Eastern District of Texas
Press releases recorded for this federal judicial district.
Nacogdoches Couple Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsLUFKIN, Texas - A Nacogdoches, Texas couple has been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Reggie Cotton, 53, and Deborah Cotton, 57, pleaded guilty on Nov. 7, 2013 to failing to file tax returns for the calendar year 2004 and were both sentenced to five months in federal prison today by U.S. District Judge Ron Clark. Their prison sentences will be followed by five months of home detention and restitution of $75,320 to the Internal Revenue Service.
According to information presented in court, the Cottons were involved in running and operating D&R Services, a janitorial cleaning service. The Cottons had received gross income for 2004 totaling $207,857 for D&R Services which they failed to file a federal income tax return for. The Cottons knew they were required to file an income tax return because they had filed an income tax return for a separate janitorial company they had been involved with in the past.
Reggie Cotton was ordered to report to the U.S. Marshals Service in July 2013 to begin serving his sentence. Deborah Cotton was ordered to report in January 2014.
This case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Robert L. Rawls.Smith County Residents Sentenced for Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Smith County, Texas residents have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clinton Daniel McCaa, 32, of Whitehouse, Texas, pleaded guilty on Jan. 9, 2013, to conspiracy to distribute and possess with intent to distribute methamphetamine and was sentenced to 80 months in federal prison today by U.S. District Judge Leonard E. Davis.
Tara McDonald, 40, of Tyler, Texas, pleaded guilty on Jan. 9, 2013, to maintaining a place for the distribution and use of methamphetamine and was sentenced to 38 months in federal prison today by Judge Davis.
According to information presented in court, during 2011, McCaa acquired methamphetamine from Clinton Squires of Terrell, Texas, which McCaa then distributed to multiple persons in Tyler, Texas. During this time, McCaa lived with McDonald at her residence on Meadow Creek Drive in Tyler, Texas. McDonald admitted that she knew McCaa was involved in the distribution and use of methamphetamine. Furthermore, McDonald allowed McCaa to store methamphetamine and other substances at her residence.
A federal indictment was returned on May 2, 2012, charging McDonald and McCaa with federal drug crimes.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Gregg County Man Sentenced for Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 26-year-old Longview, 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.
Jason Ray Ragan pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and was sentenced to 50 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on Aug. 2, 2012, Ragan was found in possession of approximately 8 grams of methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Ragan and a co-defendant with federal drug crimes.
Co-defendant, Jason Clinton Squires, pleaded guilty on Apr. 16, 2013 to conspiracy to manufacture, distribute and possess with intent to distribute methamphetamine. Squires is awaiting sentencing.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Gregg County Lawyer Sentenced for Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 55-year-old Longview, Texas lawyer has been sentenced to federal prison for mail fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Steven Rushing pleaded guilty on Feb. 15, 2013 to mail fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Michael H. Schneider. Rushing was also ordered to pay restitution in the amount of $929,076.29.
According to information presented in court, beginning in January 2007, Rushing devised a scheme to defraud insurance companies and health care providers using the United States mail to execute the scheme. Rushing’s scheme involved providing legal representation to clients injured in accidents. Rushing negotiated settlements with civil defendants or a potential civil defendant’s insurance provider. While negotiating final settlement amounts, Rushing would represent to his clients and the insurance providers that he would use a portion of the settlement proceeds to pay for some, or all, of his client’s outstanding medical bills. Once Rushing received the settlement check, he would deposit it into his account and provide his client with a “Disclosure Statement” detailing the manner in which the total settlement was to be distributed. Rushing would give a check to the client for the “client net” agreed upon amount and execute checks payable to his client’s medical providers. However, Rushing would not actually send the medical providers their checks, instead converting that portion of the settlement proceeds for his own personal use. For instance, Rushing admitted that on June 20, 2011, he sent a letter to Farmers Insurance representing that he would use funds from a proposed settlement to pay off “any and all hospital, health insurance, and/or Medicaid/Medicare liens” in order to secure a specific settlement in the amount of $6,836.00, when in fact, Rushing never intended to pay the liens.
This case was investigated by the Longview Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.
Federal Grand Jury Returns Multiple Indictments in Tyler, TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas –A federal grand jury returned multiple indictments today charging individuals with separate federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
James Ray Gilliland, 40, of Kilgore, Texas, was indicted on charges of receiving and possessing child pornography. If convicted, he faces up to 40 years in federal prison. According to the indictment, on Dec. 28, 2012, Gilliland knowingly received images containing child pornography. This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Travis Van Ayers, 51, of Tyler, was indicted on charges of failure to register as a sex offender. If convicted, he faces up to 10 years in federal prison. This case is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Carlos Gerardo Barroso Lopez, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 10 years in federal prison to be followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.Roberto Rodriguez-Astorga, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 20 years in federal prison followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Smith County Man Sentenced for Attempted Arson of Methadone ClinicRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 55-year-old Tyler, Texas, building contractor has been sentenced for federal arson related charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Kubisty pleaded guilty on Jan. 9, 2013, to attempted arson and was sentenced to 16 months in federal prison today by U.S. District Judge Leonard Davis. Kubisty was also ordered to pay restitution in the amount of $8,824.00.
According to information presented in court, on Mar. 19, 2012, Kubisty accepted $3,000 from Edward Jacobs to burn down a building located at 3322 E. Fifth Street in Tyler that was being used by the “Add-Life Recovery Center” methadone clinic. Kubisty and Jacobs conspired to burn down the building in order to gain a competitive advantage for the “Methadone Clinic of East Texas” which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup.
After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony. During the meeting, Jacobs offered to pay the hit-man $12,000.00 for Kubisty’s murder. ATF was monitoring the meeting and arrested Jacobs at the scene. On Dec. 18, 2012 Jacobs pleaded guilty to attempted arson and solicitation of murder for hire. He was sentenced to 188 months in federal prison on Mar. 14, 2013, and ordered to pay over $12,000 in restitution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Shelby County Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Center, 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.
Danny Len Lindsey pleaded guilty on Mar. 1, 2013, to possession with intent to manufacture methamphetamine and was sentenced to 48 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, from at least Aug. 14, 2011, Lindsey possessed and distributed methamphetamine in East Texas. A federal grand jury returned an indictment on Nov. 7, 2012, charging Lindsey with drug trafficking violations. Lindsey also admitted to possessing two firearms during his drug trafficking activities and must forfeit both firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.Gregg County Woman Guilty of Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 38-year-old Longview, Texas woman has pleaded guilty to federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Racyna Antoinette Henry pleaded guilty to an information charging her with aiding and assisting in the preparation of fraudulent tax returns on May 14, 2013 before U.S. Magistrate Judge Judith A. Guthrie.
According to information presented in court, in 2006, Henry began working out of her home as a tax return preparer with a company known as Preyear’s Tax and Check Cashing Services, LLC, which is based in Alabama. Around October 2007, Henry also managed and operated a company known as Henry’s Tax Service LLC out of her home. At some point in 2006, Henry admits that she began assisting in the preparation of false federal income tax returns. The false items contained false dependents, false child tax credits, false child and dependent care expenses, false losses on farming activities, and false earned income tax credits.
