Northern District of Texas
Press releases recorded for this federal judicial district.
Justice Department Files Suit Against Dallas, Texas, Towing Company for Unlawfully Selling Servicemember-Owned VehiclesRead the Press Release
The Justice Department today filed a lawsuit in the Northern District of Texas alleging that Dallas-based towing company United Tows LLC violated the Servicemembers Civil Relief Act (SCRA), by unlawfully auctioning off vehicles owned by SCRA-protected servicemembers.
The SCRA, which provides a wide variety of financial protections to members of the military, prohibits towing companies from auctioning off servicemembers’ vehicles or disposing of their personal property without a court order.
“When members of our military answer the call to serve our country, they should be able to do so without having to worry that their vehicles or property will be auctioned off while they are on duty,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The department is filing this lawsuit to ensure that United Tows provides just compensation to the servicemembers who were harmed and to ensure that the company does not continue to engage in these unlawful sales in the future.”
“The men and women who serve in the armed forces make immense personal sacrifices to keep our country safe,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This lawsuit is a reminder that we will aggressively hold those institutions and businesses accountable who are required to comply with the Servicemembers Civil Relief Act. Our military deserves no less.”
The lawsuit alleges that United Tows auctioned at least five vehicles in violation of the SCRA, including a Toyota Corolla that was towed while its owner was completing basic training in San Antonio, Texas. When the servicemember learned that his vehicle had been towed, he contacted United Tows and told the owner of the company that he was on active duty and that, due to military training requirements, he was unable to claim the vehicle at that time. The owner of United Tows responded by telling the servicemember that she did not believe that he was in the military. United Tows ultimately sold the vehicle without a court order while the servicemember was still completing his training requirements.
The department’s complaint also alleges that United Tows does not have any written policies regarding SCRA compliance, and does not take any steps to determine whether the motor vehicles it auctions, sells or disposes of are owned by servicemembers.
In addition to seeking damages for the affected servicemembers, the Justice Department is asking the district court to prohibit United Tows from illegally auctioning off servicemembers’ vehicles in the future in violation of the SCRA. The lawsuit also seeks civil penalties against United Tows.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Sham Trader Who Urged Investors to ‘Profit Off’ Pandemic Charged with Commodities FraudRead the Press Release
A man who urged investors to “profit off” the COVID-19 pandemic has been charged with commodities fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Kenzley Ramos, 27, of Lawrenceville, Georgia, on one count of commodities fraud for falsely promising investors that he would trade their money on foreign currency exchange markets while pocketing their funds. Mr. Ramos surrendered to federal authorities in Atlanta on Friday morning, and made his initial appearance in federal court on Friday afternoon.
According to the indictment, unsealed today, Mr. Ramos used a classified advertisements website to market himself as a skilled foreign currency exchange, or “forex,” trader.
As the nation’s stock markets cratered in the spring of 2020 due to the threat of COVID-19 outbreak, Mr. Ramos preyed on the public’s concerns surrounding the pandemic, telling prospective investors that the “stock market is crumbling” and inviting them to “profit off the coronavirus with forex.” He said there was “no possible way” investors could lose money with his expertise, claiming “guaranteed” returns as high as 300 percent.
Instead of investing their money, however, Mr. Ramos misdirected investors’ funds to his own personal use and to enrich others.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Ramos is presumed innocent unless and until proven guilty in a court of law.
If convicted, Mr. Ramos faces up to 25 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Commodity Futures Trading Commission (CFTC) and the Texas State Securities Board (TSSB). Assistant U.S. Attorney Fabio Leonardi, the Northern District of Texas’ COVID-19 Coordinator, is prosecuting the case.
NDTX Round-Up: September 18-24Read the Press Release
SENTENCING – DOMINGO SANTIAGO CEDANO-MARTINEZ
On September 18, Domingo Santiago Cedano-Martinez, 24, was sentenced to 8 years in federal prison for possession of a controlled substance with intent to distribute. On August 8, 2019, Cedano-Martinez met with a co-conspirator at Town East Mall in Mesquite, Texas to sell 993 grams of methamphetamine. During the drug transaction, law enforcement arrested Cedano-Martinez and seized the drugs. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Gregory Martin prosecuted this case.
GUILTY PLEA – BERNICE LEE WOODSON, JR.
On September 22, Bernice Lee Woodson, Jr., 35, plead guilty to possession with intent to distribute 500 grams or more of methamphetamine. DEA agents executed a search warrant at Woodson’s home in Crandall, Texas. Inside the kitchen refrigerator, agents found 289 grams of heroin. Inside the kitchen cupboard, agents found over a kilogram of methamphetamine and approximately 200 grams of cocaine, pharmaceutical pills, and marijuana. In a bedroom, agents found 7.4 kilograms of miscellaneous pills and throughout the house were seven firearms and $36,000. Woodson faces up to life 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 – LEONEL GENARO YANEZ
On September 22, Leonel Genaro Yanez, 47, plead guilty to possession with intent to distribute a methamphetamine. Yanez, an illegal immigrant from Morelia, Mexico, met an individual in Mesquite, Texas where he purchased car audio speakers which he knew contained 20 kilograms of methamphetamine. Yanez planned to distribute the narcotics to an individual who was taking the speakers to Florida. Yanez 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.
Plano Man Convicted of Enticing a 12-Year-Old GirlRead the Press Release
A Plano man has been convicted at trial of attempting to entice a 12-year-old girl at Sheppard Air Force Base, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a day-long trial, a federal jury in Wichita Falls found Tzu Fan Chen, 54, guilty of one count of attempted enticement of a child. The jury deliberated for just six minutes to reach its verdict.
According to evidence presented at trial, on June 16, 2020, an Air Force Office of Special Investigations agent acting in an undercover capacity placed an online advertisement on a popular social media website entitled, “Daughter & I seeking new friends.”
Mr. Chen responded to the ad and stated he was interested in getting to know the undercover agent and his daughter. During communications with law enforcement, Mr. Chen arranged to have a sexual encounter with the 12-year-old girl in Wichita Falls. Mr. Chen also asked the agent if his daughter was “trained,” how she responded to sexual contact, and stated “we must hush hush about our lifestyle.”
On June 18, Mr. Chen drove from Plano to Sheppard Air Force Base in Wichita Falls with the intention of meeting a dad who was offering up his 12-year-old daughter for sex. When Mr. Chen arrived at the address provided by undercover officers, he was intercepted by law enforcement and taken into custody.
Mr. Chen now faces up to life in federal prison. His sentencing is set for February 12, 2021 before U.S. District Judge Reed O’Connor in Wichita Falls.
This case was investigated by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Brandie Wade and A. Saleem tried the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative pools federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Texas Woman Sentenced to Prison for Role in $5.5 Million Federal Worker’s Compensation Overbilling SchemeRead the Press Release
A Texas woman was sentenced to 18 months in prison today for her role in a $5.5 million scheme to overbill the U.S. Department of Labor Office of Workers’ Compensation Program for physical therapy and other services.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of the Inspector General’s (DOJ-OIG) Dallas Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General’s (DOL-OIG) Dallas Regional Office, Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General’s (USPS-OIG) Southern Area Field Office, Acting Special Agent in Charge Patrick Roche of the U.S. Department of Veterans Affairs Office of Inspector General’s (VA-OIG) Criminal Investigations Division South Central Field Office, and Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU) Southwest Fraud Field Office made the announcement.
Melissa Sumerour, 49, of Lorena, Texas, was sentenced by U.S. District Judge Karen Gren Scholer of the Northern District of Texas to 18 in prison followed by three years of supervised release. After a trial in December 2019, Sumerour was convicted of six counts of health care fraud.
According to evidence presented at trial, from approximately January 2011 to March 2017, Sumerour engaged in a scheme to defraud the DOL’s Office of Workers’ Compensation Program by overbilling for physical therapy. The evidence established that the fraud, in which Sumerour billed for more physical therapy than was provided, cost the Office of Workers’ Compensation Program in excess of $5.5 million.
One other defendant has been charged in this matter. Latosha Morgan, 42, of Grand Prairie, Texas, pleaded guilty and is awaiting sentencing.
This case was investigated by DOJ-OIG, DOL-OIG, USPS-OIG, VA-OIG, and Army CID-MPFU. Trial Attorneys Brynn Schiess and Amy Markopoulos of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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 Charges Alleged DarkWeb Drug Trafficker Arrested in DOJ Operation DisrupTorRead the Press Release
Today, the Department of Justice, through the Joint Criminal Opioid and Darknet Enforcement (JCODE) team, joined Europol to announce the results of Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet. The operation, which was conducted across the United States and Europe, demonstrates the continued partnership between JCODE and Europol against the illegal sale of drugs and other illicit goods and services.
Operation DisrupTor actions have resulted in the arrest of 179 Darknet drug traffickers and fraudulent criminals who engaged in tens of thousands of sales of illicit goods and services across the United States and Europe — including a 39-year-old alleged Darknet cocaine and heroin trafficker charged in the Northern District of Texas.
121 of Operation DisrupTor arrests were made in the United States, including two in Canada at the request of the United States, 42 in Germany, eight in the Netherlands, four in the United Kingdom, three in Austria, and one in Sweden. A number of investigations are still ongoing to identify the individuals behind dark web accounts.
The operation also resulted in the seizure of over $6.5 million; approximately 500 kilograms of drugs worldwide (including approximately 275 kilograms of drugs in the U.S.); and 63 firearms. Darknet vendor accounts were identified and attributed to real individuals selling illicit goods on Darknet market sites such as AlphaBay, Dream, WallStreet, Nightmare, Empire, White House, DeepSea, Dark Market and others.
By leveraging complementary partnerships and surging resources across the U.S. government and Europol, Operation DisrupTor was used to significantly disrupt the online opioid trade and send a strong message that criminals operating on the Darknet are not beyond the reach of law enforcement.
“Criminals selling fentanyl on the Darknet should pay attention to Operation DisrupTor,” said Deputy Attorney General Jeffrey Rosen. “The arrest of 179 of them in seven countries—with the seizure of their drug supplies and their money as well — shows that there will be no safe haven for drug dealing in cyberspace.”
The extensive operation, which lasted nine months, resulted in over dozens of federal prosecutions including:
- Aaron Brewer, 39, of Corsicana, Texas, was charged with conspiracy to possess with intent to distribute a controlled substance and distribution of a controlled substance in a two-count indictment returned by a grand jury in the Northern District of Texas. According to court documents, the defendant allegedly sold cocaine, heroin, and other drugs via the dark web. He allegedly accepted payment in cryptocurrency, primarily bitcoin, and then shipped the drugs to customers’ addresses through the U.S. mail and other shipping services. Following Brewer’s arrest on July 2, agents with the U.S. Postal Inspection Service and FBI Dallas Field Office seized roughly 650 grams of black tar heroin, cocaine, and OxyContin, two computers, and more than $870 in postage stamps, as well as a ledger outlining 757 drug shipments sent to 609 unique addresses between December 2019 and March 2020.
- The Los Angeles JCODE Task Force, in conjunction with the U.S. Attorney’s Office for the Central District of California, successfully dismantled a drug trafficking organization that used online monikers such as “Stealthgod” to sell methamphetamine and MDMA on multiple Darknet marketplaces. Investigators have linked the crew to more than 18,000 illicit drug sales to customers in at least 35 states and numerous countries around the world. During law enforcement actions in Southern California earlier this year, members of JCODE arrested five defendants and seized approximately 120 pounds of methamphetamine, seven kilograms of MDMA and five firearms. Two of the five – Teresa McGrath, 34, of Sunland-Tujunga, and Mark Chavez, 41, of downtown Los Angeles – have since pleaded guilty to narcotics-trafficking and other offenses, and each faces a 15-year mandatory minimum sentence. As the investigation continued, the Los Angeles JCODE Task Force made additional seizures, including $1.6 million in cryptocurrency, 11 pounds of methamphetamine and 14 pounds of pills pressed with methamphetamine. Andres Bermudez, 37, of Palmdale, California, who allegedly was a main supplier of methamphetamine to the “Stealthgod” crew, was charged last week with a narcotics-trafficking offense that carry a 10-year mandatory minimum sentence. He is considered a fugitive.
