Northern District of Texas
Press releases recorded for this federal judicial district.
NDTX Round up: May 21-27Read the Press Release
SENTENCING – DIEGO GUTIERREZ PINALES
On May 24, Diego Gutierrez Pinales, 54, was sentenced to 10 years in federal prison for conspiracy to distribute cocaine. Pinales, a drug trafficking organizations source of supply, had 437 contacts via phone with a co-conspirator from December 2017 to March 2018. Based on law enforcement’s investigation, Pinales provided 10 kilograms of cocaine to the co-conspirator for further distribution. On one occasion, Pinales met the co-conspirator at a Dallas residence to sell two kilograms of cocaine for $29,000 each. The DEA conducted the investigation. Assistant U.S. Attorney John Kull prosecuted the case.
GUILTY PLEA – ADAM GRANT ROBINSON
On May 25, Adam Grant Robinson, 40, plead guilty to bank robbery. Between October 2018 and December 2018, Robinson committed 11 bank robberies in Garland, Dallas, Richardson, Plano, Corpus Christi, and Austin. In each of the bank robberies he took money from the bank employees. Robinson now faces up to 20 years in federal prison for his crimes. The FBI conducted the investigation. Assistant U.S. Attorney Shane Read is prosecuting the case.
GUILTY PLEA – ROBERTO ARCHULETA
On May 25, Roberto Antonio Archuleta plead guilty to possession with the intent to distribute Fentanyl. In August 2020, a Texas State Trooper stopped a vehicle traveling near Greenville, Texas. Archuleta was driving with Gilberto Lira as his front-seat passenger. Archuleta consented to the trooper’s search of the vehicle which revealed two gym bags, one which held multiple packages of Fentanyl. During an interview with law enforcement, Archuleta admitted that he had been paid $2,500 to deliver the opioids to Charlotte, North Carolina. Archuleta now faces up to 20 years in federal prison for his crimes. The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
GUILTY PLEA – RICHARD MANSFIELD BEACHEM
On May 27, Richard Mansfield Beachem, 31, plead guilty to carjacking. Beachem stole a Nissan Sentra at gunpoint by threatening to kill the driver of the vehicle if he did not give Beachem the car. As soon as the victim exited the vehicle, Beachem’s accomplice, a juvenile, got into the driver’s seat along with Beachem and they drove away. Beachem now faces up to 15 years in federal prison for his crimes. The ATF conducted the investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
Nurse Practitioner Sentenced to 20 Years, Ordered to Pay More Than $52 Million in RestitutionRead the Press Release
A Waxahachie nurse practitioner was sentenced yesterday to 20 years in federal prison and ordered to repay more than $52 million in restitution for his role in a health care fraud conspiracy, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Trivikram Reddy, 39, pleaded guilty to conspiracy to commit wire fraud in October 2020. He was sentenced on Tuesday by U.S. District Judge Ada Brown.
“Mr. Reddy engaged in a scheme that defrauded Medicare and private insurance providers out of millions of dollars,” said Acting U.S. Attorney Shah. “The Justice Department will continue to aggressively prosecute all types of health care fraud to protect the integrity of our health care system and ensure that criminals are held accountable.”
“Health care fraud affects everyone, it causes billions of dollars in losses each year and erodes trust in our health care system,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “Mr. Reddy’s scheme defrauded multiple companies and put the professional reputation of six doctors in jeopardy all to line his own pockets. Along with our law enforcement partners, the FBI will continue to root out fraud in the health care industry and protect the public from illegal schemes.”
“When nurse practitioner Trivikram Reddy stole the identities of physicians to defraud Medicare and other insurers to enrich himself, he violated the basic trust that the public extends to healthcare professionals,” said Special Agent in Charge Miranda L. Bennett of the HHS-OIG Dallas Regional Office. “Today’s sentence sends a message to corrupt medical professionals that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
According to court documents, Mr. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna.
Mr. Reddy and co-conspirators created false patient bills using the provider numbers of six doctors as the treating physicians on the claims. All the claims were false and at no time did the six doctors provide billable services to any of Mr. Reddy’s medical clinics.
On June 3, 2019, federal agents served a civil investigative demand at one of Mr. Reddy’s medical clinics. When law enforcement arrived at the site, agents found Mr. Reddy’s staff manufacturing medical records. Following the encounter, on June 8, Mr. Reddy closed the clinic and terminated his business entity with the Texas Secretary of State.
On June 13, 2019, Mr. Reddy made the first of multiple wire transfers which, in sum, totaled more than $55 million. A forensic financial analysis directly tied the money to fraudulent health care claims submitted by Mr. Reddy.
Federal agents requested medical records to justify millions of dollars of paid Medicare claims paid between January 2014 and June 2019. Mr. Reddy and his staff spent the next four months manufacturing fake medical records to turn over to authorities.
This case was investigated by the FBI Dallas Field office and Health and Human Services-Office of the Inspector General (HHS-OIG). Assistant U.S. Attorney Donna Strittmatter Max and Special Assistant U.S. Attorney Matt Smid prosecuted the case.
Two Novus Doctors, One Nurse Found Guilty of Healthcare FraudRead the Press Release
Three medical professionals who helped a local hospice agency scam Medicare have been convicted of healthcare fraud, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Monday, 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.
Additionally, the jury found Dr. Gibbs guilty of two counts of healthcare fraud and one count of obstruction of justice, Dr. Hirjee guilty of three counts of healthcare fraud and one Title 21 drug offense, and Ms. Little guilty of three counts of healthcare fraud. (Dr. Gibbs was acquitted of one of the three health care fraud counts brought by the government.)
According to evidence presented at trial, the defendants helped Novus CEO Bradley Harris defraud Medicare by submitting materially false claims for hospice services, providing kickbacks for referrals, violating HIPAA to recruit beneficiaries, and destroying documents to conceal the fraud from Medicare.
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, including Ms. Little, 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 and hydromorphone, 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. Mr. Harris paid also Dr. Gibbs and Dr. Hirjee kickbacks – disguised as medical directory salaries – to induce them to refer patients to his facilities.
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.
“With today’s guilty verdicts, we are one step closer to bringing this sordid case to a close,” said Acting U.S. Attorney Shah. “These medical professionals behaved unconscionably, allowing Mr. Harris – an accountant – to dictate end-of-life care for suffering patients. The Northern District of Texas will not stand for this sort of misconduct.”
Dr. Hirjee now faces up to 60 years in federal prison, Dr. Gibbs faces up to 35 years, and Ms. Little faces up to 40 years.
Twelve 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 Medical Director Syed Aziz, 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. Dr. Aziz has been sentenced to probation, and the remaining defendants are facing 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, Marty Basu, and Chad Meacham are prosecuting the case with Assistant U.S. Attorneys Stephen Gilstrap, Gail Hayworth, and Brian McKay. Chief U.S. District Judge Barbara M.G. Lynn presided over the trial.
Ponzi Scheme Operator Sentenced, Ordered to Pay $13M in RestitutionRead the Press Release
A McKinney man who ran a Ponzi scheme has been sentenced to five years in federal prison and ordered to pay $13 million in restitution to his victims, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Patrick O. Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – pleaded guilty to securities fraud in November 2020. He was sentenced Thursday by U.S. District Judge Jane J. Boyle and taken into custody immediately after the hearing.
In plea papers, Mr. Howard, 49, admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece.
His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.”
However, instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their earnings quarterly out of the investments of later investors, rather than out of the earnings of the fund.
Mr. Howard falsely represented himself as a registered investment advisor and claimed his companies saw 20% annual earnings. Promising that investors could not possibly lose money due to insurance that offset poor performance, the defendant induced at least one investor to turn over his entire retirement savings to the fund.
Two victims testified at his sentencing hearing, including one who told the judge she lost her daughter’s college savings after investing with Mr. Howard.
The Federal Bureau of Investigation’s Dallas Field Office and the U.S. Postal Inspection Service conducted the investigation, with a parallel investigation conducted by the U.S. Securities & Exchange Commission. Assistant U.S. Attorney Andrew Wirmani prosecuted the criminal case.
Man Who Crashed Truck Carrying Undocumented Immigrants After Police Chase Charged with Transportation of Illegal AliensRead the Press Release
An Austin man who crashed a truck full of undocumented immigrants following a high-speed police chase has been federally charged, announced Acting U.S. Attorney Prerak Shah.
Adrian Vargas-Ladinos, 20, was arrested on May 15, charged via criminal complaint with transportation of illegal aliens. He will make his appearance before U.S. Magistrate Judge John R. Parker on May 18.
According to the complaint, a police officer stopped Mr. Vargas-Ladinos for speeding in Sutton County, Texas on May 15. During the stop, the officer called for backup, at which point Mr. Vargas-Ladinos allegedly sped away, leading police on a chase that lasted almost eight minutes.
He crossed several medians before crashing the truck, causing it to roll over with passengers still in both the cab and bed.
Ten of the passengers – including one woman who was rushed to the ICU with head injuries and two men who were hospitalized with serious injures – were identified as citizens of Honduras, Guatemala, and El Salvador in the United States unlawfully. The hospitalized passengers were treated and have been stabilized.
Mr. Vargas-Ladinos initially claimed he was merely helping a few immigrants he had encountered in Eagle Pass, Texas during a visit to a friend. He told investigators he could not recall the friend’s name.
He later admitted, however, that a smuggler offered to pay him $25,000 to transport undocumented immigrants to Austin, Texas. A search of his cell phone allegedly confirmed that he was involved in human smuggling.
Mr. Vargas-Ladinos allegedly told law enforcement that based on directions provided by the smuggler, he drove to an abandoned home in Eagle Pass, honked the horn, and allowed the undocumented immigrants into his truck. He then allegedly drove them around a Border Patrol checkpoint in Eagle Pass.
One of his undocumented passengers told law enforcement that when Mr. Vargas-Ladinos realized he was being pulled over, he told the immigrants that he was going to bail out of the vehicle. Two passengers told law enforcement that they were scared during the police chase.
Mr. Vargas-Ladinos allegedly admitted to law enforcement he felt sorry for the undocumented immigrants who were hurt during the crash, but stated that he told them to run away so that they could get to Austin and he could get paid.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Vargas-Ladinos is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison on the transportation charge. He has also been charged by Sutton County with evading arrest, which carries a penalty of 10 years in state prison.
Homeland Security Investigations and U.S. Customs & Border Protection conducted the investigation with the assistance of the Sonora Police Department and Texas Department of Public Safety. Assistant U.S. Attorney Ryan Redd is prosecuting the case.
U.S. Attorney Presents Law Enforcement “Awards of Excellence”Read the Press Release
On Friday, Acting U.S. Attorney Prerak Shah presented the 2021 United States Attorney’s Awards of Excellence, honoring law enforcement officers and agents who exceed the call of duty to keep their communities safe.
“It’s hard to believe that COVID-19 has been raging here in north Texas for more than 14 months. But while much of the rest of the country sheltered at home, you all continued to risk your health and safety in the pursuit of justice,” Acting. U.S. Attorney Shah said at a socially distanced ceremony at the Belo in Dallas. “You all are invaluable assets to our offices, and true heroes to our communities. You represent the best of the best in law enforcement.”
Awardees worked the following cases:
United States v. Sean DeAndrea Lewis
Federal Bureau of Investigation and United States Marshals Service
This investigation led to the prosecution of aa federal inmate who fabricated a murder-for-hire plot in order to receive potential credit towards his sentence.United States v. John Cooper
Defense Criminal Investigative Service
This investigation revealed a network of illegal kickbacks and a conspiracy to defraud TTRICARE of over $65 million. The leader of the pharmaceutical marketing company was convicted at trial and two of the marketers plead guilty to recruiting more than 2,300 patients, many of whom were on active duty at Fort Hood. More here.United States v. Bo Jack Kelly
Texas Department of Public Safety
This investigation led to the prosecuting of a Shallowater, Texas man for using a variety of social media accounts to coerce a 14-year-old minor into sending him sexually explicit videos of herself.United States v. Cynthia Carrasco
Drug Enforcement Administration with Amarillo Police Department
This investigation led to the prosecution of a drug dealer who sold a fatal dose of heroin killing an Amarillo woman. More here.Operation Double Eagle
Drug Enforcement Administration
This investigation led to the prosecution of cocaine dealers connected to Car Del Noreste and the seizure of more than 55 kilograms of cocaine, 92 kilograms of methamphetamine, and 374 kilograms of marijuana.Forest Park Medical Center
IRS-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Department of Labor Office of Inspector General, Defense Criminal Investigative Service, and U.S. Office of Personnel Management Office of Inspector General
This multi-year investigation resulted in the prosecution of 21 defendants in a $40 million dollar healthcare kickback scheme which caused half-a-billion dollars in tainted claims to be submitted to government and private insurances causing $80 million in losses. More here.United States v. Marcus Anthony Braziel
Bureau of Alcohol, Tobacco, Firearms, & Explosives, Federal Bureau of Investigation, and IRS-Criminal Investigation Division
This investigation led to charges against a Lubbock Man who unlawfully sold the AR-15 style rifle used by the Midland-Odessa mass shooter in August 2019. More here.United States v. Broussard, et al.
