Northern District of Texas
Press releases recorded for this federal judicial district.
Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 BillionRead the Press Release
The Boeing Company (Boeing) 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 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.”
“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.”
“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 department 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 department 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.
Eleven Meth, Cocaine Traffickers Charged in AmarilloRead the Press Release
Eleven alleged drug traffickers have been arrested and charged in Amarillo, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The defendants – who allegedly conspired to deal hundreds of grams of methamphetamine and cocaine – were arrested on Tuesday, Jan. 5 in a bust led by the Drug Enforcement Administration’s Amarillo Resident Office. During the operation, law enforcement seized more than 25 guns as well as kilogram quantities of drugs and U.S. currency.
The majority of the defendants made their initial appearances Wednesday morning before U.S. Magistrate Judge Lee Ann Reno.
Those charged in the 14-count indictment include:
- Christopher David Bell: conspiracy to distribute controlled substances, distribution of methamphetamine
- Randall Emery Bull: conspiracy to distribute controlled substances, distribution of methamphetamine
- Summer Nichole Wilcox: conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine
- Arizona Michelle Wood: conspiracy to distribute controlled substances, distribution of methamphetamine, unlawful use of a communications facility
- Ruben Gomez-Bastida: conspiracy to distribute controlled substances, distribution of methamphetamine
- Sergio Segovia: conspiracy to distribute controlled substances, distribution of methamphetamine
- Jimmy Pancheco: conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine
- Julia Annette Machado: conspiracy to distribute controlled substances, distribution of methamphetamine
- Katreyna Ann Betancourt: conspiracy to distribute controlled substances, distribution of methamphetamine
- Brenda Joynce Monroe: conspiracy to distribute controlled substances, distribution of methamphetamine
- Billy Loy Holliday: conspiracy to distribute controlled substances
“Combatting the scourge of illegal drug trafficking is one of the Justice Department’s top priorities,” said U.S. Attorney Erin Nealy Cox. “We are proud to have collaborated with so many law enforcement agencies to disrupt the flow of meth and cocaine and to take so many high-level dealers off the streets of Amarillo.”
“Tuesday’s city-wide, cooperative law enforcement efforts to disrupt the methamphetamine and cocaine trafficking in our city was a tremendous success,” said DEA Special Agent in Charge of the Dallas Division Eduardo A. Chávez. “The Yellow Rose of Texas is safer today as we bring justice to those drug traffickers who want to poison our communities and profit from those who struggle with addiction. DEA Amarillo’s efforts will never waver as we seek to protect the neighborhoods we call home.”
“Drug trafficking and the public safety risks associated with it is a top priority for HSI Dallas and we will continue to allocate substantial resources to combat those responsible,” said Ryan L. Spradlin, Special Agent in Charge of HSI's Dallas Field Office.”
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, the lead defendant, 44-year-old Christopher Bell, faces up to life in federal prison. Other defendants face between four years to life in prison.
Three defendants charged in the indictment remain fugitives.
The Drug Enforcement Administration and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Potter County Sheriff’s Office, the Randall County Sheriff’s Office, the Lubbock County Sheriff’s Office, the Texas Department of Public Safety, the Amarillo Police Department, the Potter and Randall County District Attorney’s Offices, the Texas Anti-Gang Unit, and the United States Marshal’s Service. The Texoma High Intensity Drug Trafficking Area (HIDTA) program, the Organized Crime Drug Enforcement Task Force (OCDETF) Southwest Region, and the National Guard Counter Drug unit provided operational support. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case
West Texas Child Predator Sentenced to Life in Federal PrisonRead the Press Release
A west Texas child predator was sentenced yesterday to life in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Michael Don Billups, 56, pleaded guilty in January to interstate transportation of a minor with intent to engage in criminal sexual activity. He was sentenced yesterday afternoon before U.S. District Judge James Wesley Hendrix.
“Mr. Billups committed heinous acts of sexual abuse against the most vulnerable in our society,” said U.S Attorney Erin Nealy Cox. “While no prison term can undo the pain and suffering Mr. Billups has caused, today’s life sentence sends a strong message that child sexual exploitation will be punished to the fullest extent of the law.”
“The FBI is dedicated to protecting the communities we serve from child predators,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “We will continue working with our partners to pursue individuals who commit horrific acts of child exploitation.”
According to court documents, Billups befriended a family while living in New Mexico. Over a period of time, Billups earned the family’s trust and, on occasion, the family’s minor children were allowed to stay at Billups’ residence overnight.
During the summer of 2019, Billups requested to take two of the children on vacation to Florida and Alabama. While at Billups son’s residence in Alabama, Billups sexually assaulted one of the minors.
In October 2019, the family moved from New Mexico to Lubbock, Texas. Shortly thereafter, one of the minor children outcried to his mother stating that Billups had been sexually assaulting him for several years at locations in New Mexico, Texas, and in Alabama.
According to court documents, the parents questioned a second sibling who informed them that he had observed activities between Billups and his sibling that confirmed the outcry.
To avoid detection, Billups told the minors not to tell anyone because it would make him feel sad. He also purchased toys and games for boys.
The FBI’s Dallas Field Office and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Sean Long prosecuted this case.
NDTX Round-Up: December 11-17Read the Press Release
GUILTY PLEA – EDUARDO HUERTA
On December 15, Eduardo Huerta, 20, plead guilty to possession with intent to distribute a controlled substance. Agents detained Huerta at a home which doubled as a methamphetamine conversion lab. At the residence, agents seized 18 large containers of liquid methamphetamine, 21,332 grams of crystal methamphetamine, and 3,013 grams of heroin. Huerta 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 – EMMANUEL CASTRO CALZADA
On December 15, Emmanuel Castro Calzada, 29, plead guilty to possession with intent to distribute a controlled substance. In January 2019, Calzada was in Dallas was in possession of approximately 6 kilograms of methamphetamine, 32 grams of cocaine, 30 grams of heroin. He possessed these narcotics with the intention to distribute and sell them for a profit. Additionally, Calzada possessed a .40 caliber handgun and $17,415 in drug proceeds. Calzada faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney P.J. Meitl is prosecuting this case.
SENTENCING – MAYELI MOLINA
On December 10, Mayeli Molina, 32, was sentenced to 292 months in federal prison for conspiracy to distribute a controlled substance. According to evidence presented at trial, Molina possessed methamphetamine of at least 500 grams with the intent to distribute it to others in the Northern District. She was found guilty in December 2019. This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Fort Worth Police Department, OCDETF, and HIDTA. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – VICTOR ALFONSO MAUICIO-DEL RIO
On December 8, Victor Alfonso Mauricio-Del Rio, 33, plead guilty to conspiracy to possess with intent to distribute a controlled substance. Mauricio-Del Rio was intercepted by a court authorized wire and electronic wiretap where he used coded language to discuss the purchase of cocaine. Officers conducted a traffic stop of Mauricio-Del Rio’s co-conspirators and seized three and half kilograms of cocaine. Law enforcement also conducted a traffic stop of Mauricio-Del Rio vehicle and he was found to have cocaine. Mauricio-Del Rio faces up to 40 years in federal prison. This case was investigated by the Drug Enforcement Administration, Texas DPS, and OCDETF. Assistant U.S. Attorney George Leal is prosecuting this case.
Fort Worth Meth Dealer Sentenced to More Than 20 Years for Role in Money Laundering ConspiracyRead the Press Release
A Fort Worth methamphetamine dealer was sentenced today to 262 months in federal prison for participating in a conspiracy to distribute drugs and launder approximately $275,000 of drug proceeds to Mexico, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Yesi Bastida-Carranza, 31, was sentenced today by District Judge Reed C. O’Connor after an extensive investigation led by IRS Criminal Investigation Dallas Field Office. Earlier this year, Bastida-Carranza pleaded guilty to conspiracy to possess a controlled substance with intent to distribute and conspiracy to commit money laundering.
“Our office is committed to disrupting and dismantling criminal organizations that distribute drugs, launder illicit proceeds, and attempt to corrupt our society,” said U.S. Attorney Erin Nealy Cox. “This case underscores the resolve of our law enforcement partners to bring justice against these criminal enterprises.”
“One of the primary missions of the Internal Revenue Service, Criminal Investigation, Dallas Field Office, is to identify, pursue and dismantle transnational drug trafficking and money laundering organizations that prey on North Texans,” stated Acting Special Agent in Charge of the IRS Criminal Investigations Dallas Field Office, Kevin Caramucci. “We extend our gratitude to our federal and state partners for their assistance in taking down Bastida-Carranza and his family, preventing multiple kilograms of methamphetamines from entering our neighborhoods.”
According to a criminal complaint filed in March, Bastida-Carranza was part of a money laundering organizing which made at least 713 wire transactions totaling more than $660,000 of illegal drug proceeds sent to Mexico during 2016 and 2017. Bastida-Carranza executed at least 293 of these wire transactions by sending $273,181.30.
To execute the wire transactions, Bastida-Carranza and his co-conspirators, including his four siblings and others, initially used two “sender” addresses – one which belonged to Bastida-Carranza in Haltom City. As the scheme progressed, the money laundering organization used numerous addresses and phone numbers to avoid detection by law enforcement. Bastida-Carranza and other co-conspirators received a portion of the money involved in these transactions as compensation for organizing these laundering activities.
In October 2017, law enforcement executed a search warrant for social media accounts controlled by Bastida-Carranza. As proof that other co-conspirators made wire transfers, they sent Bastida-Carranza wire transaction receipts via Facebook messenger. Additionally, law enforcement placed a tracking device on Bastida-Carranza’s car which showed it visiting various wire remitter stores at the time wire transactions were sent by him to beneficiaries in Mexico.
Bastida-Carranza regularly used fictious names and false documents to execute wire transactions. He was captured on video conducting three wire transfers at a DolEx kiosk sending funds to a beneficiary in Mexico using an alias.
In March 2020, law enforcement executed a search warrant at Bastida-Carranza’s home where they seized approximately five kilograms of methamphetamine, approximately $50,000 of U.S. currency, and a drug ledger, according to a federal complaint
Investigators were also aware of another location that Bastida-Carranza frequented in Fort Worth. The homeowner at the address said that Bastida-Carranza had access to a shed located on the property. Inside the shed, investigators found approximately 15 kilograms of methamphetamine, digital scales, as well as drug processing equipment.
During an interview with law enforcement, Bastida-Carranza admitted to distributing methamphetamine at the direction of a Mexico based source of supply. He also admitted that he received beneficiary names located in Mexico, to whom he wired the meth sales proceeds and directed his other co-conspirators to do the same. Bastida-Carranza also admitted to wiring the drug proceeds he received to drug traffickers based in Mexico.
The IRS Criminal Investigation Dallas Field Office, Drug Enforcement Administration, Homeland Security Investigations, the Fort Worth Police Department and the Tarrant County Sherriff’s Office conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted this case.
U.S. Attorney Erin Nealy Cox to Depart Justice DepartmentRead the Press Release
United States Attorney Erin Nealy Cox will resign from the Department of Justice, the office announced today.
“Serving as United States Attorney has been the privilege of a lifetime. Representing our nation is a tremendous responsibility – one I have tried to undertake with integrity and with accountability to the rule of law. I am grateful to President Trump and Senators Cornyn and Cruz for giving me this opportunity to lead, and to the Attorney General for putting his trust in me,” Nealy Cox said. “Of course, I was never the key to the achievements of this great office. Through a courthouse shooting, a government shutdown, a global pandemic, and unprecedented civil unrest, the attorneys and staff of the Northern District of Texas have never wavered in their commitment to justice. We’ve seen similar determination from our federal, state, and local law enforcement partners. I am thankful for their passion and inspired by their dedication.”
Nominated by President Donald J. Trump in September 2017 and unanimously confirmed by the U.S. Senate two months later, U.S. Attorney Nealy Cox was sworn into office on November 17, 2017. Under her leadership, the Northern District of Texas (NDTX) has thrived, prosecuting more cases and more defendants than any other extra-large non-border district in the nation.
In addition to her duties here in the Lone Star State, Ms. Nealy Cox led on a national level, serving as Chair of the Attorney General’s Advisory Committee, a body of federal prosecutors advising the AG on policy and operational issues. Tasked with articulating Justice Department initiatives to lawmakers and to the public, she testified twice before the U.S. Senate. She was named co-chair of the Attorney General’s Task Force on Violent Anti-Government Extremism, served on DOJ’s Religious Liberty Taskforce, and was one of five U.S. Attorneys advising DOJ’s China Initiative, a group of senior officials combatting state-sponsored economic espionage.
“Erin Nealy Cox is a top-notch leader and lawyer – one of the many reasons I selected her to chair the Attorney General’s Advisory Committee,” stated Attorney General William P. Barr. “A fierce advocate against human trafficking, public corruption, domestic violence, and violent crime, she has demonstrated an unwavering commitment to the pursuit of justice in North Texas and nationwide. I thank her for her dedicated service to the Department and wish her every success moving forward.”
In the Northern District of Texas, Nealy Cox advanced an impressive list of priorities. She focused on reducing the District’s rising violent crime rates by aggressively enforcing laws against firearm possession by prohibited persons, charging the second highest number of gun crime defendants in the country. In February 2019, she launched the district’s Domestic Violence Initiative, designed to keep guns out of the hands of armed abusers. This groundbreaking effort, rooted in research showing that domestic violence offenders with access to a gun are five times more likely to murder their partner, led to the Attorney General appointing Nealy Cox chair of a newly created Domestic Violence Working Group. At her direction, the District also took aim at unlicensed dealing of firearms at gun shows, unlawful possession of 3D printed weapons, and private sellers “engaged in the business” of dealing firearms, including the man who sold an AR-15 to the Midland-Odessa shooter.
A passionate advocate against human trafficking, Nealy Cox attacked sexual exploitation from all angles, working with Homeland Security Investigations (HSI) to revamp the North Texas Trafficking Task force. In June 2020, the trafficking task force took down CityXGuide, a leading source of online ads for sex trafficking, and used a newly-passed law, FOSTA, to charge its owner with reckless disregard of trafficking – a move that drew praise from lawmakers nationwide. She also attacked the demand-side of human trafficking by charging sellers as well as buyers and instituted a system to seek restitution for victims.