The estimated tax loss related to the false federal income tax returns prepared with assistance from Henry from 2006 to 2010 is between $200,000 and $400,000. Henry faces up to 3 years in federal prison at sentencing and restitution for her crime. A sentencing date has not been set.
This case is being investigated by the IRS and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.Former President of Port Arthur Chemical Company Guilty of Federal Crimes Related to Employee DeathsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to occupational safety crimes which resulted in the death of an employee, announced John M. Bales, U.S. Attorney for the Eastern District of Texas, and Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement. Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide. The guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn.“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney John M. Bales. “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account. We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends. This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”
“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”
“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”
“Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “The defendant admitted that his actions directly led to the death of one of his employees. This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing. A sentencing date has not been set. Charges remain pending against PACES. The corporation faces a fine of up to $500,000 per count.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.Cherokee County Armed Robbery Crew Arrested and Charged with Federal CrimesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Four Jacksonville, Texas men have been indicted and arrested in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Jonathan Roshard Brown, 21, Maurice Deshun Jones, 30, Willie Duane Rogers, 24, and Michael Dangelio Johnson, 25, were named in an 8-count indictment returned by a federal grand jury on Apr. 24, 2013. The defendants will be arraigned on Wednesday before U.S. Magistrate Judge Judith Guthrie.
The indictment alleges that beginning on Oct. 2, 2011, Brown, Jones, Rogers and Johnson conspired together to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law. The defendants are specifically alleged to have committed four armed robberies in Jacksonville during this crime spree which began on Oct. 2, 2011 when Brown, Jones and Rogers stole $9,465 from the Wal-Mart Supercenter in Jacksonville. On May 25, 2012, Rogers and Jones were stopped for a traffic violation in Jacksonville. Rogers was arrested for driving without a valid driver license and Jones was arrested for being a felon in possession of a firearm. A loaded handgun was found protruding from underneath the front passenger seat of the vehicle. On Nov. 2, 1012, Brown, Jones and Rogers robbed the Razorback Grocery on Hwy 69 in Jacksonville. Brown brandished a handgun and demanded money from the owner. Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets. On Nov. 16, 2012, Brown, Jones, Rogers and Johnson again robbed the owner of the Razorback Grocery while he was waiting int eh commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville. During the robbery Brown fired a handgun, striking the victim. The bullet passed through the victim’s hand, throat and shoulder. The victim survived after being airlifted to a Tyler hospital. The defendants obtained an undetermined amount of cash from the victim’s vehicle. The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank. On Nov. 23, 2012, Brown and jones attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville. The owner was able to strike Brown and flee. From Mar. 19 to Mar. 23, 2013, Rogers, through a series of telephone calls recorded by law enforcement, attempted to bribe a witness in the investigation by offering a payment in exchange for the witness recanting a statement to investigators.
Jones was arrested on May 5, 2013 near Bullard, Texas. Rogers was arrested on May 5, 2013 in Jacksonville. Brown and Johnson have been in state custody at the Cherokee County Jail on related charges.
The defendants are each charged with one count of Hobbs Act conspiracy. Jones is also charged with being a felon in possession of a firearm, two counts of Hobbs Act robbery, and one count of brandishing a firearm during a violent crime. Brown is also charged with three counts of Hobbs Act robbery and two counts of brandishing a firearm during a violent crime. Rogers is also charged with two counts of Hobbs Act robbery, two counts of brandishing a firearm during a violent crime, and one count of obstruction of a criminal investigation. Johnson is also charged with one count of Hobbs Act robbery and one count of brandishing a firearm during a violent crime. Under federal law, where there are multiple counts of brandishing a firearm in a crime of violence, the first conviction is punishable by a minimum of seven years in federal prison, and additional convictions are punishable by a minimum of 25 years in prison, and each sentence must be served consecutively to any other sentence. The Hobbs Act violations each carry a maximum of 20 years in federal prison. The felon in possession charge carries a term of up to 10 years in federal prison. The obstruction of justice charge is punishable by a term of up to five years in federal prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Richard Moore.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.
Shelby County Man Guilty of Buying Cold Pills to Make MethRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Joaquin, Texas man has pleaded guilty to federal drug charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Dean Allen Tucker pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Nov. 13, 2008, Tucker purchased cold pills containing pseudoephedrine from the Ken turner Pharmacy in Carthage, Texas, with intentions of manufacturing methamphetamine. Tucker also admitted to purchasing cold pills on 25 additional occasions from Nov. 18, 2008 to Apr. 15, 2009, amounting to approximately 58.44 grams of pseudoephedrine. A grand jury returned a federal indictment on Nov. 7, 2012, charging Tucker and Christine Stephens Carroll with drug trafficking crimes. Carroll was sentenced to 71 months in federal prison on Aug. 20, 2012.
Tucker faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Texas Department of Public Safety and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Grapeland Man Indicted for Anderson County Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 45-year-old Grapeland, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robbie Newby was indicted by a federal grand jury on Apr. 17, 2013, and charged with four counts of sexual exploitation of a child and one count of possession of child pornography. Newby went before U.S. Magistrate Judge John D. Love today for an initial appearance.
According to the indictment, from January to March 2012, Newby coerced or persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The conduct is alleged to have occurred in Anderson County, Texas.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, Newby faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Anderson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.Photographer Indicted for Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas — A 53-year-old McKinney, Texas photographer has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Todd Fleming was indicted by a federal grand jury on Apr. 17, 2013, and charged with 24 counts of sexual exploitation of a child and one count of possession of child pornography. Fleming's initial appearance was held in TYLER before Magistrate Judge John D. Love.
According to the indictment, from 1999 to 2007, Fleming coerced or persuaded minors to engage in sexually explicit conduct for the purpose of photographing such conduct.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, Fleming faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.Texas Doctor Indicted for Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been arrested and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 61, of Cedar Hill, Texas, was indicted by a federal grand jury on April 11, 2013, and charged with conspiracy to commit health care fraud and seven counts of health care fraud. Mahmood went before U.S. Magistrate Judge John D. Love today for an initial appearance.
According to the indictment, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Shelby Regional Medical Center in Center. From April 2010 to April 2013, Mahmood and others are alleged to have carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. By means of fraudulent billing practices, the defendant and his co-conspirators are alleged to have unlawfully submitted false claims of more than $1.1 million and obtained more than $375,000.
