Northern District of Texas
Press releases recorded for this federal judicial district.
Serial Bank Robbery Suspect Federally ChargedRead the Press Release
An Albuquerque man suspected of committing a string of bank robberies across Texas, Arizona, New Mexico, Mississippi, and California has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Fernando Enriquez, 35, was charged via criminal complaint on Wednesday with one count of bank robbery. He made his initial appearance Thursday afternoon before U.S. Magistrate Judge John R. Parker.
According to the complaint, on Tuesday, Mr. Enriquez allegedly entered a Chase Bank in Abilene, Texas, brandished a firearm, demanded cash from the teller, and then fled the scene.
The teller, who activated her silent alarm during the robbery, later described the suspect as a heavy-set Hispanic man wearing a face mask, grey hoodie, jeans, and a baseball cap.
A witness who was inside the bank during the incident used his phone to record video footage of the suspect exiting the bank and entering a white Chevrolet suburban bearing Mississippi license plates. He immediately turned the video over to law enforcement.
Forty-five minutes later, Texas DPS and Abilene Police Department officers pulled over the suburban in Merkel, Texas and detained Mr. Enriquez and his girlfriend, Crystal Quispe. Inside the vehicle, officers found a firearm, a gray hoodie, baseball cap, and a significant sum of U.S. currency.
Law enforcement transported Mr. Enriquez and Ms. Quispe to the Abilene Police Department, where Ms. Quispe told FBI agents that over the past 14 months, she and Mr. Enriquez have lived in Arizona, Mississippi, New Mexico, and California. She stated that though Mr. Enriquez was not employed most of that time, he always seemed to have cash on hand.
She told officers that prior to the robbery, Mr. Enriquez left her and his children at a motel, stating he had to fill the car with gas. When he returned, she said, he rushed to get the vehicle loaded and leave. She described Mr. Enriquez’s driving during their departure from Abilene as faster and more erratic than usual.
Based on physical description and the modus operandi, investigators believed that the suspect who committed the Abilene robbery may have committed similar robberies in Arizona, Mississippi, New Mexico, and California. They showed Ms. Quispe two photographs from the other bank robberies, both provided by FBI Phoenix. Ms. Quispe identified the man in the photographs as Mr. Enriquez.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Enriquez is presumed innocent until proven guilty in a court of law. (Ms. Quispe has not been charged with any crimes.)
If convicted, Mr. Enriquez faces up to 25 years in federal prison.
The Federal Bureau of Investigations’ Phoenix and Dallas Field Offices conducted the investigation with the assistance of the Texas Department of Public Safety, the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Matthew Tusing of the Northern District of Texas is prosecuting the case with significant support from the U.S. Attorney’s Office in the District of Arizona.
Perryton Police Officer Sentenced to 17 Years for Sharing Child Pornography on KikRead the Press Release
A former Perryton police officer was sentenced Thursday to 17 years in federal prison for child pornography offenses, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Aaron Bennett Daugherty, 36, pleaded guilty in July to transportation of child pornography. He was sentenced by U.S. District Judge Matthew J. Kacsmaryk, who also ordered a lifetime of supervised release following completion of the sentence.
According to plea papers, Mr. Daugherty was nabbed in an undercover FBI investigation into individuals using Kik, a social media app popular among teenagers, to share explicit images of children.
On June 9 2020, a Kik user with an obscene screenname – later identified as Mr. Daugherty – shared a video file depicting an adult male engaged in sexual acts with a blindfolded prepubescent child.
“I’m here to look at CP, everybody,” the user posted two weeks later. “Go on with the CP content!”
Law enforcement later contacted Mr. Daugherty at the Perryton Police Department. He admitted that he used Kik to view and share child pornography, adding that child porn did not “bother” him.
The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation with the full cooperation of the Perryton Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Jury Finds Illinois Man Guilty of Operating $20 Million Retail Crime SchemeRead the Press Release
An Illinois man was convicted at trial of running a multi-million dollar retail crime ring, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After four days of trial, a federal jury found Artur Gilowski, 48, of Barrington, IL, guilty of conspiracy to commit interstate transportation of stolen property and conspiracy to commit mail fraud. The defendant was ordered detained immediately after the verdict was read on Thursday.
According to evidence presented at trial, Mr. Gilowski’s coconspirators stole tens of thousands of products – valued at over $20 million – from brick-and-mortar retail stores across the United States, then shipped them to Mr. Gilowski, who sold the stolen goods on various e-commerce websites, generating more than $11 million in profits.
The thieves traveled across the country in vehicles registered under false names and used “booster skirts” (garments with concealment pouches for stolen goods) and electronic transmitters designed to disrupt retailers’ anti-theft and loss-prevention measures. Using aliases, they rented storage lockers where they kept the stolen items until they could be shipped to interstate and foreign customers via the U.S. Postal Service, UPS, and FedEx.
Mr. Gilowski created a network of numerous online seller profiles, multiple bank accounts, and various companies registered in other people’s names to conduct the unlawful online sale scheme and funnel the proceeds of his illicit operation to himself.
The evidence also showed that Mr. Gilowski received over a million dollars in cash from his crime ring – including $97,000 that was found in the center console of Mr. Gilowski’s truck – which led one of Mr. Gilowski’s coconspirators to testify at trial that Mr. Gilowski “treated money like trash.”
“Mr. Gilowski and his coconspirators swiped thousands of products from retail shelves, then resold stolen goods online,” said U.S. Attorney Chad Meacham. “We are proud to hold these defendants accountable for their crimes, and are grateful to the jury for their careful consideration of our case.”
“Organized retail crime leads to consumers having to pay higher prices for goods, fewer job openings, and a decrease in consumer spending on legitimate goods that small-business owners and other retailers depend on for survival,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “Working alongside the U. S. Attorney’s Office, U.S. Postal Inspection Service and Arlington Heights (Illinois) Police Department, we were able to secure today’s conviction, and take another step in our ongoing fight against organized retail crime so consumers and retailers don’t have to bear the brunt of those impacts.”
Five of Mr. Gilowski’s coconspirators pleaded guilty prior to trial.
Mr. Gilowski now faces up to 25 years in federal prison. He is set for sentencing on August 2.
The Arlington Heights Police Department in Illinois conducted the investigation with assistance from Homeland Security Investigations’ Dallas Field Office and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Fabio Leonardi and Camille Sparks prosecuted the case. Chief U.S. District Judge Barbara M.G. Lynn presided over the trial.
12 Methamphetamine Traffickers Arrested in Brownfield, Lamesa Drug BustRead the Press Release
Twelve alleged drug traffickers were arrested Wednesday in Operation Tormenta De Arena (“Sandstorm”), announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
During the bust in Lubbock, Brownfield, and Lamesa, DEA agents and their law enforcement partners also seized roughly 27 pounds of suspected methamphetamine, U.S. currency, and two firearms, including one that had been stolen.
Ten of the defendants were charged in a 12-count indictment unsealed today. Those charged in the indictment include:
- Jamey Jimenez, aka “Shorty,” charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Celia Zurita, charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Alfred Miranda, charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Rorigo Gonzales-Gonzales, aka “Canelo,” charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Patricia Renee Guerrero (née Lopez), charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Christina Fuentes, charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Jessica Moreno, charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Amanda Uresti Salgado, charged with conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine
- Lauren Mackenzie Helbert (née McCarroll), charged with conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine
- Christopher Matthew Vasquez, aka “Peeps,” charged with conspiracy to distribute methamphetamine
Another two were charged via criminal complaint.
“Methamphetamine trafficking penetrates every aspect of our society and threatens the safety of our neighborhoods,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division, which oversees operations in Lubbock. “DEA Lubbock and our law enforcement partners are committed to identifying and destroying the networks and criminal organizations who distribute this poison throughout La Mesa and Terry counties, and the overall greater Lubbock area.”
Defendants’ initial appearances will begin Thursday, March 31 at 1:30 p.m. in Lubbock.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants face up to life in federal prison; others face up to 20 years.
The operation was the result of the hard work of the Caprock HIDTA (High-Intensity Drug Trafficking Area) Task Force. The Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Office and Caprock HIDTA led the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, Homeland Security Investigations, Texas Department of Public Safety, Lubbock County Sheriff’s Office, Dawson County Sheriff’s Office, Terry County Sheriff’s Office, Lubbock Police Department, Brownfield Police Department, Lamesa Police Department, and the Texas Anti-Gang Unit. Assistant U.S. Attorneys Jeffrey R. Haag and Stephen J. Rancourt are prosecuting the case.
Man Sentenced to Two Years for Hoax Bomb ThreatsRead the Press Release
A Wichita Falls man who called in fake bomb threats was sentenced today to two years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Tommy Jay Hollis, 27, pleaded guilty in December 2021 to one count of making a hoax bomb threat. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Mr. Hollis admitted that posing as a friend, he submitted the bomb threat to the FBI National Threat Operations Center (NTOC) via tips.fbi.gov.
“I’m planning on bombing the downtown Wichita Falls,” he wrote in the tip, which was submitted on Aug. 30, 2021.
In an interview with law enforcement, Mr. Hollis admitted that he made the threat from an email account he created in his friend’s name in an attempt to cause law enforcement to arrest the friend. He claimed he did not intend to carry out an attack.
“Making threats to prompt a law enforcement response is dangerous and instills fear throughout the community,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI is proud to work with our partners at the Wichita Falls Police Department and the U.S. Attorney’s Office to ensure that defendants like Mr. Hollis are held fully accountable for their actions.”
According to court documents, Mr. Hollis had a history of making threats in other people’s names.
Posting as another friend, he reported to the NTOC that he was allowing a two-year-old to play with loaded firearms.
“He is my son I beat him with my hand and rape him too,” he said in the tip, submitted on July 26, 2021.
A welfare check on the child in question revealed no firearms or visible injuries.
Several weeks later, Mr. Hollis, posing as that same friend, reported to a local principal that he planned to attack his school.
“I’m letting you know I plan on attacking your school,” he wrote in the tip, submitted on Aug. 16, 2021. “Please if you care about the kids and the little girls you will report immediately I need to be locked up.”
Based on the hoax threat, the Burkburnett ISD Police Department added extra officers to protect every school in the district for the next two days.
The Federal Bureau of Investigation’s Dallas Field Office – Wichita Falls Resident Agency conducted the investigation with the assistance of the Wichita Falls Police Department. Assistant U.S. Attorneys Joseph Lo Galbo, Jay Weimer, and Taylor Winn prosecuted the case.
Former San Angelo Police Chief Convicted of BriberyRead the Press Release
San Angelo’s former Chief of Police has been convicted of accepting bribes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After a three-day trial and about seven hours of deliberation, a federal jury found Timothy Ray Vasquez, 52, guilty of one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud. Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – was first indicted in January 2020.
“Law enforcement officers, particularly those in leadership positions, should be bastions of integrity. By accepting bribes, Mr. Vasquez defiled his badge,” said U.S. Attorney Chad Meacham. “The Justice Department is determined to root out public corruption wherever we find it. Our citizens deserve honest public servants.”
“Mr. Vasquez will now be held accountable for using his official position for financial gain at the expense of the residents of San Angelo. Each act of greed and dishonor affected fundamental aspects of the government processes and procedures that were designed to benefit the people they serve,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Our communities should not have to question the integrity and trust of public officials, and today’s verdict is a step in restoring that confidence.”
According to evidence presented at trial, Mr. Vasquez used his official position to help Dailey & Wells Communications, Inc., a radio system vendor, land a $5.7-million-dollar contract with the City of San Angelo, Texas. In return, Dailey & Wells and its affiliates funneled Mr. Vasquez and his band, “Funky Munky,” more than $175,000. Dailey & Wells and its affiliates also provided him tickets for luxury suites at Dallas Cowboys and San Antonio Spurs games, tickets for a luxury suite at Journey concert, and free use of a luxury condominium at Alteza Condos in San Antonio.
Mr. Vasquez never disclosed to the City of San Angelo or the City Council that he had a business relationship with Dailey & Wells. The Texas Local Government Code, the City of San Angelo Employee Manual, and the San Angelo Purchasing Policy Manual all required Mr. Vasquez to disclose this relationship.
In February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. In April, a committee recommended the city award the $5.6 million contract to Dailey & Wells, which was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Dailey & Wells, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account. For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Dailey & Wells or its affiliates, Buster & Buddy and Trixie & Fini, either made out to Mr. Vasquez or his band. Testimony at trial revealed that Funky Munky’s average fee to play at an event was about $2,000. By June 2, 2015, Mr. Vasquez and Funky Munky had collected more than $84,000.
In 2014 and 2015, Dailey & Wells contacted the City of San Angelo about updating its radio system from a proprietary EDACS system, which was in the process of being phased out, to a P25 Phase II system. When the City’s IT Manager told Mr. Vasquez of the estimated cost of $6 million dollars and that it would have to go through the bidding process, Mr. Vasquez told the IT Manager they were not going through the bidding process and were going to continue to use Dailey & Wells. Mr. Vasquez suggested that the IT Manager use a public safety exception to avoid the bidding process and the IT Manager agreed. Ultimately, a purchasing cooperative was used to purchase the Dailey & Wells system.
Mr. Vasquez contacted a San Angelo City Councilmember and lobbied her to place the Dailey & Wells contract on the City Council’s agenda. Mr. Vasquez advocated for the Dailey & Wells contract before the City Council on December 16, 2014, and June 2, 2015.
Six people who were city council members at the time testified that Mr. Vasquez had significant influence with the City Council and it relied upon his advice in public safety matters. All six stated that they did not know Mr. Vasquez had a business relationship with Dailey & Wells before the vote on June 2, 2015. Five of those former city council members testified that if they had known that fact they would have voted against awarding the contract to Dailey & Wells. Two of the former city council members stated that if they had known of the payments then they would have disqualified Dailey & Wells from being a radio vendor to the city.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Dailey & Wells in late 2015.
In November 2016, Mr. Vasquez became aware that he was under investigation for the radio contract with Dailey & Wells. About one month later, Dailey & Wells wrote a $50,000 retainer check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez, through Funky Munky, received at least $175,000 from Dailey & Wells and its affiliates.
The defendant was remanded to the custody of the U.S. Marshals Service after the verdict. Mr. Vasquez faces up to 70 years in federal person.
The Federal Bureau of Investigation, the Tom Green County Sheriff’s Office, and the Texas Rangers conducted the investigation with the full cooperation of the San Angelo Police Department and the City of San Angelo. Assistant U.S. Attorneys Jeff Haag, Sean Long, and Juanita Fielden are prosecuting the case.
Arlington Doctor Sentenced to 12 Years in Pill Mill CaseRead the Press Release
An Arlington physician has been sentenced to 12 years in federal prison for fraud and drug crimes, announced U.S. Attorney for the Northern District of Texas Chad Meacham.
In July 2021, a federal jury convicted physician Clinton Battle, 69, of one count of conspiracy to distribute controlled substances and one count of distribution of a controlled substance. In a separate proceeding later that month, the defendant pleaded guilty to conspiracy to commit mail fraud. He was sentenced Thursday by U.S. District Judge Mark Pittman, who also ordered him to pay $376,368 in restitution.