Nealy Cox’s all-angles approach extended to public corruption, where her team aggressively pursued all facets of public corruption: bribe payers, recipients, and facilitators. In August 2018, she announced charges against the former Mayor Pro Tem of Dallas and the Louisiana businessman who paid him nearly half a million dollars in bribes to promote Dallas County Schools’ bus stop-arm program. The prosecution also brought down a facilitator who helped funnel the money. Six months later, Nealy Cox announced charges against another Dallas City Councilwoman, who pleaded guilty to accepting tens of thousands of dollars in bribes from a local real estate developer.
A self-professed data nerd, Nealy Cox employed a data-driven model to kick off award-winning Project Safe Neighborhoods programs in Dallas, Lubbock, and Amarillo. In partnership with a top-tier criminologist, she and the various PSN task forces analyzed district-wide violent crime data to zero in on violent crime hotspots that could benefit from collaborations between federal law enforcement and police departments. In Dallas, the PSN Taskforce also implemented a community-engagement strategy using Crime Prevention Through Environmental Design (CPTED) to reinvigorate blighted areas. Even as municipalities across North Texas struggled with rising crime rates, all three PSN hotspots in Amarillo, Lubbock, and Dallas saw marked decreases in violent crime.
She advocated statistical analysis in other areas of the law too, pushing prosecutors to use data to bring down pill mill doctors and other corrupt medical practitioners. The District brought a wide range of drug prosecutions – from darkweb drug dealers, to cartel trafficking operations, to an MLB employee charged with dealing the fentanyl that killed a beloved LA Angels pitcher. And in the wake of the pandemic, NDTX prosecutors did not hesitate to target those who exploited the COVID-19 crisis, bringing multiple COVID fraud cases as well as obtaining injunctions against doctors touting sham therapies and fake cures.
A prosecutor at heart, Nealy Cox did not shy away from the courtroom. In September 2019, she worked with a fellow AUSA to personally try Michael Webb, the man who kidnapped an 8-year-old girl in broad daylight off the streets of Fort Worth. Following emotional testimony from the mother and the agents that rescued the child in the defendant’s hotel room, a jury deliberated for just eight minutes before returning a guilty verdict. Nealy Cox also argued the sentencing phase, which resulted in a life sentence.
Ms. Nealy Cox’s last day in the office will be January 8, 2021. Following her departure, First Assistant U.S. Attorney Prerak Shah will assume the role of Acting U.S. Attorney.
U.S. Attorney Erin Nealy Cox in her office in the Earle Cabell Federal Building.Third Dallas Real Estate Developer Charged with Bribing City Council MembersRead the Press Release
Another Dallas real estate developer has been charged with bribing city officials, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an investigation led by the FBI’s Dallas Field Office, a federal grand jury indicted Sherman Roberts, the 66-year-old president of City Wide Community Development Corporation, on one count of conspiracy to commit bribery concerning programs receiving federal funds and one count of bribery concerning a local government receiving federal benefits on Wednesday. Mr. Roberts is scheduled to make his initial appearance before U.S. Magistrate Judge Renee Toliver Friday morning.
“The U.S. Attorney’s Office is determined to restore Dallas’ trust in its city government by systematically dismantling the ecosystems that allowed this sort of corruption. We continue to attack the problem from every angle, targeting bribe payors, recipients, and facilitators,” said U.S. Attorney Erin Nealy Cox. “Cities flourish when leaders have only constituents’ best interests at heart. We will not stop until that goal is achieved.”
“Bribing government officials in exchange for official acts destroys the public’s confidence in city government. The criminal activity alleged today demonstrates the willingness of our trusted public officials to waste valuable resources intended for the residents of Dallas, while circumventing the processes they were charged to uphold. The FBI and our law enforcement partners will continue to ensure that those who pay bribes, accept bribes and facilitate bribe payments are held fully accountable,” said Matthew J. DeSarno, Special Agent in Charge of the FBI’s Dallas Field Office.
According to the indictment, Mr. Roberts allegedly bribed two City Council Members – identified in charging documents as “Council Member A” and “Council Member B” – to support his various apartment projects.
In return for cash payments and the promise of future payments after her city council tenure ended, Council Member A voted to authorize more than $1.9 million in City of Dallas funding for Mr. Robert’s Serenity Place project, recommended that the project receive a 9 percent low income housing tax credit from the Texas Department of Housing, and demanded that developers with competing projects withdraw their applications for funding in order to increase Mr. Robert’s chances.
“Right now, you and me are making money” from the real estate dealings, Mr. Roberts allegedly told Council Member A, who was then serving as a leader of Dallas’ Housing Committee, in spring 2015.
Together, the pair then approached Council Member B for his help with another one of Mr. Robert’s developments.
In return for a $600 cash payment plus the promise of a $60,000 lump sum payment and a $2,000 monthly stipend, Council Member B agreed to stop the City of Dallas from issuing a Request for Proposal (RFP) for Mr. Robert’s Patriot’s Crossing project and to cast votes in favor of the project on the City Council.
Mr. Roberts is the third real estate developer charged with bribery in the past two years. Devin Hall, the developer behind the Grand Park Place apartment project, pleaded guilty in August 2020. Ruel Hamilton, the AmeriSouth Realty Group executive who backed the Royal Crest housing project, is slated for trial in February 2021.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Roberts is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 15 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigation’s Dallas Field Office. Assistant U.S. Attorneys Marcus Busch and Andrew Wirmani are prosecuting the case.
Darkweb Drug Trafficker Arrested in Operation DisrupTor Pleads GuiltyRead the Press Release
A darkweb cocaine and heroin trafficker has pleaded guilty to drug conspiracy, announced U.S. Attorney for the Northern District of Texas.
Aaron Brewer - a 39-year-old charged under Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet – pleaded guilty Thursday to conspiracy to possess with intent to distribute a controlled substance.
“Drug traffickers often believe the anonymity of the darknet will shield them from criminal prosecution. This prosecution proves that’s not the case,” said U.S. Attorney Erin Nealy Cox. “The Northern District of Texas is committed to finding and stopping dealers wherever they are – whether that’s on the streets or in the dark crevasses of the internet.”
“Stopping the flow of drugs into our communities is of utmost importance, having seen the devastation they bring,” said Thomas Noyes, Inspector in Charge of the U.S. Postal Inspection Service Fort Worth Division. “While criminals exploit technology in an effort to stay hidden, Postal Inspectors will spare no effort in their mission to protect the U.S. Mail, the Postal Service and its customers. We will continue to find, and bring to justice, individuals like this, and we thank the U.S. Attorney’s Office and F.B.I. for their significant work.”
According to plea papers, Mr. Brewer admitted he created darkweb market vendor accounts in order to sell cocaine, heroin, and other controlled substances online.
Mr. Brewer’s customers paid him in cryptocurrency, typically bitcoin, and frequently used aliases for shipping. After receiving payment, Mr. Brewer used the U.S. Mail and other shipping services to transmit controlled substances to customers in North Texas and across the country.
In March 2020, law enforcement discovered a ledger linking controlled substances orders with tracking numbers inside his apartment.
Mr. Brewer later admitted that over an 11-monthe period, he dealt more than 4,000 grams of cocaine and more than 80 grams of black tar heroin, then used the more than $50,000 in proceeds of the illegal activity to pay his mortgage.
He now faces up to 20 years in federal prison. As part of his plea agreement, he agreed to forfeit a property in Plano, Texas to the government.
The U.S. Postal Inspection Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Former Amarillo Banker Pleads Guilty to EmbezzlementRead the Press Release
A former Amarillo banker pleaded guilty for her role in embezzling thousands of dollars from a local bank, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Heather M. Cooper, 40, pleaded guilty to a felony information charging one count of theft, embezzlement, or misapplication by a bank officer or employee on Monday before Magistrate Judge Lee Ann Reno.
According to court documents, Ms. Cooper began working at FirstCapital Bank of Texas in Amarillo in 2012 as a mortgage loan processor where she met with customers at loan closings and guided them through the mortgage and loan process.
From August 2017 to January 2020, Ms. Cooper admitted to making more than 19 fraudulent withdrawals from at least four bank customers accounts. On at least 18 separate occasions, Ms. Cooper signed a withdrawal slip from the bank customer’s account, which she then used to purchase a cashier's check – each exceeding $1,000 in value. Additionally, Ms. Cooper admitted to making a cash withdrawal from a bank customer's account by forging the customer’s signature on the withdrawal slip.
In plea papers, Ms. Cooper also admitted to using a credit card issued by FirstCapital Bank of Texas for personal expenses including payments to a cell phone company and various restaurants.
In total, Mrs. Cooper caused at least $32,171.00 of losses to the bank and its customers. She now faces up to 30 years in federal prison. A sentencing date is set for April 20, 2021 before U.S. District Judge Matthew J. Kacsmaryk.
The FBI and Amarillo Police Department conducted the investigation. Assistant U.S. Attorney Sean Taylor is prosecuting the case.
Six Charged in Frequent Flier FraudRead the Press Release
Six men have been charged with stealing millions of airline frequent flier miles, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Wojciech Borkowski (43, of Zgierz, Poland), Terran Oliver (51, of Allen, TX), Semaj Lee (55, of Oklahoma City, OK), Derrick Booker (49, of Spencer, OK), Yusuf Siddique (30, of Folsom, CA), and Stanley Benton (42, of Los Angeles, CA) on conspiracy to commit wire fraud in August 2019.
The lead defendant, Mr. Borkowski, was arrested in Poland in May 2020. Following a successful extradition request, he was handed over to FBI custody on Friday morning, and flown from Warsaw to Dallas over the weekend. He made his initial appearance before Magistrate Judge Renee Harris Toliver Monday morning.
According to the indictment, Mr. Borkowski allegedly hacked into consumers’ airline miles accounts, then used the compromised accounts to book flights for unsuspecting passengers who’d purchased travel through Mr. Oliver, Mr. Lee, Mr. Booker, Mr. Siddique, and Mr. Benton.
The U.S.-based passengers would send their requested itinerary and personal information, including names and dates of birth, to one of the five men, who would then send that information, along with a money order, to Mr. Borkowski. Mr. Borkowski would then book the passenger’s flight with fraudulently obtained miles and send the PRN number back to the men, who would transmit it to the passengers to generate a boarding pass.
The conspiracy involved the loss of millions of earned airline miles.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty.
If convicted, Mr. Borkowski and his coconspirators each face up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The extradition from Poland was secured through the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Sid Mody is prosecuting the case.
NDTX Round-Up: December 4-10Read the Press Release
GUILTY PLEA – VANCY BRIDGES
On December 4, Vancy Bridges, 76, plead guilty to misprision of a felony. Bridges worked as a doctor and supervised nurse practitioners for in-home patients. Bridges was unaware that that a co-worker had been previously convicted of healthcare-related fraud and had no medical training. In July 2016, Bridges observed a patient list for patients and visits that he did not perform. Bridges questioned why these patients were listed as attributed to himself. Bridges did not report the fraudulent activity to a law enforcement authority after he became aware of it. He admitted to knowing that the conduct was illegal and that another individual used his unauthorized signature to bill Medicare. Vancy faces up to 3 years in federal prison for his crimes. This case was investigated by the Department of Health and Human Services OIG and the FBI. Assistant U.S. Attorney John De La Garza is prosecuting this case.SENTENCING – LARRY DONELL BOOKER
On December 7, Larry Donell Booker, 61, was sentenced to 37 months in federal prison for conspiracy to possess with intent to distribute Hydrocodone. Booker met a confidential government source to arrange a transaction of Hydrocodone. Two days later, Booker sold the government source 1,000 pills of suspected Hydrocodone in exchange for U.S. currency. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuted this case.GUILY PLEA – KEVIN RAY STANDFIELD
On December 8, Kevin Ray Standfield, 36, plead guilty to possession of a firearm by a convicted felon, possession with intent to distribute a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime. Dallas Police Officers observed Standfield at a drug house conducting what officers believed were drug transactions. Officers obtained a search warrant for the residence. While executing the search warrant, officers found Standfield in the residence running down the hallway into the bathroom with a firearm and suspected cocaine in his hands. Officers recovered powered cocaine, methamphetamine, marijuana, assorted pills, and a firearm at the residence. Standfield faces up to life in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Dallas Police Department. Assistant U.S. Attorney John Boyle is prosecuting this case.SENTENCING – ROBERT ELMER KERR
On December 10, Robert Elmer Kerr, 50, was sentenced to 150 months for receipt of child pornography. Kerr admitted to downloading and possessing thousands of files of child pornography on his laptop. Law enforcement conducted a forensic analysis of Kerr’s laptop and external hard drive and discovered 24,000 images and 1,000 videos depicting sexually explicit conduct and the lewd and lascivious exhibition of minors. This case was investigated by the FBI and the Irving Police Department. Assistant U.S. Attorney Camille Sparks is prosecuted this case.SENTENCING – MARIO ISABEL CARILLO PERALES
On December 1, Mario Isabel Carillo Perales, 37, was sentenced to 11 years in federal prison for possession with the intent to distribute a controlled substance. Undercover agents contacted a Mexico based methamphetamine drug dealer who agreed to sell one kilogram of methamphetamine. Perales delivered one kilogram of methamphetamine to undercover agents in exchange for U.S. currency. Perales admitted that the methamphetamine he sold originated from Mexico. He also indicated that he distributed 3.5 kilograms of methamphetamine in Dallas and one kilogram in Oklahoma. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull prosecuted this case.SENTENCING – CHRISTOPHER DEON HORTON
On December 3, Christopher Deon Horton, 35, was sentenced to 10 years in federal prison for possession with intent to distribute cocaine. In September 2019, Horton possessed approximately 100 grams of cocaine which he intended to distribute. This case was investigated by Drug Enforcement Administration and the Ennis Police Department. Assistant U.S. Attorney Phelesa Guy prosecuted this case.Dallas Men Charged with Gun, Drug CrimesRead the Press Release
Two Dallas men have been charged with gun and drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kewon Dontrell White, 22, was indicted on one count of felon in possession of a firearm. Mr. White – who is now facing a Dallas County murder charge in the death of rapper Melvin Nobel, also known as M03 – was arrested by ATF, the U.S. Marshals Service, and Dallas Police Department patrol officers Wednesday in Dallas’ Oak Cliff neighborhood.
Known affiliate Devin Maurice Brown, Jr, 27, was indicted on one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute a controlled substance; he was arrested on November 19, at his residence in Oak Cliff.
