Northern District of Texas
Press releases recorded for this federal judicial district.
14 Defendants Sentenced to 74+ Years in Forest Park Healthcare FraudRead the Press Release
Fourteen defendants convicted in the Forest Park Medical Center bribery scam have been sentenced to a combined 74+ years in federal prison and ordered to pay a total of $82.9 million in restitution, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Seven defendants – Wilton McPherson “Mac” Burt, Jackson Jacob, Douglas Sung Won, Michael Bassem Rimlawi, Shawn Mark Henry, Mrugeshkumar Shah, and Iris Kathleen Forrest – were convicted at trial in April 2019, and were sentenced this week by U.S. District Judge Zack Zouhary. Ten other defendants pleaded guilty prior to trial, and one, who was granted a mistrial, pleaded guilty after trial.
“Patient needs, not physician finances, should dictate where, when, and how patients are treated. Money should never be allowed to influence medical decisions,” said Acting U.S. Attorney Prerak Shah. “We believe the stiff sentences handed down this week send a strong deterrent message: Violate anti-kickback laws, and you will face consequences.”The $200 million scheme was designed to induce doctors to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital.
Most of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money” doled as a percentage of surgeries each doctor referred to Forest Park.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
Hospital manager Alan Andrew Beauchamp – who pleaded guilty in August 2018 to one count of conspiracy to pay healthcare bribes and one count of commercial bribery under the Travel Act, then testified for the government during his coconspirators’ trial – admitted that Forest Park “bought surgeries,” and then “papered it up to make it look good.” Mr. Beauchamp was sentenced Friday afternoon to 63 months in federal prison.
Other defendants were sentenced as follows:
- Wilton “Mac” Burt, Forest Park’s managing partner, was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering. He was sentenced Wednesday to 150 months in federal prison.
- Jackson Jacob, owner of the shell companies through which some of the bribes were routed, was found guilty on four of 14 counts, including conspiracy and three counts of paying kickbacks. He was sentenced Wednesday to 96 months in federal prison.
- Dr. Douglas Won, a spinal surgeon, was found guilty on one of two counts, conspiracy. He was sentenced Thursday to 60 months in federal prison.
- Dr. Michael Rimlawi, a spinal surgeon who partnered with Won, was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks. He was sentenced Thursday to 90 months in federal prison.
- Dr. Shawn Henry, a spinal surgeon who invested in FMPC, was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering. He was sentenced Wednesday to 90 months in federal prison.
- Dr. Mrugeshkumar Shah, a pain management doctor, was found guilty on four of four counts, including conspiracy, two counts of paying kickbacks, and one count of commercial bribery. He was sentenced Thursday to 42 months in federal prison.
- Iris Forrest, a nurse who recruited and preauthorized worker’s comp requests, was convicted on two of two counts, including conspiracy and paying kickbacks. She was sentenced Wednesday to 36 months in federal prison.
- Israel Ortiz, the founder of Kortmed, a company that fills out preauthorization for worker’s comp patients, pleaded guilty in February 2017 to conspiracy to pay and receive healthcare kickbacks. He was sentenced Thursday to 12 months in federal prison.
- Dr. Wade Neal Barker, a bariatric surgeon who co-founded Forest Park in 2008, pleaded guilty in October 2018 to one count of conspiracy to pay health care bribes and one count of paying illegal remuneration in violation of the Travel Act. He was sentenced Thursday to 60 months in federal prison.
- Andrew Jonathan Hillman, a co-owner of Hospital Business Concepts, a surgeon brokerage, pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes. He was sentenced in December 2019 to 60 months in federal prison.
- Dr. Frank Gonzalez, a chiropractor who referred patients to Forest Park in return for bribes, pleaded guilty in August 2018 to conspiracy to pay and receive healthcare kickbacks. He was sentenced Friday to 21 months in federal prison.
- Semyon Narosov, a co-owner of Hospital Business Concepts, pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes. He was sentenced in July 2020 to 51 months in federal prison.
- Dr. Richard Toussaint Jr., an anesthesiologist who co-founded Forest Park in 2008, pleaded guilty in March 2017 to one count of conspiracy to pay health care bribes and one count of paying illegal remuneration in violation of the Travel Act. He was sentenced in August 2020 to 60 months in federal prison.
- Carli Adel Hempel, who pleaded guilty in July 2019 to conspiracy to misapply property of a health care benefit program, was sentenced in October 2020 to three years’ probation.
- Kelly Wade Loter and Andrea Kay Smith, who both pleaded guilty to misprision of a felony (failure to report a felony), were sentenced in January 2020 to three and five years’ probation, respectively.
The Forest Park prosecution is one of the first cases in the nation to use the federal Travel Act to prosecute healthcare fraud.
In addition to the $82.9 million restitution, the government plans to collect more than $25.5 million in money judgments against those convicted in the Forest Park scheme.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle (fmr), Marcus Busch, Mark Tindall (fmr), and Gail Hayworth prosecuted the case.
- Wilton “Mac” Burt, Forest Park’s managing partner, was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering. He was sentenced Wednesday to 150 months in federal prison.
NDTX Round up: March 5-11Read the Press Release
SENTENCING – LEONEL GENARO YANEZ
On March 5, Leonel Yanez, 47, was sentenced to 135 months in federal prison for possession with intent to distribute a methamphetamine. Yanez, an illegal immigrant from Morelia, Mexico, met an individual in Mesquite, Texas where he purchased car audio speakers which he knew contained 20 kilograms of methamphetamine. Yanez planned to distribute the narcotics to an individual who was taking the speakers to Florida. This DEA conducted the investigation. Assistant U.S. Attorney Rachael Jones prosecuted the case.
SENTENCING – JOSE ALBERTO HINOJOSA
On March 10, Jose Alberto Hinojosa, 28, was sentenced to 40 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. In February 2019, Hinojosa was stopped by a Perry County, Mississippi sheriff’s deputy. During a roadside investigation, Hinojosa admitted to law enforcement that he had been smoking methamphetamine. A further search of his vehicle revealed approximately $29,000 in currency. Hinojosa gave a statement to law enforcement that he had picked up five kilograms of methamphetamine from a friend in Dallas to transport to Tampa, Florida. While in Tampa, he received further instructions regarding the delivery of the methamphetamine. The DEA conducted the investigation. Assistant U.S. Attorney Myria Boehm prosecuted the case.
GUILTY PLEA – TANIA DELAROSA
On March 11, Tania Delarosa, 42, plead guilty to bank robbery. On March 27, 2020, Delarosa entered a Bank of America in Dallas. She presented a note to the bank teller and stated she had a gun. The note contained a threat that Delarosa would go to the teller’s house and kill her family. Immediately, the teller notified other bank employees, who in turn contacted law enforcement. Delarosa subsequently fled the bank without any cash. Delarosa was identified based on the surveillance footage and arrested after she boarded a nearby bus. She now faces up to 20 years in federal prison for her crimes. The FBI and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.
SENTENCING – CORNELIUS WALKER
On March 11, Cornelius Walker, 34, was sentenced to 25 years in federal prison for four counts of interference with commerce by robbery, and two counts of brandishing and discharging a firearm in furtherance of a crime of violence. On January 9, 2018, Walker entered a Dallas convenience armed with a firearm. He discharged a firearm in the direction of the convenience store employee causing the clerk to flee. Walker jumped over the counter and took the register tray. On January 10, Walker entered another Dallas convenience store wearing a white mask and black hoodie. Armed with a firearm, he jumped over the counter demanding cash from the convenience store employee. Fearing for his life, the employee opened the register giving Walker cash. On January 11, Walker robbed a convenience store in Richardson. While demanding cash from the store clerk, Walker shot the employee twice in the chest before fleeing. A few days later, Walker entered a Carrollton restaurant wearing a grey hoodie, grey socks on his hands, and a grey mask. He pointed a firearm at the restaurant’s general manager. Walker put the gun to another employees back while demanding cash from the restaurant. In sum from the four robberies, Walker stole $387.24. The FBI conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
Man Sentenced to 20 Years in Debit Card Theft SchemeRead the Press Release
A U.S. citizen who formerly resided in the Dominican Republic has been sentenced to 20 years in federal prison for his role in a scheme to steal debit cards from bank customers, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Gregory Jean-Louis, a 46-year-old U.S. citizen living in the Dominican Republic at the time of his crime, was charged with fraud conspiracies in the Northern District of Texas and in the Southern District of Florida in 2019 and 2020, respectively. The Florida case was transferred to the Northern District of Texas, and Mr. Jean-Louis pleaded guilty in both cases to charges of conspiracy to commit bank fraud and access to device fraud. He was sentenced today by U.S. District Judge Reed O’Connor to 240 months in federal prison and was ordered to pay more than $3.3 million in restitution to Bank of America and Citizens Bank.
During the sentencing hearing, internal investigators from Bank of America and Citizen’s Bank testified about their years-long investigation into the fraud, which revealed that the defendant and his coconspirators had victimized hundreds of customers.
According to plea papers, Mr. Jean-Louis admitted that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.
Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” – reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses.
He then directed coconspirator “runners” to steal the debit cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them.
Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania. Much of the money was wired to Mr. Jean-Louis.
The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Rob Boudreau prosecuted the case.
Serial Cell Phone Store Robber Convicted at TrialRead the Press Release
A federal jury has convicted a Long Beach, California man of committing a spree of violent cell phone store robberies, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After around two hours of deliberations, a jury on Wednesday found 49-year-old Edward Eugene Robinson guilty of conspiracy to interfere with commerce by robbery, two counts of interfering with commerce by robbery, and two counts of brandishing a firearm during a crime of violence.
According to evidence presented at trial—which included eyewitness testimony, store surveillance videos, and evidence obtained from search warrants—Mr. Robinson was the leader of a robbery crew that committed at least 15 armed robberies of cell phone stores across North Texas and Southern California in the spring and summer of 2019.
The evidence showed that during the robberies, Mr. Robinson and his accomplices would threaten store employees with guns and tasers and demand that they open the store safes where the phones and other equipment were stored. The robbers would then restrain the employees using zip-ties or cell phone chargers.
Over the course of the conspiracy, Mr. Robinson stole over $600,000 of inventory, including cell phones, tablets, and watches.
Mr. Robinson faces a minimum of 14 years and up to life in federal prison for his crimes. A sentencing date has been set for July 8. He also faces additional charges in the Central District of California.
“Mr. Robinson and his coconspirators embarked on a multi-state spree of violent robberies, putting the lives of innocent civilians at risk,” said Acting U.S. Attorney Shah. “We are grateful to the prosecutors and law enforcement partners across Texas and California who worked tirelessly to bring this criminal actor to justice.”
“The FBI focuses its investigative resources on suspects who pose the greatest safety threats to the public, including violent serial offenders who cross jurisdictional boundaries,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “In addition to stealing over $600,000 of merchandise, Mr. Robinson and his accomplices threatened dozens of employees who were in fear for their lives long after the robberies ended. The FBI’s Safe Streets Task Force and our partners will continue to seek justice for victims of violent crime.”
The other defendants in the case—Aaron Hardrick, 33, and Ncholeion Hollie, 30, both of Fort Worth, Texas—previously pleaded guilty. Mr. Hardrick pleaded guilty in 2019 to multiple federal robbery and firearms charges in North Texas and Southern California. He was sentenced to 45 years in federal prison. Ms. Hollie pleaded guilty in 2020 to one federal robbery charge in North Texas and was sentenced to 9 years in federal prison.
The Federal Bureau of Investigation Safe Streets Task Force, Fort Worth Police Department, Hurst Police Department, and Bedford Police Department conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Nancy Larson of the Northern District of Texas prosecuted the case. They received substantial assistance from Assistant U.S. Attorneys Jerry C. Yang and Peter H. Dahlquist of the Central District of California, who also prosecuted other California members of the robbery crew.
Man Who Brandished Assault Rifle at Black Lives Matter Protest Sentenced to 46 MonthsRead the Press Release
A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock has been sentenced to 46 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Emmanuel Quinones, a 25-year-old local, was charged via criminal complaint in early June and indicted a week later. He pleaded guilty to interstate threatening communications in September and was sentenced on Tuesday by U.S. District Judge James Wesley Hendrix.
“The Department of Justice stands firmly against anyone and everyone who seeks to instill terror and encourage violence,” said Acting U.S. Attorney Prerak Shah. “This sentence sends a clear message that our office will continue to work with our law enforcement partners to apprehend and charge all violent instigators, while protecting those who want to lawfully exercise their constitutional rights.”
“Together, our local, state, and federal partners work to protect those participating in legitimate, peaceful protests,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The intimidating and violent behavior exhibited by Mr. Quinones while individuals exercised their First Amendment rights has been swiftly answered with today’s sentence.”
According to plea papers, Mr. Quinones admitted he brought a loaded Smith & Wesson .223 caliber semi-automatic rifle to a protest decrying the death of George Floyd. He also admitted that, prior to the protest, he posted threatening messages online. For example, in a May 28 Facebook post, he intimated that he planned to obtain gun parts “to off racists and MAGA people.”
In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. (Although Texas is an open-carry state, the Texas Penal Code makes it illegal to display a firearm in a public place “in a manner calculated to alarm.”) He refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun and a protestor moved to tackle him. As he was taken into custody, Mr. Quinones allegedly shouted “this is a revolution” and “President Trump must die.”
The Federal Bureau of Investigation Dallas Field Office, Lubbock Resident Agency, the United States Secret Service, the United States Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
Lubbock Area Bank Robber Sentenced to 20 Years in PrisonRead the Press Release
A Lubbock area bank robber was sentenced to 20 years in federal prison, the statutory maximum, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Eric Dion Warren, 50, plead guilty to bank robbery in August 2020 and was sentenced Tuesday by U.S. District Judge James Wesley Hendrix.
According to court documents, on June 7, 2019, at approximately 12:45 p.m., Mr. Warren entered AIM Bank in Wolfforth, Texas. He approached one of the tellers and placed a paper fast food bag and a demand note on the counter which read: “This is a f------ robbery. Play with me and die. I want $10,000 in 50 and 100 dollar bills now you got 1 minute or I will kill you.” Mr. Warren then pulled out what appeared to be a handgun and said, “I ain’t playing around, I only want 100s and 50s.”
The teller gave Mr. Warren money from her drawer including strapped twenty-dollar bills with recorded serial numbers. After the teller placed the money in Mr. Warren’s bag, he said, “Don’t push any buttons” and then fled the scene with several thousand dollars currency.
Mr. Warren admitted to driving away in a vehicle that had been loaned to him by a car dealership, while the sale of a black BMW was being finalized. Approximately 15 minutes after the robbery took place, Mr. Warren arrived in the loaned vehicle at the car dealership in Lubbock. Mr. Warren began waving the cash that he had illegally obtained from the bank robbery at employees in the car dealership. He entered the dealership’s finance office and attempted to finalize the purchase of the BMW by giving the dealership $3,000 cash as a down payment.
