Northern District of Texas
Press releases recorded for this federal judicial district.
Firearms Trafficker Linked to Cartel Sentenced to 10 Years in PrisonRead the Press Release
A Fort Worth man who attempted to traffic a military-grade machine gun to a Mexican drug cartel was sentenced today to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Daniel Loyola, Jr., 24, pleaded guilty in December 2022 to possession of a machinegun. He was sentenced Friday by U.S. District Judge Reed O’Connor.
“Thanks to excellent undercover work by ATF and Texas DPS, we have thwarted a firearms trafficker intent on sending dangerous guns to a drug cartel,” said U.S. Attorney Leigha Simonton. “The Justice Department is committed to stemming the flow of firearms across the southern border.”
“The fight to keep high powered weapons out of the hands of drug cartels and narco-terrorists is real and here in North Texas. ATF and our partners are working tirelessly to protect both the citizens of the United States and Mexico from the scourge of violence perpetrated by weapons like this. Mr. Loyola’s ten-year sentence should serve as a warning to others looking to get into the firearms trafficking business,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, Mr. Loyola posted on Instagram that he possessed a potential machinegun, a potential silencer, and a .50 caliber rifle – a firearm commonly sought by Mexican drug cartels – and that he wished to buy a high-caliber machine gun.
Seeing these posts, an undercover agent initiated a conversation. Ultimately, Mr. Loyola agreed to purchase an M-60 from the undercover for $20,000 cash, and mentioned that the payment would be coming from Mexico.
On Oct. 25, 2022, Mr. Loyola met with two undercover agents in a parking lot in Fort Worth. He handed over the money, and they presented him with a cardboard box containing an M-60 in three pieces, the frame/receiver and two barrels.
One of the undercover agents explained that the firearm was fully automatic; Mr. Loyola responded, “yeah, I know.” After paying over $20,000 in cash for the firearm, Mr. Loyola began to take possession of the machinegun and was immediately taken into custody.
Following his arrest, Mr. Loyola admitted that he had purchased the M-60 on behalf of an individual who worked for a Mexican drug cartel. He stated that he’d sold multiple firearms to the man before, and that the .50 caliber rifle he’d posted on Instagram was also purchased on the individual’s behalf.
At Friday’s sentencing hearing, Judge O’Connor found that the defendant was engaged in the trafficking of firearms, and applied an enhancement to his sentence based on that finding.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Texas Department of Public Safety conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Levi Thomas prosecuted the case.
Source of Supply for Carrollton Fentanyl Trafficker ChargedRead the Press Release
A Flower Mound man who supplied fentanyl to a trafficker linked to at least one juvenile overdose has been federally charged, announce U.S. Attorney for the Northern District of Texas Leigha Simonton.
Stephen Paul Brinson, 18, was arrested in Flower Mound on Wednesday, charged via criminal complaint with conspiracy to distribute a schedule II controlled substance. He made his initial appearance before U.S. Magistrate Judge Rene Toliver Friday.
“In just four weeks, we have charged five adults accused of trafficking deadly fentanyl to children. The Justice Department will deploy every investigative technique, pursue every lead, and exhaust every legal avenue available to eradicate counterfeit fentanyl pills,” said U.S. Attorney Leigha Simonton. “In the meantime, we urge the community to remind our young people: Any pill not prescribed by a doctor could be lethal. One pill can kill.”
“The latest arrest of Mr. Brinson shows that our determination to reduce the threat of illicit fentanyl and save lives will not stop,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “Let me be clear to those who still continue to traffic fentanyl pills: DEA Dallas and our law enforcement partners such as Carrollton PD will find you and hold you accountable for your selfish actions. The safety of our families and community depend on it.”
“Taking this dealer out of the network puts a significant dent in the dealers’ ability to sell drugs to all DFW-area children. We remain committed to arresting those who put the lives of our children in danger,” said Carrollton Police Chief Roberto Arredondo.
According to the complaint, Mr. Brinson acted as the source of supply for fentanyl to Donovan Jude Andrews, the Carrollton dealer who allegedly capitalized on the arrest of Luis Navarrete and Magalo Cano to advertise his pill business. (Mr. Andrews is allegedly tied to at least one juvenile fentanyl overdose, and Mr. Navarrete and Ms. Cano, along with their supplier, Jason Villanueva, are allegedly tied to ten others.)
Law enforcement identified Mr. Brinson shortly after they arrested Mr. Andrews and his juvenile driver, identified in court documents as “DC,” a Hebron high school student who allegedly chauffeured the dealer around in exchange for fentanyl pills.
In DC’s phone, DEA agents found text messages identifying the Instagram user “superstarxs” – later identified as Mr. Brinson – as a “plug,” or source, for fentanyl pills. A few days later, another young woman also identified Mr. Brinson, whom she called “Steve-O,” as the “main plug” for fentanyl.
On March 8, law enforcement executed a search warrant at Mr. Brinson’s house in Flower Mound, where they encountered his 19-year-old girlfriend apparently under the influence of fentanyl. She told officers that there were crushed-up fentanyl pills near the nightstand in the room that she and Mr. Brinson shared and advised that Brinson had two safes in the bedroom. Inside one of the safes, Carrollton police officers found multiple bags containing more than 1,000 blue counterfeit M/30 pills that field tested positive for fentanyl:
Officers also found a digital scale covered in drug residue, small drug baggies used for repackaging for sale, and bulk U.S. currency. On a console table at the bottom of the stairs, they also found a note from Mr. Brinson’s parents outlining chores they wanted him to do and warning him, “don’t meet people in front of the house or in view of the house.” (Mr. Brinson’s father later told law enforcement he and his wife knew Stephen used fentanyl but claimed they did not know he was dealing pills in front of the home.)
Meanwhile, law enforcement observed Mr. Brinson load a large bag into his Lexus and followed him to a nearby parking lot, where cooperating defendants claimed he often conducted drug transactions. Inside the car, officers found an FN 5.7 pistol, commonly referred to a “cop killer,” and an AR-15 platform rifle; inside Brinson’s sock, they found a small baggy containing an M/30 pill. When he arrived at the Carrollton Jail for processing, Mr. Brinson began kicking his cell door and shouting. He later insisted he was “minding his own [expletive] business in my white-[expletive] house in Flower Mound,” and advised agents and officers that because he was white and living in Flower Mound, Texas, that was going to help him in his case.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Brinson is presumed innocent until proven guilty, as are Mr. Andrews, Mr. Navarrete, Ms. Cano, and Mr. Villarreal.
If convicted, Mr. Brinson faces up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Carrollton Police Department conducted the investigation with the assistance of the Flower Mound Police Department. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
26-Year-Old Fraudster Sentenced to 14 Years in Prison Following Boasts About Criminal ConductRead the Press Release
A young man who turned to fraud to fund the lavish lifestyle he craved was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
J. Nicholas Bryant, 26, of Slaton, Texas, pleaded guilty to wire fraud in November 2022. He was sentenced today by U.S. District Judge James Wesley Hendrix, who handed down a sentence five years longer than the guideline range based on the defendant’s cavalier attitude and the egregious nature of the scheme.
Mr. Bryant engaged in various wire fraud schemes to defraud at least 56 unsuspecting individuals and small businesses during an 18-month crime spree that spanned multiple states.
The fruits of his crimes brought him luxury goods and services – including private jet rides, private yacht excursions, and extravagant meals complete with champagne and steak.
In many instances, Mr. Bryant manipulated online payment platforms like QuickBooks and Veem to make it appear that payments were forthcoming. Knowing that the software would generate payment confirmations immediately but would take several days to notify victims of cancelled payments, Mr. Bryant satisfied vendors and business owners that payments were forthcoming when due, he admitted in plea papers. The payments never funded.
In all, he defrauded and attempted to defraud victims of more than $3.5 million, and successfully racked up nearly $1.2 million in actual losses to the victims, prosecutors said at Thursday’s sentencing hearing.
In one fraud scheme, Mr. Bryant convinced small businesses to front money and equipment to reopen an oil well. In the process, he exploited the trust of former colleagues, friends, and acquaintances who worked in the West Texas oil and gas industry, where business is often conducted with a handshake, the government said. In several others, he defrauded small business owners who were eager for business during the COVID-19 pandemic.
Mr. Bryant did so for pretention, ostentation, and Instagram moments, the government noted at sentencing. The government also observed that rather than expressing remorse for targeting companies that were struggling to survive in the midst of a pandemic that had gutted their business models, Mr. Bryant reveled in his notoriety, bragging about his crimes to media outlets and to his friends.
Judge Hendrix determined that Mr. Bryant had failed to accept responsibility for his crimes and revoked the credit he was set to receive based on acceptance of responsibility. Judge Hendrix also ordered Mr. Bryant to pay $1,185,691.38 in restitution to his victims.
The U.S. Secret Service’s Lubbock Resident Office, the Texas Department of Public Safety’s Criminal Investigations Division, the Lubbock Police Department, the Brazos County Sheriff’s Office, the Brownwood Police Department, Texas Parks & Wildlife of Coleman County, the Lafayette Parish Sheriff’s Office in Louisiana, and the Cody Police Department in Wyoming conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case with the help of Assistant U.S. Attorney Beverly Chapman.
Local banker sent to prison for money laundering conspiracyRead the Press Release
BROWNSVILLE, Texas – A former Wells Fargo branch manager has been ordered to federal prison for helping a drug trafficking ring launder their money through his bank, announced U.S. Attorney Alamdar S. Hamdani.
Stephen Roland Reyna, 36, pleaded guilty Sept. 1, 2021.
Today, U.S. District Judge Rolando Rivera ordered Reyna to serve 20 months in federal prison to be immediately followed by 16 months of supervised release with home detention. At the hearing, the court Reyna was given and held a position of trust with the bank, of which he took advantage. In handing down the sentence, the court noted the amount of money Reyna laundered and the sequence of events in which he participated.
“If you help drug traffickers ‘clean’ their money, you will be prosecuted,” said Hamdani. “It is especially disappointing that a bank manager for Wells Fargo chose to violate his position of trust for easy money, money from organizations that are destroying our communities.”
Reyna was the manager of a Wells Fargo branch in Harlingen. While serving in that position and utilizing his position and knowledge of the banking industry, Reyna assisted a drug trafficking organization to launder $410,000 in drug sale proceeds.
The organization would transport multi-kilogram cocaine loads from the Rio Grande Valley to northern states. Upon successful delivery, thousands of dollars in drug proceeds would then be dispersed through multiple Wells Fargo bank accounts in the northern states.
Reyna would coordinate with multiple co-conspirators in the Rio Grande Valley to launder the funds through their accounts at Wells Fargo. Reyna ensured the proceeds were successfully withdrawn from his branch in Harlingen.
Co-conspirators would frequently pay Reyna in cash right after he helped them get their drug proceeds out of the bank.
Reyna ultimately admitted he suspected the funds were from illegal activity, including narcotics trafficking.
Reyna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from the Cameron County District Attorney’s Office and Wells Fargo. Assistant U.S. Attorneys David A. Lindenmuth and Karen Betancourt prosecuted the case.
Wichita Falls Fentanyl Trafficker Sentenced to 17 ½ Years Following Fatal OverdoseRead the Press Release
A Wichita Falls drug dealer who sold fentanyl to 27-year-old who suffered a fatal overdose was sentenced today to more than 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Lionel DeSaun Henderson, 33, and his former girlfriend, Shameka Tanee Mason, 29, were first charged in July. Mr. Henderson pleaded guilty in November 2022 to possession with intent to distribute a controlled substance and was sentenced Friday by U.S. District Judge Reed O’Connor to 210 months in federal prison. Ms. Mason pleaded guilty in August 2022 to conspiracy to possess with intent to distribute a controlled substance and was sentenced in December to 24 months in federal prison.
In court documents, the pair admitted they knowingly sold counterfeit oxycodone pills laced with fentanyl to an individual who later sold them to his 27-year-old cousin, J.D.K. J.D.K. split the drugs with his coworker. On June 12, 2020, both J.D.K. and his coworker overdosed; the coworker received medical attention and recovered, but J.D.K. died of drug toxicity.
During an interview at a Denton hospital, the coworker told investigators that he and J.D.K. split what appeared to be a 30mg oxycodone tablet. He said some of the remaining pills were stored at J.DK.’s home in Graham, Oklahoma. Agents searched the bedroom and recovered one round blue tablet marked M/30, three green rectangle tablets marked S/90/3, and one pink capsule with illegible markings. The blue M/30 – which appeared identical to brand name oxycodone – instead tested positive for butyryl fentanyl.
Agents then cultivated a confidential source who identified Lionel Henderson as the source of the blue M/30s. He went through Mr. Henderson’s girlfriend, Shameka Mason, to arrange a meeting with an undercover agent at Ms. Mason’s residence in Wichita Falls. On June 25, agents met with Mr. Henderson and Ms. Mason and purchased five M/30 tablets, which later tested positive for fentanyl and acetaminophen.
They then executed a search warrant of Mr. Henderson’s home, where they recovered 497 blue m/30s that later tested positive for fentanyl and acetaminophen, 1,035 multicolored tablets that later tested positive for ecstasy, and multiple firearms, including one that was stolen.
A month later, agents interviewed Ms. Mason, who admitted that she and Mr. Henderson had been dealing illicit substances in December 2018. They began with alprazolam, or “bars,” then escalated to ecstasy, and later to M/30s, which she called “percs,” in December 2019. She claimed she did not know where Mr. Henderson obtained the pills, but admitted they sold the pills for $25 apiece.
In plea papers, Mr. Henderson admitted that he had been selling fentanyl-laced counterfeit pills since March 2020.
The Drug Enforcement Administration’s Dallas Field Division, the Carter County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Oklahoma City Medical Examiner’s Office conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Alleged Fentanyl Trafficker Who Advertised to Carrollton Kids Federally ChargedRead the Press Release
A Carrollton drug dealer who allegedly capitalized on the arrest of two prominent fentanyl traffickers to entice young buyers has been charged with a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Donovan Jude Andrews, 20, was arrested in Carrollton on Wednesday, charged via criminal complaint with conspiracy to possess with intent to distribute a controlled substance. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford Friday morning and was ordered detained pending trial.
According to court documents, in early February 2023, Mr. Andrews allegedly commented on an Instagram post announcing the arrest of Luis Navarrete and Magaly Cano, the pair allegedly tied to at least ten juvenile overdoses in the Carrollton Farmers Branch School District.
Posting under the handle “deegetbandz_3x,” Mr. Andrews noted that Navarrete and Cano “took all the ATTENTION” from law enforcement and divulged that he was selling M/30 pills for $10 apiece. He later shared an Instagram post announcing the overdose deaths of three kids tied to Navarrete and Cano with the caption “F**k em come get em.”