“A gun in the hands of a prohibited person is not a theoretical risk, but an actual danger to the community,” said U.S. Attorney Erin Nealy Cox. “We are proud to partner with ATF and our local police departments to take armed felons and drug dealers off the streets.”
“ATF remains vigilant and steadfast in our fight against violent crime in the Dallas Metroplex. Together with the United States Attorney’s Office and our law enforcement partners, we will continue to pursue the worst of the worst lawbreakers living amongst us in our communities. If you are in the illegal possession of a firearm, be warned, no one can elude police forever,” said ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II.
According to a criminal complaint filed in November, law enforcement discovered a stolen AK-47 in Mr. Brown’s closet during a lawful search of his residence. They also found a botanical substance that field tested positive for synthetic cannabinoids (commonly referred to as “K2” or “spice”), a bottle of multicolored tablets that field tested positive for methamphetamine, several scales, baggies, and more than $3,200 in U.S. currency.
According to a second criminal complaint filed later that same month, law enforcement discovered a 9 mm pistol in Mr. White’s pants pocket. Mr. White fled, first on his dirt bike and then on foot, when officers attempted to effectuate a traffic stop.
Indictments are merely allegations of criminal conduct, not evidence. Like all defendants, Mr. White and Mr. Brown are presumed innocent until proven guilty in a court of law.
If convicted, Mr. White faces up to 10 years in federal prison on the gun charge. Mr. Brown faces up to 20 years on the gun and drug charges.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation with assistance from the Duncanville and Lancaster Police Departments. The U.S. Marshal’s Service assisted in the arrest. Assistant U.S. Attorneys Myria Boehm and Abe McGlothin are prosecuting the case.
Justice Department Honors Nonprofit Better Block for “Outstanding Community Involvement” in PSNRead the Press Release
The U.S. Department of Justice has recognized Dallas-based nonprofit Better Block for its support of the U.S. Attorney’s Project Safe Neighborhoods (PSN) Initiative, announced U.S. Attorney Erin Nealy Cox. The Better Block Foundation, launched in 2015 by Jason Roberts, was the sole recipient of DOJ’s “Outstanding Community Involvement” PSN award, which recognizes outstanding efforts to restore safety and security to communities across the nation.
“I’m incredibly proud of my office’s partnership with Better Block. Project Safe Neighborhoods relies on innovative solutions to reduce violent crime – a philosophy Better Block embraces as well, ” said U.S. Attorney Erin Nealy Cox. “I congratulate Jason, Krista, and the Better Block staff on this honor. We look forward to continuing our important work with them to protect and enrich this neighborhood.”
Project Safe Neighborhoods, DOJ’s signature violent crime reduction initiative, brings together state, local, and federal law enforcement, nonprofits, and community stakeholders to surge resources to cities’ most violent communities. Using sophisticated data analysis, the U.S. Attorney’s Office for the Northern District of Texas zeroed in on a hotspot in Northeast Dallas, near the intersection of Route 75 and LBJ Freeway, then convened a PSN Taskforce to address it. The Task Force combines traditional law enforcement activities -- patrolling struggling neighborhoods, apprehending violent offenders, and bringing them to justice through the courts – with innovative approaches like recidivism reduction and community engagement to make a difference in hard-hit areas.
In fall 2019, the PSN Task Force partnered with Better Block to transform a blighted intersection inside the PSN hotspot into a vibrant community plaza with updated lighting, container gardens, playground equipment, and a popup lending library. The colorful plaza – funded through PSN grants and donations from TBK Bank – quickly became a gathering place for families from the community and nearby Tasby Middle School.
A prime example of Crime Prevention Through Environmental Design (CPTED), the project has had an outsized impact: The intersection, once riddled with criminal activity, has not seen a single violent crime since the plaza was erected over a year ago.
The plaza is located at the Five Points Intersection in Dallas’ Vickery Meadow. Photos of the plaza are available here. More information on the Northern District of Texas’ PSN initiative can be found here.
Husband, Wife Sentenced in $15 Million Embezzlement SchemeRead the Press Release
A Red Oak, Texas couple has been sentenced to a combined 18+ years in federal prison for their roles in a $15 million retirement plan embezzlement scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Vantage Benefits Administrators co-owner Wendy Richie, 59, pleaded guilty in June to two counts of theft from an employee benefit plan and one count of aggravated identity theft. She was sentenced Thursday by U.S. District Judge Sam Lindsay to 132 months in federal prison and ordered to pay $12.6 million in restitution.
Her husband, Vantage co-owner Jeffrey Richie, 55, pleaded guilty to two counts of aiding and abetting theft from an employee benefit plan. He was sentenced to 87 months and ordered to pay $7.4 million in restitution.
“These defendants lined their pockets at the expense of hardworking Americans saving for retirement,” said U.S. Attorney Erin Nealy Cox. “The Northern District of Texas is committed to seeking justice on behalf of vulnerable retirees and workers setting money aside for their golden years and beyond. We are proud to hold the Richies accountable for this brazen misconduct.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to Department of Labor. We will continue to work with EBSA and our law enforcement partners to safeguard retirement benefits intended for American workers,” stated Steven Grell, Special Agent-in-Charge of the Dallas Region for the U.S. Department of Labor – Office of Inspector General.
The Richie’s company served as third party administrator for dozens of pension and retirement funds.
According to plea papers, Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian. Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account, then into personal bank accounts.
Even after a Vantage employee confronted Mr. Richie about Ms. Richie’s conduct, Ms. Richie continued to embezzle money from the funds. At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, he admitted.
In total, the pair admitted to submitting more than 90 unauthorized distribution requests from 13 pension plans and 7 retirement plans from 2014 and 2017.
The Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Labor’s Employee Benefits Security Administration, and the Texas State Auditor’s Office conducted the investigation. Assistant U.S. Attorneys Nick Bunch and Christopher Stokes prosecuted the case.
Michigan Man Charged with Transporting Minor for Criminal Sexual ActivityRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas has charged a Michigan man with traveling with a child across state lines in order to commit a sex crime, announced U.S. Attorney Erin Nealy Cox.
Thomas John Boukamp, 20, was charged via criminal complaint Sunday with transportation of a minor with intent to engage in criminal sexual activity.
Mr. Boukamp was arrested at a residence in Alden, Michigan on Sunday morning, and made his initial appearance in federal court in Grand Rapids Monday afternoon.
FBI Victim Specialists reunited the minor with her family this weekend.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Boukamp is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to life in federal prison.
The Lubbock Police Department’s Special Victims Unit and the Federal Bureau of Investigation’s Lubbock Resident Agency conducted the investigation with assistance from a Michigan State Police SWAT team and the Antrim County Sheriff’s Department. Assistant U.S. Attorneys Jeff Haag and Callie Woolam are prosecuting the case.
For-Profit Trade School Owner Charged with Defrauding VA, Student VeteransRead the Press Release
The owner of a for-profit trade school has been charged with defrauding the U.S. Department of Veterans Affairs and student veterans, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jonathan Dean Davis, the 43 year-old owner of Retail Ready Career Center, was indicted Wednesday on seven counts of wire fraud, two counts of aggravated identity theft, and four counts of money laundering. Mr. Davis voluntarily surrendered and made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford Monday.
According to the indictment, Mr. Davis owned and operated Retail Ready Career Center, Inc., a for-profit corporation that marketed its six-week HVAC training course to veterans, whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-911 GI Bill.
In order to receive GI Bill approval and funding from the VA, Mr. Davis allegedly lied to the Texas Workforce Commission (TWC), the Texas Veterans’ Commission (TVC), and the VA, stating that Retail Ready had been continuously operating as an educational institution for at least two years, when in truth, Retail Ready had never trained any students. He also certified that there were no criminal or civil actions against him, when in fact he was facing a criminal charge and multiple civil judgements. He also mislead a CPA and lied to the TWC, the TVC, and the VA about Retail Ready’s financial condition.
Mr. Davis allegedly concealed Retail Ready’s fraudulently-obtained VA approval from veteran applicants, to whom he also allegedly misrepresented graduates’ career prospects.
Mr. Davis typically charged the VA $18,000 to $21,000 per student-veteran per course. In total, he received over $71 million in GI Bill benefits from the VA.
The indictment alleges that Mr. Davis used the proceeds from his fraud to purchase a home on Lake Forest Drive, in Dallas, Texas, a Lamborghini Aventador, Ferrari 488, and Bentley Continental GT.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Davis is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 184 years in federal prison.
The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office. Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case.
NDTX Round-Up: November 13-19Read the Press Release
GUILTY PLEA – MICHAEL DYWAYNE HARRIS
On November 17, Michael Dywayne Harris, 39, plead guilty to possession with intent to distribute cocaine. A coconspirator requested Harris to deliver four kilograms of cocaine to a Dallas area drug house. After delivering the cocaine and collecting the drug proceeds, Harris was stopped by Dallas Police Officers. The officers searched Harris’s car and found $67,137.81 in drug proceeds, cocaine, and pills. Harris faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Suzanna Etessam is prosecuting this case.
GUILTY PLEA – OLAYINKA ELIZABETH TAIWO
On November 17, Olayinka Elizabeth Taiwo, 34, plead guilty to make a false statement in an application for a passport. Taiwo submitted an executed passported application to the United States Post Office. In her application, Taiwo used another individuals name and personal identifying information as her own. Taiwo faces up to 10 years in federal prison for her crimes. This case was investigated by the U.S. Department of State and the FBI. Assistant U.S. Attorney Walt Junker is prosecuting this case.
SENTENCING – AIRUN DAMON DUNN
On November 18, Airun Damon Dunn, 25, was sentenced to 105 months in federal prison for possession with intent to distribute a controlled substance. Dunn sold heroin to another individual five times. In connection with the heroin sales, Dunn unlawfully sold three firearms. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive. Assistant U.S. Attorney P.J. Meitl prosecuted this case.
Final Defendant Sentenced to More than 17 Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced Tuesday to more than 17 years in federal prison for his role in a brutal machete attack at an apartment complex in Dallas, Texas.
Arnold Stephen Miralda-Cruz, age 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday to 210 months in federal prison by U.S. District Judge Jane J. Boyle. Miralda-Cruz is the last of seven defendants sentenced in the case.
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Deputy Agent in Charge Christopher M. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – mostly El Salvadorian nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Miralda-Cruz, Hernandez-Fuentes, Gutierrez-Ramos, and another gang member attacked and extorted a third man outside his home in Irving. Armed with a machete from the night before, Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On Aug. 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On Aug. 19, 2017, several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a Shell gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On Sept. 25, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
HSI, the Irving Police Department, and the Dallas Police Department conducted the investigation. Trial Attorney Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
Final Defendant Sentenced to 17+ Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced this week to more than 17 years in federal prison for his role in several brutal machete attacks at apartment complexes in Dallas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Arnold Stephen Miralda-Cruz, 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday afternoon to 210 months in federal prison, an upward departure by U.S. District Judge Jane J. Boyle. Mr. Miralda-Cruz is the last of seven defendants sentenced in the case.
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Christopher M. Miller, deputy agent in charge Homeland Security Investigations Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – all El Salvadorian and Honduran nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Mr. Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Mr. Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Mr. Miralda-Cruz, Mr. Hernandez-Fuentes, and Mr. Gutierrez-Ramos attacked and extorted a third man outside his home in Irving. Armed with the a machete from the night before, Mr. Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On August 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On August 19, 2017 several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Mr. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On September 25, 2017, Mr. Hernandez-Fuentes, Mr. Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
The defendants, who were in the United States illegally at the time of the crimes, may be subject to deportation after serving their sentences.
Homeland Security Investigations, the Irving Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case with Trial Attorney Julie Finocchiaro of the Department of Justice's Organized Crime and Gang Section.
NDTX Round-Up: November 6-12Read the Press Release
GUILTY PLEA – ENRIQUE BACA-TORRES
On November 10, Enrique Baca-Torres, 39, plead guilty to aiding and abetting possession with intent to distribute methamphetamine. Undercover officers met with Baca-Torres and another coconspirator at Dallas gas station. Baca-Torres and the coconspirator loaded a speaker that contained approximately 13 kilograms of methamphetamine into their vehicle. As Baca-Torres departed the gas station, he was stopped by Dallas County Sheriff’s Office for a traffic violation. A law enforcement canine detected the drugs located in the vehicle. Baca-Torres faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Rachael Jones is prosecuting this case.
SENTENCING – MICHAEL ALLEN GIBBS
On November 12, Michael Allen Gibbs was sentenced to 51 months in federal prison for possession with intent to distribute a controlled substance. During a post-arrest interview, Gibbs admitted to purchasing heroin from two individuals with the intention of distribution. Gibbs also was in possession of three handguns and multiple rounds of ammunition. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department. Assistant U.S. Attorney P.J. Meitl.
SENTENCING – MACLEAN MAFO
On October 22, Maclean Mafo, 41, was sentenced to 98 months in federal prison and ordered to pay $1,999,083 in restitution for wire fraud. Mafo devised a scheme to defraud the IRS and obtain money by fraudulent means. He unlawfully obtained personal identification information of U.S. taxpayers including names addresses and Social Security numbers. Mafo used the stolen taxpayer identification information to electronically file bogus individual IRS tax returns. He opened bank debit accounts to receive the fraudulently tax refunds and converted them to use for himself and others. This case was investigated by the IRS – Criminal Investigations. Assistant U.S. Attorney Nick Bunch prosecuted this case.
SENTENCING – RAMON COSCOLLUELA
On October 8, Ramon Coscolluela, 42, was sentenced to 57 months in federal prison and ordered to pay $50,000 in restitution for laundering of monetary instruments. Coscolluela met with an undercover officer in September 2017 at a purported investment office. The undercover officer explained that he had a large sum of cash which originated from cocaine sales that needed to be cleaned. In a subsequent meeting, Coscolluela agreed that, for a fee, he would disguise the source the drug sales through different monetary instruments and eventually return the drug proceeds back to the undercover officer. Over the course of the conspiracy, Coscolluela delivered six monetary instruments totaling $188,600. This case was investigated by IRS – Criminal Investigations and the FBI. Assistant U.S. Attorney John De La Garza prosecuted this case.