According to evidence presented at trial, Dr. Battle routinely issued prescriptions for controlled substances – including hydrocodone, alprazolam, acetaminophen with codeine, tramadol, and phentermine – outside the usual course of professional practice and without a legitimate medical purpose. At times, he issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted. He also issued prescriptions for friends or family members with whom he had no physician-patient relationship.
At trial, one of Dr. Battle’s former employees testified that she, her husband, and Dr. Battle agreed that Dr. Battle would provide the employee’s husband with illegal controlled substance prescriptions in exchange for cocaine.
In addition to cocaine, the evidence also showed that Dr. Battle would receive money in the form of fees paid by “patients” of $200 for an initial visit and $80 for return visits in exchange for controlled substance prescriptions.
Dr. Battle also allowed his nurse practitioner, coconspirator Donna Green, to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, despite knowing that Ms. Green was not legally authorized to issue such prescriptions. (On the morning trial was set to begin, Ms. Green pled guilty to one count of acquiring a controlled substance through fraud.)
Throughout the course of the five-year conspiracy, Dr. Battle issued more than 50,000 controlled substance prescriptions, 17,000 of which were for the powerful opioid hydrocodone.
“Dealers of illegal drugs come in many forms. This is a case of the abuse of trust and position,” said DEA Special Agent in Charge Eduardo A. Chávez. “Dr. Battle and his co-conspirators used their authority to push pills into our neighborhoods disregarding the inherent harm they cause. DEA’s teamwork with our federal and local area law enforcement agencies make it possible to pursue any person distributing illegal drugs, no matter the disguise.”
Dr. Battle also defrauded worker’s compensation and health insurers by conspiring to submit claims for functional capacity evaluations (FCEs) that he claimed he himself administered over the course of several hours, according to his plea papers. In reality, his unlicensed assistants administered the evaluations, which took significantly less time than he claimed. In addition, Dr. Battle billed for physical therapy sessions that were conducted by unlicensed assistants or, at times, not conducted at all. He and his coconspirators also “upcoded” by billing for higher reimbursement levels than were authorized for the level of examination they performed.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service Office of Inspector General, IRS – Criminal Investigations, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Jay Weimer are prosecuting the case with the help of their appellate liaison, Assistant U.S. Attorney Leigha Simonton.
Man Charged with Trafficking Fentanyl-Laced Fake PercocetRead the Press Release
A Fort Worth man who allegedly sold fake Percocet pills laced with fentanyl has been charged with a federal drug crime, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Troy Wright, 40, was indicted on three counts of possession with intent to distribute fentanyl. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford after a criminal complaint was filed against him earlier this month.
“Mr. Wright demonstrated his wanton disregard for the lives of his neighbors and their children when he allegedly pushed onto the streets large numbers of counterfeit pills containing fentanyl,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas. “DEA and its local law enforcement partners will continue to improve the safety of our neighborhoods by working together to remove dangerous illegal drugs from our streets and hold accountable those who make these drugs available.”
According to court documents, a confidential source told DEA agents that Mr. Wright, aka “Roy,” had contacted him regarding sale of the fake pills.
At the agents’ direction, the source ordered 200 pills for $8 apiece. He and Mr. Wright met outside a hardware store in Irving, where Mr. Wright allegedly handed over the pills in exchange for $1,600. (Agents then confiscated the pills from the source.)
Two weeks later, the source ordered 400 pills for $7 apiece. Agents followed Mr. Wright from his home in Fort Worth to a discount clothing store in Hurst, Texas, where Mr. Wright allegedly gave the source the pills in exchange for $2,800. (Agents again confiscated the pills from the source.)
Immediately after the transaction, the source texted Mr. Wright asking to purchase additional pills.
“Picking my kids up from school we can meet up after 4 I can be headed your way,” the defendant responded.
An indictment is merely an allegations of criminal conduct, not evidence. Like all defendants, Mr. Wright is presumed innocent until proven guilty in a court of law.
If convicted, he faces 20 years on each count for a total of up to 60 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
Armed Carjacker Sentenced to 14 Years in Federal PrisonRead the Press Release
An Irving man who carjacked a woman at gunpoint was sentenced this week to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Markus DeWayne Vine, 28, pleaded guilty in May 2021 to carjacking and brandishing a firearm during a crime of violence. He was sentenced Tuesday by Chief U.S. District Judge Barbara M.G. Lynn.
According to plea papers, Mr. Vine admitted that on Aug. 20, 2020, he carjacked a woman entering her Toyota Highlander outside a grocery store in Irving.
When the victim noticed him approaching, she attempted to get into her vehicle and lock the doors. Mr. Vine, however, pointed a 9mm pistol at her head and demanded she exit the vehicle. She complied, and he drove away.
Mr. Vine then drove the car to a nearby gas station, where pointed the pistol at the clerk and fled with the money from the cash register. Roughly 15 minutes later, he drove to another gas station, pointed the pistol at that clerk, and made off with even more cash.
He was arrested two days later entering the stolen vehicle, which was parked at an Irving apartment complex. Police recovered the pistol from inside an apartment where he’d been staying.
After his arrest, Mr. Vine claimed the pistol was inoperable. Task Force officers inspected the firearm and determined that while the pistol appeared to be missing parts in both the trigger and firing pin assemblies, it qualified as a firearm under federal law.
“Mr. Vine is one of the reasons as to why ATF exists. ATF and our partners, like the Irving Police Department, are dedicated to taking the worst of the worst off of our streets. He was the definition of a menace to society: a carjacking followed by a gas station robbery. We are safer with him behind bars,” stated ATF Dallas Special Agent in Charge Jeffrey C Boshek II.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Irving Police Department conducted the investigation. Assistant U.S. Attorney Brian McKay prosecuted the case.
Celtic Cobra Team Honored with OCDETF National AwardRead the Press Release
Today, United States Attorney Chad E. Meacham presented the Organized Crime Drug Enforcement Task Forces National Award for Significant Contribution to Public Safety and Security to prosecutors and agents who worked Operation Celtic Cobra.
Celtic Cobra, which lasted from 2011 to 2019, led to the indictment of 60 individuals who trafficked drugs and laundered money for a number of drug cartels, including La Familia Drug Cartel, Los Caballeros Templarios, Cartel Nueva Generación de Jalisco, Los Zetas Cartel, Gulf Cartel, Puro Tango Blast Prison Gang, the Aryan Brotherhood of Texas, and Los Paisa’s Prison Gang.
At one point, undercover agents identified four people who used their positions of employment at the Dallas Fort Worth International Airport to bypass security to smuggle what they believed to be kilogram amounts of methamphetamine onto commercial airlines. At one point one defendant even agreed to smuggle inert explosives onto cross-country flights. These four defendants put the flying public at grave risk.
Over the course of the operation, the U.S Attorney’s Office, the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division seized approximately 50 firearms, $855,513.00 cash, $400,000.00 in real and personal property, 1,025 kilograms of methamphetamine, 12 kilos of cocaine, and 33 kilos of heroin.
All but three of the 60 defendants were captured; all 57 captured defendants pleaded guilty. One defendant received two life sentences in prison for drug trafficking and several defendants received maximum sentences for money laundering.
Award recipients included:
Assistant U.S. Attorney George LealAssistant U.S. Attorney John de la Garza
Assistant U.S. Attorney John Kull
FBI Special Agent Robert Benton
FBI Special Agent Joseph Mathews
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 works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
Man Sentenced to 10 Years for Offering to ‘Break’ Sex Trafficking VictimRead the Press Release
A 39-year-old man who volunteered to torture a sex trafficking victim for money was sentenced today to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Billie Joe Sanford, of Eustace, Texas, was charged via criminal complaint in November 2020 and indicted the following month. He pleaded guilty in November 2021 to attempted kidnapping and was sentenced today to 10 years’ imprisonment by U.S. District Judge Ada Brown.
According to plea papers, Mr. Sanford admitted that he responded to an online advertisement for a sex trafficking victim who “needs breaking.” Unbeknownst to Mr. Sanford, the ad had been posted by an undercover agent.
“I am willing to help break her into a proper slave,” Mr. Sanford wrote.
In subsequent messages, he asked for $5,000 a week to brutalize the victim, demanding “complete privacy” without neighbors nearby.
A few weeks later, Mr. Sanford and the undercover agent met in person in Plano, TX.
Posing as the head of a sizable human trafficking ring, the agent told Mr. Sanford he planned to “make a fortune” pimping out the victim, but was concerned by her refusal to engage in commercial sex and her repeated attempts at escape. He stated he had resorted to handcuffing the victim and locking her in a bathroom.
In response, Mr. Sanford bragged that he had “broken” trafficking victims previously and outlined the methods of torture he planned to use: flogging, caging, shock therapy, blaring heavy metal music, whips, and black-out contacts. He explained that while he understood how to cause “excruciating pain,” he would not leave any scars that would affect the victim’s later sale.
“You want someone that when it’s done, if she gets just a smidgen out of line, then you can say, ‘hey, I’m going to call him back,’” he told the agent. “You want her to believe that whenever she leaves her job, if she does not report back to you, she is going back to Bill… I just make sure they understand they never want to experience this again.”
A week later, on Nov. 5, Mr. Sanford and the agent met again in Irving, TX. Mr. Sanford agreed to follow the agent to a nearby location, where a second undercover agent, posing as the victim, sat restrained in the back seat of a vehicle.
When he arrived, Mr. Sanford unloaded a suitcase and bag containing leather restraints, flogs, spurs, and other equipment.
In a subsequent interview with law enforcement, Mr. Sanford said he’d been living the “kink” lifestyle for several years. Asked about the victim he’d offered to break, Mr. Sanford stated he was hard up for money and simply wanted to “help her enjoy life.”
“Tragically, all human trafficking victims endure trauma. But the cruelty this defendant was prepared to inflict is almost unthinkable. We are grateful agents were able to apprehend Mr. Sanford before he could get his hands on a living, breathing young woman,” said U.S. Attorney Chad E. Meacham. “The U.S. Attorney’s Office, in partnership with HSI, will do everything in its power to end the scourge of human trafficking.”
“This sentence is a result of the investigative efforts of the HSI Dallas led, North Texas Trafficking Task Force that was organized to combat the horrific abuses of human trafficking,” said Christopher Miller, acting Special Agent in Charge HSI Dallas. “We will exhaust all resources to stop the predators who seek to exploit vulnerable individuals through this form of modern-day slavery.”
Homeland Security Investigations’ Dallas Field Division conducted the investigation with the assistance of the Dallas County Sheriff’s Office, Dallas County District Attorney’s Office Investigator, the Fort Worth Police Department, the Colleyville Police Department, and the Texas Alcoholic Beverage Commission. Assistant U.S. Attorneys Andrew Briggs and Rebekah Ricketts are prosecuting the case.
Connecticut Man Sentenced for $4 Million Tax FraudRead the Press Release
A Weatogue, Connecticut man who conspired with an IRS officer to con the United States out of $4 million in overdue employment taxes has been sentenced to four years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Carmine Bianco, 49, pleaded guilty in September 2021 to conspiracy to defraud the United States. He was sentenced Tuesday by Senior U.S. District Judge Terry R. Means, who ordered him to pay $4,744,326 in restitution.
According to plea papers, Mr. Bianco admitted that at the suggestion of Sonya Vivar – an IRS revenue officer with whom he was friends – he acquired the assets of three businesses that were delinquent on their employment taxes, including a restaurant, an emergency services medical company, and a rehabilitation center.
In contracts with the business owners, Mr. Bianco pledged to resolve the businesses’ tax liabilities. He did not. Instead, he transferred their assets into newly formed business entities, then continued to operate the businesses under different names without paying the delinquent taxes.
Meanwhile, Ms. Vivar made sure the businesses’ tax cases were assigned to her and used her position to ensure that Bianco’s companies would not have to pay the taxes owed.
Eventually, however, the rehabilitation center case was transferred to another revenue officer, who suspected fraud and referred the case to the U.S. Treasury Inspector General for Tax Administration and IRS – Criminal Investigations.
When she learned the case had been referred, Ms. Vivar made entries into IRS’s records system indicating Mr. Bianco was not responsible for paying employment taxes to the IRS. She then attempted to conceal her relationship with Mr. Bianco from federal investigators.
Ms. Vivar pleaded guilty in November 2020 to corrupt endeavor to obstruct or impede the due administration of internal revenue laws and was sentenced in July 2021 to three years in federal prison.
At Friday’s sentencing hearing, the judge found that due to the defendants’ crimes, the IRS lost the opportunity to collect more than $4 million in taxes and ordered restitution.
IRS – Criminal Investigations conducted the investigation. Assistant U.S. Attorneys Jay Weimer and Rob Boudreau prosecuted the case.
Man Sentenced to Four Years for Machinegun CrimeRead the Press Release
A Dallas man who sold at least nine Glock “switches” – devices that convert ordinary semiautomatic pistols into fully automatic machineguns – was sentenced yesterday to four years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Martin Aviña, 34, pleaded guilty in July 2021 to conspiracy to possess unregistered firearms and possession of unregistered firearms. He was sentenced on Monday by U.S. District Judge David C. Godbey, who noted that selling Glock switches into the community was extremely dangerous.
According to plea papers, Mr. Aviña admitted he possessed – and later delivered for sale – at least nine Glock switches, which 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. A pistol equipped with a conversion device (also called an “auto sear”) can fire up to 1200 rounds per minute, a faster rate of fire than the standard M-4 machinegun issued to U.S. military service members.
Glock switches have been linked to gun violence across the country, including the murder of a Houston police officer last fall.
According to court filings, Mr. Aviña and his coconspirators, brothers José Bermudez and Victor Bermudez, sold 20 Glock switches to an undercover agent in four separate transactions. The switches were advertised for sale on Snapchat and sold for up to $900 apiece.
José and Victor Bermudez, who each pleaded guilty to conspiracy to possess unregistered firearms and possession of unregistered firearms, are awaiting sentencing.
“Conversion switches pose a grave threat to public safety,” said U.S. Attorney Chad Meacham. “Quick and easy to install, these devices turn everyday pistols into highly lethal machineguns. While we respect law-abiding citizens’ right to bear firearms, we cannot allow sears to proliferate on the streets of Dallas.”
“Mr. Avina knowingly put machine guns all over the streets of our Dallas neighborhoods. By utilizing social media, these defendants were able to advance their criminal enterprise and put the lives of others at risk. ATF is relentless in its pursuit to investigate and arrest all those involved in the illegal sales of these devices,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation with the help of the Dallas Police Department. Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.
Reagor Dykes Owner Sentenced to 14 Years in Federal PrisonRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor was sentenced today to 14 years in federal prison for lying to a bank about his company's prospects, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In October 2021, a federal jury found Bart Wade Reagor, 55, guilty of making false statements to a bank insured by the FDIC. Mr. Reagor was sentenced today by U.S. District Judge Matthew J. Kacsmaryk, who ordered him to pay $9,378,817.28 in restitution.