- Arden McCann, 32, of Quebec, Canada, was charged with conspiring to import drugs into the United States and money laundering conspiracy, in a four-count indictment returned by a grand jury in Atlanta, Georgia. According to court documents, the defendant is alleged to have imported alprazolam, fentanyl, U-47700, and fentanyl analogues such as carfentanil, furanyl fentanyl, 4-fluoroisobutyryl fentanyl, acryl fentanyl, and methoxyacetyl fentanyl into the United States from Canada and China. The superseding indictment alleges that fentanyl analogues the defendant imported into the United States resulted in a non-fatal overdose in April 2016, and fentanyl the defendant imported into the United States resulted in an overdose death in December 2016.
- Khlari Sirotkin, 36, of Colorado; Kelly Stephens, 32, of Colorado; Sean Deaver, 36, of Nevada; Abby Jones, 37, of Nevada; and Sasha Sirotkin, 32, of California, were charged with drug trafficking and money laundering conspiracy, in a 21-count indictment returned by a grand jury in Cincinnati, Ohio. According to court documents, the defendants are alleged to be members of one of the most prolific online drug trafficking organizations in the United States and allegedly specialized in the manufacturing and distribution of more than one million fentanyl-laced counterfeit pills and laundered approximately $2.8 million over the course of the conspiracy. The pressed fentanyl pills, along with heroin, methamphetamine and cocaine, were shipped to the Southern District of Ohio and throughout the country. FBI, DEA, FDA, HSI and USPIS agents seized 2.5 kilograms of fentanyl; 5,095 pressed xanax; 50 suboxone; 16.5 grams of cocaine; 37 grams of crystal meth; 12 grams of black tar heroin; an industrial pill press; 5,908 pounds of dried marijuana with an estimated street value of $9 million; $80,191 in cash, 10 firearms and one pound of fentanyl.
- The FBI Washington Field Office’s Hi-Tech Opioid Task Force, in conjunction with the U.S. Attorney’s Office for the Eastern District of Virginia, successfully thwarted a firebomb attack plot involving explosives, firearms, the Darknet, prescription opioid trafficking, cryptocurrency, and sophisticated money laundering. William Anderson Burgamy, 33, of Hanover, Maryland, and Hyrum T. Wilson, 41, of Auburn, Nebraska, pleaded guilty in the Eastern District of Virginia to charges related to a conspiracy to use explosives to firebomb and destroy a competitor pharmacy in Nebraska. Burgamy, who is not a pharmacist, operated as the Darknet vendor NeverPressedRX (NPRX) since at least August 2019. Wilson, who was a licensed pharmacist, illegally mailed to Burgamy over 19,000 dosage units of prescription medications, including opioids, from his pharmacy in Nebraska. Burgamy illegally sold prescription drugs through his Darknet vendor account to customers nationwide, and claimed at one point that he made nearly $1 million total. Burgamy and Wilson agreed that Burgamy and another individual would carry multiple firearms during the attack operation and use explosives, specifically Molotov cocktails enhanced with Styrofoam as a thickening agent, to burn the victim pharmacy down in furtherance of their drug trafficking scheme. Law enforcement agents seized thousands of opioid pills, eight unsecured firearms, including two loaded AR-15 assault rifles with high capacity magazines, and over $19,000 cash. Prior to Burgamy’s arrest in April 2020, which uncovered and thwarted the firebombing plot, Burgamy and Wilson fully intended on the attack occurring after COVID-19 restrictions were lifted.
An indictment and criminal complaint merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operation DisrupTor was a collaborative initiative across JCODE members, including the Department of Justice; Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); U.S. Postal Inspection Service (USPIS); U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); Financial Crimes Enforcement Network (FinCEN); Bureau of Alcohol, Tobacco, and Firearms (ATF); Naval Criminal Investigative Service (NCIS) and Department of Defense (DOD). Local, state and other federal agencies also contributed to Operation DisrupTor investigations. The investigations leading to Operation DisrupTor were significantly aided by essential support and coordination by the Department of Justice’s multi-agency Special Operations Division, the Criminal Division’s Computer Crime and Intellectual Property Section, Narcotic and Dangerous Drug Section, and Organized Crime and Gang Section, the Justice Department’s Office of International Affairs, the National Cyber Joint Investigative Task Force (NCJITF), Europol and its Dark Web team and international partners Eurojust, Austrian Federal Investigation Bureau (Bundeskriminalamt), Cyprus Police (Αστυνομία Κύπρου), German Federal Criminal Police Office (Bundeskriminalamt), Canada’s Royal Canadian Mounted Police, Portuguese Judicial Police (Polícia Judiciária), Dutch Police (Politie), Swedish Police (Polisen), the British National Crime Agency, Australia's Western Australia Police Force and Australian Criminal Intelligence Commission.
Federal prosecutions are being conducted in more than 20 Federal districts, including: the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Columbia, the District of Connecticut, the Middle District of Florida, the Southern District of Florida, the Northern District of Georgia, the District of Hawaii, the Western District of Missouri, the District of New Jersey, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, District of Oregon, the Western District of Pennsylvania, the Northern District of Texas, the Eastern District of Virginia, the District of the Virgin Islands and the Western District of Washington.
JCODE is an FBI-led Department of Justice initiative, which works closely with the DEA-led, multi-agency, Special Operations Division to support, coordinate and de-conflict investigations targeting for disruption and dismantlement of the online sale of illegal drugs, especially fentanyl and other opioids. Additionally, JCODE targets the trafficking of weapons and other illicit goods and services on the internet. Operation DisrupTor illustrates the investigative power of federal and international partnerships to combat the borderless nature of online criminal activity.
Photos of seizures can be obtained by clicking here, relevant court documents can be obtained by clicking here, and graphic can be downloaded here.
- Aaron Brewer, 39, of Corsicana, Texas, was charged with conspiracy to possess with intent to distribute a controlled substance and distribution of a controlled substance in a two-count indictment returned by a grand jury in the Northern District of Texas. According to court documents, the defendant allegedly sold cocaine, heroin, and other drugs via the dark web. He allegedly accepted payment in cryptocurrency, primarily bitcoin, and then shipped the drugs to customers’ addresses through the U.S. mail and other shipping services. Following Brewer’s arrest on July 2, agents with the U.S. Postal Inspection Service and FBI Dallas Field Office seized roughly 650 grams of black tar heroin, cocaine, and OxyContin, two computers, and more than $870 in postage stamps, as well as a ledger outlining 757 drug shipments sent to 609 unique addresses between December 2019 and March 2020.
NDTX Round-Up: September 11-17Read the Press Release
SENTENCING – MARCUS CARL GRANT
On September 11, Marcus Carl Grant, 38, was sentenced to 87 months in federal prison for possession with intent to distribute a controlled substance and felon in possession of a firearm. During the execution of a search warrant of a known drug house, law enforcement located Grant along with two other individuals. Agents recovered controlled substances, loaded firearms, cash, digital scales, and narcotics bagged for individual sale. This case was investigated by the ATF and the Dallas Police Department. Assistant U.S. Attorney Melanie Smith is prosecuted this case.
SENTENCING – SERGIO REYES
On September 11, Sergio Reyes, 48, was sentencing to 9 years in federal prison for possession of a controlled substance, methamphetamine, with the intent to distribute. Reyes and a co-conspirator negotiated with a confidential source for a multi-kilogram methamphetamine purchase. Reyes agreed to sell six kilograms of methamphetamine packaged in gallon-sized zip-locked bags. Shortly after the sell, Reyes was placed under arrest by the Mesquite Police Department. This case was investigated by the DEA and the OCDETF North Texas Strike Force. Assistant U.S. Attorney Myria Boehm prosecuted this case.
GUILTY PLEA – DARNELL HARRIS GAUSE
On September 15, Darnell Harris Gause, 40, plead guilty to delay or destruction mail. While an employee of the United States Postal Service, Mr. Gause unlawfully delayed and detained items that were given to him to be mailed, namely, 10 checks. Mr. Gause faces up to five years in federal prison for his crimes. This case was investigated by the United States Postal Service – Office of Inspector General. Assistant U.S. Attorney Jennifer Bray is prosecuting this case.
GUILTY PLEA – ORALIA FIGUEROA
On September 15, Oralia Figueroa, 50, plead guilty to perpetration of a false and fraudulent federal income tax return. Figueroa engaged in a scheme to knowingly and willfully prepare fill false IRS tax returns. Figueroa unlawfully listed dependents on the Form 1040 when here clients were not eligible and fraudulently claimed thousands of dollars of unreimbursed employee expenses. The total tax loss attributed to her conduct is at least $120,200. Figueroa faces up to three years in federal prison for her crimes. This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Renee Hunter is prosecuting this case.
Two Buyers Indicted for Child Sex TraffickingRead the Press Release
Two men who allegedly purchased sex from a 13-year-old trafficking victim have been arrested and charged with child sex trafficking, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
On Sept. 2, a federal grand jury indicted Kention Obryan Johnson, 35, and Sergio Trinidad Carvajal, 30, for conspiracy to commit sex trafficking and sex trafficking of children. The defendants were arrested in Dallas last Wednesday; their court documents were unsealed today.
“Traffickers sell children for sex because their clients will pay for it. It’s that simple,” U.S. Attorney Nealy Cox said at a press conference this morning. “By attacking both the supply and the demand, we think we will be able to truly make a difference in fighting this dehumanizing, horrific crime.”
“The sex trafficking of minors is a despicable crime that HSI Dallas and our dedicated partners will continue to prioritize and relentlessly investigate. Whether you’re involved in the actual trafficking or perpetuate it as a consumer, HSI will use every resource available to ensure you face justice,” said Ryan L. Spradlin, Special Agent in Charge of HSI’s Dallas Field Office. “HSI will continue to pursue individuals involved in this type of modern-day slavery, and work vigorously to rescue the young, helpless victims whose dignity and well-being are blatantly disregarded.”
According to a criminal complaint filed late last year, Mr. Johnson and Mr. Carvajal’s coconspirator, 34-year-old Curtis Vance Mathis, allegedly advertised the Jane Doe on CityXGuide.com, an illegal sexual services website that has since been shut down by the U.S. Attorney’s Office for the Northern District of Texas. Agents recovered the child – dressed only in an oversized hoodie – in a West Irving hotel room rented in Mr. Mathis’ name on Nov. 5, 2019.
According to search warrant affidavits unsealed today, during the investigation, agents reviewed hotel surveillance footage and observed several men – later identified as Mr. Mathis, Mr. Johnson, Mr. Carvajal – enter and exit the room. Agents then searched Jane Doe’s phone records and uncovered text chats with Mr. Johnson and Mr. Carvajal discussing the price for a “qv,” or “quick visit,” commercial sex parlance for a brief sexual encounter. A forensic investigation later confirmed that DNA recovered from discarded condoms found in the hotel room matched Mr. Johnson and Mr. Carvajal.
This prosecution is part of the Justice Department’s sex trafficking demand reduction initiative, a program focused on punishing and deterring those who drive the market for sex from children and other vulnerable persons. The Abolish Human Trafficking Act of 2017 reaffirmed that a person who knowingly purchases a commercial sex act with a trafficking victim is just as culpable as the person who supplies the trafficking victim for commercial sex.
An indictment 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, Mr. Johnson and Mr. Carvajal each face up to life in federal prison, as does Mr. Mathis.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with assistance from the Fort Worth Police Department. Assistant U.S. Attorneys Myria Boehm and Becky Ricketts are prosecuting the case.