Man Charged with Offering to ‘Break’ Sex Trafficking VictimRead the Press Release
A 37-year-old man who volunteered to torture a sex trafficking victim for money has been charged with human trafficking crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Billie Joe Sanford, of Eustace, Texas, was charged via criminal complaint on Friday, Nov. 6 with attempting to aid and abet sex trafficking. He made his initial appearance before Magistrate Judge David Horan on Monday, Nov. 9.
Today, a federal magistrate judge ordered Mr. Sanford released on conditions pending trial. The U.S. Attorney’s Office has vowed to vigorously appeal that decision. The Defendant will be held in custody pending the filing of the appeal.
“I shudder to think what could have happened had the ‘victim’ in this case been a vulnerable woman, rather than an undercover agent. The North Texas Trafficking Task Force, led by Homeland Security Investigations (HSI), is dedicated to stopping this sort of brutality in all its many forms,” said U.S. Attorney Erin Nealy Cox. “Allowing this defendant back into the community is unacceptable to us and we will do everything we can to keep him off the streets until we can bring him to justice.”
“Human trafficking is one of the most despicable crimes against humanity that HSI investigates. The vicious criminals that often manipulate or force their victims into unspeakable situations for profit will pay a price of their own,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “We will use every resource available with our law-enforcement partners to identify and hold responsible anyone who thinks this behavior is worth the risk. Eradicating human trafficking and protecting the victims is one of HSI’s top priorities.”
According to the complaint, Mr. Sanford, using the screenname“MasterBill75751,” responded to an online advertisement for a sex trafficking victim who “needs breaking.” Unbeknownst to the defendant, the ad had been posted by an undercover agent.
“I am willing to help break her into a proper slave,” Mr. Sanford wrote on Oct. 9.
In subsequent messages, he asked for $5,000 a week to brutalize the victim, demanding “complete privacy” without neighbors nearby.
On Oct. 29, Mr. Sanford and the undercover agent met in person in Plano, TX.
Posing as the head of a sizable human trafficking ring, the agent told Mr. Sanford he planned to “make a fortune” pimping out the victim, but was concerned by her refusal to engage in commercial sex and her repeated attempts at escape. He stated he had resorted to handcuffing the victim and locking her in a bathroom.
In response, Mr. Sanford bragged that he had “broken” trafficking victims previously and outlined the methods of torture he planned to use: flogging, caging, shock therapy, blaring heavy metal music, whips, and black-out contacts. He explained that while he understood how to cause “excruciating pain,” he would not leave any scars that would affect the victim’s later sale.
“You want someone that when it’s done, if she gets just a smidgen out of line, then you can say, ‘hey, I’m going to call him back,’” he told the agent. “You want her to believe that whenever she leaves her job, if she does not report back to you, she is going back to Bill… I just make sure they understand they never want to experience this again.”
A week later, on Nov. 5, Mr. Sanford and the agent met again in Irving, TX. Mr. Sanford agreed to follow the agent to a nearby location, where a second undercover agent, posing as the victim, sat restrained in the back seat of a vehicle. When he arrived, Mr. Sanford unloaded a suitcase and bag containing leather restraints, flogs, spurs, and other equipment.
In a subsequent interview with law enforcement, the defendant said he’d been living the “kink” lifestyle for several years. Asked about the victim he’d offered to break, Mr. Sanford stated he was hard up for money and simply wanted to “help her enjoy life.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Sanford is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to life in federal prison.
Homeland Security Investigations conducted the investigation with the assistance of the Dallas County Sheriff’s Office, Dallas County District Attorney’s Office Investigator, the Fort Worth Police Department, the Colleyville Police Department, and the Texas Alcoholic Beverage Commission. Assistant U.S. Attorneys Rebekah Ricketts and Andrew Briggs are prosecuting the case.
NDTX Round-Up: October 30 – November 5Read the Press Release
SENTENCING – DAVID RAMIREZ-ESPANA
On October 30, David Ramirez-Espana, 41, was sentenced to 9 years in federal prison for possession of a controlled substance with intent to distribute. Ramirez-Espana was stopped for a traffic violation by Dallas Police Department. Officers found a black plastic bag containing approximately one kilogram of black tar heroin. Ramirez-Espana gave consent for officers to search his residence in Dallas where law enforcement recovered 26.30 kilograms of methamphetamine and $43,013 in drug proceeds. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Phelesa Guy is prosecuted this case.
SENTENCING – RAMON REYES, JR.
On November 2, Ramon Reyes, Jr., 47, was sentenced to 20 years in federal prison for transporting and shipping child pornography. The Grand Prairie Police Department received a tip from the National Center for Missing and Exploited Children’s cybertipline that Reyes uploaded eight videos containing child pornography using a social media application. Law enforcement executed a search warrant for Reye’s home. When questioned about the child pornography, Mr. Reyes admitted that some of the images and videos that he transported included sadistic images depicting infants and toddlers. Reyes stipulated that he possessed over 12 images and 40 videos containing child pornography. The case was investigated by the Grand Prairie Police Department and the FBI. Assistant U.S. Attorney Camille Sparks prosecuted this case.
SENTENCING – ANDREW RAY LUGO
On November 2, Andrew Ray Lugo, 30, was sentenced to 85 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. In June 2018, Lugo paid a coconspirator $2,500 to settle a pervious drug debt. One month later, Lugo delivered $4,000 in drug proceeds to a conspirator. A few days later, a coconspirator coordinated a half-a-kilogram delivery of heroin to Lugo. Agents conducted a search of Lugo’s residence where they seized heroin, a firearm, and $1,788 in drug proceeds. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuted this case.
Lubbock Man Who Plotted Mass Shooting SentencedRead the Press Release
A Lubbock man who plotted a mass shooting has been sentenced to two years in federal prison for making false statements to a federally-licensed firearms dealer, and the court recommended he be evaluated for civil commitment prior to his release, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
William Patrick Williams, 20, was charged via criminal complaint in August 2019 with making a false statement during the purchase of a firearm. He pleaded guilty earlier this month and was sentenced today by U.S. District Judge James Wesley Hendrix in Lubbock.
“We are grateful to the many people – both within the defendant’s family and inside law enforcement – who came together to avert tragedy,” said U.S. Attorney Erin Nealy Cox. “We are hopeful Mr. Williams will get the treatment he needs while incarcerated.”
According to the criminal complaint, Mr. Williams told his grandmother he had recently purchased an AK-47 rifle and planned to “shoot up” a local hotel and then commit suicide by cop. Sensing he was both homicidal and suicidal, she convinced him to allow her to bring him to a local hospital instead.
Mr. Williams gave officers consent to search the room he had rented at the hotel, where they found an AK-47 rifle, seventeen magazines loaded with ammunition, multiple knives, a black trench coat, black tactical pants, a black t-shirt that read “Let ‘Em Come,” and black tactical gloves with the fingers cut off. Mr. Williams told officers he had laid out his weapons on the bed so that law enforcement could take custody of them.
According to his plea papers, Mr. Williams admits he lied on the form 4473 he used to purchase the AK-47 from a local sporting goods store, listing an address where he no longer resided.
Court documents indicate that the residents of the address Mr. Williams listed on the form told agents they had changed the locks after Mr. Williams moved out; at the time of the purchase, he was actually living with a different roommate at a different address.
The defendant admitted to misrepresenting his current address on the firearms transaction form.
As a convicted felon, Mr. Williams will now be legally barred from possessing a weapon after he is released from prison. The Court recommended that Williams serve his 24-month incarceration at the Federal Medical Center in Fort Worth, Texas, and further recommended that prior to his release from prison, Williams be evaluated for the possibility of civil commitment under 18 USC § 4246. (18 USC § 4246 establishes a federal commitment procedure for mentally ill persons who are due to be released but whose release would create a substantial risk of serious bodily injury or serious property damage to others.)
The Lubbock Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jeffrey Haag, NDTX’s West Texas Branch Chief, and Stephen Rancourt are prosecuting the case.
Ponzi Scheme Operator Pleads Guilty to Securities FraudRead the Press Release
A McKinney man who conned investors out of more than $13 million has pleaded guilty to securities fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Patrick O. Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – was charged in June 2018 and pleaded guilty via videoteleconference Tuesday morning.
“This defendant repeatedly lied about his funds’ performance, inducing investors – including several retirees – to turn over considerable sums of money that he then squandered. The Northern District of Texas is committed to investigating and prosecuting financial fraud," said U.S. Attorney Erin Nealy Cox.
In plea papers, Mr. Howard, 49, admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece.
His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.” However, instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their earnings quarterly out of the investments of later investors, rather than out of the earnings of the fund.
Mr. Howard falsely represented himself as a registered investment advisor and claimed his companies saw 20% annual earnings. Promising that investors could not possibly lose money due to insurance that offset poor performance, the defendant induced at least one investor to turn over his entire retirement savings to the fund.
Mr. Howard now faces up to five years in federal prison. His sentencing has been set for March 4, 2021.
The Federal Bureau of Investigation’s Dallas Field Office and the Postal Inspection Service conducted the investigation, with a parallel investigation conducted by the U.S. Securities & Exchange Commission. Assistant U.S. Attorney Andrew Wirmani is prosecuting the criminal case.
U.S. Attorney Presents Law Enforcement “Awards of Excellence”Read the Press Release
Last week, U.S. Attorney Erin Nealy Cox presented the 2020 United States Attorney’s Awards of Excellence, honoring law enforcement officers and agents who exceed the call of duty to keep their communities safe.
“Collectively, this room has thwarted terrorists, taken aim at white supremacists, apprehended violent criminals, brought to justice corrupt medical professionals, and exposed greedy public servants. This room is the very definition of excellence,” U.S. Attorney Nealy Cox said during a socially-distanced ceremony at the Belo in Dallas on Thursday. “We are proud to stand behind you and beside you.”
Awardees worked the following cases:
U.S. v Michael Kyle Sewell
Federal Bureau of Investigation with Arlington Police Department
This undercover investigation resulted in the prosecution of an 18-year-old who conspired to recruit individuals to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization. More here.Operation Diamond Blaster
Federal Bureau of Investigation with Dallas Police Department
This multi-year investigation resulted in the prosecution of 15 members of a violent transnational criminal enterprise who routinely robbed traveling diamond salesman. More here.U.S. v Jose Garcia-Lizanaga et al
Drug Enforcement Administration
This investigation led to the prosecution of high-level cocaine dealers in Lubbock and the seizure of more than 60 kg of cocaine, 8 firearms, and more than $500,000 cash.Operation Vanilla Ice
Texas Department of Public Safety and Dallas Police Department
This multi-year investigation led to the nation’s largest prosecution of individuals connected to white supremacist gangs. More than 150 gang members, most with violent criminal records, were sentenced to a combined 2,000+ years in federal prison. More here.U.S. v Donnie Ferrell
U.S. Postal Inspection Service
This investigation into the murder of U.S. Postal worker Tony Mosby relied on tips from two individuals inside the car with the defendant, who shot Mr. Mosby in a fit of road rage. More here.U.S. v Nelson Pabon et al
Federal Bureau of Investigation and IRS- Criminal Investigation Division with Dallas Police Department
This multi-year OCEDTF investigation revealed that several DFW Airport baggage handlers were using their positions to circumvent security in order to ship drugs and other contraband across the nation. More here.Dallas County Schools Investigation
Federal Bureau of Investigation and IRS-Criminal Investigation Division
This public corruption investigation uncovered a bribery scheme at Dallas City Hall, in which the owner of school bus stop arm camera company funneled nearly half a million dollars in bribes to former Mayor Pro Tem Dwaine Caraway, who resigned after charges were filed. More here.U.S. v Michael Webb
Homeland Security Investigations, Fort Worth Police Department, and Federal Bureau of Investigations
Following the abduction of an 8-year-old girl off the streets of Fort Worth, agents sprang into action to find her. The following morning, they recovered the child – alive – in a Forest Hills hotel room. The investigation led to the prosecution of the kidnapper, who received a life sentence. More here.U.S. v Darius Fields et al
Federal Bureau of Investigation
This investigation focused on those involved in the murder of an innocent 13-year-old kidnapped during a drug dispute and resulted in firearms charges against two defendants, both of whom were convicted at trial. More here.Operation Bruised Thumb
Bureau of Alcohol, Tobacco, Firearms, & Explosives with Dallas Police Department
This investigation led to the prosecution of 17 members of the “Bruised Thumb” gang on gun and drug charges, all while safeguarding the safety of a confidential informant.U.S. v Carlos Vengas et al
Drug Enforcement Administration with Commerce Police Department
This investigation revealed a network of sham clinics, fake patients, and complicit pharmacies working together to facilitate the illegal distribution of opiates like hydrocodone. The leader of the pill mill, who was convicted at trial, oversaw the unlawful prescription of nearly a million units of narcotics with no medical purpose. More here.U.S. v Said Rahim
Federal Bureau of Investigation and NOAA Office of Law Enforcement
This investigation revealed that a U.S. citizen was using a push-to-talk application to promote violence in the name of ISIS. The defendant was arrested at DFW Airport, where he was attempting to board a flight to Amman, Jordan, and later convicted at trial. More here.U.S. v Terrence Smith et al
Federal Housing Finance Agency Office of Inspector General
This investigation led to charges against three former executives of the Federal Home Loan Bank of Dallas, who submitted more than 100 fraudulent expense reports for personal travel they falsely claimed was business-related, submitted cash-out requests for dozens of used vacation days, and sought reimbursement for personal holiday gifts. More here.The U.S. Attorney and Chief U.S. District Judge Barbara M.G. Lynna also presented the “Administration of Justice” award, recognizing a staff member who consistently provides outstanding support, to Fort Worth Supervisory Legal Assistant Liuva Ruiz, and the “Barefoot Sanders Prosecutor of the Year” award to Amarillo-based Assistant U.S. Attorney Joshua Frausto.
Photos from the Awards Ceremony can be found here. The staff of the United States Attorney’s Office is grateful for law enforcement officers’ sacrifices, dedication, and skill.
NDTX Round-Up: October 23-29Read the Press Release
SENTENCING – JOSHUSA DANIEL ZIVILI
On October 27, Joshua Daniel Zivili, 40, was sentenced to 235 months for interference with commerce by robbery and brandishing a firearm during a crime of violence. Zivili admitted to robbing eight retail or restaurants establishments in the Dallas area. Following a robbery of a fast-food restaurant, Zivili fled the scene in a vehicle engaging in a high-speed police chase. During the chase, the vehicle crashed, and law enforcement recovered the cash stolen from the restaurant and the firearm used to commit the robbery. This case was investigated by the Federal Bureau of Investigation and the Dallas Police Department. Assistant U.S. Attorney Gary Tromblay prosecuted this case.