Shortly thereafter, a 14-year-old girl suffering from an apparent fentanyl overdose told police that she purchased five M/30 pills from the individual using the “deegetbandz_3x” Instagram account. She said she paid the individual via cash app and he dropped the pills in her mailbox. Home surveillance video confirmed the delivery.
Law enforcement surveilled Mr. Andrews’ home and observed him allegedly conducting hand-to-hand transactions on the street outside. They also located an 18-year-old girl, a student at Hebron High School, who admitted to buying pills from a man named “Donovan” who used the “deegetbandz_3x” Instagram handle.
In early March, law enforcement conducted a traffic stop on a Toyota Camry linked to Mr. Andrews. Mr. Andrews, who had a baggie of pills stashed inside in his sock, sat in the passenger seat next to a 17-year-old driver. The 17-year-old, a student at Hebron High School, told law enforcement that he drove Mr. Andrews around in return for M30 fentanyl pills.
Mr. Andrews allegedly admitted to law enforcement that he sold M/30 pills using the Instagram handle “deegetbandz_3x.” He further confirmed he delivered pills to the 14-year-old girl’s mailbox and gave the 17-year-old pills in return for his driving services.
According to the complaint, law enforcement concluded that Mr. Andrews allegedly dealt fentanyl to minors knowing fully well that counterfeit M/30 pills like the ones he was distributing were responsible for multiple overdoses and deaths.
“Most of us recoiled in horror when we heard that nine Carrollton children suffered ten fentanyl overdoses in the span of just six months. Mr. Andrews, on the other hand, allegedly seized on the situation as a marketing opportunity. Knowing full well that fentanyl was killing our kids, he allegedly attempted to convert survivors into customers,” said U.S. Attorney Leigha Simonton. “The Justice Department works tirelessly to investigate and prosecute fentanyl traffickers. But when we arrest one dealer, another inevitably pops up to take his place. We need the community’s help to educate our kids about the danger of fentanyl. One pill – or even half or a quarter of one pill – can kill.”
“The arrest of Mr. Andrews serves as notice to those who participate in any aspect of drug trafficking: DEA Dallas will continue to partner with our communities to educate and prevent these drugs from reaching our homes and will most importantly, hold those accountable who choose to distribute and profit from this poison,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Mr. Andrews is presumed innocent until proven guilty in a court of law, as are Luis Navarrete and Magaly Cano.
If convicted, Mr. Andrews faces up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Men Involved in Arlington Restaurant Shooting Sentenced to Combined 20 Years for Firearm CrimesRead the Press Release
Two men involved in a shooting at a restaurant in Arlington have been sentenced to a combined 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
James Edward Johnson, 34, and Leroy Harold White, Jr., 53, were charged via criminal complaint in August 2022 and indicted the following month. Mr. White plead guilty to being a felon in possession of a firearm in October 2022; Mr. Johnson plead guilty to the same charge two weeks later. They were sentenced on Friday to 10 years each in federal prison.
According to court documents, Mr. Johnson and another patron got into a physical altercation with Mr. White and another security guard at JJ’s Corner Lounge in Arlington just before midnight on July 29, 2022.
During the altercation, Mr. White fired his a Smith & Wesson pistol, missing the unidentified patron involved in the altercation. In response, Mr. Johnson fired his Ruger at a random group of citizens that had just entered the business, hitting a victim in their right foot.
Mr. White then approached Mr. Johnson from behind, striking him in the head with his hand. Mr. Johnson whirled around and fired at Mr. White, striking him two times in the front of his body armor and one time in his left arm.
In plea papers, both men admitted that they were previously convicted felons and thus prohibited from possessing firearms or ammunition.
“ATF is proud of our long standing relationship with the Arlington Police Department. Chief Jones is a national leader amongst law enforcement in the fight against firearms violence. His vision to create the NIBIN Engagement Team (NET) led us to these convictions. Mr. Johnson and Mr. White will now have ten years to think about carrying guns illegally in Arlington, Texas. Gun crime will always equal hard time,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
The Bureau of Alcohol Tobacco, Firearms, & Explosives’ Dallas Field Division and Arlington Police Department’s Violent Crime United conducted the investigation. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
3D Printing Company to Pay up to $4.54 Million to Settle False Claims Act Allegations for Export Violations in Connection with NASA and DOD ContractsRead the Press Release
A 3D printing company has agreed to pay the United States up to $4.54 million to resolve allegations that it violated the False Claims Act by improperly transmitting export-controlled technical data to China in violation of the export control laws of the United States in connection with certain NASA and DOD contracts, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In parallel agreements also related to alleged export violations, the company has agreed to a $20 million administrative settlement with the U.S. Department of State, and a $2.77 million administrative settlement with the U.S. Department of Commerce.
Per the terms of a civil settlement executed with the Department of Justice on February 27, 2023, South Carolina-based 3D Systems Corporation agreed to pay $2.27 million in restitution to the federal government within the next 30 days. The company may be required to pay an additional $2.27 million in penalties under the Justice Department settlement agreement, for a total of up to $4.54 million, if it fails to pay at least that amount in civil penalties to the Department of State and the Department of Commerce in connection with the parallel administrative settlements referenced above.
According to the Justice Department Settlement Agreement, 3D Systems – through its Quickparts subsidiary – completed on-demand manufacturing projects both directly and indirectly on contracts issued by DOD and NASA, including for projects involving technical or other data potentially classified under and controlled by the International Emergency Economic Powers Act, the Arms Export Control Act, the Export Administration Regulations, and/or the International Traffic in Arms Regulations (collectively, the Export Control Laws).
Generally, the Export Control Laws prohibit certain controlled items and/or intellectual property from being exported to certain foreign countries, including the People’s Republic of China, without a license or authorization from the appropriate federal agencies. In the Justice Department settlement agreement, the United States alleged that between January 1, 2012 and December 31, 2017 3D exported certain items and/or intellectual property to China without the appropriate license or authorization in violation of the Export Control Laws in connection with certain contracts issued by DOD and NASA in violation of the False Claims Act.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
This matter was jointly investigated by the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the National Aeronautics and Space Administration Office of Inspector General, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement. Assistant U.S. Attorney Kenneth Coffin handled this matter on behalf of the Department of Justice.
Granbury Man Convicted at Trial Following Child Porn Tip by SonRead the Press Release
A Granbury man whose son reported him to law enforcement was convicted at trial of child sexual exploitation, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
After three days of trial and just 45 minutes of deliberation, a federal jury found David Earl Boyd, 64, guilty of two counts of producing child pornography, one count of possession of child pornography, and one count of penalties for registered sex offenders.
According to evidence presented at trial, in the spring of 2022, Mr. Boyd, already a registered sex offender, took sexually explicit images of two young children, aged 6 and 3.
Mr. Boyd’s son discovered nude images of the children in his father’s trash folder. He took a screenshot of the trash gallery and submitted a report to the National Center for Missing and Exploited Children, which forwarded the tip to law enforcement.
Shortly thereafter, officers arrested Mr. Boyd and seized his Samsung smartphone.
During an extraction of the phone, forensic examiners discovered thousands of child pornography images in a directory associated with the application “Hide it Pro,” an application designed to conceal images and videos. (Although Mr. Boyd had previously deleted the app, the directory retained the images and videos.)
“We are grateful to the defendant’s son for reaching out to the National Center for Missing and Exploited Children. It cannot have been easy to report his father’s crimes, but in so doing, he likely saved two children from further victimization. We are proud to hold this predator to account,” said U.S. Attorney Leigha Simonton.
Mr. Boyd now faces a minimum of 45 years in federal prison. He is slated to be sentenced on June 27.
Previously, Mr. Boyd was convicted of possession of child pornography in Taylor County. In 2003, the state sentenced him to three years and required to register as a sex offender.
Homeland Security Investigations’ Dallas Field Office, the Hood County District Attorney’s Office, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case with the help of Assistant U.S. Attorney Alex Lewis. U.S. District Judge Terry Means oversaw the trial.
Man Who Posed as Teenager Online Sentenced to 30 Years in Child Pornography CaseRead the Press Release
A 24-year-old man who posed as a high school student to recruit victims on social media was sentenced Thursday to 30 years in federal prison for child sexual exploitation, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Tyler Patrick Brown, now 25, of Lubbock, was charged via criminal complaint in June 2022 and indicted the following month. He pleaded guilty in September 2022 to production and attempted production of child pornography and was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered a lifetime of supervised release following his sentence and ordered him to pay $25,000 to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act’s reserve fund.
According to plea papers, Mr. Brown admitted he gave multiple children gifts, money, and alcohol in exchange for sexual acts.
He told at least one of the victims, a 16-year-old girl, that he was 17 years old and went to high school online. When the girl spotted an ID that stated he was 24 years old, he claimed it was a fake. While she was under the influence of alcohol, he coerced the child into oral sex, recorded the encounter on his phone, and shared it. The child attempted to distance herself from the relationship, but Brown sent her a photo of his roommate’s gun and threatened to kill himself if she stopped seeing him.
According to court documents, Mr. Brown repeatedly referred to himself as a “sugar daddy.” When he video chatted with his victims, he seldom showed his face or obscured most of it.
In June 2022, Mr. Brown was spotted at a high school girls’ basketball game wearing a lanyard labeled “Press.” Concerned parents contacted law enforcement.
In an interview with law enforcement, Mr. Brown admitted to engaging in 14 sexual relationships with minors after he’d turned 18. At Thursday’s sentencing, it was noted that law enforcement had, in fact, identified 22 children between the ages 13 and 17 who had been victimized by Mr. Brown when he was 20 to 24 years old.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident agency, the Texas Rangers, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation with the significant assistance of local law enforcement agencies who helped identify and contact the victims. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Admitted Child Rapist Sentenced to 50 Years for Child PornographyRead the Press Release
A Dallas man who repeatedly raped a 7-year-old child was sentenced Wednesday to 50 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Luis Humberto Rodriguez, 30, plead guilty in January 2021 to one count of production of child pornography and one count of transportation of child pornography. He was sentenced Wednesday by U.S. District Judge Brantley Starr to 30 years in prison on the production count plus 20 years in prison on the transportation count to run consecutively, for a total of 50 years behind bars.
In plea papers, Mr. Rodriguez admitted that he filmed himself sexually abusing a seven-year-old Jane Doe on multiple occasions, then shared the images with others over the social media application Kik.
At Wednesday’s sentencing hearing, an agent testified that the defendant also admitted to sexual contact with four additional victims – including a one-year-old toddler and a special needs child.
Per court documents, the investigation into Mr. Rodriguez began when agents in Olympia, Washington seized an iPad from a registered sex offender and discovered conversations between the offender and Mr. Rodriguez. In it, the defendant discussed a child porn “trade” and offered up his email address.
Law enforcement tracked Mr. Rodriguez to Dallas and searched his home, where they seized a smartphone containing videos of the defendant sexually abusing a child and a collection of child pornography that Mr. Rodriguez estimated exceeded 20 gigabytes.
In plea papers, Mr. Rodriguez admitted that he possessed more than 600 videos and images of child pornography, including “sadistic” imagery.
“The sexual exploitation of children is unconscionable. It is the mission of HSI Dallas to secure the safety of all children. Now that justice has prevailed, our hope is that the victims, their families, and the community will now begin their journey of recovery with this predator behind bars,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr.
Homeland Security Investigations’ Dallas and Olympia Field Offices conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case.
Supplier in Juvenile Fentanyl Overdoses Case Charged with Drug ConspiracyRead the Press Release
A top source of supply in the Carrollton fentanyl overdoses case has been charged with a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jason Xavier Villanueva, 22, was charged via criminal complaint with conspiracy to distribute a Schedule II controlled substance. He was arrested on Tuesday and made his initial appearance in federal court Wednesday afternoon.
According to the complaint, Mr. Villanueva allegedly worked through a juvenile dealer to supply fentanyl-laced pills to Luis Eduardo Navarrete, 21, and Magaly Mejia Cano, 29, the pair accused of peddling pills to teenage dealers in Carrollton. Mr. Villanueva also allegedly transacted with some of the teenage dealers directly.
Mr. Navarrete and Ms. Cano were charged via criminal complaint with conspiracy to distribute controlled substances last week and remain detained pending trial.
“Fentanyl is killing our kids. We are angry about it. We are heartbroken about it. And we are determined to do all we can about it,” U.S. Attorney Leigha Simonton said at a press conference Wednesday afternoon. “Make no mistake: Unless it comes from a licensed medical provider, that pill your child thinks is Percocet, or OxyContin, or Xanax, or Adderall, may actually be fentanyl. And if it is fentanyl, chances are, even a small part of one pill may be deadly.”
“Fentanyl does not discriminate by age, race, gender, or socio-economic status. Its addictive properties cannot be compared to anything else on the streets today. The overdose and poisoning margin of error between life or death is microscopic,” DEA Dallas Special Agent in Charge Eduardo Chávez said at the press conference. “We all have a role in this fight. Because it is a fight. It is a fight for our families, it is a fight to curb substance abuse, and it is a fight to hold criminal drug networks accountable for their actions.”
“We take this seriously in our community; we will leave no stone unturned to ensure the safety of our children,” said Carrollton Police Chief Roberto Arredondo.
All three defendants allegedly trafficked pills, mostly blue tablets inscribed “M-30,” to juvenile dealers in Carrollton, who went on to sell to friends and classmates.
The drugs led to as many as ten overdoses, three of them fatal, of nine teenagers in the Carrollton Farmer’s Branch Independent School District. The victims, all middle and high school students, ranged in age from 13 to 17 and usually referred to the pills with slang terms like “percs,” “yerks,” “blues,” or “M-30s.”
According to the complaint, three of the surviving overdose victims identified two juvenile dealers as their sources for pills. Evidence showed that both juvenile dealers corresponded with Mr. Villanueva over social media about drug purchases, and one even admitted to law enforcement that Villanueva was his supplier.
In an interview with law enforcement following his arrest, Mr. Navarrete allegedly revealed that he, too, obtained the drugs he allegedly dealt to minors from Mr. Villanueva through one of the juvenile dealers.
Mr. Villanueva allegedly posted photographs of “M30” pills, money, and firearms on social media. He used the message function on a popular social media app to negotiate drug transactions with juvenile dealers and described the quality of the pills he was selling to his customers.
Following Navarrete and Cano’s arrests last week, Mr. Villanueva posted on social media, “Only thing that’s gonna stop us is feds.”A criminal complaint is merely an allegation of criminal conduct, not evidence. Like Mr. Navarrete and Ms. Cano, Mr. Villanueva is presumed innocent until proven guilty.