At his sentencing hearing, prosecutors introduced into evidence videos of Mr. Reagor berating his employees for not hitting their sales targets.
“You gotta want to win more than you want to live. I do. I [expletive] die to win. I want to win every [expletive] day. Every [expletive] day, every [expletive] deal,” he says in one meeting. (Clip here.)
“Some of you weren’t there because you didn’t sell 20 units… Boo [expletive] hoo. Cry your way to the weak zone. Cry your way to the loser zone. How many times have ya’ll head me crying? I can’t be crying because I got to take care of a lot of [expletive] crybabies... Somebody’s got to be strong, somebody’s got to be consistent, and somebody’s got to be a [expletive] leader. I chose me,” he said in another “Come on up to the front, come on up to the beast feast, come on up to the millionaire zone, come on up to the jet-flying, private jet-owning, gator-wearing, Rolex-wearing club. Come on up! It’s a choice you gotta make! Or you can cry your way to sleep with all the other [expletive] losers.” (Clip here.)
According to evidence presented at trial, in 2017, Mr. Reagor told International Bank of Commerce (IBC) that the auto group was experiencing tremendous growth and expected to go public. He claimed the company needed a cash infusion to sustain its upward trajectory and maintain a cash cushion for each of the dealerships to operate.
Relying on that information, IBC granted Reagor Dykes a $10 million working capital loan, which was distributed in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.
Instead of investing all of the money into the business as he’d said he would, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank – $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money. At trial, Reagor Dykes’ CFO, Shane Smith, testified that Mr. Reagor and his partner, Rick Dykes, routinely drew money out of the business. Over a 10-year-period, Mr. Smith estimated, the pair withdrew more than $25 million.
In videos introduced at sentencing, Mr. Reagor told employees that anyone bringing home a five-digit salary is “broke as [expletive]” and living “a chump life.”
“Don’t have any skeletons. See, I don’t have any -- and if I had any, I already forgot ‘em. I got a selective memory. I remember what I [expletive] want to remember,” he told his employees. “And everything else doesn’t [expletive] matter.” (Clip here.)
Fifteen of Mr. Reagor’s employees previously pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony
“To Bart Reagor, anyone who isn’t a millionaire is a chump. And Mr. Reagor couldn’t face being a chump. So, instead of doing his best to grow his business honestly, he padded his personal bank account by lying to a federally-insured bank. I imagine he will spend the next 14 years behind bars regretting that decision,” said U.S. Attorney Chad E. Meacham. “The Justice Department will not tolerate abuse of our nation’s financial institutions.”
“Financial crimes can destroy businesses which in turn causes irreparable damage to our economy. Mr. Reagor’s sentence sends a clear message to any criminal who uses corporate fraud for their own personal gain,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI and our law enforcement partners will not tolerate this behavior. We will vigorously pursue anyone that uses their executive position to defraud a lending institution, investors, or the public.”
The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch prosecuted the case.
Founders of Crypto ICO Sentenced to Combined 8 Years in Prison for Tax Evasion After Raising $24 Million from InvestorsRead the Press Release
The owners of a cryptocurrency company have been sentenced to a combined 8 years in federal prison for tax evasion, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 61, and Samuel Mendez, 65, were charged with tax evasion in August 2021. Mr. Bise pleaded guilty on Sept. 9, 2021 and was sentenced on March 7, 2022 to 50 months in federal prison; Mr. Mendez pleaded guilty on October 12, 2021 and was sentenced this afternoon to 50 months in prison. U.S. District Judge Jane J. Boyle ordered the men jointly and severally liable for $1.6 million apiece.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
“Crypto actors are required to pay their fair share of taxes, just like everyone else,” said U.S. Attorney Chad Meacham. “Not only did these defendants shirk their tax obligations, they lied to investors and made off with their millions. Anyone else contemplating such a scheme should know that the Justice Department and its law enforcement partners have a sharp eye on the cryptocurrency space, and we will not let criminal behavior slide.”
“These criminals committed this scheme to thoroughly deceive and defraud stakeholders and the taxpaying public by cheating cryptocurrency investors,” said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office. “The IRS-Criminal Investigation Dallas Field Office is proud to be part of the team that is bringing them to justice and will continue to pursue those who unjustly enrich themselves by not paying their taxes.”
In marketing materials, the pair promoted the company’s cryptocurrency, Bitqy, as a way for “those individuals who missed out on Bitcoin” to get rich. They held their initial coin offering, or ICO, in 2016. (An ICO is a process in which a company attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase.) In an attempt to legitimize Bitqy tokens – and to avoid scrutiny over selling unregistered securities – the company characterized the cryptocurrency as an “earned gift” that rewarded consumers for certain internet purchases.
A white paper posted on the Bitqyck website promised investors that each Bitqy token came with 1/10th of a share of Bitqyck common stock. Mr. Bise and Mr. Mendez admitted, however, that they never actually distributed shares to token holders nor embedded the shares within the Ethereum Smart Contract. The only shares of common stock Bitqyck issued were to Bise and Mendez, who collectively owned 100% of Bitqyck’s common stock.
About nine months after launching Bitqy, Mr. Bise and Mr. Mendez began marketing another token, BitqyM, arbitrarily priced at $1. They claimed buying the token allowed investors to join “Bitcoin mining operations,” by paying to power a Bitqyck Bitcoin mining facility in Washington state. In reality, Mr. Bise and Mr. Mendez admitted in plea papers, no such mining facility ever existed. Unbeknownst to investors, the defendants contracted with an overseas third-party company in an attempt to mine the Bitcoin they’d promised to investors.
(Bitcoin mining involves solving complex mathematical problems in order to verify transactions on a public ledger, known as the Blockchain. The problems require computing power, which in turn requires a significant amount of electricity.)
Mr. Bise and Mr. Mendez profited from Bitqyck by diverting income from the company for their personal use at their shareholders’ expense. From 2016 to 2018, Mr. Bise and Mr. Mendez raked in roughly $4.68 million and $4.48 million, respectively.
“By misrepresenting unregistered securities to investors who were lured with the appeal of owning shares of interest in a new and exciting marketplace, the defendants took advantage of unsuspecting individuals and defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge of IRS-CI’s Los Angeles Field Office. “Today’s sentencing saw justice served not only on the investors of cryptocurrency, but also on honest, hard-working American taxpayers who choose to pay their fair share of income taxes, rather than enriching themselves by evading their tax-paying responsibilities as both Mr. Bise and Mr. Mendez have done.”
Taxpayers transacting in virtual currency are required by law to report those transactions on their tax returns. For 2016 and 2017, Mr. Bise underreported his income to the IRS, resulting in a tax loss of $371,278. For that same period, Mr. Mendez also underreported his income to the IRS, resulting in a tax loss of $311,155. In 2018, Bitqyck failed to file any corporate tax returns at all despite netting more than $3.5 million from investors. The total tax loss joint and severally to the United States government between Mr. Bise and Mr. Mendez is more than $1.6 million dollars.
The defendants’ guilty pleas came on the heels of a civil settlement with the Securities & Exchange Commission (SEC), in which Bitqyck agreed to pay an $8.3 million penalty to resolve claims that it defrauded investors and operated an unregistered digital asset exchange. As part of that settlement, Mr. Bise and Mr. Mendez agreed to pay disgorgement and penalties of $890,254 and $850,022, respectively.
The Internal Revenue Services’ Criminal Investigations Divisions in Dallas and Los Angeles conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Sodinokibi/REvil Ransomware Defendant Extradited to United States and Arraigned in TexasRead the Press Release
A man charged with conducting ransomware attacks against multiple victims, including the July 2021 attack against Kaseya, made his initial appearance and was arraigned today in the Northern District of Texas.
According to an August 2021 indictment, Yaroslav Vasinskyi, 22, accessed the internal computer networks of several victim companies and deployed Sodinokibi/REvil ransomware to encrypt the data on the computers of victim companies.
“When last year I announced charges against members of the Sodinokibi/REvil ransomware group, I made clear that the Justice Department will spare no resource in identifying and bringing to justice transnational cybercriminals who target the American people,” said Attorney General Merrick B. Garland. “That is exactly what we have done. The United States, alongside our international partners, will continue to swiftly identify, locate, and apprehend alleged cybercriminals, capture their illicit profits, and bring them to justice.”
“Just eight months after committing his alleged ransomware attack on Kaseya from overseas, this defendant has arrived in a Dallas courtroom to face justice,” said Deputy Attorney General Lisa O. Monaco. “When we are attacked, we will work with our partners here and abroad to go after cybercriminals, wherever they may be.”
According to the indictment, Vasinskyi was allegedly responsible for the July 2, 2021, ransomware attack against Kaseya. In the alleged attack against Kaseya, Vasinskyi caused the deployment of malicious Sodinokibi/REvil code throughout a Kaseya product that caused the Kaseya production functionality to deploy REvil ransomware to “endpoints” on Kaseya customer networks. After the remote access to Kaseya endpoints was established, the ransomware was executed on those computers, which resulted in the encryption of data on computers of organizations around the world that used Kaseya software.
Through the deployment of Sodinokibi/REvil ransomware, the defendant allegedly left electronic notes in the form of a text file on the victims’ computers. The notes included a web address leading to an open-source privacy network known as Tor, as well as the link to a publicly accessible website address the victims could visit to recover their files. Upon visiting either website, victims were given a ransom demand and provided a virtual currency address to use to pay the ransom. If a victim paid the ransom, the defendant provided the decryption key and the victim then was able to access their files. If a victim did not pay the ransom, the defendant typically posted the victim’s stolen data or claimed they sold the stolen data to third parties, and victims remained unable to access their files.
Vasinskyi is charged with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. If convicted of all counts, he faces a total penalty of 115 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Vasinskyi, a Ukrainian national with ties to a ransomware group linked to Russia-based actors, was taken into custody in Poland where he remained held by authorities pending proceedings in connection with his requested extradition to the United States, pursuant to the extradition treaty between the United States and the Republic of Poland. Vasinskyi was transported to Dallas by U.S. law enforcement authorities where he arrived on March 3. He made his initial court appearance and was arraigned today in the Northern District of Texas.
The FBI’s Dallas and Jackson Field Offices are leading the investigation. Substantial assistance was provided by the Justice Department’s Office of International Affairs and the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Byron M. Jones of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Texas, the FBI’s Dallas and Jackson Field Offices and the Criminal Division’s Computer Crime and Intellectual Property Section conducted the operation in close cooperation with Europol and Eurojust, which were an integral part of coordination. Investigators and prosecutors from several jurisdictions, including Romania's National Police and the Directorate for Investigating Organised Crime and Terrorism; Canada’s Royal Canadian Mounted Police; France’s Court of Paris and BL2C (anti-cybercrime unit police); the Dutch National Police; Poland’s National Prosecutor’s Office, Border Guard, Internal Security Agency, and Ministry of Justice; and the governments of Norway and Australia provided valuable assistance.
The U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN), the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA); Germany’s Public Prosecutor’s Office Stuttgart and State Office of Criminal Investigation of Baden-Wuerttemberg; Switzerland’s Public Prosecutor’s Office II of the Canton of Zürich and Cantonal Police Zürich; the National Police of Ukraine and the Prosecutor General’s Office of Ukraine; the United Kingdom’s National Crime Agency; the U.S. Secret Service; the Texas Department of Information Resources; BitDefender; McAfee; and Microsoft also provided significant assistance.
For more resources on ransomware prevention and response, visit www.StopRansomware.gov.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Double Homicide Suspect Charged with Drug CrimeRead the Press Release
An Austin man with alleged ties to a double homicide has been charged with a drug crime, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Fernando Molina, 38, was charged via criminal complaint on Feb. 16 and indicted on March 9, charged with conspiracy to possess with intent to distribute a controlled substance.
According to the complaint, the charges stemmed from an investigation into a drug-related double homicide perpetrated in Parker County, Texas on April 11, 2021. Two weeks after the killings, investigators raided the residence of Mr. Molina’s associate, Jerome Thomas Watkins, and seized more than 3,000 fentanyl-laced counterfeit pills, multiple firearms, and roughly 20 cell phones that allegedly contained evidence of fentanyl, cocaine, methamphetamine, and heroin trafficking.
According to the complaint, a search of those phones revealed text message conversations with a drug supplier saved in the phone under the name “Austin.” Investigators eventually traced “Austin’s” multiple phone numbers to Mr. Molina. One of Mr. Molina’s phones was the last device in contact with a homicide victims before his death; another pinged cell towers in close proximity to the crime scene at the time of the homicide, according to the complaint.
Parker County has charged Mr. Molina with conspiracy to commit murder in connection with the double homicide.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Mr. Molina is presumed innocent until proven guilty in a court of law. If convicted, he faces life in federal prison.
Mr. Molina’s associate, Mr. Watkins, was convicted at trial in November 2021 of conspiracy to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl, possession with intent to distribute fentanyl, and being a felon in possession of a firearm. He is set to be sentenced later this month.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency, the Parker County Sheriff’s Office, and the Pflugerville Police Department’s Street Crimes Unit conducted the investigation, which was classified a HIDTA (High Intensity Drug Trafficking Area) operation. Assistant U.S. Attorney Shawn Smith is prosecuting the case.
Romanian Extradited to the United States, Charged with Selling Stolen Credit Card Information Obtained via MalwareRead the Press Release
A Romanian hacker has been charged with selling millions of stolen credit card numbers obtained through the use of malware, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Sorin Becheru, a 34-year-old Romanian citizen living in Bucharest, was charged in March 2021 with conspiracy to commit fraud in connection with access devices. Mr. Becheru was arrested by Romanian authorities on Jan. 1, 2022 based on a request from the United States and in accordance with the bilateral extradition treaty between the United States and Romania. On March 3, 2022, FBI agents flew Mr. Becheru from Bucharest to Dallas. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on March 4.
“Malware is an increasingly insidious threat to U.S. companies and consumers. With just a few keystrokes, sophisticated hackers can compromise millions of accounts,” said U.S. Attorney Chad Meacham. “The Justice Department will not hesitate to pursue cyber criminals, including those who operate abroad. In the meantime, we encourage Americans to take steps to guard their personally identifiable information online.”
“Financially motivated cybercrime is attractive to a wide range of actors and its results can be devastating for affected consumers and businesses,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We will continue our proactive private sector engagement for incident response, mitigation, and prevention, and will seek justice for the millions affected by this type of fraudulent activity.”
According to the indictment, Mr. Becheru and his coconspirators allegedly used point-of-sale memory scraping malware to obtain consumers’ credit card information from victim servers located in the U.S. They then allegedly sold the numbers on darkweb carding forums, including “Vendetta” and “Tony Montana.” Buyers used the stolen credit card numbers to purchase goods and services.
Mr. Becheru – who used various online identities, including “t0r.creep.im,” [email protected], and [email protected] – allegedly possessed and sold credit card information for millions of cards. At one point, he was in possession of information for more than 240,000 credit cards belonging to victims located in the Northern District of Texas and elsewhere.
An indictment is merely an allegation of wrongdoing, not evidence. Mr. Becheru is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to five years in federal prison.