While Mr. Warren was in the dealership’s finance office, an employee received a phone call informing him of the recent bank robbery. The employee realized that the vehicle used in the bank robbery matched the vehicle the dealership had loaned to Mr. Warren and he alerted law enforcement.
Mr. Warren was arrested with $5,086 in cash. The serial numbers of the money found on Mr. Warren’s person were cross-referenced and matched the numbers of the bills stolen from AIM bank. Law enforcement also recovered a painted pellet gun, resembling a real handgun, approximately 10 feet way from Mr. Warren at the time of his arrest. The demand note given to the teller at the bank was analyzed and confirmed the existence of Mr. Warren’s fingerprints and DNA.
The FBI’s Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
31 Texas Minors Recovered in “Operation Missing in the Metroplex”Read the Press Release
The United States Attorney’s Office for the Northern District of Texas announced today that 31 DFW-area children have been located, recovered, or rescued as a result of “Operation Missing in the Metroplex,” a month-long operation led by the U.S. Marshals Service and Homeland Security Investigations.
The federal agencies partnered with four local police departments – the Arlington Police Department, the Dallas Police Department, the Fort Worth Police Department, and the Grand Prairie Police Department – to locate the missing minors.
Analysts with the Texas Department of Public Safety’s Missing & Unidentified Persons Unit and the Texas Department of Family & Protective Services provided critical intelligence. Local nonprofit 4theONE provided 24-hour support and relayed numerous tips that culminated in recoveries.
“To observe law enforcement partnerships and community concerns culminate into such a successful recovery outcome is rewarding,” said Acting United States Marshal Quintella Downs-Bradshaw. “Victims should know they are not forgotten, there is hope and a way to return home.”
“While this joint operation lasted approximately 30 days, HSI Dallas will continue working relentlessly to identify and recover missing children who become vulnerable to human traffickers across the North Texas region,” said HSI Dallas Special Agent in Charge Ryan L. Spradlin. “Our continued collaboration with our local, state and federal law-enforcement partners and non-governmental organizations is vital to combatting this global epidemic.”
At least seven recoveries were of critically missing children with ties to sex trafficking. Noteworthy cases include:
- A 15-year-old Jane Doe recovered by Dallas Police at a residence in Dallas following a tip by a confidential source.
- A 17-year-old Jane Doe recovered by Dallas Police inside a vehicle in Dallas.
- A 16-year-old Jane Doe recovered by Arlington Police inside a residence in Kerens, TX following an analysis of social media.
- A 13-year-old Jane Doe recovered by Fort Worth Police inside an apartment in Fort Worth.
- A 15-year-old Jane Doe from Fort Worth recovered in an Uber in Houston during a prostitution sting.
- A 16-year-old Jane Doe recovered by Fort Worth Police at a “john’s” house in Fort Worth.
- A 16-year-old Jane Doe recovered by Dallas Police walking on Lancaster Blvd.
The remaining 24 children were recovered from friends or relatives, reunited with their legal guardians, and removed from the missing children database.
“We are grateful to be a part of a coalition of extraordinary law enforcement agencies who were dedicated in reuniting these children with their loved ones. It is our hope that each of them will be able to put this traumatic experience behind them and move forward to have a happy and productive life,” said Dallas Police Department Chief of Police Eddie Garcia.
“We will continue to work with local, state, and federal partners to identify and rescue missing children,” said Arlington Chief of Police Al Jones. “These kids and teens represent some of our most vulnerable populations where adults try to prey on their innocence. We will not rest until every child is located safe and someone is held accountable.”
“It is imperative that we continue to work with our partners to protect the most vulnerable members of our community, our children. We value our state and federal partnerships and were honored to be included as part of ‘Operation Missing in the Metroplex.’ We will continue to work closely with our law enforcement partnerships in locating missing children and reuniting them with their families. Human trafficking is a serious issue and we will not rest until our most vulnerable population are safe,” said Fort Worth Police Department Chief Neil Noakes.
The Justice Department records more than 420,000 reports of missing children each year. For decades, the U.S. Marshals Service, Homeland Security Investigations, and state and local authorities have worked relentlessly to recover children who have been abducted, enticed, lost, or run away.
If your child is missing, call local law enforcement immediately, and provide them with your child’s name, height, weight, any other descriptive identifiers (glasses, braces, etc), and the circumstances under which they went missing. Then, consider calling the National Center for Missing & Exploited Children at 1-800-THE-LOST (1-800-843-5678) for additional support.
Sweetwater Man Pleads Guilty to $12.3 Million Wire Fraud SchemeRead the Press Release
A former Sweetwater business owner plead guilty today to engaging in a $12.3 million wire fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Stewart Kile Williams, 31, plead guilty to two counts of wire fraud and two counts of engaging in monetary transactions in property derived from unlawful activity.
According to court documents, Mr. Williams committed his crimes in the Northern District of Texas after engaging in another fraud scheme in the Southern District of Texas where he pleaded guilty to four counts of wire fraud. Mr. Williams was sentenced to serve 70 months in federal prison and ordered him to pay $2,071,925 in restitution for his crimes in the Southern District of Texas.
While on pretrial release in the Southern District of Texas, Mr. Williams formed AZS Trenching, an unregistered sole proprietorship. The company provided freight and trenching services in the West Texas Permian Basin.
In January 2019, Mr. Williams and Navarone Capital, LLC, a privately held business in Midland, Texas, entered into an agreement under which AZS Trenching sold its accounts receivable to Navarone in a process called “factoring.” This allowed Mr. Williams to receive cash up front from Navarone for a portion of the value of services listed on his invoices. Under the agreement, Navarone confirmed the invoices with the respective companies for which AZS Trenching was performing work and then paid Mr. Williams for the invoices.
In March 2019, Mr. Williams sought an additional factoring agreement for work AZS Trenching was purportedly performing for HIS Pipeline Company. Navarone performed due diligence and required assurances from HIS Pipeline. Mr. Williams completely fabricated a relationship with HIS and created bogus invoices for work AZS Trenching did not perform, and never planned to perform, for HIS.
Mr. Williams admitted to fabricating invoices and assuming the identity of an HIS employee. To further his scheme, Mr. Williams acquired a cell telephone with a Louisiana area code where HIS is based. He also acquired an email address under the assumed name. Mr. Williams then communicated with Navarone via telephone and email under the guise of the HIS employee. During each communication, he assured Navarone that AZS Trenching was performing the work on the fabricated invoices. Mr. Williams used the fraudulent pretenses to encourage Navarone to front money for the bogus invoices.
In sum, Mr. Williams created 38 fictitious invoices totaling more than $12.3 million. Using the criminally derived funds, Mr. Williams purchased a number of items, including farm equipment and a new home.
Mr. Williams faces up to 60 years in federal prison for crimes committed in the Northern District of Texas.
Internal Revenue Service-Criminal Investigations, United States Postal Inspection Services, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Ann Howey is prosecuting the case.
Two Ukrainian Nationals Extradited to U.S. on Money Laundering ChargesRead the Press Release
Two members of an international organized network that provided cash-out and money laundering services to cyber actors were extradited from the Czech Republic to Dallas.
Viktor Vorontsov, 39, and Zlata Hanska Muzhuk, 40, were charged in a one-count indictment with conspiracy to launder funds filed in February 2020 in the Northern District of Texas.
According to the indictment, Muzhuk and Vorontsov were allegedly members of an international organized network providing cash-out and money laundering services to cyber actors who used stolen bank login credentials to initiate fraudulent electronic funds transfers from victims’ bank accounts to bank accounts (drop accounts) created and controlled by the cash-out actors. For a fee, Muzhuk and Vorontsov provided a network of drop accounts and money mules to receive, transfer, and conceal money derived from the fraudulent online transfers of funds. The indictment alleges the conspiracy existed for the entirety of 2017 and focused on seven electronic funds transfers in October and November 2017, totaling almost $500,000.
During the FBI’s investigation of Muzhuk and Vorontsov, the Czech National Organized Crime Agency (NCOZ) collaborated to gather information and evidence. In late January 2020, NCOZ informed the FBI that Muzhuk was visiting Vorontsov at his residence in the Czech Republic. A criminal complaint and an arrest warrant were issued by a U.S. Magistrate Judge in Dallas and an FBI special agent from Dallas traveled to the Czech Republic to coordinate with the NCOZ.
In an unprecedentedly prompt response on Feb. 6, 2020, the NCOZ effected the arrests of Muzhuk and Vorontsov at the request of the U.S. and seized valuable evidence from both defendants and from Vorontsov’s residence. Muzhuk and Vorontsov were detained pending the extradition proceedings. On Dec. 4, 2020, and Jan. 21, 2021, respectively, the Ministry of Justice of the Czech Republic granted the extradition of Muzhuk and Vorontsov. The defendants were transferred to FBI custody on March 3, 2021 and were flown from Prague to Dallas.
Vorontsov and Muzhuk appeared before U.S. Magistrate Judge Toliver in the Northern District of Texas and entered not-guilty pleas to the charges. Vorontsov and Muzhuk remain in the custody of the U.S. Marshals Service.
The FBI’s Dallas Field Office conducted the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from the Czech Republic.
Senior Trial Attorney C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Robert Nichols of the Northern District of Texas are prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
NDTX Round up: February 26 - March 4Read the Press Release
SENTENCING – GERSON GAMALIEL ROJO GUZMAN
On February 26, Gerson Gamaliel Rojo Guzman, 31, was sentenced to 7 years for possession with the intent to distribute a controlled substance. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash. This case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
SENTENCING – JOSE CELBEY HERNANDEZ
On March 1, Jose Celbey Hernandez, 30, was sentenced to 41 months in federal prison for conspiracy to smuggle goods from the United States. Hernandez and a coconspirator worked together to purchase firearms from individuals and licensed dealers for the purpose of exporting them to individuals in Mexico. They traveled to several locations in Texas to purchase firearms. Hernandez provided money to the coconspirator to illegally purchase firearms before turning them over to him. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
GUILTY PLEA – DEZIREE LUJAN
On March 2, Deziree Lujan, 29, plead guilty to tampering with a witness or victim. In August 2020, Lujan used social media in an attempt to hinder and prevent a victim’s testimony against a sex trafficking defendant. In one such attempt, Lujan revealed the identity of the victim on social media and threatened the victim with physical violence. During this same timeframe, Lujan was reaching out privately to known pimps on social media and revealing the victim’s identity and further threatening physical harm due to her involvement in a federal prosecution. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Melanie Smith is prosecuting the case.
Dallas Tax Preparer Sentenced, Ordered to Pay $11.9 Million for Filing Fraudulent Tax ReturnsRead the Press Release
A North Dallas tax return preparer was sentenced to 3½ years in prison and ordered to pay $11.9 million in restitution for filing fraudulent income tax returns, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Alma Jean Gilbert, 54, pleaded guilty to aiding and assisting in the preparation of a materially false tax return in October 2019. She was sentenced Friday by U.S. District Judge Barbara M.G. Lynn.
According to plea papers, since 2011, Ms. Gilbert has owned and operated In Touch Tax Solutions in Dallas. In 2016, she opened an additional office in Mesquite and hired employees to prepare and file tax returns on behalf of clients there.
Between 2012 and 2017, Mrs. Gilbert knowingly prepared and caused to be filed hundreds of fraudulent tax returns for clients.
The fraudulent returns contained materially false credits and deductions – including false education credits, fuel tax credits, and business losses – for the purpose of increasing the refunds to the clients.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney David Jarvis prosecuted the case.
NDTX Round up: February 19-26Read the Press Release
SENTENCING – ILDERALDO DEANDRE LIMA-MOSLEY
On February 22, Ilderaldo Deandre Lima-Mosley, 32, was sentenced to 2 years in federal prison for felon in possession of a firearm. In May 2020, Lima-Mosley, a previously convicted felon, met an individual at a Dallas area tobacco shop to sell a .380 pistol and several magazines containing ammunition for $740. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – SALVADOR GALLEGO
On February 25, Salvador Gallego, 29, plead guilty to possession with the intent to distribute a controlled substance. In June, Gallegos sold one kilogram of methamphetamine to another person for $7,000. Five days later, law enforcement executed a search warrant at a location used by Gallegos to process methamphetamine. Agents seized multiple kilograms of methamphetamine, $279,491 in drug proceeds, a firearm, and a drug ledger. Gallego faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting the case.
SENTENCING – ALMA JEAN GILBERT
On February 26, Alma Jean Gilbert, 52, was sentenced to 42 months in federal prison and ordered to pay $11,991,265 restitution for aiding and assisting in the preparation of a fraudulent tax return. Gilbert owned a tax preparation business, where she hired employees to prepare taxes and obtained Electronic Filer Identification Numbers from the Internal Revenue Service. Between 2012 and 2017, Gilbert knowingly prepared and caused to be filed hundreds of fraudulent tax returns for clients. The fraudulent tax returns contained materially false credits and deductions for the purpose of increasing the refunds to the clients. Some of the false items include education credits, fuel tax credits, and business losses. This case was investigated by the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney David Jarvis prosecuted the case.
Two Men Plead Guilty to Looting Artifacts from Federal LandRead the Press Release
Two men pleaded guilty this week to illegally excavating approximately 1,500 artifacts from federal land, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jeffrey Alan Vance, 37, of San Marcos, and Dax Wheatley, 32, of Amarillo, pleaded guilty this week to violating the Archeological Resource Protection Act (ARPA).
“Looting from federal lands will always trigger swift enforcement action,” said Acting U.S. Attorney Prerak Shah. “The Justice Department will not stand for the theft of precious cultural artifacts. We are working aggressively to safeguard our nation’s Native American heritage and root out those who violate the law.”
“The federal law enforcement officers of the Bureau of Land Management and our state archaeologists work tirelessly to protect our nation’s natural and cultural resources,” said Eric A. Kriley Director of the BLM’s Office of Law Enforcement and Security. “I hope the sentences in this case will deter others from illegally collecting and trading in Native American cultural artifacts and other items protected by the Archeological Resources Protection Act of 1979 and the Native American Graves Protection and Repatriation Act. I want to thank the United States Attorney’s Office for their outstanding cooperation and commitment in the prosecution of this case.”
In March 2019, the Bureau of Land Management (BLM) received a tip that an illegal excavation had occurred on a Native American cultural site at the Cross Bar Management Area, just north of Amarillo, Texas. BLM determined that the illegal excavation took place at a site known as 41PT109 – a former homestead of the Antelope Creek Culture, Native Americans who lived in the Texas panhandle between approximately 1200-1500 A.D.