If convicted, the defendants face up to 20 years each in federal prison.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School. Assistant U.S. Attorneys Phelesa Guy and Rick Calvert are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.Former Founder and CEO of Supply-Chain Logistics Company Charged with $20 Million Wire FraudRead the Press Release
The founder of Slync, a supply-chain management software startup, has been charged for misappropriating $20 million from the company, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Kirchner, 35, was charged via criminal complaint with wire fraud and arrested at his home in Westlake early Tuesday morning. He made his initial appearance before U.S. Magistrate Judge Hal R. Ray, Jr. later in the day.
“This defendant flaunted his apparent wealth while allegedly diverting millions from company coffers into his private bank account,” said U.S. Attorney Leigha Simonton. “Slync investors and employees are understandably outraged, and we sympathize. We look forward to holding Mr. Kirchner accountable in federal court.”
“As the criminal complaint alleges, Mr. Kirchner used his position as a CEO to defraud investors and the company he worked for by diverting funds for his personal benefit. He did this to fund a lavish lifestyle at the expense of those that trusted him to act responsibly and ethically,” said FBI Dallas Acting Special Agent in Charge James J. Dwyer. “The FBI will remain persistent in our efforts to hold individuals accountable that commit such brazen acts of corporate greed.”
According to the complaint, Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was suspended by the Board of Directors due to allegations of misconduct – allegedly wired $20 million from Slync’s bank account to his personal checking account.
In text messages, Mr. Kirchner told an employee that he was transferring money received from an investor into “an investment account” and a “chase” account. He then instructed the employee to approve the wires. But Mr. Kirchner did not transfer money into an “investment account” or a “chase” account. He instead transferred $20 million of Slync funds into his personal account.
Meanwhile, in emails, Mr. Kirchner told private bankers that the $20 million represented “a distribution from my company.” Slync’s Board of Directors never authorized such a distribution.
Mr. Kirchner allegedly used the $20 million – which amounted to roughly 40 percent of $50 million raised from private equity investors and venture capital groups during the company’s Series B investment round – to fund a lavish lifestyle, including a $16 million private Gulfstream jet and a $495,000 luxury suite at a local sports stadium.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Kirchner is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua Detzky, John de la Garza, and Blake Ellison are prosecuting the case.
Fentanyl Pill Press Operator Sentenced to 30 Years in Federal PrisonRead the Press Release
A Saginaw man running a fentanyl pill-pressing operation was sentenced Friday to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Adrian Warren, 33, aka “Peanut,” pleaded guilty in October 2022 to possession with intent to distribute controlled substances. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
Codefendant Joanna Martinez-Otero, 28, pleaded guilty in October 2022 to maintaining a drug involved premises and was sentenced on Tuesday to 15 years in federal prison; Jamie Rodriguez, 39, pleaded guilty in September 2022 to possession with intent to distribute controlled substances and was sentenced in January to nearly 11 years in federal prison.
The Drug Enforcement Administration took possession of the pill press.
“One of the scariest things about fentanyl is that drug traffickers press it into pills that look identical to real pills containing other medications, meaning many users are buying and ingesting these counterfeit pills off the street without knowing they contain a drug 100 times more potent than morphine,” said U. S. Attorney Leigha Simonton. “Fentanyl is tearing through our communities at an alarming rate, poisoning our friends, our family members, and worst of all, our children. We will not rest until we stop this killer drug from circulating in our communities. We urge everyone to immediately educate themselves and their loved ones about the dangers of ingesting any type of pill that comes off the street because it could contain this deadly substance.”
“Fentanyl is the single deadliest drug threat our nation has ever encountered,” said Eduardo A. Chávez, Special Agent in Charge of DEA operations in Dallas-Fort Worth. “The sentence handed down to Mr. Warren, Ms. Martinez-Otero, and Mr. Rodriguez is a clear message that the production and trafficking of fentanyl will not be tolerated in our neighborhoods. DEA and all of our law enforcement partners will continue to work together and keep this poison off our streets.”
According to court documents, the investigation began when DEA agents learned that Mr. Warren and others were likely operating a pill press machine to make counterfeit pills in Fort Worth.
Over the course of the investigation, they learned that Mr. Warren had purchased more than two dozen kilograms of excipient – an inactive binder used in the production of pills – in various colors, including blue (often used in the illicit production of counterfeit oxycodone pills), white (often used in the illicit production of counterfeit Xanax pills), and yellow. In the months that followed, his associates, Ms. Martinez-Otero and Mr. Rodriguez, also purchased several kilograms of excipient in a range of colors.
On Aug. 3, 2022, agents met with a young woman seen exiting Mr. Warren’s residence. She described herself as a recovering drug addict and consented to a cursory search of her phone, where agents found coded text messages between her and Mr. Warren discussing narcotics. They later watched as she entered a fast food restaurant, where she met with Ms. Martinez-Otero and tipped off the conspirators about the DEA’s investigation.
That evening, agents followed Mr. Rodriguez to a storage facility, where he met Mr. Warren and Ms. Martinez-Otero. After Mr. Rodriguez departed the facility, a marked patrol unit pulled him over and arrested him. He admitted that Mr. Warren had asked him to deliver a backpack of approximately 2,000 counterfeit pills to the storage unit and confirmed that Mr. Warren had a tableting machine, or pill press.
That night, agents also attempted to follow Mr. Warren from a residence in Saginaw, but he began driving erratically and at a high rate of speed, making surveillance challenging. Shortly thereafter, agents spotted smoke emanating from a nearby field and found Mr. Warren’s truck had skidded off the street, rolled over, and come to rest on the cab; Mr. Warren had apparently escaped the wreckage and fled on foot. Law enforcement arrested Mr. Warren a short time later.
Amid the accident debris, agents found a used pill press machine covered in blue fentanyl residue. Agents later discovered a counterfeit blue M-30 pill containing fentanyl sandwiched between the punch dies of the pill press machine:
Agents then followed Ms. Martinez-Otero to the residence in Saginaw, where they arrested her and seized more than 100 counterfeit blue M-30 pills that field-tested positive for fentanyl. They also recovered multiple kilograms of excipient and a short barrel rifle.
In the storage facility, they found thousands of additional pills and other controlled substances, including 45 grams worth of counterfeit blue M-30 pills laced with fentanyl, 100 grams counterfeit hydrocodone pills laced with fentanyl, 174 grams of counterfeit Xanax bars laced with fentanyl, 576 grams of counterfeit MDMA (ecstasy) pills laced with fentanyl, 1248 grams of methamphetamine, a bag of blue excipient laced with heroin, and a 9mm pistol previously reported as stolen.
The Drug Enforcement Administration’s Dallas Field Division – Fort Worth District Office, US Postal Inspections Service, and the Tarrant County Sheriff’s Office conducted the investigation, and the Saginaw Police Department assisted in Mr. Warren’s apprehension. U.S. Attorney Levi Thomas prosecuted the case.
Cartel-Linked Brothers Sentenced to 70 Years for Meth TraffickingRead the Press Release
Two brothers with ties to a notorious Mexican cartel have been sentenced to a combined 70 years in federal prison for methamphetamine and money laundering offenses, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Pedro Hernandez Zarate, a 45 year-old Mexican national in the U.S. illegally, and his brother Ricardo Hernandez Zarate, a 33-year-old legal resident, were charged via criminal complaint in March 2021. Ricardo pleaded guilty in February 2022 to conspiracy to possess with intent to distribute methamphetamine and money laundering, and was sentenced in November 2022 to 40 years in federal prison (40 years on the drug charges and 20 years on the money laundering charges, to run concurrently). Pedro pleaded guilty in November 2021 to conspiracy to possess with intent to distribute methamphetamine and was sentenced Thursday to 30 years in federal prison.
"The FBI in collaboration with our law enforcement partners was able to successfully disrupt the illegal activities of individuals affiliated with Cartel de Jalisco Nuevo Generación (CJNG). This removal of large amounts of methamphetamine from our streets makes our communities safer from deadly narcotics," said FBI Dallas Acting Special Agent in Charge James J. Dwyer. "We will continue to work collaboratively to prosecute and dismantle the individuals and organizations that traffic and distribute narcotics into our communities."
According to court testimony, Pedro helped coordinate the transfer of approximately 112 liquid gallons of methamphetamine – a quantity with a street value of more than $9.9 million dollars -- to codefendants who planned to transport it from Texas to Oklahoma. The liquid meth – which arrived in Dallas in the diesel tank of a tractor trailer before being transferred into a holding tank and then given over to Pedro’s co-defendants – was seized by law enforcement in Gainesville, Texas.
Agents linked the meth shipment to the Cartel de Jalisco Nuevo Generación (CJNG) Transnational Criminal Organization, one of the two largest and most dangerous drug cartels in Mexico.
Meanwhile, Ricardo acted as a Dallas-area cell head, sourcing his methamphetamine from two suppliers in Mexico and selling kilogram quantities of meth, which he called “shaved ice,” to customers. He also instructed people to deliver methamphetamine in other parts of Texas.
Co-defendant Elmer Gardea Tello was previously sentenced to a term of 55 months confinement for his involvement in drug trafficking.
Eight additional defendants – including Benito Diaz Hernandez, Marcos Garcia Reyes, Rafael Diaz, Jose Alberto Plascencia Torres, Heleodoro Rosales Ramirez, Salvador Antonio Martinez, Walter Daniel Chapa Marty, and Uriel Marin Gaona – have entered guilty pleas in the case and await sentencing.
The investigation was led by the Federal Bureau of Investigation’s Dallas Field Office, with special assistance provided by the Texas Department of Public Safety, the Gainesville Police Department, Internal Revenue Service - Criminal Investigation, the Dallas Police Department, the Fort Worth Police Department, the Williamson County, Texas Sheriff’s Department, the Hawkins County Sheriff’s Department in Tennessee, the FBI’s Knoxville Field Office (Tennessee Resident Agency Office), and the Drug Enforcement Administration’s Dallas Strike Force 1. Assistant U.S. Attorneys George Leal and John Kull are prosecuting the case.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at https://www.justice.gov/ocdetf.
Cocaine, Meth Trafficker Who Stashed $1.5 Million in Trap House Sentenced to 20 Years in Federal PrisonRead the Press Release
A drug trafficker who had more than $1.5 million stashed in his residence when agents raided his home was sentenced Wednesday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Hector Manuel Castro-Quirino, 49, pleaded guilty in September 2022 to conspiracy to distribute controlled substances and was sentenced this week by U.S. District Judge Barbara M.G. Lynn, who also ordered him to forfeit the $1,595,185 in U.S. currency seized from his home.
According to court documents, in June 2021, a confidential informant tipped off law enforcement about a drug house on South Acres Drive in Dallas. Over the next few weeks, agents and officers made a series of undercover purchases at the home.
On July 13, 2021, a SWAT team executed a search warrant. Officers initially confronted Mr. Castro in his kitchen, but he then fled to the attic before finally surrendering.
During a search of his master bedroom, law enforcement located five gallon sized bags containing bulk quantities of methamphetamine (594 grams) and cocaine (1,447.8 grams), along with drug ledgers containing customer and payment information and 14 firearms, several of them loaded. They also recovered copious amounts of cash stashed inside tube socks, shoe boxes, a trash bag, and a banker box. It took them several hours to count.
In plea papers, Mr. Castro-Quirino admitted that he regularly sold methamphetamine and cocaine, noting that he received roughly a kilogram of cocaine each week and a kilogram of methamphetamine each month. He said his common law wife, Vanesa Cervantes, 39, kept his books.
Ms. Cervantes pleaded guilty in September 2022 to misprision (concealment) of a felony and was sentenced in Wednesday to 21 months in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, the Dallas Police Department, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
Woman Sentenced to 6+ Years in Prison for Embezzling $800,000 from IT CompanyRead the Press Release
An Irving woman was sentenced Tuesday to more than six years in federal prison for embezzling more than $800,000 from her employer, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
She-Daria Latisha Owens-Sharp, 42, pleaded guilty in April 2022 to one count of wire fraud. She was sentenced Tuesday to 77 months in prison by U.S. District Judge Sam A. Lindsay, who ordered her to pay $1.1 million in restitution – the amount she embezzled from the company plus the amount of extra payroll taxes the company incurred as a result of her fraud.
According to court documents, Ms. Owens-Sharp, who served as operations manager for an IT staffing service company from April 2012 to March 2019, admitted that she requested paper paychecks for employees in addition to those employees’ direct deposit checks. She then altered the paper checks, removing the employees’ names and replacing them with her own, and deposited the checks into her own bank account.
She further admitted that she informed the company’s payroll vendor that her salary had been increased from $17 to $25 per hour (a nearly 50 percent increase), causing the company to increase her direct deposit, without authorization. She concealed her lie from the company by making false entries in their records reflecting payroll and expenses for employees that had left the company.
Ms. Owens-Sharp admitted that she deposited approximately 376 altered checks totaling more than $818,000. The company paid an additional $224,000 in payroll taxes on the fraudulently obtained checks, resulting in a loss to the company of more than $1 million.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Douglas Brasher prosecuted the case.
Man Charged with Stealing 13 Firearms from Pawn ShopRead the Press Release
A Plano man has been charged with stealing more than a dozen guns from a local pawn shop, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christian Alfredo Benitez-Ramirez, 28, was charged via criminal complaint with theft from a federal firearms licensee and arrested at his residence on Monday. He made his initial appearance before U.S. Magistrate Judge Irma Carrillo Ramirez that afternoon.
According to the complaint, on Jan. 30, Mr. Benitez-Ramirez allegedly entered a Cash America Pawn in Duncanville, walked to the rear of the store, reached over the counter, and attempted to open the sliding door of a firearm display cabinet.
When the door didn’t open, the defendant hoisted himself over the counter and attempted to gather an armful of firearms from a rack on the wall. He saw that the firearms were attached to the wall via a cable, whipped out a pocketknife, and attempted to cut the cords.
When that didn’t work, Mr. Benitez-Ramirez pulled the cable and attachment from the wall, gathered up an armful of firearms, and – with additional guns still attached to the cable dragging behind him – exited the store and loaded the firearms into a Honda CR-V.
Cash America employees told law enforcement that when they saw the defendant behind the counter, they asked if he worked there, and the defendant answered that he did. Not recognizing him, several employees pressed store panic buttons.
The store reported five shotguns, one pistol, and seven rifles as stolen.
A criminal complaint is merely and allegation of wrongdoing, not evidence. Like all defendants, Mr. Benitez-Ramirez is presumed innocent until proven guilty.
If convicted, he faces up to 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Carrollton Pair Tied to as Many as 10 Juvenile Overdoses Charged with Fentanyl ConspiracyRead the Press Release
Two fentanyl dealers allegedly tied to as many as 10 juvenile overdoses, three of them fatal, have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Luis Eduardo Navarrete, 21, and Magaly Mejia Cano, 29, were charged via criminal complaint with conspiracy to distribute fentanyl. They were arrested at Mr. Navarrete’s residence in Carrollton on Friday and made their initial appearances Monday afternoon.