SENTENCING – MICHAEL ASAGBA
On October 27, Michael Asagba, 22, was sentenced to 176 months in federal prison for three counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. Over the course of four days in February 2018, Asagba robbed three convenience stores in located Mesquite. During the commission of the robberies, he carried a Ruger 9 mm firearm. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Shane Read prosecuted this case.
GUILTY PLEA – TRIVIKRAM REDDY
On October 27, Trivikram Reddy, 38, plead guilty to conspiracy to commit wire fraud. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna. He made false billings using the provider numbers of six doctors. All the claims were false and at no time did the six doctors provide billable services to any of Reddy’s clinics. Reddy faces up to 20 years in federal prison for his crimes. This case was investigated by the Health and Human Services-Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting this case.
Alleged Murderer Charged with Possession of a SilencerRead the Press Release
A Rowlett man who allegedly gunned down his ex-girlfriend in the midst of a bitter custody dispute has been charged with possessing an unlicensed firearm silencer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Andrew Charles Beard, 33, was charged via criminal complaint. He was arrested Thursday afternoon and made his initial appearance before Magistrate Judge Renee Toliver Friday morning.
“Given the brutality of his alleged crimes, it’s unthinkable that Mr. Beard bonded out of county jail,” said U.S. Attorney Erin Nealy Cox. “I am proud that our federal law enforcement partners acted quickly so that we could file federal charges. It is our fervent hope that justice will be swift, and that Mr. Beard will be kept behind bars — state or federal — before he can inflict more harm.”
“ATF is steadfast in its pursuit of domestic abusers in possession of firearms illegally. Mr. Beard will now face the full force of the United States Justice Department and all of its law enforcement partners,” said ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II.
According to the complaint, Mr. Beard allegedly attacked his ex-girlfriend, Alyssa Burkett, outside her office on Oct. 2. Ms. Burkett, who was found with multiple stab wound to her torso and a possible gunshot wound to the head, died at the scene.
A coworker, identified in the complaint by the initials “M.J.,” told officers she’d observed a black-clad man climb out of a truck and take aim at the victim.
Ms. Burkett’s friends and family informed officers that she and Mr. Beard were involved in an acrimonious dispute over the custody of their child. Two days prior to the shooting, records show, a judge awarded custody of the child to Ms. Burkett.
Ms. Burkett’s mother, “T.C.,” and her boyfriend, “B.E.,” told officers that Ms. Burkett feared Mr. Beard would kill her. B.E. said Mr. Beard was “overly obsessed” with the victim and their child. Her coworker, “M.J.,” reiterated the same concern, adding that Ms. Burkett was worried she was being tracked by Mr. Beard, who always seemed to know her location.
After the murder, investigators recovered a black Spy Bot box and tracking device underneath Ms. Burkett’s vehicle. They found a similar tracking device on her boyfriend’s vehicle.
During a search of Mr. Beard’s residence, investigators found a matching Spy Bot battery and a third tracking device in the upstairs loft. They also uncovered a .22 caliber revolver and a homemade gun silencer zipped into a baggie inside a toolbox in the garage. (Detectives believed the silencer was homemade because the threaded portion that would attach to the barrel and the muzzle end of the silencer were off center.)
An ATF analysis revealed that the metal cylinder, which included an expansion chamber, met the federal definition of a firearm silencer.
A search of the National Firearms Registration and Transfer Record (NFRTR) did not pull up any silencers registered to Mr. Beard, and the homemade silencer recovered from Mr. Beard’s home lacked the serial number required for registration.
Federal law prohibits possession of an unregistered silencer, defined as any device designed to silence, muffle, or diminish the report of a potable firearm.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Beard is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
Following his ex-girlfriend’s death, Mr. Beard was charged by the state with murder. Last week, he was released from Dallas County Jail on $1 million bond. He was taken into federal custody on Thursday afternoon, and prosecutors will seek federal detention.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Keith Robinson are prosecuting the case.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
Traffickers Charged with Buying and Selling a 19-Year-Old 'Sex Slave'Read the Press Release
The men who bought and sold a 19-year-old woman as a “sex slave” have been charged with human trafficking, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an intensive investigation, Alfonso Orozco Juarez, 35, and Robert Hubert, 66, were charged via criminal complaint with conspiracy to commit sex trafficking. Mr. Juarez was arrested at his home in Dallas and made his initial appearance in court in Dallas on Wednesday; Mr. Hubert was arrested at his home in Roebuck, SC, and made his initial appearance in court in Greenville, SC last week.
“This victim endured horrific abuse at the hands of these defendants. It’s unthinkable and frankly, difficult to learn that this type of thing is happening in our District,” said U.S. Attorney Erin Nealy Cox. “I am grateful that our North Texas Human Trafficking Task Force was able to act swiftly and aggressively. The Northern District of Texas and its partners in the District of New Mexico are committed to ending the scourge of human trafficking, one brutal case at a time.”
“Anyone that is involved in human trafficking activities – either as a member of a transnational criminal organization, a business owner exploiting his/her employees, or a street level pimp – should be viewed as a vicious predator. These despicable people who enrich themselves by exploiting the innocent have no place amongst law-abiding citizens and HSI will always combat it with every resource at our disposal. We will continue to collaborate with any law enforcement agency at any level of government in our shared efforts to bring human traffickers to justice,” said Ryan L. Spradlin, Special Agent in Charge of Homeland Security Investigations Dallas.
According to a criminal complaint unsealed yesterday afternoon, Mr. Juarez contacted the Santa Fe-based victim via a dating app in 2019. In September 2019, they met in person inside a Dallas motel room, where Mr. Juarez pistol whipped the victim, bruising her hand and jaw. He later gave her a “slave name” and threatened to kill her and her family if she did not consent to being sold for sex. At one point, Mr. Juarez pointed an unloaded gun at her head and pulled the trigger.
After repeatedly selling the victim for commercial sex, Mr. Juarez advertised her as a “slave” on a fetishism website, where he offered to sell her to the highest bidder. Mr. Hubert, screen name “The Darkest Lord,” offered $5,000.
In text messages with Mr. Hubert, Mr. Juarez referred to the victim as “the property” and bragged that she “submitted fully” after he “pistol whip[ped]” her.
“She’s totally dependent on me,” he wrote.
“SWEET,” Mr. Hubert responded. “I will take the slave.”
The men met up at a gas station in Dallas, where Mr. Hubert put the victim in his car to drive her to his home in South Carolina. After Mr. Hubert clamped a metal collar around her neck, threatened to brand her, and provided her with a list of “fetishes he likes,” the victim texted Mr. Juarez, pleading for help:
“I’m afraid if I don’t do something, he’s going to hurt me,” she said.
“Endure what you have to,” he responded. “He’ll punish you whip you . . . but not kill you.”
When they reached Mr. Hubert’s residence — where there was a room he described as a “dungeon”—Mr. Hubert required the victim to remove her clothes and “be naked all the time.” Terrified, the victim persuaded Mr. Hubert to let her call her parents.
The victim’s father begged Mr. Hubert to let his daughter go, but Mr. Hubert informed him that he had purchased the victim for $5,000 and demanded $5,000 back in exchange for her safe return. He even sent the victim’s father a “contract,” signed by both Mr. Juarez and Mr. Hubert, as proof of the “sale.” Eventually, Mr. Hubert relented, and the victim was able to escape by bus.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Juarez and Mr. Hubert are presumed innocent until proven guilty.
If convicted, both face up to life in federal prison.
Homeland Security Investigations and the North Texas Trafficking Task Force conducted the investigation with substantial support from the Crime Strategies Unit with the 2nd Judicial District Attorney's Office in Albuquerque, NM. Assistant U.S. Attorneys Andrew Briggs and Rebekah Ricketts of the Northern District of Texas are prosecuting the case, with significant assistance from Assistant U.S. Attorney Letitia Simms of the District of New Mexico.
Former San Angelo Meat Packing Plant Manger Pleads Guilty to Misleading Federal RegulatorsRead the Press Release
A former manager of a San Angelo meat packing plant plead guilty today to misleading federal regulators, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rean Brooks, 51, plead guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, before U.S. Magistrate Judge John Parker.
In plea papers, Mr. Brooks, former manager at Texas Packing Company, admitted that he concealed knowledge from federal regulators about the toxic chemical levels at the meat processing facility.
"Federal laws require employers to undertake steps that limit exposure to toxic substances to employees and the public,” said U.S. Attorney Erin Nealy Cox. "Criminals that deceive regulators and skirt the law, potentially putting lives at risk, will be held accountable for their actions.”
According to court documents, Texas Packing Company was operating its refrigeration unit, which contained anhydrous ammonia, in violation of OSHA regulations posing danger to the safety of the plant’s employees.
Anhydrous ammonia is a chemical is used to recirculate fluid in refrigeration systems at facilities such as meat processing plants. Exposure to the chemical in high concentrations is toxic and may result in temporary or permanent blindness; severe burns; corrosive damage to the mouth, throat, and stomach; asphyxiation; and death.
By law, OSHA requires that processing plants that operate with levels of anhydrous ammonia exceeding 10,000 pounds must implement and operate under a Process Safety Management (PSM) program to prevent the catastrophic release of dangerous chemicals and minimize damage in the event accidental release or spills occur.
In 2018, Texas Packing was operating its facility with 16,500 pounds of anhydrous ammonia or approximately 6,000 pounds over the level at which a PSM program is required. An individual reported the hazardous chemical issues to OSHA. The following day, an OSHA inspector traveled to the plant and met with Mr. Brooks and others and provided notice of the complaint.
Texas Packing was informed by a plant safety manager that the implementation of a PSM program would cost approximately $20,000. To avoid the potential costs, an individual at Texas Packing falsified a document with the intent to make OSHA believe the plant was in compliance with regulations. Mr. Brooks then gave that document to an OSHA inspector, also with intent to deceive the inspector.
OSHA subsequently assessed a $615,640 fine against Texas Packing for the plant’s non-compliance related to the anhydrous ammonia levels, lack of PSM program, and for other violations. The fine was one of the top ten largest assessed by OSHA in 2018.
Mr. Brooks faces up to three years in federal prison for his crimes and a fine up to $250,000. A sentencing date has not been set.
This investigation was conducted by United States Department of Labor, Office of Inspector General. Assistant U.S. Attorney Ann Howey is prosecuting this case.
Bank Robber Charged After DNA, Fingerprint MatchesRead the Press Release
A Midland man tied to bank robberies in Lubbock, Odessa, and Abilene has been federally charged, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kenneth Hoyd Seabourne, 57, was arrested on Oct. 20 and charged via criminal complaint with one count of bank robbery. He made his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr. Thursday morning.
According to a criminal complaint unsealed today, on Sept. 3, an unidentified man entered Prosperity Bank in Odessa demanding money. The man – clad in a tie, white button up, pants, tennis shoes, sunglasses, rubber gloves, and a PPE mask – passed a teller a note that red, “All $ in Bag! I am armed. No Dye Packs no Bait $,” then fled the scene with several thousand dollars currency.
Responding officers from the Odessa Police Department later observed a man matching the suspect’s description discarding rubber gloves and clothing on the roadway. They recovered the items and sent them to the Texas Department of Public Safety Crime Laboratory, which retrieved genetic material. The DPS Crime Lab then sent the recovered DNA sequence to the FBI, which ran it through its DNA indexing system, CODIS, and allegedly matched it to DNA on file for Mr. Seabourne.
Meanwhile, just 26 days after the first robbery, a similar unidentified male entered the First Abilene Federal Credit Union, where he passed a similar note to the teller. He then reached into his shirt, grabbed what appeared to be a gun, pointed it at the teller, and threatened to kill if he didn’t get money. Before fleeing the scene in a white Ford Explorer, he demanded the note back.
Sixteen days after that, the same man entered People’s Bank in Lubbock and passed a similar note to the teller there. He once again fled that scene in a similar white Ford Explorer, leaving the note behind.
Forensic investigators from the Lubbock Police Department recovered a fingerprints off the note, which match fingerprints on file for Mr. Seabourne. Investigators also identified a white Ford Explorer registered in Mr. Seabourne’s name.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Seaborne is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Lubbock Field Office, Texas Department of Public Safety, the Lubbock Police Department, the Odessa Police Department, the Abilene Police Department, and the U.S. Marshal’s Service conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
NDTX Round-Up: October 16-22Read the Press Release
SENTENCING – ESTEBAN BONILLA LOPEZ
On October 19, Esteban Bonilla Lopez, 35, was sentenced to 13 years in federal prison for possession with the intent to distribute methamphetamine. After stopping Lopez’s vehicle in Cleburne, Texas, officers requested to search the car. Lopez denied the request. Officers used a drug detecting canine which altered law enforcement to the presence of narcotics in the vehicle. Lopez admitted that he had methamphetamine in the truck and that he traveled to Midland to distribute the drugs. This case was investigated by the Drug Enforcement Administration and the Johnson County Sheriff’s Office. Assistant U.S. Attorney Suzanna Etessam prosecuted this case.
SENTENCING – GEOVANNI AARON LUNA
On October 19, Geovanni Aaron Luna, 23, was sentenced to 21 months in federal prison for possession of an unregistered firearm silencer. Luna was pulled over in Garland, Texas for a traffic offense. During the traffic stop, troopers uncovered a homemade silencer created from a modified fuel filter with an aluminum tube and threaded adapter to fit his .22 caliber pistol. Luna admitted that the silencer was not registered to in the National Firearms Registration and Transfer Record. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety and is prosecuted by Assistant U.S. Attorney Abe McGlothin.