A BLM agent received information that a person, later identified as Mr. Vance, had posted photographs of the illegal excavation on social media. While commenting on the photo, a Facebook user informed Mr. Vance that the area he was “digging in is federal land and Rangers enforce” there. Mr. Vance replied, “I’m not scared of the feds.”
Mr. Wheatley also posted photographs of illegal excavations that he and Mr. Vance conducted at a U.S. Army Corps of Engineers site in Austin, Texas. Mr. Vance posted more information on social media about other dig sites in the Austin, Texas area and the San Marcos, Texas area.
According to plea papers, a search warrant was executed at the homes of both Mr. Vance and Mr. Wheatley in November 2019. Mr. Vance admitted that there were human remains inside his residence and Mr. Wheatly had a photograph of the excavation site 41PT109 taped to his refrigerator.
Law enforcement sized Mr. Vance’s cell phone and conducted a forensic analysis. He had several discussions with people about selling the illegally obtained Native American artifacts and remains. In one text message, Mr. Vance stated, “Don’t be telling people we are digging on government property!” Vance also bragged that he is an “infamous illegal excavator of Native American artifacts in Texas” and that he is “a criminal.”
In total, approximately 1,500 artifacts were recovered by federal authorities including burial beads and petrified wood. BLM will consult with the appropriate tribes to determine cultural affiliation and to facilitate repatriation of the remains and artifacts.
Each defendant faces up to 2 years in federal prison and restitution for their crimes.
The Bureau of Land Management, FBI Evidence Recovery Team, National Parks Service, Texas Parks and Wildlife, U.S. Army Corps of Engineers, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.
Jennifer Faith Charged with Obstructing Investigation into Husband’s DeathRead the Press Release
The wife of a Dallas man allegedly gunned down by her paramour has been charged with obstruction of justice, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jennifer Lynne Faith, 48, was arrested at her residence in Oak Cliff on Wednesday, charged via criminal complaint with one count of destruction of an object with the intent to obstruct a federal investigation. The complaint was unsealed on Thursday. Ms. Faith will make her initial appearance before U.S. Magistrate Judge Renee Toliver on Friday.
“Even as she publicly claimed she was ‘desperate for answers’ regarding her husband’s murder, Jennifer Faith was communicating with the alleged killer, actively urging him to destroy evidence and attempting to delete incriminating communications from her phone,” said U.S. Attorney Prerak Shah. “Thanks to the dedication of our agents and officers, Ms. Faith could not keep law enforcement from identifying her husband’s killer. Even so, we cannot allow her obstruction of justice to stand. We are determined to hold her accountable for her crime.”
“Sometimes things just aren’t what they seem. Special Agents and Detectives knew Mrs. Faith was hiding something and were able to expose her darkest secrets. She was indeed entangled with the man we believe to have murdered her husband,” stated ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II. “Her cowardly attempts to utilize the media to conceal her involvement did not hamper relentless investigators. She will now face the consequences for her misdeeds.”
“I am pleased to see that there were no stones left unturned during the course of this investigation, and that our collaborative efforts have brought those involved to justice,” said Dallas Police Department Chief Eddie Garcia. “I am also excited to continue this partnership with the USDOJ in our ongoing determination to remove the criminal elements off the streets.”
According to the complaint, a search of Ms. Faith’s phone revealed she was having what she described as “a full-blown emotional affair” with Darrin Ruben Lopez, the 48-year-old Tennessee man who allegedly murdered Ms. Faith’s husband, James Faith, on Oct. 9, 2020.
Investigators determined that Mr. Lopez drove from his home in Tennessee on Oct. 9 to the Faiths’ home in Dallas, where he allegedly laid in wait until the couple left to walk their dog, then shot Mr. Faith seven times before fleeing the scene.
Ballistic tests proved that a .45 caliber handgun found inside Mr. Lopez’s home on Jan. 11, 2021 was the weapon used to kill Mr. Faith. Law enforcement agents also learned that Mr. Lopez owned a Nissan Titan pickup that matched witnesses’ description of the shooter’s vehicle. In November, law enforcement agents in Tennessee observed a distinctive “T” decal on the truck’s back window, which matched witness’ descriptions of a “T” sticker on the rear window of the shooter’s truck.
In an interview with law enforcement in January, Ms. Faith allegedly admitted that she communicated daily with Mr. Lopez via cell phone, but denied an intimate relationship.
An analysis of Mr. Lopez’s cell phone, seized after his arrest on Jan. 11, revealed that Ms. Faith and Mr. Lopez were intimately involved. Ms. Faith used her cell phone to update Mr. Lopez on her efforts to collect on Mr. Faith’s life insurance policy and to coach Mr. Lopez on how to respond to potential police questioning.
Text messages revealed that even as she publicly projected the grieving widow persona on TV, privately, Ms. Faith instructed Mr. Lopez to remove the distinctive “T” decal off of his truck – the same decal that witnesses had reported to law enforcement on the day of the murder.
“So I woke up in a little bit of a panic… something is eating away at me telling me you need to take the sticker out of the back window of the truck,” she texted Mr. Lopez on Dec. 3.
“I don’t want to just take it off all at once the girls would notice that,” he responded thirty minutes later. “But I have been working on it.”
“I have a bad feeling and I really think you need to get that sticker off ASAP….like today,” Ms. Faith texted the following day.
“Sticker done,” Mr. Lopez responded on Dec. 6, confirming he had removed the “T” sticker from his truck as Ms. Faith had instructed.
“Oh YAY!!! Thank you!!” Ms. Faith replied. “I feel SOOOOOO much better.”
Law enforcement agents conducting surveillance in Tennessee noted that the “T” sticker had been removed from Lopez’s vehicle when they observed the truck on Dec. 8.
Then, on Jan. 10, a day before Ms. Faith was scheduled to be interviewed by police, Ms. Faith texted Mr. Lopez and told him she planned to wipe down the contents on her cell phone prior to meeting with investigators.
“Don’t text me Monday. I am going to factory reset my phone on Sunday night after deleting texts,” Ms. Faith texted.
“If asked about you, you are an old friend going through a divorce. We talk every night because I am helping/giving support with the girls since you have sole custody. If it ever comes to it, I’ll answer the same way. Just so you and I have the same explanations. Just thinking in case they [law enforcement] pulled phone records and asked,” she added.
After meeting with Ms. Faith on Jan. 11, investigators searched her cell phone and determined she had deleted most of the text messages from her phone, including her texts with Mr. Lopez.
Despite the factory reset of Ms. Faith’s cell phone, investigators were able to recover the deleted text messages off of Mr. Lopez’s cell phone.
Mr. Lopez has been charged by the state with murder and by the feds with transporting a firearm in interstate commerce.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Ms. Faith and Mr. Lopez are presumed innocent until proven guilty in a court of law.
If convicted, Ms. Faith faces up to 20 years in federal prison on the obstruction count. Mr. Lopez faces up to 10 years in federal prison on the federal firearm count and up to life in a state penitentiary on the murder charge brought by Dallas County.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department’s Homicide Unit conducted the investigation with the assistance of the ATF’s Nashville Field Office, the Federal Bureau of Investigation’s Dallas Field Office, Homeland Security Investigations, the Tennessee Bureau of Investigation’s Aviation Unit, and the U.S. Attorney’s Office for the Middle District of Tennessee. NDTX Assistant U.S. Attorney Rick Calvert is prosecuting the case.
Fort Worth Doctor Sentenced to 10 Years in Health Care Fraud ConspiracyRead the Press Release
A Fort Worth osteopath who attempted to incinerate clinic records has been sentenced to 10 years in federal prison for his role in a $10 million healthcare fraud, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Mark Kuper, the 43-year-old owner of the Texas Center for Orthopedic and Spinal Disorders (TCOSD), was indicted in June 2020. Three months later, he pleaded guilty to one count of conspiracy to commit healthcare fraud. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Mr. Kuper admitted he conspired with his wife, Melissa Kuper, and a TCOSD physical therapist, Travis Couey, to defraud Medicare, Medicaid, and TRICARE.
The defendant admitted he fraudulently billed insurers for services the clinic never actually rendered, including physical therapy and psychotherapy, and required patients to attend these bogus appointments in order to receive Schedule II controlled substance prescriptions.
He also admitted that he gave his wife access to the secure device and passcode he used to sign controlled substance prescriptions, allowing her to improperly dispense pain medications on her own initiative, without his input.
In plea papers, Mr. Kuper acknowledged that he submitted claims stating that TCOSD had developed individualized physical therapy plans of care for each patient, knowing full well that the clinic had simply issued a boilerplate template, and for one-on-one physical therapy, even though the patients were actually meeting in groups with an athletic trainer who was not qualified to perform physical therapy.
Mr. Kuper further admitted that although he billed insurers for professional 60-minute psychotherapy sessions, most patients actually spoke with unqualified professionals for just 15 to 20 minutes – often when Mr. Kuper was out of the office.
On multiple occasions, Mr. Kuper billed as though he’d provided more than 100 hours’ work in a single 24-hour day. From 2014 to 2017, he submitted more than $10 million in claims to Medicaid, Medicare, and TRICARE.
As the scheme unraveled, Ms. Kuper attempted to destroy TCOSD documents in an outdoor fireplace at their home. The blaze destroyed their residence, but firefighters were able to recover some of the charred records from the outdoor fireplace.
Mr. Kuper also tried to cover up evidence of the fraud by accessing hundreds of electronic patient records and altering the purported treatment notes to make them appear more comprehensive.
Both Ms. Kuper and Mr. Couey pleaded guilty in September 2020 to conspiracy to commit healthcare fraud. They were sentenced to 18 months and 36 months, respectively.
A civil investigation into TCOSD began after whistleblower Richard Brown filed a qui tam suit alleging that Dr. Kuper was committing fraud through his clinic.
On May 29, 2020, the Civil Division of the U.S. Attorney’s office filed a complaint in partial intervention against Dr. Kuper, Mr. Couey, and Dr. Kuper’s clinic. The Government’s False Claims Act complaint alleged that Dr. Kuper submitted fraudulent claims for physical therapy, psychotherapy, and pain injection services to federal healthcare programs.
In addition to his guilty plea, Dr. Kuper and his clinic agreed to settle the False Claims Act lawsuit by entry of an agreed judgment against Dr. Kuper and his clinic in the amount of $11,190,222. As part of the settlement, Dr. Kuper also agreed to liquidate his real estate portfolio and other assets to satisfy the civil judgment. The whistleblower, Richard Brown, will receive 17% of the government’s recovery.
The Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Texas Medicaid Fraud Control Unit, a division of the Texas Attorney General’s Office, conducted the investigation, with assistance from the Drug Enforcement Administration’s Dallas Field Division. Assistant U.S. Attorneys Lindsey Beran and Steve Fahey, NDTX Criminal Chief, prosecuted the criminal case. Assistant U.S. Attorneys Richard Guiltinan and Kimberly McCoy handled the False Claims Act case for the United States.
Health Care Executive Sentenced to More Than 3 Years for Defrauding the IRSRead the Press Release
A health care executive was sentenced to 37 months in federal prison and ordered to pay more than $3.4 million in restitution for defrauding the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Donald O’Connor Ramsey, 72, pleaded guilty to failure to pay over withholding and FICA taxes in February 2020. Mr. Ramsey was sentenced yesterday afternoon before U.S. District Judge Sam A. Lindsay.
“Individuals and businesses that willfully fail to pay their tax obligations harm all Americans,” said Acting U.S. Attorney Shah. “The Department of Justice is committed to aggressively prosecuting those individuals who seek to circumvent U.S. tax laws.”
“I’m proud of our agent’s hard work in this investigation. This defendant ‘knowingly and willingly’ took money from his employees and failed to remit these payroll taxes to the government” said Acting Special Agent in Charge Mark Pearson, Dallas Field Office. “Mr. Ramsey’s punishment reflects the consequence of not paying taxes in a truthful and timely manner and the importance of the continued partnership between the U.S. Attorney’s Office for the Northern District of Texas and the IRS Criminal Investigation in the pursuit of these criminals.”
According to court documents, Mr. Ramsey, owner and chief financial officer of Community Care Medical (CCM) and Medical Case Management & Social Services (MCM), failed to pay employment taxes to the IRS from 2013 to 2018.
Mr. Ramsey directed CCM and MCM to withhold taxes from its employee’s paychecks, including income, Medicare, and Social Security taxes.
Both companies were required to make deposits of the payroll taxes to the IRS on a periodic basis. In addition, CCM and MCM were required to file an Employer’s Quarterly Federal Income Tax Return (From 941) which includes the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of Social Security and Medicare taxes due, and the total tax deposits.
From 2013 to 2018, Mr. Ramsey failed to regularly file quarterly returns with the IRS, while continuing to withhold his employees’ salaries.
Mr. Ramsey conduct resulted in a tax loss of approximately $1.9 million to the IRS.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Nicholas Bunch prosecuted the case.
Fraudster Sentenced to Five Years in Prison for $2 Million Ponzi SchemeRead the Press Release
A Honduran man who conned investors out of roughly $2 million has been sentenced to five years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jose Anibal Linares, 42, pleaded guilty to one count of mail fraud in October 2020. He was sentenced today to 60 months in federal prison by U.S. District Judge David C. Godbey, who also ordered him to pay more than $2.3 million in restitution. A Honduran citizen in the U.S. formerly on Temporary Protected Status, Mr. Linares may be subject to removal from the U.S. after serving his sentence.
According to plea papers, Mr. Linares admitted to running a Ponzi-type scheme, luring investors into handing over “principal” that he later deposited in bank accounts at Wells Fargo, Bank of America, and Legacy Texas, then paying them “interest” from other investors’ principal payments.
Mr. Linares, who operated JC Loans Finance and Inversiones JC Dallas, admitted he falsely told investors their funds were “insured by the FDIC” and promised monthly returns based on investments in commercial and residential real estate, including a water resort and shopping centers in Honduras. He then mailed investors letters thanking them for joining the JC “family.”
Instead of investing their money, however, Mr. Linares admits he spent substantial amounts of investor funds on personal expenditures, and even wired some of the money to family members in Honduras.
In the meantime, he made lulling payments to investors by withdrawing large sums from his Bank of America and Wells Fargo accounts, generally using funds that had been deposited immediately beforehand from other investors. On some occasions, he even took investors’ cash payments from one set of investors in his office, then turned the cash over to other investors waiting in his lobby for their monthly disbursements.
By summer 2017, Mr. Linares admits, he had ceased all monthly payments and did not return investors’ principal investments.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Katherine Miller is prosecuting the case.
Scam Alert: Fraudsters May Seek to Exploit Texas Weather DisasterRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas is on alert for fraudsters seeking to profit off of the extreme weather in Texas, warned Acting U.S. Attorney Prerak Shah.
Burst pipes, flooding, and other property damage stemming from this week’s storm may prompt unscrupulous actors to reach out to consumers with bogus insurance or home warranty information or nonexistent government grants, the U.S. Attorney’s Office said.