If convicted, Mahmood faces up to 10 years in federal prison for each charge.The investigation leading to the charges was conducted by agents from the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County Man Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jonathan Keith Roberts pleaded guilty on Aug. 23, 2012, to two counts of bank robbery and brandishing a firearm during a crime of violence and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Dec. 4, 2009, Beaumont police officers were dispatched to BBVA Compass Bank on Phelan Boulevard in Beaumont, in reference to a robbery. During their investigation, officers learned that a man wearing a black mask entered the front door when tellers were changing their registers, resulting in more cash than usual being on hand at the counter. He produced a handgun and started shouting at employees as he approached the counter. He placed a blue nylon bag on the counter and approximately three times, said, "Give me your money now!" The man pointed the gun at several of the bank stations, showing employees the registers from which he wanted money. He did not point to any of the stations that had no money in them, which was strange to the employees. When employees hesitated, he said he would shoot one of them to show them he was serious. Employees put the money in the bag as directed, and, after the man grabbed the bag, he told the employees to go to the back. He told them not to come out and then he quickly fled on foot. The employees locked themselves in a room to hide until officers arrived. It was later determined that $29,170.89 had been stolen during the robbery.On Jan. 9, 2010, as the manager of the Guaranty Bank on Interstate 10 East in Beaumont walked toward the entry door to lock the door in preparation to close for the day, a man wearing a mask and dressed in black entered the bank with an automatic handgun. The man pointed the firearm toward her and another worker and ordered them to get on their knees. They did not move fast enough so the man chambered a round in the gun to show that the gun was loaded and he was serious. In doing so, a .40 caliber live round dropped to the floor that had already been in the chamber. He then made them crawl to the back of the lobby and lay down on the floor.
A co-actor with a handgun entered the bank behind the first man. The co-actor went to the counter and approached a customer, pointed a gun at her back, and told her "get your hands up." The customer raised her hands and dropped $60 that she was holding in her hand. The robber took her money and ordered her to walk to the back of the lobby. He opened the door that led to the break room/restroom areas. At that moment, a hired contractor who had been working on signs at the bank, exited the restroom and was also ordered around at gunpoint. The co-actor then led Larzo and the contractor back to the lobby and onto the floor. An employee put money in a bag as instructed by one of the robbers. The employee also put a "dye pack" and "bait bills" in the bag. The robber wanted more money, and asked for a manager. The robber was told there was no more money and the robbers then left the bank on foot.
A witness had seen the two actors being dropped off at the bank by the driver of a car that left the area and parked in the area of a nearby hotel. When the actors left the bank, they ran to the get-away car. Witnesses observed the men as a dye pack exploded while one of the robbers was carrying the bag of money. The explosion caused the robber to fall, but he got up and limped to the vehicle which then sped away.
During a subsequent investigation of a robbery at Harbor Freight Store in Beaumont, officers interviewed Jonathan Roberts who confessed to taking part in both bank robberies as well as the Harbor Freight Store robbery. Roberts knew details about the robberies that were not released to the public, such as the description of the witnesses and the presence of the dye pack in the January 9, 2010 bank robbery.
This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.
Five Shelby County Residents Indicted in Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Five Shelby County, Texans residents have been arrested in connection with a drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A 13-count indictment was returned by a federal grand jury on Apr. 17, 2013 charging the following individuals with federal gun and drug crimes:
Lakeva Shillette Hill, a/k/a Sugar Momma, 35;
Lester Earl Pitts, 48;
Vincent Jermaine Lathan, a/k/a Reed Cartwright, 36;
Cornelius Vansharles Gray, 36; and
Anthony Gene Chumbley, 46.The indictment alleges that beginning in May 2010, Hill, Pitts, Lathan and Gray were involved in a conspiracy to distribute marijuana and crack cocaine in East Texas. Hill, Pitts and Gray are also charged with conspiracy to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm during a drug trafficking crime. Pitts is charged with three counts of providing a firearm to a drug trafficker and three counts of providing a firearm to a convicted felon. Hill and Chumbley are charged with being a felon in possession of a firearm.
The defendants were arrested on Apr. 18, 2013 and made initial appearances before U.S. Magistrate Judge Keith Giblin on Apr. 22, 2013.
If convicted of the drug conspiracy charge, the defendants each face up to life in federal prison. The firearms conspiracy charge carries a maximum penalty of 20 years in federal prison. The firearms possession charges carry a penalty of a minimum of five years in prison. For providing a firearm to a drug dealer or a convicted felon, the defendant faces up to 10 years for each charge. For being a felon in possession of a firearm, the defendants each face a minimum of 15 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety, and the Center Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
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.
Mexican National Sentenced for Federal Immigration Violation in EDTXRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 36-yesr-old Durango, Durango, Mexico, man has been sentenced to federal prison for immigration violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juan Gallardo-Simental pleaded guilty on Nov. 15, 2012, to being unlawfully present in the United States after having been previously deported, and was sentenced to 14 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.
According to information presented in court, on Aug. 28, 2012, Gallardo was found at the Harrison County jail by federal agents. Further investigation revealed Gallardo was unlawfully in the United States after having been deported following a battery conviction in Benton County, Arkansas, in 2006. Gallardo was indicted by a federal grand jury on Sep. 12, 2012 and charged with immigration violations. Gallardo will be deported following the completion of this prison sentence
This case was investigated by the Harrison County Sheriff’s Office and the Homeland Security Investigations HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
Jefferson County Man Arrested for Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — A 32-year-old Port Neches, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Dale Harrison was arrested on Apr. 19, 2013 pursuant to a federal criminal complaint charging him with possession, distribution, receipt, and production of child pornography. Harrison appeared before U.S. Magistrate Judge Keith F. Giblin today.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, Harrison faces up to 30 years for the production charges and up to 10 years for the other charges.
This case is being investigated by the Homeland Security Investigations HSI-ICE, the Port Neches Police Department, the Beaumont Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.Harrison County Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 56-year-old Karnack, 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.
David Lynn Sirmans pleaded guilty on Dec. 17, 2012, to manufacturing methamphetamine and was sentenced to 60 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.
According to information presented in court, Sirmans was involved in a conspiracy with others to purchase cold pills containing pseudoephedrine at multiple pharmacies across East Texas. Sirmans admitted to using the cold pills to manufacture methamphetamine at his residence near Karnack.
Sirmans, along with 16 co-defendants, was indicted by a federal grand jury on Feb. 1, 2012 and charged with federal drug trafficking violations
This case was investigated by the Texas Department of Public Safety Criminal Investigations Division and the Harrison County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Harrison County Man Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 56-year-old Marshall, 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.
Adrian Denova Sanchez pleaded guilty on Jan. 30, 2013, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 127 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap. Sanchez was also ordered to forfeiture of $10,000.00 to the U.S. Marshal Service.
According to information presented in court, between November 2009 and October 2012, Sanchez was involved in a conspiracy to manufacture and distribute methamphetamine and cocaine in East Texas. Sanchez admitted to distributing over 50 grams of methamphetamine and selling a semi-automatic pistol during the conspiracy. Sanchez and four others were indicted on Nov. 7, 2012 and charged with federal drug and gun crimes.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department, the Harrison County District Attorney’s Office, the Harrison County Sheriff’s Office and the Texas Department of Public Safety-Special Crimes and prosecuted by Assistant U.S. Attorney Allen Hurst.
$1 Million Settlement Enhances Land and Sea in the Eastern District of TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — U.S. Attorney John M. Bales announced a settlement reached with a European shipping corporation has resulted in significant enhancements to nature conservation groups in the Eastern District of Texas.