GUILTY PLEA – HUGO ALBERTO ESPINOZA-GONZALEZ
On October 20, Hugo Alberto Espinoza-Gonzalez, 38, plead guilty to possession with intent to distribute a controlled substance and illegal reentry after removal from the United States. Agents observed Espinoza-Gonzalez enter a vehicle containing 46.8 kilograms of methamphetamine. Dallas Police Department officers attempted to initiate a traffic stop of the vehicle, however, Espinoza-Gonzalez refused to stop and sped away. Eventually, Espinoza-Gonzalez abandoned the vehicle and fled on food until officers arrested him. Espinoza-Gonzalez faces up to 40 years in federal prison for the drug-related crimes and 20 years for the illegal immigration offenses. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
GUILTY PLEA – DOMINIQUE RAY MCNEELY
On October 20, Dominique Ray McNeely, 37, plead guilty to conspiracy to possess with intent to distribute a controlled substance. McNeely traveled to a Dallas residence to take part in cocaine transaction. During the drug deal one coconspirator was shot to death. McNeely also conspired with others to distribute two kilograms of cocaine to others in exchange for $70,000. He admitted to being primarily a marijuana dealer with suppliers located in California. Through the course of his unlawful activity he acquired a Jeep, Porsche, jewelry, and approximately $40,000 in drug proceeds all of which is subject to forfeiture. McNeely faces up to 20 years in federal prison for his crimes. This case was investigated by the ATF and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert is prosecuting this case.
GUILTY PLEA – DANIEL HICKS
On October 22, Daniel Hicks, 55, plead guilty to attempting to transfer obscene material to a minor. Law enforcement established an undercover profile as a 14-year-old girl on an internet gaming website. Within a short period of time, Hicks sent 31 sexually explicit images or videos to a user which he thought was a minor. When questioned by law enforcement, Hicks admitted to chatting with a person he believed was a minor. Hicks faces up to 10 years in federal prison for his crimes. This case was investigated by the U.S. Secret Service and the Garland Police Department. Assistant U.S. Attorney Melanie Smith prosecuted this case.
Dallas Man Pleads Guilty After Placing Hoax Bomb on RailroadRead the Press Release
A Dallas man plead guilty today to charges in connection with placing a hoax bomb on a Dallas railroad track, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mark Ashley Robert, 37, plead guilty to one count of false information and hoaxes before Magistrate Judge Irma Carrillo Ramirez via VTC.
According to court documents, during the early morning hours of December 21, 2018, Mr. Robert admitted to placing a device (as seen in the photo below) on the Kansas City Rail Line railroad tracks in Dallas.
A railroad conductor noted a red and green flashing LED light in the middle of the tracks while operating on the railroad. The conductor observed what appeared to be a box wrapped in electrical tape with a nine-volt battery attached to the side of the device.
The Dallas Police Department Bomb Squad responded to the scene to assess the device. Upon examination, law enforcement authorities determined that the box, placed by Mr. Robert, appeared to resemble an improvised explosive device (IED). As a result, officers rendered the device safe.
Law enforcement submitted the remaining parts of the device to the FBI for latent print examination. Through the course of that examination, Mr. Robert’s fingerprints were recovered.
Mr. Robert now faces up to 5 years in federal prison and up to a $250,000 fine. A sentencing date has been set for March 5, 2021.
This investigation was conducted by the FBI’s Dallas Field Office and the Dallas Police Department with the assistance of the Kansas City Southern Railway Company. Assistant U.S. Attorney Tiffany Eggers is prosecuting this case.
U.S. Attorney Erin Nealy Cox Announces Northern District of Texas’ 2020 Election OfficerRead the Press Release
United States Attorney Erin Nealy Cox announced today that Assistant United States Attorney Damien Diggs will lead the Northern District of Texas’ Election Day Program for the upcoming November 3, 2020 general election. AUSA Diggs is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Free and fair elections are vital to our American democracy. Every citizen must be able to vote without interference or discrimination. The Department of Justice will always act to protect the integrity of the election process. If you have specific information about discrimination or election fraud, I urge you to report it to my Office, the Civil Rights Division, or the FBI,” said U.S. Attorney Nealy Cox.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Erin Nealy Cox stated that AUSA/DEO Diggs will be on duty in this District while the polls are open. The public can reach him at 214-659-8600.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The public can reach the local FBI field office at 972-559-5000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
NDTX Round-Up: October 9-15Read the Press Release
GUILTY PLEA – JOHN ADRIAN GARCIA
On October 13, John Adrian Garcia, 19, plead guilty to carjacking. In June 2019, Garcia took a black Lexus RX from another individual by intimidation and force. Garcia faces up to 15 years in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department as part of the Dallas Project Safe Neighborhoods initiative. Assistant U.S. Attorney Nicole Dana.
SENTENCING – DESMOND WELLS
On October 15, Desmond Wells, 26, was sentenced to 210 months and ordered to pay $110,860.05 in restitution for attempted bank robbery. Upon entering Veritex Community Bank in Fort Worth, Wells and a coconspirator demanded “hundreds, fifties, and twenties” from bank employees. Seconds later, the coconspirator fired gunshots at bank employees striking two tellers behind the counter and one employee seated at the center island. Both Wells and the coconspirator fled the bank only to be arrested by law enforcement later the same day. This case was investigated by the FBI’s Dallas Field Office and the Fort Worth Police Department. Assistant U.S. Attorney Daniel Cole prosecuted this case.
GUILTY PLEA – GERSON GAMALIEL ROJO GUZMAN
On October 15, Gerson Gamaliel Rojo Guzman, 30, plead guilty to possession with the intent to distribute 500 grams or more of methamphetamine and cocaine. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash. Rojo Guzman faces up to 20 years in federal prison for his crimes. This case was investigated by the Texas Department of Public Safety and the Desoto Police Department. Assistant U.S. Attorney P.J. Meitl is prosecuting this case.
GUILTY PLEA – CARLOS DANIEL MARTINEZ-MARIN
On October 15, Carlos Daniel Martinez-Marin, 22, plead guilty to possession with the intent to distribute a controlled substance. DEA agents located a house used as a meth conversion lab in the Northern District that was used by Martinez-Marin and other co-conspirators. As Martinez-Marin exited the house he was arrested, and agents executed a search warrant on the house. Law enforcement recovered a meth conversion lab; large quantities of liquid methamphetamine in 18 containers; 21,332 grams of crystal methamphetamine; 3,013 grams of heroin; $3,252 in drug proceeds. Martinez-Marin 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.
Big Spring Restaurateur Sentenced to 15 Months for Illegally Employing Undocumented WorkersRead the Press Release
A Big Spring restaurateur who illegally employed undocumented immigrants was sentenced today to 15 months in federal prison and ordered to pay a $100,000 fine, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In March, Voum Chhuon, 45, owner of the Texas Cajun in Big Spring, Texas, pleaded guilty to harboring illegal aliens and unlawful employment of illegal aliens, both felonies. He was sentenced today before U.S. District Judge James Wesley Hendrix.
According to court documents, Homeland Security Investigations (HSI) received a tip from the Howard County Sherriff’s Office that Mr. Chhuon was illegally employing undocumented workers at the Texas Cajun restaurant. Agents obtained search warrants for Mr. Chuuon’s residence and the restaurant, where two illegal aliens were present.
During an interview conducted by law enforcement, Mr. Chhuon admitted that all his kitchen staff were undocumented workers, and that he had been unlawfully employing illegal aliens since he purchased the restaurant. To disguise the employment of unauthorized workers, Mr. Chhuon paid the kitchen staff in cash and others by paycheck.
In furtherance of the scheme, once Mr. Chhuon unlawfully hired the illegal aliens, he would then provide them with room and board at a Big Spring residence. Mr. Chhuon would also arrange transportation to and from the Texas Cajun restaurant for the illegal aliens living at the residence.
From March 2015 until his arrest, Mr. Chhuon’s restaurant made a total revenue of $2,985,631 with a monthly average of approximately $82,000 by operating with illegal labor. HSI forensic accountants determined Mr. Chhuon transferred approximately $140,000 from his business account to pay for personal expenses including to pay off a mortgage.
This investigation was conducted by HSI with assistance provided by the Big Spring Police Department and the Howard County Sheriff’s Office. Assistant U.S. Attorney Stephen Rancourt prosecuted this case.
30 Charged in Meth Distribution RingRead the Press Release
Thirty members of an alleged methamphetamine distribution ring have been charged with drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a painstaking investigation led by DEA Dallas’s High Intensity Drug Trafficking Group, 21 of the 30 defendants were arrested Wednesday in “Operation Ice Tank.” Five were bonded over from state custody and four remain fugitives. All 30 were charged with conspiracy to possess with intent to distribute controlled substances.
During this week’s arrests, investigators seized 16 kilograms of methamphetamine, 9 ounces of heroin, and nine firearms.
“A highly-addictive and dangerous stimulant, methamphetamine has plagued North Texas communities for far too long. The U.S. Attorney’s Office and the DEA are determined to root out large-scale distribution operations like this one,” said U.S. Attorney Erin Nealy Cox.
“Methamphetamine trafficking has no place in Tarrant County,” stated Special Agent in Charge Eduardo A. Chavez of the DEA Dallas Field Division. “Individuals and organizations who not only distribute this poison in our communities, but also endanger innocent lives by converting liquid meth to crystals in makeshift laboratories cannot be tolerated. The DEA and our partners from Fort Worth, Haltom City, and North Richland Hills, remain committed to neighborhoods free from the scourge of illicit drugs.”
According to a criminal complaint unsealed today, the ring was allegedly led by Johnny Ray Rodriguez, Jr., the 30-year-old owner of Funky Town Swag, a Fort Worth clothing store.
Mr. Rodriguez – aided by his cousin, 31-year-old Jonathan Rodriguez, Jonathan’s girlfriend, 31-year-old Chelsea Ann Pineiro, and 33-year-old Yvette Gonzalez – allegedly attempted to erect a meth conversion lab inside a residence in Fort Worth. Inside the kitchen of the home, agents discovered 27 igloo coolers, a bucket of methylsulfonylmethane (a horse vitamin often used as a cutting agent), three jugs of acetone, one container of liquid meth, and two containers of crystal meth. They also found several zip-top baggies of crystal meth stashed inside the washing machine and a loaded revolver in the master bedroom. Investigators collectively recovered 8 kilograms of methamphetamine from inside the residence.
Based on surveillance, multiple wiretaps, and interviews with cooperators, investigators determined that dealers working for Mr. Rodriguez allegedly distributed kilogram quantities of crystal meth out of Funky Town’s back office as well as several trap houses, a local motel, and a car wash.
Charged defendants include:
• Johnny Ray Rodriguez
• Jonathan Rodriguez, conversion lab operator
• Chelsea Ann Pineiro, conversion lab operator
• Yvette Gonzales, delivered equipment to conversion lab
• Norma Casio, meth courier for Jonny Ray Rodriguez
• Israel Rodriguez, meth courier for Jonny Ray Rodriguez
• Derrick Fannin, multi kilogram-customer and dealer
• Montreal Robinson, courier for Fannin
• Michael Johnson, multi kilogram-customer and dealer
• Nathan Cook, courier for Johnson
• Enrique Faz, multi-kilogram customer
• Roshua White, multi-kilogram customer
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, each defendant faces up to 40 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation, with assistance from the Fort Worth Police Department, the Haltom City Police Department, and the North Richland Hills Police Department. Assistant U.S. Attorney Shawn Smith is prosecuting the case.
10 Lubbock Cocaine Dealers ChargedRead the Press Release
Ten individuals in Lubbock have been charged with conspiracy to distribute cocaine and other related drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Nine members of a Lubbock drug trafficking organization were arrested on Wednesday, October 7 as part of Operation Los Perros De Nieve, a large-scale federal operation organized by the Drug Enforcement Administration with assistance from local, state and federal law enforcement partners. Operation Los Perros De Nieve targeted nine locations in Lubbock and resulted in the seizure of approximately $40,000 in cash; in excess of 5 kilograms of cocaine; and 13 firearms. One defendant remains at-large.
In a 19-count federal indictment unsealed today, five defendants were charged with gun crimes, including possession of a firearms in furtherance of a drug trafficking crime, felon in possession of a firearm, and felon in possession ammunition, in addition to the drug charges.
“I am proud of the work of this Task Force and the collaborative effort of all the agencies,” said U.S. Attorney Erin Nealy Cox. “We are committed to disrupting the supply of illegal narcotics and to prosecuting those responsible for spreading deadly poison into our communities.”
“With these latest arrests, DEA Lubbock and our Caprock law enforcement partners have made a significant impact to the violent, cocaine trafficking networks in the area,” said DEA Dallas Field Division Special Agent in Charge Eduardo A. Chavez, who oversees DEA operations throughout the region. “Drugs and those who distribute them have no place in our neighborhoods. The DEA will never waver in our resolve to identify and hold those responsible for their actions.”
Those charged include:
• Ronnie Manuel Garcia, Jr., 28
Charged with conspiracy to distribute and possess with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking, and possession with intent to distribute 500 grams or more of cocaine.
• Jonathan Phillip Reyes, aka “J.P.,” 34
Charged with conspiracy to distribute and possess with intent to distribute cocaine and convicted felon in possession of ammunition.
• Raul Perez, III, aka “Raw’lo” and “Raulo,” 34
Charged with conspiracy to distribute and possess with intent to distribute cocaine, two counts of distribution and possession with intent to distribute cocaine, possession with intent to distribute cocaine, possession of a firearm in furtherance of drug trafficking and convicted felon in possession of a firearm.
• Krystal Lynn Ramos, 35
Charged with one count of conspiracy to distribute and possess with intent to distribute cocaine and distribution and possession with intent to distribute cocaine.
• Amy Shawn Rodriguez, 40
Charged with conspiracy to distribute and possess with intent to distribute cocaine and possession with intent to distribute cocaine.
• Juan Moncada, 35
Charged with conspiracy to distribute and possess with intent to distribute cocaine, possession with intent to distribute 28 grams or more of cocaine base, possession of a firearm in furtherance of drug trafficking and convicted felon in possession of a firearm.
• Jacob Anthony Molina, 28
Charged with conspiracy to distribute and possess with intent to distribute cocaine, possession with intent to distribute cocaine and possession of firearms in furtherance of drug trafficking.
• Jeremy Wayne Beck, aka “Lil Jay,” 34
Charged with conspiracy to distribute and possess with intent to distribute cocaine, possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking and convicted felon in possession of firearms.
• Michael Paul Perez, 38
Charged with conspiracy to distribute and possess with intent to distribute cocaine and possession with intent to distribute 500 grams or more of cocaine.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face maximum sentences of up to 40 years, or life in some instances, in federal prison for the drug-related offenses and up to 10 years, or up to life in some instances, for the firearm-related crimes.