NDTX Round-Up: September 4-10Read the Press Release
SENTENCING – SAMUEL DE LA CRUZ-MEDINA
On September 4, Samuel De La Cruz-Media was sentenced to 10 years in federal prison for conspiracy to possess with the intent to distribute a controlled substance. Mr. De La Cruz-Media utilized a room at the Han Gil Hotel Town to distribute quantities of heroine, methamphetamine, cocaine, and other drugs to numerous customers on a daily basis. Mr. De La Cruz-Media is the seventeenth defendant convicted in association with the Han Gil Hotel Town. The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Rick Calvert prosecuted this case.
SENTENCING – CESAR ORTIZ
On September 8, Cesar Ortiz was sentenced to 4 years in federal prison for conspiring to possess with intent to distribute cocaine and conspiring to launder money. Mr. Ortiz conspired with codefendants to pick up and distribute 12 kilograms of cocaine. He and a codefendant discuss splitting the profits for the cocaine as well as sending drug proceeds from three kilograms of cocaine to Mexico. Mr. Ortiz was illegally in the United States at the time of the offense. This case was investigated by the Drug Enforcement Administration, Dallas County Sheriff's Office, Dallas Police Department, Irving Police Department, Richardson Police Department and Carrollton Police Department. Assistant U.S. Attorney George Leal prosecuted this case.
GUILTY PLEA – JAWED AHMAD
On September 8, Jawed Ahmad, 29, pleaded guilty to conspiracy to commit mail fraud. Mr. Ahmad and other coconspirators used a scheme to unlawfully enrich themselves by causing victims throughout the United States to send money to him by mail. Mr. Ahmad would call victims posing as a government authority and request money to clear up arrest warrants, settle the victims IRS’s tax bill, and by purchase federal bonds to safeguard the victims’ accounts. During Mr. Ahmad’s arrest, U.S. Secret Service Investigators found in his possession over $105,000 in U.S. currency, more than 75 counterfeit driver’s licenses bearing defendant’s photos, multiple credit cards with names of other individuals, and $4,185 in blank money orders. Mr. Ahmed faces up to 20 years in federal prison for his crimes. This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – ANTHONY CARDELL HENDERSON
On September 10, Anthony Cardell Henderson, 31, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and possession of a firearm by a convicted felon. Mr. Henderson, a known convicted felon, conspired with other individuals to distribute and possess methamphetamine. On multiple occasions in August 2019, Mr. Henderson and two co-conspirators obtained methamphetamine and sold it for a profit. When officers took Mr. Henderson into custody they searched the minivan he had been driving and found a firearm. Mr. Henderson faces up to 30 years in federal prison for his crimes. This case was investigated by the ATF. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
GUILTY PLEA – EDDIE LEE BUSBY
On September 10, Eddie Lee Busby, 29, pleaded guilty to conspiracy to distribute and possess with intent to distribute a controlled substance. During August 2019, Mr. Busby and two co-conspirators obtained and sold methamphetamine for profit. Mr. Busby faces up to 20 years in federal prison for his crimes. This case was investigated by the ATF. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
Man Who Brandished Assault Rifle at Protest Pleads GuiltyRead the Press Release
A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock has pleaded guilty to making threats, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Emmanuel Quinones, a 25-year-old local, was charged via criminal complaint in early June and indicted a week later. He pleaded guilty to interstate threatening communications via videoteleconference Friday morning.
According to plea papers, Mr. Quinones admitted he brought a loaded Smith & Wesson .223 caliber semi-automatic rifle to a protest decrying the death of George Floyd.
In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. He refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun and a protestor moved to tackle him.
Prior to the protest, Mr. Quinones admitted, he posted threatening messages online:
In a May 28 Facebook post, he wrote, “While a race riot erupted in Minneapolis the President literally retweeted a video of one of his supporters saying the only good Democrat is a dead Democrat. These people are PUSHING for America to rip itself to shreds. Disgusting. I’ll tell you right now if you keep provoking regular people we’ll make sure you never cross that line ever again. I guarantee it. #MountUp.”
In another post later that same day, he intimated that he planned to obtain gun parts “to off racists and MAGA people.”
Mr. Quinonnes now faces up to five years in federal prison. Sentencing will be set before U.S. District Judge James Wesley Hendrix in Lubbock at a later date.
The Federal Bureau of Investigation Dallas Field Office, Lubbock Resident Agency, the United States Secret Service, the United States Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
Denton Man Convicted of Trafficking 17-Year-Old GirlRead the Press Release
A Denton man has been convicted of child sex trafficking, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a day-long trial, a federal jury last night returned a guilty verdict against William Adam Jonathan Smith, convicting him of one count of conspiracy to commit sex trafficking of a minor and one count of sex trafficking of a minor.
According to evidence presented at court, Mr. Smith met and befriended the 17 year-old victim in the summer of 2019. He introduced her to Charity Cantu, his longtime girlfriend, who worked for him as a prostitute. Mr. Smith told Ms. Cantu that she was to groom and train the victim too make money for him providing commercial sex services.
From August thru October 2019, the victim accompanied Ms. Cantu to hotels in the Dallas and Fort Worth areas and engaged in commercial sex acts. All of the proceeds from the commercial sex acts performed by the victim were given to Mr. Smith.
Mr. Smith, 31, now faces up to life in federal prison. His sentencing is set for Jan. 8, 2021 before U.S. District Judge Reed O’Connor in Fort Worth.
Ms. Cantu, 25, pleaded guilty in March to a racketeering charge. In court documents, she admitted that although she knew the victim was a minor, Ms. Cantu groomed the girl for commercial sex and posted ads for her sexual services online. Ms. Cantu testified at Mr. Smith’s trial and is slated to be sentenced by U.S. District Judge Mark Pittman on Sept. 24, 2019.
The Texas Attorney General’s Office and Homeland Security Investigations conducted the investigation with the assistance of the Denton Police Department. Assistant U.S. Attorneys Doug Allen and Brandie Wade tried the case.
U.S. Attorney Announces Partnership with Special Inspector General for Pandemic RecoveryRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas (NDTX) has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR) to investigate and prosecute fraud in the distribution of the massive relief package authorized by the CARES Act, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“The CARES Act was passed by Congress and signed into law by the president to provide much needed relief to Americans suffering from the effects of the COVID-19 pandemic,” said U.S. Attorney Nealy Cox. “But it is an unfortunate reality that scammers, fraudsters, and criminal actors are working overtime to illegally exploit this pandemic for profit. The Department of Justice is committed to investigating and prosecuting these wrongdoers. We are eager to continue this fight against fraud by partnering with Special Inspector General Brian D. Miller and his team.”
In response to the widespread economic harm caused by the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals. The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute wrongdoing involving the making, purchase, management, and sale of loans, loan guarantees, and other investments by the Secretary of the Treasury under Division A of the CARES Act, and the management by the Secretary of any program established under Division A of the CARES Act. This partnership will make efficient use of resources and help ensure coordination with regulators and law enforcement so that just results can be achieved, while at the same time taking care not to stymie legitimate businesses acting in good faith to access the important financial resources that Congress made available to the public.
“I look forward to working with U.S. Attorney Nealy Cox and her team in the Northern District of Texas to identify fraud, waste and abuse of the money provided under the CARES Act,” said Special Inspector General Brian D. Miller. “We will bring to justice to those who steal CARES Act money, and recover money for the taxpayers. Taxpayers should expect nothing less.”
Two NDTX Assistant U.S. Attorneys – Deputy Chief Ken Coffin from the Civil Division and Fabio Leonardi from the Criminal Division – will serve as liaisons to the NDTX-SIGPR partnership. These AUSAs will be direct points of contact for case-related inquiries from SIGPR.
Texas residents who believe they are victims of fraud or other criminal activity related to the pandemic should contact the National Center for Disaster Fraud Hotline at (866) 720-5721. Members of the public can also contact the FBI’s Internet Crime Complaint Center (IC3).
Texas National Guardsman Sentenced in Government Credit Card Theft RingRead the Press Release
A Texas National Guardsman was sentenced to two years in federal prison and order to repay a $75,000 fine for theft of government money, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Emmanuel Alvarado, 35, is the third of three conspirators to be sentenced for participating in a scheme to use stolen government fuel credit cards ("fleet cards") to purchase fuel for themselves and others. In September 2019, Mr. Alvarado pled guilty to one count of theft of government money.
According to information provided in court, Mr. Alvarado, along with Carlos Espinola, 48, and Don Wright, 41, knew each other through service in the Texas Army National Guard (TXARNG).
In their positions with the TXARNG, Mr. Espinola and Mr. Wright had access to General Services Administration and Department of Defense "fleet cards" used to purchase fuel and maintenance for government vehicles. Mr. Espinola and Mr. Wright stole fleet cards from the TXARNG and shared them with Mr. Alvarado. Mr. Espinola also obtained a "skimming" device, which he used to replicate stolen fleet cards.
Mr. Alvarado owned automotive businesses in the Fort Worth area, which, among other things, offered towing services. Mr. Alvarado used the fleet cards to fuel his tow trucks, as well as other vehicles. In exchange for the fleet cards, Mr. Alvarado paid Mr. Espinola a fee. The conspirators' thefts caused a loss exceeding $100,000 to the United States.
In September 2019, Mr. Alvarado pled guilty to one count of theft of government money. Mr. Espinola and Mr. Wright earlier pled guilty to conspiracy charges. Mr. Espinola was sentenced to 48 months in federal prison. Mr. Wright was sentenced to 3 months of confinement. The defendants were each ordered to pay restitution to the government.
The U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, and U.S. General Services Administration, Office of Inspector General and the Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Robert Boudreau prosecuted the case.
NDTX Round-Up: August 28-September 3Read the Press Release
SENTENCING – ANDREW TYLER MOLINA
On August 31, Andrew Tyler Molina, 31, was sentenced to 18 years in prison for transporting and shipping child pornography. Tumblr, a social media app popular amoung teenagers, reported to the National Center for Missing and Exploited Children, that a user, Mr. Molina, was involved in communications about the sexual molestation of children. Law enforcement executed a search warrant on Mr. Molina’s residence and conducted a forensic review of his cell phones. Mr. Molina admitted to transporting videos and images depicting sadistic child pornography with infants and toddlers. Law enforcement recovered 88 images and 16 vides of child pornography on Mr. Molina’s two cell phones. This case was investigated by the FBI and Grand Prairie PD. Assistant United States Attorney Camille Sparks is prosecuting this case.
GUILTY PLEA – ILDERALDO DEANDRE LIMA-MOSLEY
On September 1, Ilderaldo Deandre Lima-Mosley, 31, pled guilty to felon in possession of a firearm. In May 2020, Mr. Lima-Mosley, a previously convicted felon, met an individual at a Dallas area tobacco shop to sell a .380 pistol and several magazines containing ammunition for $740. Mr. Lima-Mosley faces up to 10 years in prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – PETE TORRES
On September 1, Pete Torres, 30, plead guilty to conspiracy to launder money. Two individuals supplied Mr. Torres with cocaine. He sold the cocaine to others and earned a profit from his drug transactions. Mr. Torres used then profits to purchase more controlled substances from his suppliers to sell. Mr. Torres faces up to 20 years in prison for his crimes. This case was investigated by the Drug Enforcement Administration, Dallas PD, Irving PD, Dallas County SO, Richardson PD, and Carrolton PD. Assistant United States Attorney George Leal is prosecuting this case.
SENTENCING – JASON CRAIG WILLIAMS
On September 1, Jason Craig Williams, 33, was sentenced to 150 months for conspiracy to possess with intent to distribute methamphetamine. Mr. Williams engaged in this conspiracy form June 2017 through on or about June 28, 2017 in the Dallas Division of the Northern District of Texas. The case was investigated by the Department of Homeland Security Investigations, Texas Department of Public Safety, and Carrollton PD. Assistant United States Attorney George Leal is prosecuting this case.