The $1 million settlement was announced at a press conference on the banks of Village Creek in Hardin County, Texas today. CIMPSHIP Transportes Maritimos, S.A., a Portuguese corporation headquartered in Funchal, Portugal, was initially indicted in 2010 and charged with conspiring to violate environmental laws causing willful pollution of waterways within the Eastern District of Texas.
According to the indictment, CIMPSHIP owned the Niebla, a 38,000 ton ocean-going ship which was operated as a bulk-freight carrier transporting bulk cargo from various ports in the Gulf Coast including Port Arthur, Texas. It is alleged that from Mar. 2008 through Aug. 2009, Niebla crew members failed to maintain an Oil Record Book as required by federal law.
A settlement agreement was reached between the government and CIMPSHIP in which CIMPSHIP agreed to pay a $1 million community service payment to be used for local conservation efforts in lieu of prosecution. Federal statutes authorize such settlements to Congressionally-approved Foundations.
Of the $1 million, $600,000 was provided to The Conservation Fund, a nonprofit organization that works to conserve special places in Texas and across the country, and used to purchase a critical parcel of land in a sensitive portion of the Big Thicket National Preserve. The 361 acres are located near Village Creek in Hardin County.The remaining $400,000 was provided to the National Marine Sanctuary Foundation and used to support research and monitoring activities at the Flower Garden Banks National Marine Sanctuary. The Flower Garden Banks National Marine Sanctuary is home to the northernmost coral reef on the U.S. continental shelf and boasts a habitat that is relatively pristine, due in part to protective sanctuary regulations. The sanctuary is located approximately 90 miles southwest of Sabine Pass, Texas in the Gulf of Mexico.
This case was investigated by the U.S. Coast Guard and prosecuted by Assistant U.S. Attorney Joseph R. Batte and former Assistant U.S. Attorney Kevin D. CollinsSix North Texans Indicted in Mortgage Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Six North Texans have been indicted and arrested in connection with a mortgage fraud conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A five-count indictment was returned by a federal grand jury on Apr. 12, 2013 charging the following individuals with conspiracy to commit mail and wire fraud:
Lawrence Michael Day, 63, of Fort Worth
Donna Shirley Cobb, 52, of Aledo, Texas
Bryan Jerome Scott, 42, of Spring, Texas
Michael Jerome Edwards, 40, of Flower Mound/Lewisville, Texas
Scott Cameron Sherman, 37, of Mansfield, Texas
Donald Lee Mattox, 40, of Mansfield, TexasThe indictment alleges that from Sep. 2005 through July 2008, the defendants conspired with each other to defraud lending institutions by obtaining mortgage loans using fraudulent information. According to the indictment, the defendants devised a scheme in which Day recruited buyers, such as Mattox, to submit fraudulent loan applications for home mortgages. To facilitate the scheme, Edwards and Scott, loan officers, falsified materials including employment and rental income on loan applications. Builders, such as Sherman and Mattox, permitted the actual purchase price of the homes to be overstated on the loan documents. Cobb, an escrow officer, prepared fraudulent documents reflecting false purchase prices and disbursements. The conspiracy extended to transactions on 28 Texas residential properties located in Fort Worth, Frisco, Fairview, Dallas, McKinney, Cedar Hill, Prosper, Cresson, Watauga, Euless, Hurst, Heath, Murphy, and Plano. Day, Edwards and Sherman are also charged with two counts of wire fraud and Day is charged with two counts of aggravated identity theft.
The defendants are scheduled to make initial appearances this afternoon before U.S. Magistrate Judge Amos Mazzant.
If convicted of the conspiracy charge, the defendants each face up to 30 years in federal prison. The wire fraud charges also carry a maximum penalty of 30 years in federal prison. The identity theft charges carry a penalty of two additional years in federal prison.
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 is being investigated by the FBI and the FHFA-OIG and prosecuted by Assistant U.S. Attorney Chris Eason.
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.
Kaufman County Man Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 44-year-old Terrell, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Clinton Squires pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.
According to information presented in court, on Aug. 2, 2012, Squires distributed approximately 8 grams of methamphetamine to Jason Ray Ragan in Terrell, Texas. Squires knew Ragan intended to return to Gregg County, Texas with the methamphetamine for redistribution in the Eastern District of Texas. Squires also admitted to possessing more than 50 grams of methamphetamine at his residence on Aug. 3, 2012. In addition to supplying drugs to Ragan, Squires also traveled to Tyler, Texas; Lindale, Texas, and Pritchett, Texas to distribute methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Squires and Ragan with federal drug crimes.
Ragan pleaded guilty on Feb. 6, 2013 and is awaiting sentencing. Squires faces a minimum of 10 years and up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Nacogdoches County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 31-year-old Nacogdoches, 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.
Lincoln Jerome Watts pleaded guilty on Nov. 19, 2012, to being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Nov. 13, 2011, law enforcement authorities responding to a report of a disturbance involving a weapon encountered Watts in the 100 block of Zula Street in Nacogdoches, Texas. Watts consented to a search and was arrested after an officer discovered a loaded pistol in Watts’ front pants pocket. Further investigation revealed Watts was a convicted felon having been found guilty of aggravated robbery in Nacogdoches County; possession of a firearm while under indictment in the Eastern District of Texas; possession of a stolen firearm in the Eastern District of Texas; and burglary of a federal firearms licensee in the Eastern District of Texas, all in 2001. Federal law prohibits a convicted felon from owning or possessing firearms or ammunition. Watts was indicted by a federal grand jury on Oct. 3, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.Six GRAND SALINE, TEXAS MAN SENTENCED FOR BEING A FELON IN POSSESSION OF A FIREARM Expired Inspection Sticker Leads to Federal Prison SentenceRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 49-year-old Grand Saline, Texas man has been sentenced to serve more than three years in a federal prison for possessing a firearm after having been previously convicted of three felony offenses, announced U.S. Attorney John M. Bales today.
Andrew Mark Harris pleaded guilty on January 10, 2013, to possessing a .22 caliber pistol loaded with seven bullets after having been convicted of 3 felony crimes and was sentenced to 40 months incarceration by U.S. District Judge Leonard Davis during a hearing today.
According to information presented in court, on April 26, 2012 a Grand Saline police officer stopped Harris for driving a car displaying an expired inspection sticker. The officer arrested Harris for the offense and then conducted a property inventory of the car’s contents. The inventory led to the discovery of the loaded pistol. In 2004 Harris was convicted in federal court for distributing methamphetamine. He also has Debit Card Abuse and Credit Card abuse convictions in Kaufman and Van Zandt Counties, respectively.
This case was investigated by the Grand Saline Police Department and the Bureau of Alcohol, Tobacco, and Firearms, Tyler Office and was prosecuted by Assistant U.S. Attorney Jim Noble.