The investigation was led by the Drug Enforcement Administration and the Lubbock Police Department with assistance from the Lubbock County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations Dallas Field Office, and the Texas Department of Safety. This investigation was carried out as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program with the coordination of the Lubbock HIDTA group and Texas Anti-Gang initiative. Assistant U.S. Attorney Sean Long is prosecuting the case.
Fort Worth Man Sentenced to 30 Years for Sexual Exploitation of InfantRead the Press Release
A Fort Worth man who videotaped the sexual assault of an infant was sentenced to 30 years in federal prison, the statutory maximum, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Chester Devin Leban, 34, pleaded guilty in January to sexual exploitation of a child. He was sentenced last Tuesday before Senior U.S. District Judge Terry R. Means.
In July 2018, the Fort Worth Police Department was dispatched to a domestic disturbance call where officers met with Mr. Leban’s estranged wife. She notified law enforcement of the presence of child pornography on Mr. Leban’s cell phone.
When questioned by detectives, Mr. Leban admitted to using his cell phone to record a sexually explicit encounter between an adult female, Emily Conner, and a 5-month-old infant.
Ms. Conner pleaded guilty in January and was sentenced to 15 years in federal prison in connection with this case. Following their sentences, both defendants are ordered to serve a lifetime of supervised release.
The Fort Worth Police Department conducted the investigation with the assistance of the U.S. Secret Service. This case was prosecuted by Assistant U.S. Attorney A. Saleem.
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 organizes 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.
Wichita Falls Drug Dealer Sentenced to 7 Years in Federal PrisonRead the Press Release
A Wichita Falls drug dealer has been sentenced to seven years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Dustin Keith Weaver, 31, was indicted in July 2019 for conspiring to distribute marijuana along with six codefendants. He pleaded guilty to in May to conspiracy to contribute a controlled substances and was sentenced Friday by U.S. District Judge Reed C. O’Connor.
In his factual resume, Mr. Weaver admitted to coordinating shipments of marijuana through the U.S. Mail, typically using fictitious sender and recipient names to minimize likelihood of detection. Over an 18-month period (March 2015 to September 2016), he and his coconspirators shipped 443 packages, each containing an average of two to three pounds of marijuana, from Oregon to Wichita Falls. The packages were typically shipped in flat-rate Priority Mail boxes for easy tracking, and upon receipt, the drugs were repacked and resold in Texas, Mr. Weaver admitted.
Mr. Weaver further admitted that he recruited a number of coconspirators, including a grower, into the scheme. He also coordinated payments, directing coconspirators to deposit money into certain bank accounts, or, in at least one instance, directing them to make car payments on behalf of others.
Five of Mr. Weaver’s codefendants – Randall Dizon, Jonathan Michael Fernandez, Jarrett Devon Grant, Ronald Vance Latimer, and Justin Kent Reed – also pleaded guilty. The sixth, Chad Anthony Ray, was convicted at trial in November 2019 and sentenced to 50 months in federal prison.
The case was investigated by the U.S. Postal Inspection Service, the Wichita Falls Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorney Mary Walters and Joseph Magliolo prosecuted the case.
Texas Man Charged in $24 Million COVID-Relief FraudRead the Press Release
A Dallas-area man was charged in an indictment filed Thursday for his alleged participation in a scheme to file fraudulent loan applications seeking approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the U.S. Attorney’s Office for the Northern District of Texas, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC), Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation (IRS-CI) Dallas Field Office, and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
Dinesh Sah, 55, of Coppell, Texas, was charged in an indictment filed in the Northern District of Texas with three counts of wire fraud, three counts of bank fraud and one count of money laundering.
The indictment alleges that Sah submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different SBA-approved lenders seeking approximately $24.8 million in PPP loans. In his applications, Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. The indictment further alleges that Sah submitted fraudulent documentation in support of his applications, including falsified federal tax filings and forged bank statements for the purported businesses. Sah ultimately received approximately $17.3 million in PPP loan funds and used the proceeds primarily for personal expenses, spending them on multiple homes and luxury cars, including a 2020 Bentley convertible, and sending millions of dollars in international transfers, the indictment alleges. To date, the government has seized more than $6.5 million in fraudulent proceeds that Sah obtained during the scheme.
The CARES Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the funds towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Dallas Field Offices of FDIC-OIG, IRS-CI, and TIGTA. Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section, and Economic Crimes and Public Corruption Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas, are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
NDTX Round-Up: October 2-8Read the Press Release
SENTENCING – DAVID MARTINEZ MARTINEZ
On October 5, David Martinez Martinez, 40, was sentenced to two years in federal prison for possession of a firearm by prohibited person. Martinez was previously admitted to the United States on a non-immigrant visa and not allowed to possess a firearm. In October 2019, Martinez was driving a truck down Interstate-45 when law enforcement noticed a defective taillight and pulled the vehicle over. A search was conducted of Martinez’s truck. Law enforcement recovered five firearms hidden in various packages. This case was investigated by the ATF. Assistant U.S. Attorney Melanie Smith prosecuted this case.
SENTENCING – ROBERT RIVEROS
On October 5, Robert Riveros was sentenced to 22 years for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and possessing a firearm in furtherance of crime of violence. In 2016, Riveros was charged along with four other coconspirators for a string of violent robberies against jewelers. In one instance, Riveros punched through a car window of a jewelry salesman and took a case containing jewelry. The jewelry salesman attempted to enter a co-defendant’s vehicle through the window and to retrieve his case. Riveros and other co-defendants drove to an apartment complex in Irving, where the victim was removed from the vehicle and beaten, which contributed to his death. This case was investigated by the FBI, Dallas Police Department, and the DFW International Airport Department of Public Safety. Assistant U.S. Attorney Keith Robinson is prosecuted this case.
GUILTY PLEA – ANTONIO LULE
On October 6, Antonio Lule, 26, plead guilty to assaulting, resisting, or impeding certain officers or employees. FBI agents obtained a search warrant for a Dallas residence. Shortly before SWAT arrived at the residence, FBI agents who had been conducting surveillance that morning arrived and encountered Lule, who began yelling profanity at the agents. When SWAT arrived, agents gave verbal commands to Lule so law enforcement could detain him. Lule initially refused to obey the commands given by agents. As Lule was being detained he intentionally bit an agent. Lule faces up to 1 year years in federal prison for his crimes. This case was investigated by the FBI. Assistant U.S Attorney P.J. Meitl is prosecuting this case.
SENTENCING – ARTURO CALDERON
On October 7, Arturo Calderon, 26, was sentenced to 40 months in federal prison for making a false statement during the purchase of a firearm. Between February 2018 and February 2019, Calderon purchased numerous firearms from licensed vendors. During the purchase of these firearms, Calderon responded falsely to the question on the ATF Form that asks if the buyer is “the actual transferee/buyer of the firearms(s) listed on this form.” Calderon purchased at least 16 firearms that he then gave to an individual who covered the cost of the firearms, and then additionally compensated Calderon. This case was investigated by the ATF. Assistant U.S. Attorneys Jon Bradshaw and Brian McKay prosecuted the case.
Coppell Man Charged in $24 Million PPP FraudRead the Press Release
A Coppell man who spent more than $17 million in Paycheck Protection Program (PPP) loans on lavish personal expenses has been charged with filing fraudulent loan applications, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Dinesh Sah, 55, on three counts of wire fraud, three counts of bank fraud and one count of money laundering.
“Mr. Sah exploited this terrible pandemic for personal gain – and he should be held accountable to the American people for that behavior,” said U.S. Attorney Erin Nealy Cox. “COVID-19 has devastated the finances of hardworking business owners across the nation. PPP funds should be reserved for those who really need them to keep their companies afloat. We are committed to ensuring that anyone that take advantage of the system will be brought to justice. ”
“Today’s indictment shows Mr. Sah’s disgraceful display of greed. Mr. Sah looked at the Paycheck Protection Program as his own personal piggy bank, treating himself to not only millions in cash, but several luxury vehicles and properties, all while legitimate small business owners in the United States desperately sought out ways to put food on their tables and to ensure their employees were paid,” said IRS-CI’s Special Agent in Charge of the Dallas Field Office, Tamera Cantu. “This indictment reinforces that IRS Criminal Investigation, the U.S. Attorney’s Office and our federal partners in the Northern District of Texas are dedicated to working together to protect innocent Americans from these CARES Act fraudsters.”According to the indictment, unsealed yesterday evening, Mr. Sah allegedly submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different SBA-approved lenders seeking approximately $24.8 million in PPP loans, which are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In his applications, Sah allegedly claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses – when, in fact, Sah created many of the businesses after the CARES Act was enacted, and no business had employees or paid wages consistent with the amounts claimed in the PPP applications. Sah also submitted fraudulent documentation in support of his applications, including falsified federal tax filings and forged bank statements for the purported businesses.
Sah ultimately received approximately $17.7 million in PPP loan funds and allegedly used the proceeds primarily for personal expenses, spending them on multiple homes and luxury cars, including a 2020 Bentley convertible, and sending millions of dollars in international transfers, the indictment alleges.
To date, the government has seized more than $6.5 million in fraudulent proceeds that Sah obtained during the scheme.
The CARES Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the funds towards payroll expenses.
An indictment is merely an allegation, no evidence. Like all defendants, Mr. Sah is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Dallas Field Offices of FDIC Office of Inspector General, IRS - Criminal Investigations Division, and the U.S. Treasury Inspector General for Tax Administration. Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section Economic Crimes and Public Corruption Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas, and Assistant U.S. Attorney Erica Hilliard of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. The COVID-19 Fraud Coordinator for the Northern District of Texas, AUSA Fabio Leonardi, can be reached at 214-659-8600.
Meth Dealer Sentenced to 25 Years in U.S. Federal Prison After Fleeing to MexicoRead the Press Release
A local meth dealer has been sentenced to 25 years in federal prison for drug conspiracy, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Salvador Martinez, 31, of Grand Prairie, Texas, was arrested in August 2013 and pleaded guilty to conspiracy to possess with intent to distribute methamphetamine in January 2014.
However, Mr. Martinez failed to appear for sentencing and a warrant was issued for his arrest. Following an exhaustive investigation by the U.S. Marshals Service, in December 2019, he was captured in Mexico, arrested by Mexican authorities on an arrest warrant based on a formal extradition request submitted by the United States. He was extradited from Mexico to the United States on May 6, 2020, and was sentenced Thursday to 300 months in federal prison by U.S. District Judge Jane J. Boyle.
According to his plea papers, Mr. Martinez admits he conspired with several individuals to distribute meth in Texas and Mexico. He admits that his coconspirators prepared the methamphetamine, which he then picked up and transported to his residence. On one occasion, he told his coconspirators that the drugs needed to “look better.” The plea paperwork reflects he also agreed to forfeit a Tuarus revolver and ammunition.
A total of 23 defendants were indicted in this case. Including Mr. Martinez, 16 defendants have pleaded guilty and been sentenced, one was dismissed, and five remain fugitives.
Significant sentences in this case include:
- Gerardo Cisneros, of Arlington, Texas, was sentenced to 240 months for conspiracy to possess with intent to distribute methamphetamine, plus 240 months for money laundering.
- Israel De la Cruz Sotelo, a.k.a. Rale, of Piedras Negras, Coahuila, Mexico, was sentenced to 151 months for his role in methamphetamine and marijuana distribution conspiracies.
- Israel De La Cruz Sotelo was sentenced on September 13, 2018, after being extradited from the Republic of Mexico.
The case is part of an Organized Crime Drug Task Force (OCDETF) Investigation. Established in 1982, the OCDETF program aims to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. OCDETF works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
This case was investigated by the Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department, and the Garland Police Department. The U.S. Marshal’s Service, provided special assistance, as did U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Department’s Office of International Affairs, which handled the extradition request. The Justice Department thanks the Fiscalía General de la Republica de Mexico (FGR) (Prosecutor General of the Republic of Mexico) and law enforcement authorities in Mexico for their support as well.
Assistant United States Attorney George Leal prosecuted the case.
Man Who Sold Midland/Odessa Shooter AR-15 Used in Massacre Pleads Guilty to Unlicensed Firearms DealingRead the Press Release
The man who sold the AR-15 used to gun down 32 people in Midland and Odessa, Texas last year has pleaded guilty to a gun crime, announced U.S. Attorney Erin Nealy Cox.
Marcus Anthony Braziel, 45, of Lubbock, Texas, pleaded guilty to one count of dealing firearms without a license and one count of subscribing to a false tax return before U.S. District Judge James Wesley Hendrix Wednesday afternoon.
“If you’re a firearms dealer – whether you’re selling out of a brick-and-mortar store, in your basement, or online – you must ensure that a background check is conducted on your purchasers,” said U.S. Attorney Erin Nealy Cox. “As this case makes clear, dealing firearms without a license isn’t some obscure, technical violation. It is unlawful conduct that has real-world impact and the potential for devastating results. The Justice Department is committed to enforcing our nation’s long-held gun laws, designed to prevent firearms from falling into the wrong hands.”
“The thoroughness of this investigation shows the dedication of ATF and all of its law enforcement partners,” said Special Agent in Charge of ATF’s Dallas Field Division Jeffrey C. Boshek II. “This plea shows that people engaged in the business of manufacturing and selling firearms must do so lawfully to prevent prohibited persons from acquiring them. ATF provides potential dealers a straightforward way of becoming licensed without extensive complications or burdens.”
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.
“The prosecution of individuals who intentionally conceal income and file false returns is a vital element of IRS Criminal Investigation’s enforcement strategy,” said IRS Criminal Investigation Special Agent in Charge Tamera Cantu. “IRS-CI is pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners. This case shows there is no tolerance for illegal actions such as those taken by Mr. Braziel.”
Mr. Braziel now faces up to faces up to five years in federal prison. His sentencing has been set for January 7, 2021, at 10:00 a.m.
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.
Justice Department Charges 500+ Domestic Violence-Related Firearm Cases in Fiscal Year 2020Read the Press Release
Today, the Justice Department announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020. A department priority since 2019 when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group, these charges are the result of the critical law enforcement partnership between U.S. Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made domestic violence firearms-related investigations a priority.
“Keeping firearms out of the hands of dangerous criminal offenders is one of the Department of Justice’s top priorities,” said Attorney General Barr. “This is especially important when it comes to individuals with prior domestic violence convictions. The statistics are clear that when domestic violence offenders have access to guns, their partners and their families are at much greater risk of falling victim to gun violence. In fact, in some communities across America, roughly half of the homicides are related to domestic violence. The Department of Justice is committed to keeping guns out of the hands of those who are prohibited from having them, and we will continue investigating and prosecuting all domestic violence firearms related crimes.”