SENTENCING – JEFFREY BRYAN DOUGHERTY
On September 2, Jeffrey Bryan Dougherty, 28, was sentenced to 9 years in prison for possession of a firearm by a convicted felon, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Law enforcement located Mr. Dougherty in a motel in Hutchins, Texas. In plain view, officers observed drug paraphernalia and a black backpack containing a 9 mm firearm, methamphetamine, heroin, and Mr. Dougherty’s wallet. Mr. Dougherty admitted that his was in possession of a 9 mm firearm and that he was at the motel selling the methamphetamine and heroin. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant United States Attorney Gary Tromblay is prosecuting this case.
Repatriated ISIS Fighter Pleads Guilty to Terror ChargeRead the Press Release
A repatriated ISIS fighter has pleaded guilty to a terrorism charge, announced the Department of Justice.
Omer Kuzu – a 23-year-old U.S. citizen captured by the Syrian Democratic Forces and returned to the U.S. by the FBI after a five-year stint handling communications for ISIS – pleaded guilty Wednesday to conspiring to provide material support to terrorism.
“The Department of Justice remains committed to holding accountable those who have left this country in order to join and support ISIS,” said John C. Demers, Assistant Attorney General for National Security. “We are thankful for the work of our foreign partners and the FBI in returning Kuzu to this country to face justice in an American courtroom. We hope countries around the world, including our European allies and partners, will likewise take responsibility for their own citizens who traveled to support ISIS.”
“This defendant, an American citizen radicalized on American soil, pledged allegiance to a brutal terrorist group and traveled halfway across the world to enact its agenda,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The United States must do everything we can to prevent and deter this type of radicalization and prioritize prosecution of those that support the terroristic agenda of ISIS. I am gratified Mr. Kuzu faced justice in an American court.”
“Preventing terrorism remains the FBI’s top mission priority. The defendant intentionally left the United States to join, train with, and fight on behalf of ISIS. The North Texas Joint Terrorism Task Force worked closely with our domestic and foreign partners to ensure the threat he posed was mitigated,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”
In plea papers, Kuzu admits that he and his brother, Yusuf, departed Texas for Istanbul, Turkey on Oct. 16, 2014. They then traveled to Orfa, Turkey, where an “ISIS taxi” picked them up and smuggled them across the border into Syria. They crashed in a series of “waiting houses” before ending up in Mosul, Iraq.
In Mosul, alongside 40 other foreign fighters, the brothers underwent five days of physical and weapons training led by ISIS instructors. They were then sent to Raqqah, Syria, where Kuzu started work at the ISIS telecommunications directorate.
Shortly thereafter, Kuzu admits, he pledged allegiance, or “Bay’ah,” to ISIS leader Abu Bakr al-Baghdadi and the Islamic Caliphate. He was given a monthly stipend, a Chinese-made AK 47, and an ISIS bride.
Subsequently, Kuzu was sent to the second lines in Kobani, Syria and Hama, Syria, to provide communications support for ISIS fighters on the front lines. He also worked in the Caliphate’s technology center.
In March 2019, Kuzu was captured by the SDF, alongside 1,500 suspected ISIS fighters. He was handed over to FBI custody, returned to American soil, and charged with conspiring to provide material support to ISIS.
In his plea papers, Kuzu admits that he knew ISIS had been designated a foreign terrorist organization (FTO) and engaged in terrorist activities.
He now faces up to 20 years in federal prison. Sentencing is set for Jan. 22, 2021.
The FBI’s Dallas Field Office conducted the investigation through the FBI’s Joint Terrorism Task Force (JTTF). Assistant U.S. Attorneys Errin Martin and Tiffany Eggers and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section are prosecuting the case.
Repatriated ISIS Fighter Pleads Guilty to Terror ChargeRead the Press Release
A repatriated ISIS fighter pled guilty to a terrorism charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Omer Kuzu – a 23-year-old U.S. citizen captured by the Syrian Democratic Forces and returned to the U.S. by the FBI after a five-year stint handling communications for ISIS – pleaded guilty Wednesday to conspiring to provide material support to terrorism.
“This defendant, an American citizen radicalized on American soil, pledged allegiance to a brutal terrorist group and traveled halfway across the world to enact its agenda,” said U.S. Attorney Erin Nealy Cox. “The United States must do everything we can to prevent and deter this type of radicalization and prioritize prosecution of those that support the terroristic agenda of ISIS. I am gratified Mr. Kuzu faced justice in an American court.”
“Preventing terrorism remains the FBI’s top mission priority. The defendant intentionally left the United States to join, train with, and fight on behalf of ISIS. The North Texas Joint Terrorism Task Force worked closely with our domestic and foreign partners to ensure the threat he posed was mitigated,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”
“The Department of Justice remains committed to holding accountable those who have left this country in order to join and support ISIS,” said John C. Demers, Assistant Attorney General for National Security. “We are thankful for the work of our foreign partners and the FBI in returning Kuzu to this country to face justice in an American courtroom. We hope countries around the world, including our European allies and partners, will likewise take responsibility for their own citizens who traveled to support ISIS.”
In plea papers, Mr. Kuzu (now 25) admits that he and his brother, Yusuf, departed Texas for Istanbul, Turkey on Oct. 16, 2014. They then traveled to Orfa, Turkey, where an “ISIS taxi” picked them up and smuggled them across the border into Syria. They crashed in a series of “waiting houses” before ending up in Mosul, Iraq.
In Mosul, alongside 40 other foreign fighters, the brothers underwent five days of physical and weapons training led by ISIS instructors. They were then sent to Raqqah, Syria, where Mr. Kuzu started work at the ISIS telecommunications directorate.
Shortly thereafter, Mr. Kuzu admits, he pledged allegiance, or “Bay’ah,” to ISIS leader Abu Bakr al-Baghdadi and the Islamic Caliphate. He was given a monthly stipend, a Chinese-made AK-47, and took an ISIS bride.
Subsequently, Mr. Kuzu was sent to the second lines in Kobani, Syria and Hama, Syria, to provide communications support for ISIS fighters on the front lines. He also worked in the Caliphate’s technology center.
In March 2019, Mr. Kuzu was captured by the SDF, alongside 1,500 suspected ISIS fighters. He was handed over to FBI custody, returned to American soil, and charged with conspiring to provide material support to ISIS.
In his plea papers, Mr. Kuzu admits that he knew ISIS had been designated a foreign terrorist organization (FTO) and engaged in terrorist activities.
He now faces up to 20 years in federal prison. His sentencing is set for Jan. 22, 2021.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation through the FBI’s Joint Terrorism Task Force (JTTF). Assistant U.S. Attorneys Errin Martin and Tiffany Eggers and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section are prosecuting the case.
Fraudster Pleads Guilty in $2 Million Ponzi SchemeRead the Press Release
A Honduran man who conned investors out of roughly $2 million has pleaded guilty to mail fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jose Anibal Linares, 42, was charged in October with one count of mail fraud and two counts of wire fraud. He pleaded guilty to the mail fraud charge via videoteleconference before Magistrate Judge Renee Harris Toliver on Tuesday.
According to plea papers, Mr. Linares admitted to running a Ponzi-type scheme, luring investors into handing over “principal” that he later deposited in bank accounts at Wells Fargo, Bank of America, and Legacy Texas, then paying them “interest” from other investors’ principal payments.
Mr. Linares, who operated JC Loans Finance and Inversiones JC Dallas, admitted he falsely told investors their funds were “insured by the FDIC” and promised monthly returns based on investments in commercial and residential real estate, including a water resort and shopping centers in Honduras. He then mailed investors letters thanking them for joining the JC “family.”
Instead of investing their money, however, Mr. Linares admits he spent substantial amounts of investor funds on personal expenditures, and even wired some of the money to family members in Honduras.
In the meantime, he made lulling payments to investors by withdrawing large sums from his Bank of America and Wells Fargo accounts, generally using funds that had been deposited immediately beforehand from other investors. On some occasions, he even took investors’ cash payments from one set of investors in his office, then turned the cash over to other investors waiting in his lobby for their monthly disbursements.
By summer 2017, Mr. Linares admits, he had ceased all monthly payments and did not return investors’ principal investments.
Mr. Linares now faces up to 20 years in federal prison. His sentencing date is set for January 11, 2021. A Honduran citizen in the U.S. on Temporary Protected Status, Mr. Linares may be subject to removal from the U.S. after serving his sentence.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Katherine Miller is prosecuting the case.
Plainview Man Charged with Assisting a Meth Trafficker’s Prison EscapeRead the Press Release
A Plainview man was charged today with assisting a meth trafficker’s prison escape, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Juan Anthony Cordero, 25, was arrested by United States Marshals Service’s North Texas Fugitive Task Force (NTFTF) on Saturday. He made his initial appearance in court today.
According to a criminal complaint unsealed today, Mr. Cordero spoke with Mark Lucio, a prisoner in federal custody at the Bailey County Jail to allegedly plan and assist with his escape. Mr. Lucio was in federal custody following his June 3rd guilty plea for possession to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
On August 28, Mr. Cordero was seen on a video call with Mr. Lucio allegedly discussing the details of a prison escape that was to occur the next day. Mr. Cordero and Mr. Lucio allegedly discussed the time for the escape and the vehicle Mr. Cordero would be driving.
On the morning of August 29, Mr. Lucio called Mr. Cordero minutes before the planned prison escape was to take place to advise Mr. Cordero with last minute instructions. Mr. Lucio made his escape through a sally port door at the Bailey County Jail and ran to Mr. Cordero’s car and they fled the area together.
Shortly after the escape, the Hale County Sheriff’s Office was notified by the NTFTF to be on the lookout for Cordero’s vehicle. Deputies with the Hale County Sheriff’s Office located Cordero’s car at a residence in Plainview, Texas. NTFTF members, along with deputies with the Hale County Sheriff’s Office and the Texas Department of Public Safety made contact with Mr. Cordero at the residence.
Following an interview with NTFTF officers, Mr. Cordero admitted to helping Mr. Lucio escape from the Bailey County Jail. Mr. Cordero allegedly said that he also gave Mr. Lucio a 9mm pistol and he dropped Mr. Lucio off at a residence in Abernathy, Texas. NTFTF members found Mr. Lucio at that residence and took him into custody without incident.
A criminal complaint is formal accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted of the charged offense, Mr. Cordero faces up to 5 years in federal prison.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office are investigating this case. Assistant U.S. Attorney Jeffrey Haag is prosecuting this case.
Yaser Said Family Members Charged with Concealing '10 Most Wanted' Suspect from ArrestRead the Press Release
Two relatives of Yaser Said – a capital murder suspect arrested Wednesday – have been charged with helping Mr. Said evade capture for more than 12 years, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Islam Yaser-Abdel Said, Yaser’s 32-year-old son, and Yassein Said, Yaser’s 59-year-old brother, were arrested Wednesday in Euless, Texas by the FBI’s Dallas Violent Crimes Task Force and charged via criminal complaint with concealing a person from arrest. Both made their initial appearances before U.S. Magistrate Judge Hal R. Ray in Fort Worth Friday afternoon.
Yaser Said, 63, had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, Yaser drove them to a location in Irving and shot them to death inside his taxicab, abandoning their bodies inside the vehicle. The following day, he was charged by the state with two counts of capital murder. In Dec. 2014, Yaser was placed on the FBI’s “Ten Most Wanted” list, where he remained until his capture this week.
“For years, Islam and Yassein Said — Sarah and Amina’s own brother and uncle – allegedly harbored the girls’ killer,” said U.S. Attorney Erin Nealy Cox. “In concealing Yaser Said from arrest, not only did these men waste countless law enforcement hours in the hunt for a brutal fugitive, they also delayed justice for Sarah and Amina. Thankfully, their day of reckoning has finally arrived. We are hopeful all three arrests will bring a measure of comfort to the girls’ mother, relatives, and friends.”
“The defendants provided aid and comfort to an individual who is accused of murdering his own daughters,” said FBI Dallas Special Agent in Charge of the Dallas Field Division Matthew DeSarno. “Harboring a dangerous fugitive is unacceptable. The FBI and our law enforcement partners will pursue anyone who helps a criminal evade capture.”