Federal Bureau of Investigation
This multi-year investigation resulted in the prosecution of 13 members of a violent criminal enterprise who routinely robbed customers leaving banks. More here.United States v. Jose Linares
Federal Bureau of Investigation
This investigation led to the prosecution of a Honduran man who operated a $2.3 million Ponzi-link scheme. More here.United States v. Jose Daniel Flores
Drug Enforcement Administration
This investigation led to the prosecution members of the Texas Syndicate gang. As a result, 11 defendants plead guilty resulting in a combined 1,114 months in federal prison. More here.United States v. Yaser Said
United States v. Yassein and Islam Said
Federal Bureau of Investigation
This investigation led to the prosecution of the brother and nephew of Yaser Said, FBI’s “10 Most Wanted suspect,” for helping him evade capture for more than 12 years. More here and here.The staff of the United States Attorney’s Office is grateful for law enforcement officers’ sacrifices, dedication, and skill.
The U.S. Attorney and Chief U.S. District Judge Barbara M.G. Lynna also presented the “Administration of Justice” award, recognizing a staff member who consistently provides outstanding support, to Information Technology Specialist Eric Umbarger and the “Barefoot Sanders Prosecutor of the Year” award to Assistant U.S. Attorney Tiffany Eggers, Deputy Chief of NDTX’s National Security & Cyber Division.
NDTX Round up: May 7- 13Read the Press Release
GUILTY PLEA – CARLOS ENREIQUE MEJIA CACERES A.K.A “MACHETE”
On May 11, Carlos Enreique Mejia Caceres, 37, plead guilty to aiding and abetting interference with commerce by robbery and aiding and abetting the using and carrying a firearm during a crime of violence. Mejia Caceres assisted in planning the robbery of a Dallas western wear store which he observed from another location. Following the robbery, Mejia Caceres met with his other co-conspirators and a portion of the proceeds from the robbery. He now faces up to 25 years in federal prison for his crimes. The FBI conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – JOSE ANGEL REYES
On May 11, Jose Angel Reyes, 36, pleaded guilty to conspiracy to distribute a substance containing a detectable amount of cocaine base. Reyes purchased 552.825 grams of cocaine base and 921.375 grants of cocaine over the course of one year for further distribution to his customers. In October 2018, agents arrested Reyes at his residence where they located a loaded 9mm handgun and two cell phones. He now faces up to XX years in federal prison for the crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
GUILTY PLEA – JUSTIN LAJUAN BRITTAIN
On May 11, Justin Lajuan Brittain, 46, pleaded guilty to possession of a firearm by a convicted felon and possession with intent to distribute a controlled substance. Brittain was stopped by Dallas police officers for speeding. When they approached the car, they noticed a marijuana cigarette in the ashtray and a mason jar with additional marijuana. During a search of Brittain’s vehicle, a .380 caliber pistol was recovered between the center console and the driver’s seat. Brittain admitted that he was a felon and knew he was not supposed to possess firearms. He now faces up to 30 years in federal prison for the crimes. The ATF and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney John Boyle prosecuted the case.
GUILTY PLEA – CHRISTOPHER BOWLING
On May 12, Christopher Bowling, 50, pleaded guilty to conspiracy to commit bank fraud. Bowling and his co-conspirators data mined PII from victims from publicly available websites and from the darkweb. He then took out lines of credit using the victims PII. In January 2019, Bowling and other co-conspirators went to a Dallas area retail store to apply for a line of credit using a victim’s PII. In March 2019, Bowling fraudulently applied for a line of credit using a victim’s PII to purchase a Rolex watch and ring. He now faces up to 30 years in federal prison for the crimes. The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Dentists to Pay $3.1 Million to Resolve Allegations They Submitted False Claims for Services Not Provided to Underprivileged ChildrenRead the Press Release
Two North Texas dentists, their dental management companies, and certain affiliated pediatric dental practices have paid the United States $3.1 million to resolve allegations that they defrauded the Texas Medicaid program and violated the False Claims Act by knowingly billing for pediatric dental services that were not rendered or that falsely identified the person who provided the service, announced Acting U.S. Attorney Prerak Shah of the Northern District of Texas.
“These defendants knowingly defrauded Medicaid, a program that provides medical coverage for more than 4 million low-income Texans,” said Acting U.S. Attorney Shah. “If they thought they could get away with this scam by targeting underprivileged populations, they were sorely mistaken.”
Drs. Gunjan Dhir, 43, and Gaurav Puri, also 43, have owned and operated dental clinics and dental management companies throughout Texas since 2009. The clinics serve primarily low-income children enrolled in the Texas Medicaid program; the dental management companies provide management and administrative services to the clinics. After opening their first dental clinic in 2009, Drs. Dhir and Puri rapidly expanded their operation to include 35 dental clinics operating statewide by 2015.
This settlement resolves allegations that between May 30, 2011 and May 30, 2017, Drs. Dhir, Puri, and their affiliated management companies and pediatric dental clinics submitted or caused the submission of false claims for payment to the Texas Medicaid Program for fillings in children that were not actually performed. The settlement also resolves allegations that they submitted or caused the submission of claims using erroneous Medicaid provider numbers misrepresenting the dentists who performed pediatric procedures.
Funded jointly by the states and the federal government, Medicaid is intended to serve low-income families and children. The State of Texas paid for part of the Medicaid claims at issue and will receive approximately half of the government’s share of the settlement amount.
Part of the allegations resolved by this settlement were originally filed under the qui tam, or whistleblower, provisions of the False Claims Act by relators Sandy Puga, Nelda Torres-Brown, and Sonia Cardoso, all former employees of the implicated dental management companies and/or pediatric dental practices, who will receive a fraction of the settlement. (The Act permits private persons with evidence of fraud to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.)
The case was handled for the government by Assistant U.S. Attorneys Kenneth Coffin and Braden Civins on behalf of the Department of Health & Human Services Office of Inspector General and the State of Texas, with assistance from the Texas Attorney General’s Office, Civil Medicaid Fraud Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.Acting U.S. Attorney Shah Recognizes Police WeekRead the Press Release
In honor of National Police Week, Acting U.S. Attorney Prerak Shah recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“The Northern District of Texas partners with more than 300 federal, state, and local law enforcement agencies whose officers and agents routinely risk life and limb to keep our communities safe. This year has presented even more challenges than most,” said Acting U.S. Attorney Prerak Shah. “We can never repay our officers’ myriad sacrifices, but we will always stand behind them. We are proud to back the blue.”In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
San Angelo Tax Preparers Charged with Scamming IRSRead the Press Release
Four San Angelo tax preparers have been charged with submitting fraudulent tax returns to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Wednesday, April 14 2021, a federal grand jury indicted Hugo Cesar Granados, the 60-year-old manager of Columbia Tax Service, his adult daughter, Blanca L. Granados, his adult son, Hugo Alberto Granados, and his employee, Saul Garcia-Soto, on one count each of conspiracy to defraud the United States and several counts each of aiding in the preparation of false documents. Hugo Cesar Granados, Blanca Granados, and Hugo Alberto Granados surrendered themselves to IRS – Criminal Investigations and U.S. Marshals on Thursday afternoon. Saul Garcia-Soto remains a fugitive.
According to the indictment, the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns, Forms 1040, in order to inflate the clients’ tax refunds. As a member of the IRS’ Refund Transfer Program, Columbia Tax Service did not charge the taxpayers anything upfront, but took their preparation fee from the refund before the remainder was issued to the taxpayer. Mr. Granados created a training manual that instructed his employees how to file fraudulent tax returns.
Mr. Granados and his co-conspirators allegedly fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements. They routinely claimed the taxpayer owned a business when no such business existed, claimed unreimbursed employee expenses such as travel and per diem, and claimed business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred.
From 2013 to 2017, the conspirators submitted numerous fraudulent tax returns, resulting in an estimated $18 million in tax losses to the government.
“These defendants brazenly fabricated clients’ financial statements and submitted them to the IRS, resulting in artificially inflated refunds,” said Acting U.S. Attorney Prerak Shah. “Conduct like this is a slap in the face to the many hardworking Americans who pay their taxes dutifully every year. We will not stand for tax fraud, especially by authorized tax preparers.”
“These defendants made a profit by falsifying their client’s tax returns without concern of the repercussions and now face the true costs of their actions in court,” said IRS - CI Acting Special Agent in Charge Jerry Gomez of the Dallas Field Office.
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, Hugo Cesar Granados faces up to 14 years in federal prison; Blanca Granados faces up to 14 years; Hugo Alberto Granados faces up to 17 years; and Saul Garcia-Soto faces up to 20 years.
IRS – Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas is prosecuting the case.
Railroad Inspector Charged with Lying About InspectionsRead the Press Release
A Federal Railroad Administration inspector has been charged with lying on official documents, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Tremelle Sykes, 54, was indicted Tuesday on eight counts of false statements. He will make his initial appearance before U.S. Magistrate Judge David Horan Friday morning.
According to the indictment, Mr. Sykes was employed by the FRA as a Hazardous Materials Safety Inspector assigned to inspect northeast Texas railroads and shippers for compliance with regulations pertaining to the transport of hazardous materials such as ethanol, crude oil, and other toxic or poisonous substances.
On at least eight occasions, Mr. Sykes allegedly falsified inspection reports, claiming to have conducted inspections that never actually occurred. The reports, filed over the course of six months in early 2019, covered railyard companies in Dallas, Fort Worth, Garland, Cleburne, Gunter, and Saginaw.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Sykes is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 40 years in federal prison, five years per count.
The Department of Transportation’s Office of Inspector General conducted the investigation. Assistant U.S. Attorney Nicholas Bunch is prosecuting the case.
NDTX Round up: April 30 – May 6Read the Press Release
SENTENCING – CHRISTOPHER TRAJUAN COUSINS
On May 5, Christopher Trajuan Cousins, 28, was sentenced to 165 months in federal prison for conspiracy to interfere with commerce by robbery. In February 2018, Cousins and two co-conspirators robbed a Sprint store in Garland at gunpoint. The co-conspirators stole smartphones valued at approximately $13,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Erica Hilliard prosecuted the case.
GUILTY PLEA – OSWALDO AGUILERA-ADAME
On May 4, Oswaldo Aguilera-Adame, 29, pleaded guilty to possession with the intent to distribute a controlled substance. In June 2020, Aguilera-Adame controlled an apartment which received multiple kilograms of shipments of methamphetamine. Agents executed a search warrant of the apartment and arrested Aguilera-Adame outside of the residence. Inside the apartment, law enforcement located 18 kilograms of methamphetamine, 52 quarts of liquid methamphetamine, 24-gallon sized bags of methamphetamine, and $152,840 in drug proceeds. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
SENTENCING – ARMANDO CONTRERAS-MARTINEZ
On May 5, Armando Contreras-Martinez, 27, was sentenced to 180 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. In July 2018, federal agents executed a search warrant at Contreras-Martinez’s residence. Law enforcement recovered two firearms, 5.5 kilograms of methamphetamine, and equipment used in the methamphetamine conversion process. Additionally, law enforcement located cut-up gas tanks and wheel rims that had been used to transport methamphetamine into the United States. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
Mother, Son Who Sold Drugs on Dark Web Sentenced to Combined 18 Years in PrisonRead the Press Release
An Arlington mother-son duo who shipped methamphetamine through the U.S. Mail has been sentenced to a combined 18 years in federal prison, announced Acting U.S. Attorney Prerak Shah.
Mary Jane McIntyre, 61, pleaded guilty in December to possession of a controlled substance with intent to distribute; she was sentenced Thursday by U.S. District Judge Mark T Pittman to 72 months in federal prison. Her son, Sean Alexander Harris, 29, pleaded guilty in December to a similar charge; he was sentenced last month by U.S. District Judge Reed O’Connor to 144 months in federal prison.
According to court documents, in March 2020, the North Texas Parcel Task Force intercepted a package thought to originate from a dark web narcotics vendor. The package – stamped with the label of a fictious company, Forever Stylist, Inc., purportedly based in Lewisville, Texas – contained several grams of a substance that field-tested positive for methamphetamine.
Investigators traced the package back to Mr. Harris, who they later observed depositing parcels of narcotics at various postal centers across the metroplex. They also identified Mr. Harris’ mother, Ms. McIntyre, on post office surveillance camera mailing parcels for her son.
The ensuing investigation identified more than 8,400 packages containing an estimated total of more than 75 pounds of methamphetamine posted between October 2019 and October 2020.
In plea papers, Mr. Harris admitted he sold narcotics over the dark web to buyers across the country.
“Suspects mistakenly believe they can remain hidden in the shadows of the dark web,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Postal Inspectors’ objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and the American public. The sentencing handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will ensure they are brought to justice. We thank the USPS-OIG and DEA for their partnership, in addition to the U.S. Attorney’s Office who remain a steadfast protector of the public.”
The U.S. Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
Former Wind Farm Manger Pleads Guilty in $550,000 Embezzlement SchemeRead the Press Release
A San Angelo man pleaded guilty yesterday to his role in a $550,000 embezzlement scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Arturo Salazar III, 41, a former site manager for a Vestas-American Wind Technologies wind farm, pleaded guilty Wednesday to four counts of unauthorized transactions with access devices.
According to court documents, Mr. Salazar admitted that he teamed up with Keith Krier, a conspirator, to create a sham business, BT Machine, with the sole purpose of creating fraudulent invoices. From 2016 to 2019, while Salazar worked as site manager for Vestas Wind, the conspirators presented hundreds of bogus invoices for services that BT Machine purportedly provided to Vestas.