“According to the CDC, data suggests that about one in six homicide victims are killed by an intimate partner,” said ATF Acting Director Lombardo. “Nearly half of female homicide victims in the U.S. are killed by a current or former male intimate partner. ATF is committed to aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. It is another way we prevent violent gun crime within our communities.”
Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.
The Working Group, chaired by U.S. Attorney Erin Nealy Cox, of the Northern District of Texas, disseminates legal guidance on keeping guns out of the hands of domestic violence abusers using three federal statutes:
- 18 USC § 922 (g)(1), felon in possession of a firearm
- 18 USC § 922 (g)(9), possession of a firearm by a prohibited person (misdemeanor crime of domestic violence)
- 18 USC § 922 (g)(8), possession of a firearm while subject to a domestic violence protective order
Based on the Working Group’s guidance, in FY 2020, U.S. Attorneys’ Offices nationwide brought 337 domestic violence felon-in-possession charges, 54 possession while subject to a protective order charges, and 142 possession by a prohibited person charges.
For more information on domestic violence or to get help, visit the National Domestic Violence Hotline website or call 1-800-799-SAFE (7233).
NDTX Round-Up: September 25 – October 1Read the Press Release
SENTENCING – JERARDO ALVAREZ
On September 29, Jerardo Alvarez, 35, was sentenced was sentenced to 5 years in federal prison for aiding and abetting foreign travel in aid of racketeering. Customs and Border Protection officers in Laredo identified a shipment of 200 kilograms of methamphetamine headed to a Dallas, Texas address from Mexico. DEA undercover agents coordinated delivery of the methamphetamine with a Mexico-based drug dealer. The Mexican drug dealer directed the undercover agents to contact Alvarez. Upon transfer, Alvarez signed the delivery manifest acknowledging receipt of the 48 buckets of the methamphetamine and was taken into custody by law enforcement. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – LEONARD TANNIEHILL
On September 29, Leonard Tanniehill, 20, plead guilty to interference with commerce by robbery. Tanniehill and coconspirators robbed two gas stations located in Irving and Dallas. While robbing the station in Irving, Tanniehill was a passenger in the “getaway” vehicle. He also disguised his identity before entering and robbing a gas station in Dallas. Tanniehill split the proceeds from the two robberies along with other coconspirtions. Tanniehill faces up to 20 years in federal prison for his crimes. This case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – MIGUEL ANGEL SAUSTEGUI-PEREZ
On September 29, Miguel Angel Saustegui-Perez, 30, plead guilty to possession with intent to distribute a controlled substance. Saustegui-Perez visited a Dallas apartment to collect methamphetamine for further distribution. He was arrested while exiting the apartment. Law enforcement executed a search warrant on the apartment and recovered recovered 19 clear gallon sized zip-lock bags containing methamphetamine, $72,122, and a drug ledger. Saustegui-Perez faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Kull is prosecuting this case.
SENTENCING – DEANNA JEFFERSON SMITH
On September 30, Deanna Jefferson Smith, 52, was sentenced to two years’ probation with the condition that she cannot practice law while on probation for theft in connection to health care. Deanna Jefferson Smith, a former municipal judge with the City of Dallas, met and became with Alicia Belfrey-Farley, a federal employee with the Bureau of Prisons. Belfrey-Farley listed Jefferson Smith’s children as Belfrey-Farley’s dependents on her health insurance policy through the Federal Employee Health Benefits Program. Belfrey-Farley also listed also listed Jefferson Smith as a dependent on the SF 2809 Health Benefits Election Form. The total billed cost of the services received by Jefferson Smith's children was approximately $28,000 and Blue Cross Blue Shield paid the providers at least $12,316.00 for the services. This case was investigated by the Department of Justice’s Inspector General. Assistant U.S. Attorney John De La Garza prosecuted this case.
SENTENCING – IAN MOHN
On October 1, Ian Mohn, 27, was sentenced to 15 months in federal prison for making false statements to a federal agent. Mohn reported knowledge of human trafficking in Wisconsin during an interview conducted with the FBI. Agents in Lubbock and Milwaukee spent hours vetting Mohn’s story and requesting additional information which he could not provide. In a second interview with FBI agents, Mohn spent over four hours providing details of the false human trafficking story to law enforcement. At the end of the interview, Mohn admitted that the entire story was fraudulent. This case was investigated by the FBI. Assistant U.S. Attorney Callie Woolam prosecuted this case.
GUILTY PLEA – BRODERICK WALKER
On October 1, Broderick Walker, 40, plead guilty to conspiracy to commit money laundering. Walker engaged in schemes to defraud the IRS by obtaining stolen tax refunds that had been produced through electronic filings of false and fraudulent U.S Individual Income Tax Returns. Walker used stolen PII belonging to deceased individuals. He admitted that the unlawful financial transactions totaled $27,457.07 Walker faces up to 5 years in federal prison for his crimes. This case was investigated by the IRS – Criminal Investigation. Assistant U.S. Attorney Gregory Martin is prosecuting this case.
Lubbock Man Allegedly Plotting Mass Shooting Pleads Guilty to Making False Statements to Firearms DealerRead the Press Release
A Lubbock man who allegedly plotted a mass shooting pleaded guilty today to making false statements to a federally-licensed firearms dealer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
William Patrick Williams, 20, was charged via criminal complaint in August 2019 with making a false statements during the purchase of a firearm. He pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., in Lubbock.
According to the criminal complaint, Mr. Williams told his grandmother he had recently purchased an AK-47 rifle and planned to “shoot up” a local hotel and then commit suicide by cop. Sensing he was both homicidal and suicidal, she convinced him to allow her to bring him to a local hospital instead.
Mr. Williams gave officers consent to search the room he had rented at the hotel, where officers found an AK-47 rifle, seventeen magazines loaded with ammunition, multiple knives, a black trench coat, black tactical pants, a black t-shirt that read “Let ‘Em Come,” and black tactical gloves with the fingers cut off. Mr. Williams told officers he had laid out his weapons on the bed so that law enforcement could take custody of them.
ATF received the firearms transaction form (Form 4473) that Williams had completed when purchasing the AK-47. On the form, Mr. Williams listed an address where he no longer resided.
According to court documents, agents discovered that Mr. Williams was actually living with a roommate at a different residence and had been residing there for a month or longer at the time he completed the Form 4473. Mr. Williams admitted to misrepresenting his current address on the firearms transaction form.
“This defendant subverted important firearms laws to obtain a weapon with the intention of producing mass fatalities,” said U.S. Attorney Erin Nealy Cox. “Thanks to the efforts of the defendant’s family members and law enforcement, this tragedy has been averted. If you suspect a friend or loved one is planning violence against themselves or others, do not hesitate to seek help immediately by calling law enforcement.”
“Federal firearms laws are designed to keep weapons from those that shouldn’t have them. This case shows that public cooperation with law enforcement is essential in preventing horrific acts of violence. ATF will continue to work tirelessly with its’ partners to keep firearms out of the hands of those that aim to cause harm”, said ATF Special Agent in Charge Jeffrey C. Boshek II.
“The FBI and our partners at the ATF and Lubbock Police Department were able to respond quickly and stop Mr. Williams from harming anyone or himself,” said Matthew DeSarno, Special Agent in Charge of the Dallas Field Office. “We will continue working with our law enforcement partners to protect the communities we serve.”
Mr. Williams faces up to five years in federal prison for his crime. A sentencing date has not been set.
The Lubbock Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jeffrey Haag, NDTX’s West Texas Branch Chief, and Stephen Rancourt are prosecuting the case.
Two Texas Syndicate Members Sentenced to Combined 50 YearsRead the Press Release
Two Texas Syndicate gang members were sentenced today to a combined 50 years in prison for drug trafficking in Lubbock, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jose Daniel Flores, aka “Cuate,” 43, was sentenced to 360 months in prison after pleading guilty in March to intent to distribute heroin. Gabriel Sepulveda Manriquez, aka “Pistolas,” 50, was sentenced to 248 months in prison after his June guilty plea to intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The sentences were imposed by U.S. District Judge James Wesley Hendrix.
According to court documents, beginning in 2018, the Drug Enforcement Administration began investigating Texas Syndicate members in the Lubbock area for suspected drug trafficking.
DEA agents utilized a cooperating source to purchase methamphetamine from Manriquez at his Lubbock residence. By September 2019, the court authorized a wiretap of Manriquez’s electronic device. Agents intercepted numerous conversations between Manriquez and other members of the drug trafficking organization discussing the sale and distribution of narcotics.
Law enforcement executed a search warrant of Manriquez’s residence. He was arrested and law enforcement recovered cocaine packaged for distribution and a Ruger .357 with the serial numbers obliterated from the pistol.
Two search warrants were issued in connection to Flores’ drug trafficking activity. The Lubbock Police Department SWAT team located Flores inside a Lubbock hotel room with co-defendant, Allison Langdon, along with two kilograms of methamphetamine, a large sum of cash, and a Glock .40 pistol. Agents also searched Langdon’s house and recovered approximately half-a-kilogram of heroin locked in a safe which Flores admitted belonged to him.
During an interview with law enforcement, Flores admitted that he obtained methamphetamine and heroin directly from suppliers in Mexico. The investigation revealed that Flores was responsible for importing over 417 kilograms of methamphetamine from Mexico into the United States on behalf of the drug trafficking organization.
Co-defendants Allison Langdon, Ray Elias Narvais-Rodriguez, Luis Gonzalez, Jesus Manriquez, Angelica Del Valle, Randy Roy Nunez, and Tanner Paul Langdon have received sentences ranging up to 235 months.
This case was investigated by the Drug Enforcement Administration, Lubbock Police Department, Lubbock County Sheriff’s Office, and members of the Lubbock, Texas Anti-Gang Unit. Assistant U.S. Attorney Stephen Rancourt prosecuted this case.
Operation Wasted Daze: 49 Charged in $18 Million Pill Mill SchemeRead the Press Release
Forty nine defendants, including two doctors and five pharmacists, have been charged with participating in an $18 million pill mill scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an exhaustive investigation by the DEA’s Fort Worth Tactical Diversion Squad, 40 of the 49 defendants were arrested last week in “Operation Wasted Daze.” All 49 have been charged with conspiracy to possess with intent to distribute controlled substances. The final arrested defendant made her initial appearance in court this afternoon.
“By funneling addictive opioids onto our streets, these medical professionals violated both the Hippocratic oath and federal law – causing harm rather than healing, hurt rather than hope,” said U.S. Attorney Erin Nealy Cox. “This 49-defendant case represents a significant step in the fight against drug diversion in North Texas, and we appreciate DEA’s commitment to ensuring that all pill mill doctors and conspirators are investigated and shut down.”
“Medical professionals hold the public’s trust to provide what is in the best interests of their patients,” said DEA Dallas Field Division Special Agent in Charge Eduardo A. Chávez. “When this is eroded by supplying diverted prescription drugs to the streets in Fort Worth, DEA Dallas will ensure they are held accountable to the fullest extent of the law.”
According to the criminal complaint, unsealed today, Dr. Caesar Mark Capistrano, 61, and Dr. Tameka Lachelle Noel, 36, allegedly wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, allegedly used a network of recruiters to enlist “patients” from the community and local homeless shelters. Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel. The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pharmacies and diverted the drugs for resale on the streets.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine. Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
Medical professionals charged in the scheme include:
- Caesar Mark Capistrano, medical doctor
- Tameka Lachelle Noel, medical doctor
- Ngozika Tracey Njoku, nurse practitioner
Clinic staff charged in the scheme include:
- Shirley Ann Williams, clinic office manager
- Latonya Ann Tucker, office staff
Recruiters charged in the scheme include:
- Ritchie Dale Milligan, Jr
- Wayne Benard Kincade
- Katie Lorane Parker
- Cynthia Denise Cooks
Pharmacists charged in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
- Bartholomew Anny Akubukwe, Beco Pharmacy
- Nedal Helmi Naser, Brandy Pharmacy
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
A criminal complaint is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, each defendant faces up to 20 years in federal prison.
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. Assistant U.S. Attorney Laura Montes is prosecuting the case.
‘Undead Bandit’ Sentenced to 14 Years for Bank RobberiesRead the Press Release
A serial bank robber who led police on a high-speed chase across the Dallas-Fort Worth Metroplex has been sentenced to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Dubbed the “Undead Bandit” by the FBI, Carter Briscoe Tucker, 54, pleaded guilty to three counts of bank robbery and one count of possession of a firearm in furtherance of a crime of violence in December of 2019. Last Friday, he was sentenced before U.S. District Judge Karen G. Scholer.
In plea papers, Mr. Tucker admitted to robbing ten banks across the Dallas-Fort Worth Metroplex from October 2017 to August 2019 and stealing in excess of $52,000. During the commission of most of the bank robberies, Mr. Tucker wore a Halloween-style mask, all black clothing, gloves, and a holster on his left hip, which contained a .45 caliber pistol.
On August 3, 2019, Mr. Tucker entered a Wells Fargo bank in Alvarado, Texas. He approached the bank teller, placed a cooler on the counter, and stated, “Give me all your money. No dye packs. No trackers, and nobody is going to get hurt.” Afraid for her life, the teller complied with Mr. Tucker’s demand and handed over cash.
Local law enforcement were alerted to Mr. Tucker’s license plate number and he was located leaving the bank. Mr. Tucker fled the scene at speeds in excess of 100 mph when authorities attempted to pull him over. Police deployed spike strips in an effort to disable his vehicle, but Mr. Tucker continued to drive with flat tires. Eventually, Mr. Tucker bailed out of the vehicle and fled on foot. Law enforcement arrested him the following day.
The Federal Bureau of Investigation’s Violent Crimes Task Force conducted the investigation and Alvarado Police Department, Johnson County Sheriff’s Office and Texas DPS assisted with the arrest. The following agencies aided in the robbery investigations: Denton Police Department, Grapevine Police Department, Rowlett Police Department, Balch Springs Police Department, Keller Police Department, Argyle Police Department, Bedford Police Department, Alvarado Police Department and Fort Worth Police Department. Assistant U.S. Attorney Melanie Smith prosecuted this case.