“To deal fentanyl is to knowingly imperil lives. To deal fentanyl to minors — naive middle and high school students — is to shatter futures. These defendants’ alleged actions are simply despicable. We can never replace the three teenagers whose lives were lost, nor can we heal the psychological scars of those who survived their overdoses. But we can take action to ensure these defendants are never allowed to hand a pill to a child again,” said U.S. Attorney Leigha Simonton.
“Selling drugs alone is a serious transgression, but to sell deadly fentanyl to a juvenile is one of the most shocking and callous ways to hurt a community,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “DEA Dallas and our partners from the Carrollton Police Department will work to identify and hold accountable every individual who thinks they can profit by exposing our neighborhoods, and our children, to this deadly substance.”
“I am very appreciative of our partnerships with all federal agencies. I am proud of the Carrollton Police Department’s work in providing the necessary evidence to the DEA. We continue to work with the DEA and other federal partners to rid our great community of this poison. We take this very seriously; there is nothing more precious than our children,” said Carrollton Police Chief Roberto Arredondo.
According to the complaint, Mr. Navarrete and Ms. Cano allegedly dealt fake Percocet and Oxycontin pills laced with fentanyl, commonly known as “M30s,” to multiple juvenile drug dealers, mostly students at RL Turner High School, who in turn sold the drugs to their fellow students at R.L. Turner High School and to younger students at Dewitt Perry and Dan F. Long Middle Schools.
Nine students at those schools – ranging in age from 13 to 17 – suffered ten overdoses, three of which were fatal, between September 2022 and February 2023.
One victim, a 14-year-old girl who overdosed twice and suffered temporary paralysis, told law enforcement the pills she ingested came from juvenile dealers who obtained the drugs from Mr. Navarrete. (She also confirmed she had purchased pills directly from Mr. Navarrete in the past.)
Law enforcement conducting surveillance at Mr. Navarrete’s home observed him engage in a hand-to-hand transaction with another 16-year-old dealer on January 12, 2023. Officers followed the juvenile into a bathroom at R.L. Turner, where he holed up in a stall to snort the drugs. He later admitted that he’d obtained the pills – which he called “perc pills” – from Mr. Navarrete.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Both Mr. Navarrete and Ms. Cano are presumed innocent until proven guilty in a court of law.
If convicted, they each face up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.Fentanyl Courier Charged After Agent Seizes 6,000 PillsRead the Press Release
A fentanyl dealer who sold roughly 6,000 pills laced with fentanyl to an undercover agent has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Richard Daniel Gomez, 22, was charged on Thursday via criminal complaint with possession with intent to distribute fentanyl. He made his initial appearance before Magistrate Judge Renee Harris Toliver on Friday.
According to the complaint, an undercover DPS agent negotiated with a drug trafficker to buy 6,000 “blues” for $15,000 cash. (“Blues,” which often resemble oxycodone, are often manufactured illicitly and laced with fentanyl, an opioid 75 - 150 times more potent than oxy.)
The trafficker directed the agent to meet with his courier in a parking lot in Dallas’ Turtle Creek neighborhood. When the agent arrived, the undercover met with Mr. Gomez inside a pickup truck. Mr. Gomez allegedly handed over a vacuum-sealed bag containing a large number of blue pills and was promptly arrested.
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, Mr. Gomez faces 10 years to life in federal prison.
The Texas Department of Public Safety and the Dallas Police Department are conducting the investigation with the Drug Enforcement Administration’s Dallas Field Office. Assistant U.S. Attorneys Rick Calvert and George Leal are prosecuting the case.
MS-13 Gang Member Sentenced to 5+ Years in Heroin Conspiracy with GirlfriendRead the Press Release
An MS-13 gang member was sentenced today to more than five years in federal prison for a drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Williams Josue Fuentes-Argueta, a 30-year-old El Salvadorian in the U.S. illegally, was indicted in November 2021 and pleaded guilty in April 2022 to conspiracy to possess with intent to distribute heroin. He was sentenced Wednesday to 64 months in federal prison by U.S. District Judge Brantley Starr, who also ordered him to forfeit two handguns.
At his sentencing hearing, Judge Starr ruled that the defendant belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.”
In plea papers, Mr. Fuentes-Argueta admitted he and his co-conspirator, girlfriend Angie Marlyn Valencia, dealt heroin out of an apartment on Royal Lane in Dallas.
On Sept. 16, 2021, while Ms. Valencia acted as lookout, Mr. Fuentes-Argueta sold more than 70 grams of heroin to an undercover Texas DPS officer for $2,7000 cash. About two weeks later, the pair teamed up again to sell another 76 grams of heroin to two undercover officers.
On Oct. 12, officers searched the defendants’ residence and found 20 grams of heroin and two handguns, a 9mm M&P and a .380mm Keltec.
Ms. Valencia, who also plead guilty to engaging in the conspiracy, was sentenced in August 2022 to 65 months in federal prison. Judge Starr found that Ms. Valencia also met the criteria to be considered an MS-13 gang member.
The Texas Department of Public Safety, the Carrolton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney George Leal is prosecuting the case.
Head of Fort Worth Drug Trafficking Organization ChargedRead the Press Release
The head of a Fort Worth drug trafficking operation and his associate have been federal charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Leeroy Marquee Jones, aka Aladdin, 32, and Christopher Antwuan George, 21, were charged via criminal complaint with conspiracy to possess with intent to distribute controlled substances, a federal crime.
During their arrest, Demarcus Taylor, a federal fugitive previously charged with conspiracy to possess with intent to distribute controlled substances, was also arrested.
According to the complaint, Mr. Jones was identified as the head of a drug trafficking organization that dealt fentanyl, cocaine, heroin, methamphetamine, and marijuana in Fort Worth’s “stop six” neighborhood. He was allegedly a multi-kilogram distributor.
On Jan. 19, enforcement executed search warrants at three stash houses allegedly run by Mr. Jones and seized 500 grams of suspected fentanyl, 400 grams of suspected methamphetamine, 16 firearms, and a large amount of U.S. currency.
- DEA Fort Worth Special Agent in Charge Eduardo A. Chávez“Seeking justice and a safe community is a team effort. Through our partnership with the Hood County Sheriff’s Office and the Fort Worth Police Department, guns and drugs, including thousands of potential deadly doses of fentanyl, are off our streets. Violent criminal drug networks poisoning our neighborhoods will be held accountable. You cannot hide.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face up 10 years to life in federal prison.
The Drug Enforcement Administration’s Fort Worth District Office, the Hood County Sherriff’s Office, and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Drug Trafficker Pleads Guilty to Selling Fatal FentanylRead the Press Release
The drug dealer who sold the fentanyl that killed an Abilene man pleaded guilty this week to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Elijah James Perez, 21, was indicted in September 2022. He pleaded guilty Tuesday to distribution of fentanyl resulting in death.
- U.S. Attorney Leigha Simonton“Fentanyl has shattered far too many lives. And far too often, users don’t understand that the pills they’re ingesting are laced with this deadly drug. Let this case be a warning to drug dealers throughout Texas: If you sell the fentanyl that causes an overdose death, we will hold you accountable to the fullest extent of the law.”
According to court documents, Mr. Perez admits that he sold fentanyl to a victim, identified in court documents as J.W., on Feb. 11, 2022.
The following day, J.W. was found nonresponsive on his bed. After 40 minutes of attempted resuscitation, he was pronounced dead on scene.
Witnesses told law enforcement they believed J.W. had ingested Percocet, but an autopsy found that J.W. died from the toxic effects of fentanyl.
According to plea papers, Mr. Perez admits that approximately three days before J.W.’s death, Mr. Perez offered to sell him “5 percs.” Three days later, Mr. Perez met with J.W. outside his home around 10 p.m. to make the sale. The pills were laced with fentanyl.
Six minutes later, J.W. texted his girlfriend that he’d received some “percs” that were “hella strong.” Hours later, he was dead of an overdose.
- DEA Dallas Field Division Special Agent in Charge, Eduardo A. Chávez“The consequences of trafficking drugs is real. The deadly effects of fentanyl have claimed the lives of two people: one who we will never get back and another who will spend years in prison as a result. Families are forever changed. The DEA will continue to investigate these crimes with a relentless pursuit of justice and accountability for the criminal organizations that distribute these deadly drugs.”
If the federal district judge accepts his plea of guilty, Mr. Perez faces a mandatory minimum sentence that includes 20 years in federal prison. A sentencing date has not yet been set.
The Drug Enforcement Administration’s Dallas Field Office and the Abilene Police Department conducted the investigation. Assistant U.S. Attorney Matt Tusing is prosecuting the case.
Amarillo Man Sentenced for Threating Prominent New York RabbisRead the Press Release
An Amarillo man was sentenced Thursday to two years in federal prison for threatening to execute three prominent Jewish rabbis, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Stephen Brown was charged via criminal complaint on Dec. 6, 2021 and indicted later that month. He plead guilty in September 2022 to making interstate threatening communications and was sentenced today by U.S. District Judge Matthew J. Kacsmaryk.
- U.S. Attorney Leigha Simonton“Mr. Brown expressed vile anti-Semitism and threatened to commit despicable, violent acts against specific Jewish authorities. We will never stop protecting the Jewish community and other religious groups from such disturbing, hateful conduct. We hope the sentence handed down today serves as reassurance of that to the victims, their loved ones, and the greater Jewish community”
- FBI Dallas Acting Special Agent in Charge James J. Dwyer“Making threatening statements intended to instill fear and cause potential physical harm is a serious criminal action with consequences. Our hope is that today’s sentence brings some relief to the affected private citizens, law enforcement and members of the Jewish community at large. This behavior will not be tolerated, and we will continue working with our law enforcement partners to pursue individuals who espouse violent, antisemitic beliefs and pose a threat to public safety, holding them accountable to the fullest extent of the law.”
According to plea papers, Mr. Brown admitted to placing threatening calls to Chabad Lubavitch, a Jewish organization that has provided spiritual guidance and assistance to Jewish people since before the Holocaust. Chabad is headquartered in New York City and maintains more than 3,500 institutions worldwide.
In those calls, the defendant sated his name was “Madrikh Obadiah” and threatened to “execute” several rabbinical leaders, identified in court documents as L.S., Y.K., and M.K. Over the course of multiple calls, he vowed he would tear their eyes and tongues out, blow their heads of, and kill every rabbi he could find.
According to court documents, he also sent messages to the organization via their website, calling for death to all Jews and linking to his YouTube channel, which also contained threatening content.
The Federal Bureau of Investigation’s Dallas Field Office, Amarillo Resident Agency and the Randall County Sheriff’s Office conducted the investigation in partnership with the FBI’s New York Field Office and the New York Police Department. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
Unlicensed Dealer Who Straw Purchased, Sold Guns Despite ATF Cease-and-Desist Pleads GuiltyRead the Press Release
A Lancaster man who sold more than 50 guns without a license pleaded guilty yesterday to a federal firearm crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Armani Morris, 22, was arrested following an undercover gun buy in July 2022 and indicted in August. He pleaded guilty Tuesday to engaging in the business of selling firearms without a license before U.S. Magistrate Judge Rebecca Rutherford.
“Federal law requires firearms dealers to be licensed – and, crucially, to run background checks on their buyers. Subverting these laws allows guns to fall into the wrong hands, endangering the public,” said U.S. Attorney Leigha Simonton. “Despite being warned that his conduct was unlawful, this defendant brazenly continued selling to anyone who would buy. Let there be no mistake: The Justice Department will aggressively pursue anyone who flouts federal firearm laws.”
“Today was a victory for law enforcement and the citizens of North Texas. Mr. Morris knew the law. Mr. Morris knew the procedures to become a licensed firearms dealer. Mr. Morris chose to ignore them all and continue to deal firearms illegally. I hope this serves as an example for all those who choose to sell firearms around the laws. ATF and its partners will investigate you and you will be prosecuted,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to plea papers, Mr. Morris admits that between 2021 and 2022, he sold at least 52 firearms despite the fact that he did not have a license to engage in the business of dealing in firearms.
(Federal law requires that people engaged in the business of dealing in firearms – defined as repeatedly devoting time and attention to purchasing and reselling guns for monetary gain – obtain Federal Firearms Licenses, or FFLs, and run background checks on potential buyers.)
On Dec. 16, 2021, ATF agents served Mr. Morris with an administrative cease-and-desist letter that explained firearms licensing laws so that Morris would know that his conduct was illegal. However, Morris continued to purchase and sell firearms.
On April 7, 2022, ATF Special Agents met with Morris at his residence, where he acknowledged that he read the cease-and-desist letter but asserted he did not want to sign it. When agents confronted Morris with evidence of 54 firearm purchases, Morris could fully account for only two of the guns. Morris also admitted to agents that he had spent all his income on firearms while he sought to sell them for a profit. However, Morris admitted that dealing in firearms was turning out to be a bad investment.
Despite continued warnings from law enforcement, Morris continued to deal firearms without a license. ATF then proceeded with an undercover investigation. On four separate occasions in the summer of 2022, undercover agents purchased from Morris a total of seven firearms, including two AR-type pistols, a Smith & Wesson 9mm pistol, and a Glock 9mm pistol and with a Glock switch that made the Glock fire fully automatic as a machinegun.
Mr. Morris now faces up to five years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Walt Junker is prosecuting the case.
Serial Bank Robber Sentenced to 11 ½ Years in Federal PrisonRead the Press Release
A Florida man tied to at least five bank robberies in North Texas was sentenced today to more than 11 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Thomas Joseph Banno, 54, pleaded guilty in August 2022 to bank robbery. He was sentenced Wednesday by U.S. District Judge Brantley Starr to 140 months’ imprisonment.
According to plea papers, Mr. Banno admitted he was involved in at least five bank robberies and attempted bank robberies in the DFW metroplex between June and August 2021 – while he was on probation for a bank robbery in Florida.
Each time, Mr. Banno donned a mask, entered the bank, and demanded “all the $50s and $100s” from the teller. On at least one occasion, he gestured as if he had a gun concealed under his shirt; on another, he told the teller he had a gun; and on two others, he brandished what appeared to be a silver pistol.
After each robbery, Mr. Banno fled the scene in a Dodge Caravan driven by his codefendant, Sade Miranda Salters, 36, who later pleaded guilty to bank robbery; aiding and abetting.
Both Mr. Banno and Ms. Salters admitted in plea papers that they knowingly traveled from Florida to Texas with the intent to commit the robberies.
Shortly after two of the robberies, Ms. Salters posted a Facebook Live video of herself flashing a stack of banded cash. The video later pans to Mr. Banno asleep in the backseat of the van.
Ms. Salters is currently awaiting sentencing.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Andrew Briggs is prosecuting the case.
