a federal grand jury on June 15, 2006.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigations and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU). This case was prosecuted by Special Assistant U.S. Attorney Alma Hernandez.
Former Hospital CFO Charged with Health Care FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – The former Chief Financial Officer for Dr. Tariq Mahmood’s Texas hospitals has been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe White, 66, of Cameron, Texas, was indicted by a federal grand jury on Jan. 22, 2014, and charged with making false statements to the Centers for Medicare and Medicaid Services (CMS) and aggravated identity theft. White appeared for an arraignment hearing today before U.S. Magistrate Judge John D. Love.
The American Recovery and Reinvestment Act of 2009 established incentive payments under the Medicare and Medicaid programs for eligible professionals and eligible hospitals that meaningfully use Certified Electronic Health Record Technology. The incentive programs were created to promote the adoption of health information technology and encourage the electronic exchange of health information in order to improve the quality and lower the cost of health care in the United States. Upon meeting certain conditions, an eligible hospital could qualify for incentive payments from CMS if the hospital attested that it had meaningfully used Certified Electronic Health Record Technology for the prior fiscal year.
According to the indictment, on Nov. 20, 2012, White falsely attested to CMS that Shelby Regional Medical Center (Shelby Regional) met the meaningful use requirements for the 2012 fiscal year. However, Shelby Regional relied on paper records throughout the fiscal year and only minimally used electronic health records. To give the false appearance that the hospital was actually using Certified Electronic Health Record Technology, White directed its software vendor and hospital employees to manually input data from paper records into the electronic health record (EHR) software, often times months after the patient was discharged and after the end of the fiscal year.
The indictment further alleges that White falsely attested to the hospital’s meaningful use by using another person’s name and information without that individual’s consent or authorization. As a result of the false attestation, CMS paid Shelby Regional $785,655.00. In total, hospitals operated by Dr. Mahmood, including Shelby Regional, were paid $16,794,462.66 by the Medicaid and Medicare EHR incentive programs for fiscal years 2011 and 2012.
“As more and more federal dollars are made available to providers to adopt Electronic Health Record systems, our office is expecting to see more cases like this one,” said Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General's (OIG) Dallas Regional Office. “The Office of Inspector General is committed to protecting the millions of taxpayer dollars used to pay providers to adopt Electronic Health Record systems.”
If convicted, White faces up to five years in federal prison for making a false statement and up to two years in federal prison for aggravated identity theft.
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. Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Kenneth C. McGurk are prosecuting this 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.
Collin County Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 46-year-old Frisco, Texas man has been sentenced for his role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Burnham pleaded guilty in July 2013 to conspiracy to commit bank fraud in connection with a FHA insured home loan and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone. Burnham was also ordered to pay restitution in the amount of $1.3 million.
According to court documents, between March and August 2010, Burnham conspired with another individual, Michael Battista, to defraud Flagstar Bank, a federally insured bank. Burnham agreed with Battista that Burnham would recruit buyers to purchase houses that Battista owned. As an incentive to purchase the house, Burnham would promise the buyer a cash payment following the closing of the sale. Battista and Burnham fraudulently overstated the true purchase price of the houses in sales contracts and closing documents. This caused the buyers’ mortgage lenders, such as Flagstar Bank, to unknowingly fund purchase loans that generated more sales proceeds to Battista than what Battista was purportedly demanding for the houses. Battista then used the excess sales proceeds to pay a kickback to Burnham for recruiting the buyer, and Burnham would make the cash incentive payment to the buyer out of his kickback funds. The scheme caused a loss to mortgage lenders of more than $1.3 million. Burnham was ordered to make restitution in that amount to the victims of his scheme. Battista previously pleaded guilty and has been sentenced for his participation 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.
The case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Department of Housing and Urban Development Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Andy Williams.
Tax Preparer Indicted in SYAM Tax Service SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Dallas tax preparer has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shannon Tecoko Mays, 36, of Dallas, was indicted today by a federal grand jury charging him with conspiracy to commit wire fraud.
According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
The indictment alleges that Mays targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.
For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $3,150,406. If convicted, Mays faces up to 20 years in federal prison.This case is being investigated by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
It is important to note that a grand jury indictment is not evidence of guilt.
Crenshaw Named Jefferson County District AttorneyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – An Assistant United States Attorney in the Beaumont Office of the U.S. Attorney has been appointed to serve as the next Jefferson County District Attorney, announced U.S. Attorney John M. Bales.
On Jan. 27, 2014, Texas Gov. Rick Perry appointed AUSA Cory Crenshaw as the District Attorney for Jefferson County, Texas. Crenshaw replaces long-time DA Tom Maness who retired in December 2013.
Crenshaw, 34, is a native of Beaumont and a 1997 graduate of Kelly High School. Crenshaw attended Baylor University where he received a degree in history and then earned his law degree at Texas Tech University in 2004. Crenshaw began his career in prosecution in Bryan/College Station in 2005 as a state felony prosecutor where his caseload focused mainly on child sex predators and gang offenders. In 2010, Crenshaw began his federal career in the Southern District of Texas as an Assistant U.S. Attorney in McAllen, Texas. His heavy border caseload focused on narcotics, immigration, and firearm offenses. He joined the Eastern District of Texas in December 2012 where he served in the Beaumont office prosecuting complex drug trafficking crimes as part of the Organized Crime Drug Enforcement Task Force (OCDETF).