Following payment of the invoices, Mr. Salazar the other individual would then split the money.
Mr. Salazar also used Vestas company credit cards to make unauthorized purchases totaling approximately $80,000. These personal purchases included a dump trailer, a skid steer loader, a universal terrain vehicle, and products from Amazon.
From 2016 to 2019, Mr. Salazar admitted to defrauding Vestas’ of more than $550,000.
Mr. Salazar now faces up to 60 years in federal prison. His sentencing will be set in late summer.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Ann Howey is prosecuting the case.
Alleged Bank Robber Arrested, Charged Following Fingerprint AnalysisRead the Press Release
A Dallas man has been arrested and charged with bank robbery, announced Acting U.S. Attorney Prerak Shah.
Michael Wilmer Wilson, 34, was arrested by the FBI at his residence in Dallas on Thursday morning, charged via criminal complaint with bank robbery. He is slated to make his initial appearance in federal court on Friday.
According to the criminal complaint, Mr. Wilson is allegedly connected to multiple recent bank robberies across north Texas. The incidents were repeatedly caught on surveillance camera.
During a robbery at a bank in Dallas on Feb. 9, Mr. Wilson allegedly flashed a demand note that read, “This is a robbery. I have a gun.” After grabbing several thousand dollars from the frightened teller, he fled with the money and demand note -- but left a deposit slip on the counter.
Investigators lifted a latent fingerprint off of the slip. They ran the print through a police department database, but failed to turn up a match.
During another robbery at a bank in Ennis on April 29, the suspect allegedly displayed a handwritten demand note that read, “THIS IS A ROBBERY. 30K. DON’T BE A HERO.” He instructed the victim teller to place cash into a folder, then fled, on foot, towards a nearby grocery store.
Investigators collected surveillance video from the grocery store, which showed a silver Dodge Challenger pulling out of the parking lot approximately three minutes after the robbery. The footage later showed the vehicle crossing paths with a police department vehicle, which happened to record the car’s license plate on its dash cam.
A search of the license plate number in the Texas Department of Motor Vehicles’ database revealed that the silver Dodge was registered to Mr. Wilson, whose driver’s license photo matched witnesses’ descriptions of the bank robbery suspect.
A forensic fingerprint examiner compared the latent print collected during the Feb. 9 robbery to prints collected by the Texas Department of Public Safety in March 2020 when Mr. Wilson applied for his license, and determined the prints were a match.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Wilson is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Violent Crimes Taskforce conducted the investigation with the assistance of the Dallas Police Department, the Ennis Police Department, the Texas Department of Motor Vehicles (DMV), and the Texas Department of Public Safety (DPS). Assistant U.S. Attorney Andrew Briggs is prosecuting the case.
Driver in deadly smuggling attempt pleads guiltyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old undocumented immigrant residing in Austin has entered a guilty plea to conspiring to transport other non-citizens, announced Acting U.S. Attorney Jennifer B. Lowery.
Lucio Magana Aguilar admitted he picked up a group of nine people Feb. 15 - the day the unusual harsh winter freeze struck Texas - with plans to transport them north.
The group had been traveling through the brush in an attempt to avoid the Javier Vega Jr. checkpoint near Sarita. During their journey, they had separated from their guide and faced extreme weather conditions. They made it back to the roadway where Aguilar arrived in his truck to transport them farther north.
However, by that time, one of the individuals was in extreme distress and another had already succumbed to the conditions. Five of the aliens, including the deceased one, were loaded into the backseat, while the other four were loaded into the rear cargo area of the truck.
Authorities later conducted a traffic stop on the vehicle, at which time they discovered the deceased alien dead at the scene.
Aguilar expected to be paid $1,000 in return for smuggling the group.
U.S. District Judge Drew B. Tipton will impose sentencing July 29. At that time, Aguilar faces up to 10 years in prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
NDTX Round up: April 23 – 29Read the Press Release
SENTENCING – KIRA LANE
On April 28, Kira Lane, 54, was sentenced to 5 years probation and ordered to pay $233,681.25 in restitution for access device fraud. Lane operated a catering business where he processed credit card transactions. During 2015, he used stolen credit card numbers for approximately 64 credit card transactions totaling $233,681.25. The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Jenna Rudoff prosecuted the case.
SENTENCING – LUIS PENA-ALEMAN
On April 26, Luis Pena-Aleman, 25, was sentenced to 135 months in federal prison for possession with the intent to distribute methamphetamine. In February 2019, a confidential source met a co-conspirator at an agreed location in Dallas. The co-conspirator arrived at the agreed location in a truck registered to Pena-Aleman to deliver the methamphetamine. Agents conducted a search of a storage facility located in Mesquite, Texas where they found a large quantity of methamphetamine and Pena-Aleman’s truck. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – OSCAR MARIO FLORES DAZA
On April 28, Oscar Mario Florez Daza, 32, pleaded guilty to conspiracy to launder money. In April 2020, Florez Daza picked up $14,800 in drug proceeds from a codefendant to launder. In May, Florez Daza picked up $40,000 in drug proceeds from a location in Oklahoma to transport them to Texas. Flores Daza faces up to 20 years in federal prison for his crimes. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Man Pleads Guilty to Selling Counterfeit VapesRead the Press Release
A Texas man pleaded guilty today to selling counterfeit vape pens imported from China, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Christopher Andrew Reyes, 23, of The Colony, pleaded guilty Thursday to conspiracy to import drug paraphernalia.
“This defendant imported thousands of potentially dangerous black-market vaping devices,” said Acting U.S. Attorney Prerak Shah. “Given the alarming incidence of lung injuries stemming from unregulated THC vapes, we knew could not allow any more of these devices onto our streets.”
“The distribution of these black-market vaping devices is not only illegal, but could prove lethal to those who consume vape materials purchased from unregulated sources, said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “These illicit items are a significant health threat in our communities and should not be available in the open market.”
According to court documents, Mr. Reyes admitted that he allowed employees of a vaping shop on Harry Hines Boulevard to order counterfeit THC vaping products online using his bank card. (Tetrahydrocannabinol, or THC, is the psychoactive compound found in marijuana.)
In September 2019, U.S. Customs & Border Protection agents intercepted a shipment of 2,400 counterfeit THC vaping devices addressed to Mr. Reyes and bound for his home. The vaping devices, which were sent from China and routed through DFW International Airport, bore the counterfeit trademark of a popular THC vape brand, “Cookies.” Agents estimated that at least five additional shipments of vaping products had been sent to Mr. Reyes.
In plea papers, the defendant admitted that after receiving the packages, he sold the contents back to the vaping shop for profit. His bank statements, which show large purchases from Chinese e-commerce company Alibaba (an online retailer similar to Amazon), backed up his admissions.
Mr. Reyes now faces up to three years in federal prison. His sentencing is set for Thursday, Aug. 26.
Following a rash of lung injuries related to counterfeit vaping devices, the CDC urged the public to avoid THC-containing vapes, especially those purchased from unreliable online retailers. For more information, consult the CDC’s E-Cig FAQ.
Homeland Security Investigations and the Food & Drug Administration’s Office of Criminal Investigations conducted the investigation with the assistance of Customs & Border Protection. Assistant U.S. Attorney Phelesa Guy prosecuted the case alongside Trial Attorneys Patrick Runkle and Speare Hodges of the Justice Department’s Consumer Protection Branch.
Inmate Gets More Than 15 Years Tacked onto Sentence for Attacking BOP EmployeeRead the Press Release
A prison inmate has been sentenced to more than 15 additional years in federal prison for attacking a Bureau of Prisons employee, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following a two-day trial in January, a jury found 44-year-old William Lee Terrell guilty of assault of a federal officer resulting in bodily injury. He was sentenced today to 188 months’ imprisonment by U.S. District Judge James Wesley Hendrix.
According to evidence presented at the trial, Mr. Terrell was convicted in 2010 of bank robbery and ordered to serve his 235-month sentence at FCI Big Spring. On March 23, 2019, Mr. Terrell, who was on suicide watch, was placed under the observation of Human Resource Specialist Krista Coccozza.
As HR Specialist Coccozza attempted to retrieve trash from a meal he had just eaten, Mr. Terrell reached through the food slot in the door, grabbing Specialist Coccozza. He struggled with her, attempting to free the keys to the cell attached to her belt.
Additional guards responded to Coccozza’s calls for help and they were able to free the keys from Terrell and secure his cell.
Specialist Coccozza suffered a bruised lung, bruised ribs, sprained wrist, sprained elbow, sprained fingers, skin abrasions, pain, and redness on her body, and was unable to return to work for a period of time due to her injuries.
Per the Court, Mr. Terrell will serve the 188-month sentence handed down today consecutive to the 235 month sentence he received in the bank robbery case for a total of 423 months, or a little over 35 years.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Stephen Rancourt are prosecuting the case. U.S. District Judge James Wesley Hendrix presided over the trial.
Islam Said Sentenced to 10 Years for Concealing ‘10 Most Wanted’ Suspect from ArrestRead the Press Release
An Irving man has been sentenced to 10 years in federal prison for helping a capital murder suspect evade capture for more than a decade, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Islam Yaser-Abdel Said, the 32-year-old son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty in January to one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding. Mr. Said pleaded open to the charges against him, with no assurances from the government as to the sentence prosecutors would recommend to the judge. He was sentenced Tuesday afternoon by U.S. District Judge Reed C. O’Connor in Fort Worth.
“Islam Said prioritized the whims of his father, an alleged killer, over justice for his own sisters. Thanks to the dogged work of the FBI and its law enforcement partners, however, Mr. Said’s efforts were ultimately in vain,” U.S. Attorney Prerak Shah said following Mr. Said’s guilty plea. “We are grateful to the many agents and officers who worked to apprehend Mr. Said, along with his father and uncle. Sarah and Amina deserve justice.”
“Islam Said made it possible for his father, Yaser Said, to evade justice for the brutal murder of his daughters for more than a decade,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Along with our partners, the FBI is thankful for the dedication and relentless pursuit that led to the capture of Amina and Sarah’s killer and those that provided him harbor.”
In plea papers, Islam Said admitted to sheltering his father from arrest in an attempt to subvert the administration of justice.
The elder Mr. Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies. He was captured 12 years later by the FBI’s Violent Crimes Task Force, and is currently in state custody.
In pleading guilty, Islam Said admitted that evidence proved he committed the crimes charged in the superseding indictment filed in November 2020.
Mr. Said harbored his father, Yaser, inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017. After the maintenance worker reported the sighting to the FBI, an agent was dispatched to interview Islam, but Islam refused to cooperate.
He later harbored his father inside a home in Justin, Texas that belonged to his cousin. On Aug. 25, 2020, FBI agents observed Mr. Said and his uncle deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.
Islam’s uncle, Yassein Abdulfatah Said (Yaser’s 59-year-old brother), was convicted in February of conspiring with Islam to conceal Yaser from arrest, among other crimes. Yassein’s sentencing is set for June 4 at 9 a.m. in Fort Worth.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case.
NDTX Round up: April 16 – 22Read the Press Release
SENTENCING – MARIA DEL ROSARIO ANTUNEZ-GARCIA
On April 19, Maria Del Rosario Antunez-Garcia, 35, was sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute a controlled substance. In June 2018, law enforcement intercepted telephone calls which revealed that Antunez-Garcia and a coconspirator had taken shipment of 2 kilos of heroin. Later that month, an undercover agent purchased a kilogram of methamphetamine from Antunez-Garcia. During the meeting, Antunez-Garcia informed the undercover agent that she would soon be receiving 70 kilograms of methamphetamine. The DEA conducted the investigation. Assistant U.S. Attorney John Kull prosecuted the case.
SENTENCING – STEVEN JALLOUL
On April 20, Steven Jalloul, 43, was sentenced to 6 years in federal custody and ordered to pay $14,100,029.87 in restitution for preparing false tax returns. Jalloul prepared and submitted to the IRS false income tax returns on behalf of his clients through his business, Royalty Tax and Financial Services LLC. Jalloul added false or inflated education expenses to client tax returns to make them eligible for larger American Opportunity education credits. He also added false or inflated business income or losses to client tax returns to maximize the Earned Income Credit. The IRS- CI conducted the investigation. Assistant U.S. Attorney Sid Mody prosecuted the case.
SENTENCING – EDDIE LEE BUSBY
On April 21, Eddie Busby, 30, was sentenced to 78 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. Busby conspired with multiple individuals to possess and distribute methamphetamine. On three different occasions in August 2019, Busby and his co-conspirators sold methamphetamine. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Joe Magliolo prosecuted the case.
SENTENCING – ARGELIA AGUIRRE
On April 21, Argelia Aguirre, 42, was sentenced to 20 years in federal prison for possession with the intent to distribute methamphetamine. On February 4, 2020, Aguirre possessed approximately 85 grams of methamphetamine with the intent to distribute the drugs for profit. The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
Lubbock Woman Sentenced to 210 Months in Prison for Trafficking MethRead the Press Release
A Lubbock woman who received shipments of methamphetamine via mail has been sentenced to 210 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Vanessa Rena Torres, 35, pleaded guilty in September to possession with the intent to distribute methamphetamine. She was sentenced on Thursday before U.S. District Judge James Wesley Hendrix.