Gulf Cartel Member Sentenced to 15+ Years for Cocaine TraffickingRead the Press Release
A drug trafficking cartel member was sentenced Tuesday to more than 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ruben Salazar Vasquez, 51, pleaded guilty in August 2022 to possession with intent to distribute cocaine. He was sentenced Tuesday to 188 months in federal prison by U.S. District Judge Ada Brown, who ordered him to forfeit $28,481 along with four firearms.
At the sentencing hearing, prosecutors said, based on information provided by the DEA, Mr. Vasquez was a member of the Gulf Cartel and distributed cocaine to Tennessee and Illinois as well as Texas.
In plea papers, Mr. Vasquez admitted that on April 22, 2021, he delivered drugs to the residence of a known drug dealer in Grand Prairie and then fled the scene.
Shortly thereafter, law enforcement found 3,862 grams of cocaine in a vehicle that departed the home and 1,937 grams of cocaine stashed inside a grill on the premises.
The dealer, Jorge Adalberto Cavazos, and his associate, Darwin Lamont Conwright, were also charged. Both pleaded guilty to possession with intent to distribute cocaine. Mr. Cavazos was sentenced to 108 months in prison and Mr. Conwright is slated to be sentenced later this month.
The investigation was led by the Drug Enforcement Administration’s Dallas Division along with the Texas Department of Public Safety, the Grand Prairie Police Department, the Garland Police Department, IRS – Criminal Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney George Leal is prosecuting the case.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Former CEO of Texas Beverage Company Sentenced to 10 Years in Prison for Fraudulent Scheme Targeting Elderly InvestorsRead the Press Release
The former CEO of a Texas beverage company was sentenced today to ten years in prison for his role in a high-yield investment scheme in which he and his co-conspirators fraudulently sold more than $12 million of stock in Dallas-based EarthWater Limited to elderly and other vulnerable victims. Four other individuals have also been sentenced to prison for their roles in the scheme.
According to court documents, Cengiz Jan “CJ” Comu, 62, of Dallas, formerly EarthWater’s Chief Executive Officer; John Mervyn Price, 67, of Dallas, formerly EarthWater’s Chief Operating Officer; Richard Laurence Kadish, 61, of Del Ray Beach, Florida; Richard Lawrence Green, 71, of Deerfield Beach, Florida; and Suzanne Aileen Gagnier, 68, of Huntington Beach, California, and others conspired to defraud victims and made false representations about how EarthWater would use investors’ money. Comu, Price, Kadish, Green, Gagnier, and their co-conspirators falsely represented that more than 90% of money raised from investors would be re-invested in the company, when in fact a substantial majority of the funds were used for the conspirators’ personal benefit.
Comu pleaded guilty to 23 counts including conspiracy to commit mail fraud and wire fraud, mail fraud, wire fraud, and money laundering. Price pleaded guilty to 22 counts including conspiracy to commit mail fraud and wire fraud, mail fraud, wire fraud, and money laundering, and was sentenced to six years in prison. Kadish and Green each pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of mail fraud and were each sentenced to six years in prison. Gagnier pleaded guilty to one count of conspiracy to commit mail and wire fraud and was sentenced to two years in prison.
Six other defendants charged in the scheme have also pleaded guilty and are awaiting sentencing: Harley E. “Buddy” Barnes, III, 64, formerly of Plano, Texas, formerly EarthWater’s Chief Financial Officer; Russell Filippo, 72, of Oklahoma City; Daniel Thomas Broyles Sr., 65, formerly of Malibu, California; Joe Edward Duchinsky, 67, of Norwalk, California; Joseph Lucien Duplain, 81, of Murrieta, California; and Donald Andrew Rothman, 75, of Coral Springs, Florida. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Leigha Simonton for the Northern District of Texas; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Christopher Fenton and Theodore M. Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary F. Walters and Beverly Chapman of the Northern District of Texas are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available.
Dallas Sex Trafficker Sentenced to 25 YearsRead the Press Release
A Dallas trafficker was sentenced Wednesday to 25 years in federal prison for spending nearly two decades running a brutal sex trafficking ring, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anthony Johnson, 45, pleaded guilty to conspiracy to commit sex trafficking through force, fraud, and coercion, and sex trafficking on May 10, narrowly avoiding his trial, which was scheduled to begin the same day. He was sentenced Wednesday by U.S. District Judge Ada Brown, who also ordered a lifetime of supervised release following the completion of his sentence.
“Human trafficking is happening under our noses – and the heartbreaking 911 call in this case illustrates just how brutal these situations can be for victims. We hope that during Mr. Johnson’s time behind bars, his victims can begin to heal from the pain – both mental and physical – he inflicted on them,” said U.S. Attorney Leigha Simonton. “Please, if you even suspect someone you know is being trafficked, reach out to the National Human Trafficking Hotline. Your call could save a life.”
“This defendant coerced, manipulated and brutalized numerous human trafficking victims, for financial gain and self-gratification,” said Lester R. Hayes Jr., Special Agent in Charge of HSI Dallas. “While a lengthy prison sentence can never erase the physical and psychological abuse his victims endured, it does remove the reason for their fear, allowing the healing process to begin. HSI will never relent in pursuing those who commit these inhumane crimes.”
In plea papers, Mr. Johnson, aka “Macc Bucc,” admitted he forced numerous women to engage in commercial sex acts and turn the proceeds over to him. He set “quotas,” compelled the women to work for hours on end, and brutally beat them with an extension cord when they came up short, “disrespected” him, or did not follow his rules. He also required the women to steal from commercial sex customers, instructing them to rifle through customers’ pockets for cash or jewelry and check their cars for valuables.
One woman, identified in court documents as “Adult Victim 7,” endured his abuse for several years. The night he recruited AV7, Mr. Johnson directed his second-in-command, Demetrice Deckard, to take her to Harry Hines and teach her how to solicit commercial sex customers. She engaged in commercial sex with her first customer just a few days later. Throughout her time in his trafficking organization, AV7 was forced to travel cross-country to engage in commercial sex and was routinely beaten when she tried to leave the organization.
In a pretrial filing, prosecutors indicated they were prepared to introduce into evidence a 911 call placed by a different victim’s mother after her daughter called her in tears from a passerby’s phone.
“She said, ‘mamma, I wanna come home, they won’t let me come home,’ she said, ‘they got everything I got,’” the woman told the dispatcher. “‘Mamma, he got me by gunpoint, he’s got these girls following me, he beat me up real bad.’”
In another pretrial filing, prosecutors indicated that they were also prepared to introduce evidence that Mr. Johnson obtained a contraband cell phone while in jail awaiting trial and used the phone to continue running his organization. According to prosecutors, text messages obtained from the cell phone showed that Mr. Johnson continued to instruct women where to work, which hotels to use, how to steal from customers, and when they could finish work for the night. Mr. Johnson also directed women to send him videos of themselves having sex with commercial sex customers. In plea papers, Mr. Johnson admitted that he also ran his trafficking organization from behind bars from 2014 to 2019, following a conviction for aggravated assault with a deadly weapon.
Ms. Deckard pleaded guilty in April to conspiracy to engage in trafficking through force, fraud, and coercion and is set to be sentenced in April. Another co-defendant, Ashley Neice, pled guilty to conspiracy to obstruct an official proceeding and admitted to conspiring with Mr. Johnson to contact a victim in the criminal case in order to tell her not to cooperate with law enforcement.
Homeland Security Investigations’ Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, Miami Police Department, and the Miami Office of Attorney General. Assistant U.S. Attorneys Renee Hunter and Melanie Smith (fmr.) prosecuted the case with the help of appellate liaison Brian McKay.
If you believe you or someone you know is a victim of human trafficking, call local law enforcement or the 24/7 confidential National Human Trafficking Hotline at 1-888-373-7888.
San Diego Man Sentenced to Life for Fatally Stabbing BoyfriendRead the Press Release
A San Diego man who killed his boyfriend by stabbing him 93 times was sentenced today to life in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alexander Yoichi Duberek, 25, was indicted in September 2021. He pleaded guilty in July 2022 to one count of interstate domestic violence resulting in death and was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
“This defendant looked his boyfriend’s family in the eyes and described the date night he had planned for the two of them. But instead of providing a romantic evening, he carried out a sadistic, premeditated plan to take the life of a 30-year-old man and callously dispose of his body,” said U.S. Attorney Leigha Simonton. “I cannot imagine the horror for this victim and his family. We are proud to bring this killer to justice.”
According to plea papers, Mr. Duberek admitted that on Oct. 31, 2020, he traveled from his home in San Diego to his boyfriend’s home in Plainview, Texas, where he committed the fatal stabbing on the side of a rural farm road.
Mr. Duberek admitted that after arriving at the Lubbock airport that evening, he took a cab to a Sam’s Club parking lot, where he purchased a Toyota Camry for $3,000 cash. He then drove to a Walmart, where he purchased a knife, a hatchet, a gas can, a collapsible shovel, a head lamp, a change of clothing, boots, personal hygiene items, and a first aid kit.
At Thursday’s sentencing hearing, prosecutors said that when Mr. Duberek arrived at his boyfriend’s house, he told his boyfriend’s family that he planned to take him out to eat and then to a local hotel room to spend the night.
Instead, he killed the 30-year-old and dumped the body.
Following the murder, Mr. Duberek fled to Houston, where he sold the vehicle used in the murder to an individual outside an auto auction. Investigators later searched the vehicle and found blood in the back seat that matched the victim.
The defendant remained at large for roughly five months before turning himself in to San Diego law enforcement on March 18, 2021. While being booked into jail, he was asked about a tattoo of his boyfriend’s first name on his ring finger; he answered that it was the name of the person he had killed.
“After viciously attacking him, the defendant left this wonderful human life, who he reportedly loved and wanted to marry, on the side of the road, like yesterday’s trash, like his life didn’t matter, to bleed to death,” the victim’s aunt said at the sentencing. “Why would he extinguish a light that shone so brightly for so many? Why didn’t he just stay in California, move on with his life?”
The Hale County Sheriff’s Office, the Texas Rangers, and the Federal Bureau of Investigation’s Dallas and San Diego Field Offices conducted the investigation with the assistance of the U.S. Secret Service’s Dallas Field Office and the Texas Highway Patrol’s Houston Division. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Alleged Glock Switch Dealer ChargedRead the Press Release
A Dallas man who allegedly dealt Glock switches via Instagram has been charged with firearm crimes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jeremiah Dwyen Ashley, 22, was indicted on two counts of possession of an unregistered firearm on December 28.
“Switches transform regular pistols into weapons of war, only suitable for use by soldiers on the battlefield,” said U.S. Attorney Leigha Simonton. “We cannot and will not allow switches to proliferate on the streets of north Texas.”
“Nothing keeps me up at night more than the thought of a machinegun in the wrong hands. If not promptly investigated and arrested, Mr. Ashley would have continued to put these tools of violence on our streets. Citizens of North Texas need to know that ATF and all our law enforcement partners are doing everything we can to prevent machinegun conversion devices from being used and sold unlawfully. These are not toys or souvenirs; these are terrifying,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, after spotting an advertisement for Glock switches – devices that convert ordinary semiautomatic pistols into fully automatic machineguns – on Instagram, law enforcement reached out to the owner of the account to arrange an undercover purchase.
On May 24, an undercover officer met an unidentified male, later identified as Mr. Ashley, at a gas station in Garland and purchased three Glock switches for $1,200. When the officer asked how the devices worked, Mr. Ashley allegedly showed him how to install a switch on a pistol.
After confirming Mr. Ashley’s identity, the officer reached out to the Instagram account to arrange a second undercover purchase. In response, the officer received a screenshot of UPS tracking information. UPS security personnel told law enforcement that the package, which was addressed to another individual, was a part of a three-parcel shipment that originated from a company in Taiwan.
Law enforcement seized all three packages from a UPS distribution center on June 10. Inside the packages, they found 30 Glock switches, all surrounded by metal screws, likely included to obscure the packages’ contents. An undercover agent, posing as a package delivery person, delivered the packages to Mr. Ashley on June 14. After giving him a few moments to open the packages, law enforcement executed a search warrant on his apartment.
During the search, Mr. Ashley allegedly admitted that he knew the packages contained Glock switches and confirmed that he understood the purpose of a switch. He claimed that someone else ordered the packages but said they were intended for him. He allegedly admitted that he was known around the neighborhood for selling switches on Instagram.
Glock switches are classified as machineguns under federal law. Unlike semiautomatic firearms, machineguns – weapons that can fire more than one round, without manual reloading, by single function of the trigger – are generally unlawful for non-licensed civilians under the National Firearms Act.
An indictment is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Ashley is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison, 10 years per count.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office and the Garland Police Department conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Blake Ellison is prosecuting the case.
Amarillo Drug Dealer Sentenced to 50 YearsRead the Press Release
A violent drug dealer was sentenced today to 50 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
A jury convicted Gilbert Joseph Carrasco, 44, of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon after just seven minutes of deliberation in August 2022. He was sentenced Tuesday by U.S. District Judge Matthew J. Kacsmaryk, who noted that the defendant’s violent past – including multiple physical assaults with his fists, a screwdriver, and even a brick – warranted the sentence.
According to evidence presented at trial, undercover agents arranged to purchase methamphetamine from 25-year-old Catrina Palmer on April 28, 2020. Mr. Carrasco drove Ms. Palmer to the undercover buy. Agents located a trap in the dashboard of his truck that contained methamphetamine. Investigation later revealed that Mr. Carrasco was Ms. Palmer’s methamphetamine supplier.
In an interview, Mr. Carrasco admitted to receiving and distributing methamphetamine. He also admitted to being a convicted felon and knowingly possession a .22 bolt action rifle he said he obtained on the “streets.”
Ms. Palmer pled guilty in April 2021 to possession with intent to distribute methamphetamine and was sentenced to five years in federal prison.
The Amarillo Police Department, the Drug Enforcement Administration’s Dallas Field Division, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Matt Tusing and Joshua Frausto prosecuted the case with the help of Assistant U.S. Attorney Anna Marie Bell.
Romance Scammer Sentenced to 3+ Years in PrisonRead the Press Release
A romance scammer with ties to a Nigerian organized crime syndicate was sentenced today to more than three years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Frederick Orji, a 38-year-old naturalized U.S. citizen born in Nigeria, was charged alongside 10 co-conspirators in a large-scale operation led by the FBI in in September 2021. He pleaded guilty in June 2022 to conspiracy to commit wire fraud and was sentenced Monday to 37 months in federal prison by Chief U.S. District Judge David Godbey, who also ordered him to pay $418,030 in restitution to his victims.
According to court documents, Mr. Orji and his co-defendants preyed on elderly victims, many of whom were widowed or divorced. They assumed fake names and trolled dating sites like Match.com and Bumbledate.com, searching for targets.