Eleven Indicted for Money Laundering, Trafficking Cocaine Through East TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Eleven individuals have been indicted for being involved in a major cocaine distribution ring responsible for money laundering and trafficking drugs through the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An indictment was returned by a federal grand jury on Apr. 4, 2012, charging three individuals with conspiracy with intent to distribute cocaine. A separate two-count indictment was returned on Feb. 6, 2013 charging eight individuals with conspiracy with intent to distribute cocaine and conspiracy to launder money. Federal agents with the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation executed arrest warrants today for the 11 defendants. Those named in the indictments, which were unsealed today, are:
Jerry Trevino, 46, of Spring, Texas;
Alvin Nelson, 60, of Houston;
Thomas Drew Widak, 44, of Houston;
Cesar I. Alvarez-Barrera, 43, of Tomball, Texas;
Eduardo Silva, 39, of Roma, Texas;
Juan Javier Correa, 53, of McAllen, Texas;
Douglas Francis Waindel, 29, of Atlanta, GA;
Jaime Luis Vivero-Flores, 46, of Houston;
Jesus Amaya-Saenz, 29, of Hockley, Texas;
Alfredo Soto-Valdez, 39, of Austin; and
Sandra Calderon Martinez, 31, of Houston.The April 2012 indictment alleges that from 1995 to June 2011, Trevino, Nelson and Widak conspired with others to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere.
The February 2013 indictment alleges that from 2003 to February 2013, Alvarez-Barrera, Silva, Correa, Waindel, Vivero-Flores, Amaya-Saenz, Soto-Valdez, and Martinez conspired to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere. They are also charged with conspiring to launder the proceeds of their illegal drug trafficking enterprise.
This case is the result of an ongoing 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. During this operation, two individuals (Barrera and Trevino) believed to be leaders of major drug trafficking were arrested. Correa, who is also believed to be the leader of a major drug trafficking organization, remains at large. Law enforcement authorities are also still searching for Amaya-Saenz and Martinez.
The defendants all face a minimum of 10 years and up to life in prison for the drug conspiracy charge. The money laundering conspiracy charge carries a penalty of up to 20 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Jefferson County Sheriff’s Office, the Port Arthur Police Department, the Houston Police Department, the Harris County Sheriff’s Office, the Nacogdoches County Sheriff’s Office, the U.S. Marshals Service and the Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney John Craft.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Wood County Gun Dealer Guilty of Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 51-year-old Yantis, Texas woman has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Andrea Jaine Burns London pleaded guilty to conspiracy to not keep required records today before U.S. Magistrate Judge Judith Guthrie.
London and Lucretia Beth Brown, 45, also of Yantis, were indicted on July 11, 2012, and charged with gun trafficking violations. Federal agents executed search warrants at their home and business in November 2011. A warrant was issued for their arrest, but it was soon discovered that the pair had left the United States for the Philippines in February 2012. Assistance was requested from the International Investigations Branch and a lead was sent to the Diplomatic Security Service in Manila. On Oct. 9, 2012, Philippine Immigration Agents arrested London and Brown in Cebu without incident. Both subjects were transported to Manila to begin the deportation process. On Nov. 8, 2012, London and Brown were escorted by Philippine Immigration Agents from Manila to Los Angeles where they were taken into custody by the Pacific Southwest Regional Fugitive Task Force.
According to information presented in court, from January 2011 to July 2011, London and Brown transported guns from the inventory of Lake Fork Gunslinger & Outdoors in Emory, Texas, to gun shows in Oklahoma, Missouri, and Arkansas, and then sold the guns without properly recording the name, age, and place of residence of the buyers. Brown pleaded guilty on Feb. 14, 2013, to conspiracy to fail to perform backgrounds checks and is awaiting sentencing.London faces up to 10 years in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.Jefferson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 24-year-old Beaumont man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Brandan Griffith pleaded guilty to possession of child pornography today before U.S. District Judge Keith F. Giblin.According to information presented in court, on Jan. 20, 2012, federal and local agents executed a search warrant at Griffith’s residence in Beaumont, Texas. Several computers and digital storage devices were seized during the search and found to contain more approximately 111 images and 59 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Griffith faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Jefferson County Man Sentenced for Burglarizing BankRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Beaumont, Texas man has been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Michael Anthony Jones pleaded guilty on Jan. 14, 2013, to bank burglary and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone. Jones was also ordered to pay restitution in the amount of $2,908.50.According to information presented in court, on June 8, 2012, Jones burglarized the Chase Bank branch on Washington Blvd. in Beaumont by breaking a window while the bank was closed. Jones admitted to stealing $2,908.50 in cash from the bank. Jones was arrested in Louisiana on Aug. 2, 2012, and questioned about an unrelated charge. During questioning, he admitted to burglarizing the bank in Beaumont. Jones was indicted by a federal grand jury on Nov. 7, 2012 and charged with bank burglary.
This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
U.S. Attorney Welcomes Civil Rights LeaderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT – U.S. Attorney John M. Bales welcomed Reverend William A. Lawson as the guest speaker at a special program commemorating the observance of African American (Black) History in Beaumont today.
This year marks two important anniversaries in the history of African Americans and the United States. On January 1, 1863, the Emancipation Proclamation set the United States on the path of ending slavery. A wartime measure issued by President Abraham Lincoln, the proclamation freed relatively few slaves, but it fueled the fire of the enslaved to strike for their freedom.
In 1963, a century later, America once again stood at the crossroads. Nine years earlier, the U.S. Supreme Court had outlawed racial segregation in public schools, but the nation had not yet committed itself to equality of citizenship. Segregation and innumerable other forms of discrimination made second-class citizenship the extra-constitutional status of non-whites. Another American president caught in the gale of racial change, John F. Kennedy, temporized over the legal and moral issue of his time. Like Lincoln before him, national concerns, and the growing momentum of black mass mobilization efforts, overrode his personal ambivalence toward demands for black civil rights. On August 28, 1963, hundreds of thousands of Americans, blacks and whites, Jews and gentiles, Protestants and Catholics, marched to the memorial of Abraham Lincoln, the author of the Emancipation Proclamation, in the continuing pursuit of equality of citizenship and self-determination. It was on this occasion that Martin Luther King, Jr. delivered his celebrated “I Have a Dream” speech. Just as the Emancipation Proclamation had recognized the coming of the end of slavery, the March on Washington for Jobs and Freedom announced that the days of legal segregation in the United States were numbered.
Rev. Lawson, a native of St. Louis, Missouri, earned Bachelor of Divinity and Master of Theology degrees from Central Baptist Theological Seminary. After graduation, he moved to Houston to serve as Professor of Bible and Director of the Baptist Student Union at Texas Southern University. Rev. Lawson is the founding pastor of Wheeler Avenue Baptist Church. With the help of his wife, Audrey, the church was first established in their home in June 1962. Since the time of the church’s birth during the early years of the Civil Rights Movement, Rev. Lawson has been deeply involved in advocacy activities for African Americans, Hispanics, women, and the poor. During his 42-year tenure as pastor, Wheeler Avenue Baptist Church grew to over 8,000 members with many outreach programs. Rev. Lawson has received honorary doctorates from Howard Payne University, The University of Houston, and Texas Southern University. He is now retired from his pastorate, but Rev. Lawson remains active in various community causes, civic clubs and local government efforts.