“Time and time again, we’ve seen scammers exploit natural disasters for personal gain,” said Acting U.S. Attorney Shah. “The last thing beleaguered Texans need right now is to fall prey to fraud. If something sounds too good to be true, it probably is. We urge consumers to exercise caution, especially when it comes to unsolicited calls, texts, or emails.”
Millions of people fall victims to scams every year. If you think you may have been preyed upon, please contact local law enforcement or submit a report to the Justice Department’s National Center for Disaster Fraud at 866-720-5721 or www.justice.gov/disastercomplaintform.
For more information on common phone and phishing scam tactics, visit the Federal Trade Commission’s website.
NDTX Round-Up: February 12-18Read the Press Release
SENTENCING – ALEXANDER CAMPBELL
On February 18, Alexander Campbell, 30, was sentenced to 188 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. In September, a co-conspirator contacted Campbell to setup a purchase of methamphetamine for a buyer. Campbell arrived a hotel in Fort Worth and provided an undercover officer with a large, clear zip-lock bag containing methamphetamine in exchange for $2,550. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Levi Thomas prosecuted the case.
GUILTY PLEA – JERRY WAYNE GILLENTINE
On February 18, Jerry Wayne Gillentine, Jr., 35, pleaded guilty to possession of child pornography. An undercover detective downloaded images of child pornography from a peer-to-peer program that identified Gillentine’s IP address. Based on the download, a search warrant was executed for Gillentine’s residence in Granbury, Texas. Gillentine stated that he was the main user of a laptop that was seized by law enforcement. A forensic examination of Gillentine’s laptop located an image depicting child pornography. Gillentine faces up to 10 years in federal prison for his crimes. This case was investigated by the FBI. Assistant U.S. Attorney Brandie Wade is prosecuting the case.
SENTENCING – JUAN JOSE ROMAN-JUAREZ
On February 12, Juan Jose Roman-Juarez, 27, was sentenced to 4 years in federal prison for illegal entry after removal from the United States. On February 16, 2019, Roman-Juarez was in the Northern District of Texas after previously removed in 2018. Roman-Juarez admits that he is not a United States citizen and was not given consent to be in the United States. This case was investigated by the Department of Homeland Security Immigration Customs Enforcement. Assistant U.S. Attorney Dimitri Rocha prosecuted the case.
SENTENCING – FERNANDO ANTONIO GONZALEZ RODRIGUEZ
On February 10, Fernando Antonio Gonzalez Rodriguez, 36, was sentenced to 1 year in federal prison for transporting illegal aliens. In August 2019, a Hunt County sheriff’s deputy stopped a vehicle with a California license plate for suspended registration. Rodriguez was the driver and there were seven passengers. During the traffic stop, Rodriguez admitted that he had picked the passengers up at a hotel in Houston and was transporting them to Chicago, as part of a larger alien smuggling organization that operates in Texas and California. Rodriguez states that this was his third trip transporting illegal aliens and that he was paid $400 for the trip. This case was investigated by HSI. Assistant U.S. Attorney Melanie Smith is prosecuting the case.
Dietary Supplement Executive Sentenced in Scheme to Fraudulently Sell Popular Dietary SupplementsRead the Press Release
A federal court in Texas sentenced a former dietary supplement company executive to prison for his role in fraudulently selling popular workout supplements, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah and Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division.
On Feb. 19, 2021, U.S. District Judge Sam A. Lindsay sentenced former S.K. Laboratories Vice President Sitesh Patel, 37, of Irvine, California, to 41 months’ imprisonment and one year of supervised release. The court previously ordered Patel’s former company, S.K. Laboratories, to forfeit $6 million in connection with the case.
According to documents filed in the case, Patel played a key role in developing and manufacturing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by Dallas-based USPlabs.
In pleading guilty in 2019 to conspiracy to introduce misbranded food into interstate commerce, Patel and several of his co-defendants admitted that they imported substances with false and misleading labeling to avoid law enforcement and regulatory agency attention.
Patel also pleaded guilty to introduction of misbranded food into interstate commerce. The misbranding charges relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the U.S. Food and Drug Administration (FDA) into whether the supplement caused liver injuries in consumers.
An indictment returned by a Dallas federal grand jury in 2015 against Patel and four other individuals associated with USPlabs alleged that the defendants sold some of their products without determining whether they would be safe to use.
“Dietary supplement manufacturers must not be allowed to mislead the public about untested ingredients mixed into their products,” said Acting U.S. Attorney Prerak Shah. “We are proud to hold this defendant accountable for lying to the public about ingredients that had the potential to cause them harm.”
“Consumers should not have to question whether the dietary supplements they find on store shelves will cause them physical harm,” said Acting Assistant Attorney General Brian Boynton. “This case demonstrates the department’s commitment to working with our agency partners to prosecute individuals and companies that defraud the public and place consumers at risk.”
“FDA regulation of the manufacturing and distribution of dietary supplements helps ensure the safety of American consumers. Illegal schemes to subvert FDA’s oversight and trick the public into buying a product that does not meet FDA standards create a serious threat to public health,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “We will continue to work with our law enforcement partners to investigate and bring to justice those who put profits ahead of the health of U.S. consumers.”
“The defendant knowingly profited by deceiving American consumers, causing harm to them by concealing the true ingredients of a product intended to improve the very health it damaged,” said Acting Special Agent in Charge Mark Pearson of the IRS-Criminal Investigation, Dallas Field Office. “Working to prosecute those people and institutions who endanger consumers is something the IRS-CI is dedicated to continuing to pursue with our partners in law enforcement.”
The court previously sentenced Jacobo Geissler, 44, of University Park, Texas, the CEO of USPlabs, to 60 months’ imprisonment, and Jonathan Doyle, 41, of Dallas, the president of USPlabs, to 24 months’ imprisonment for their roles in the fraud. The court also sentenced defendants Cyril Willson, 40, of Ralston, Nebraska, a former consultant for USPlabs, and Matthew Hebert, 42, of Dallas, a co-owner of the company, to 18 months’ and 15 months’ imprisonment, respectively. In addition, USPlabs was ordered to pay $4.7 million in criminal forfeiture.
The case was investigated by Special Agent Chad Medaris of the FDA’s Office of Criminal Investigations and Special Agent Larissa Wilson of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Patrick Runkle, David Sullivan, and Raquel Toledo with the Consumer Protection Branch of the Department of Justice’s Civil Division, and Assistant U.S. Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.
Dietary Supplement Executive Sentenced in Scheme to Fraudulently Sell Popular Dietary SupplementsRead the Press Release
A federal court in Texas sentenced a former dietary supplement company executive to prison for his role in fraudulently selling popular workout supplements, the Justice Department announced today.
On Feb. 19, 2021, U.S. District Judge Sam A. Lindsay sentenced former S.K. Laboratories Vice President Sitesh Patel, 37, of Irvine, California, to 41 months’ imprisonment and one year of supervised release. The court previously ordered Patel’s former company, S.K. Laboratories, to forfeit $6 million in connection with the case.
According to documents filed in the case, Patel played a key role in developing and manufacturing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by Dallas-based USPlabs. In pleading guilty in 2019 to conspiracy to introduce misbranded food into interstate commerce, Patel and several of his co-defendants admitted that they imported substances with false and misleading labeling to avoid law enforcement and regulatory agency attention. Patel also pleaded guilty to introduction of misbranded food into interstate commerce. The misbranding charges relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the U.S. Food and Drug Administration (FDA) into whether the supplement caused liver injuries in consumers. An indictment returned by a Dallas federal grand jury in 2015 against Patel and four other individuals associated with USPlabs alleged that the defendants sold some of their products without determining whether they would be safe to use.
“Consumers should not have to question whether the dietary supplements they find on store shelves will cause them physical harm,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “This case demonstrates the department’s commitment to working with our agency partners to prosecute individuals and companies that defraud the public and place consumers at risk.”
“Dietary supplement manufacturers must not be allowed to mislead the public about untested ingredients mixed into their products,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “We are proud to hold this defendant accountable for lying to the public about ingredients that had the potential to cause them harm.”
“FDA regulation of the manufacturing and distribution of dietary supplements helps ensure the safety of American consumers. Illegal schemes to subvert FDA’s oversight and trick the public into buying a product that does not meet FDA standards create a serious threat to public health,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “We will continue to work with our law enforcement partners to investigate and bring to justice those who put profits ahead of the health of U.S. consumers.”
“The defendant knowingly profited by deceiving American consumers, causing harm to them by concealing the true ingredients of a product intended to improve the very health it damaged,” said Acting Special Agent in Charge Mark Pearson of the IRS-Criminal Investigation, Dallas Field Office. “Working to prosecute those people and institutions who endanger consumers is something the IRS-CI is dedicated to continuing to pursue with our partners in law enforcement.”
The court previously sentenced Jacobo Geissler, 44, of University Park, Texas, the CEO of USPlabs, to 60 months’ imprisonment, and Jonathan Doyle, 41, of Dallas, the president of USPlabs, to 24 months’ imprisonment for their roles in the fraud. The court also sentenced defendants Cyril Willson, 40, of Ralston, Nebraska, a former consultant for USPlabs, and Matthew Hebert, 42, of Dallas, a co-owner of the company, to 18 months’ and 15 months’ imprisonment, respectively. In addition, USPlabs was ordered to pay $4.7 million in criminal forfeiture.
The case was investigated by Special Agent Chad Medaris of the FDA’s Office of Criminal Investigations and Special Agent Larissa Wilson of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys David Sullivan, Patrick Runkle, and Raquel Toledo with the Consumer Protection Branch of the Department of Justice’s Civil Division, and Assistant U.S. Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
West Texas Kidnapper Pleads Guilty to Abducting 9-Year-Old GirlRead the Press Release
A west Texas man pleaded guilty today to abducting a 9-year-old girl from a birthday party, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Damien Dre Gonzales, 27, of Levelland, Texas pleaded guilty Wednesday morning to one count of kidnapping before Magistrate Judge D. Gordon Bryant, Jr.
“No child should ever have to endure the terror of being abducted,” said Acting U.S. Attorney Prerak Shah. “I am thankful for the rapid response of law enforcement to rescue this child and ensure that this defendant will never again victimize children.”
“The FBI and our law enforcement partners are determined to keep the children in our communities safe from danger,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We will continue working together to hold child predators accountable for their crimes.”
According to plea papers, Mr. Gonzales admitted to abducting a 9-year old girl at a birthday party in Levelland, Texas to engage in illicit sexual intercourse.
During the birthday party in August, a woman began choking and most of the attendees went to assist with her sudden health emergency. While the minor’s father was attending to the woman, Mr. Gonzales lured the 9-year-old away by asking for help carrying alcohol to his vehicle. Mr. Gonzales encouraged the girl to get inside the vehicle and then he drove away.
The girl’s disappearance set off a frantic search by her family and those at the birthday party. They notified law enforcement and replayed home surveillance footage that showed the 9-year-old leaving with Mr. Gonzales.
About that same time, the Levelland Police Department received a report of a vehicle parked in the middle of the street several miles from the location of the birthday party. Mr. Gonzales hit a residential mailbox and stopped in the road. While in the car, Mr. Gonzales sexually assaulted the girl by removing her clothes and touching her.
When law enforcement arrived on the scene to investigate the parked car, they discovered the girl inside. Officers noticed that Mr. Gonzales’ jeans were unzipped, and his belt was unbuckled. Inside Mr. Gonzales’ car was an open box of condoms sitting in the passenger seat and one condom was missing from the box.
Mr. Gonzales faces a mandatory minimum of 20 years in federal prison and up to life behind bars.
The victim was immediately reunited with her parents and provided psychological and medical support.
The FBI Lubbock Resident Agency, Levelland Police Department, and Hockley County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Eight Charged in Identity Theft RingRead the Press Release
Eight individuals have been charged with running a complex identity theft ring, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
A federal grand jury indicted Samson Kidane Asres (47, of Dallas), Brandon Michael Bay (34, of Dallas), Stephen Robert Adams (59, of Dallas), Todd Stuart Breitling (57, of Dallas), Christopher William Feil (40, of Garland), William Ernest Hartshorn (43, of Richardson), Breanna Wellborn (38, of Garland), and Jeffrey Wilcox (46, of Dallas) on identity theft crimes in December. Thier court documents were unsealed today.
The lead defendant, Mr. Asres, was arrested in late January and faces one count of conspiracy to commit identity theft, six counts of aid and abetting fraud in connection with identification documents, and aggravated identity theft.
According to the indictment, Mr. Asres allegedly obtained or purchased personally identifying information and then gained access to credit report information of victims from credit agencies.
Using the victims’ personal information, Mr. Asres allegedly paid coconspirators an agreed sum of money to purchase cell phones and other high-end items. He would then sell the items and use the proceeds to continue to fund his unlawful scheme.
The purchasers were provided with a fraudulent Texas driver license which included the image of the coconspirator but the personal identifying information of an unknowing victim. Purchasers were also given false utility bills and other pertinent information from the victims’ credit report that would enable them to answer security questions on the credit check to qualify for large lines of credit at retail stores.
The coconspirators would allegedly then visit retail stores to purchase to cell phones, cell phone accessories, wireless speakers, watches, clothing, and other items. The coconspirators were able to use the false identification and victim’s identifying information to qualify for lines of credit and purchase items with a nominal down payment.
The conspiracy caused the loss of approximately $500,000.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty. If convicted, Mr. Asres faces up to 47 years in federal prison. Codefendants each face sentences ranging from 5 to 45 years.
This case was investigated by the Euless PD and the United States Postal Inspection Service with the assistance of the Department Of Public Safety CID, United States Secret Service, Tarrant County District Attorney’s Office, Rowlett PD, North Richland Hills PD, Carrollton PD, Richardson PD, Coppell PD, Plano PD, Allen PD, Frisco PD, The Colony PD, Sherman PD, Dallas PD, Fort Worth PD, Hurst PD, Colleyville PD, Terrell PD, Burleson PD, Little Elm PD, Johnson County Sherriff’ Office, Wise County Sheriff’s Office, and Texas Attorney General’s Office Fugitive Unit. A special thanks to industry partners including Sprint, T-Mobile, AT&T, Verizon, Nebraska Furniture Mart, Kohl’s, 7-11, Neiman Marcus, Ulta, Zale’s, and UHaul.
Assistant U.S. Attorneys Nicole Dana and Kenneth Coffin are prosecuting the case.