“We are excited for Cory and Jefferson County,” said U.S. Attorney Bales. “Judge Maness’ legacy of achievement will not be tarnished by Cory’s stewardship. Naturally, we look forward to continuing our close partnership with the Jefferson County District Attorney’s Office.”
The Eastern District of Texas is comprised of 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 over 50 federal prosecutors.
Arrests Made in Employment Referral Conspiracy Involving Chinese Restaurant IndustryRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A task force of federal, state, and local law enforcement have begun arresting 32 defendants charged with RICO and immigration violations 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.
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.
Arrests of the indicted individuals began on Jan. 30, 2014. The following individuals have been charged:
- Lina Sun, 54, of Houston;
- Chenglun Ma, 57, of Houston;
- Chang Jin Song, 56, of Houston;
- Zhiqiang Li, 59, of Houston;
- Chenzong Yu, 44, of Houston;
- Jin Zhu Wang, 50, of Port Arthur, Texas;
- Li Qiu Jiang, 52, of Port Arthur, Texas;
- Hua Zhu Dong, 45, of Port Arthur, Texas;
- Wei Ji Zheng, 38, of San Marcos, Texas;
- Wen Juan Zhang, 34, of San Marcos, Texas;
- Chanjuan Xie, 31, of Sanger, Texas;
- Xue Fang He, 28, of Sanger, Texas;
- Zhen Yin Weng, 55, of Little Rock, AR;
- Dan Hui Lu, 32, of Dallas;
- Zeng Yu Huang, 50, of Mineola, Texas;
- Jian Tuan Dong, 47, of Rockwall, Texas;
- Jian Jun Ma, 60, of Houston;
- Liang Gao, 42, of Houston;
- Shoufang Jiang, 43, of Houston;
- Jiang Ping Zhang, 65, of Houston;
- Wen Jian Wen, 26, of Houston;
- Xiaofeng Zhu, 43, of Sugar Land, Texas;
- Xianghong Sun, 54, of Missouri City, Texas;
- Yan Mao, 39, of Brownwood, Texas;
- Yip Keung Leung, 40, of Brownwood, Texas;
- Selena Ling Feng, 37, of Nacogdoches, Texas;
- Zongxian Zhu, 41, of Nacogdoches, Texas;
- Jing Heng Jiang, 51, of Bastrop, LA;
- Hua Lin, 30, of Allen, LA;
- Houng Chen, 39, of Abbeville, LA; and
- Jin Zhu Fang, 38, of Abbeville, LA.
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. If convicted, defendants face up to 20 years for the RICO charge and up to 10 years for the immigration conspiracy charge.
“The Hong Li Job Agency and the Tai Shan Employment Agency operated a ‘take-out and delivery service’ for restaurants across the region- but they didn’t deliver food. Instead, they delivered people illegally present in the United States to greedy restaurant owners and managers looking for cheap labor,” said Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston. “The illicit efforts of the defendants and others like them help push those unlawfully here deeper into the shadows, and the jobs they market serve as a magnet for future illegal immigration.”
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; Police Department’s in Houston, Port Author and Beaumont. This case is being prosecuted by Assistant U.S. Attorneys in Beaumont.
It is important to note that a grand jury indictment is not evidence of guilt.
Louisiana Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 50-year-old Cameron, LA, man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Allen Keith Miller pleaded guilty on Aug. 28, 2013 to bank robbery and was sentenced to 57 months in federal prison on Jan. 24, 2014 by U.S. District Judge Marcia Crone.According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace. Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed. Miller also advised that he was armed although a weapon was not displayed. Media outlets broadcast footage of the bank robbery and Miller was identified by citizens. Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.
Miller has also been ordered to pay restitution in the amount of $963.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Five Defendants Sentenced for On-line Trafficking of Prescription DrugsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Five men have been sentenced to federal prison this week for prescription drug trafficking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Khuda Balouch Buksh, 47, a Pakistani national living in Duncanville, Texas, pleaded guilty on Jan. 16, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 36 months in federal prison on Jan 24, 2014 by U.S. District Judge Marcia Crone. Buksh was ordered to be deported following the completion of his prison sentence.
Sikander Ali Teepu, 29, a Pakistani national living in Wantagh, NY, pleaded guilty on Aug. 26, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone.
Haroon Ahmad Tanooli, 31, a Pakistani national living in Sugarland, Texas, pleaded guilty on Aug. 13, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone.
Mustajab Ali Raza, 28, a Pakistani national living in Brighton, MN, pleaded guilty on Aug. 21, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone. Raza was ordered to be deported following the completion of his prison sentence.
Saaim Aslam, 31, of Irvine, CA, pleaded guilty on Aug. 26, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone.