As a young pastor, Rev. Lawson became acquainted with Martin Luther King, Jr. Dr. King once visited Wheeler Avenue Baptist Church, when it was only a one-story, frame house with 50-60 members. Dr. King invited Rev. Lawson to join him, Dr. Ralph Abernathy, and others to be a part of the Southern Christian Leadership Conference in Atlanta. Fearing that his departure would seriously weaken his small church, Rev. Lawson declined. He continued to work closely with Dr. King to establish the Houston chapter of the SCLC and thus was instrumental in pioneering the cause of civil rights there.
In 1996, the William A. Lawson Institute for Peace and Prosperity (WALIPP) nonprofit organization was established by a group of community leaders to honor Rev. Lawson on the occasion of his 50 years in the ministry. WALIPP is the parent agency of WALIPP-Texas Southern University Preparatory Academy, WALIPP Senior Residence independent living facility and WALIPP Public Defender Program, all located in Houston.
Rev. Lawson graciously agreed to share his personal experiences with Dr. King, with U.S. Attorney Bales and employees of the Eastern District of Texas. The event was held in Beaumont and transmitted to employees in the Lufkin, Tyler, Plano, Sherman, and Texarkana Divisions.
Newton County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 61-year-old Deweyville, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mark James Frederick pleaded guilty on Oct. 30, 2012, to possession of child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, on Jan. 14, 2011, police received a report claiming a minor had been sexually assaulted by Frederick. The minor provided a statement to police that Frederick sexually assaulted her on several occasions, and, on at least one occasion, took Polaroid photographs of her engaged in actual or simulated sexual acts. Federal officials executed a search warrant at Frederick’s residence in Deweyville, Texas, and seized a laptop computer and numerous compact discs. Although photographs of the minor were not found, a forensic examination of the seized items revealed more than 600 images of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Frederick was indicted by a federal grand jury on Sep. 5, 2012, and charged with child pornography violations.
This case was investigated by the Federal Bureau of Investigation and the Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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.Man Sentenced for Enticing Minor at Port Neches ParkRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Edinburg, Texas, man has been sentenced to federal prison for enticing a minor in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Hector Capetillo Rodriguez pleaded guilty on Oct. 31, 2012, to coercion or enticement of a child and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, on May 30, 2012, Rodriguez approached a child inside a Port Arthur, Texas Wal-Mart and requested assistance in locating a particular toy. During the conversation, Rodriguez asked for the child’s cellular phone number, which the child gave him. Later that evening, Rodriguez began sending the child text messages thanking the child for assisting him. An adult family member saw the text messages and contacted police, who then assumed the child’s identity and continued the text conversation with Rodriguez. The defendant’s text messages became sexual and a meeting was arranged between Rodriguez and the police posing as the child. Rodriguez arrived at Port Neches Park for what he believed to be a sexual encounter with the child and was arrested by police.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case is being investigated by HSI/ICE, the Port Arthur Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Jury Convicts Pasadena, Texas Man in $11 Million Investment Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 58-year-old Pasadena, Texas man has been found guilty of investment fraud charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A federal jury needed just six minutes to convict Gary Lynn McDuff of conspiring to defraud investors of over $11 million in connection with an investment fraud scheme and laundering the proceeds. The verdict was handed down on Mar. 27, 2013, following a two-day trial before U.S. District Judge Richard A. Schell. McDuff’s co-conspirators, Gary Lancaster, 61, of Oregon, and Robert Reese, deceased, of Carmel, CA, previously pleaded guilty and were sentenced to federal prison for their roles in the scheme.
According to information presented in court, McDuff and Lancaster agreed to create the Lancorp 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 also sell the investment, despite the fact that Reese had been barred by the State of California from selling securities based on past fraudulent conduct. 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.
McDuff faces up to 20 years in federal prison on each count of conviction. 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 and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorneys Shamoil T. Shipchandler and Camelia Lopez.
Canton, Texas Police Officer Arrested for Drug ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 32-year-old Canton, Texas Police Officer has been arrested for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Melvin Bradshaw was indicted by a federal grand jury on Mar. 27, 2013 and charged with six counts of acquiring a controlled substance by misrepresentation. Bradshaw was arrested this morning and went before U.S. Magistrate Judge Judith Guthrie this afternoon for an initial appearance.
According to the indictment, on six separate occasions from January to November 2012, Bradshaw is alleged to have used his position as a police officer to obtain hydrocodone by fraud, deception or misrepresentation. Bradshaw is alleged to have acquired the hydrocodone from individuals who had legitimate prescriptions to possess the substance.
If convicted, Bradshaw faces up to four years in federal prison on each charge.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Alan Jackson.
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.
Four Jefferson County Men Indicted on Federal Mail Fraud ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An indictment was returned by a federal grand jury on Mar. 6, 2013 charging Christopher Thomas, 41, Lawrence Thomas, 42, Haleem Collins, 35, and Quarmi Garlington, 25, with conspiracy to commit mail fraud.
The indictment, which was unsealed today, alleges that from Nov. 6, 2006, to Mar. 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service. According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved. Once the defendants either actually crashed the vehicles, or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel. The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers. Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims.
The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.
If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Port Arthur Police Department, and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
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.
Former Texas Health and Human Services Investigator Guilty of Theft of Federal FundsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 62-year-old Diboll, Texas woman has pleaded guilty to theft of federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Melva Darlene Blakemore pleaded guilty to an Information charging her with theft of federal funds on Mar. 26, 2013 before U.S. District Judge Marcia Crone.According to information presented in court, in May of 2008, while Blakemore was employed as a Senior Investigator with the Texas Health and Human Services Commission advised an individual receiving Supplemental Nutrition Assistance that they had been overpaid $2,520 on their Lone Star Card. Blakemore told the individual that if they did not repay the money, she would be indicted and prosecuted. Blakemore also advised the individual that if the money was paid in cash, with no receipt expected, Blakemore would send the money to someone she knew in Austin and that no charges would be filed. The individual contacted local authorities who were able to observe the individual meeting Blakemore in a Nacogdoches, Texas parking lot. Blakemore left the parking lot and drove away with the money before stopping to deposit a portion of it into her bank account. The remainder of the money was found in her vehicle.
Blakemore faces up to 10 years in federal prison and restitution of up to $31,008.00. A sentencing date has not been set.
This case is being investigated by the Texas Health and Human Services Commission, Texas Rangers, Federal Bureau of Investigation, Texas Department of Public Safety and the Nacogdoches County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Smith County Man Sentenced for Federal Drug, Gun CrimesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 34-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marco Aguilera pleaded guilty on Sep. 4, 2012, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime. He was sentenced today to 40 months for the drug conviction and 60 months for the firearms conviction. U.S. District Judge Michael H. Schneider ordered the sentences to be served consecutively for a total of 100 months in federal prison.