The Federal Bureau of Investigation and the United States Secret Service conducted the investigation in partnership with the Romanian National Police and the Romanian Ministry of Justice’s Directorate for Investigation of Infractions of Organized Crime and Terrorism (DIICOT). The Justice Department’s Office of International Affairs was instrumental in the extradition. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Former Preschool Teacher Sentenced to 20 Years for Child PornographyRead the Press Release
A former preschool teacher was sentenced today to 20 years in prison for purchasing sexually explicit images of children, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Jason Sherod Baldwin, 29, was charged via criminal complaint in July 2020 and indicted less than a month later. He pleaded guilty in August to one count of receipt of child pornography and was sentenced today by U.S. District Judge Jane J. Boyle. He was ordered to report to the Bureau of Prisons on April 6.
In plea papers, Mr. Baldwin, a former teacher at Dallas’ Hockaday School, admitted that he used Kik, an encrypted messaging app popular among teenagers, to purchase links to child pornography from another Kik user. In chats, Mr. Baldwin requested “mainly preteen boy-on-boy vid[eo]s.”
According to court documents, the investigation into Mr. Baldwin began after FBI agents executed a federal search warrant at the home of a convicted sex offender in Philadelphia. A search of the offender’s phone revealed that he routinely used Kik to solicit payment for links child pornography. One of the accounts with which the offender communicated traced back to Mr. Baldwin.
On Oct. 29, Mr. Baldwin messaged the sex offender about purchasing child pornography. The offender shared a link to a “preview” folder and indicated a cost for the complete file set. Mr. Baldwin sent the money through PayPal and received links to the files a few minutes later.
The investigation showed that Mr. Baldwin purchased child pornography from the offender several times over the ensuing months, on Nov. 11 (two videos of minor males), Dec. 8 (a video and more than 100 images), Dec. 18 (two videos), and Jan. 21 (seven videos).
In an interview with law enforcement after he was arrested, Mr. Baldwin admitted that he had used Kik to purchase sexually explicit images of children. He said he had hundreds of sexually explicit images and videos of children stored on his cell phones, and that he had been viewing child porn for approximately eight years.
The Federal Bureau of Investigation’s Dallas Field Office and the Plano Police Department conducted the investigation with the assistance of the Bureau’s Philadelphia Field Office. Assistant U.S. Attorney Nicole Dana prosecuted the case.
Wichita Falls, Texas Drug Dealers Sentenced to Combined 50 YearsRead the Press Release
Three Wichita Falls, TX drug dealers were sentenced to a combined 50 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Nathaniel Collazo, 20, Calvin Cruz, 25, and Annaleigh Trevino, 22, all pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. Mr. Collazo and Mr. Cruz were sentenced to 20 years apiece in federal prison; Ms. Trevino was sentenced to 10 years.
In plea papers, the defendants admitted the conspired to distribute methamphetamine. In general, Mr. Collazo and Mr. Cruz obtained the stimulant, then distributed it to Ms. Trevino and others, who dealt it on the streets.
During a search of the defendants’ residence on June 3, 2021, law enforcement seized nine firearms, approximately eight pounds of methamphetamine, and $28,313 cash.
The Wichita Falls Police Department's Organized Crime Unit conducted the investigation with the assistance of The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division. Assistant U.S. Attorneys Frank Gatto, Laura Montes, and Rob Boudreau prosecuted the case.
Judge Orders Freon Smuggler to Pay $250,000Read the Press Release
A Fort Worth man who smuggled freon into the U.S. was ordered to pay a $250,000 fine, announced U.S. Attorney Chad E. Meacham.
Faiz Abdallahi, 56, pleaded guilty in October 2021 to the improper importation of a class II substance, a felony under the Federal Clean Air Act. He was sentenced Tuesday to three years’ probation by Senior U.S. District Judge Terry R. Means.
According to plea papers, Mr. Abdallahi admitted that he smuggled HCFC-22, also known as R-22 refrigerant gas – an ozone-depleting chemical colloquially called freon – into the U.S. without an authorized permit in 2017.
The U.S. Environmental Protection Agency would later phase out production of R-22, which can no longer be produced or imported as of 2020. Only recovered, recycled, or reclaimed supplies of R-22 are currently available, though consumers are not required to stop using R-22 air conditioners.
Mr. Abdallahi admits he arranged for Chinese R-22 to be delivered to the port of Long Beach California and then transported via rail to the Dallas/Fort Worth area disguised as R32 to avoid seizure by the US Customs and Border Protection. His co-conspirator, 53-year-old Severo Zamora, then re-packaged and sold the R-22 to Heating, Ventilation and Air Conditioning (HVAC) companies in the U.S. (Mr. Zamora pleaded guilty in January 2022 to being an accessory after the fact and was sentenced to six months’ probation.)
“The defendant’s intentional disregard for the environment included the illegal sale of hydrochlorflourocarbon-22 (R-22), a restricted substance which not only damages the ozone layer that protects people from the harmful effects of ultraviolet radiation, but also contributes to climate change,” said Todd “Tony” Adams, Assistant Special Agent in Charge of the EPA’s Southwest Area criminal enforcement program. “EPA and our federal partners continue to hold accountable companies and individuals that place public safety and the environment at risk.”
The investigation was conducted by the U.S. Environmental Protection Agency’s Criminal Investigation Division and Homeland Security Investigations. Assistant U.S. Attorney Douglas Allen prosecuted the case.
U.S. Attorney Seeking Investors Defrauded by United Development FundingRead the Press Release
The United States Attorney’s Office for the Northern District of Texas is searching for investors who may be victims of the conduct committed by United Development Funding (UDF) executives Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, and Jeffrey Brandon Jester, announced U.S. Attorney Chad E. Meacham.
On Jan. 21, 2021, following a five day trial, a jury convicted the defendants of conspiracy to commit wire fraud, conspiracy to commit securities fraud, and eight substantive counts of securities fraud.
At trial, prosecutors proved beyond a reasonable doubt that between January 2011 and December 2015, Mr. Greenlaw and his coconspirators engaged in a scheme to defraud using investment fund entities UDF III, UDF IV, and UDF V.
According to the Crime Victims’ Rights Act, victims – in this case, the roughly 30,000 individuals who invested in UDF III, IV, and V – may be entitled to restitution.
In order to be kept apprised of developments in the case, victims should visit https://www.justice.gov/usao-ndtx/united-states-v-greenlaw-et-al-udf for up-to-date information on sentencing hearings (currently scheduled for May 20, 2022 at 9 a.m. in Fort Worth, Texas before U.S. District Judge Reed O’Connor) and for instructions on how to submit victim impact statements, which may be emailed to [email protected].
Prosecutors are requesting that broker-dealers and financial advisors who offered UDF III, IV, and V to their clients notify investors of this information as well.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Tiffany H. Eggers (NDTX Criminal Chief), Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Indicted Man Charged with Firearm ‘Lie and Try’Read the Press Release
A Dallas man has been charged with lying during two attempted firearms purchases, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Steven Royal, 29, was indicted this week on two counts of attempted acquisition of firearm from a licensed dealer by false statement, colloquially known as “lie and try.”
According to the indictment, Mr. Royal lied during attempted firearm purchases at pawn shops in Dallas and Waxahachie, Texas.
On ATF Form 4473, he stated that he was not under indictment for any felony. In fact, he was facing charges of aggravated assault of a family member with a deadly weapon and sexual assault of a child in Texas. Those cases are pending trial.
Neither purchase – one a Taurus .22 caliber pistol, the other a Rough Rider .22 caliber revolver – went through.
“Whether or not Mr. Royal physically possessed the firearm was inconsequential here. He knew he wasn’t allowed to possess firearms, however allegedly tried the system anyways. That system worked as designed and prevented the illegal purchase. ATF and its law enforcement partners remain committed to keeping firearms out of the hands of those that should not have them,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Royal is presumed innocent until proven guilty in a court of law.
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 Shane Read is prosecuting the case.
Former Angels Communications Director Eric Kay Convicted in Tyler Skaggs Overdose CaseRead the Press Release
An ex-employee of the Los Angeles Angels was convicted today in connection with the 2019 overdose death of Angles pitcher Tyler Skaggs, announced U.S. Attorney for the Northern District of Texas Chad Meacham.
After less than an hour and a half of deliberation, a federal jury found former Angels Communications Director Eric Prescott Kay, 47, guilty of distribution of a controlled substance resulting in death and conspiracy to possess with intent to distribute controlled substances.
According to evidence presented at trial, Mr. Kay distributed the pills that killed Mr. Skaggs.
The investigation began on July 1, 2019, when the Southlake Police Department received a 911 call stating that Mr. Skaggs, then just 27 years old, had been found dead in his hotel room at the Southlake Town Square Hilton. The Tarrant County Medical Examiner’s office later determined that Mr. Skaggs had a mixture of ethanol, fentanyl, and oxycodone in his system at the time of his death..
Inside Mr. Skaggs’s hotel room, investigators discovered a number of pills, including a single blue pill with the markings M/30. An analysis of the pill – which closely resembled a 30-milligram oxycodone tablet – revealed it had been laced with fentanyl, a powerful synthetic opiate.
In an initial interview with law enforcement, Mr. Kay denied knowing whether Mr. Skaggs was a drug user. He claimed the last time he’d seen Mr. Skaggs was at hotel check-in on June 30. However, a search of Mr. Skaggs’s phone revealed text messages from June 30 suggesting that he had asked Mr. Kay to stop by his room with pills late that evening. Investigators later learned that, contrary to what he’d told law enforcement the day Mr. Skaggs’s body was discovered, Mr. Kay had admitted to a colleague that he had, in fact, visited Mr. Skaggs’s room the night of his death.
In the course of their investigation, the Drug Enforcement Administration determined that Mr. Kay allegedly regularly dealt the blue M/30 pills – dubbed “blue boys” – to Mr. Skaggs and to others, dolling out the pills at the stadium where they worked.
Several former Angels players, including Matt Harvey, C.J. Cron, Mike Morin, and Cameron Bedrosian testified at trial that Eric Kay distributed blue 30 milligram oxycodone pills to them as well. They further testified that he was the only source of these pills and would conduct transactions in the Angels Stadium.
“This case is a sobering reminder: Fentanyl kills. Anyone who deals fentanyl — whether on the streets or out of a world-famous baseball stadium — puts his or her buyers at risk,” said U.S. Attorney Chad Meacham. “No one is immune from this deadly drug. A beloved pitcher, Tyler Skaggs was struck down in the midst of an ascendant career. The Justice Department is proud to hold his dealer accountable for his family and friends’ unimaginable loss.”
“Unfortunately, this guilty verdict will not bring Mr. Skaggs back or take away the suffering his family and friends have endured since 2019. What it does do; however, is affirm that justice prevails and drug dealers and enablers, like Mr. Kay, will be held accountable for their reckless actions,” said Eduardo A. Chávez, Special Agent in Charge of DEA Fort Worth. “DEA will continue to aggressively investigate the distribution of diverted and counterfeit prescription drugs in our communities. The memories of those lives lost to drug overdose must not be in vain.” -
Mr. Kay now faces between 20 years and life in federal prison. His sentencing has been set for June 28, 2022. Following the reading of the verdict, the defendant was immediately remanded into the custody of the United States Marshal Service.
The Drug Enforcement Administration’s Fort Worth Field Division and the Southlake Police Department conducted the investigation with the assistance of the Tarrant County District Attorney’s Office, the Federal Bureau of Investigation, the United States Secret Service, and the Tarrant County Medical Examiner’s Office. Assistant U.S. Attorneys Lindsey Beran, Errin Martin, and Joe Lo Galbo are prosecuting the case with the help of Assistant U.S. Attorney Jon Bradshaw. Senior U.S. District Judge Terry R. Means presided over the trial.
CORRECTION: An earlier version of this release put Mr. Kay's age at 45. He was 45 when he was first charged, but was 47 when he was convicted.
Big Lake Gas Ordered to Pay $3 Million FineRead the Press Release
A west Texas gas plant has been ordered to pay a $3 million criminal fine, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Big Lake Gas Plant L.P., a subsidiary of West Texas Gas, Inc., pleaded guilty in September 2021 to one count of negligent endangerment and one count of violating the Clean Air Act. The company, represented by counsel, was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
In plea papers, the company admitted that in April 2018, the plant negligently released approximately 525 pounds of hydrogen sulfide into the ambient air. (Hydrogen sulfide is a toxic gas that can compromise the human nervous system and respiratory tract and can cause life-threatening health effects if not handled properly.)
One employee, identified in court documents by the initials C.T., died as a result of exposure sustained while working at the plant. Another employee, identified by the initials G.T., was injured while trying to assist C.T.
The company further admitted that it knowingly failed to properly update its risk management plan following the incident, an update required by law.
“Big Lake’s flagrant disregard of federal clean air regulations had calamitous consequences,” said U.S. Attorney Chad Meacham. “Our prayers are with the family of the employee killed in the 2018 hydrogen sulfide incident. We hope today’s sentencing brings them a measure of peace.”
“The defendant’s willful and knowing disregard for federal safety regulations and industry practices placed both workers and the public at grave risk, resulting in a tragic and preventable fatality and release of dangerous gasses.” said Todd “Tony” Adams, Assistant Special Agent-in-Charge of the EPA’s Southwest Office criminal enforcement program. “EPA and its state partners continue to hold accountable companies that place workers, local communities, and the environment at risk.”
In a related civil case, five subsidiaries of Big Lake’s parent company, West Texas Gas, agreed to pay more than $3 million in civil penalties and to spend up to $5 million on compliance measures in order to resolve claims that it violated federal Clean Air Act chemical accident prevention requirements at plants in Texas and New Mexico.
Assistant U.S. Attorney Sean Taylor prosecuted the criminal case against Big Lake. Assistant U.S. Attorney Ann Haag handled the civil case against West Texas Gas in partnership with the Justice Department’s Environment and Natural Resources Division. The Environmental Protection Agency’s criminal enforcement program investigated with the assistance of the Texas Commission on Environmental Quality's Environmental Crimes Unit and the Federal Bureau of Investigation.
Ten Indicted for Healthcare KickbacksRead the Press Release
Ten people, including two medical doctors, have been indicted in a $300 million healthcare fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The defendants – who stand accused of accused of conspiracy to commit healthcare fraud, conspiracy to pay and receive healthcare kickbacks, offering or paying illegal kickbacks, and soliciting or receiving illegal kickbacks – were charged in a 26-count indictment filed Wednesday afternoon.
“Anti-kickback laws are designed to ensure that financial considerations do not cloud physicians’ judgement,” said U.S. Attorney Chad Meacham. “The Justice Department is determined to prosecute those flouting our nation’s healthcare fraud laws. Patients – and taxpayers – deserve rigorous enforcement.”
“Illegal kickback schemes corrupt the healthcare system. They cause billions of dollars in losses each year, generate business for dishonest service providers and erode trust in our health care system,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “The FBI will continue to work with our law enforcement partners to expose fraud and protect the public from illegal schemes.”