According to court documents, U.S. Customs and Border Protection assigned to the FedEx hub in Memphis, Tennessee identified a package inaccurately labeled as food products destined for Lubbock, Texas. CBPO x-rayed and opened the package and located 3.15 kilograms of methamphetamine concealed inside seasoning packets.
HSI agents conducted a controlled delivery of the package to its original destination in Lubbock, Texas. Ms. Torres accepted delivery of the methamphetamine-filled parcel.
Later that evening, agents executed a search warrant at the Lubbock residence and located the package in the master bedroom closet. During asearch of the residence, agents were able to obtain receipts from money transfer to Mexico via Western Union.
When questioned by law enforcement, Ms. Torres admitted that she had been distributing methamphetamine in Lubbock for approximately two years. A male from Mexico known as “El Tio” sent her the parcel for drug trafficking. Torres also stated that “El Tio” had previously sent her one kilogram of methamphetamine which she had sold for approximately $10,000.
In March, Roger Pinon, 30, was sentenced to 41 months in federal prison for international money laundering in connection to his role in the methamphetamine trafficking conspiracy.
Homeland Security Investigations, U.S. Customs and Border Protection, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Reagor Dykes Owner Indicted for Bank FraudRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor has been charged with lying about using business loans for personal expenses, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Thursday, a federal grand jury indicted Bart Wade Reagor, 55, on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC. He will make his initial appearance before U.S. Magistrate Judge Lee Ann Reno in Amarillo on Monday at 2 p.m.
“Even as his businesses struggled financially, Mr. Reagor diverted business loan funds into his personal bank accounts, expressly violating his agreement with the bank,” said Acting U.S. Attorney Prerak Shah. “Lying to an FDIC-insured financial institution is a federal crime, one we will not abide. We are determined to hold to account every Reagor Dykes employee who engaged in financial misconduct.”
“Mr. Reagor used his executive influence to allegedly defraud a lending institution and cause the loss of a significant amount of money,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Corporate fraud schemes, like those that involve diverting millions of dollars to personal funds, have the potential to cause immeasurable damage to the public’s confidence in our economy.”
According to the indictment, in the first quarter of 2017, one of Reagor Dykes’ floorplan lenders conducted an audit that placed the auto group in a weak cash position.
In order obtain cash to continue operations, D & R Acquisitions, a limited liability company formed to hold Reagor Dykes’ real estate assets, entered into a loan agreement with International Bank of Commerce (IBC). The agreement included a $10,000,000 working capital loan, which was distributed by IBC to D&R 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.
However, in applying for the loan, Mr. Reagor allegedly misrepresented its purpose, concealing from IBC the fact that he planned to divert some of the proceeds from the working capital loan into his own personal account for personal expenses. (The loan agreement expressly prohibited Mr. Reagor and others from diverting loan proceeds to their personal bank accounts, and IBC would not have approved the loan if Mr. Reagor or anyone else had disclosed to IBC that some of the loan proceeds would be diverted to Mr. Reagor’s personal bank accounts.)
In total, 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.
Prior to Mr. Reagor’s indictment, 15 of his employees 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; he is slated to be sentenced on July 27.
- 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; she is slated to be sentenced on May 4.
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 20.
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 13.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 6.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud; she is slated to be sentenced on May 13.
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony; she is slated to be sentenced on May 6.
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud; he is slated to be sentenced May 6.
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony; he is slated to be sentenced June 22.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Reagor is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Reagor faces up to 90 years in federal prison, and will be required to forfeit any property traceable to the offense.
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 are prosecuting the case.
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
Johnson County Man Sentenced 10 Years in Federal Prison for Child Pornography CrimesRead the Press Release
A Johnson County man who was arrested with 110,000 images of child pornography has been sentenced to 10 years in federal prison, announced Acting U.S. Attorney Prerak Shah.
Timothy Lynn Vandeventer, 55, pleaded guilty to receipt of child pornography in November. He was sentenced yesterday before U.S. District Judge Ed Kinkeade.
According to court documents, HSI agents learned that Vandeventer was downloading child pornography from the internet to an IP address located at his residence in Alvarado, Texas.
Agents executed a search warrant at Vandeventer’s residence and seized a laptop computer, five external hard drives, and printing equipment.
Vandeventer purchased child pornography on the internet and downloaded it to his laptop and external hard drives so that he could easily access the illicit content. Additionally, Vandeventer used a computer printer to print images of child pornography to view for his sexual gratification.
A forensic analysis of Vandeventer’s computer located 110,000 images and 62 videos of child pornography including multiple images of prepubescent minors and minors less than 12-years-old.
Homeland Security Investigations conducted the investigation with assistance from the Johnson County Sheriff’s Office and the U.S. Secret Service. Assistant U.S. Attorney Shane Read prosecuted the case.
Thirteen Drug Traffickers Sentenced to More than 235 Years Combined in Federal PrisonRead the Press Release
Thirteen individuals with ties to a Mexican drug cartel have been sentenced to federal prison following an investigation led by the Drug Enforcement Administration, announced Acting U.S. Attorney Prerak Shah.
The thirteenth defendant, 30-year-old Jorge Llanas of Dallas, Texas, was sentenced Thursday by U.S. District Judge Jane J. Boyle to a total of 28 years confinement on charges of conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.
Each defendant charged has pleaded guilty and sentenced to their respective roles in a drug distribution conspiracy and money laundering scheme that operated in North Texas, Mexico, and elsewhere from March of 2018 to August of 2018. These defendants were associates or members of a Dallas based drug trafficking organization with ties to a cartel in Mexico associated with the Zeta Cartel.
During the investigation, agents seized more than 55 kilos of cocaine with a wholesale value of $1,457,500, 92 kilos of methamphetamine with a wholesale value of $570,400, and 822.8 pounds of marijuana. Cash seizures in this case totaled $145,229.
According to court documents, some defendant’s in this case imported the cocaine and methamphetamine from a Mexican based drug cartel with prior ties to Los Zetas. Large quantities of methamphetamine and marijuana were then stored at an apartment located in the Dallas Design District. The defendants would sell drugs locally throughout the Dallas area before transporting the drug proceeds to other areas of the country. The money from the sale of these controlled substances was then sent back to cocaine and methamphetamine suppliers in Mexico.
“We will not allow drug traffickers, members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting U.S. Attorney Shah. “Working with our state and local partners and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle drug trafficking networks.”
“For years, Los Zetas, and its successor, El Cártel del Noreste, have tried to use the Dallas-Fort Worth metroplex as a hub to distribute drugs throughout the United States,” stated DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “These convictions and prison terms should send a strong message to others that drug trafficking and its related violent crimes are not welcome here. DEA Dallas and our partners at the Texoma HIDTA as well as the Organized Crime Drug Enforcement Task Forces, will continue to identify, disrupt, and destroy, these criminal organizations that choose to distribute drugs to our streets.”
The defendants sentenced in connection with this case are as follows:
- Chrystian Hernandez, 23, Dallas, Texas
Sentenced on October 8, 2020 to 10 years in federal prison for conspiring to possess with intent to distribute methamphetamine and conspiring to launder monetary instruments.
- Veronica Angeles, 51, Fort Worth, Texas
Sentenced on September 28, 2020 to 97 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Jose Sanchez, 36, of Little Elm, Texas
Sentenced on June 25, 2020 to 151 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute cocaine.
- Cesar Ortiz, 40, Chihuahua, Mexico
Sentenced on September 8, 2020 to 46 months in federal prison for conspiring to possess with intent to distribute cocaine and conspiring to launder monetary instruments.
- Jakovan Lewis, 39, Desoto, Texas
Sentenced on September 2, 2020 to 70 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Roberto Rodriguez Salinas, 39, Nuevo Laredo, Tamaulipas, Mexico
Sentenced on June 12, 2020 to 57 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute.
- Marcus Morones, 58, Dallas, Texas
Sentenced 0n May 6, 2020 to 41 months in federal prison for conspiracy to possess with intent to distribute methamphetamine and conspiracy to launder monetary instruments.
- Jose Guadalupe Silva, 32, Dallas, Texas
Sentenced on August 23, 2019, to 210 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Moris Franco, 34, Dallas, Texas
Sentenced on March 3, 2021 to 135 months in federal prison for conspiracy to possess with intent to distribute cocaine.
- Daniel Don Juan, 30, Cleburne, Texas
Sentenced on March 16, 2021 to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.
- Tomas Salinas, 51, Dallas, Texas
Sentenced on March 17, 2021 to 210 months in federal prison for conspiracy to launder monetary instruments and conspiracy to possess with intent to distribute cocaine.
- Pete Torres, 31, Dallas, Texas
Sentenced on March 25, 2021 to 46 months in federal prison for conspiracy to launder monetary instruments.
All of the defendants arrested have pleaded guilty and have been sentenced and one defendant remains a fugitive.
The case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Investigation and was investigated by a Drug Enforcement Administration High Intensity Drug Trafficking Area (DEA HIDTA) task force. DEA, the Dallas Police Department, the Dallas County Sheriff’s Office, Irving Police Department, Richardson Police Department, and Carrollton Police Department all assisted in the investigation of this case.
The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks. Additional information about the OCDETF Program can be found here.
Assistant U.S. Attorneys George Leal and Rachael Jones were in charge of these prosecutions.
NDTX Round up: April 9 – 15Read the Press Release
GUILTY PLEA – SAMANTHA LONGORIA
On April 13, Samantha Longoria, 25, plead guilty to conspiracy to launder monetary instruments. Longoria sent the proceeds from drug transactions to Mexico via wire remittance transfers. For each transfer Longoria completed she was paid a fee. When she arrested in late September, law enforcement found receipts for money transfers in her residence she shared with a coconspirator. From May 14-18, Longoria completed 79 transactions totaling $70,000. Longoria now faces up to 20 years in federal prison for her crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
SENTENCING – Yotzer Harin Peraza-Navarro
On April 13, Yotzer Harin Peraza-Navarro, 32, was sentenced to 210 months in federal prison for possession with intent to distribute methamphetamine. Peraza-Navarro was pulled over by law enforcement for a traffic violation and placed under arrest for having an active warrant. When law enforcement searched Peraza-Navarro’s vehicle, they located $26,419, a pistol, and methamphetamine. Peraza-Navarro later admitted to transporting 25 pounds of methamphetamine and one kilogram of heroin. The DEA, HSI, Lubbock Sheriff’s Office, and Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Sean Long prosecuted the case.
SENTENCING – JORGE BENITEZ
On April 13, Jorge Benitez, 21, was sentenced to 10 years in federal prison for aiding and abetting possession with intent to distribute methamphetamine. Law enforcement conducted a traffic stop of a vehicle that Benitez occupied. Officers searched the vehicle and located marijuana, methamphetamine, heroin, $4,715 in drug proceeds, and a firearm. The DEA conducted the investigation. Assistant U.S. Attorney Rachael Jones prosecuted the case.
GUILTY PLEA – GERARDO JIMENEZ
On April 15, Gerardo Jimenez, 43, plead guilty to conspiracy to distribute a controlled substance and possession of a firearm during a drug trafficking crime. Jimenez utilized a storage building on his property to store large quantities of illegal narcotics. In May 2020, an undercover officer came to his residence and purchased an “eight ball” of cocaine. When law enforcement executed a search warrant of the residence, they located kilograms of methamphetamine, marijuana plants, and ten firearms. Jimenez now faces up to life in federal prison for his crimes. The DEA conducted the investigation. Assistant U.S. Attorney Phelesa Guy is prosecuting the case.
GUILTY PLEA – PERRY HILSON
On April 13, Perry Hilson, 42, plead guilty to possessing contraband in prison. On July 27, 2018, Perry Hilson, a prisoner at FCI Seagoville, spoke with Deshea Hilson and instructed her to smuggle narcotics to him during their visit the following day. When Deshea arrived in the visitation room, she went to the vending machines and purchased a bag of chips. She later excused herself to the restroom and retrieved several balloons of methamphetamine from her person and placed them in the chip bags. When she returned to the visitation room, Perry then pretended to eat the chips, but attempted to ingest the methamphetamine. Perry Hilson now faces up to 20 years in federal prison for his crimes. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Dallas Attorney Charged in Narcotics Money Laundering SchemeRead the Press Release
A Dallas lawyer has been charged with laundering what he believed to be proceeds of narcotics trafficking, announced Acting U.S. Attorney Prerak Shah.
Rayshun Jackson, the 51-year-old attorney at the helm of The Jackson Law Firm, was arrested Wednesday, charged via criminal complaint with money laundering. He made his initial appearance in federal court Friday morning.
“Attorneys swear an oath to conduct themselves with integrity and uphold the rule of law. Mr. Jackson instead chose to ignore his oath by allegedly laundering money for purported narcotics dealers,” said Acting U.S. Attorney Prerak Shah. “He explicitly instructed them on how to further violate the law and profit from the devastation of our nation’s opioid epidemic, lining his own pockets in the process. He will now have to face the consequences of his actions.”
“Global drug trafficking depends on criminal money launderers to take ill-gained profits and weave a fictitious web of businesses and bank accounts to appear legitimate. These illicit activities cannot exist without each other,” said Eduardo A. Chavez, Special Agent in Charge of the DEA in Dallas. “As alleged, Mr. Jackson used his law degree not in the furtherance of justice, but to line his own pockets, a true travesty of the law. The DEA will tirelessly investigate and seek justice for drug money launderers, who enable criminal organizations to profit from those who find themselves addicted to controlled substances.”