Once they had ingratiated themselves with their victims, they concocted sob-stories about why they needed money – i.e., taxes to release an inheritance, essential overseas travel, crippling debt, etc. – and then siphoned money from victim’s accounts, tens of thousands of dollars at a time.
In plea papers, Mr. Orji admitted that once he and his conspirators had depleted the victims’ accounts of all the funds they were willing and able to send, often emptying their entire savings, the defendants stopped communicating with the victims.
His brother, co-defendant Emanuel Orji, pleaded guilty to conspiracy to commit wire fraud in September 2022 and is set to be sentenced on Jan. 9, 2023. Five additional defendants are awaiting trial, which is set for March 20, 2023. They are presumed innocent until proven guilty in court.
The Federal Bureau of Investigation’s Dallas Field Office, Homeland Security Investigations’ Dallas Field Office, and IRS – Criminal Investigation led the investigation with assistance from the Department of Labor Office of Inspector General, U.S. Citizenship & Immigration Services, and the U.S. Department of State’s Diplomatic Security Service (DSS). Assistant U.S. Attorneys Mary Walters and Jenna Rudoff are prosecuting the case.
The FBI estimates that more than 20,000 people lost more than $600 million in romance scams in 2020 alone. For tips on how to protect yourselves and your loved ones, visit the Federal Trade Commission’s romance scam webpage. To report a suspected romance fraud, file a report via the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Two Charged with Submitting Fake COVID-19 Testing ClaimsRead the Press Release
Two individuals were charged with submitting fraudulent COVID-19 testing claims to multiple insurance agencies, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrance Barnard, 39, and Connie Jo Clampitt, 51, the owners of several alleged fake diagnostic laboratories, were indicted on Dec. 5 on one count each of conspiracy to commit healthcare fraud, ten counts each of healthcare fraud, seven counts each of aggravated identity theft, and one count each of conspiracy to commit money laundering. The defendants were arrested Thursday and made their initial appearances Friday morning.
“The COVID-19 pandemic has presented the most challenging circumstances our healthcare providers and insurers have faced in generations. Schemes to financially exploit the system when providers and insurers are facing these monumental challenges must be dismantled, and those responsible must be held to account,” said U.S. Attorney Leigha Simonton.
According to court documents, the pair allegedly received more than $7 million for fraudulent COVID-19 testing claims from Blue Cross Blue Shield of Texas, Cigna, United Healthcare, Aetna, Humana, and Molina Health Care.
Mr. Barnard allegedly used his position as a contract lab technician at various medical clinics to surreptitiously obtain patient names, addresses, dates of birth, and insurance subscriber information.
He and Ms. Clampitt then allegedly represented to the patients’ insurers that they had COVID-19 testing performed at sophisticated diagnostic laboratories, when no such testing was performed and no such labs existed.
They also allegedly opened bank accounts for their purported labs (TC Diagnostics, ME Diagnostics, and Rhine Enterprises dba PHR Diagnostics), deposited fraudulently-obtained reimbursement checks into those accounts, and then transferred the proceeds into personal bank accounts. They allegedly used the fraudulently-obtained funds to purchase real estate and luxury vehicles.
During the course of the investigation, law enforcement seized more than $1.5 million.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Barnard and Ms. Clampitt are presumed innocent until proven guilty in a court of law.
If convicted, they face up to up to ten years in federal prison for each count of health care fraud, conspiracy to commit health care fraud, and conspiracy to commit money laundering, and up to two years in federal prison for each count of aggravated identity theft. They will also be required to forfeit any proceeds or property traceable to the commission of the offenses of which they’re convicted.
The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration, the Dallas office of the Department of Labor – Office of Inspector General, the Texas Department of Insurance Fraud Unit's Fort Worth Field Office, and the Federal Bureau of Investigation's Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case; Assistant U.S. Attorney Dimitri Rocha is helping handle the forfeiture.
Texas Man Convicted of Receiving and Possessing Images of Child Sexual AbuseRead the Press Release
A federal jury in Dallas convicted a Texas man today for receiving and possessing images of child sexual abuse.
According to court documents and evidence presented at trial, Andrew Kasnetz, 59, of Dallas, used a peer-to-peer network to download images and videos depicting the sexual abuse of prepubescent children. Law enforcement in Dallas obtained a warrant to search Kasnetz’s residence and discovered Kasnetz actively downloading child sexual abuse material when they entered the home. A search of Kasnetz’s digital devices revealed tens of thousands of images and videos of child sexual abuse material (CSAM).
Kasnetz was convicted of one count of receipt of child pornography and two counts of possession of prepubescent child pornography. He faces a mandatory minimum penalty of five years in prison. A sentencing date has not yet been set. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Leigha Simonton for the Northern District of Texas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge James J. Dwyer of the FBI Dallas Field Office made the announcement.
The FBI Dallas Field Office, Dallas Police Department, and Garland Police Department investigated the case.
Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Abe McGlothin and former Assistant U.S. Attorney Shane Read for the Northern District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.justice.gov/psc.
United States Attorney Leigha Simonton Sworn into OfficeRead the Press Release
On Saturday, December 10, 2022, Leigha Simonton took the oath of office to become the United States Attorney for the Northern District of Texas. Ms. Simonton was nominated by President Joseph R. Biden on November 14, 2022 and confirmed by the U.S. Senate on December 6, 2022.
She took the oath of office from U.S. District Judge Barbara M.G. Lynn, for whom Ms. Simonton clerked during her first year as an attorney. She succeeds Chad E. Meacham, who had served as the U.S. Attorney since October 2021.
“For nearly 18 years, I’ve had the privilege of litigating, supporting, and observing the most important cases our office has pursued, from public corruption to violent crime to counterterrorism,” said U.S. Attorney Simonton. “The Northern District of Texas is incredibly fortunate to have some of the most dedicated, innovative, and tenacious prosecutors and civil attorneys in the nation – and our law enforcement partners are equally impressive. I am honored to have been selected for this critical role, and I look forward to leading the office as we continue to pursue justice for the people of our district.”
As U.S. Attorney, Ms. Simonton is the top-ranking federal law enforcement official in the Northern District of Texas, which includes Dallas, Fort Worth, Lubbock, and Amarillo. She oversees a staff more than 200, including 100 attorneys and more than 100 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Ms. Simonton is a career federal prosecutor who has worked in the U.S. Attorney’s Office for almost 18 years. She is a 1994 graduate of L.V. Berkner High School in Richardson, Texas. In 1997, she graduated early from the University of Texas at Austin with highest honors. After briefly working in the Chicago Public Schools system, she attended Yale Law School, where she served as Managing Editor of the Yale Law Journal and received the John Fletcher Caskey Prize for best advocate in the law school’s mock trial finals.
Ms. Simonton graduated law school in 2001 and returned to the Northern District of Texas, where she served as a law clerk for U.S. District Judge Barbara M.G. Lynn and, later, for Judge Patrick E. Higginbotham on the U.S. Court of Appeals for the Fifth Circuit.
From 2003 to 2005, Ms. Simonton practiced in the Specialized Litigation and Appellate Sections at the Dallas office of Haynes & Boone, LLP, working on complex commercial litigation, white-collar, appellate, and antitrust matters.
In 2005, Ms. Simonton began her career as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Northern District of Texas, practicing in the office’s Appellate Division. As an appellate prosecutor, she primarily defended convictions and sentences against defendants’ appeals in the U.S. Court of Appeals for the Fifth Circuit, arguing more than 20 times before that court and acting as sole counsel in almost 400 criminal appeals. She also prosecuted cases at the trial-court level and provided extensive appellate advisory support to numerous trial teams throughout the district.
In 2014, Ms. Simonton won the Director’s Award from the Department of Justice’s Executive Office for U.S. Attorneys for her multi-year trial and appellate work on the Dallas City Hall corruption case involving former Mayor Pro Tem Don Hill, his wife Sheila Farrington, former City Plan & Zoning Commissioner D’Angelo Lee, and several other defendants. Most recently, she led her office in successfully overturning a three-judge panel decision in the Fifth Circuit Court of Appeals that had suppressed key evidence in a child exploitation case. After successfully petitioning for the full Court of Appeals to review the three-judge decision, the full Court disagreed with the three-judge ruling and allowed the government use of that evidence.
In addition to her substantive legal work, Ms. Simonton has served in several leadership roles within the office. Most recently, Ms. Simonton served as the Chief of the Appellate Division and, before that, Deputy Chief of that Division. As Chief, she served as the office’s lead appellate attorney and as a member of the office’s senior management team, advising the U.S. Attorney on legal, strategic, and administrative matters. She also managed a team of several Assistant U.S. Attorneys and support staff and coordinated with various Main Justice components including the Appellate Section of the Criminal Division and the Office of the U.S. Solicitor General.
As she took on her new responsibilities, U.S. Attorney Simonton thanked Mr. Meacham for his many years of public service with the U.S. Attorney’s Office and his commitment to justice over the last year as he served as the United States Attorney. Mr. Meacham looks forward to returning to the courtroom to prosecute cases.
Comerica Vault Manager Pleads Guilty to Embezzling at Least $120,000Read the Press Release
A Comerica employee pleaded guilty Wednesday to embezzling more than $120,000 from the bank, U.S. Attorney for the Northern District of Texas Chad E. Meacham announced today.
Sallie Lazzaro, aka Sallie Marie Perry, 33, plead guilty to theft by a bank employee before U.S. Magistrate Judge Jeffrey L. Cureton.
According to plea papers, Ms. Lazzaro, who began as a teller and was later promoted to vault manager, admitted she repeatedly stole cash from the FDIC-insured bank.
She purloined cash from her teller drawer, hid it in her pocket or purse, and input false information into the bank’s computer system in order to manipulate teller and vault balances.
On May 20, 2021, when Ms. Lazzaro was on duty as vault manager, a cash count revealed that the bank was missing more than $100,000.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Nashonme Johnson prosecuted the case.
Men Sentenced to Combined 23+ Years for Selling Machinegun, SilencerRead the Press Release
Three men who sold a machine gun and silencer to an undercover ATF agent have been sentenced to more than 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Guy Mena, 34, and Stephen Kadlec, 39, were arrested and charged in November 2021. Mr. Kadlec plead guilty in January 2022 to transferring a firearm in violation of the National Firearms Act and was sentenced in June to two years in federal prison. Mr. Mena pleaded guilty to transferring a firearm in violation of the NFA December 2021 and, in a separate case in July 2022, to conspiracy to distribute methamphetamine; he was sentenced last Thursday to a total of 14 ½ years in federal prison.
Their coconspirator Sergio Salgado, 37, was charged in May 2022. He also pleaded guilty to transferring a firearm in violation of the NFA and was sentenced in October to more than seven years in federal prison.
According to court documents, Mr. Mena offered to sell a confidential informant a firearm frame, two receivers – one semi-automatic and one fully-automatic – a silencer, and some firearm magazines for $6,000.
Accompanied by an undercover ATF agent, the confidential informant met Mr. Mena, Mr. Kadlec, and Mr. Salgado at a motel in Arlington on Nov. 18 2021. Mr. Kadlec showed the undercover agent the full-auto receiver, demonstrated how to swap the semi-auto receiver for the full-auto receiver on the firearm frame, outlined the functionality of the silencer, and explained how to toggle the selector switch to full-auto to turn the firearm into a machinegun.
(Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.)
The undercover agent handed over $6,000 and departed with the firearm, receivers, silencer, and magazines. Shortly after the ATF agent left the room, Texas DPS officers observed Mr. Mena, Mr. Kadlec, and Mr. Salgado exit the hotel room and get into a vehicle; when they pulled the vehicle over, they detained the three men and recovered the government funds.
Prior to the firearm transaction, Mr. Mena had sold more than 50 grams of methamphetamine to another confidential informant out of his apartment in Abilene.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division and the Texas Department of Public Safety conducted the investigation in cooperation with the Arlington Police Department, the Abilene Police Department, and the Drug Enforcement Administration’s South Central Laboratory. Assistant U.S. Attorney Levi Thomas prosecuted the firearms cases against all three defendants while Assistant U.S. Attorney Juanita Fielden prosecuted the drug case against Mr. Mena.
Amarillo Man Pleads Guilty to Use of WMDRead the Press Release
An Amarillo man who set off a bomb in his backyard, stashed a suicide vest in his alleyway, and privately plotted to blow up a local high school pleaded guilty today to a weapons of mass destruction (WMD) charge, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Erfan Salmanzadeh, a 33-year-old naturalized citizen of the U.S. born in Iran, pleaded guilty on Monday to use and attempted use of a weapon of mass destruction.
According to plea papers, Mr. Salmanzadeh admitted to law enforcement that he used homemade triacetone triperoxide (TATP) to blow up an Xbox in his back yard on July 26, 2021. At the time, he claimed he wanted to see how much damage such an explosion would cause.
He further admitted that after law enforcement arrived at the home to investigate the explosion – which was reported by neighbors who heard the blast – he flushed a gallon-sized jar of TATP powder down the toilet and concealed a suicide vest and a nail bomb in a dumpster in his alleyway:
According to plea papers, bomb technicians collected residual TATP – an extremely unstable explosive that reacts violently to friction and shock – from the defendant’s porcelain toilet bowl. They also discovered TATP residue on a white PVC pipe hidden in his bedroom closet. Officers recovered the suicide vest, which contained several sewn pockets filled with red cylindrical taped tubes labeled “dynamite,” and nail bomb from the dumpster.
Law enforcement later reviewed his electronic devices, including a video Mr. Salmanzadeh recorded on July 22, 2021, threatening to blow up a local high school.
“We are going to blast the school,” he said in Farsi, before displaying the nail bomb filled with shrapnel, the suicide vest filled with pipes labeled dynamite, a suitcase filled with container labeled explosives, and a backpack filled with bottles labeled explosives to the camera.
Officers uncovered several other videos showing Mr. Salmanzadeh conducting test explosions and several journals that contained notes and formulas related to the production of explosives.
In plea papers, Mr. Salmanzadeh admits he used the internet to conduct all the research he needed to construct TATP and WMD. He also admitted he used the internet to purchase a plane ticket to California on July 28, 2021, to avoid detection by law enforcement after a bombing.
“Armed with internet research, this defendant was able to create homemade explosives capable of wreaking mass casualties – casualties he dreamed of inflicting on innocent high schoolers,” said U.S. Attorney Chad Meacham. “Without vigilant neighbors who reported the sound of the explosion to authorities and immediate law enforcement intervention, this may have ended in tragedy. Instead, the community is a little bit safer today as this defendant is being held accountable for his criminal activity.”
“The FBI’s top priority continues to be preventing a terrorist attack in the United States. The defendant had a device with the potential to cause significant damage and harm innocent people, and we would like to thank our partners at the Amarillo Police Department, Texas Department of Public Safety, Randall County Sheriff’s Office, and Homeland Security Investigations for their collaboration on this investigation," said FBI Dallas Acting Special Agent in Charge James Dwyer.