NDTX Round-Up: February 5 – 11Read the Press Release
GUILTY PLEA – EFREN BAUTISTA VARGAS
On February 9, Efren Bautista Vargas, 40, plead guilty to conspiracy to possess with the intent to distribute a controlled substance. In February 2020, DEA Agents began investigating a drug distribution and money laundering organization operating in Dallas and in Mexico. Agents learned that Vargas and other coconspirators were going to conduct a multiple kilogram transaction of methamphetamine. Based on the investigation, agents executed a search of Vargas’ apartment and seized a handgun, $23,640 in U.S. currency, and 209 pounds of methamphetamine. Vargas faces up to life in federal prison for his crimes. This case was investigated by the North Texas OCDETF Strike Force. Assistant U.S. Attorney Myria Boehm is prosecuting the case.
SENTENCING – GARY LYN BLACK aka “Godsmack”
On February 9, Gary Lyn Black, 62, was sentenced to 20 years in federal prison for possession with the intent to distribute a controlled substance. Black utilized his residence as a drug-involved premises for the purpose of distributing methamphetamine. Johnson County STOP Task Force executed a search warrant at the residence and seized 1.29 kilograms of methamphetamine, marijuana, pills, and a drug ledger. Black was also in possession of a shotgun and $9,735 which were proceeds from his drug trafficking. This case was investigated by the Johnson County STOP Task Force. Assistant U.S. Attorney Rebekah Ricketts prosecuted the case.
SENTENCING – AMIE DAWN SANMIGUEL
On February 9, Amie Dawn Sanmiguel, 47, was sentenced to 70 months in federal prison for possession with intent to distribute a controlled substance. On April 30, 2019, Sanmiguel distributed 55 grams methamphetamine to another individual. On another occasion, she distributed approximately 51 grams of methamphetamine to another individual. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
GUILTY PLEA – MARKEITH NINIKO CONWAY
On February 2, Markeith Niniko Conway, 30, plead guilty to possession of a controlled substance with intent to distribute. In July 2019, law enforcement executed a search warrant at a residence where Conway lived. Conaway was eating and fled to the back of the residence. During the search, law enforcement located approximately 44 small baggies of cocaine and two firearms. Conway faces up to 20 years in federal prison for his crimes. This case was investigated by the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney George Leal is prosecuting the case.
Perryton Police Officer Charged with Transporting Child PornographyRead the Press Release
A Perryton, Texas Police Officer has been charged with uploading and sharing sexually explicit images of children on the internet, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Aaron B. Daugherty, 35, an officer with the Perryton Police Department, was charged via criminal complaint with transportation of child pornography. Mr. Daugherty was arrested at his residence on Tuesday morning, and made his initial appearance in federal court today.
“Mr. Daugherty’s alleged conduct not only victimized children, it shattered the public’s trust given to him as a police officer,” said Acting U.S. Attorney Prerak Shah. “The Department of Justice will not tolerate anyone who uses the internet to prey on children for sexual gratification.”
“Law enforcement officers are held to the highest standards,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Instead of protecting our most vulnerable population this defendant exploited them by allegedly viewing, uploading and sharing child pornography. We will continue to work with our partners to serve justice for these innocent victims.”
According the complaint, Mr. Daugherty allegedly used Kik, a messaging app popular among teenagers, to upload and share explicit images and videos of child pornography.
Law enforcement initiated an investigation of a Kik user, later identified as Mr. Daugherty, who was in a chat group sharing multiple images and videos of child pornography. The videos and images allegedly depicted children as young as toddlers and infants engaged in sexually explicit conduct. In one instance, while in a Kik chat group on June 22 at approximately 6:37 am, Mr. Daugherty stated, “I’m here to look at CP, everybody . . . Go on with the CP content!”
Federal agents requested the subscriber data for Mr. Daugherty’s alleged Kik account. Kik provided the account information including the IP address. Agents subsequently subpoenaed the subscriber information associated with the uploads and traced it back to Mr. Daugherty.
A search of Mr. Daugherty’s residence revealed a cell phone with Kik installed. Under questioning, Mr. Daugherty allegedly acknowledged he was the sole owner of the Kik account, which he said he used to view, upload, and share child pornography.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Daugherty is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The FBI Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Financial Analyst Charged with $1.4 Million Fraud Against Small Business AssociationRead the Press Release
A former financial analyst has been charged with defrauding the North Texas Business Alliance (NTBA) out of more than $1.4 million in rebate funds, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Last week, a federal grand jury charged Tammy Walden Thomas, 60, with nine counts of wire fraud. Ms. Thomas made her initial appearance before U.S. Magistrate Judge Irma Carrillo Ramirez on Monday.
According to the indictment, from March 2016 through October 2019, Ms. Thomas served as a financial analyst for NTBA, a cooperative association of hundreds of North Texas convenience stores and gasoline station owners that negotiated discounts with multinational food and beverage companies on behalf of its members.
As a financial analyst, Ms. Thomas was charged with passing these discounts, as rebates, on to NTBA members via automatic clearinghouse transfers. However, she allegedly misdirected more than $1.4 million in rebate funds into her own bank accounts, lying to NTBA’s executives and accountants in the process.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Ms. Thomas is presumed innocent until proven guilty in a court of law.
If convicted, she faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field office conducted the investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
Alleged White Nationalist Charged with Gun CrimeRead the Press Release
An alleged white nationalist apparently intent on killing members of the Jewish faith has been charged with a federal firearm offense, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Christian Michael Mackey, 20, was charged via criminal complaint with unlawful sale of a firearm. FBI agents arrested him at a parking lot near his home in Grand Prairie Friday evening. He made his initial appearance in federal court before U.S. Magistrate Judge Irma Carrillo Ramirez Monday. A detention hearing has been set for 1 p.m. Wednesday.
“The Department of Justice is committed to enforcing our nation’s gun laws, which are designed to keep firearms out of the hands of dangerous individuals. This defendant’s indiscriminate sale of an AM-15 to a convicted felon could have put lives at risk, had the buyer not turned the gun over to the FBI,” said Acting U.S. Attorney Prerak Shah. “Although adherence to a repugnant ideology is not a crime in and of itself, unlawful sale is – and we are determined to hold Mr. Mackey accountable.”
“The FBI’s investigative focus is on criminal activity, regardless of group affiliation,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno, “Mr. Mackey’s disregard for the law as he is alleged to have knowingly sold a firearm to a felon could have put lives at risk. We are proud to work with our law enforcement partners to provide protection for our communities.”
According to the complaint, Mr. Mackey regularly posted in online chats organized by the Iron Youth, a Neo-Nazi white nationalist group dedicated to national socialism, militancy, and political terror. The group espouses “siege” ideology – using a series of anti-government terrorist attacks to instigate a race war.
On Instagram, Mr. Mackey said he liked “control and killing,” called himself a “radical jew slayer,” and vowed he would “die attacking the sustem [sic].” He urged fellow group members to kill Jews and African Americans.
At a meeting with an undercover FBI agent in December, Mr. Mackey allegedly expressed interest in selling his rifle in order to purchase another firearm, and stated that another Iron Youth member had recommended a ghost-gun, a homemade pistol without a serial number. He later changed his mind, telling the agent he would prefer to purchase a traditional rifle.
At a subsequent meeting, the undercover agent offered to facilitate the sale of Mr. Mackey’s gun to another individual, who the undercover agent warned was a felon. Mr. Mackey allegedly told the agent he “could care less” who bought his gun.
On Jan. 29, Mr. Mackey sold his AM-15 to a paid FBI source with multiple felony convictions.
At the undercover agent’s direction, the pair met at a gas station in Grand Prairie, then drove to an adjacent parking lot, where the source purchased the weapon for $800. Mr. Mackey asked if the source was “based” (a term used to indicate an embrace of white supremacist ideology) then indicated that he’d heard the source was a felon, but didn’t care.
Immediately following the sale, the AM-15 was taken into FBI custody.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Mackey is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison. If convicted, as a felon, he would be permanently barred from possessing a firearm.
The Federal Bureau of Investigation – Dallas’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Nicole Dana and Nicole Hammond are prosecuting the case.
Serbian Man Extradited to U.S., Charged with $70 Million Fraud in North TexasRead the Press Release
A Serbian man has been extradited from Serbia to the United States to face allegations that he and others duped investors out of more than $70 million, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Serbian authorities arrested Antonije Stojilkovic, 32, pursuant to a U.S. provisional arrest request on July 24, 2020 in Belgrade. Stojilkovic subsequently consented to extradition. On Feb. 4, 2021, the FBI completed the removal of Stojilkovic from Serbia to the Northern District of Texas.
Mr. Stojilkovic and more than a dozen other alleged fraudsters were indicted by a Dallas-based federal grand jury on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in July 2020. His coconspirators include Kristijan Krstic, Xenia Faye Atilano Krstic, Marko Pavlovic, Uros Selakovic, and Nenad Krstic, all arrested during the Serbian police operation in July. One U.S. based coconspirator, Haojia Miao, was arrested in California in October 2020.
“This $70 million scam spanned several continents, targeting American citizens and foreigners alike,” said Acting U.S. Attorney Prerak Shah. “We are proud to bring Mr. Stojilkovic to Dallas to face justice in an American courtroom. The U.S. Department of Justice will not relent in our fight against cybercrime.”
“Mr. Stojilkovic and his partners are charged with executing a global con that allegedly bilked investors out of millions of dollars,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The FBI is uniquely equipped to work with our offices and law enforcement partners worldwide to investigate and dismantle these elaborate schemes. Whether investing with cash or virtual currency, investors should exercise due diligence and report suspicious activity to the authorities.”
According to the indictment, the defendants allegedly helped create and market more than 20 fraudulent investing platforms, including Options Rider, Bancde Options, Start Options, Dragon Mining, BTC Mining Factor, and Trinity Mining.
From their home bases in China, Serbia, and elsewhere, the defendants allegedly targeted investors around the globe – including several in north Texas – soliciting “investments” in binary options and cryptocurrency mining.
Online, they billed their binary options platforms as “the world’s market leader in binary options,” boasted an average payout of 80 percent, and promised 20 percent refunds on every lost trade. On the cryptocurrency mining platforms, meanwhile, they claimed investors could “purchase bitcoin at half market price!!” due to a “24-7 mining” at facilities “worldwide.”
The defendants concocted profiles – complete with names and photographs, mostly female – for these non-existent investing companies’ officers and chair people, and even used fake names during video conference calls in order to convince potential investors the company was legitimate.
After instructing investors to wire money through an international bank account, the defendants allegedly provided logins for a bogus online investment portal, which consistently showed positive returns on investments. They allegedly fabricated trading activity, withdrawal history, and wire receipts. In actuality, no actual trading had occurred and the so-called “investment” money was used to cover defendants’ personal expenses, to pay commissions, and to further the scheme.
Overall, the conspiracy allegedly duped investors worldwide out of more than $70 million.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are innocent unless and until proven guilty in a court of law.
If convicted, Mr. Stojilkovic and his codefendants face up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The United States acknowledges and expressed appreciation for the cooperation of the Government of Serbia. The Justice Department’s Office of International Affairs provided valuable assistance in this matter. Assistant U.S. Attorney Sid Mody is prosecuting the case.
NDTX Round-Up: January 29 – February 4Read the Press Release
SENTENCING – BRANDON DOUGLAS DURGIN
On January 29, Brandon Douglas Durgin, 24, was sentenced to 51 months in federal prison for possession of a firearm by a felon. According to a criminal complaint, in July 2020, Arlington Police Department initiated an investigation for a stolen sport utility vehicle. According to the victim, Durgin had taken the SUV without permission along with a 9mm caliber pistol. APD tracked and relayed the location of the vehicle to the Fort Worth Police Department. Officers found the stolen SUV in a parking lot with Durgin seated in the driver’s seat. FWPD officers removed Durgin from the driver’s seat, and placed handcuffs on him. At that time, Durgin told the officers that he had a handgun in his front waistband. When Durgin was placed in the back of the patrol unit, he advised law enforcement that he is a convicted felon. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Arlington Police Department and the Fort Worth Police Department. Assistant U.S. Attorney Mark Nichols prosecuted the case.
GUILTY PLEA – BERTHA GARAY
On February 2, Bertha Garay, 47, plead guilty to theft of government funds. Beginning in 2007, Garay had in her care the child of a deceased parent. She received mother with child in care benefits through the Social Security Administration. In 2013, the child left Garay’s care and she knowingly failed to disclose the change to Social Security Administration. Garay admits that from June 2013 to September 2015, she defrauded the Social Security Administration of approximately $40,000. Garay faces up to 10 years in federal prison for her crimes. This case was investigated by the Social Security Administration. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
SENTENCING – RODNEY DISMUKE
On February 4, Rodney Dismuke, 29, was sentenced to 54 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. Dismuke and co-conspirators operated a Dallas apartment as a drug trafficking location. On more than one occasion, Dismuke sold cocaine to a confidential source at the apartment. Additionally, Dismuke was in possession of a firearm which he utilized to further his drug trafficking purposes. This case was investigated by the FBI and the Dallas Police Department.
SENTENCING – GUILLERMO ZARCO VILLASENOR
On February 4, Guillermo Zarco Villasenor, 28, was sentenced to 150 months in federal prison for possession with intent to distribute a controlled substance. According to a complaint, a confidential source provided an address to Villasenor under the guise that it belonged to a potential new client in the Dallas area that wanted to establish a relationship with a drug trafficking network. On April 30, 2018, Villasenor had 443 grams of methamphetamine shipped to a location in Addison, Texas to be sold for approximately $6,000. This case was investigated by the FBI. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
High School Ex-Coach Sentenced for Stalking Teenage StudentRead the Press Release
A former high school track coach has been sentenced to more than 10 years in federal prison for stalking a student and possessing child pornography, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Rickey Badley, a 45-year-old former Timber Creek High School teacher and coach, was indicted in September 2020, making him the first defendant prosecuted for stalking in the Northern District of Texas. In October 2020, he pleaded guilty to one count of stalking and one count of possession of child pornography. He was sentenced today by U.S. District Judge Reed O’Connor to 131 months in federal prison.
According to court documents, Mr. Badley admitted that he stalked a 16-year-old student, calling her his “new favorite” and “little girl” and circulating false and vulgar messages about her to her family and friends.
He admitted that from December 2019 to April 2020, he anonymously mailed the victim, her parents, and her classmates numerous letters detailing fabricated sexual encounters between the victim and her teenage boyfriend. He also attempted to anonymously mail out 13 copies of a graphic haiku, which was intercepted by law enforcement before it reached addressees.
The defendant further admitted he sent the victim’s parents an anonymous letter demanding she produce two TikTock videos with sexual undertones. The letter threatened to release false and disparaging information about the victim if the videos were not posted by a certain time.
Mr. Badley was asked by the school to submit his resignation in January 2020, when administrators became aware of his conduct. That same month, the victim’s mother observed Mr. Badley driving by the family home. Six months later, in June 2020, the victim noticed Bradley pulling into a parking spot at her private athletic practice before speeding away.