According to the complaint, Mr. Jackson surfaced during the DEA’s years-long investigation of a large-scale opioid distribution ring, when a high-level dealer offered to introduce an undercover agent to someone who could launder drug proceeds.
Asked if he knew anyone capable of laundering around half a million dollars of “drug money,” the dealer stated he knew “business people” who “do this for a fee.”
“He’s gonna clean it. He’s gonna wash it,” the dealer told the undercover agent in August 2020. “I don’t know the ins and outs… he’s the lawyer.”
Two weeks later, the dealer accompanied the undercover agent and a confidential source to Mr. Jackson’s office on Pacific Avenue in Dallas, where the dealer vouched for the undercover agent’s trustworthiness. Still posing as a drug trafficker, the undercover agent told Mr. Jackson that he would need to clean around “half a mil a month.”
“It’s straight dope money,” the undercover agent admitted.
“I don’t care where the money comes from,” the attorney responded.
The pair allegedly negotiated a 4 percent fee, plus bonus, for the defendant to launder the money. Mr. Jackson suggested setting up a “shell corporation,” as well as a cash business like a coin laundry or car wash that would make it difficult for authorities to track proceeds. He said he could get everything up and running in two to four weeks. The pair agreed on a $100,000 trial run, with more to come, and the undercover agent departed the office with the dealer and confidential source.
“This dude has been leading us. We are successful because of him,” the dealer told the undercover after they left. “Ray is the bomb… He’s a thug, he’s just got a law degree.”
In late September, the undercover agent again traveled to Mr. Jackson’s office to deliver $100,000 in cash made from purported drug sales.
Before the undercover turned over the money, Mr. Jackson tried to clarify his long-term commitment to the drug trafficking organization.
“I can get out at any point, right? Long as ya’ll got your money?” the attorney asked.
“I know that we can come across as threatening, but we are not savages,” the undercover agent responded. “So when you are ready to be done, then we’re gonna be done.”
The undercover agent then handed Mr. Jackson a black backpack containing the cash. Mr. Jackson allegedly took the bag and looked inside. He warned the undercover agent and confidential sources to speak in code when they contacted him, and told them he would not put anything substantive in a text.
“You take care of me and I am gonna take care of you,” he told the undercover agent before he left.
The following month, a Jackson Law Firm bank account made three deposits totaling $95,000 into a DEA undercover bank account. Mr. Jackson allegedly kept $5,000, the 4 percent commission plus a 1 percent bonus.
In late November, the undercover agent returned to Mr. Jackson’s office to deliver $300,000 in purported drug sale cash. The undercover agent expressed concern about Mr. Jackson allowing anyone access to his bank accounts, since the amount of money had increased. Mr. Jackson assured the undercover that he had “full control and only control.”
Mr. Jackson allegedly began to transfer the money to the black backpack he’d kept from the prior transaction, then paused to ask if the undercover had taken steps to ensure the money did not smell like narcotics, to which the agent replied in the affirmative. Mr. Jackson continued to stuff cash into the backpack, struggling to zip it closed. When the undercover agent offered to have the confidential source escort Mr. Jackson to his vehicle, the attorney laughed and said, “nobody knows, I take stuff down all the time.”
Over the following three months, a Jackson Law Firm bank account made eleven more deposits totaling $285,000 into undercover DEA bank accounts. Each deposit was less than $50,000, just as Mr. Jackson had promised. Mr. Jackson once again allegedly kept 5 percent, or $15,000.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Jackson is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 year in federal prison per laundered transaction.
The Drug Enforcement Administration’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigations and the Dallas Police Department. Assistant U.S. Attorney Courtney Coker, the Northern District of Texas’ Deputy Criminal Chief, is prosecuting the case along with Assistant U.S. Attorneys Juanita Fielden and Nashonme Johnson.
Former Federal Prison Escapee Sentenced to More Than 35 YearsRead the Press Release
A Lubbock man who twice escaped from law enforcement custody has been sentenced to more than 35 years in federal prison for gun and drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Mark Anthony Lucio, 40, pleaded guilty to escaping federal custody, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of a drug trafficking crime. He was sentenced Thursday morning by U.S. District Judge James Wesley Hendrix to 425 months in federal prison.
According to court documents, a Texas DPS trooper who was on patrol in Lubbock initiated a traffic stop of a vehicle on August 25, 2019. The driver, later identified as Lucio, attempted to evade troopers resulting in a high-speed pursuit throughout Lubbock. After traveling through an alley, Lucio and the passenger exited the vehicle and fled on foot.
Law enforcement continued pursuing the Lucio, who jumped a fence into a nearby backyard where he was arrested. Lucio and the passenger were detained in handcuffs and placed into separate vehicles.
Officers then began to search the backyard where Lucio was arrested and located three separate bags of methamphetamine totaling approximately 300 grams. Officers also recovered two loaded handguns from Lucio’s vehicle and on the ground next the vehicle.
When officers returned to their patrol cars, they realized that Lucio had managed to escape custody. Lucio remained a fugitive until November 22, 2019, when he was arrested on state warrants by the Lubbock Police Department.
On December 11, 2019, Lucio was charged by federal indictment for firearm and drug crimes which he later pleaded guilty to in June 2020. While awaiting sentencing, Mr. Lucio was remanded to federal custody at the Bailey County Jail in Muleshoe, Texas.
Juan Anthony Cordero, 25, visited Lucio at the Bailey County Jail on August 28, 2020. During a conversation between the two men, which was recorded by the jail, Lucio discussed the details of a prison escape that was to occur the next day, including the planned time and what vehicle Cordero would be driving.
The following day, Lucio called Cordero minutes before the planned escape and advised him to be on alert. Shortly after, Lucio crawled under a sally port door at the Bailey County Jail and ran into a waiting vehicle driven by Cordero.
Later that day, the Hale County Sheriff’s Office located Cordero’s vehicle in Plainview, Texas. Cordero informed members of the United States Marshals Service that he supplied Lucio with a firearm and dropped him off at an address in Abernathy, Texas.
That same day, law enforcement was able to successfully take Lucio into custody at the Abernathy, Texas residence. The firearm the Cordero provided to Lucio during the escape was also recovered from the scene.
In February 2021, Cordero was sentenced to 14 months in federal prison for assisting Lucio’s escape.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
For-Profit Trade School Owner Found Guilty of Defrauding VA, Student VeteransRead the Press Release
The owner of a for-profit trade school has been convicted of bilking the U.S. Department of Veterans Affairs of $72 million and of misleading student veterans, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately seven hours of deliberation, a federal jury on Thursday found Jonathan Dean Davis, the 43 year-old owner of Retail Ready Career Center, guilty of seven counts of wire fraud and four counts of money laundering.
“Mr. Davis lied to multiple government agencies in order to swindle veterans out of their hard-won GI Bill benefits. While graduates of Retail Ready were just scraping by, Mr. Davis was living the high life,” said Acting U.S. Attorney Prerak Shah. “We are grateful to the jury for their time in helping us bring this defendant to justice. To undermine the VA is to insult the incredible sacrifices made by U.S. military veterans.”
“Owners of schools that are entrusted with the education of our nation’s veterans will be held accountable if they defraud the post-911 GI Bill program or veteran students,” stated VA OIG Special Agent in Charge Jeffrey Breen. “Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the FBI, and the United States Postal Inspection Service.”
According to evidence presented at trial, Mr. Davis marketed Retail Ready’s six-week HVAC training course to veterans whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-9/11 GI Bill. The defendant, who was essentially broke at the time of the crime, realized that he could charge $18,000 to $21,000 per student for the six-week course, if only he could get approval from the VA to accept GI Bill payments for tuition – which required prior approvals from the Texas Workforce Commission (TWC) and the Texas Veterans Commission (TVC).
These agencies required applicants to certify that they were not personally facing any criminal or civil actions, and to prove that their schools were established educational institutions in stable financial condition. Knowing he could not meet these requirements, Mr. Davis repeatedly lied and concealed information from these agencies.
“Several decisions lie ahead that will ultimately make the difference if I succeed or if I fail. More gut-wrenching conversations, more humiliating experiences, more lying is in order,” Mr. Davis wrote in an electronic journal he kept on his computer, which was recovered by federal agents during a search of Retail Ready. The journal became a key piece of evidence at trial.
Mr. Davis assured the TWC that he was not subject to any civil actions, when, in fact, he was facing numerous civil judgments over unpaid debts. He also told the TWC that he was not facing any criminal charges, when, in fact, he had a pending felony charge for theft of services.
Chronicling his arrest in his journal, Mr. Davis wrote, “I was arrested on December 20th, last Friday night (a week ago) for a warrant that had been hanging around since April apparently. I didn’t know that I had one but it was for Theft of services for a bad check I had written in June or July of 2012 to the Doubletree for $25,000.00, which makes the charge a felony … The more complicated and damaging aspect is that having a felony arrest doesn’t do well with trying to apply for a school certificate.”
Mr. Davis told the TVC that Retail Ready had been operating as a school for two years, when, in fact, the company had only existed for a few months and had never trained any students. He claimed that Retail Ready was fully prepared to train veterans, when, in fact, the company lacked a building and basic supplies. He even lied to an independent accountant about the school’s financial condition, and then submitted false financial statements to both the TWC and the TVC.
“I lied to the accountant that I am using for my audit service, I told him that I don’t have anything in the company name other than a lease and I left out having Jay being an employee and that I’ve had a bank account with expenses out of it because it is a disaster and wouldn’t project a very good picture,” Mr. Davis wrote in his journal.
Eventually, based upon Mr. Davis’ lies to the TWC and TVC, the VA accepted Retail Ready’s application, allowing Mr. Davis to charge veterans’ tuition and fees to the VA under the GI Bill.
In 2014, he began recruiting student veterans, promising to prepare them for lucrative careers in the heating and air conditioning industry. Upon entering the workforce, however, many of these veterans discovered that Retail Ready had failed to teach them many of the basic skills necessary for entry-level technician jobs.
Several veterans testified at trial that they had relied on the Retail Ready’s fraudulently obtained VA endorsement and were sorely disappointed about their post- Retail Ready career prospects and pay. They were also shocked to learn of the rate at which Retail Ready’s six-week course had drained their GI Bill benefits, testifying that they felt “used,” “taken advantage of,” “deceived,” and “bamboozled.”
Even as his veteran graduates struggled to make ends meet, Retail Ready collected more than $72 million in GI Bill benefits from the VA. Using the proceeds of his fraud, Mr. Davis purchased a $2.2 million home in Dallas, a $428,000 Lamborghini, a $280,000 Ferrari, and a $260,000 Bentley, among other things.
He now faces up to 180 years in federal prison. His sentencing hearing has been set for Sept. 15.
The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office. Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case, and Assistant U.S. Attorney Dimitri Rocha is handling forfeiture. U.S. District Judge Brantley Starr presided over the trial.
Texas Man Charged with Intent to Attack Data CentersRead the Press Release
A Wichita Falls man who allegedly plotted to blow up a data center in Virginia has been charged with a malicious attempt to destroy a building with an explosive, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Seth Aaron Pendley, 28, was arrested on Thursday after allegedly attempting to obtain an explosive device from an undercover FBI employee in Fort Worth. He was charged via criminal complaint and made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Cureton Friday morning.
“We are indebted to the concerned citizen who came forward to report the defendant’s alarming online rhetoric. In flagging his posts to the FBI, this individual may have saved the lives of a number of tech workers,” said Acting U.S. Attorney Prerak Shah. “We are also incredibly proud of our FBI partners, who ensured that the defendant was apprehended with an inert explosive device before he could inflict real harm. The Justice Department is determined to apprehend domestic extremists who intend to commit violence, no matter what political sentiment drives them to do so.”
“The FBI’s highest priority is ensuring public safety and we thoroughly investigate all credible threats,” said Dallas Special Agent in Charge Matthew J. DeSarno. “We continually ask the public to report suspicious or threatening behavior to law enforcement, and in this instance, that vigilance may have prevented injuries and the destruction of property.”
According to the complaint, the investigation began after a concerned citizen contacted the FBI on Jan. 8 about alarming statements posted on MyMilitia.com, a forum dedicated to organizing militia groups.
A user who went by the screenname “Dionysus” stated he was planning to “conduct a little experiment,” that he said would “draw a lot of heat” and could be “dangerous.” When another user asked what outcome Dionysus desired, he responded, “death.”
A confidential source provided the FBI with the user’s email address, which was registered to Mr. Pendley.
A subsequent search of the defendant’s Facebook account showed that he had boasted about being at the U.S. Capitol on Jan. 6.
In private messages, he allegedly told friends that although he did not actually enter the Capitol building, he did reach the “platform,” where he swiped a piece of glass from a broken window and interacted with police. He said he brought a sawed-off AR rifle to D.C., but left the weapon in his car during his movement to the Capitol.
In late January, Mr. Pendley began using Signal, an encrypted messaging app, to communicate with another confidential source. The source told the FBI that Mr. Pendley allegedly stated he planned to use C-4 plastic explosives to attack prominent tech company's data centers in an attempt to “kill of about 70% of the internet.”