According to the indictment, the founders of several lab companies, including Unified Laboratory Services, Spectrum Diagnostic Laboratory, and Reliable Labs LLC, allegedly paid kickbacks to induce medical professionals to order medically unnecessary lab tests, which they then billed to Medicare and other federal healthcare programs.
The medical professionals -- including internal medicine specialist Eduardo Canova, family medicine practitioner Jose Maldonado, and nurse practitioner Keith Wichinski – allegedly accepted the bribes and ordered millions of dollars’ worth of tests.
Meanwhile, Unified, Spectrum, and Reliable disguised the kickbacks as legitimate business transactions, including as medical advisor agreement payments, salary offsets, lease payments, and marketing commissions.
The labs, through marketers, allegedly paid doctors hundreds of thousands of dollars for “advisory services” which were never performed in return for lab test referrals. They also allegedly paid portions of the doctors’ staff’s salaries and a portion of their office leases, contingent on the number of lab tests they referred each month. In some instances, lab marketers even made direct payments to the provider’s spouse. (When the labs threatened one provider that payments would cease if he didn’t refer more tests, he immediately increased his lab referrals, averaging approximately 20 to 30 referrals per day.)
Knowing they could disguise additional kickbacks using a provider-ownership model, the founder of Spectrum and Unified, Jeffrey Madison, convinced the co-founders of Reliable, Biby Kurian and Abraham Phillips, to convert Reliable into a physician-owned lab. Reliable offered physicians ownership opportunities only if those physicians referred an adequate number of lab tests. In some cases, they made advance disbursement payment to physicians in an effort to appease the physician and ensure he would not send samples to other labs.
As a result of these kickbacks, laboratories controlled by the defendants were able to submit more than $300 million in billing to federal government healthcare programs. Between 2015 and 2018, Dr. Maldonado alone received more than $400,000 in kickbacks for ordering more than $4 million worth of lab tests and Dr. Canova received more than $300,000 in kickbacks for ordering more than $12 million worth of lab tests.
Defendants indicted are:
• Jeffrey Paul Madison, 56, founder of Unified Laboratory Services and Spectrum Diagnostic Laboratory
• Mark Christopher Boggess, 49, chief operating officer for Spectrum and Unified
• Biby Ancy Kurian, 49, co-founder of Reliable Labs, LLC
• Abraham Phillips, 50, co-founder of Reliable Labs, LLC
• Dr. Jose Roel Maldonado, 48, family medicine doctor based in Laredo
• Dr. Eduardo Carlos Canova, 44, internal medicine specialist based in Laredo
• Keith Allen Wichinski, 50, board-certified nurse practitioner based in San Antonio
• David Michael Lizcano, 56, ]owner of DCLH, a marketing firm engaged by Unified, Spectrum, and Reliable
• Laura Ortiz, 58, sister of David Lizcano and employee at his marketing firm
• Juan David Rojas, 34, owner of Rojas & Associates, another marketing firm engaged by Unified, Spectrum, and Reliable
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to 55 years or more in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health and Human Services’ Office of Investigations, the Defense Criminal Investigative Service, and the Veterans Affairs’ Office of Inspector General conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Woman Indicted for Serial Bank RobberyRead the Press Release
A Dallas woman has been indicted for committing a string of bank robberies, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Patricia Maldonado, 34, was indicted last week on three counts of bank robbery. At a detention hearing, U.S. Magistrate Judge Renee Harris Toliver ordered her detained pending her trial, which is set for April 11.
The indictment alleges Ms. Maldonado robbed at least three Dallas banks in the fall of 2019: Comerica Bank on Fort Worth Avenue, Chase Bank on Mockingbird Lane, and Chase Bank on Coit Road.
She was eventually identified by a concerned citizen who recognized her face in surveillance images included in a news release, according to a criminal complaint filed in January.
Per the complaint, Ms. Maldonado, who always wore a baseball cap of some sort, generally entered the banks, handed the tellers a note demanding money and stating she had a gun, and fled on foot with the cash. On at least one occasion, she was caught on camera hopping into a silver Jeep Patriot parked at a nearby gas station.
Following the concerned citizen’s identification of Ms. Maldonado, law enforcement conducted an analysis of her social media presence, noting the resemblance between her and the suspect. On her Facebook page, they found a photo of her wearing a sweatshirt identical to one worn by the suspect in the Comerica robbery. On her sister’s Facebook page, they found multiple photos of her posing beside her sister’s silver Jeep Patriot.
On Jan. 29, officers arrested Ms. Maldonado at her place of employment. After being advised of her Miranda rights, Ms. Maldonado positively identified herself in surveillance photos from all the robberies.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Ms. Maldonado is presumed innocent until proven guilty in a court of law.
If convicted, she faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Abe McGlothin is prosecuting the case.
Jennifer Faith Pleads Guilty to Murder for Hire in Husband’s DeathRead the Press Release
Jennifer Lynne Faith, the Oak Cliff woman who convinced her boyfriend to shoot her husband to death, pleaded guilty on Monday to orchestrating the murder, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In February 2021, prosecutors charged Ms. Faith, 49, with obstruction of justice. In September 2021, they added a charge of use of interstate commerce in the commission of murder-for-hire, an offense that carries a potential death sentence. Ms. Faith pleaded guilty to the murder-for-hire charge before U.S. District Judge Jane J. Boyle on Monday morning. In return for her plea, prosecutors agreed to drop the obstruction charge and to recommend a sentence of life imprisonment. Sentencing will ultimately be at the discretion of the judge.
“Jennifer Faith’s cold-blooded plot to murder her husband was made all the more heinous by the way she behaved after his death. Even as she wept for her late husband on TV, Ms. Faith was corresponding with his murderer, plotting about how to cover up their crime,” said U.S. Attorney Chad Meacham. “The U.S. Attorney’s Office, ATF, DPD, and our law enforcement partners remain committed to getting justice for Jamie. We are proud to hold Ms. Faith accountable for her crimes, and look forward to proving our case against her boyfriend, Mr. Lopez, in court. Truth will prevail in the end.”
“Lies, deceit and ultimately the murder of a loving spouse. After attempting to manipulate family, friends and caring citizens, Mrs. Faith has now admitted to her heinous acts. I could not be prouder of the work of all those involved in this investigation, specifically, the Dallas Police Department Homicide Unit, the United States Attorney’s Office, and ATF Special Agents. What’s done in the dark will always come to light,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to plea papers, Ms. Faith admitted that her boyfriend, Darrin Ruben Lopez, 49, gunned down her husband, American Airlines technology director Jamie Faith, on Oct. 9, 2020 in front of his home in Oak Cliff. (Mr. Lopez has been charged by the state with murder and by the feds with a gun crime. He has pleaded not guilty to both charges. Like all defendants, he is presumed innocent until proven guilty in a court of law.)
Ms. Faith admitted that she knew Mr. Lopez – whom she called her “one and only love” – had suffered a traumatic brain injury while serving in the U.S. Army in Iraq, leaving him disabled. Both before and after the murder, she sent Mr. Lopez money and gifts, and even provided him with two credit cards which she paid off using the proceeds of a “Support Jennifer Faith” GoFundMe fundraiser launched in the wake of her husband’s death.
She also admitted that before the murder, she used two phony email accounts to correspond with Mr. Lopez, assuming the identities of her own husband and one of her friends in order to falsely convince Mr. Lopez that her husband was physically and sexually abusing her. (In plea papers, Ms. Faith stipulated that no such abuse ever occurred.) Ms. Faith admitted that she downloaded stock images depicting injuries from the internet and attached them to some of the emails to convince Mr. Lopez that the abuse was actually occurring.
Seven months into her relationship with Mr. Lopez, Ms. Faith exited her home with her husband to walk their dog, she acknowledged in plea papers. One minute into their walk, Mr. Lopez – who allegedly drove from his home in Cumberland Furnace, Tennessee, to the Faiths’ home in Dallas, where he laid in wait at a neighbor’s home – allegedly shot Mr. Faith seven times before fleeing the scene in his black Nissan Titan pickup truck, which had a distinctive “T” decal on the back window.
After she learned that law enforcement was aware of the “T” decal, Ms. Faith appeared on DFW’s ABC affiliate, WFAA, and plead with the public to help investigators locate the decaled truck. Following the interview, Ms. Faith texted Mr. Lopez and encouraged him to remove the sticker from his truck, she admitted.
“I woke up in a bit of a panic… Something is eating away at me telling me you need to take the sticker out of the back window of the truck,” she texted him. “I don’t normally overreact like this… really think you need to get that sticker off ASAP, like today.” Mr. Lopez allegedly removed the sticker the following day.
Meanwhile, approximately one month after her husband’s death, Ms. Faith admitted, she initiated a claim with Metropolitan Life Insurance Company seeking approximately $629,000 in death benefits Mr. Faith had through his employer. She periodically updated Mr. Lopez on the status of the claim. In text messages, the pair discussed using the money to apply for a residence in her name in Tennessee.
In January 2021, shortly after she was asked to come in for questioning by investigators, Ms. Faith reached out to Mr. Lopez to coordinate their cover stories, she admitted in plea papers.
“If asked about you, you are an old friend going through a divorce. We talk every night because I am helping/giving support with the girls,” she texted. “Just in case they pulled phone records and ask.”
“Good idea,” Mr. Lopez responded. “You are doing good.”
ATF agents arrested Mr. Lopez on murder charges in Cumberland Furnace on Jan. 11, 2021. The firearm used to kill Mr. Faith was recovered inside Mr. Lopez’s home.
On Feb. 2, 2021, shortly before she was charged, Ms. Faith contacted a third party and asked that a message be forwarded to Mr. Lopez, who at the time was in custody in Dallas.
“I am with him, will always be with him regardless of whatever has happened. I’ve needed to be cautious because every communication is being monitored,” the message read in part. “Please tell him ASAP I will always be his.”
The Office of the United States Attorney General approved Ms. Faith’s plea agreement, as is customary in cases involving death penalty eligible cases. She is slated to be sentenced on May 26.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department’s Homicide Unit conducted the investigation with the assistance of the ATF’s Nashville Field Office, the Federal Bureau of Investigation’s Dallas Field Office, Homeland Security Investigations, the Tennessee Bureau of Investigation’s Aviation Unit, and the U.S. Attorney’s Office for the Middle District of Tennessee. NDTX Assistant U.S. Attorneys Rick Calvert and Andrew Briggs are prosecuting the case.
Man Sentenced to 25+ Years in Prison for Robbing Cell Phone Store at GunpointRead the Press Release
A 38-year-old man who robbed a cell phone store at gunpoint has been sentenced to more than 25 years in federal prison for robbery, carjacking, and multiple gun crimes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In June, a federal jury convicted Michael Tremaine Schexnayder of one count of interference with commerce by robbery, one count of carjacking, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. He was sentenced on Jan. 25 to 308 months in federal prison by U.S. District Judge Samuel A. Lindsay, who also ordered him to pay $15,658.74 in restitution.
“This defendant menaced innocent citizens with a gun. They will never forget the terror they endured that day,” said U.S. Attorney Chad Meacham. “We hope they will find some solace in knowing Mr. Schexnayder will spend the next quarter century behind bars.”
“Robbery, car jackings, and gun crimes might make for entertaining television shows but they won’t be tolerated on the streets of North Texas. The storybook ending here is that Mr. Schexnayder will have the next thirty years in Federal Prison to write his next script. ATF is grateful to its law enforcement partners who work tirelessly to keep our citizens safe,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to evidence presented at his trial, around 10:45 a.m. on July 16, 2019, Mr. Schexnayder entered a Grand Prairie T-Mobile store, armed with a small black pistol. After milling around for a few moments, he suddenly approached two employees and a customer, pointing his gun in their faces. He demanded they hand over personal possessions – cell phones, watches, cash, and car keys – and then ordered staff members to open the safe in the back of the store.
Terrified, one of the employees, an assistant store manager, explained that the safe was on a time delay, and would not open for a period of several minutes after she input the code. The employee testified that Mr. Schexnayder, who apparently did not believe her, grew agitated, and forced her instead to empty the till into a garbage bag. He then demanded that the same employee surrender her car keys and describe her vehicle, a boxy white Toyota Scion.
With their property in tow, he fled the store.
Employees and customers then barricaded themselves in the back of the store and the assistant manager dialed 911. Within moments of police’s arrival, the assistant manager noticed her vehicle was missing, as was her iPhone.
With the assistant store manager’s permission, officers quickly began tracking her phone, located the vehicle, and gave chase. An officer observed the driver run into a wooded area as the Toyota rolled to a stop. Officers later found Mr. Schexnayder lying in the woods, dressed in the same clothing robbery witnesses had described. A short distance away, they found a small black pistol stashed under a pile of wood.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Lindsey Beran prosecuted the case.
Dallas Man Sentenced to 17+ Years in Prison in $15 Million FraudRead the Press Release
A Dallas man who conned 417 investors out of nearly $15 million was sentenced to 17 ½ years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Rudy Avila, 69, pleaded guilty to wire fraud in June 2021. He was sentenced on Jan. 28 by Chief U.S. District Judge Barbara M.G. Lynn, who also ordered him to pay $14,955,313.00 in restitution.
According to plea papers, Mr. Avila admitted he defrauded investors in seven investment companies: Starwood Asset Management Fund, Commodities Investment Group International, Trading Technologies Group, Trading Ventures Group, The L.I.F.T. Group, Capital Ventures Group, and Ventures Group, LLC, none of which were registered with the United States Securities and Exchange Commission or the Commodities Futures Trading Commission as required by law.
Instead of investing money in U.S. based businesses as he had represented, Mr. Avila regularly wired at least 90% of the investors’ funds to bank accounts belonging to coconspirators in Costa Rica or to make Ponzi payments to other investors.
In order to convince investors that their funds were controlled by U.S. businesses, the defendant registered multiple businesses with the Texas Secretary of State, filed sham annual reports from the businesses, set up U.S. bank accounts for the businesses, and rented office space in DFW.
At Mr. Avila’s sentencing hearing, Judge Lynn read the names of all 417 victims and their loss amounts into the record.
Two of his coconspirators, Eddie Alexander Contreraz and Ivan Aguirre, who both pleaded guilty to conspiracy to commit wire fraud last year, are still awaiting sentencing.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Marcus Busch and Nick Bunch (fmr.) are prosecuting the case.
Texas Biologist Indicted for Wildlife TraffickingRead the Press Release
An associate professor of biology at West Texas A&M University has been indicted for smuggling goods into the United States and violating the Endangered Species Act, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Dr. Richard Kazmaier, 54, allegedly imported protected wildlife items into the country without declaring it or obtaining the required permits.
The Endangered Species Act and federal regulations require importers to declare wildlife, including parts and products, to customs and U.S. Fish and Wildlife Service when it enters the country.
The indictment charges that, between March 2017 and February 2020, Dr. Kazmaier imported wildlife items from around the world into the United States without declaring them. These items included skulls, skeletons and taxidermy mounts.
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty.
The indictment also charges Dr. Kazmaier with importing wildlife items from 14 protected species without obtaining permits, including the Eurasian otter, lynx, caracal, vervet monkey, greater naked-tailed armadillo, and king bird-of-paradise.