The ensuing investigation into Mr. Badley uncovered pornographic images of a toddler stored on his laptop. In court documents, Mr. Badley admitted he knew the images depicted actual minors engaged in sexually explicit conduct.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
Yassein Said Found Guilty of Concealing‘10 Most Wanted’ Suspect Yaser Said from ArrestRead the Press Release
A federal jury has found the brother of capital murder suspect Yaser Said guilty of helping the “10 Most Wanted” suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After four hours of deliberation, the jury on Thursday found Yassein Abdulfatah Said, Yaser Said’s 59-year-old brother, guilty on all counts: 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.
His coconspirator, his 32-year-old nephew Islam Said, pleaded guilty to the same charges prior to trial.
“Yassein Said provided cover for his brother, an accused murder, for years, diverting significant law enforcement resources and delaying justice for his nieces. The Northern District of Texas is proud to bring Mr. Said to justice. We hope the verdict brings a measure of comfort for those who loved Sarah and Amina,” said Acting U.S. Attorney Prerak Shah.
“Yassein Said protected his brother and accused murderer, Yaser Said, by providing aid and comfort to him while he was a fugitive. By taking the law into his own hands, Yassein Said delayed justice for the victims, Amina and Sarah, and their family,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.
According to evidence presented at trial, Yassein Said sheltered his brother from arrest in an attempt to subvert the administration of justice.
Yaser 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 inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.
Conspiring with his nephew, Yaser’s son Islam, Yassein Said helped harbor Yaser inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017.
He later harbored his brother inside a home in Justin, Texas. On Aug. 25, 2020 FBI agents observed Mr. Said and his nephew 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.
Both Yassein and Islam now face up to 30 years in federal prison. Sentencing has been set for June 4.
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 with counsel from appellate Assistant U.S. Attorney Jonathan Bradshaw. U.S. District Judge Reed C. O’Connor presided over the trial in Fort Worth.
Roommates Sentenced to Combined 31 Years in Federal Prison for Drug CrimesRead the Press Release
Two roommates have been sentenced to a combined 31 years in federal prison for drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Ramon Mendoza-Villegas, 45, and Daniel Sanchez-Mendoza, 28, were indicted in February 2019. Mr. Mendoza-Villegas pleaded guilty in January 2020 to possession with intent to distribute methamphetamine and was sentenced in December 2020 to 240 months in federal prison. Mr. Sanchez-Mendoza pleaded guilty in January 2020 to possession with intent to distribute methamphetamine and was sentenced today to 135 months in federal prison.
According to plea papers, during a traffic stop in January 2019, Dallas Police Department officers discovered methamphetamine and heroin in a truck occupied by Mr. Mendoza-Villegas and Mr. Sanchez-Mendoza.
During a subsequent search of the pair’s apartment on Brockbank Drive, law enforcement found and seized heroin, methamphetamine and cocaine, and three semi-automatic handguns, including one that was loaded.
Inside a storage unit used by the pair, law enforcement found and seized methamphetamine, heroin, a shotgun, and an assault rifle. (According to a complaint, the drugs were located in the back seat of a stolen vehicle parked inside the storage unit.)
In total, law enforcement seized almost 6,000 grams of meth and more than 2,500 grams of heroin.
The Drug Enforcement Administration's Dallas Field Division and the Dallas Police Department conducted the investigation with the assistance of the U.S. Marshals Service and Homeland Security Investigations. Assistant U.S. Attorney Linda Requénez prosecuted the case. The men were sentenced by Chief U.S. District Judge Barbara M.G. Lynn.
North Texas Child Predator Sentenced to 50 Years in PrisonRead the Press Release
An Arlington, Texas man was sentenced to 50 years in federal prison for the exploitation of children and related child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Terry Ray Carter, 34, pleaded guilty in September to sexual exploitation of children and transportation of child pornography. He was sentenced Friday before U.S. District Judge Reed C. O'Connor.
“This sentence sends a clear message to those who seek to victimize children,” said Acting U.S. Attorney Prerak Shah. “The Department of Justice will use every tool available to remove predators from the street or internet, and put them behind bars.”
“The FBI will continue working with our partners to apprehend and hold child predators accountable for their actions,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We ask the public to alert us and local law enforcement if they suspect anyone is a victim of child exploitation.”
In June 2020, the FBI Kansas Field Office served a federal search warrant in Kansas City, Kansas for an individual who was allegedly involved in child pornography crimes. The subject of the investigation identified another individual he was chatting with on social media who was believed to be engaged in the production of child pornography.
Based on this tip, authorities began investigating Mr. Carter and established an undercover social media profile, according to court documents. Using the screenname “alucard83,” Mr. Carter exchanged messages with an undercover officer. During communications, Mr. Carter acknowledged committing sexual acts with a minor and sent the undercover officer images and videos of child pornography.
A federal search warrant for Mr. Carter’s residence in Arlington, Texas, was executed in July 2020. When agents arrived, Mr. Carter agreed to be interviewed. During the interview, Mr. Carter confirmed that he sent and received child pornography through a social media application. He also confessed to producing multiple child pornography images and videos using his cell phone at his Arlington, Texas home.
The FBI Dallas Field Office conducted the investigation. Assistant U.S. Attorney A. Saleem 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 brings together 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.
Denton Man Sentenced for Trafficking 17-Year-Old GirlRead the Press Release
A Denton man has been sentenced to 15 years in federal prison for child sex trafficking, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
In September 2020, a federal jury returned a guilty verdict against William Adam Jonathan Smith, convicting him of one count of conspiracy to commit sex trafficking of a minor and one count of sex trafficking of a minor. He was sentenced today before U.S. District Judge Reed C. O’Connor.
According to evidence presented during his trial, Mr. Smith, 31, met and befriended the 17-year-old victim in the summer of 2019. He introduced her to Charity Cantu, his longtime girlfriend, who worked for him as a prostitute. Mr. Smith told Ms. Cantu that she was to groom and train the victim too make money for him providing commercial sex services.
From August thru October 2019, the victim accompanied Ms. Cantu to hotels in the Dallas and Fort Worth areas and engaged in commercial sex acts. All of the proceeds from the commercial sex acts performed by the victim were given to Mr. Smith.
Ms. Cantu, 25, pleaded guilty in March 2020 to a racketeering charge. In court documents, she admitted that although she knew the victim was a minor, Ms. Cantu groomed the girl for commercial sex and posted ads for her sexual services online. She testified at Mr. Smith’s trial and was sentenced in October 2020 to two years in federal prison.
The Texas Attorney General’s Office and Homeland Security Investigations conducted the investigation with the assistance of the Denton Police Department. Assistant U.S. Attorneys Doug Allen and Brandie Wade tried the case.
NDTX Round-Up: January 22-28Read the Press Release
GUILTY PLEA – KALYA EVETTE ODOM
On January 21, Kayla Evette Odom, 46, plead guilty to wire fraud. Odom is the former director of human resources for a business in the Northern District of Texas. As part of her duties, Odom was responsible for reviewing and approving invoices for human resources services. Odom set up a human resources vendor business, owned and controlled by herself, in her company’s accounts payable system. She created and submitted approximately 38 fraudulent invoices for various human resources services. Odom faces up to 20 years in federal prison for her crimes. This case was investigated by the FBI. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
GUILTY PLEA – LUIS HUMBERTO RODRIGUEZ
On January 26, Luis Humberto Rodriguez, 28, plead guilty to production of child pornography and transportation of child pornography. HSI executed a search warrant at a residence in Olympia, Washington in connection to the distribution of child pornography. During analysis of the seized devices, law enforcement uncovered a social media account linked to Rodriguez in which he shared child pornography. Based on this information, HSI agents executed a search warrant at Rodriguez’s Dallas home. Rodriguez advised agents that he was in possession of a 20 gigabytes of child pornography. He further admitted to sexually abusing a 7-year-old on multiple occasions. Rodriguez faces up to 50 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Camille Sparks is prosecuting the case.
GUILTY PLEA – TAMMY LOUISE CRAWFORD
On January 26, Tammy Louise Crawford, 51, plead guilty to possession with the intent to distribute a controlled substance. Crawford possessed methamphetamine at her residence in Dallas, Texas. For protecting her drug business, she also possessed eight firearms. Crawford faces up to 20 years in federal prison for her crimes. This case was investigated by the Texas Department of Public Safety and Dallas Police Department. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – ARMANDO RAMIREZ-HERNANDEZ
On January 26, Armando Ramirez-Hernandez, 27, plead guilty to distribution of a visual depiction of a minor engaged in sexually explicit conduct. Law enforcement executed a search warrant at Ramirez-Hernandez’s residence in Seagoville, Texas in relation to a child pornography investigation. A number of digital devices were seized inside the home including two cell phones and a computer. A forensic examination of the devices revealed the presence of social media chat communications. Ramirez-Hernandez admitted to transmitting several image files containing child pornography. At the time he distributed the child pornography, he also possessed 2,786 images and videos of child pornography. Ramirez-Hernandez faces up to 20 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Man Charged for Bilking Employer Out of $1.6 MillionRead the Press Release
A Plano man has been charged with racking up $1.6 million dollars in personal expenses on company credit cards, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Tuesday, Steven Duety, 45, was indicted on one count of conspiracy to commit wire fraud and nine counts of wire fraud. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on Friday.
“It is unacceptable for an employee to steal from his employer,” said Acting U.S. Attorney Prerak Shah. “This defendant’s alleged abuse of his company credit card is wire fraud and the Northern District of Texas will not stand for this sort of misconduct.”
“Mr. Duety was in a position that required trust and integrity and his alleged actions abused his position,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI will continue to work closely with our law enforcement partners to hold those who enrich themselves via fraudulent schemes accountable for their actions.”
According to the indictment, from 2015 to 2019, Mr. Duety oversaw fleet functions for Builders FirstSource, a publicly-traded construction products manufacturer. The company gave him access to several company credit cards, which he was supposed to use for fleet-related expenses, such as titling, renewing registration, etc.
Instead, Mr. Duety allegedly conspired with a relative, identified in court documents as “Person A,” to use the credit cards for personal expenses as well as inventory for their respective candle businesses, including “Steves The Man Candles.”
Mr. Duety frequently charged company credit cards for nonexistent transactions via Square or Intuit, causing the payment processors to remit money from Builders FirstSource straight into his or Person A’s bank account. He and his coconspirators sometimes characterized these transactions as “car repair” or “fundraiser,” when no such things had occurred.
Mr. Duety allegedly spent the money on cars, dining (including expensive steakhouses), first class airline tickets, luxury hotels, car rentals, furniture, Amazon charges, toys, groceries, landscaping, a Netflix subscription, laser tag, and trips to Hooters, as well as first class airline tickets and kitchen appliances for Person A.
“This is really a pain in the butt,” Person A wrote in an email to Mr. Duety on October 18, 2016. “My story is you bought 100 fundraiser candles in case they call you.”
An indictment is merely an allegation of criminal wrongdoing, not evidence. Like all defendants, Mr. Duety is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 200 years, 20 years per count, in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
Jury Convicts Inmate of Attacking BOP EmployeeRead the Press Release
A federal jury has convicted a prison inmate of attacking a Bureau of Prisons employee, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After just over an hour of deliberations, a jury on Tuesday found 44-year-old William Lee Terrell guilty of assault of a federal officer resulting in bodily injury.
According to evidence presented at 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 eventually 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.
Mr. Terrell now faces up to 20 additional years in federal prison. His sentencing hearing has been set for April 29.
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.
Man Charged with Trafficking 14-Year-Old out of DallasRead the Press Release
A Dallas man has been charged with trafficking a 14-year-old child who was recovered at a local hotel, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Anthony Lennell Acy, 33, was charged via criminal complaint with one count of child sex trafficking on Wednesday. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on Wednesday.
“Child sex trafficking is one of the most vile crimes we see in north Texas. This defendant allegedly used and abused a middle-school-aged child for monetary gain,” said Acting U.S. Attorney Prerak Shah. “We are thankful that the North Texas Trafficking Task Force was able to not only apprehend the perpetrator, but also recover the victim and get her to safety.”
“Apprehending human traffickers that take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI,” said Ryan L. Spradlin, special agent in charge HSI Dallas. “We will go to no end to combat the scourge that is human trafficking and the members of the North Texas Trafficking Task Force will never relent until every trafficker is behind bars and every victim is rescued.”
According to the criminal complaint, Mr. Acy allegedly trafficked at least two women, including a 14-year-old girl, out of a hotel off LBJ Freeway in Dallas.
The North Texas Trafficking Taskforce, led by Homeland Security Investigations (HSI), arrested Mr. Acy as he was leaving the hotel, where they also recovered the 14-year-old Jane Doe inside a room on the second floor. She was immediately transported to the Dallas Children's Advocacy Center.
Jane Doe later told investigators that Mr. Acy ordered her to engage in commercial sex, forcing her to earn $1,000 a day, with all proceeds turned over to him. She said Mr. Acy physically assaulted her on multiple occasions and deprived her of food and shelter.
Investigators reviewed online advertisements, allegedly posted by Mr. Acy, that featured pictures of Jane Doe and offered various sexual services.
He was on bond for a state trafficking charge filed by Travis County when he was arrested by the feds.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Acy is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to life in federal prison.
The North Texas Trafficking Task Force, led by Homeland Security Investigations, conducted the investigation, with assistance from the Texas Department of Public Safety, the Dallas County Sheriff’s Office, the Colleyville Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.
San Angelo Meth Trafficker Sentenced to More Than 17 Years in PrisonRead the Press Release
A San Angelo methamphetamine trafficker was sentenced to 210 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Michael Anthony Meza, 40, pleaded guilty in September to possession with the intent to distribute 50 grams or more of methamphetamine. He was sentenced last Friday before U.S. District Judge James Wesley Hendrix.
“This sentence spotlights the hard work and dedicated partnership between our local, state, and federal law enforcement agencies,” said Acting U.S. Attorney Prerak Shah. “We share the same mission of targeting and prosecuting drug traffickers who peddle poison into communities across Texas.”
“This lengthy sentence should send a direct message to anyone engaged in drug trafficking or is contemplating it with dreams of instant wealth and power,” said Ryan L. Spradlin, Special Agent in Charge HSI Dallas. “You will always have to look over your shoulder because HSI will never relent and will use every resource available to turn those dreams into a nightmare.”
According to court documents, a deputy with the Tom Green County Sheriff’s Office observed a vehicle traveling over the speed limit and conducted a routine traffic stop.
Mr. Meza was identified by law enforcement as the driver of the vehicle. During law enforcement’s initial contact with Mr. Meza, a deputy observed indicators that led him to believe that Mr. Meza was involved in criminal activity.
A narcotic detecting canine was dispatched to the location. When the canine arrived, it conducted a free-air sniff of Mr. Meza’s vehicle which alerted law enforcement of drugs emitting from inside the car.