Mr. Salmanzadeh now faces up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office and the Amarillo Police Department conducted the investigation with the assistance of the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, Randall County Sheriff’s Office, and the Amarillo Fire Department. Assistant U.S. Attorneys Jeffrey Haag and Josh Frausto are prosecuting the case with assistance provided by the National Security Division’s Counterterrorism Section.
Meth Trafficker Found Guilty at TrialRead the Press Release
A drug trafficker who retrieved methamphetamine from a stash house in Dallas was convicted at trial this week, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Omar Jorge Valle Estrada and his coconspirators were first charged in August 2021. On Thursday, a federal jury found Mr. Estrada guilty of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to evidence presented at trial, law enforcement conducting surveillance at a stash house on Holcomb Road in Dallas observed Mr. Estrada drive up to the residence in a white Chevy Malibu.
Two men emerged from inside the home carrying duffel bags, which they placed in Mr. Estrada’s passenger seat.
After he departed the home, law enforcement pulled him over for operating with an expired registration and discovered 120 pounds of crystal methamphetamine inside the duffel bags.
Codefendants Angel Cabrera and Joaquin Salinas – who admitted they were concealing millions of dollars of methamphetamine inside boxes of cauliflower – pleaded guilty prior to trial.
Mr. Estrada now faces up to life in federal prison. Mr. Salinas received a life sentence; Mr. Cabrera received a sentence of more than 21 years.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, the Hickory Creek Police Department, the Fort Worth Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorneys George Leal and John Kull prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Aryan Brotherhood Gang Member Sentenced to 20 Years for Meth TraffickingRead the Press Release
A meth trafficker was sentenced this week to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Robert Aristotle Pandolfi, a 51-year-old California man living in Texas, pleaded guilty in July to possession with intent to distribute methamphetamine. He was sentenced Tuesday by U.S. District Judge Matthew J. Kacsmaryk.
According to plea papers, on March 11, 2021, a sheriff’s deputy in Amarillo stopped a vehicle in which Mr. Pandolfi was a passenger. A drug detection canine alerted to the presence of narcotics in the vehicle after a free air sniff. Deputies searched the car and located ten bundles of methamphetamine in the car’s spare tire compartment.
In an interview, Mr. Pandolfi – a confirmed member of the Aryan Brotherhood prison gang – admitted to buying drugs in California and trafficking them across state lines. He told officers that he had made at least five prior trips to transport methamphetamine.“One of our major investigative efforts is to target individuals and criminal enterprises that peddle illicit narcotics that propel violence and threaten the vitality of the communities in which we live,” said HSI Dallas Assistant Special Agent in Charge Robert Melton of the Oklahoma/Texas Panhandle Division. “Through our trusted partnerships with local, state and federal law enforcement, we will deploy every available resource to dismantle these organizations, ensuring those involved in pushing these addicting drugs are brought to justice. The conclusion of this case and subsequent sentencing is a direct correlation of the impact of our strength when our law enforcement partners work together.”
The defendant has also been charged by the state of Kentucky with possession of a controlled substance, tampering with physical evidence, drug paraphernalia, speeding, and reckless driving. At Tuesday’s sentencing hearing, Judge Kacsmaryk ruled that Mr. Pandolfi’s federal sentence would run consecutive to any sentence imposed in that case. (In the state case, Mr. Pandolfi is presumed innocent until proven guilty.)
Homeland Security Investigations and the Potter County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Meredith Pinkham prosecuted the Northern District of Texas case.Texas Man Pleads Guilty to Lying About Origin of Chinese-Made ProductsRead the Press Release
A Grand Prairie man pleaded guilty Wednesday to lying to the federal government about where his company’s products were manufactured, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Suhaib Allababidi, 45, pleaded guilty to one count of conspiracy to defraud the United States. His company, 2M Solutions Inc., pleaded guilty to one count of conspiracy to defraud the United States and one count of filing false or misleading export information.
According to court documents, Mr. Allababidi, the owner and president of 2M, admitted that the company – which provided security cameras, solar-powered light towers, digital video recorders, and other electronics to various U.S. government agencies – claimed that its products were manufactured in the United States, when in actuality they were manufactured in the People’s Republic of China by Chinese companies.
In order to secure contracts with U.S. government agencies, including the Department of Defense, Department of Justice, and Department of Homeland Security, Mr. Allababidi represented that 2M was “a USA Manufacturing Company.” In actuality, 2M did little to no manufacturing but instead regularly purchased products from Chinese companies, removed labels indicating the true country of origin, and replaced them with labels indicating they were manufactured in 2M’s Grand Prairie facility. On its packaging, 2M included logos including the American flag in the shape of a map of the U.S. and the words “Made in the USA.”
By falsely representing that its products were manufactured in the United States, 2M was able to secure contracts subject to the Buy America Act (BAA), a law which generally prohibits United States Government agencies from purchasing products made outside the United States with some limited exceptions.
2M repeatedly certified to the government that its products were BAA-compliant and took various steps to conceal their Chinese origin. On one occasion, when products were to be shipped directly from a Chinese company to the government agency, a 2M employee sent the Chinese company an email reminding them, “we do not want any Chinese characters or stickers on the shipment” and adding that such stickers “will cause many problems for us.”
2M also pled guilty to submitting false information in relation to products exported to foreign customers. In contravention of export laws, the company submitted false information to the Automated Export System, a government-run platform that collects export information and distributes it to multiple federal agencies to assure compliance. The company falsified the description of items exported, misrepresented the ultimate recipient of the items, and falsely stated that no export license was needed for shipments that required a license.
“The federal government takes pride in purchasing products made in the United States,” said U.S. Attorney Chad Meacham. “This defendant’s lies undermined the Buy America Act and with it, American manufacturing.”
“Today's outcome demonstrates the commitment of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD procurement process,” said Acting Special Agent in Charge Gregory P. Shilling, DCIS Southwest Field Office. “We will continue to aggressively investigate and hold accountable those who put the DoD supply chain at risk.”
Mr. Allababidi now faces up to five years in federal prison. 2M faces fines of up to $1 million or twice the amount of criminally-derived property, whichever is greater.
The Defense Criminal Investigative Service, the Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Commerce - Bureau of Industry and Security, Office of Export Enforcement, the General Services Administration’s Office of Inspector General, Homeland Security Investigations, and the Justice Department’s Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case with the assistance of the Justice Department’s National Security Division.
San Angelo Tax Preparer Sentenced to 14 Years for Tax FraudRead the Press Release
A San Angelo tax preparer whose fraudulent tax returns cost the IRS millions of dollars was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham. His adult son and daughter were sentenced to 66 and 80 months, respectively.
Hugo Cesar Granados, manager of Columbia Tax Service, his daughter, Blanca L. Granados, and his son, Hugo Alberto Granados, were convicted at trial in August of conspiracy to defraud the United States and multiple counts of aiding in the preparation and presentation of false documents. They were sentenced Tuesday by U.S. District Judge James Wesley Hendrix
“Columbia Tax Service doctored clients’ tax returns to inflate clients’ refunds and line the Granados’s pockets. Such blatant fraud is an affront to all conscientious taxpayers,” U.S. Attorney Chad Meacham said following the verdict. “As is their right, the Granadoses opted for a trial by jury. We are proud to have obtained a guilty verdict. I’m thankful to the IRS Criminal Investigation agents who ran this case to ground and to the members of the jury, who gave three days of their lives to bring these defendants to justice.”
“Today, justice is served - a victory for all honest tax return preparers and taxpayers. Hugo Cesar Granados, along with his daughter and son, are being held accountable for their criminal actions,” Special Agent in Charge Christopher J. Altemus, Jr., IRS Criminal Investigation of the Dallas Field Office said today. “I am extremely proud of the women and men of IRS-CI who work tirelessly each and every day to bring criminals like these individuals to justice. I also want to extend my gratitude to the US Attorney’s office and specifically the prosecution team for their relentless pursuit of justice in this case.”
At trial, prosecutors introduced evidence that the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns (Forms 1040) in order to inflate the clients’ tax refunds.
They routinely fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements, claiming the taxpayer owned a business when no such business existed, claiming unreimbursed employee expenses such as travel and per diem, and claiming business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred or grossly inflated.
Testimony adduced at trial showed that Columbia Tax Service claimed more than $900,000 in income in 2015 and more than $1.3 million in income in 2016.
An employee who plead guilty prior to trial, Saul Garcia-Soto testified that in 2016, Columbia Tax employees met with Hugo C. Granados because taxpayers were not receiving their refunds from the IRS. When questioned, the elder Mr. Granados asked the employees if they thought the company was doing something illegal. Mr. Garcia-Soto said that he, Blanca Granados, and Hugo A. Granados all replied that they thought Columbia Tax was doing something illegal. In response, Hugo C. Granados just smiled and turned back to his computer.
In a Skype chat introduced at trial, Blanca Granados wrote to a co-worker: “Fraud is ridiculous here yo . . . I swear.”
Prosecutors also introduced into evidence the company’s “tax preparation manual,” a handbook that outlined exactly how to commit fraud.
In discussing preparation of Schedule C of the tax return, the manual stated: “This is where your training and knowledge of income and deductions will make a big difference in the amount of refund the taxpayer will be obtaining. A determination has to be made if the return needs additional income to generate the maximum earned income and other credits or if the return has a substantial amount of income (Adjusted Gross Income) and needs to come down to maximize the earned income and other credits.” In other words, the manual advised tax preparers to manipulate income to maximize refunds rather than referring to the law to determine whether an activity was a business for income tax purposes and whether expenses properly qualified as a business deduction.
At sentencing, experts put the estimated tax loss in excess of $11.7 million.
The Internal Revenue Service - Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas, including Assistant U.S. Attorneys Jeffrey Haag, Ann Haag, Amy Burch, and Paulina Jacobo (fmr), prosecuted the case.
Mother Accused of Using Children to ‘Mule’ Fatal FentanylRead the Press Release
An Albuquerque mother who allegedly concealed a deadly dose of fentanyl inside her children’s luggage has been charged with a federal drug crime, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Magdalena Silva Banuelos, 46, was indicted on distribution of a controlled substance resulting in death.
According to court documents, she allegedly gave her boyfriend the fentanyl that killed him.
At a detention hearing in New Mexico on Nov. 17, prosecutors revealed that Ms. Banuelos and her boyfriend, who was also her sons’ father, were in an on-again, off-again relationship.
On May 31, she allegedly put the boys, ages 8 and 10, onto a flight from Albuquerque to Texas's Dallas Love Field Airport to visit their dad.
Surveillance video shows that the father picked up the boys from the gate, rifled through their luggage, and then entered the airport restroom at around 10:26 p.m. A few minutes later, he overdosed and died in a restroom stall, just steps away from his sons.
From inside the stall, investigators recovered a Clinique brand makeup container containing more than a gram of fentanyl.
They also recovered text messages between the victim and defendant, suggesting that the defendant knew the victim planned on ingesting the fentanyl and was aware of the risk it posed.
“Hey you need to be careful,” she wrote a few hours before he died.
“Yes ma’am. Very slow and easy,” he replied.
“Just one and then wait you’ll see,” she said. “Just one.”
“Ok cool. Thank you. Will do,” he said.“No passing out on the kitchen floor,” she responded. “Seriously you could od. No dying on the kitchen floor… It’s going to f**k you up!!!
At the hearing, the prosecutor argued the defendant allegedly “used her minor children to mule drugs.” Ms. Banuelos was ordered detained pending trial.
“I feel for these children. To lose one parent due to the actions of the other is a calamity for a child,” said U.S. Attorney Chad Meacham. “This defendant allegedly concealed fentanyl – a synthetic opioid 50 times more potent than heroin – in her own minor sons’ luggage. This drug has stolen too many futures and ruined too many lives. The Justice Department remains determined to hold accountable those who spread it.”
“This arrest and detention is yet another example of the devastation that fentanyl continues to reap on families throughout the country. The actions of Ms. Banuelos risked the lives of her minor children by concealing a highly potent drug in their luggage during a flight from Albuquerque to Dallas”, said Acting Special Agent in Charge W. Guy Baker of the DEA Dallas Field Division. “The DEA will continue to work side-by-side with our state and local partners in investigating drug related poisonings and overdose deaths to hold those accountable for their actions.”
An indictment is merely an allegation of criminal conduct, not evidence. The defendant is presumed innocent until proven guilty in a court of law.
If convicted, she faces up a mandatory minimum of 20 years and up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Courtney Coker is prosecuting the case with the assistance of the U.S. Attorney’s Office for the District of New Mexico.
North Texas Couple Charged with $684,000 Paycheck Protection Program FraudRead the Press Release
A North Texas couple has been charged with defrauding the Paycheck Protection Program out of more than $684,000, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Patrick Kasong Muyej, 48, and Chisanga Mable Scot, 43, were indicted on one count each of conspiracy to commit conspiracy to commit wire fraud. Mr. Muyej was also charged with eight counts of money laundering and one count of theft of government funds while Ms. Scott was charged with one count of false use of a passport.
According to the indictment, the pair allegedly submitted fraudulent applications for $1.85 million in Paycheck Protection Program loans on behalf of businesses that did not qualify for the loans.
In application paperwork, they allegedly falsified the business’s number of employees – listing individuals who they did not employ – and manufacturing the businesses’ monthly payroll.
They allegedly used the same bank statement in support of multiple loan applications but doctored the name of the account holder on each one to match the name of the PPP loan applicant.
In total, they received two PPP loans totaling $684,158.33. Mr. Muyej is also alleged to have laundered that money.
In addition, Mr. Muyej also took advantage of Covid relief by fraudulently obtaining unemployment insurance benefits from the State of Nevada in August 2020.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Muyej and Ms. Scott face up to 20 years in federal prison on the count of conspiracy to commit wire fraud. Mr. Muyej also faces up to 20 years in prison on each count of money laundering and up to ten years for the count of theft of government funds. Ms. Scott faces up to 10 additional years on the count of false use of a passport.
The Federal Bureau of Investigation’s Dallas Field Office and the State Department’s Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Marty Basu is prosecuting the case.
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and certain other expenses.
Fort Worth Manufacturer Charged in Glock Switch CaseRead the Press Release
A Fort Worth man who allegedly manufactured and sold thousands of machinegun conversion devices – small, 3D-printed gadgets that convert ordinary firearms into fully automatic machineguns – has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Xavier Desean Watson, was charged via criminal complaint with possession and transfer of machine guns. He was arrested without incident in the parking lot of his apartment complex on Thursday night and made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton in Fort Worth on Friday. Three additional conversion device sellers, Ayoob Wali, 23, Jose Corral Santillan, 19, and Montavion Jones, 20, were charged earlier this year.