According to the criminal complaint against Islam and Yassein, nine years after the murder, on Aug. 14, 2017, investigators caught a break: A maintenance worker at the Copper Canyon Apartment complex in Bedford, Texas, spotted Yaser inside a unit leased to his son, Islam.
Dispatched to repair a water leak, the maintenance worker knocked on the apartment door, but when no one answered, he used a key to unlock it. To his surprise, he found the interior deadbolt locked, indicating someone was inside the apartment. He knocked again, announcing himself as a maintenance worker. A tall, middle-aged Middle Eastern man opened the door and permitted him to make the repairs.
The maintenance worker later reported the incident to his apartment manager, who was aware of Islam’s relationship to a fugitive. The maintenance worker confirmed to his boss that the photo on Yaser Said’s wanted poster matched the man he’d seen in the apartment, and the pair immediately contacted the FBI. That same day, FBI Dallas dispatched a Violent Crimes Task Force agent to interview the maintenance worker. The agent showed him photos of Yaser’s brothers, along with Yaser himself. The maintenance worker pinpointed Yaser as the man he’d seen in the apartment.
At approximately 6:30 p.m. that evening, the same agent attempted to interview Islam, asking him for permission to search the apartment. Islam, upset, allegedly refused to cooperate. He then called placed a call, saying, “we have a problem.” AT&T records indicate Islam was in contact with his uncles.
At 1 a.m. the following morning, the FBI Dallas SWAT team executed a search warrant on Islam’s apartment. Finding the front door locked, they were forced to breach the door. They did not discover anyone inside, but observed the sliding glass patio door open. Underneath the patio, they noticed a bush with broken branches, suggesting someone had jumped off the patio and landed on the bush. Next to the flattened bush, they found a pair of eyeglasses, which they collected as evidence.
Agents also collected several pieces of evidence from inside the apartment, including several cigarette butts and a toothbrush inside a luggage bag in a closet. The FBI Laboratory in Quantico, Virginia cross-referenced DNA found on these items with DNA collected from Amina and Sarah. Analyists determined a 1 in 5.3 quintillion probably that the DNA found on the cigarette butts, eyeglasses, and toothbrush came from Amina and Sarah’s biological father: Yaser Said.
Twelve days after the raid on the apartment, on August 26, 2017, Customs and Border Patrol located Islam more than 1,000 miles away, inside a car selected for secondary screening at the U.S. Canada border. The driver of the car, Hany Medhat, told CBP agents that he and Islam had decided to take a “crazy road trip;” however, a search of his phone revealed he’d told his employer he had a “family emergency.”
Three years later, on Aug. 17, 2020, FBI agents began 24-hour surveillance of a home in Justin, Texas, purchased in the name of Dalal Said, Yassein’s daughter. They watched Islam and Yassein allegedly drive up to the home, deliver grocery bags inside, and carry trash bags back to their car.
Two days later, at 11:51 p.m. on Aug. 19, after Yassein and Islam had departed the residence, agents observed what appeared to be a shadow of a person walk across the interior of the residence in front of window twice.
On Aug. 25, agents once again observed Islam and Yassein exit the home with two bags of trash:
The agents followed the pair to a shopping center in Southlake, TX, approximately 19 miles from the house. They watched as Islam exited the vehicle, and Yassein pulled around to the side of the shopping center. Once the vehicle had pulled out of the parking lot, agents began to dig through the garbage cans on the side of the shopping center.
Inside the garbage cans, they located two bags matching the bags they’d seen the men carrying out to the car. They seized the bags and transported them back to the FBI Field Office, where they found numerous cigarette butts and other garbage.
The following day, agents executed a search warrant on the home, where they arrested Yaser Said. They arrested Yassein and Islam at a separate location in Euless, Texas.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Yassein and Islam Said are presumed innocent unless and until proven guilty in a court of law, as is Yaser Said.
If convicted, Yassein and Islam face up to five years in federal prison. Yaser, indicted by the state on capital murder charges, faces the death penalty.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany Eggers and Errin Martin are prosecuting the case.
NDTX Round-Up: August 20-27Read the Press Release
GUILTY PLEA – CHUPEE ERNEST JOE
On August 20, Chupee Ernest Joe, 37, pled guilty to two counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. Mr. Joe operated an income tax preparation business located in Irving, Texas. From 2013 to 2016, he assisted in the preparation of fraudulent individual tax returns. Mr. Joe routinely falsified or inflated deductions and credits including education credits and unreimbursed employee business expenses to create inflated refunds. Mr. Joe faces up to 6 years in federal prison for his crimes. This case was investigated by IRS – Criminal Investigations. Assistant U.S. Attorney Christopher Stokes is prosecuting this case.
GUILTY PLEA – ROGELIO ALVARADO
On August 20, Rogelio Alvarado, 35, pled guilty to conspiracy to distribute a controlled substance. Mr. Alvarado purchased crack cocaine and cocaine from other co-conspirators which were his source of supply. Mr. Alvarado used a cellular phone to negotiate, discuss, and facilitate his drug transactions. Mr. Alvarado faces up to 20 years in federal prison for his crimes. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – RASHID WALKER
On August 25, Rashid Walker, 48, plead guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance. Mr. Walker purchased methamphetamine from a supplier to distribute into the community. On five separate occasions, Mr. Walker supplied an undercover agent posing as a narcotics buyer with methamphetamine. Mr. Walker faces up to 20 years in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Walt Junker is prosecuting this case.
SENTENCING – CHRISTOPHER LATHAM
On August 27, Christopher Latham, 46, was sentenced to 71 months in federal prison for six counts of wire fraud. Mr. Latham devised a scheme to defraud and obtain money from two victims. He misrepresented the ownership and control over an oil and gas lease by telling the victims that the lease was lucrative. Mr. Latham made lies and material omissions to obtain approximately $70,000 from the victims which he used for his personal use, including to pay off debt, gamble, and make cash withdrawals. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting this case.
28 Charged in Cartel Money Laundering SchemeRead the Press Release
A Mexican cartel boss and 27 coconspirators have been charged with laundering more than $10 million in drug proceeds through a local clothing retailer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In a 38-count superseding indictment unsealed today, a federal grand jury charged 28 individuals connected to Cartel Jalisco Nueva Generacion – one of Mexico’s most violent and powerful drug cartels – with conspiracy to launder monetary instruments and other financial, drug, and gun crimes, including conspiracy to distribute methamphetamine, conspiracy to distribute heroin, and possession of a firearm by an undocumented alien.
“Drug cartels like CJNG wreak havoc across the globe, driving the spread of deadly drugs like meth and heroin,” said U.S. Attorney Nealy Cox. “We’re committed to tracking the money and disrupting these organizations by attacking their bottom line. By striking both the money and the drugs, we can more effectively impact the organization.”
“Addiction to drugs has many different faces. In this instance, the addiction to money and greed has met its consequence”, said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “Despite CJNG’s efforts to disguise their illegal activities into our North Texas communities, the DEA will seek to starve it of every last drug dollar and achieve justice for all those involved.”
According to court documents, Jose Valdovinos Jimenez, a plaza boss who goes by “La Roca” or “The Rock,” allegedly conspired with his codefendants to smuggle hundreds of kilograms of methamphetamine and heroin across the Mexican border, distribute the drugs within the United States, launder the proceeds, and then transfer the money back to CJNG leaders.
In order to insulate himself from law enforcement activity and limit losses from law enforcement raids, Mr. Jimenez and other leaders of CJNG implemented a compartmentalized infrastructure, relying on couriers to smuggle the drugs across the border, recrystallization laboratories to purify drugs for sale, fortified stash houses to store the drugs before distribution, and a multi-level dealer network to handle the cash.
At Mr. Jimenez’s direction, mid- and upper-level dealers transported drug proceeds to Yoli’s Western Wear, a clothing retailer located on Buckner Boulevard in Dallas. The 23-year-old manager of Yoli’s, Ivan Noe Valerio, and his family members then counted the money and separated it into thousands of transactions, sending it through a money remitter back to CJNG in Mexico.
An indictment 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, Mr. Jimenez and Mr. Valero face life in federal prison.
Other defendants charged in the scheme include:
- Teodoro Valerio Perez (Valerio’s father)
- Yolanda Mercado Valerio (Valerio’s mother)
- Iris Yaneli Valerio (Valerio’s sister)
- Laurentino DelaCruz, aka “Tino,” (alleged meth dealer)
- Carlo LNU, aka “Gordo,” (alleged wire transactions handler)
- Jesus Manuel Juarez Aguilar, aka “Chucho,” (alleged wire transactions handler)
- Cuauhtemoc Gonzalez Del Rio (alleged wire transactions handler)
- Jonathan Rene Jacobo Mata
- Oscar Mario Flores Daza
- Antonio Pena, Jr.
- Eduardo Galdean Gress (alleged stash house distributor)
- Lorenzo Piedra Chavez (alleged heroin dealer)
- Blanca Flor Hernandez
- Aniano Chavez Avila (alleged stash house distributor)
- Raul Ceja Barajas (alleged laboratory operator)
- Alejandro Garcia Lopez (alleged laboratory operator)
- Joel Guillermo Torres (alleged drug courier)
- Roberto Macias (alleged stash house distributor)
- Alexander Alvarez (alleged stash house distributor)
- Edgar Eduardo Vicente Miranda (alleged meth dealer)
- Manuel Garcia Gomez (alleged laboratory operator)
- Jorge Humberto Larios Velazco (alleged laboratory operator)
- Arthur Ernest Rubalcaba (alleged stash house distributor)
- Jose Alfredo Penalozo Perdomo
- Carlos Michael Hernandez (alleged meth dealer)
- Hobedt Moreno (alleged meth dealer)
During the course of this investigation, agents seized approximately 700 kilograms of methamphetamine, approximately 80 kilograms of heroin, and approximately $500,000 in drug proceeds. Dozens of the charged defendants have already been arrested.
The U.S. Drug Enforcement Administration’s Dallas Field Division, the Texas Department of Public Security, the U.S. Marshals Service, and ICE Enforcement & Removal Operations conducted the investigation with the assistance of the Midlothian Police Department and Ellis County Sheriff’s Office. Assistant U.S. Attorneys PJ Meitl and Travis Elder are prosecuting the case.
NDTX Round up: August 10-19Read the Press Release
GUILTY PLEA – WILLIAM DODD
On August 11, William Dodd, 34, pled guilty to possession with the intent to distribute a controlled substance and aiding and abetting. Dallas Police Department executed a search warrant and arrested Mr. Dodd at his Dallas-based stash house. Authorities seized 12.43 kilograms of marijuana, 5.67 grams of cocaine, 2.73 grams of N-ethylpentylone, 87 Norco pills containing hydrocodone bitartrate and acetaminophen, 65 Percocet pills, 141 grams of a red liquid containing codeine and promethazine, 33.69 grams of purple liquid containing codeine and promethazine, digital scales, multiple cellular phones, $4,530 in drug proceeds, and a stolen firearm. Mr. Dodd faces up to 20 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.
SENTENCING – WILLIAM ROSS POTTER
On August 12, William Ross Potter, 62, was sentenced to 19 years in federal prison for attempted enticement of a minor. Mr. Potter admitted to using his computer to persuade and induce multiple minors to engage in sexual activity. He placed ads on a social media site in which he looking for a sexual encounter. When officers went to Potter’s home in Garland, he refused to come out of the house. Eventually, Mr. Potter fled out of the back of the home and hid in a bush until officers arrested him. This case was investigated by the Grand Prairie Police Department, Garland Police Department, Dallas Police Department, McClennan County Sherriff’s Office. Assistant U.S. Attorney Camille Sparks is prosecuting this case.