An indictment is merely an allegation, not evidence. Like all defendants, Dr. Kazmaier is presumed innocent until proven guilty in a court of law.
If convicted, he faces a maximum of 20 years in prison and a $250,000 fine for the felony smuggling charge. The two Endangered Species Act charges are misdemeanors with a maximum sentence of one year incarceration and a $100,000 fine.
The U.S. Fish and Wildlife Service’s Office of Law Enforcement in Redmond, Washington, conducted the investigation as part of Operation Global Reach, which focused on the trafficking of wildlife from Indonesia to the United States. Assistant U.S. Attorney Anna Bell for the Northern District of Texas and Trial Attorney Ryan Connors of the Justice Department’s Environmental Crimes Section are prosecuting the case.
Twenty Arrested, Charged in Operation Shut Down CornerRead the Press Release
Twenty alleged drug dealers and their associates have been arrested and charged in “Operation Shut Down Corner,” announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The operation – which involved more than 150 agents and officers from the North Texas OCEDTF Strike Force – focused on Hamilton Park, a north Dallas neighborhood that has long been plagued by crime driven by a violent gang known as the Hamilton Park Posse.
During the investigation, DEA agents and their law enforcement partners seized 37 guns, 220 lbs of drugs (including cocaine, fentanyl-laced counterfeit pills, methamphetamine, and marijuana), $420,000 in assets (including U.S. currency, vehicles, and jewelry).
Twenty-one defendants have been charged in two indictments alleging a variety of crimes, including conspiracy to distribute fentanyl, conspiracy to distribute cocaine, maintaining drug involved premises, using cell phones to facilitate the distribution of controlled substances, and possession of firearms in furtherance of drug trafficking crimes. (One defendant remains a fugitive.)
Many of the defendants arrested in Operation Shut Down Corner have extensive criminal histories and have faced charges including aggravated assault, battery, robbery, theft, forgery, drug possession, weapon possession, and terroristic threats.
“This drug trafficking, gun wielding street gang has been terrorizing their neighborhood for far too long,” U.S. Attorney Chad Meacham said at a press conference at the DEA Wednesday. “I hope the residents of Hamilton Park will rest easier tonight knowing that the Justice Department has their backs.”
“As the layers of this investigation began to reveal themselves, we identified a highly organized, poly-drug distribution organization, feeding our streets with cocaine, crack-cocaine, marijuana, methamphetamine, and deadly counterfeit prescription drugs containing fentanyl,” said DEA Special Agent in Charge Eduardo Chavez. “The Hamilton Park area of Dallas was once described to me as a ‘Forgotten Neighborhood.’ That stops now.”
Those charged include:
• Randall Hoskins, aka “Rambo,” charged with conspiracy to possess with intent to distribute controlled substances
• Demetric Watson, charged with conspiracy to possess with intent to distribute controlled substances
• Rosie Bush, aka “Shanta,” charged with conspiracy to possess with intent to distribute controlled substances
• Kemerra Gilbert, charged with conspiracy to possess with intent to distribute controlled substances
• Jerome Brown, charged with conspiracy to possess with intent to distribute controlled substances
• Jimmy Reedy, aka “UM-8033,” charged with unlawful use of a communication facility
• Quientin Titus, aka “QT” or “Quick Trip,” charged with maintaining a drug involved premises and conspiracy to possess with intent to distribute controlled substances
• Devonte Thursby, aka “Wook,” charged with conspiracy to possess with intent to distribute controlled substances and unlawful use of a communication facility
• Jerome Miller, charged with conspiracy to possess with intent to distribute controlled substances
• Brian Williams, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime
• Staecey Logan, charged with two counts of unlawful use of a communication facility
• Kimmy Blanton (fugitive), charged with unlawful use of a communication facility
• Tamara Cashaw, charged with conspiracy to possess with intent to distribute controlled substances and unlawful use of a communication facility
• Damone Dixon, charged with conspiracy to possess with intent to distribute controlled substances
• Michael Gipson, aka “Grip,” charged with conspiracy to possess with intent to distribute controlled substances
• Bridney Fannin, charged with unlawful use of a communication facility
• Reginald Lamar Denson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon
• Jahmear Chance Jackson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon
• Addison Cole, aka “Addy” or “Scat Back,” charged with conspiracy to possess with intent to distribute controlled substances
• Sergei Gharpetian, charged with conspiracy to launder money
• Tigran Mkrtchyan, charged with conspiracy to launder money
Indictments are merely allegations of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants face maximums of up to 40 years in federal prison.
The investigation was led by the North Texas OCDETF Strike Force – which includes the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Field Division, the U.S. Marshals Service, Homeland Security Investigations’ Dallas Field Division, the U.S. Coast Guard, U.S. Secret Service, U.S. Department of the Treasury, Internal Revenue Service, U.S. Postal Service, U.S. Department of Labor Office of the Inspector General – along with the Dallas Police Department. Assistant U.S. Attorney Myria Boehm is prosecuting the case with the assistance of Assistant U.S. Attorney Travis Elder.
The Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative 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. The North Texas OCDETF Strike Force investigates and prosecutes major drug trafficking, money laundering, and other high priority transnational organized crime networks.
Man Who Sold Pistol Used in Synagogue Hostage Crisis Federally ChargedRead the Press Release
The man who sold Malik Faisal Akram the gun he used to kidnap hostages in a Texas synagogue earlier this month has been charged with a federal firearm crime, announced United States Attorney for the Northern District of Texas Chad E. Meacham.
Henry “Michael” Dwight Williams, 32, was charged Tuesday via criminal complaint with being a felon in possession of a firearm. He made his initial appearance before U.S. Magistrate Judge Renée H. Toliver in the Northern District of Texas Wednesday afternoon. A detention hearing has been set for Monday, Jan. 31.
“Federal firearm laws are designed to keep guns from falling into dangerous hands. As a convicted felon, Mr. Williams was prohibited from carrying, acquiring, or selling firearms. Whether or not he knew of his buyer’s nefarious intent is largely irrelevant — felons cannot have guns, period, and the Justice Department is committed to prosecuting those who do,” said U.S. Attorney Chad E. Meacham. “We are grateful to the many officers and agents who sprang into action as soon as the synagogue hostage crisis began, and who worked tirelessly to track the weapon from Mr. Akram to Mr. Williams. The freed hostages, the Beth Israel congregation, and indeed the entire Jewish community deserve that support.”
“The Dallas FBI Field Office and our partners have worked around the clock since January 15, 2022 to determine how Malik Faisal Akram acquired the weapon he used to terrorize worshipers at Colleyville’s Congregation Beth Israel synagogue," said Dallas FBI Special Agent in Charge Matthew DeSarno. "Along with our federal, state and local law enforcement partners we pledge to continue our efforts to protect our communities from violence."
According to the complaint, Mr. Williams – a felon previously convicted of aggravated assault with a deadly weapon and attempted possession of a controlled substance – allegedly sold Mr. Akram a semiautomatic Taurus G2C pistol on Jan. 13. Two days later, on Jan. 15, agents recovered the pistol from Colleyville’s Congregation Beth Israel synagogue, where Mr. Akram had held four individuals hostage for several hours before he was fatally shot by federal law enforcement.
As part of its intensive investigation into the hostage taking, the FBI tied Mr. Williams to Mr. Akram through an analysis of Mr. Akram’s cellphone records, which showed the pair exchanged a series of calls from Jan. 11 through Jan. 13.
When agents first interviewed Mr. Williams on Jan. 16, Mr. Williams stated that he recalled meeting a man with a British accent, but that he could not recall the man’s name. (Mr. Akram was a British citizen.) Agents interviewed the defendant again on Jan. 24, after he was arrested on an outstanding state warrant. After viewing a photo of Mr. Akram, Mr. Williams confirmed he sold Mr. Akram the handgun at an intersection in South Dallas. Analysis of both men’s cellphone records showed that the two phones were in close proximity on Jan. 13.
Mr. Williams allegedly admitted to officers that Mr. Akram told him the gun was going to be used for “intimidation” to get money from someone with an outstanding debt.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Williams is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations’ Dallas Field Division, and the Colleyville Police Department. Assistant U.S. Attorney Joe Magliolo is prosecuting the case with the support of Assistant U.S. Attorneys Errin Martin, Jay Weimer, Alex Lewis, Lindsey Beran, Nicole Dana, and P.J. Meitl, along with Trial Attorneys David Smith and Michael Dittoe of the Justice Department’s National Security Division.
Novus Hospice CEO Sentenced to 13+ Years for Healthcare FraudRead the Press Release
The CEO of a local hospice agency has been sentenced to 13 years and 3 months in federal prison for defrauding Medicare and Medicaid, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bradley J. Harris, the 39-year-old former head of Novus and Optimum Health Services, pleaded guilty last March to conspiracy to commit healthcare fraud and healthcare fraud. He was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn, who ordered him to pay $27,594,875.52 in restitution.
“This defendant systematically lied to federal healthcare programs, dolling out powerful pain medication without the physician oversight that Novus’ patients deserved,” said U.S. Attorney Chad Meacham. “Brad Harris allowed greed to corrupt his judgement, and he will pay dearly for it. The Northern District of Texas will not tolerate healthcare fraud.”
“Mr. Harris’ actions to steal tens of millions of dollars through fraudulent practices will now be answered by both a substantial sentence and restitution. More importantly, today’s sentence is another step in pursuit of justice for the patients and families that were deceived by Novus’ offerings and hospice services,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are proud to continue our work with our state and federal partners to hold those who commit health care fraud accountable, and to seek justice for patients that are harmed in furtherance of fraud schemes.” According to his plea papers, Mr. Harris admitted that from 2012 to 2016, he billed Medicare and Medicaid for hospice services that were not provided, that were not directed by a medical professional, or that were provided to patients who were not actually eligible for hospice care. He further admitted that he used blank, pre-signed controlled substance prescriptions to doll out potent drugs without physician input.
Mr. Harris admitted that two of his coconspirators, Dr. Mark Gibbs and Dr. Laila Hirjee, frequently certified that that his hospice patients faced terminal illnesses without actually examining with the patients in person, as required by Medicare. (A “terminal” patient is one with a life expectancy of six months or less, according to the Department of Health & Human Services.)
The doctors were paid around $150 for each false order they signed.
Mr. Harris also admitted that Dr. Gibbs, Dr. Hirjee, and another physician, Dr. Charles Leach, left him blank controlled substance prescriptions, sometimes a whole pad at a time. This allowed Mr. Harris, an accountant by trade, to “prescribe” Schedule II controlled substances to hospice beneficiaries without the guidance of a medical professional.
In plea papers, Mr. Harris admitted that in summer 2014, he realized he could avoid exceeding Medicare’s aggregate hospice cap by enrolling an influx of first-time hospice patients. So, he negotiated an agreement with a company called Express Medical that allowed him to access potential patient’s confidential medical information in return for using Express Medical for laboratory services and home health visits. His wife and other Novus staff then called on individuals that had at some point been patients of Express Medical to recruit them for Novus hospice services, regardless of whether they were eligible to receive benefits.
When the Center for Medicare & Medicaid Services suspended Novus based upon credible allegations of fraud, Mr. Harris and simply transferred patients from Novus to a new company, “Company A.” Dr. Gibbs became a medical director for the “new” hospice company, which used Novus staff and transferred hospice reimbursements back to Novus, Mr. Harris admitted.
Ten of Mr. Harris’ codefendants, including Dr. Leach, also pleaded guilty. Three more, including Dr. Gibbs and Dr. Hirjee, were found guilty at trial. Dr. Gibbs was sentenced to 13 years in federal prison and ordered to pay $27,978,903 in restitution; Dr. Hirjee was sentenced to 10 years in federal prison and ordered her to pay $16,253,281 in restitution; and Dr. Leach was sentenced to more than five years in federal prison and ordered to pay $10,077,709 in restitution.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max and Marty Basu prosecuted the case with Assistant U.S. Attorneys Stephen Gilstrap, Gail Hayworth, and Brian McKay.
United Development Funding Executives Convicted of FraudRead the Press Release
Four United Development Funding executives have been found guilty of fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After five days of trial and almost 12 hours of deliberation, a federal jury convicted UDF CEO Hollis Morrison Greenlaw, UDF Partnership President Benjamin Lee Wissink, UDF CFO Cara Delin Obert, and UDF Asset Management Director Jeffrey Brandon Jester of ten counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud.
“UDF executives shuffled money from one fund to another without disclosing the comingling to investors or regulators,” said U.S. Attorney Chad Meacham. “The Justice Department takes financial improprieties seriously, and we are proud to hold these defendants accountable for their crimes. After a long battle, justice has been done.”
"These executives conspired to commit multiple fraud schemes in order to mislead investors and the SEC, with multi-million dollar losses," said Matthew DeSarno, Special Agent in Charge of the FBI's Dallas Division. "One of the FBI's goals is to investigate corporate fraud in order to protect market integrity and investor confidence in the U.S. markets. I would like to thank the agents, analysts, and forensic accountants who spent years investigating these allegations, and our partners at the U.S. Attorney's Office who worked to ensure justice in this case."According to evidence presented at trial, the defendants orchestrated a scheme to mislead investors and the SEC about their funds’ performance.
Founded in 2003 and headquartered in Grapevine, UDF utilized a family of five funds – UDF I, II, III, IV, and V – to invest in various residential real estate developers and private homebuilders.
When developers failed to repay money they borrowed from one fund, triggering multi-million dollar shortfalls, the defendants transferred money out of another fund in order to pay distributions to the original fund’s investors, all without disclosing the transfers to the SEC and the investing public.
The defendants now face up to 25 years each in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Tiffany H. Eggers (NDTX Criminal Chief), Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Reagor Dykes CFO Sentenced to 7 Years in Prison for Wire Fraud ConspiracyRead the Press Release
Reagor Dykes Auto Group’s Chief Financial Officer, Shane Andrew Smith, was sentenced today to seven years in federal prison for his role in a $50 million wire fraud conspiracy, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Mr. Smith, 45, pleaded guilty in June 2019 and was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk, who also ordered him to pay $59,590,198.82 in restitution. The defendant will have to report to prison by 2 p.m. on Monday, March 28.
“By the time Mr. Smith was charged in 2019, Reagor Dykes was a cesspool of criminal schemes, from check kiting to dummy flooring,” said U.S. Attorney Chad Meacham. “We are proud of the work we’ve done to hold this defendant – and more than a dozen of his coworkers – accountable for their egregious behavior.”
"As a corporate executive, Mr. Smith meticulously conspired to defraud a lending institution, and the resulting loss to the industry was significant," said Matthew DeSarno, Special Agent in Charge of the FBI's Dallas Division. "One of the FBI's goals is to investigate fraud and protect public and investor confidence in our economy, and we will continue that endeavor with our partners."
The defendant was given credit for testifying in the trial of his former boss, Reagor Dykes owner Bart Reagor, who was convicted in October of making false statements to an FDIC-insured bank. At that trial, Mr. Smith testified that Mr. Reagor and his partner, Rick Dykes, drew roughly $25 million out of the business for personal use, including roughly $3.3 million from a working capital bank loan intended for business use.