According to information presented in court, in March 2012, Aguilera possessed and distributed methamphetamine in a Tyler, Texas apartment. He admitted to conspiring with others to distribute more than 150 grams of methamphetamine in the Tyler area. A federal grand jury returned an indictment on Apr. 11, 2012 charging Aguilera with federal drug trafficking violations.
This case was investigated by the Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.
North Carolina Women Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two North Carolina women have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chelsea Elizabeth McDowell, 27, of Hickory, NC, and Sandra Christilov Sylvester, 41, of Lawndale, NC, pleaded guilty in November 2012 to conspiracy to possess with intent to distribute methamphetamine. McDowell was sentenced to 54 months in federal prison and Sylvester was sentenced to 66 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, up until Jan. 29, 2011, McDowell and Sylvester conspired with others to assist in transporting methamphetamine and money obtained from selling drugs to East Texas. During that time, both women were arrested in the Eastern District of Texas for possessing methamphetamine. They each admitted to being responsible for distributing methamphetamine through East Texas to Atlanta, Georgia. A federal indictment was returned on Apr. 11, 2012, charging them with federal drug crimes.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Jefferson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 34-year-old Port Neches, Texas, man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeremiah Paul Selman pleaded guilty to possession of child pornography today before U.S. District Judge Marcia Crone.According to information presented in court, on Oct. 26, 2011, federal officials executed a search warrant at Selman’s residence in Port Neches, Texas. A computer was seized during the search and found to contain more than 600 images of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Selman was indicted by a federal grand jury on Jan. 10, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Selman faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Texarkana Teen Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 19-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Temetrius Manning pleaded guilty on Oct. 30, 2012, to bank robbery and was sentenced to 84 months in federal prison today by U.S. District Judge Michael H. Schneider. Manning was also ordered to pay restitution in the amount of $3,490.99.According to information presented in court, on Aug. 27, 2012, Manning entered the Wells Fargo Bank in Texarkana, Texas, and presented a threatening note to a bank teller demanding money. Manning then fled the bank with the money before being apprehended shortly after. Manning admitted to the charges following his arrest. He was indicted by a federal grand jury on Sep. 12, 2012 and charged with bank robbery.
This case was investigated by the FBI and the Texarkana, Texas Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Hardin County Lawyer Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Silsbee, Texas lawyer has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Matthew Taylor Morones pleaded guilty on Sep. 6, 2012 to bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 21, 2005, Morones was appointed as the receiver for the Indian Paintbrush Development (IPD). At that time, the organization had approximately $365,000 in its bank accounts, held at two different financial institutions. From May to July 2007, Morones used the money from IPD’s account to purchase six certificates of deposit (CDs) from Guaranty Bank totaling $365,000. On July 30, 2007, Morones obtained a $90,000 loan from Guaranty Bank, which was used to purchase a home. Morones used one of the CDs purchased with IPD’s money as collateral to obtain the loan. Morones was indicted by a federal grand jury on Mar. 21, 2012.
Morones has already paid back over $200,000.00. He was ordered today to pay the remaining restitution in the amount of $165,000.00.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Smith County Man Sentenced for Attempted Arson, Solicitation of Murder for HireRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Tyler, Texas, methadone clinic owner has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Edward Jacobs pleaded guilty on Dec. 18, 2012, to attempted arson and solicitation of murder for hire and was sentenced to 188 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on Mar. 19, 2012, Jacobs gave Daniel Kubisty $3,000 to burn down the Add-Life Recovery Center, a methadone clinic located in a building at 3322 E. Fifth Street in Tyler. Jacobs and Kubisty conspired to burn down the building in order to gain a competitive advantage for the Methadone Clinic of East Texas, which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup.
After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony. During the meeting, Jacobs offered to pay the hit-man $12,000 for Kubisty’s murder. ATF was monitoring the meeting and arrested Jacobs at the scene.
Kubisty pleaded guilty to attempted arson on Jan. 19, 2013 and is awaiting sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Henderson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 50-year-old Athens, 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.
Frankie Darrell Durant pleaded guilty on Jan. 8, 2013, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on July 26, 2011, three firearms were located in a storage room in Smith County, Texas which was being rented by Durant. Further investigation revealed Durant was a convicted felon having been previously been found guilty of possession of a controlled substance. As a convicted felon, Durant is prohibited by federal law from owning or possessing firearms or ammunition. Durant was indicted by a federal grand jury on Sep. 12, 2012.
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 Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Gregg County Man Sentenced for Dealing MethamphetamineRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 49-year-old Kilgore, 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.
Brett Bates pleaded guilty on Mar. 14, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, up until May 27, 2011, Bates conspired with other individuals to acquire and distribute methamphetamine in the Gregg County area of East Texas. Bates admitted to being responsible for the distribution of more than 150 grams of methamphetamine during this time. Bates was named in a federal indictment returned by a grand jury on Nov. 2, 2011.
Five of Bates’ co-defendants have also been sentenced. Terri Rhea Young received a sentence of 24 months in federal prison on July 23, 1012. David Christopher Wheeler and Raelene Dawn Ferguson were each sentenced to 46 months in federal prison on July 20, 2012. Matthew Dean Willis was sentenced to 15 months in federal prison on June 12, 2012. Harold Burgess Dickens received a 210 month sentence on Jan. 10, 2013.
This case was investigated by the DEA, Rusk County Sheriff’s Office and Kilgore Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
California Man Sentenced for Dealing Cocaine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A44-year-old San Bernardino, CA, 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.
Reginald Lavann Eastern pleaded guilty on Aug. 30, 2012, to possession with intent to distribute cocaine and was sentenced to 43 months in federal prison today by U.S. District Judge Leonard E. Giblin.
According to information presented in court, on Mar. 4, 2012, Eastern was in possession of approximately 1 kilogram of cocaine which he intended to deliver to others in the Eastern District of Texas.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Anderson County Residents Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Three Anderson County, Texas residents have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brandon Thomas Maciel, 26, of Palestine, Texas, Valerie Lynn Doyle, 24, of Itasca, Texas, and Jeremy Bice, 35, of Anderson County, Texas pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine in 2012 and were sentenced today by U.S. District Judge Leonard E. Davis. Maciel received a sentence of 87 months in federal prison, Doyle was sentenced to 70 months in federal prison and Bice was sentenced to 37 months in federal prison.
According to information presented in court, on Mar. 3, 2010, Bice purchased 2.4 grams of cold pills containing pseudoephedrine from a Wal-Mart in Palestine, Texas. Oct. 29, 2010, Maciel purchased 2.4 grams of cold pills containing pseudoephedrine at a Walgreens store in Palestine, Texas. Doyle purchased 2.88 grams of cold pills containing pseudoephedrine at the same Walgreens store. Maciel also admitted to making two other purchases of cold pills at a CVS store and a Wal-Mart in Palestine on the same day and on numerous other occasions. The cold pills were purchased to be used in the manufacture of methamphetamine. A federal indictment was returned on Apr. 11, 2012, charging Maciel, Doyle and Bice with federal drug crimes.