SENTENCING – PABLO SALGUERO RAMIREZ
On August 14, Pablo Salguero Ramirez, 31, was sentenced to 2 years in federal prison for possession with the intent to distribute a controlled substance. Officers executed a search warrant on Mr. Ramirez’s home and located methamphetamine, $1,252 in U.S. currency, multiple firearms and an assorted ammunition. Mr. Ramirez admitted that he possessed the weapons in furtherance of his drug crimes and the cash was proceeds from his drug trafficking operations. This case was investigated by the ICE and Garland Police Department. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting this case.
SENTENCING – ARMANDO QUIROZ
On August 17, Armando Quiroz, 29, was sentenced to 12 years in federal prison for possession with the intent to distribute methamphetamine. Mr. Quiroz was staying at a Greenville, Texas hotel which served as a distribution point for his drug trafficking operations. Mr. Quiroz sold 7 grams of methamphetamine to a government source. Three days later the Hunt County Sheriff’s Department executed a search warrant on Mr. Quiroz’s hotel room where they recovered additional methamphetamine and a .380 pistol. This case was investigated by the ATF, DEA, and Hunt County Sheriff’s Office. Assistant U.S. Attorney Suzanna Etessam is prosecuting this case.
Fmr. Dallas Police Officer Pleads Guilty to Possession of ‘Sadistic’ Child PornRead the Press Release
An ex-Dallas police officer has pleaded guilty to possessing sexually explicit images of little girls, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old former senior corporal, pleaded guilty to possession of child pornography before U.S. Magistrate Judge Jeffrey Cureton Friday morning.
According to plea papers, Mr. Collins admitted he accessed child pornography via his Google email account in spring 2020.
Mr. Collins further admitted he knew the images depicted actual minors, including a nude prepubescent female, and portrayed “sadistic or masochistic conduct.” He also acknowledged that on one occasion, he knowingly distributed a file containing sexually explicit images of a child.
According to a criminal complaint filed in July, the investigation was triggered when Google detected sexually explicit images uploaded to Mr. Collin’s Google account via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
Mr. Collins, who resigned from the Dallas Police Department earlier this week, now faces up to 20 years in federal prison. His sentencing is slated for Jan. 8, 2021.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Dallas Mystic Shop Owner Pleads Guilty to Wildlife CrimesRead the Press Release
A Dallas mystic shop owner has pleaded guilty to trafficking dried hummingbird carcasses in violation of the Migratory Bird Treaty Act, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Cynthia Macias-Martinez, 48, pleaded guilty to the sale of wildlife taken in violation of federal law before United States Magistrate Judge Renee H. Toliver on Tuesday.
According to court documents, Ms. Macias-Martinez, owner of a Dallas mystic shop, admitted to selling dried hummingbird carcasses known as “chuparosas” without a valid permit or authorization. “Chuparosas” are believed by some to have mystical benefits and are commonly used as amulets or charms.
The hummingbird, a migratory bird, is protected by the Migratory Bird Treaty Act. Pursuant to Federal regulations, it is illegal to take, possess, import, export, transport, or sell a hummingbird, or its parts, nests, or eggs, except under the terms of a valid permit.
Ms. Macias-Martinez admitted the dried hummingbird carcasses she acquired were illegally imported and smuggled into the United States from Mexico. Without a valid permit or authorization, Ms. Macias-Martinez offered the dried hummingbird carcasses for sale in her store.
She further admitted to both possessing and selling dozens of dried hummingbird carcasses of different species each of which are protected under the Migratory Bird Treaty Act.
Ms. Macias-Martinez faces up to 5 years in federal prison, a$250,000 fine, and restitution for her crimes. A sentencing date has not yet been set.
This case was investigated by the U.S. Fish and Wildlife Service, IRS-Criminal Investigations, and Homeland Security Investigations. Assistant U.S. Douglas Brasher is prosecuting this case.
Woman Who Faked Cancer to Delay Prison Date Sentenced to 5 More YearsRead the Press Release
A Denison, Texas woman who faked stomach cancer in order to delay a prison sentence has been sentenced to an additional five years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kassie Bond Carpenter, 42, pleaded guilty in February to obstruction of justice. She was sentenced Thursday afternoon by U.S. District Judge Jane J. Boyle.
In plea papers, Ms. Carpenter – who’d already been sentenced to 41 months in federal prison for wire fraud – admitted she attempted to delay her prison reporting date by submitting to the Court at least nine sets of forged medical records indicating she had been diagnosed and was receiving treatment for adenocarcinoma, a cancer that begins in the glandular cells that line the stomach and other organs.
Ms. Carpenter “is now receiving radiation therapy for her stomach cancer,” her attorney wrote in an motion asking to delay her reporting date, noting that the defendant had access to only some of the medical records related to her treatment.
“Without proper treatment, [her] cancer will turn malignant and metastasize,” he added.
Based on the sham medical records, the Court granted multiple extensions, delaying her prison reporting date from Aug. 22, 2017 to Jan. 30, 2018, then to Aug. 7, 2018, then to Nov. 6, 2018, then to Jan. 29, 2019, and finally to April 29, 2019.
On Jan. 29, 2019, her defense attorney moved to withdraw from the case, stating that he believed he had been “an unwitting tool in a fraud on this Court” due to potential deceit by his client. Two days later, U.S. District Judge Sidney Fitzwater vacated his order extending Ms. Carpenter’s reporting date, and ordered her arrested.
The 60-month sentence handed down today will be served consecutive to the 41-month sentence handed down by Judge Fitzwater in the wire fraud case.
In that case, Ms. Carpenter pleaded guilty to embezzling money from a property management company where she worked. She admitted she fraudulently issued at least $133,000 in checks payable to herself, $157,000 in checks payable to a fictitious company she created, and used company money to pay off personal accounts with JC Penny, DirectTV, TXU Energy, and Verizon, resulting in more than $372,000 of losses to the property management company.
The Federal Bureau of Investigation’s Dallas Field Office investigated both the wire fraud case and the obstruction case. Assistant U.S. Attorney Christopher Stokes prosecuted both cases.
NextHealth Marketer Charged in $60 Million Kickback SchemeRead the Press Release
A pharmacy marketer who allegedly collected more than $60 million in illegal kickbacks has been charged with violating the federal Anti-Kickback Statute, Northern District of Texas First Assistant U.S. Attorney Prerak Shah announced today.
On Tuesday, a federal grand jury indicted Vinson Woodlee, owner of Med Left LLC, on one count of conspiracy to pay and receive healthcare kickbacks and three counts of soliciting and receiving healthcare kickbacks.
According to the indictment, Mr. Woodlee, 68, served as a marketer for NextHealth, a pharmacy and laboratory services company controlled by Andrew Hillman and Semyon Narosov.
NextHealth allegedly identified the industry’s most profitable prescriptions – including compound pain cream, scar cream, pain patches, and wellness supplements – then illegally paid physicians to prescribe those medications through NextHealth pharmacies, funneling some of the kickbacks through marketers like Mr. Woodlee.
In exchange for enlisting physicians to participate in the scheme, Mr. Woodlee allegedly demanded roughly 50% of the profits from each prescription and refill written by the doctors he recruited. He then funneled a portion of the money on to prescribing physicians and sub-marketers, keeping the rest for himself.
From 2012 to 2018, Mr. Woodlee allegedly collected more than $60 million in kickbacks. Of the $60 million, he passed $16.8 million on to “his” physicians and $30.6 million on to sub-marketers who likely passed a portion along to “their” physicians. (Over that same period, NextHealth fraudulently billed insurers more than $700 million and received hundreds of millions of dollars in tainted proceeds.)
Because NextHealth billed federal insurers like Medicare, TRICARE, CHAMPVA, and FECA in addition to private insurers, NextHealth and its marketers were subject to the federal Anti-Kickback Statute (AKS), which prohibits the knowing and willful payment of remuneration to induce or reward referrals for drugs or services payable by federal healthcare programs. Knowing that some of the NextHealth kickbacks likely violated the AKS, Mr. Woodlee allegedly took a number of steps to conceal them:
First, he attempted to exploit the AKS’s bona fide employee exception, which allows employers to pay W2 wages to legitimate employees. From 2013 to 2014, under the auspice of an employment relationship, he and NextHealth disguised the kickbacks as his “salary” and “bonuses.”
Later, he agreed that rather than disguising the kickbacks as his wages, NextHealth would disguise the payments as wages to three of his family members, Persons A, B, and C, who NextHealth “hired” as account executives in December 2014. On multiple occasions between 2014 and 2016, Mr. Woodlee corresponded with NextHealth about their compensation.
Then, in spring 2016, Mr. Woodlee executed a new contract with NextHealth, increasing his commission on non-federal insurance prescriptions from 50 percent to 58 percent, effectively compensating himself for federal insurance prescriptions written in violation of the AKS.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Woodlee is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 35 years in federal prison.
In a separate case, NextHealth’s Andrew Hillman and Semyon Narasov pleaded guilty to money laundering conspiracy. According to court documents, the pair admitted NextHealth used marketers to funnel illegal kickbacks to physicians, attempted to conceal the payments, and submitted fraudulent claims to insurers. Mr. Hillman was sentenced to 66 months in federal prison; Mr. Narasov was sentenced to 76 months.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Food & Drug Administration Office of Criminal Investigations, the U.S. Department of Defense Office of Inspector General, DOD’s Defense Criminal Investigative Service, IRS Criminal Investigation, the U.S. Department of Justice Office of Inspector General, the U.S. Postal Inspection Service, the U.S. Office of Personnel Management Office of Inspector General, and HHS’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Chad Meacham and Andrew Wirmani are prosecuting the case.
U.S. Attorney Erin Nealy Cox has been recused from this matter. Per direction from Department of Justice ethics officials, Northern District of Texas First Assistant U.S. Attorney Prerak Shah will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.
Grapevine Child Sexual Predator Sentenced to 20 YearsRead the Press Release
A Grapevine child sexual predator was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Chansellor Ormon Hill, 26, pled guilty to one count of sexual exploitation of children in April following an investigation led by FBI’s Dallas Field Office and the Grapevine Police Department. Mr. Hill was sentenced today by U.S. District Judge Reed C. O'Connor.
“Today’s sentence should put those who seek to commit harm to innocent children on notice,” said U.S. Attorney Erin Nealy Cox. “No matter what dark shadows these pedophile predators hide in, law enforcement will shine a light on them and hold them accountable for their conduct. Our prosecutors and law enforcement partners will not rest until every victim of child sexual exploitation is rescued and defendants like Hill are behind bars.”
“The FBI and our partners at the Grapevine Police Department worked together to pursue a child predator who is accused of continuously abusing and exploiting the victim in this case,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The Grapevine community can rest assured that Mr. Hill is being held accountable for his actions. He will no longer threaten the safety of any child.”
According to a criminal complaint, Mr. Hill entered the family restroom at the City of Grapevine’s recreation center. Inside the restroom, Mr. Hill induced an 11-year old boy to take sexually explicit photos. Using his cell phone, Mr. Hill produced two images of the unclothed minor.
According to court documents, Grapevine Police interviewed Mr. Hill at the recreation center where he admitted to committing sex acts on the child multiple times over a six month period. When asked by law enforcement about the photos of the minor on his cell phone, Mr. Hill responded “I knew it was wrong . . . he’s 12 and I am 25. It’s pretty messed up.”
The FBI's Dallas Field Office and the Grapevine Police Department conducted the investigation. Assistant United States Attorney A. Saleem is prosecuting the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative 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.
Refugee Who Threatened Church Shooting Charged with Gun CrimeRead the Press Release
A man who allegedly threatened to commit a church shooting in Lubbock has been charged with a firearm offense following an investigation led by FBI Dallas’ Lubbock Resident Agency with support from ATF and HSI, announced U.S. Attorney Erin Nealy Cox.
Hieu Tran Trung, a 45-year-old North Vietnamese refugee living in Lubbock, has been charged via criminal complaint with being a felon in possession of a firearm. He made his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr., Monday afternoon.
According the complaint affidavit, a friend reached out to the FBI after Mr. Trung allegedly stated that he would “spray up” random people at his church.