Deputies searched Mr. Meza’s vehicle and seized five pistols located throughout the car. A further search of the vehicle resulted in the seizure of more than 500 grams of methamphetamine, approximately 100 grams of heroin, 22 grams of cocaine, and 19 grams of marijuana.
Homeland Security Investigations, Tom Green County Sheriff’s Office, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Juanita Fielden prosecuted the case.
NDTX Round-Up: January 15-21Read the Press Release
GUILTY PLEA – JOHN THOMAS RUTLEDGE
On January 19, John Thomas Rutledge, 55, plead guilty to three counts of bank robbery. During September and October of 2019, Rutledge robbed three banks in Dallas including: Legacy Texas Bank, Oakwood Bank, and Bank of America. During the commission of the robberies, Rutledge stole more than $17,000 in cash from the banks. Rutledge faces up to 20 years in federal prison for his crimes. This case was investigated by the FBI. Assistant U.S. Attorney Shane Read is prosecuting this case.
GUILTY PLEA – JOHN SANJIV MURGAI
On January 21, John Sanjiv Murgai, 54, pleaded guilty to conspiracy to commit health care fraud. Murgai owned a company that provided mobile x-ray services primarily in Lubbock, Texas. Murgai admitted that he agreed with an individual to fraudulently submit claims to Medicare and Medicaid for mobile x-ray claims under his provider number, falsely representing that he performed the services rather than “Company A,” an entity owned by a co-conspirator. Murgai admitted that he and a co-conspirator agreed that Murgai would keep 5% of the payments received from Medicare and Medicaid for the false claims associated with the services and transfer the remaining 95% to the co-conspirator. Murgai admits that he knew that the “Company A” was not an approved provider for Medicare or Medicaid. Murgai faces up to 5 years in federal prison for his crimes. This case was investigated by the FBI and Texas Attorney General’s Office, Medicaid Fraud Control Unit. Assistant U.S. Attorney Douglas Brasher is prosecuting the case.
SENTENCING – ASHLEY SILVER WOOD
On January 21, Ashley Silver Wood, 64, was sentenced to 30 months in federal prison for possession of a firearm by a convicted felon. Wood conspired with others to distribute methamphetamine. Agents executed a lawful search warrant at a residence she shared with a co-conspirator. While executing the search warrant, agents seized a 12-gauge shotgun. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas DPS. Assistant U.S. Attorney George Leal prosecuted the case.
SENTENCING – CHARLES AUBREY HURT a.k.a. BUBBA
On January 21, Charles Aubrey Hurt, 64, was sentenced to 7 years in federal prison for possession of a firearm by a convicted felon. Hurt admitted that he engaged in a conspiracy to possess with the intent to distribute methamphetamine with two co-conspirators. During the course of the conspiracy, agents found Hurt inside a residence with methamphetamine, cocaine, and a .38 caliber pistol. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas DPS. Assistant U.S. Attorney George Leal prosecuted the case.
Alleged Murderer Charged with Federal Firearms OffenseRead the Press Release
The man charged by the state with the October 9, 2020 murder of James Faith has now been charged with federal firearm crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Darrin Ruben Lopez, 48, was charged via criminal complaint Friday with transporting a firearm in interstate commerce with the intent to commit a felony offense. Mr. Lopez, currently in the custody of the Dixon County Sherriff’s Office in Tennessee on a Dallas County murder warrant, will make his initial appearance in federal court once he is extradited back to Dallas.
“This defendant allegedly gunned down an innocent man in broad daylight,” said Acting U.S. Attorney Prerak Shah. “I hope this case makes one thing crystal clear: If you carry a gun across state lines in order to commit violence, you will be subject to federal prosecution.”
“ATF is committed to working with its partners to go after evil amongst us. I am in awe of the meticulous police work performed here by homicide detectives at the Dallas Police Department. Mr. Lopez is alleged to have killed in cold blood. If not for law enforcement determination, he may still be walking the streets among us,” stated ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II.
According to the complaint, on October 8, Mr. Lopez allegedly drove with his .45 caliber handgun from his home in Cumberland Furnace, Tennessee to James Faith's home in Dallas, where Mr. Lopez allegedly laid in wait, then shot the victim seven times – three times in the head, three times in the chest, and one time in the groin – before fleeing the scene and returning home.
James Faith was walking his dog with his wife, Jennifer Faith, when he was murdered in the early morning hours of October 9.
A search of Ms. Faith’s cell phone revealed that she and Mr. Lopez had been engaged in what she described to a friend as a “full-blown emotional affair.”
Mr. Lopez’s cell records show the pair were in near constant contact, sending one another hundreds of text messages each day for several months, including in the weeks before and after the murder. However, the afternoon before the murder, the phones suddenly stopped communicating, and did not start communicating again until nine hours after James Faith was killed.
Witnesses to the murder told law enforcement that the shooter was driving a black Nissan Titan with a distinctive white “T” emblem on the left rear windshield.
Agents later observed a black Nissan Titan with a “T” emblem parked on Mr. Lopez’s property in Tennessee. They were also able to trace his route on October 8th and 9th from Tennessee to Texas through cell phone tower data, debit card transactions, Google precision location data, and surveillance video at truck stops.
During the execution of a search warrant on Jan. 11, ATF agents recovered what ballistic tests later proved to be the .45 caliber handgun used to kill James Faith inside Mr. Lopez’s Tennessee residence.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Lopez is presumed innocent until proven guilty in a court of law.
Ms. Faith has not been charged with a criminal offense.*
If convicted of the firearm offense, Mr. Lopez faces up to ten years in federal prison. (He also faces up to life in a state penitentiary on the Dallas County murder charge.)
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department’s Homicide Unit conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the Tennessee Bureau of Investigation’s Aviation Unit. Assistant U.S. Attorney Rick Calvert is prosecuting the case.
*UPDATE: Jennifer Faith was arrested at her home in Oak Cliff on Feb. 24, charged via criminal complaint with obstruction of justice. More information here.
ADT Technician Pleads Guilty to Hacking Home Security FootageRead the Press Release
A home security technician has pleaded guilty to repeatedly hacking into customers’ video feeds, announced Acting U.S. Attorney for the Northern District of Prerak Shah.
Telesforo Aviles, a 35-year-old former ADT employee, pleaded guilty to computer fraud on Thursday before Magistrate Judge David Horan.
“This defendant, entrusted with safeguarding customers’ homes, instead intruded on their most intimate moments,” said Acting U.S. Attorney Prerak Shah. “We are glad to hold him accountable for this disgusting betrayal of trust.”
“The defendant used his position of employment to illegally breach the privacy of numerous people. The FBI works with our law enforcement partners to thoroughly investigate all cyber intrusions and hold criminals accountable for their actions,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Cyber intrusions do not only affect businesses, but also members of the public. We encourage everyone to practice cyber hygiene with all their connected devices by reviewing authorized users and routinely changing passwords. If you become the victim of a cybercrime, please contact the FBI through ic3.gov or 1-800-CALL FBI.”
According to plea papers, Mr. Aviles admits that contrary to company policy, he routinely added his personal email address to customers’ “ADT Pulse” accounts, giving himself real-time access to the video feeds from their homes. In some instances, he claimed he needed to add himself temporarily in order to “test” the system; in other instances, he added himself without their knowledge.
Mr. Aviles took note of which homes had attractive women, then repeatedly logged into these customers’ accounts in order to view their footage for sexual gratification, he admits. Plea papers indicate he watched numerous videos of naked women and couples engaging in sexual activity inside their homes.
Over a four and a half year period, Mr. Aviles secretly accessed roughly 200 customer accounts more than 9,600 times without their consent, he admits.
Mr. Aviles, who waived indictment and was charged via an information, now faces up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Islam Said Pleads Guilty to Concealing ‘10 Most Wanted’ Suspect Yaser Said from ArrestRead the Press Release
A 32-year-old Irving man has pleaded guilty to helping a capital murder suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Islam Yaser-Abdel Said, the son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty Tuesday morning 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.
“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,” said U.S. Attorney Prerak Shah. “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, Mr. 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 inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.
By pleading guilty, Islam Said admitted that the evidence proved he committed the crimes charged in the superseding indictment.
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 Said now faces up to 30 years in federal prison. His is slated to be sentenced on April 30, 2021 at 9 a.m. by U.S. District Judge Reed O’Connor.
Islam’s uncle, Yassein Said, is set for trial on Feb. 1, 2021.
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.
Amarillo Meth Trafficker Sentenced to 20 YearsRead the Press Release
An Amarillo methamphetamine trafficker was sentenced to 20 years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Bennie Jerome Baca, 34, pleaded guilty in August 2020 to distribution of methamphetamine. Last Thursday, he was sentenced before U.S. District Judge Matthew J. Kacsmaryk.
“Mr. Baca and his co-conspirators ran a multi-state drug trafficking conspiracy that pumped large quantities of meth into communities all across Texas,” said Acting U.S. Attorney Prerak Shah. “This sentence demonstrates that the Department of Justice will use every weapon in its arsenal to stop meth from reaching our neighborhoods and harming our citizens.”
“Drug trafficking and the illegal activity associated with it continues to threaten the safety of the general public throughout our communities,” said Christopher Miller, Deputy Special Agent in Charge HSI Dallas. “One of our agency’s main priorities is to bring every resource we have at our disposal to keep individuals and criminal organizations that hinder public safety from profiting from its distribution. We remain committed to working with our state and federal law enforcement partners to keep illegal substances out of our communities and investigating those responsible.”
On October 8, 2019, a New Mexico State Police officer made a traffic stop of a car-hauler near Albuquerque, New Mexico. During the traffic stop, the police officer requested permission to search one of the cars on the hauler that lacked proper state registration. Law enforcement located approximately 21 bundles of methamphetamine concealed inside the vehicle. HSI agents determined that the driver of the car-hauler had no knowledge of the drugs and agreed to assist law enforcement.
On October 9, 2019, the driver delivered the vehicle to its original destination in Amarillo, Texas. The driver called a phone number of the intended recipient of the vehicle, later identified as Mr. Baca, and arranged to meet him at a truck stop to deliver the vehicle.
Mr. Baca and a co-conspirator took possession of the vehicle and drove to a residence in Amarillo. Shortly thereafter, Mr. Baca was arrested, and law enforcement seized $3,050 in his possession. Mr. Baca admitted to knowing that the vehicle was loaded with methamphetamine and that a co-conspirator was going to distribute it.
Rusty Dean Campbell was sentenced to more than 17 years in federal prison in June 2020 and Sergio Chris Reyes was sentenced to 20 years in federal prison in December 2020 for their roles in the methamphetamine trafficking conspiracy.
Homeland Security Investigations, Drug Enforcement Administration, New Mexico State Police, and Amarillo Police Department conducted the investigation. Assistant U.S. Attorney Joshua Frausto prosecuted this case.
NDTX Round-Up: January 8 - 14Read the Press Release
SENTENCING – KRIS LANDON GREENE
On January 8, Kris Landon Greene, 23, was sentenced to 10 years in federal prison for conspiracy to distribute a controlled substance and possession of a firearm by a user of a controlled substance. Greene admitted that members of Dallas-based criminal street gang known as “YNG Stretchgang” and himself distributed drugs, including crack cocaine, to customers in the Northern District. To help facilitate his drug sales, Greene possessed a .38 caliber handgun. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert prosecuted this case.
SENTENCING – DANIEL LEE COLLINS
On January 8, Daniel Lee Collins, 35, was sentenced to 5 years in federal prison for possession of child pornography. Collins had several email accounts which contained images and videos of child pornography. Collins accessed these accounts via his cell phone from different locations within the Northern District including his home in Tarrant County. These images of child pornography that Collins possessed depicted real minors including one prepubescent minor. This case was investigated by Homeland Security Investigations and Dallas Police Department. Assistant U.S. Attorney A. Saleem prosecuted this case.
SENTENCING – CHRISTOPHER REED FREED
On January 8, Christopher Reed Freed, 46, was sentenced to 5 years in prison and ordered to pay $244,029.68 in restitution for health care fraud. Freed operated an ambulance service provider located in the Northern District. Freed sought to obtain payment from Medicare for non-emergency ambulance services. As part of the scheme, Freed submitted 754 fraudulent claims to Medicare totaling approximately $664,640. These submitted claims were materially false in that they were for services that were not rendered by Freed. This case was investigated by Health and Human Services – OIG and the Texas OAG Medicaid Fraud Control Unit. Assistant U.S. Attorney Matthew Smid prosecuted this case.
GUILTY PLEA – GABRIEL MAROQUIN, JR.
On January 12, Gabriel Marroquin, Jr., 29, plead guilty to possession with intent to distribute a controlled substance. Marroquin was pulled over by law enforcement officers for a traffic violation. He consented to a search of his truck where officers found 5,959 grams of methamphetamine which he intended to distribute. Officers also located a .9mm handgun, cell phones, and $1,293 on his person. Maroquin faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
GUILTY PLEA – HENRY AGUSTIN MORENO
On January 12, Henry Agustin Moreno, 20, plead guilty to transporting or shipping child pornography. HSI received a tip from Kik that a user in the Dallas area was utilizing the messenger application to distribute child pornography. Agents obtained a search warrant of Moreno’s residence in Irving. Moreno admitted to agents that he downloaded several pornographic files depicting child pornography. He further admitted that he uploaded child pornography in exchange for other videos. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
Lubbock Dentist Charged with Child Pornography CrimesRead the Press Release
A Lubbock dentist has been charged with child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jason Paul White, 41, was charged via criminal complaint Wednesday with receipt and distribution of child pornography. He was arrested at his business in Lubbock on Thursday and made his initial appearance in federal court today before Magistrate Judge D. Gordon Bryant.
“The horrific nature of Mr. White’s crimes is only compounded by the fact that he leveraged his position of trust to target the most vulnerable,” said Acting U.S. Attorney Prerak Shah. “Our office will continue to hunt down and prosecute these despicable individuals who exploit minors for sexual gratification and use technology to further victimize our children.”
"It is the FBI's role to identify the child victims of individuals that choose to prey upon those who are unable to articulate abusive behavior,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We are proud to work with our partners from Lubbock Police Department to investigate these allegations of abuse and to provide appropriate access to victim services and support. If anyone has information about improper or unlawful activities by Mr. White or the production of child pornography they should contact the FBI or their local law enforcement agency."
In December 2020, the Lubbock Police Department received a tip from two parents that Mr. White had engaged in an inappropriate relationship with their minor children, a federal criminal complaint alleges.
According to the complaint, Mr. White allegedly provided adult sexual devices to three minor males. He requested videos and images of sexually explicit conduct from the minors via text messages and social media applications and received and distributed at least one image of child pornography.
In spring 2020, Mr. White allegedly showed a 13-year-old a video of himself engaged in sexual acts. Mr. White also contacted the 13-year-old by text message and social media to see if he enjoyed the adult sexual device that was given to him.