According to information presented in court, beginning in 2009, the defendants conspired to import and distribute controlled substances, specifically Methylphenidate, Amphetamine, Oxycodone, Hydrocodone, alprazolam, and Diazapam, to others by way of a large on-line pharmaceutical operation. A federal indictment was returned by a grand jury on April 12, 2012 charging federal drug trafficking violations.
“The sentencing of these defendants demonstrates DEA’s commitment, along with our Federal partners from IRS, Homeland Security Investigations, the United States Postal Inspection Service, and the U. S. Attorney’s Office, to rid our communities here in North Texas of the sweeping epidemic of on-line prescription drug fraud and abuse,” said Daniel R. Salter, Special Agent In Charge of the Dallas Field Division. “Enforcement entities nationwide are aggressively pursuing prosecutions of any individuals who attempt to import and distribute these adulterated, misbranded, and counterfeit controlled substances. We are proud to be a part of these efforts.”
“IRS Criminal Investigation assisted DEA by utilizing our financial expertise to follow the money and unravel a complex web of international money laundering transactions that spanned multiple countries,” said Damon Rowe, IRS CI Special Agent in Charge in Dallas, Texas. “This analysis resulted in uncovering the sophisticated financial network that supported this drug trafficking organization.”
This case was 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 Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Stevan Buys.
Louisiana Man Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Shreveport, Louisiana man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brandon Johnson pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 4.5 kilograms of marijuana and was sentenced to 10 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Mar. 19, 2013, Johnson was stopped by a Texas DPS Trooper in the eastbound lane of IH-20 in Van Zandt County, Texas for speeding. During the course of the stop the officer detected the odor of marijuana coming from inside Johnson’s car and detained Johnson in order to conduct a search. The trooper found 10 bundles of marijuana that weighed approximately one pound each in two boxes on the back seat floorboard. The trooper also found a loaded .40 caliber, semi-automatic pistol on the driver’s side floorboard. As part of his sentence, Johnson must forfeit the seized weapon and ammunition to the United States Attorney’s Office. Johnson must also pay a $10,000.00 judgment to be levied against him personally in order to forfeit money he made selling marijuana.
This case was investigated by the Texas Department of Public Safety, Highway Patrol, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Hunt County Man Guilty of Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Quinlan, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Colten David Barrow pleaded guilty on Sep. 11, 2013, to attempting to sell a machinegun and was sentenced to 24 months in federal prison on Jan. 15, 2014, by U.S. District Judge Michael
H. Schneider.
According to information presented in court, on Jan. 31, 2012, Barrow and Craig Marcus Cooper traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun. The defendants intended to sell the firearm to the individual for $10,000. However, the buyer was actually an undercover federal agent. The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized. A federal grand jury returned an indictment on Mar. 27, 2013, charging the defendants with firearms violations.On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 29-year-old Palestine, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clifford Murray pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 11.6 grams of crack cocaine and was sentenced to 60 months in federal prison today by U.S. District Judge Michael H. Schneider. Murray was also ordered to pay a $20,000 judgment and submit to forfeiture of seized firearms and cash.
According to information presented in court, on Mar. 14, 2013, Murray was found at a residence on South Jackson Street in Palestine, Texas, in possession of crack cocaine, which he intended to distribute to others. Murray also admitted to possessing three pistols, a pistol-grip shotgun, ammunition and $8,907 in cash, all in connection with his drug trafficking activities.
This case was investigated by the Palestine Police Department, the Anderson County District Attorney’s Office, the U.S. Drug Enforcement Administration, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Jefferson County Man Guilty of Federal Carjacking and Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 19-year-old Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Emonte Jackson pleaded guilty to carjacking and brandishing a firearm during a crime of violence today before U.S. District Judge Ron Clark.
According to information presented in court, on Mar. 18, 2013, law enforcement officers spotted a vehicle which had been reported stolen in an aggravated robbery on Mar. 16, 2013. The driver, later identified as Emonte Jackson, evaded the officers in his vehicle during a high speed chase through a residential area of Beaumont, Texas. After striking two unattended vehicles, Jackson fled the scene and was apprehended underneath a house.
The vehicle Jackson was driving was identified as a 1996 Toyota Camry. This vehicle had been reported stolen on Mar. 16, 2013. The driver of the vehicle on Mar. 16, 2013 advised officers that she picked up Jackson, whom she had previously met, at a location in Beaumont, and agreed to pick up Jackson’s “brother”, later identified as Dwight Elam at a different location in Beaumont. Jackson had the driver drive around for approximately 45 minutes before having the driver drive them back to the location where Elam was picked up. At that location, Jackson attempted to take the car keys from the ignition and began struggling with and choking the driver. Jackson then pulled out a small, silver, semi-automatic pistol and threatened to shoot the driver if she did not relinquish her keys to him. Jackson then retrieved the car keys from the driver and threatened to kick her in the face if she would not leave the vehicle. During this time, Elam was demanding the cell phones from the driver and her friend who was in the vehicle with her. The friend gave her cell phone to Elam and left the scene. Jackson sped off in the Toyota Camry.A federal grand jury indicted Jackson on Oct. 2, 2013. Jackson faces up to 15 years in federal prison for the carjacking offense and another seven years for the firearms violation. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney Michelle Englade.