Mr. Trung – who was barred from possessing firearms due to a 1998 conviction for assault on a public servant – allegedly asked the friend to “get me one of them straps,” a slang term for firearms. The friend refused.
A week later, on July 7, Mr. Trung allegedly texted the friend a photo of himself with two firearms. He later texted the friend a photo of a large amount of ammunition, along with the phrase “locked and leaded.”
Mr. Trung allegedly told the friend he felt people weren’t taking him seriously, and mentioned that he could easily kill someone and skip town. In late July, he vowed he would “show who he can be.”
A subsequent search of Mr. Trung’s residence revealed a 9 mm semiautomatic pistol stashed inside a briefcase. The gun was loaded, with one round in the chamber, nine rounds in the magazine, and two additional loaded magazines in a shoulder holster.
“I’m grateful to the citizen who reported his friend’s concerning behavior to federal authorities. His courage in speaking out may well have saved lives,” said U.S. Attorney Nealy Cox. “It’s critical that we act quickly when we get information like this and I commend our law enforcement partners who immediately intervened before the defendant could inflict real harm.”
“The defendant knew he was prohibited from possessing firearms, but still went out of his way to illegally obtain them. He also threatened to use these illegal firearms against his perceived enemies. As a result, we moved quickly to prevent a violent crime,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners are committed to detecting and assessing possible threats as they arise. We work hard to protect our communities from violent individuals and encourage the public to report any suspicious activity that poses a threat to public safety.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Trung is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations, and Texas Department of Public Safety conducted the investigation with the assistance of the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
Forest Park Anesthesiologist Sentenced to 5.5 Years in Federal PrisonRead the Press Release
An anesthesiologist at the center of the $200 million Forest Park Medical Center fraud has been sentenced to five and a half years in federal prison and ordered to pay more than $82.9 million in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Richard Ferdinand Toussaint, Jr. – who is already serving a 41-month federal prison sentence for a separate health care fraud conviction – pleaded guilty to his involvement in the Forest Park scheme in March 2018, admitting to one count of conspiracy to pay health care bribes and kickbacks and one count of illegal remuneration under the Travel Act. The 66-month sentence handed down today by U.S. District Judge Jack Zouhary will be served concurrent to the 41-month sentence.
In plea papers, Dr. Toussaint, 61, acknowledged that he teamed up with co-defendant Dr. Wade Neal Barker, a bariatric surgeon, to launch Forest Park Medical Center, a physician-owned hospital for bariatric and spinal surgery patients, in 2008. Together with Forest Park hospital manager Alan Andrew Beauchamp, Dr. Toussaint, Dr. Barker, and their colleagues conspired to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital by paying surgeons for referrals.
Most of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money,” doled as a percentage of surgeries each doctor referred to Forest Park, Dr. Toussaint admitted. Email correspondence proved he and Dr. Baker were kept up to date about how much surgeons were being paid.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly waived co-insurance, assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
Dr. Toussaint was one of 18 convicted in the scheme.
Defendants who pleaded guilty before trial include: Wade Neal Barker, Alan Andrew Beauchamp, Kelly Wade Loter, David Daesung Kim, Israel Ortiz, Andrea Kay Smith, Frank Gonzales, Jr., Andrew Jonathan Hillman, and Semyon Narosov.
Defendants convicted at trial include: Wilton McPherson “Mac” Burt, Jackson Jacob, Douglas Sung Won, Michael Bassem Rimlawi, Shawn Mark Henry, Mrugeshkumar Shah, and Iris Kathleen Forrest.
The case was investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, Mark Tindall, and Gail Hayworth are prosecuting the case.
Former Angels Employee Charged in Pitcher’s Fatal Fentanyl OverdoseRead the Press Release
An ex-employee of the Los Angeles Angels has been charged with conspiracy to distribute fentanyl in connection with the 2019 overdose death of Angels pitcher Tyler Skaggs, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Former Angels Communications Director Eric Prescott Kay, 45, was charged via criminal complaint with conspiracy to distribute a mixture containing detectable amounts of fentanyl. He was arrested in Fort Worth, Texas and made his initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton at the Mahon Federal Courthouse Friday morning.
U.S. Attorney Erin Nealy Cox and DEA Special Agent in Charge Eduardo A. Chávez of the Dallas Field Division made the announcement in a video posted online this morning: https://www.youtube.com/watch?v=nc9E_Tyy1u0.
According to the criminal complaint, filed on July 30 and unsealed Friday, the investigation began on July 1, 2019, when the Southlake Police Department received a 911 call stating that Mr. Skaggs, then just 27 years old, had been found dead in his hotel room at the Southlake Town Square Hilton. The Tarrant County Medical Examiner’s office later determined that Mr. Skaggs had a mixture of ethanol, fentanyl, and oxycodone in his system at the time of his death; it was later ascertained that but for the fentanyl, Mr. Skaggs would not have died.
Inside Mr. Skaggs’s hotel room, investigators discovered a number of pills, including a single blue pill with the markings M/30. An analysis of the pill – which closely resembled a 30-milligram oxycodone tablet – revealed it had been laced with fentanyl, a powerful synthetic opiate.
In an initial interview with law enforcement, Mr. Kay allegedly denied knowing whether Mr. Skaggs was a drug user. He claimed the last time he’d seen Mr. Skaggs was at hotel check-in on June 30. However, a search of Mr. Skaggs’s phone revealed text messages from June 30 suggesting that he had asked Mr. Kay to stop by his room with pills late that evening.
Hotel key card records indicated that Mr. Kay’s room, no. 367, was opened at 11:29 p.m., and Mr. Skaggs’s room, no. 469, was opened nine minutes later, at 11:38 p.m.
Investigators later learned that, contrary to what he’d told law enforcement the day Mr. Skaggs’s body was discovered, Mr. Kay had allegedly admitted to a colleague that he had, in fact, visited Mr. Skaggs’s room the night of his death.
In the course of their investigation, the Drug Enforcement Administration determined that Mr. Kay allegedly regularly dealt the blue M/30 pills – dubbed “blue boys” – to Mr. Skaggs and to others, dolling out the pills at the stadium where they worked.
“Tyler Skaggs’s overdose – coming, as it did, in the midst of an ascendant baseball career – should be a wakeup call: No one is immune from this deadly drug, whether sold as a powder or hidden inside an innocuous-looking tablet,” U.S. Attorney Nealy Cox said. “Suppressing the spread of fentanyl is a priority for the Department of Justice.”
“Fentanyl does not discriminate in its potential deadly consequences,” said DEA Special Agent in Charge Eduardo A. Chávez. “With the prevalence of fentanyl in many of the counterfeit prescription drugs sold on the streets, every pill taken could be your last. The Dallas DEA mourns not only with the Skaggs family, but with all families who have endured loved ones taken too soon due to a drug overdose. As with Mr. Kay’s arrest, we will continue to identify and investigate those who distribute these drugs to ensure they face justice.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Kay is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Southlake Police Department conducted the investigation with the assistance of the Tarrant County District Attorney’s Office. Assistant U.S. Attorneys Lindsey Beran and Errin Martin are prosecuting the case.
Real Estate Developer Admits to Bribing City Council MemberRead the Press Release
A Dallas real estate developer has pleaded guilty to bribery of a Dallas City Council Member, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Devin Hall, 44, pleaded guilty Thursday afternoon to conspiracy to commit bribery of an agent of local government receiving federal benefits.
“We have repeatedly pledged to tackle public corruption from every angle – prosecuting bribe payers, recipients, and facilitators,” said U.S. Attorney Nealy Cox. “In this case, yet again, we saw a real estate developer who purchased political influence, and a city council member who chose to line her pockets at the expense of taxpayers. The citizens of Dallas deserve to know that their elected leaders have only the city’s best interests at heart, and that money doesn’t interfere with government proceedings. With our partners at the FBI, we will relentlessly pursue these investigations until this sort of corruption is eradicated from City Hall.”
“Taxpayers and businesses expect the contract and development process to be fair and unbiased,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Public corruption is a top priority for the FBI. We will continue to work with our partners and the public to identify individuals and organizations who use bribes to influence government officials, and we will hold them accountable for their crimes.”
In plea papers unsealed today, Mr. Hall admitted that between 2013 and 2015, he paid “Council Member A” – who represented Dallas City Council District 7 and served as the Chair of the City of Dallas’ Housing Committee – at least $8,000 to use her political influence to further his real estate projects.
In return, the Council Member voted to allocate $650,000 in City of Dallas forgivable loans toward Mr. Hall’s Grand Park Place apartment project. She later moved to extend the project’s completion date by two years, and urged her colleagues to do the same. The Dallas City Council approved both requests.
Mr. Hall admitted he paid Council Member A in $750 to $1,000 installments, either directly in cash or via payments funneled through an intermediary. He also promised her a consulting job following her term-limited tenure on the City Council.
Both individuals knew the agreement was illegal, Mr. Hall admitted in his plea papers.
The City Council Member, now deceased, was not charged in conjunction with the above scheme, though she did plead guilty to engaging in a bribery scheme with another real estate developer before her death.
Mr. Hall now faces a statutory maximum of up to five years in federal prison. A sentencing date has not yet been set.
The Federal Bureau of Investigation’s Dallas Field Office and IRS-Criminal Investigations conducted the investigation. Assistant U.S. Attorneys Marcus Busch and Andrew Wirmani are prosecuting the case.
U.S. Attorney Erin Nealy Cox Testifies Before Senate Judiciary Subcommittee on the ConstitutionRead the Press Release
U.S. Attorney for the Northern District of Texas Erin Nealy Cox testified before the Senate Judiciary Subcommittee on the Constitution on Tuesday, Aug. 4. You can watch the full hearing -- entitled "The Right of the People Peaceably to Assemble: Protecting Free Speech by Stopping Anarchist Violence" -- here.
Below is the U.S. Attorney's prepared opening statement for the subcommittee:
Good afternoon Chairman Cruz, Ranking Member Hirono, and members of the Subcommittee. I’m Erin Nealy Cox, United States Attorney for the Northern District of Texas and Chair of the Attorney General’s Advisory Committee.
Thank you for inviting me here today to discuss the Justice Department’s efforts to counter violent anti-government extremism. For me, it’s a topic that hits close to home.
A little over a year ago, in June, a gunman clad in military gear and carrying an AR-15 style rifle opened fire on the federal courthouse in Dallas, which houses not only the federal judiciary, but also the United States Attorney’s Office and many other offices. The sudden violence ripped through the morning, just as we were arriving for work that day. Several of my prosecutors and others were caught in the midst of the attack. They resorted to hiding behind a cars in parking lot and one was pushed into the doorway by a FPS officer just as the bullets whizzed past them both.
Our office will be forever grateful to the FPS officers who engaged the shooter, ending the attack before innocent lives were lost. But to this day, we remain rattled by the gunman’s anti-government motives. He chose his location for a reason: A courthouse is one of the essential nodes within the body politics. It’s where laws are upheld, where justice is meted out. To target a courthouse, and those who work there, is to target the core of our lawful society.
And Dallas is no stranger to assaults on the rule of law. Three years prior – just blocks from the federal courthouse – a gunman, targeting law enforcement, ambushed police during a Black Lives Matter protest. Five officers were killed. Eleven others were injured, including nine officers. This was deadliest single incident for law enforcement in the United States since 9/11.
That day in July 2016 is certainly something etched in our memory. Just as the bullet holes still etched into the federal courthouse remind us daily: Anti-government fanaticism didn’t emerge with the 2020 protests.
But as our citizens have organized lawful demonstrations across this country following the tragic events in Minneapolis, anarchists have continue to exploit this lawful First Amendment activity as a shield for their violent behavior. Somehow, the notion of committing violence in the name of an anti-government dogma – be it Antifa, Boogaloo, or any of the other espoused ideologies – has been gaining traction at an alarming rate.