On March 31, the confidential source introduced Mr. Pendley to an individual who he claimed was his explosives supplier. In actuality, the man was an undercover FBI employee.
In recorded conversations, Mr. Pendley allegedly told the undercover he planned to attack web servers that he believed provided services to the FBI, CIA, and other federal agencies. He said he hoped to bring down “the oligarchy” currently in power in the United States.
On April 8, Mr. Pendley again met with the undercover FBI employee to pick up what he believed to be explosive devices. (In actuality, however, the undercover gave Mr. Pendley inert devices.) After the agent showed Mr. Pendley how to arm and detonate the devices, the defendant loaded them into his car. Mr. Pendley was then arrested by FBI agents who monitored the delivery of the inert devices.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Pendley is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The FBI’s Dallas Field Office, Wichita Falls Resident Agency and FBI’s North Texas Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Robert J. Boudreau of the Northern District of Texas is prosecuting the case with the assistance of Trial Attorney Alexandra Hughes of the National Security Division.
UPDATE (4/14/21): Mr. Pendley has been ordered detained pending trial.
NDTX Round up: April 2 – 8Read the Press Release
SENTENCING – MATTHEW ALLEN
On April 6, Matthew Allen, 37, was sentenced to 5 years in federal prison for attempted arson. Allen and another man drove from Houston to Dallas to commit arson of a local night club. Allen and the man wore Tyvek suits and used a crowbar to break into the nightclub. Once inside, Allen poured gasoline throughout the interior of the building. An unknown ignition source lit the gasoline causing Allen to flee the location. Once the fire flamed out, Allen returned to the night club and observed the man whom he arrived with dead from severe burns. Allen retrieved car keys from the man’s motionless body and returned to Houston. The ATF, FBI, Dallas Fire Department, and Dallas Police Department conducted the investigation. Assistant U.S. Attorney Walt Junker prosecuted the case.
GUILTY PLEA – ELLIS CHARLES WHITE
On April 6, Ellis Charles White, 45, plead guilty to conspiracy to possess with intent to distribute a controlled substance. White sold synthetic cannabinoids to an undercover officer at a Dallas area store that had been under investigation due to sustained complaints about drug trafficking and illegal gambling on the premises. Dallas Police executed a search warrant at the store and seized synthetic cannabinoids, methamphetamine, a firearm, and ammunition. White faces up to 20 years in federal prison for his crimes. The DEA and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm prosecuted the case.
SENTENCING – ANTHONY RENEE ESPINOSA
On March 30, Anthony Renee Espinosa, 29, was sentenced to 108 months in federal prison for transporting and shipping child pornography. Espinosa admitted that he has been involved in child pornography offenses for approximately six years and uses websites and mobile to receive, distribute and view child pornography. He also admitted that he joined specific social media groups in which users would share child pornography and would trade material with other Kik users in exchanged for other child pornography. Law enforcement seized Espinosa’s cellular devices and located over 300 images of child pornography. Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Abe McGlothlin prosecuted the case.
Man Sentenced for Embezzling $121,000+ in Disability BenefitsRead the Press Release
A man who embezzled more than $120,000 in social security disability benefits has been sentenced to 15 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Robert Salinas, 53, pleaded guilty in June 2020 to theft of government funds. He was sentenced on Thursday by Chief U.S. District Judge Barbara M.G. Lynn.
According to plea papers, in 2010, Mr. Salinas began receiving Social Security Administration (SSA) disability benefits for back problems, which he continued to collect through 2018. He also collected auxiliary benefits for his minor daughter.
The defendant admitted that in 2011, he took a trucking job with AMX, which included loading, unloading, and driving.
Knowing that the SSA would not continue to pay him benefits if they knew he was employed, Mr. Salinas failed to disclose his change in employment status to the SSA and concealed his job from the government by applying for and working under an alias, using a false social security number, alien registration number, and counterfeit permanent residence card.
From July 2011 through October 2018, Mr. Salinas collected $121,743.30 in Title II disability insurance benefits and child auxiliary benefits to which he was not entitled, he admitted.
The case against Mr. Salinas was initiated pursuant to receiving a referral from the SSA fraud hotline, 1-800-269-0271.
“We will continue to aggressively defend the integrity of Social Security’s disability programs to ensure those benefits remain available to those who truly qualify,” said Adam Schneider, Special Agent-in-Charge of the of the SSA OIG Dallas Field Division. “I want to thank the U.S. Attorney’s Office for their support, and their efforts to bring this individual to justice and recover funds for Social Security.”
The Social Security Administration Office of Inspector General conducted the investigation. Assistant U.S. Attorney Katherine Miller and SSA Special Assistant U.S. Attorney Jenna Rudoff prosecuted the case.
Federal Jury Convicts West Texas Man of Child Pornography CrimesRead the Press Release
A federal jury has convicted a Muleshoe, Texas man of child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately forty minutes of deliberation, a federal jury on Tuesday found 25-year-old Felipe Mata-Benavidez guilty of production of child pornography.
According to evidence presented at trial, Mr. Mata-Benavidez attempted to sexually assault an 11-year-old relative at her home in Muleshoe. During the assault, the victim’s mother walked in on Mr. Mata-Benavidez attempting to have sexual intercourse with minor.
The young girl’s mother stopped the assault and fled the residence with her young daughter. A short time later, a concerned neighbor notified law enforcement after hearing about the incident.
The Muleshoe Police Department interviewed Mr. Mata-Benavidez after receiving a report that he had attempted to sexually assaulted the 11-year-old girl. During an interview Mr. Mata-Benavidez, he showed detectives his cell phone, which contained his messages with the girl.
In those messages, Mr. Mata-Benavidez told the 11-year-old to send him explicit photographs of herself. When she refused, Mr. Mata-Benavidez bullied the girl until she conceded, texting Mr. Mata-Benavidez a lewd and lascivious image. He then commented saying the girl was beautiful and telling the her not to “share with anybody else… because it’s mine.” Mr. Mata-Benavidez then continued to ask for the 11-year-old to send more explicit images.
Mr. Mata-Benavidez now faces up to 30 years in federal prison. A sentencing hearing has been set for July 8, 2021.
The Federal Bureau of Investigation Lubbock Resident Agency, the Muleshoe Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Matthew McLeod prosecuted the case. U.S. District Judge James Wesley Hendrix presided over the trial.
Arlington Man Sentenced to 5 Years in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
An Arlington man whose fraudulent tax filings netted him more than $935,000 in improper refunds has been sentenced to five years in federal prison and ordered to pay $495,368 in restitution to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Glenn Edwards Boggus, 34, pleaded guilty in January 2020 to filing a false claim for refund from the IRS. He was sentenced Friday by U.S. District Judge Karen Gren Scholer.
In plea papers, Mr. Boggus admitted that in January 2017, he filed a fraudulent individual income tax return, Form 1040, that claimed a $1.14 million tax refund for tax year 2016. Along with his fraudulent 1040, he submitted a false wage and tax statement, Form W-2, reporting $5,647,888 in wages and $3,333,116 in withholdings, which he knew to be false. (At his sentencing hearing, prosecutors introduced evidence that the company from which he’d purportedly collected his wages was fake.)
The IRS sent Mr. Boggus a check in the amount of $935,432.56 for his alleged tax refund. In March 2017, Mr. Boggus attempted to deposit the check into an account he opened at Regions Bank.
As part of his plea, Mr. Boggus also admitted that for tax years 2013 through 2015, he executed a similar scheme to defraud the government, submitting false tax returns claiming he had paid certain withholdings and was entitled to tax refunds. He said he knowingly filed his tax returns in which he claimed fraudulent tax refunds from the IRS in the amount of $33,489 for tax year 2013, $323,765 for tax year 2014, and $258,407 for tax year 2015.
IRS - Criminal Investigation investigated the case. Assistant U.S. Attorney L. Rachael Jones prosecuted the case.
NDTX Round up: March 26 - April 1Read the Press Release
SENTENCING – ELIZABETH ANN EDWARDS
On March 26, Elizabeth Ann Edwards, 35, was sentenced to 121 months in federal prison for distribution of a mixture or substance containing methamphetamine. Edwards drove an individual to a location to purchase methamphetamine from a woman. When they arrived, Edward parked the care and called the woman over. The passenger in the Edwards’ vehicle paid the woman for the methamphetamine which was delivered in a green baggie. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – CHRISTY LYNN HERPECHE
On March 26, Christy Lynn Herpeche, 36, was sentenced to 37 months in federal prison for distribution of a mixture or substance containing methamphetamine. On January 20, 2020, Herpeche entered into negotiations with another individual to sell them methamphetamine. She made four transactions of methamphetamine. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – ALEXIS GONZALEZ-BANALES
On March 26, Alexis Gonzalez-Banales, 23, was sentenced to 5 years in federal prison for illegal transportation of an alien. The Wichita Falls Sheriff’s Office conducted a traffic stop of a sport utility vehicle driven by Gonzalez-Banales. The vehicle was found to contain multiple illegal aliens who were all citizens of Mexico. Gonzalez-Banales was transporting the group to various locations in across the United States including Arizona, Texas, Alabama, Georgia, and Florida. HSI and Wichita Falls Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
GUILTY PLEA – JORGE LUIS GONZALEZ
On March 30, Jorge Luis Gonzalez, 27, plead guilty to possession with intent to distribute a controlled substance. Lancaster police officers were dispatched concerning a shooting complaint. When officers arrived at a location, the victim advised officers that they had been shot at by two men from a residential location. Law enforcement responded to the location of the shooting where they recovered several shell casings in the driveway. Additionally, law enforcement made contact with Gonzalez. He was arrested after officers located methamphetamine in his pants pockets. Inside the residence, law enforcement seized methamphetamine, heroin, promethazine, and methamphetamine in the conversion process from liquid to crystal form. Gonzalez faces up to 20 years in federal prison for his crimes. The DEA and Lancaster Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm is prosecuting the case.
SENTENCING – BEI-JING TASHAWNA WALKER
On March 31, Bei-Jing Tashawna Walker, 27, was sentenced to 4 years probation for accessory after the fact. In February 2018, Walker was driving her vehicle and the front passenger, Donnie Orlondo Ferrrell, fired a handgun from the passenger window in the direction of another motorist. Walker witnessed the other motorist crash his vehicle into a concrete retaining wall after the shots were fired by Ferrell. She continued to drive to her residence and allowed Ferrell to stay while he attempted to avoid law enforcement detection. It was not until police arrested Ferrell at Walker’s residence that she learned the motorist had been killed by a bullet fired from Walker’s handgun. The United States Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Lubbock County Man Sentenced to Life for Enticement of 11-Year-Old RelativeRead the Press Release
A Shallowater, Texas man was sentenced today to life in federal prison for enticement of an 11-year-old relative, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On December 4, 2020, just after 15 minutes of deliberation, a federal jury convicted John David Martinez, 34, of enticement of a minor. Mr. Martinez was sentenced today by U.S. District Judge James Wesley Hendrix.
“This defendant took full advantage of a vulnerable minor relative through a series disturbing actions,” said Acting U.S. Attorney Prerak Shah. “His admissions provide alarming insight into the methods he used to entice a young child for his own criminal gratification. Today’s sentence is the only way to guarantee that he will never again harm children.”
“We applaud the quick action of the child’s caregiver to notify law enforcement of Mr. Martinez’s reprehensible conduct,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Today’s sentence reflects the heinous nature of the crimes committed by Mr. Martinez and removes this dangerous predator from our community. We will continue working with our partners to protect children and hold offenders accountable for their crimes.”
According to evidence presented at trial, Mr. Martinez initiated a text conversation with an 11-year-old relative in July 2018.
The two exchanged 7,702 text messages over a one-month period during which 31-year-old Martinez bullied the child into agreeing to have sex with him.
In one text message, Mr. Martinez asked the child, “you wanna have sex with me?” He followed it up with another message stating, “this stays between us.”
Fortunately, the child’s babysitter spotted the messages on her phone and notified the child’s parents and law enforcement immediately. The investigation revealed that Martinez had a history of sexually abusing minors.
The FBI Lubbock Resident Agency, Shallowater Police Department, and Lubbock County Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Sean Long are prosecuting the case.
Convicted Felon Sentenced to 25 Years in Federal Prison for Gun CrimeRead the Press Release
A 46-year-old Dallas man was sentenced to 25 years in federal prison of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Keldric Walker Thomas pleaded guilty in February 2020 to possession of a firearm in furtherance of a drug trafficking crime. Mr. Thomas was sentenced on Monday by U.S. District Judge David C. Godbey. Mr. Thomas was convicted in 2003 of possession of a firearm in furtherance of a drug trafficking crime.
According to plea papers, in July 2018, Dallas police officers observed Mr. Thomas committing multiple traffic offenses while operating a Chevrolet Malibu. Law enforcement made contact with Mr. Thomas and he was placed under arrest.
During a subsequent search of Mr. Thomas’s person, law enforcement recovered a .45 caliber magazine containing rounds of ammunition, a green tipped rifle round, cocaine, and methamphetamine. Mr. Thomas also possessed $2,364 in U.S. currency.
Officers also obtained a search warrant for Mr. Thomas’ Chevrolet Malibu. Inside the vehicle, law enforcement located a semi-automatic pistol and large quantities of methamphetamine and heroin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Renee Hunter prosecuted the case.