Over the course of the investigation, ATF agents seized more than 650 conversion devices, colloquially known as “switches” (installed in Glock-style pistols) or “sears” (installed in semi-automatic rifles).
“As simple to manufacture as they are quick to install, conversion devices turn regular firearms into machineguns capable of inflicting tremendous harm in a few split seconds,“ said U.S. Attorney Chad E. Meacham. “Imagine hardened criminals armed not only with pistols, potentially lethal in their own right, but also with automatic firearms rivaling those carried by the U.S. military. These half-inch pieces of plastic are putting our people at risk. We cannot let these devices proliferate on our streets.”
“Machinegun conversion devices pose a serious threat to public safety and have been increasingly used in violent gun crime. This investigation is a clear example of the relentless pursuit by ATF along with our partners to disrupt not only those possessing and using these weapons but also their suppliers,” said James VanVliet Acting Special Agent in Charge of the ATF’s Dallas Field Division.
According to court documents, in early 2022, Fort Worth law enforcement noted a surge in shootings involving conversion devices, which allow gunmen to fire multiple rounds of ammunition in quick succession with a single depression of the trigger.
(Conversion devices turn legal firearms into machineguns, which are generally unlawful for non-licensed civilians. A pistol equipped with a conversion device can fire up to 1200 rounds per minute – a faster rate of fire than the standard M-4 machinegun issued to U.S. military servicemembers. A standard 3D printer can produce about 100 plastic switches every 72 hours.)
Multiple criminal defendants identified Mr. Corral, a gang member, as a source of supply. Mr. Corral and his associate, Mr. Jones, led agents to Mr. Wali, who eventually identified Mr. Watson as the printer.
According to court documents, in March 2022, an undercover agent, accompanied by a confidential informant who connected with Mr. Jones via Instagram, purchased 10 machinegun conversion devices from Mr. Jones. The defendant used a juvenile dubbed “little buddy” to deliver the devices to the agent. The following month, the agent purchased eight switches from Mr. Corral.
The agent asked Mr. Corral if he printed the switches himself; he allegedly replied that he did not, but “I got the guy that got the printer.” The undercover agent then overheard Mr. Corrall place a call to a man he referred to as “Whale,” later identified as Mr. Wali. The agent later asked if he could meet Mr. Wali, but Mr. Corral said the man was “paranoid.” Shortly thereafter, agents observed Mr. Corral meet up with Mr. Wali inside his car, then emerge with a bulging backpack under his sweatshirt.
Mr. Wali and Mr. Corral were arrested on May 3; Mr. Jones was arrested on June 6.
Mr. Wali initially claimed he found the machine gun devices in a vehicle he purchased, but later admitted his supplier was a man named “Xavier,” later identified as Mr. Watson.
According to the complaint, an undercover ATF agent went on to purchase a total of 33 conversion devices and a 3D-printed AR-15 style pistol from Mr. Watson, who bragged that he could produce roughly 400 switches a day on two 3D printers set up in his living room. He used a tablet to load conversion device printing directions onto the printer.
The agent met Mr. Watson at his home on Oct. 18 and Oct. 26. On both occasions, Mr. Watson assembled the conversion devices and showed the agent how to insert a conversion device into an AR-style firearm. On the second occasion, he showed the undercover agent the 3D printers and printed the switches while he waited. Mr. Watson acknowledged that he knew some of his buyers were selling the switches, and said that he had previously mailed devices to recipients by concealing them inside a children’s toy.
A criminal complaint is merely allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Watson faces up to a decade in federal prison.
Mr. Corral pleaded guilty on June 22 to unlawful possession of machine guns and was sentenced on Oct. 7 to 57 months in federal prison. Mr. Jones pleaded guilty to the same charge on Aug. 24 and is set to be sentenced on Dec. 13. Mr. Wali pleaded guilty on Nov. 16 and is set to be sentenced on Jan. 18, 2023.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Frank Gatto is prosecuting the case
Eighteen Charged in Methamphetamine Trafficking Case in LevellandRead the Press Release
Eighteen alleged methamphetamine traffickers have been federally charged with drug and gun crimes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Twelve of the eighteen individuals were arrested during a large-scale operation in Levelland, Texas and surrounding counties Wednesday. The operation, led by the FBI’s Lubbock Resident Agency, involved around 150 law enforcement personnel. The remaining six individuals, who were already in state custody, are being brought into federal court on writs.
Those charged include:
- Bobby Joe Gonzales – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Rance Devin Jordan – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Michael Salazar – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Timothy John Perez – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine
- Judy Cirillo Qualls – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm
- Anthony Raven Ruiz, aka Acid – conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine,
- Jose Angel Marquez – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Juan Luis Quezada – conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime
- Ernest Michael Chavez – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine
- Jennifer Dianne Clem – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Jason Wade Grant – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Ruben Soliz Guajardo – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Gilberto Guajardo – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Santiago Vizcarra, Jr., aka Quick – distribution of methamphetamine
- Gerry Wayne Varner – possession with intent to distribute methamphetamine, convicted felon in possession of firearms, possession of unregistered firearms.
Indictments are merely allegations of criminal conduct, not evidence.
If convicted, some of the defendants face up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency conducted the investigation with the Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Hockley County Sheriff’s Office, the Levelland Police Department, and the Cochran County Sheriff’s Office. Assistant U.S. Attorney Ryan Redd is prosecuting the case.
VA Employees Plead Guilty in $2.9 Million Embezzlement SchemeRead the Press Release
Two former employees of the U.S. Department of Veteran’s Affairs entered guilty pleas in a $2.9 million embezzlement scheme, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Randius McGlown, 56, and Charles Gates, 54, both pleaded guilty to theft of government funds. Mr. McGlown entered his plea in October and Mr. Gates entered his on Thursday.
According to plea papers, Mr. McGlown, an inventory manager and acquisition utilization specialist at the Dallas VA Medical Center, entered a company he created, G4 Logistics, into the medical center’s vendor system in 2014.
He and Mr. Gates then generated phony purchase orders for G4 equipment and materials and used a medical center-issued purchase card to pay the bill using the payment processing platform Stripe. G4 never delivered any items.
The VA money paid to G4 was deposited into an account controlled by an individual identified in court documents as J.R. When he was notified of a fake purchase, J.R. would withdraw the money from the account, deliver most of it to Mr. McGlown or Mr. Gates, and keep the remaining amount for himself.
In 2018, Mr. McGlown switched from G4 to another fictious company he named Caprice.
To conceal the scheme, Mr. McGlown created fake invoices and used existing items in the medical center’s inventory to cover up the fact that G4 and Caprice never delivered any materials.
“Using their official government positions to steal millions of taxpayer dollars is an egregious crime that diverts resources from deserving veterans and erodes public trust. These guilty pleas should send a clear message that the VA Office of Inspector General will diligently investigate those who would misuse their positions to commit fraud,” said Acting Special Agent in Charge Patrick Roche of the VA Office of Inspector General’s South Central Field Office. “The VA OIG thanks the US Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
Mr. McGlown and Mr. Gates now face up to 10 years in federal prison.
The Department of Veterans Affairs, Office of Inspector General, conducted the investigation with the assistance of the Federal Bureau of Investigation’s Fort Worth Field Office, and the General Services Administrations, Office of Inspector General. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Three More Professionals Indicted in $1 Billion Tax Shelter SchemeRead the Press Release
A second attorney and two tax professionals have been indicted in the $1 billion Garza tax shelter scheme, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham and Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division Stuart Goldberg.
Attorney and CPA Kevin McDonnell and CPA James Richardson, co-owners of tax preparation and accounting firm McDonnell Richardson, P.C., were added to the case in a superseding indictment filed Tuesday. The pair are charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud, and five counts of assisting in the preparations of fraudulent tax returns. Craig Fenton, a tax manager at McDonnell Richardson, was indicted on the same charges.
The alleged mastermind of the scheme, attorney Joseph Garza, was previously indicted on 18 counts of wire fraud, one count of conspiracy to commit wire fraud, and 22 counts of aiding and assisting in the preparation of fraudulent income tax returns. The superseding indictment added a charge of conspiracy to defraud the United States.
According to the court documents, Mr. Garza allegedly directed his clientele to use hand-picked tax professionals – including Mr. McDonnell, Mr. Richardson, and Mr. Fenton – who helped him illegally shelter their otherwise taxable income. Mr. Garza allegedly charged clients a percentage of the predetermined amount of money they had chosen to shelter from taxes; Mr. McDonnell, Mr. Richardson, and Mr. Fenton were compensated for their roles in the scheme as well.
The defendants allegedly created multiple shell companies – including shell “services” companies and shell “investments” companies – to create a circular flow of funds to help clients avoid paying taxes.
These shell companies purported to provide services to the clients’ businesses or to serve as family investment vehicles, but actually had no legitimate purpose other than to move money. The defendants allegedly created sham operating agreements and service agreements, fictious invoices, and false private annuity agreements designed to give the companies the appearance of legitimacy and conceal the scheme from the IRS.
The defendants then allegedly assisted clients in the preparation and filing of fraudulent tax returns, falsely deducting businesses expenses for services that were never performed, falsely reporting gross receipts for payments that were not earned, falsely deducting payments from the investment company to the taxpayer for annuities that didn’t exist, and underreporting the individual taxpayers’ incomes.
The scheme allegedly resulted in more than $1 billion in unreported income and more than $200 million in unpaid taxes.
“Kevin McDonnell, James Richardson, and Craig Fenton participated in a tax scheme that resulted in $1 billion in unreported income and more than $200 million in unpaid taxes. Now they face severe consequences, including jail time and substantial fines,” said Special Agent in Charge Christopher J. Altemus, Jr, IRS - Criminal Investigation, Dallas Field Office. “Today's indictments reinforce our commitment to every American taxpayer that the dedicated women and men of IRS Criminal Investigation will continue to work tirelessly to identify and prosecute tax professionals who devise illegal tax shelters to evade the tax obligations of their wealthy clients."
An indictment is merely an allegation of criminal conduct, not evidence. All four defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to 5 years in federal prison for conspiracy to defraud the United States, 20 years in prison for conspiracy to commit wire fraud, and up to three years in prison for each count of aiding and assisting in the filing of false federal income tax returns. Mr. Garza also faces up to 20 years in prison for each count of wire fraud.
IRS – Criminal Investigations’ Dallas Field Division conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys Renee Hunter, Katherine Miller, and Marty Basu of the Northern District of Texas are prosecuting the case with Trial Attorney Robert Kemins of the Justice Department’s Tax Division.CityXGuide Owner Sentenced to 8+ Years in Prison for Reckless Disregard of Sex Trafficking, Racketeering ConspiracyRead the Press Release
The owner of CityXGuide.com – a leading source of online ads for sex trafficking victims – was sentenced today to more than eight years in federal prison and ordered to forfeit more than $15 million in assets, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Wilhan Martono, 48, was arrested on June 19, 2020, the same day CityXGuide and its sister websites were seized by Homeland Security Investigations.
He pleaded guilty on Aug. 24, 2021 to one count of promotion of prostitution and reckless disregard of sex trafficking and one count of conspiracy to engage in interstate transportation in aid of racketeering enterprises - facilitating prostitution. The plea was the first ever entered under the Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA), the 2018 law that allows the federal government to prosecute websites that facilitate sex trafficking.
He was sentenced Monday to 97 months in federal prison by Chief U.S. District Judge David Godbey, who also ordered him to forfeit more than $15 million in assets, including more than $2 million in silver bullion and almost $1 million in cryptocurrency.
“The owner of CityXGuide intentionally disregarded the blatant sexual abuse occurring on his platform. He profited off of the exploitation of vulnerable women and children, just like the traffickers advertising them on his website did,” said U.S. Attorney Chad Meacham. “Human trafficking is one of the most despicable crimes we prosecute. The Justice Department and its partners will not rest until sites like this are eliminated and their creators brought to justice.”
“Thanks to the investigative efforts of our law enforcement partners on the HSI Dallas led North Texas Trafficking Task Force, the largest digital market place for sex trafficking and prostitution no longer exists,” said Lester R. Hayes Jr., Special Agent in Charge of Homeland Security Investigations Dallas. “This defendant’s greed and trafficking of those who were exploited through the commercial sex websites he created has cost him his freedom and the forfeiture of the criminal proceeds he obtained while committing these crimes. HSI will not relent until those who conspire in these illegal activities are brought to justice.”
“Today’s sentencing illustrates the Secret Service’s steadfast commitment to investigating financial crimes that take place in the ever-evolving cyber domain,” said Secret Service Special Agent in Charge of the Dallas Field Office William Smarr. “We are thankful for the tireless work of our local, state, and federal law enforcement partners as we worked together to bring this case to justice.”
According to court documents, Mr. Martono admitted that he created, owned, and operated CityXGuide and a suite of related websites, including Backpage.co, CAPleasures.com, and BodyRubShop.com, among others.
He registered the domain names for several of the sites on April 8, 2018 — just one day after the feds shut down Backpage.com, then the internet’s leading source of commercial sex advertisements. Like Backpage, Mr. Martono’s sites allowed users, including traffickers, to post hundreds of thousands of commercial sex advertisements worldwide.
In plea papers, Mr. Martono admitted that he turned a blind eye to the illegal sex trafficking occurring on CityXGuide.
Despite terms of use purportedly forbidding the advertisement of illegal sexual services, CityXGuide and its affiliated websites allowed brothels, pimps, and prostitutes to post hundreds of thousands of advertisements for sexual services, which users could then filter by geography and preference. The sites allowed advertisers to select from a pre-populated list of “intimate activities,” then add nude photographs, descriptions, work hours, methods of payment, and contact information for the women being advertised. In order to secure premium placement, the websites offered paid “upgrades,” which could be purchased in Bitcoin or in exchange for gift cards from Walmart, Best Buy, Amazon, and other retailers.
Mr. Martono then used CardCash, a third party gift card reseller, to exchange these gift cards for U.S. currency. He used a VPN to mask his IP address while conducting these CardCash transactions, then funneled proceeds though a network of business and personal bank accounts.
Despite receiving numerous emails from federal, state, and local law enforcement informing him that CityXGuide and its companion websites were being used to facilitate sex trafficking and child exploitation, he continued to operate those sites in the United States and around the world.
In court documents, prosecutors estimated that Mr. Martono netted more than $21 million off his websites, which users described as “taking over from where Backpage left off.”
The North Texas Trafficking Task Force conducted the investigation, led by Homeland Security Investigations’ Dallas Field Office, the United States Secret Service’s Dallas Field Office, and the Colleyville Police Department, with assistance from HSI’s El Paso and San Jose Field Offices as well as the Texas Department of Public Safety. Assistant United States Attorneys John de la Garza, Sid Mody (fmr), and Rebekah Ricketts (fmr) prosecuted the case.