An additional co-defendant, Craig Lee Bice, pleaded guilty to the same charges and is awaiting sentencing.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Stiles Unit Inmate Sentenced for Threatening U.S. PresidentRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 26-year-old Cooper, Texas man has been sentenced to federal prison for making threats against the President of the United States of America in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Joseph Scott Sword, also known as Stretch, pleaded guilty on Dec. 19, 2012, to making threats against the President and was sentenced to 46 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on May 31, 2011, Sword, who was incarcerated in the Texas Department of Criminal Justice (TDCJ), Stiles Unit, located in Jefferson County, Texas, wrote a letter threatening the President and First Family. Sword stated that he was a member of a violent street gang called the Black P Stone and that he had men on the street watching the President and his family. Sword was indicted by a federal grand jury on July 18, 2012.
Sword must complete the remainder of his state prison sentences of 8 years for burglary and 6 ½ years for robbery before he will be transferred to federal prison to begin serving this 46 month sentence.
This case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Angelina County Man Sentenced for Purchasing Cold Pills in East TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A45-year-old Lufkin, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mark Dwaine Helton pleaded guilty on Oct. 31, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to78 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 12, 2011, Helton purchased cold pills containing pseudoephedrine at a Walmart store in Lufkin with the intent to manufacture methamphetamine. During the investigation, it was determined that from August 2011 to April 2012, Helton purchased cold pills containing pseudoephedrine on seven separate occasions from a Lufkin Wal-Mart, once from a Nacogdoches, Texas CVS pharmacy and eight separate times from a Lufkin Walgreens pharmacy. The average person attempting to correct sinus de-congestion problems is believed to purchase only one or two boxes of the product per year. Helton and seven others were indicted on Aug. 15, 2012 and charged with federal drug trafficking violations.
This case was investigated by the FBI, Texas Department of Public Safety Criminal Investigations Division and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.12 Southeast Texas Residents Arrested on Federal Racketeering ChargesRead the Press Release
Department of Justice
Office of Public AffairsFour defendants face capital murder charges
BEAUMONT, Texas – Twelve Southeast Texas residents have been indicted and arrested in connection with a “white’s only” racketeering enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
The four-count superseding indictment was returned by a federal grand jury on Mar. 7, 2013. Seven of the charged defendants were already in custody and the remaining five were arrested on Mar. 8, 2013. The indictment, which was unsealed today in the Eastern District of Texas, names Kenny Don Stanley, 25, of Vidor, Texas; Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman,” 33, of Port Arthur, Texas; Kristopher Leigh Guidry, a/k/a “Hollywood,” 28, of Vidor; Vicki Stark-Fitts, 49, of Hull, Texas; Craig Pipps, a/k/a “Lone Wolf,” 40, of Vidor; Erica Nicole Parrott, 27, of Vidor; Ricky Allen Nichols, 54, of Vidor; Michael Taylor Word, 45, of Silsbee, Texas; Juanette Marie Cunningham, a/k/a “Netty,” 46, of Vidor; Mikell Allen Cunningham, a/k/a “Mikey,” 28, of Vidor; Cassi Diane Hetzel, 37, of Silsbee; and Mack Langston Warner, 33, of Silsbee. The indictment alleges that six of the defendants, Stanley, Bourque, Guidry, Stark-Fitts, Pipps, and Mikell Cunningham, participated in the operation and management of the SWS gang. The defendants are scheduled to make initial appearances before U.S. Magistrate Judge Zack Hawthorn today.
According to the indictment, SWS is a race-based organization operating inside and outside of jails and prisons, primarily in Texas. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS, which was founded as the “Stupid Woods,” is also known as “Solid Wood Soldiers” and “Separate White State.” SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder. SWS has a chain of command of president, vice-president, council, major, captain, lieutenant, sergeant, and soldier. SWS members, prospects, and associates refer to the gang as the "wolf pack," “pack,” or "family." The indictment states that SWS has a written constitution and bylaws that outline the duties, responsibilities, and requirements associated with membership. Prospective members, called “prospects,” must be “white” and sponsored by another SWS member. Prospects must serve a probationary period during which their conduct is observed by SWS members. During this period, prospects study and learn the SWS constitution and by-laws and may be required to “work” for the enterprise. “Work” means illegal activity. Prospects are considered part of the SWS family and are therefore subject to the rules and orders of the enterprise, including violent beatings known as “disciplines.” SWS leaders determine if and when a prospect is eligible for initiation into membership. SWS initiation requires a “blood in, blood out” commitment. That is, prospects are subject to a violent beating in order to become a “member.” Members or prospects that leave SWS are likewise subject to a violent beating.According to the indictment, SWS members, prospects, and associates are required to further SWS goals through criminal activity. Members and prospects are therefore required to commit that they will follow without question any order of SWS leadership. In particular, members and prospects are required, when ordered, to perform violent acts without hesitation. Maintaining power and avoiding loss of stature motivates SWS members, prospects, and associates to commit violent acts against individuals and groups believed to be disrespectful or detrimental to SWS.
The indictment charges four of the defendants, Stanley, Bourque, Guidry, and Stark-Fitts with murder in aid of racketeering. According to the indictment, on Mar. 14, 2011, the four used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas. The indictment alleges that the four murdered Sedtal on behalf of SWS, after Sedtal assaulted Word, an Aryan Brotherhood of Texas (ABT) associate. The indictment states that ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal. If convicted of murder as charged, the defendants each face either life imprisonment or the death penalty. The indictment charges all of the defendants with conspiring to distribute methamphetamine between Sep. 2010 and Mar. 2011. If convicted of the conspiracy charge, the defendants each face from 10 years to life in federal prison.
This case is being 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 is being investigated by the ATF, U.S. Marshals Service, U.S. Secret Service, DEA, FBI, U.S. Bureau of Prisons, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, the Beaumont Police Department, and the Silsbee Police Department and is being prosecuted by Assistant U.S. Attorney John B. Ross.
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.
####Wills Point Man Pleads Guilty to Possessing A Short Barrel ShotgunRead the Press Release
Department of Justice
Office of Public AffairsSearch warrant leads to a federal conviction
TYLER, Texas – A 36 year old Wills Point man has pleaded guilty to possessing a short barrel shotgun announced U.S. Attorney John M. Bales today.
Michael Jack Callaway pleaded guilty today in U.S. Magistrate Judith Guthrie’s court to the felony offense of possessing an unregistered short barrel shotgun. A federal grand jury indicted Callaway for the offense on November 7, 2012. Callaway admitted that on August 22, 2012, members of the Van Zandt County Drug Task Force found a short barrel shotgun among numerous rifles, pistols, and shotguns, as well as hundreds of rounds of ammunition, during the execution of a search warrant at his residence in Wills Point, Texas. Callaway must forfeit the seized weapons and ammunition to the United States Attorney’s Office.
Callaway is facing up to ten years in prison and a $250,000.00 fine. A sentencing hearing date has not been set.This case was investigated by the Van Zandt County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.