Dallas Man Pleads Guilty to Obstructing IRS LawsRead the Press Release
A Dallas man pleaded guilty today to attempting to obstruct the due administration of the internal revenue laws of the United States, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
According to court records, between 2009 and 2017, David Marcus Easler, 58, earned approximately $836,699 in wages. As of January 2019, Mr. Easler had an outstanding tax balance of approximately $326,257. This substantial tax due was a result of his longstanding failure to pay his income taxes dating back to 1996.
Since at least 2004, the IRS sent several Notices of Levy on Wages to Mr. Easler to collect past due income taxes. When the IRS became aware of his employment with a particular company, the IRS attempted to collect past due income taxes by either withholding taxes from his salary, or by using tax levies and/or garnishment of wages from Mr. Easler's employer.
In direct response to IRS efforts to collect his past due taxes, Mr. Easler filed four different voluntary petitions for bankruptcy. With some of these bankruptcy filings, Mr. Easler submitted false and fraudulent tax returns and other tax return related documents. For example, as part of his 2009 bankruptcy filing, he submitted several income tax returns that falsely reported that he made “0” dollars of taxable income.
In 2011 and 2013, Mr. Easler signed and filed with the IRS three false U.S. Nonresident Alien Income Tax Returns, Form 1040NR, in which he fraudulently represented that he was a non-resident of the United States living in the foreign country of Texas. In these forms, Mr. Easler also falsely claimed that he was due tax refunds.
From 2012 through 2015, Mr. Easler provided several of his employers with false Employee's Withholding Certificates, Form W-4, in which he fraudulently inflated the number of exemptions to reduce the amount of income taxes withheld from his paychecks. On some Forms W-4, Mr. Easler falsely claimed he was "exempt" from the withholding of any taxes from his paychecks.
On November 17, 2014, Mr. Easler testified at bankruptcy hearing before a United States Bankruptcy Judge. During the hearing, the Bankruptcy Judge told Mr. Easler that his theory to justify his non-payment of income taxes was "all a big ruse to keep people from paying taxes.” The United States Bankruptcy Judge also told Mr. Easler that his theory amounted to a ''tax evasion system" and said if Mr. Easler continued to refuse to pay his income taxes, "it's not going to do anything for you in the courts of this country. You're just wasting your time."
Even after these warnings, Mr. Easler did not change course and continued his efforts to impede the IRS by filing two additional bankruptcy petitions in 2015 and 2016 to obstruct IRS tax collection efforts.
“Every citizen of this country has a lawful duty to report their taxable income and pay their fair share of taxes: there is no gray area on the subject,” said Mark Pearson, IRS Criminal Investigation Special Agent in Charge. “Not only did Mr. Easler choose to ignore his duty to pay taxes for over 20 years, he repeatedly attempted to obstruct IRS collection efforts. Mr. Easler is now a convicted felon. The IRS and Department of Justice remain determined and vigilant in investigating and prosecuting those who willfully refuse to pay taxes on their income and thus undermine the integrity of the U.S. tax system."
Mr. Easler now faces up to three years in federal prison. His sentencing has been set for August 13, 2021.
IRS Criminal Investigation is conducting the investigation. Assistant U.S. Attorney David Jarvis is prosecuting the case.
Sixteen Heroin Traffickers Sentenced in “Operation Last Trip”Read the Press Release
Sixteen individuals operating a heroin trafficking ring have been convicted and sentenced to federal prison following an investigation led by the Drug Enforcement Administration and Texas Department of Public Safety, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
This marks the third round of sentencings in a larger heroin trafficking investigation dubbed “Operation Last Trip.” In total, forty defendants have been prosecuted for trafficking heroin, and various other drugs, including meth, between 2017 and 2019, according to court documents.
The sixteenth and final defendant in this round, 27-year-old Erica Anne Maloney, was sentenced Friday by U.S. District Judge Reed C. O’Connor to more than 3 years imprisonment for her role in the heroin distribution conspiracy.
According to court documents, investigators identified multiple individuals who traveled from Wichita Falls to the Dallas area repeatedly for the purpose of purchasing heroin and other illicit drugs. The heroin buyers would then transport the opioids back to Wichita Falls to sell to customers.
“A highly-addictive and deadly opioid, heroin has plagued communities across Texas,” said Acting U.S. Attorney Shah. “The U.S. Attorney’s Office, the DEA and state and local law enforcement partners are committed to dismantling distribution networks and prosecuting drug traffickers.”
“These sentences reflect a win for all citizens of North Texas who value safe and drug-free communities,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas. “These individuals who spent their days distributing heroin will now spend nights in jail while the men and women of the DEA Dallas Field Division will continue their efforts to keep heroin off our streets.”
Other defendants connected in this case received the following prison sentences:
• Eric Casey O’Neill, aka “Irish”: 120 months
• Erica Renee Robertson: 37 months
• Leslie Amanda Pavlick: 71 months
• Oland Randle Robison, aka “Doodle: 235 months
• Marquise Day-Leon Isham, aka “Black”: 70 months
• Sabrina Marie Berreles: 6 months
• Curtis Lee Buss: 36 months
• Jessica Maria Lance: 46 months
• Michael Thomas Leon, aka “Mikey”: 37 months
• David Wayne Vinson: 84 months
• Jeremey James Fields: 48 months
• Amy Faye Moore: 24 months
• Farrah Sage Harwell: 8 months
• Kayla Leann Gray: 46 months
• Charles William Wallace IV: 37 months
The Drug Enforcement Administration, the Texas Department of Public Safety Criminal Investigations Division led the investigation with the assistance of the Wichita Falls Police Department Organized Crime Unit, the Wichita County District Attorney’s Office Drug Enforcement Division, the Wichita County Sheriff’s Office and the Duncanville Police Department.
Assistant U.S. Attorney Robert Boudreau was in charge of these prosecutions.
NDTX Round up: March 19-25Read the Press Release
SENTENCING – BRIAN KEITH MCKENZIE
On March 19, Brian Keith McKenzie, 53, was sentenced to 5 years in federal prison for mailing threatening communications. In February 2018, McKenzie mailed letters to the President and a federal judge containing homicidal and threatening comments. Additionally, McKenzie ground up medication into a white powdery substance to make it appear like Anthrax and placed it in the envelopes. When questioned by federal law enforcement, McKenzie stated that he had access to firearms and that he and his friends make explosives with home cleaning products and ammonium nitrates. The United States Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Sid Mody prosecuted the case.
SENTENCING – CALVIN JAMES THOMAS
On March 24, Calvin James Thomas, 35, was sentenced to 57 months in federal prison for conspiracy to possess with the intent to distribute and the distribution of cocaine. Thomas purchased cocaine from a drug dealer who controlled two drug distribution houses in Dallas. He purchased the cocaine in preset quantities and then resold the drugs to others for a profit. The DEA conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – GEORGE RODRIGUEZ
On March 24, George Rodriguez, 34, plead guilty to possession with intent to distribute cocaine. In October 2018, undercover officers purchased two pounds of marijuana from Rodriguez. During the transaction, Rodriguez agreed to provide the undercover officers with cocaine in the future. Over the next several months, Rodriguez provided or facilitated five cocaine transactions. Rodriguez faces up to 20 years in federal prison for his crimes. The DEA, Greenville County Sheriff’s Office, and Greenville Police Department conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
SENTENCING – JONATHAN MARKEY CHOPANE aka “GOTTI”
On March 25, Jonathan Markey Chopane, 36, was sentenced to 7 years in federal prison for two counts of use of a facility of interstate commerce in aid of a racketeering enterprise. Chopane began communicating with a minor female via Instagram. He purchased a bus ticket for her to travel from Dallas to Houston to perform commercial sex acts that took place in hotels. Chopane arranged the commercial sex acts with the victim on his cell phone and then shared in the proceeds that the victim made. HSI conducted the investigation. Assistant U.S. Attorney Nicole Dana prosecuted the case.
Man Who Held up Army National Guard Convoy Charged with Armed Assault of Federal OfficersRead the Press Release
An Arizona man who held up an Army National Guard convoy at gunpoint on Monday has been federally charged, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Larry Lee Harris, 66, was charged via criminal complaint with assaulting a federal officer with a deadly weapon. He will be set for an initial appearance in federal court at a later date.
According to the complaint, Mr. Harris allegedly pointed a firearm at a three-van Army National Guard convoy engaged in official duties related to the COVID-19 national emergency.
National Guard personnel reported to police that Mr. Harris, driving a white Chevrolet pickup, began following the officers down the I-27 in Lubbock, then pulled alongside them and brandished a weapon. All three vehicles pulled over.
Mr. Harris, identifying himself as a detective, allegedly approached the National Guard vehicles with his firearm drawn. Ranting about a missing 41-year-old-woman and a 12-year-old girl, he demanded to search the vans. National Guard personnel complied. Mr. Harris searched the vans and then began to drive away.
As the National Guard convoy started to depart, Mr. Harris allegedly made an erratic U-turn and once again forced the vans to stop. He then demanded to search an engine compartment.
The National Guard called 911. The Idalou Police Department arrived on scene and took Mr. Harris into custody without incident. Inside his waistband, they found a Colt .45 semiautomatic pistol, loaded with a full magazine.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Harris is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in prison on the federal charge.
He is also facing state charges of aggravated assault, unlawful restraint, impersonating a public servant, unlawfully carrying a weapon, and interfering with military forces.
Homeland Security Investigations’ Dallas Field Office, the Idalou Police Department, the Texas Department of Public Safety, and the Lubbock County Sheriff’s Office conducted the investigation with the complete cooperation of the Texas National Guard. Assistant U.S. Attorneys Jeffrey Haag and Callie Woolam are prosecuting the case.
Operation Wasted Daze: 46 Convicted in $18 Million Pill Mill SchemeRead the Press Release
Forty-six defendants, including two doctors, a nurse practitioner, and five pharmacists, have been convicted of operating an $18 million pill mill scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
They were arrested in 2020 by the DEA’s Fort Worth Tactical Diversion Squad in “Operation Wasted Daze.”
The lead defendant, 61-year-old oncologist Caesar Mark Capistrano, was charged with multiple counts of conspiracy to dispense hydrocodone and possession with intent to distribute hydrocodone or carisoprodol. He and five coconspirators – pharmacists Ethel Oyekunle-Bubu, Wilkinson Oloyede Thomas, and Christopher Kalejaiye Ajayi as well as recruiter Brian Kincade and recruit Alphonse Fisher – were convicted at trial. The remaining 41 defendants pleaded guilty prior to trial.
According to evidence presented at three different trials conducted in early 2021, Dr. Capistrano and his associate, 36-year-old Dr. Tameka Lachelle Noel, wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, used a network of recruiters to enlist individuals from the community and local homeless shelters to pose as “patients.” Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel.
The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pill mill pharmacies and diverted the drugs for resale on the streets.
The pharmacists charged the recruiters between $200 and $800 per prescription, filling hundreds and hundreds of prescriptions for a fee, according to evidence presented at trial.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine.
Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
“Pill mills funnel potentially deadly opiates onto our streets, wreaking havoc in communities beset by addiction,” said U.S. Attorney Prerak Shah. “The doctors, pharmacists, and clinic staff convicted in this case violated not only medical ethics, but federal law as well. We are proud to bring them to justice, and we remain committed to fighting the opioid epidemic where it matters most – at the point of entry.”
“Mr. Capistrano and his criminal associates have violated the public’s trust and stained the image of such a vital and noble profession in our society, especially during a time where we need our front line healthcare workers the most, said DEA Dallas Field Division Special Agent in Charge, Eduardo A. Chávez. “Profiting off the lives of those addicted to controlled prescription drugs stops now. DEA Fort Worth and all of our North Texas law enforcement partners will never waver and always ensure justice is the best medicine.”
Medical professionals convicted in the scheme include:
- Caesar Mark Capistrano, medical doctor
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance
- Tameka Lachelle Noel, medical doctor
Pleaded guilty on 11/16/2020 to conspiracy to dispense a controlled substance and was sentenced to eight years federal prison.
- Ngozika Tracey Njoku, nurse practitioner
Pleaded guilty on 11/20/2020 to conspiracy to dispense a controlled substance
Clinic staff convicted in the scheme include:
- Shirley Ann Williams, clinic office manager
Pleaded guilty on 11/18/2020 to conspiracy to disperse a controlled substance
- Latonya Ann Tucker, office staff
Pleaded guilty on 11/20/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison.
Recruiters convicted in the scheme include:
- Ritchie Dale Milligan, Jr
Pleaded guilty on 11/18/2020 to conspiracy to distribute a controlled substance and was sentenced to eight years federal prison.
- Wayne Benard Kincade
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance
- Katie Lorane Parker
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance
- Cynthia Denise Cooks
Pleaded guilty on 11/25/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison.
Pharmacists convicted in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense controlled substances and one count of possession with intent to distribute controlled substances
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
Convicted at trial on 3/2/2021 of three counts of conspiracy to dispense controlled substances, and two counts of possession with intent to distribute controlled substances
- Bartholomew Anny Akubukwe, Beco Pharmacy
Pleaded guilty on 11/18/2020 to conspiracy to dispense a controlled substance and was sentenced to 11 years in federal prison.
- Nedal Helmi Naser, Brandy Pharmacy
Pleaded guilty on 3/16/2021 to conspiracy to dispense a controlled substance.