In summer 2020, Mr. White allegedly requested a nude photo from a 17-year-old minor male while at his house in Lubbock. The minor took a nude photo privately in a bedroom with his cell phone. Mr. White then took the minor’s cell phone and forwarded the image to himself and another individual.
At his ranch in Post, Texas, Mr. White allegedly coerced a 16-year-old minor into partially undressing and showed him a video of a juvenile engaged in sexual acts. Additionally, Mr. White requested videos of the minor using the adult sexual device that he gave the minor as repayment for the gift.
If convicted, Mr. White faces up to 20 years in federal prison.
The Lubbock Police Department Internet Crimes Against Children Task Force, the Federal Bureau of Investigation’s Lubbock Resident Agency, and Homeland Security Investigations Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
NDTX Round-Up: January 1 - 7Read the Press Release
SENTENCING – MARIO MAKIYA SANDIFER a.k.a. “Danero the Goat”
On January 6, Mario Makiya Sandifer, 25, was sentenced to 3 years in federal prison for tampering with a witness or victim. In June 2019, law enforcement arrested Catrell Tywarren Johnson for sex trafficking. Sandifer intentionally contacted the trafficking victim via social media to prevent her testimony against Johnson. In one such attempt, Sandifer created a music video which he posted to YouTube and sent to the victim the link. In the video, Sandifer made threatening remarks and gestures in reference to the victim. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Nicole Dana prosecuted this case.
SENTENCING – ROGELIO ALVARADO
On January 7, Rogelio Alvardo, 35, was sentenced to 33 months in federal prison for conspiracy to distribute a controlled substance. Alvarado admits that he distributed cocaine to customers in exchange to U.S. currency. He also admits that he used a cellular phone to discuss, negotiate, and facilitate drug transactions with a co-conspirator. This case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – ROBERT BURNEY CAPPS
On January 7, Robert Capps, 71, plead guilty to transporting and shipping child pornography. In September 2019, HSI received a cyber tip that reported that an image of child pornography had been uploaded to the Kik messaging application. Agents executed a search warrant at an address in Dallas where Capps lived. A forensic review of Capps cellular device revealed 508 imaged of child pornography. These images included sadistic images as well as images of infants and toddlers. Capps faces up to 20 years in federal prison for his crimes. This case was investigated by Homeland Security Investigations (Child Exploitation Group – Dallas). Assistant U.S. Attorney Lindsey Beran is prosecuting this case.
SENTENCING – BO JACK KELLEY
On January 7, Bo Jack Kelley, 27, was sentenced to 30 years in federal prison for production of child pornography. Kelley, a resident of Cullman, Alabama met a 14-year-old minor, located in Texas, on social media. Kelley coerced the minor to produce and send him sexually explicit videos. Kelly threatened that if the minor did not continue to send him pornographic videos, he would send the videos she already sent him to members of her family. Eventually, Kelley sent four sexually explicit videos of the minor’s mother’s social media account. This case was investigated by the FBI, Texas DPS, Texas Rangers, Shallowater Police Department, and Cullman Police Department.
Federal Jury Convicts Gang Member of Gun CrimeRead the Press Release
An Arlington gang member has been convicted at trial of felon in possession of a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following around two hours of deliberation, a Fort Worth federal jury returned a guilty verdict against 25-year-old Jeremy Devonte White, aka “Worm,” Thursday afternoon.
According to evidence presented at trial, on November 26, 2019, Mr. White, a known member of the Trill Fam street gang, was riding in the passenger side of a fellow gang member’s vehicle when Arlington police attempted a traffic stop. When the vehicle reached a residential neighborhood, Mr. White jumped out and fled with a backpack, which he then ditched in a resident’s yard.
Inside the backpack were two loaded handguns, including one with a 33-round, high capacity magazine. Mr. White was subsequently identified and apprehended.
Mr. White, who was convicted in 2015 of three incidents of felony evading arrest, now faces up to ten years in federal prison on the firearms charge. Sentencing has been set for April 16.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Arlington Police Department’s Gang and Gun Crimes Units conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Andrew Briggs tried the case. U.S. District Judge Reed O’Connor presided over the trial, which incorporated extensive safety protocols, including social distancing of the attorneys, witnesses, and jurors, as well as face masks and face shields.
Man Who Sold Midland/Odessa Shooter AR-15 Used in Massacre Sentenced for Unlicensed Firearms DealingRead the Press Release
The man who sold the AR-15 used to gun down 32 people in Midland and Odessa, Texas has been sentenced to two years in federal prison, announced U.S. Attorney Erin Nealy Cox.
Marcus Anthony Braziel, 45, of Lubbock, Texas, pleaded guilty in October to one count of dealing firearms without a license and one count of subscribing to a false tax return. He was sentenced Thursday to 24 months in federal prison by U.S. District Judge James Wesley Hendrix.
“Federal firearm laws, including those that mandate background checks by licensed dealers, ensure that guns don’t fall into the hands of prohibited persons,” said U.S. Attorney Erin Nealy Cox. “By subverting those laws, Mr. Braziel enabled a deranged mass shooter. We hope this case sends a message: The U.S. Department of Justice will not give unlicensed dealers a pass. To do so would endanger our communities.”
“Knowingly dealing firearms without a license is a significant crime and often times leads to extreme violence. In this particular case, Mr. Braziel’s acts were implicit in the murders of seven innocent victims. In subverting the law, an individual otherwise prohibited from obtaining firearms was able to purchase a gun from Mr. Braziel. ATF will continue to do whatever necessary to keep firearms out of the hands of those that should not have them,” said ATF Special Agent in Charge of the Dallas Field Office Jeffrey C. Boshek II.
According to plea papers, Mr. Braziel admitted he sold Midland Odessa shooter Seth Aaron Ator an AR-15-style rifle on October 8, 2016 – nearly three years before Mr. Ator used the gun to murder seven people and wound 25 more.
Mr. Ator, who had been adjudicated “mentally defective” and was therefore legally prohibited from possessing firearms, first attempted to purchase a gun from a sporting goods store, but was rejected after the National Instant Criminal Background Check System (NICS) flagged his mental status. He later circumvented the NICS system by purchasing a gun from Mr. Braziel, who elected not to run background checks on any of his buyers.
Background checks are not necessarily required for in-state, private transfers. However, Mr. Braziel admitted he was “engaged in the business of selling firearms” – repeatedly devoting time and attention to purchasing and reselling guns for pecuniary gain – and thus should have been licensed and conducting background checks.
In his plea papers, Mr. Braziel admitted he routinely bought firearm firing mechanisms (termed “lower receivers”), used milling equipment to build them into full-fledged guns, and then sold the completed weapons for roughly $100 - $200 profit. He said he typically listed his firearms for sale on Armslist.com and conducted the sales in the parking lot of a local sporting goods store or out of his garage.
In a four-year span, Mr. Braziel inadvertently sold firearms to four prohibited persons: a convicted felon, an man under felony indictment, an immigrant in the U.S. illegally, and Mr. Ator, a man who the courts deemed unfit to possess a firearm.Agents traced the lower receiver of the gun Mr. Braziel sold to Mr. Ator to Mulehead Dans, a federally licensed firearm dealer in Lubbock. The owner of Mulehead Dans confirmed that Mr. Braziel often purchased lower receivers and firearms there.
In addition to concealing his unlicensed dealing, Mr. Braziel admitted he also concealed the income from his firearms sales from the IRS.
“IRS-CI is dedicated to using the full strength of the federal government to ensure strict and lengthy sentences for those who violate our country’s tax laws. In this case, Mr. Braziel made illegal business decisions directly contributing to the death and injury of multiple civilians and today’s sentence reflects the courts’ acknowledgment of this preventable tragedy,” stated IRS-CI Acting Special Agent in Charge Mark Pearson, Dallas Field Office, who praised the joint efforts of the IRS-CI agents and their federal partners.
Mr. Braziel has been ordered to self-surrender to the Federal Bureau of Prisons by April 7, 2021.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, IRS-Criminal Investigations Division, the Federal Bureau of Investigation, Homeland Security Investigations, the United States Postal Inspection Service, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeffrey Haag, NDTX’s West Texas Branch Chief, is prosecuting the case.
Boeing Charged with 737 Max Fraud Conspiracy, Agrees to Pay $2.5 Billion+Read the Press Release
The Boeing Company has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
Boeing, a U.S.-based multinational corporation that designs, manufactures, and sells commercial airplanes to airlines worldwide, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.”
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.”
“Today's deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The substantial penalties and compensation Boeing will pay, demonstrate the consequences of failing to be fully transparent with government regulators. The public should be confident that government regulators are effectively doing their job, and those they regulate are being truthful and transparent.”
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” said Special Agent in Charge Andrea M. Kropf, Department of Transportation Office of Inspector General (DOT-OIG) Midwestern Region. “This landmark deferred prosecution agreement will forever serve as a stark reminder of the paramount importance of safety in the commercial aviation industry, and that integrity and transparency may never be sacrificed for efficiency or profit.”
As Boeing admitted in court documents, Boeing—through two of its 737 MAX Flight Technical Pilots—deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. Because of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS.
Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.
In connection with this process, the FAA AEG was principally responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which contained relevant information about certain aircraft parts and systems that Boeing was required to incorporate into airplane manuals and pilot-training materials for all U.S.-based airlines. The 737 MAX FSB Report also contained the FAA AEG’s differences-training determination. After the 737 MAX FSB Report was published, Boeing’s airline customers were permitted to fly the 737 MAX.
Within Boeing, the 737 MAX Flight Technical Team (composed of 737 MAX Flight Technical Pilots) was principally responsible for identifying and providing to the FAA AEG all information that was relevant to the FAA AEG in connection with the FAA AEG’s publication of the 737 MAX FSB Report. Because flight controls were vital to flying modern commercial airplanes, differences between the flight controls of the 737 NG and the 737 MAX were especially important to the FAA AEG for purposes of its publication of the 737 MAX FSB Report and the FAA AEG’s differences-training determination.
In and around November 2016, two of Boeing’s 737 MAX Flight Technical Pilots, one who was then the 737 MAX Chief Technical Pilot and another who would later become the 737 MAX Chief Technical Pilot, discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Boeing, through these two 737 MAX Flight Technical Pilots, concealed this information and deceived the FAA AEG about MCAS. Because of this deceit, the FAA AEG deleted all information about MCAS from the final version of the 737 MAX FSB Report published in July 2017. In turn, airplane manuals and pilot training materials for U.S.-based airlines lacked information about MCAS, and pilots flying the 737 MAX for Boeing’s airline customers were not provided any information about MCAS in their manuals and training materials.
On Oct. 29, 2018, Lion Air Flight 610, a Boeing 737 MAX, crashed shortly after takeoff into the Java Sea near Indonesia. All 189 passengers and crew on board died. Following the Lion Air crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. The FAA AEG also learned for the first time about the change to MCAS, including the information about MCAS that Boeing concealed from the FAA AEG. Meanwhile, while investigations into the Lion Air crash continued, the two 737 MAX Flight Technical Pilots continued misleading others—including at Boeing and the FAA—about their prior knowledge of the change to MCAS.
On March 10, 2019, Ethiopian Airlines Flight 302, a Boeing 737 MAX, crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew on board died. Following the Ethiopian Airlines crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. On March 13, 2019, the 737 MAX was officially grounded in the U.S., indefinitely halting further flights of this airplane by any U.S.-based airline.
As part of the DPA, Boeing has agreed, among other things, to continue to cooperate with the Fraud Section in any ongoing or future investigations and prosecutions. As part of its cooperation, Boeing is required to report any evidence or allegation of a violation of U.S. fraud laws committed by Boeing’s employees or agents upon any domestic or foreign government agency (including the FAA), regulator, or any of Boeing’s airline customers. In addition, Boeing has agreed to strengthen its compliance program and to enhanced compliance program reporting requirements, which require Boeing to meet with the Fraud Section at least quarterly and to submit yearly reports to the Fraud Section regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective at deterring and detecting violations of U.S. fraud laws in connection with interactions with any domestic or foreign government agency (including the FAA), regulator, or any of its airline customers.
The Fraud Section reached this resolution with Boeing based on a number of factors, including the nature and seriousness of the offense conduct; Boeing’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and Boeing’s prior history, including a civil FAA settlement agreement from 2015 related to safety and quality issues concerning the Boeing’s Commercial Airplanes (BCA) business unit. In addition, while Boeing’s cooperation ultimately included voluntarily and proactively identifying to the Fraud Section potentially significant documents and Boeing witnesses, and voluntarily organizing voluminous evidence that Boeing was obligated to produce, such cooperation, however, was delayed and only began after the first six months of the Fraud Section’s investigation, during which time Boeing’s response frustrated the Fraud Section’s investigation.
The department also considered that Boeing engaged in remedial measures after the offense conduct, including: (i) creating a permanent aerospace safety committee of the Board of Directors to oversee Boeing’s policies and procedures governing safety and its interactions with the FAA and other government agencies and regulators; (ii) creating a Product and Services Safety organization to strengthen and centralize the safety-related functions that were previously located across Boeing; (iii) reorganizing Boeing’s engineering function to have all Boeing engineers, as well as Boeing’s Flight Technical Team, report through Boeing’s chief engineer rather than to the business units; and (iv) making structural changes to Boeing’s Flight Technical Team to increase the supervision, effectiveness, and professionalism of Boeing’s Flight Technical Pilots, including moving Boeing’s Flight Technical Team under the same organizational umbrella as Boeing’s Flight Test Team, and adopting new policies and procedures and conducting training to clarify expectations and requirements governing communications between Boeing’s Flight Technical Pilots and regulatory authorities, including specifically the FAA AEG. Boeing also made significant changes to its top leadership since the offense occurred.
The Fraud Section ultimately determined that an independent compliance monitor was unnecessary based on the following factors, among others: (i) the misconduct was neither pervasive across the organization, nor undertaken by a large number of employees, nor facilitated by senior management; (ii) although two of Boeing’s 737 MAX Flight Technical Pilots deceived the FAA AEG about MCAS by way of misleading statements, half-truths, and omissions, others in Boeing disclosed MCAS’s expanded operational scope to different FAA personnel who were responsible for determining whether the 737 MAX met U.S. federal airworthiness standards; (iii) the state of Boeing’s remedial improvements to its compliance program and internal controls; and (iv) Boeing’s agreement to enhanced compliance program reporting requirements, as described above.
The Chicago field offices of the FBI and the DOT-OIG investigated the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorneys Cory E. Jacobs and Scott Armstrong and Assistant Chief Michael T. O’Neill of the Fraud Section and Assistant U.S. Attorney Chad E. Meacham of the Northern District of Texas are prosecuting this case.
Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: [email protected] or call (888) 549-3945.