Prior to testifying against his Mr. Reagor, Mr. Smith admitted in plea papers to defrauding the auto group’s main lender, Ford Motor Credit Company (FMCC), and concealing the fraud by cross-depositing checks across several banks, a ploy known as check-kiting.
In order to cover ballooning expenses, Mr. Smith admitted, he instructed Reagor Dykes accountants to engage in a practice they dubbed “dummy flooring.”
At his direction, accounting staff dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to FMCC using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale. Instead of re-buying the car, however, Reagor Dykes used the ensuing loan to cover other expenses.
“Whatever it takes, we need to floor anything and everything we can even think of to cover payoffs each day,” Mr. Smith wrote in an email quoted in his factual resume.
To disguise the shortfall from the dummy flooring scheme, Mr. Smith and his employees engaged in check-kiting, artificially inflating the company’s bank account balances by cross-depositing insufficient checks.
Vendor and payroll checks that should have bounced were instead cleared during banks’ float time, the period between the deposit in the recipient account and the deduction from the payer’s account.
“The deposits we do each do [sic] will most likely cover the checks we write each other,” Mr. Smith wrote in an email.
Reagor Dykes also routinely violated a clause in its loan agreements that required them to repay FMCC within seven days of selling the vehicle for which the loan was issued, Mr. Smith admitted.
Rather than cop to the delay, Reagor Dykes accountants created false paperwork, which they referred to as “dummy shucks,” in order to make it appear that the car had been sold more recently.
Mr. Smith is the fifteenth RDAG employee sentenced to more than 37 years combined in federal prison for the dummy flooring and check kiting scheme. Reagor Dykes employees previously sentenced include:
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sheila Miller, an RDAG group controller, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, pleaded guilty to conspiracy to commit wire fraud and was to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Lindsay Williams, and RDAG group accounting manager, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 4 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Brad Fansler, an RDAG group administrative director, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 42 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Ashley Dunn, executive assistant to the CEO, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud was sentenced on 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 2 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Wesley Neel, RDAG Safety & Compliance Manager, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Andrea Kate Phillips, an accounting associate and office manager at Reagor Dykes Ford Store in Plainview, pleaded guilty to misprison of a felony and was sentenced to four years’ probation and ordered to pay $40,254,297.72 in restitution, jointly and severally.
- Steven Reinhart, RDAG Legal Compliance Director, pleaded guilty in February 2021 to misprision of a felony and was sentenced to 6 months in federal prison and ordered to pay $40,254,297.72, jointly and severally.
Bart Reagor, 55, is still awaiting sentencing.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Magistrate Judge Lee Ann Reno presided over the plea. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
Radio Personality Charged with Producing Child PornographyRead the Press Release
A DFW radio DJ has been charged with producing sexually explicit images of a prepubescent child, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Clois Glenn Raborn, an 49-year-old radio personality known for occasional appearances on 97.1’s “The Russ Martin Show,” was charged Wednesday via criminal complaint with production of child pornography. He made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton on Thursday afternoon. A detention hearing has been set for Wednesday morning.
The investigation began in March 2021, when Mr. Raborn’s roommate discovered lewd images of minor children on Mr. Raborn’s laptop.
According to the complaint, law enforcement conducted a forensic analysis of the laptop and found images of an adult male, believed to be Mr. Raborn, allegedly engaging in sexual conduct with young child.
The child’s mother confirmed her daughter’s identity based on images of her face and other items. She also told law enforcement she recognized Mr. Raborn’s hand in some of the images.
She estimated that the child was between four to six years old when the images were taken.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Raborn is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 30 years in federal prison.
The U.S. Secret Service’s Dallas Field Office and the Euless Police Department conducted the investigation. Assistant U.S. Attorney Brandie Wade is prosecuting the case.
Men Who Allegedly Kidnapped 14-Year-Old Charged with Production of Child PornographyRead the Press Release
Two men who allegedly kidnapped a 14-year-old girl off the streets of Dallas have been charged with producing sexually explicit images of the child, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Lukumond Olatunji, 43, and Vincent Thompson, 41, were arrested in Dallas on Wednesday and charged via criminal complaint with production of child pornography and aiding and abetting child pornography. They made their initial appearances in federal court before U.S. Magistrate Judge Irma C. Ramirez this afternoon.
According to the complaint, the defendants pulled up beside the 14-year-old Jane Doe as she was walking home from school in Southwest Dallas on Oct. 23. The child, who was wearing her school uniform at the time of the crime, later told investigators she believed they were going to give her a ride to her grandmother’s house.
Instead, the defendants drove her to an alley, where they allegedly raped her and recorded part of their crimes on Mr. Thompson’s cell phone. They then drove her to a motel, where they rented a room and allegedly raped her again.
Jane Doe was eventually able to escape. As she ran from the hotel, she encountered a woman who drove her to a nearby gas station to call for help. Visibly scared and disoriented when officers arrived, the child was nevertheless able to describe the defendants and their attire to law enforcement.
Officers immediately drove to the motel and detained Mr. Olatunji and Mr. Thompson. In an interview, Mr. Olatunji identified Jane Doe as “the girl that Vincent picked up.” He initially denied sexually assaulting the child, but later admitted to having sexual intercourse with her. Mr. Thompson also identified Jane Doe as “the girl we picked up in South Dallas.” He admitted to engaging in sexual intercourse with the child and to recording her sexual assault on his phone.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Mr. Olatunji and Mr. Thompson are presumed innocent until proven guilty in a court of law.
Homeland Security Investigations’ Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Joe Magliolo and Special Assistant U.S. Attorney Jenna Rudoff are prosecuting the case.
Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
A Texas man was sentenced today to 30 years in prison followed by a lifetime of supervised release for producing images of child sexual abuse. As part of the sentence, the defendant will also pay more than $58,000 in restitution to victims.
Jason Paul White, 42, of Lubbock, pleaded guilty in September 2021 to production of child pornography. According to court documents, in 2009, when White was 29 years old, he persuaded a minor to engage in sexually explicit conduct for the purpose of producing a video. Specifically, White produced a video of himself performing oral sex on the minor, masturbating the minor using a sex device, and then having the minor masturbate White using the same sex device. White also produced child pornography videos of the same minor on approximately six other occasions. As part of his guilty plea, White also admitted to enticing six other minor boys to engage in sexual activity between 2004 (when White was 25) and 2020 (when White was 41). The boys ranged in age from 13 to 17 years old at the time White committed crimes against them.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Chad Meacham for the Northern District of Texas, and Special Agent in Charge Matthew DeSarno of the FBI’s Dallas Field Office made the announcement.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Callie Woolam of the Northern District of Texas are prosecuting the case.
The FBI’s Dallas Field Office, the Lubbock Police Department, and Homeland Security Investigations’ Dallas Field Office investigated the case, with assistance from the Department of Justice’s High Technology Investigative Unit.
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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Lubbock Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
A Lubbock dentist was sentenced today to 30 years in prison for producing images of child sexual abuse, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.
Jason Paul White, 42, pleaded guilty in September 2021 to production of child pornography. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who also ordered him to pay more than $58,000 in restitution.
According to court documents, in 2009, Mr. White (then 29) persuaded a 17-year-old boy to engage in sexually explicit conduct for the purpose of producing a video. He went on to produce child pornography videos of the same child on approximately six other occasions.
As part of his guilty plea, White also admitted to enticing six other minor boys to engage in sexual activity between 2004 (when White was 25) and 2020 (when White was 41). The boys ranged in age from 13 to 17 years old at the time White committed crimes against them.
At Thursday’s hearing, multiple victims testified that White groomed them, plying them with gifts and drugs to make them feel special. The defendant’s perpetual manipulation left victims with shame and trust issues, they said.
The FBI’s Dallas Field Office – Lubbock Resident Agency, the Lubbock Police Department, and Homeland Security Investigations’ Dallas Field Office investigated the case, with assistance from the Department of Justice’s High Technology Investigative Unit. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Callie Woolam of the Northern District of Texas prosecuted 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. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Fort Worth Man Named Coconspirator in Agent’s ‘Secret Probation’ Fraud SchemeRead the Press Release
A Fort Worth man has been named a co-conspirator in retired FBI agent William Stone’s alleged scheme to con a local mother out of more than $700,000 by convincing her she was on “secret probation,” U.S. Attorney for the Northern District of Texas Chad E. Meacham announced today.
Joseph Eventino DeLeon, 63, was charged in a superseding indictment Tuesday with conspiracy to commit wire fraud. He is expected to make his initial appearance in federal court on Wednesday, Dec. 29.
Conspirator William Stone, 62, was first indicted in May for wire fraud, wire fraud conspiracy, false impersonation of a federal officer, and engaging in monetary transactions in property derived from unlawful activity. The superseding indictment, filed on Tuesday, adds Mr. DeLeon as a defendant in the wire fraud conspiracy.
According to the superseding indictment, Mr. DeLeon allegedly conspired with Mr. Stone to convince their victim, a woman identified in court documents as C.T., that she was under “secret probation” for drug crimes in “Judge Anderson’s court in Austin, Texas.”
The pair allegedly told the victim that the fictious federal judge had appointed the two of them to “mentor” and “supervise” C.T. They required her to text them written reports of her daily activities and to compensate them for their supervisory services as well as any expenses they incurred. Over the course of several years, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.
Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.
In order to convince her the probation was real, the defendants allegedly persuaded C.T. that Mr. Stone had the ability to monitor her cell phone communications, stated that they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.
They allegedly urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they allegedly claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her.
An indictment is merely an allegation of criminal conduct, not evidence. Both Mr. DeLeon and Mr. Stone are presumed innocent until proven guilty in a court of law.
If convicted, Mr. DeLeon faces up to 20 years in federal prison; Mr. Stone faces up to 178 years.
The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation with the assistance of the Fort Worth Police Department. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. Assistant U.S. Attorneys Marcus Busch and Katherine Miller are prosecuting the case.
Department of Justice Awards More Than $125 Million in Grants Under the Stop School Violence ActRead the Press Release
The Department of Justice today announced nearly $126 million in funding to advance school safety under the STOP School Violence Act.
The grants, awarded by the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the department’s Office of Community Oriented Policing Services (COPS Office), will help institute safety measures in and around primary and secondary schools, support school violence prevention efforts, provide training to school personnel and students, and implement evidence-based threat assessments.
School Violence Prevention Program (SVVP) awards have been made to several entities in the Northern District of Texas, including:
- Eagle Mountain - Saginaw ISD – $500,000 (Tarrant County)
- Wichita Falls Independent School District – $500,000 (Wichita Falls County)
- Campbell ISD – $139,247 (Hunt County)
- North Richland Hills Police Department – $82,793 (Tarrant County)
- Whiteface CISD – $75,000 (Cochran County)
- May Independent School District – $61,628 (Brown County)
“The Justice Department has no greater responsibility than protecting Americans from harm,” said Attorney General Merrick B. Garland. “Schools must be safe places to learn, and today’s investment of more than $125 million under the STOP School Violence Act will help ensure that they are.”
The Students, Teachers and Officers Preventing School Violence Act of 2018, known as the STOP School Violence Act, gives the Justice Department the authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds through evidence-based school safety programs. It also provides grants to ensure a positive school climate by helping students and teachers recognize, respond quickly to, and help prevent acts of violence.
The 78 BJA annual awards, totaling almost $74 million, are intended to support training and education for school personnel and students on preventing violence against others and themselves, including anti-bullying training and specialized training for school officials to respond to mental health crises. Funds also help develop and implement multidisciplinary threat assessment or intervention teams and design technology solutions such as anonymous reporting systems, hotlines and websites.
The COPS SVVP provides up to 75% of the funding for school safety measures in and around primary and secondary schools. The 153 SVPP awards, totaling almost $52 million, are statutorily obligated to be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; locks, lighting and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security.
The full list of SVPP awards can be found here: https://cops.usdoj.gov/svpp-award. A list of BJA awards, as they are made, can be found on the OJP Grant Awards page.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Man Sentenced to 14 Years for Machine Gun Possession, Drug CrimesRead the Press Release
An Irving man was sentenced today to 14 years in federal prison for possession of multiple unregistered machine gun conversion sears as well as numerous drug crimes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Ramon Navarro III, 23, pleaded guilty in March to four counts of an unregistered firearm and eight counts of distribution of controlled substances. Because the government did not offer Mr. Navarro a plea deal, he pleaded open to the charges against him, with no assurances as to the term of imprisonment prosecutors would recommend to the judge. He was sentenced Monday by U.S. District Judge Sam A Lindsay.
According to court documents, Mr. Navarro, who used the aka “Trae Alvarez,” admitted that he possessed four machine gun conversion sears, three-piece devices designed to convert semiautomatic weapons into machineguns, all lacking serial numbers and of unknown origin. He also possessed six Glock pistols, each with an incorporated conversion sear, transforming the firearms into machine guns in operating condition.
(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.)
None of the firearms were registered to Mr. Navarro in the National Firearms Registration and Transfer Record, he admitted. He also admitted to trafficking in cocaine and heroin.
“This investigation is an example of ATF’s steadfast commitment to working with Dallas Police Department and all our local, state, and federal law enforcement partners in combining resources to combat violent crime, disrupt firearms trafficking, and ultimately create safer communities,” stated Jamey VanVliet, Assistant Special Agent in Charge of the ATF’s Dallas Field Division.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department. Assistant U.S. Attorney Linda Requénez is prosecuting the case with the assistance of Assistant U.S. Attorney Walt Junker.
This case was prosecuted under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.
Chinese Citizen Charged with Massive Anabolic Steroid and Fentanyl Precursor Chemical Distribution SchemeRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas has filed federal charges against one of the world’s largest alleged anabolic steroid producers, U.S. Attorney Chad E. Meacham announced today.
Chuen Fat Yip, a 68-year-old citizen of the People’s Republic of China (PRC) also known as Ye Chuan Fa, was charged in September 2018 with five drug crimes, including conspiracy to possess with intent to distribute anabolic steroids, conspiracy to possess with intent to distribute fentanyl precursor, conspiracy to import anabolic steroids, and manufacturing anabolic steroids and fentanyl precursor with the knowledge that they will be unlawfully imported. The indictment against Yip and two coconspirators was unsealed on March 11, 2021. On Nov. 18, 2021, the U.S. Attorney’s Office obtained a seizure warrant for more than 49.1 bitcoin – currently worth approximately $2.3 million – from a crypto wallet that traced back to Yip.
“We cannot allow foreign nationals to flood the United States with dangerous drugs,” said U.S. Attorney Chad Meacham. “This defendant allegedly made millions manufacturing and distributing anabolic steroids and fentanyl precursors to American customers. The Justice Department will pursue drug defendants to the furthest reaches of the globe if that’s what it takes to stem the tide of the drug epidemic.”