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute controlled substances.
Dr. Capistrano now faces up to 100 years in federal prison, 20 years per count. His coconspirators also face up to 20 years per count of conviction.
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Assistant U.S. Attorneys Laura Montes and Shawn Smith prosecuted the case.
- Caesar Mark Capistrano, medical doctor
Mansfield Man Sentenced to Federal Prison for Criminal ContemptRead the Press Release
A Mansfield man will be spending time behind bars for criminal contempt, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Larry Reynolds, 61, pleaded guilty to criminal contempt in February 2021. He was sentenced yesterday to six months in federal prison by U.S. District Judge Jane J. Boyle.
According to court documents, Mr. Reynolds, the former owner and general manager of Mansfield Boat and RV Storage, filed for Chapter 11 bankruptcy in December 2018. The U.S. Bankruptcy Court limited Mr. Reynolds use of cash and collateral and prohibited his business from making payments or reimbursements to himself.
In April 2019, Mr. Reynolds testified that he had withdrawn money from the Mansfield Boat and RV Storage bank account totaling $96,306 to pay for personal items including payments towards his home mortgage. At a subsequent hearing, Mr. Reynolds admitted to transferring and additional $45,000 from the Mansfield Boat and RV Storage bank account against the direction of the Court.
During the course of the bankruptcy proceedings, Mr. Reynolds was found in civil contempt seven times for failing the repay approximately $140,000 in funds that he misappropriated from his business’ bankruptcy estate without court authorization, failing to appear at a scheduled hearing, and failing to comply with accounting and information request by the Court.
In July 2020, the U.S. Bankruptcy Court for the Northern District of Texas referred the case to the United States Attorney’s Office for criminal contempt prosecution against Mr. Reynolds.
The FBI Dallas Field Office conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
Longview Man Sentenced to More Than 30 Years in Federal Prison for Enticement of 10-Year-Old GirlRead the Press Release
A Longview man was sentenced today to more than 30 years in federal prison for attempted enticement of a child, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Keith Lee Merchant – a 41-year-old man who was previously convicted in 2004 on state charges of sexually exploiting children – pleaded guilty to one count of attempted enticement of a child in October. He was sentenced today to 365 months in federal prison by U.S. District Judge Jane J. Boyle.
According to court documents, a federal agent acting in an undercover capacity responded to an online advertisement on a social media website entitled, “Taboo Family Fun – M4F 37 (Near You).” Within minutes, Mr. Merchant, the creator of the ad, replied to the undercover agent and initiated a three-week long, sexually explicit dialog via social media and Kik, a messaging app popular among teenagers.
During the communications, Mr. Merchant informed the undercover agent that he previously had sexual relations with young girls and that he was willing to have sexual relations with the undercover officer’s 10-year old daughter. Mr. Merchant expressed his desire to travel from his home in Longview to meet the 10-year-old girl and spend the night with her. He also promised to bring the young girl lingerie stating “got little miss a gift… I hope she likes purple.”
On March 23, 2018, Mr. Merchant traveled from his home in Longview to an apartment complex in Garland where he believed he was meeting the mother her daughter. When Mr. Merchant arrived at the apartment, FBI agents and Garland police officers were at the location and he was taken into custody. Inside his pickup truck, law enforcement located an overnight bag, a pink stuffed animal, a box of candy, and purple lingerie.
When questioned by law enforcement, Mr. Merchant admitted to posting the advertisement, “Taboo Family Fun” and agreed that the term “taboo” meant “underage.” Law enforcement forensically searched Mr. Merchant’s cell phone revealing his web history, internet searches, and bookmarks, all showing his interest in sexually exploiting children.
The FBI Dallas Field Office and the Garland Police Department conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative pools 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.
Texas Man Pleads Guilty to $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Texas man pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.
According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans. Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”
“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”
“We will continue to vigorously investigate cases involving attempts to defraud the Paycheck Protection Program and other crimes against the financial institutions the FDIC insures and regulates,” said Special Agent in Charge Anand M. Ramlall of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “Sah’s egregious fraud committed to fund his luxurious lifestyle is unacceptable under any circumstances, but especially so when done against a program designed to help Americans recover from the ongoing pandemic. We appreciate the cooperation and coordination of our law-enforcement partners on these types of investigations.”
Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah agreed to forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government has seized to date.
Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Jury Convicts Arlington Man of Gun CrimeRead the Press Release
A federal jury has convicted a five-time felon and suspected shooter of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following a two-day trial and just 30 minutes of deliberation, a jury in Fort Worth found Abedel Sattar Alkheqani, 27, guilty of being a felon in possession of a firearm and ammunition.
According to evidence presented at trial, Mr. Alkheqani was arrested in March 2020, after officers with the Arlington Police Department identified him as a suspect in a shooting that occurred in a residential neighborhood in Arlington, Texas.
Witnesses told law enforcement that the suspect exited a pickup truck, pistol in hand, and fired three times as the victim tried to flee. The victim was struck multiple times and hospitalized, but ultimately recovered.
Based on witnesses’ descriptions of the suspect’s truck as well as surveillance video, officers were able to locate the truck used in the shooting approximately a half-mile from the scene. They determined the truck was registered to Mr. Alkheqani and noted that he matched witnesses’ descriptions of the shooter.
When officers pulled Mr. Alkheqani over a few hours later, they discovered marijuana in his jacket pocket and arrested him for possession. He then gave written consent for officers to search his home and vehicle.
During the search of Mr. Alkheqani's truck, law enforcement recovered a single round of 9mm caliber ammunition, which matched the manufacturer and caliber of the shell casings recovered at the shooting scene. At his residence, they recovered a .22 caliber rifle beside his bed and a magazine containing ammunition for the rifle within arm’s reach.
Mr. Alkheqani told officers that the rifle was his wife’s, but in recorded jailhouse calls, Mr. Alkheqani asked his wife, “is my rifle still there?” before correcting himself and stating, “I mean your rifle.” (Audio file available here.)
Forensic analysis later revealed that gunshot residue was recovered from Mr. Alkheqani’s body on the day of the shooting.
A query of Mr. Alkheqani's criminal history revealed five prior felony convictions, including four for burglary of a habitation – all offenses that made it a federal crime for him to possess a firearm or ammunition.
Based on the defendant’s multiple prior felony convictions, he is subject to a potential statutory sentencing enhancement under the Armed Career Criminal Act, which raises the maximum penalty for offenders with three previous convictions for a violent felony or serious drug offense. Mr. Alkheqani now faces a sentence of between 15 years and life in federal prison. His sentencing is set for Aug. 10, 2021.
The Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Levi Thomas and Frank Gatto tried the case. Senior U.S. District Judge Terry R. Means presided over the trial.
Coppell Man Pleads Guilty to $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Coppell businessman pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.
According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans.
Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications.
Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”
“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law-enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”
Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah will forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government seized to date.
Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in federal prison.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Texas Doctor Accused of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the Northern District of Texas has filed a False Claims Act lawsuit against a Texas dermatopathologist and his clinic, Cockerell Dermatopathology (CDP), for submitting nearly $4.2 million in fraudulent claims to TRICARE, announced Acting U.S. Attorney Prerak Shah.
According to allegations in a civil complaint filed Monday, Dr. Clay Cockerell, 64, knowingly permitted a laboratory management company to use his clinic’s lab license to submit false claims to federal health insurance programs, including TRICARE, for medically unnecessary tests.
The complaint alleges that in March 2015, Dr. Cockerell signed an agreement that authorized the management company, Progen, to use CDP’s CLIA lab license to submit claims for payment for toxicology and pharmacogenomic tests. In return, Progen agreed to pay CDP twenty percent of the net revenue from those tests.
In an attempt to avoid the reach of the federal Anti-Kickback Statue (AKS), Dr. Cockerell specified that CDP would not provide any testing services to beneficiaries of federal health insurance programs, such as TRICARE, Medicare, or Medicaid, or collect any federal revenue.
According to the complaint, Dr. Cockerell quickly became aware that Progen was violating their agreement and submitting claims to federal healthcare programs. He also learned that Progen was engaged in gross mismanagement and abusive practices, and even received warnings that CDP was violating the False Claims Act.
Meanwhile, Progen marketers were offering $50 Wal-Mart gift cards to induce TRICARE beneficiaries to provide urine and saliva for expensive, medically unnecessary testing.
Despite these and other red flags, the complaint alleges that Dr. Cockerell continued to permit Progen, using CDP’s license, to submit fraudulent claims to TRICARE.
The complaint also alleges that, after multiple patient complaints, CDP sent TRICARE a retraction letter in January 2016, admitting to receiving over $900,000 for improper claims. Despite this, Dr. Cockerell continued to let Progen submit lab claims to TRICARE using his CLIA license.
In June 2016, a CBS News story aired about the Wal-Mart gift card scheme. Shortly thereafter, CDP sent another retraction letter to TRICARE and admitted receiving an additional $3.2 million for false claims. While CDP stated that it would refund TRICARE for all of these erroneous claims, it never did.
In November 2016, as CDP was under federal investigation, Dr. Cockerell terminated his relationship with Progen. CDP later filed an arbitration claim against Progen and its principals, seeking indemnification for the millions of dollars it allegedly intended to repay to TRICARE. As described in the government’s complaint, Progen settled this litigation in March 2019 for $3.485 million. In a memorandum explaining the purpose of the settlement payment, Dr. Cockerell and CDP represented that they would use the settlement proceeds to repay TRICARE. But they never did.
The government is now seeking to recover the millions in TRICARE payments that CDP previously admitted were improper, or, at a minimum, the $3.485 million that CDP and Dr. Cockerell agreed that they would pay to TRICARE. The False Claims Act allows for treble damages and statutory civil penalties.
The claims against Dr. Cockerell and CDP are merely allegations until they are proven in court.
The Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorney Richard Guiltinan is handling the civil case, which is assigned to U.S. District Judge Jane J. Boyle.
Novus Hospice CEO Pleads Guilty to Healthcare FraudRead the Press Release
The CEO of a local hospice agency has pleaded guilty to defrauding Medicare and Medicaid, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Bradley J. Harris, the 39-year-old former head of Novus and Optimum Health Services, pleaded guilty on Friday to conspiracy to commit healthcare fraud and healthcare fraud.
“Mr. Harris scammed federal healthcare programs out of millions of dollars, and worse yet, denied vulnerable patients the medical oversight they deserved, writing pain prescriptions without physician input and allowing terminally ill patients to go unexamined,” said Acting U.S. Attorney Prerak Shah. “The Justice Department cannot allow unscrupulous business people to interfere with the practice of medicine. We are determined to root out healthcare fraud.”“In addition to causing fraudulent billing for tens of millions of dollars, Mr. Harris preyed upon patients and families that did not have a true understanding of Novus and hospice services. The core of the company was rooted in deception, and the lack of physician oversight allowed Mr. Harris to make medical decisions for his own financial benefit,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We will continue to work tirelessly with our state and federal partners to hold those who commit health care fraud accountable and 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.
The defendant now faces up to 14 years in federal prison. His sentencing hearing has been set for Aug. 3 before Chief U.S. District Judge Barbara M.G. Lynn.
Ten of Mr. Harris’ codefendants, including Dr. Leach, have already pleaded guilty. Four more, including Dr. Gibbs and Dr. Hirjee, are slated for trial on April 5.
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, Marty Basu, and Chad Meacham are prosecuting the case.
NDTX Round up: March 12-18Read the Press Release
SENTENCING – RENE RANGEL-MANJARREZ
On March 12, Rene Rangel-Manjarrez, 34, was sentenced to 13 months in federal prison for making a false statement during the purchase of a firearm. Rangel-Manjarrez was recruited and paid money by Jose Celby Hernadez to purchase firearms on behalf of Hernandez. Rangel-Manjarrez traveled from Brownsville, TX to Pleasanton, TX to purchase firearms from a licensed dealer. He stated on ATF Form 4473s that he was the actual buyer of the firearms, when in fact he was not. He purchased the firearms on behalf of and for Hernandez. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
GUILTY PLEA – ERIC GRZYWINSKI
On March 16, Eric Grzywinski, 49, plead guilty to attempted production of child pornography. Law enforcement received a cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning a suspicious social media user on Twitter that was posting images of child pornography to his social media page. Grand Prairie Police obtained a search warrant for the individual’s account which was traced back to a local motel. A hotel employee identified Grywinski to law enforcement as a hotel customer. In August 2019, law enforcement arrested Grzywinski on child pornography charges. During a post arrest interview, he admitted to chatting with a minor from Alabama on a dating app. Grzywinski admitted to exchanging lewd and lascivious images with her and posting images on Twitter that could be considered alarming. Grywinski faces up to 50 years in federal prison for his crimes. The FBI and the Garland Police Department conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting this case.
GUILTY PLEA – MA EUGENIA CERVANTES PASTRANA
On March 18, Ma Eugenia Cervantes Pastrana, 38, plead guilty to conspiracy to possess with intent to distribute a controlled substance. In March 2019, Pastrana agreed to transport a loaded vehicle for a drug trafficking organization. Pastrana believed she was transporting bulk proceeds of drug trafficking that were concealed in the vehicle she was driving. Law enforcement stopped Pastrana in Hunt County, Texas and located approximately 24 kilos of heroin in the vehicle. She now faces up to 20 years in federal prison for her crimes. The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.