“Transnational criminal organizations seek to threaten our health and safety by importing dangerous drugs and chemicals, such as fentanyl. DEA’s mission to seek justice must be worldwide when combatting this threat,” said DEA Special Agent in Charge, Eduardo A. Chávez. “The YC Group allegedly utilized global logistics for personal gain while profiting from those individuals vulnerable to the dangers of drug abuse. Mr. Yip’s alleged criminal activities have caught up with him and DEA Fort Worth will use every tool, every law enforcement partner, and every community resource to ensure he and his conspirators are held accountable.”
According to court documents, Yip – who is believed to reside in Wuhan City, Hubei Provence, PRC – allegedly owned and operated the Yuancheng (YC) Group, a chemical manufacturing company responsible for producing and distributing approximately $280 million worth of anabolic steroids, including $55 million worth of anabolic steroids shipped to the United States over a five-year period.
The YC Group allegedly advertised the sale of illegal controlled substances at trade shows and on a variety of websites, including sellsteroids.com, steroidsmart.com, and pharmade.com. In October 2015, Yip allegedly attended a trade show in the United States, bringing his company vice president and a sales manager with him. His underlings allegedly met with customers and negotiated transactions involving more than 100 kilograms. During those meetings, they acknowledged the U.S. Drug Enforcement Administration (DEA)’s efforts to stem the flow of anabolic steroids and outlined steps the customers needed to avoid detection.
Following production of the steroids and other controlled substances, the YC Group allegedly shipped the contraband out of Shanghai or Hong Kong to locations around the globe, including 84 foreign counties and all 50 U.S. states. They shipped parcels weighing less than 50 kilograms via commercial air carries, including the U.S. Postal Service, and used cargo vessels to transport shipments weighing more than 50 kilograms. Shipments were typically disguised in packaging intended to resemble other products, such as food.
On one occasion, the YC Group allegedly agreed to ship approximately 24 kilograms of 4-ANPP, a precursor for fentanyl, from the PRC to the United States. The conspirators also allegedly agreed that the precursor would then be smuggled from the United States to Mexico, where it would be combined with other chemicals to produce fentanyl, then smuggled back into the United States, where it would be distributed to dealers and end-users.
The U.S. Department of State is offering a reward of up to $5 million for information leading to the arrest and/or conviction of Chuen Fat Yip, aka “Chuan Fa Ye,” or for information leading to the disruption of financial mechanisms of Yip’s alleged transnational organized crime group, the Yuancheng (YC) Group. If you have information, please contact the DEA at +1-972-591-1326 via text/WhatsApp/Telegram/ Signal, or by email at [email protected]. If in the United States, please contact the local DEA office in your city.
The DEA’s Dallas Field Division - Fort Worth District Office conducted the investigation. Essential support and coordination was provided by the Department of Justice’s multi-agency Special Operations Division in coordination with DEA’s Denver Field Division, Cyber Support Section, and Near East Region, including assigned attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Justice Department’s Office of International Affairs and the Criminal Division’s Money Laundering and Asset Recovery Section’s Digital Currency Initiative provided assistance. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
The Department of Justice announced today that it has awarded more than $17.5 million in grants – including more than $378,000 in the Northern District of Texas – to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core.
Fort Worth’s Safe City Commission, also known as One Safe Place, will handle the Northern District of Texas PSN funds, which will be distributed to police departments and nonprofits that support the PSN mission through enforcement and crime prevention programs.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices. With approval from BJA, the Safe City Commission, the Northern District of Texas’s fiscal agent, will begin the process of making subawards for PSN grant projects.
“I am immensely proud of the Northern District of Texas’ award-winning PSN program, which relies on collaboration between federal, state, and local law enforcement and area nonprofits to reduce violent crime,” said U.S. Attorney Chad E. Meacham. “Our data-driven, compassionate approach ensures that our residents feel safe in their communities. We’re focused not just on locking up criminals, but at getting to the root cause of violence and stopping it. We’re determined to make Dallas, Fort Worth, Lubbock and Amarillo better places to live and work, and we’re hopeful this grant money will help us achieve that goal.”
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime. You can read more about the Northern District of Texas’ PSN program here. For a list of all PSN grantees nationwide, click here.
Heroin Trafficker Who Fled Controlled Delivery Sentenced to 14 YearsRead the Press Release
A heroin trafficker who fled the scene of a controlled delivery has been sentenced to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Frank Alex Juarez, 22, of Terrell, Texas, pleaded guilty in July to possession with intent to distribute heroin. He was sentenced Wednesday by U.S. District Judge Ada Brown.
According to plea papers, Mr. Juarez admitted that he received more than 100 grams of heroin during an controlled delivery managed by the DEA on Sept. 10, 2020.
During the delivery, the defendant became nervous and fled from law enforcement at a high rate of speed.
Later, he delivered the heroin to another person. (This is an ongoing investigation.)
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Mesquite Police Department. Assistant U.S. Attorney George Leal prosecuted the case.
The case stems from 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.
Cartel Associate Convicted of Massive Meth Trafficking OperationRead the Press Release
A major Dallas drug trafficker was convicted at trial of dealing methamphetamine out of his car dealership, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
After four days of trial, a federal jury convicted Marco Antonio Gonzalez, 42, of one count of conspiracy to possess with intent to distribute a controlled substance, two counts of possession with intent to distribute a controlled substance, and one count of possession of a firearm by a convicted felon.
"Today’s conviction is an affirmation of DEA resolve to keep methamphetamines out of our communities, said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “Methamphetamine continues to be a significant threat in North Texas. DEA and all our law enforcement partners will continue to hold those like Mr. Gonzalez accountable for their actions.”
According to evidence presented at trial, Mr. Gonzalez, an associate of the Jalisco New Generation Cartel (CJNG) who called himself “Speedy,” dealt methamphetamine out of Hampton Motors, a car dealership he owned. He and several coconspirators stored large quantities of narcotics at the dealership and used proceeds of drug sales to purchase vehicles in order to disguise the source of the funds.
The defendants used homes in Dallas and DeSoto to serve as laboratories for the recrystallization of methamphetamine, and often carried firearms on those premises. Agents testified at trial that members of the cartel trafficked thousands of kilograms of methamphetamine this way.
During trial, prosecutors discovered that Mr. Gonzalez threatened to kill one of his co-conspirators, who was slated to testify against him. The threatened man went on to testify anyway, saying that Mr. Gonzalez used his dealership as a front for large-scale drug deals.
Marco Gonzalez now faces up to life federal prison. Ten of his co-conspirators entered guilty pleas prior to trial.
The Drug Enforcement Administration’s Dallas Field Division and the Dallas Police Department conducted the investigation with the assistance of the Garland Police Department and the Ellis County Sheriff’s Office. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case. U.S. District Judge Brantley Starr presided over trial.
Amarillo Man Charged with Threatening Jews, Girlfriend Charged with Assaulting Officers During ArrestRead the Press Release
An Amarillo man who threatened to execute three prominent Jewish rabbis has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham. The defendant’s girlfriend, who pointed a gun at federal agents during his arrest, has been charged as well.
Christopher Stephen Brown, 37, was arrested Wednesday, charged via criminal complaint with interstate threatening communications. His girlfriend, Rebekah Jones, 28, was charged via criminal complaint with assaulting a federal officer with a deadly weapon during the arrest. The pair made their initial appearance in federal court before U.S. Magistrate Judge Lee Ann Reno Thursday afternoon.
“Mr. Brown’s anti-Semitic statements were both disgusting and unlawful. The First Amendment may guarantee the right to make hateful remarks, but it does not allow for specific threats of violence against individuals. The circumstances of the defendant’s arrest only reinforce our belief that Mr. Brown poses a serious threat to the community,” said U.S. Attorney Chad Meacham. “We are committed to protecting all of our citizens – especially those who are often persecuted.”
“Mr. Brown allegedly expressed an intent to commit violent acts toward numerous entities including private citizens, law enforcement and Jewish Rabbis associated with Chabad Lubavitch Headquarters,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Threatening statements are a serious criminal activity with consequences, and the FBI and our law enforcement partners will pursue those who pose a threat to the community when those threats intend to instill fear and potentially cause physical harm.”
According to the complaint, on Dec. 2, Mr. Brown allegedly contacted 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 a message sent via their website, Mr. Brown allegedly threatened to kill members of the Beth-Din, a Jewish rabbinical court. The message – which called for death to all Jews – also included a link to a video on Mr. Brown’s YouTube channel, “Dr M Obidiah.” On the channel, Mr. Brown, calling himself Madrikh Obidiah, said the Chabad Lubavitch chairman, vice chairman, and another leader's son must die.
Two days later, on Dec. 4, Mr. Brown called Chabad Lubavitch headquarters in New York and allegedly left two voicemail messages stating that Madrikh Obidiah would “tear out” the rabbis’ eyes and tongues and kill every rabbi he could find. The following day, he called the headquarters again and allegedly threatened to blow the leaders heads off.
On Dec. 8, law enforcement arrived at Mr. Brown’s apartment to arrest him. They activated their emergency lights and used a PA system to order Mr. Brown out of his residence. After approximately one minute, Mr. Brown appeared at the door. He repeatedly refused to obey agents’ commands. Eventually, agents entered the apartment and grabbed Brown, who resisted being placed in handcuffs.
During the struggle, Ms. Jones locked arms with Mr. Brown and tried to pull him into the bedroom. She pointed a gun at an FBI agent, who grabbed the gun and attempted to point it in a safe direction. While wrestling with both Mr. Brown and Ms. Jones, the agent was eventually able to free the gun and fling it onto the floor.
The pair was subdued without injury.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Brown and Ms. Jones are presumed innocent until proven guilty.
If convicted, Mr. Brown faces up to 5 years in federal prison. Ms. Jones faces up to 20 years.
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 is prosecuting the case.
Lubbock Man Charged with Threatening to Kill Ex-WifeRead the Press Release
A Lubbock man who threatened to kill his ex-wife has been federally charged, announced U.S. Attorney Chad E. Meacham.
Gene Garcia Solis, 48, was charged last Friday via criminal complaint with interstate threatening communications. He had his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr. on Monday, Dec. 6, at which point the case against him was unsealed.
According to court documents, a Lubbock Police Officer contacted Mr. Solis on Nov. 24, 2021 to check on his welfare. Mr. Solis was distraught and allegedly told the officer he planned to kill his ex-wife and anyone who tried to stop him and then commit suicide.
Fearing for his ex-wife’s safety, officers set up surveillance at her residence.
At around 10:30 p.m., Mr. Solis allegedly drove by the residence. When officers attempted to stop his car, he fled. Nearly three hours later, law enforcement spotted the defendant in Hale Center, Texas, and once again attempted to stop his car. He attempted to flee, but hit a spike strip and crashed in the parking lot of a Texas National Guard Armory.
Mr. Solis exited the vehicle, fired several rounds from an AR 15-style rifle, and ran inside the Armory.
“Mr. Solis's actions endangered the life of his ex-wife, the law enforcement officers who responded to multiple scenes and the public at-large,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Together with our law enforcement partners, the FBI’s priority is to protect and keep the communities we serve safe from harm.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Solis is presumed innocent until proven guilty in a court of law.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency and the Lubbock Police Department conducted the investigation with the assistance of the Hale County Sheriff’s Department. Assistant U.S. Attorneys Jeff Haag and Callie Woolam are prosecuting the case.
Two Novus Doctors Sentenced to Combined 23 Years in Prison for Healthcare FraudRead the Press Release
Two doctors who helped a local hospice agency scam Medicare were sentenced today to a combined 23 years in prison for healthcare fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
In May, a federal jury found Novus Health Services Medical Directors Dr. Mark E. Gibbs and Dr. Laila Hirjee, along with Novus RN Tammie Little, guilty of conspiracy to commit healthcare fraud and other charges. Today, Chief U.S. District Judge Barbara M.G. Lynn sentenced Dr. Gibbs to 13 years in federal prison and ordered him to pay $27,978,903 in restitution; she sentenced Dr. Hirjee to 10 years in federal prison and ordered her to pay $16,253,281 in restitution. The judge also sentenced Ms. Little to 33 months in federal prison.
According to evidence presented at trial, the defendants helped Novus CEO Bradley Harris defraud Medicare by, among other things, illegally admitting patients who were not appropriate for hospice and submitting materially false claims for hospice services.
Mr. Harris, who pleaded guilty prior to trial, testified against his former employees.
He told the jury that instead of relying on the expertise of licensed medical professions, he and Novus nurses determined which patients would be admitted to or discharged from hospice care, as well as which drugs and dosages they would receive.
They relied upon Novus doctors, including Dr. Gibbs and Dr. Hirjee, to certify that they had examined these patients face-to-face, when no such examinations had occurred, Mr. Harris testified.
Witnesses also testified that Dr. Hirjee and Dr. Gibbs engaged in the prescription of Schedule II controlled substances, such as morphine, hydromorphone, and fentanyl, by pre-signing blank C2 prescriptions and giving those to Brad Harris and others at Novus to let them prescribe controlled substances without any physician oversight.
As Director of Operations Melanie Murphey testified on day five of trial, “I was the doctor.”
Mr. Harris and the nurses used pre-signed prescription pads, prepared by Dr. Gibbs, Dr. Hirjee, and other Novus doctors, to dispense medications like morphine to patients. When Medicare suspended payment to Novus over concerns about billing, Mr. Harris, Dr. Gibbs, and others moved patients and employees to a new hospice company and continued to bill Medicare for hospice services.
In total, Medicare and Medicaid paid the Novus entities approximately $40 million dollars for hospice services before the companies were shut down.
“These doctors allowed Bradley Harris – an accountant with no medical expertise – to dispense controlled substances like candy, with little to no medical oversight,” said U.S. Attorney Chad Meacham. “They claimed to have had hands-on experience with hospice patients, when in fact, they’d entrusted life-or-death medical decisions to untrained businesspeople. We are satisfied to know they will spend the next decade behind bars.”
“The defendants violated their Hippocratic Oath as doctors and instead focused on lining their pockets at the expense of patient safety. This case highlights the importance of thoroughly investigating any complaint of healthcare fraud,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We encourage the public to help us identify, investigate, and prosecute this crime. If you suspect health care fraud, report it to the FBI at tips.fbi.gov, 1-800-CALL-FBI, or contact your health insurance provider.”
Several of their codefendants – Novus CEO Brad Harris, his wife, Novus Vice President of Patient Services Amy Harris, Novus Director of Operations Melanie Murphy, Novus Medical Director Charles Leach, Novus Medical Director Reziuddin Siddique (deceased), Novus Vice President of Marketing Samuel Anderson, Novus Director of Marketing Slade Brown, Novus RN Jessica Love, Novus triage RN Patricia Armstrong, Novus LVN Taryn Stewart, and Ali Rizvi, the owner of a separate physician home visit company – pleaded guilty to various offenses prior to trial. Love was sentenced 102 months, Stuart was sentenced to 96 months, Armstrong was sentenced to 84 months, Dr. Leach was sentenced to 57 months, and Anderson was sentenced to 33 months. The remaining defendants are facing statutory maximums of between two and 14 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max and Marty Basu are prosecuting the case with Assistant U.S. Attorneys Stephen Gilstrap, Gail Hayworth, and Brian McKay.