Unlike the lawful protestors whose demonstrations they undermine, these anti-government extremists aim to tear down the rule of law in America, not improve it. In fact, in resorting to violence, they are drowning out the voices of the protesters that this country wants to hear.
We’ve seen the anti-government violence making headlines across the nation. Just a few examples:
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In Seattle, during the anarchist occupation of the Capitol Hill area, an individual allegedly set fire to a Police Precinct. Thankfully, protesters rushed in to extinguish the blaze.
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In Portland, a would-be anarchist outside the Federal Courthouse allegedly attacked a Deputy U.S. Marshal with a large hammer, landing blows on the officer’s neck and shouting expletives and as other deputies pulled him off. On the courthouse barricade were scribbled the letters, A.C.A.B. – an acronym for “all cops are bastards.”
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In Oakland, a violent extremist allegedly used a peaceful protest as cover to murder an FPS Officer stationed at the Federal Courthouse, firing at the officer and his partner before taking off.
In response to this type of violence, Attorney General Barr directed U.S. Attorney Craig Carpenito in the District of New Jersey and me to stand up a Task Force to Combat Violent Anti-Government Extremism.Working in close collaboration with the FBI, the Task Force aims to investigate, prosecute extremists of all persuasions.
We will follow where the evidence leads us, investigating any person or group who plans to commit or commits violence in the name of anarchist ideology.
Our goal is to focus on cases where violent extremists commit federal crimes and to seek ways to disrupt these criminal acts before they harm Americans.
Of course, let me be very clear with this final point — adhering to repugnant ideologies is not a crime, nor is expressing those beliefs. The right to freedom of speech is enshrined in our First Amendment. But committing violence or inciting violence in order to further that dogma is a criminal act, and it’s one that we should all take very seriously.
Extremist violence endangers our community. It endangers law enforcement. But as importantly, it also interferes with citizens’ right to speak freely and assemble peaceably.
I look forward to taking your questions.
In addition to servinga as the chief federal law enforcement officer for the Northern District of Texas, U.S. Attorney Nealy Cox chairs the Attorney General's Advisory Committee and was recently tapped to stand up his Taskforce on Violent Anti-Government Extremists.
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NDTX Round-Up: July 20-26Read the Press Release
SENTENCING – ZODERICK JACKSON
On July 20, Zoderick Jackson, 50, was sentenced to five and a half years for possession with the intent to distribute a cocaine base. Jackson package crack cocaine into eleven small baggies. He met two confidential sources at his home in Greenville, Texas where he sold the bags of crack cocaine. The Drug Enforcement Administration and Hunt Count Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
SENTENCING – HERNAN ORDUNA
On July 22, Hernan Orduna, 25, was sentenced to 46 months for conspiracy to acquire a firearm from a licensed dealer by a false and fictitious statement. On two separate occasions, Orduna purchased a 9mm Glock and a Ruger AR556 from an Irving, Texas licensed firearms dealer by falsely answering the ATF’s Firearms Transaction Record. Following the sale of the firearms, Orduna transferred the firearms to a 17-year drug dealer. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irving Police Department conducted this investigation. Assistant U.S. Attorney Walt Junker is prosecuting the case.
SENTENCING – CARLOS ACOSTA-ENRIQUEZ
On July 24, Carlos Acosta-Enriquez, 35, was sentenced to six and a half years for conspiracy to possess with the intent to distribute cocaine. Texas Department of Public Safety troopers stopped Aocsta-Enriquez for a traffic related violation. During the stop, officers searched Aocsta-Enriquez’s vehicle and located six-kilograms of cocaine inside the car. Federal agents also searched Aocsta-Enriquez’s home and recovered $18,604.00 in drug proceeds, digital scales, and a drug ledger. The Drug Enforcement Administration conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
CHARGED – OSWALD AGUILERA-ADAME, JUAN JOSE CAMACHO, & MIGUEL ANGEL MARTINEZ-SERGURA*
On July 21, a federal grand jury indicted Oswald Aguilera-Adame, 28, Juan Jose Camacho, 35, and Migel Angel Martinez-Sergura, 53, for conspiracy to possess with the intent to distribute a controlled substance, possessing a firearm in furtherance of drug trafficking, and aiding and abetting possession with the intent to distribute. The defendants allegedly trafficked 500 or more grams of methamphetamine throughout the Northern District. During the defendants’ arrest, law enforcement seized a .380 caliber firearm and approximately $180,000 of drug proceeds. The defendants face up to life years in federal prison. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Kull.
CHARGED – DEVIONN HOLMES*
On July 21, a federal grand jury indicted Devionn Holmes, 24, for bank robbery. Holmes allegedly robbed a bank in Carrollton a by force and intimidation while in the presence of bank employees. The defendant face up to 20 years in federal prison. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joe Magliolo.
*All defendants are presumed innocent unless and until proven guilty in a court of law.
Health Care Executive Sentenced to 20 Years in TRICARE Fraud CaseRead the Press Release
The health care executive at the center of a $70 million compounded pain and scar cream fraud has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In December 2019, after six days of deliberation, a federal jury convicted John Paul Cooper, 56, of one count of conspiracy to commit health care fraud, one count of receipt of illegal kickbacks, and six counts of payment of illegal kickbacks. Mr. Cooper was sentenced Tuesday by Chief U.S. District Judge Barbara M.G. Lynn.
“This defendant siphoned millions of dollars from Defense Department’s health insurance program, with little regard for whether its patients would actually benefit from the prescriptions he pushed,” said U.S. Attorney Erin Nealy Cox. “His greed tainted their care.”
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office. "Fraudulent healthcare schemes not only expose beneficiaries to potential harm, but also waste valuable taxpayer dollars. Today's sentencing is a culmination of DCIS' efforts, along with our partners, to combat such fraud."
According to evidence presented at trial, Mr. Cooper, president and co-owner of pharmaceutical marketing group CMGRX, conspired with Richard Robert Cesario, CMGRX CEO and co-owner, to defraud TRICARE, the Defense Department’s health insurance program for military servicemembers and their families.
The evidence showed that CMGRX hired marketers to recruit more than 2,300 patients, many of whom were on active duty at Fort Hood, and incentivized them to obtain costly pain and scar cream prescriptions with their TRICARE benefits in exchange for kickbacks of $250 per prescription.
Mr. Cooper and Mr. Cesario disguised these illegal kickbacks by claiming they were payments for participation in a bogus medical study and by funneling the money through the “Freedom from Pain Foundation,” a sham charity they funded, directed, and controlled.
Evidence showed that CMGRX also paid multiple doctors, who had no prior relationship with the patients, to write their prescriptions after brief telephone calls. However, instead of giving the prescriptions to the patients, Mr. Cooper and Mr. Cesario instructed the doctors to send the signed prescriptions back to CMGRX, so that the company could send the prescriptions to partner pharmacies. In exchange for those prescription referrals, the pharmacies billed TRICARE for the drugs and kicked back a percentage of the reimbursement to CMGRX.
From September 2014 through May 2015, CMGRX caused over $124 million in claims to be billed to TRICARE, $70 million of which were paid.
Mr. Cesario – who pleaded guilty before trial to conspiracy to commit health care fraud and receipt of illegal remuneration – is awaiting sentencing. CMGRX marketers Joe Straw and Luis Rios also pleaded guilty before trial and are likewise awaiting sentencing.
The owners of CMGRX partner pharmacy Trilogy, Jeff Fuller and Andrew Baumiller, and one of their employees, Liz Valdez, pleaded guilty before trial as well. Mr. Fuller was sentenced by Judge Lynn to five years in prison. Mr. Baumiller and Ms. Valdez are awaiting sentencing. Ravi Morisetty, the owner of CMGRX partner Alpha Pharmacy, pled guilty and was sentenced to two years in prison. Mr. Morisetty did not report to the Bureau of Prisons to serve his sentence and remains a fugitive.
Two doctors associated with CMGRX, Walter Simmons and William Elder-Quintana, are scheduled to be retried later this year, after the jury failed to reach unanimous verdicts on counts against them.
The Defense Criminal Investigative Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Douglas Brasher and Renee Hunter are prosecuting the case.
Garland Chiropractic Owners Sentenced to More Than Three Years for Tax FraudRead the Press Release
Two owners of a Garland chiropractic clinic were sentenced yesterday to 37 months in federal prison and ordered to repay approximately $350,000 for tax fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tammy Boulyaphonh, 51, was convicted by a federal jury on all five counts against her, including one count of conspiring to defraud the United States by underreporting income and four counts of filings false tax returns in February. Her husband, 59-year-old Khamlor Boulyaphonh had pleaded guilty to similar counts days before trial. The defendants were sentenced yesterday before U.S. District Judge Jane J. Boyle.
“This sentencing is a reminder that there are consequences to criminal tax evasion that include going to prison, being branded a convicted felon for the rest of their lives, and paying back all of the taxes owed,” said Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation Dallas Field Office. “This should resonate with those contemplating similar fraudulent actions.”
According to court documents, Mr. and Ms. Boulyaphonh owned and operated chiropractic clinics in Dallas-Fort Worth that provided medical care principally to patients injured in motor vehicle accidents. The majority of the couples’ business income was derived from payments received from insurance companies and payments received from attorneys who had received insurance settlement payments on behalf of their patients.
Ms. Boulyaphonh directed multiple personal injury attorneys to make checks out to her and her husband personally, then diverted the attorney payments to the couple’s personal bank accounts. Mr. and Ms. Boulyaphonh concealed the diverted income from their tax preparer and provided him with false documents to advance the scheme.
At trial, prosecutors established that the couple had paid less than $4,000 total tax on gross receipts of more than $2 million, all while owning two homes, two luxury vehicles, $1 million life insurance policies, and luxury goods.
Between 2010 and 2013, the couple concealed more than $1.2 million in business income from the IRS.
IRS-Criminal Investigation and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Douglas Brasher is prosecuting the case.
Dallas Police Officer Charged with Child Sexual ExploitationRead the Press Release
A Dallas Police Officer has been charged with uploading sexually explicit images of children using the City of Dallas’ employee internet, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old senior corporal assigned to DPD’s Auto Theft Unit, was charged via criminal complaint with one count of transportation of child pornography.
“Law enforcement officers take an oath to protect and serve,” said U.S. Attorney Erin Nealy Cox. “This defendant allegedly undermined that vow, preying upon our most vulnerable. The Department of Justice will not tolerate the exploitation of children – especially by our public servants.”
According to court documents, Mr. Collins allegedly uploaded sexually explicit photos of prepubescent girls to his various Google accounts via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department. In the report, they noted that one of the profiles included a photo of a man in a police uniform, later determined to be Mr. Collins.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
In an interview with federal agents, Mr. Collins allegedly admitted to accessing the Google accounts and saving child pornography.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Collins – who has been placed on administrative leave by the police department pending the results of an internal investigation – is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Man Pleads Guilty in Scheme to Steal Debit CardsRead the Press Release
A U.S. citizen who formerly resided in the Dominican Republic has pleaded guilty to his role in a scheme to steal debit cards from bank customers, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Gregory Jean-Louis, 46, pleaded guilty on Wednesday to conspiracy to commit bank fraud before U.S. Magistrate Judge Jeffrey L. Cureton in Fort Worth.
Mr. Jean-Louis, a U.S. citizen living in the Dominican Republic at the time of his crime, was charged via criminal complaint in November 2019. He was removed from the Dominican Republic to the United States in May 2020. A federal grand jury in Texas returned an indictment against him a week after his arrest.
According to plea papers, Mr. Jean-Louis admits that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.
Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” – reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses, he admits.
He then directed coconspirators to steal the debt cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them.
Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania. Much of the money was wired to Mr. Jean-Louis.
The defendant now faces up to 30 years in federal prison. Sentencing has been set for Nov. 20 before U.S. District Judge Reed O’Connor in Fort Worth.
The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
NDTX Round-Up: July 13-19Read the Press Release
GUILTY PLEA – AMBER RENEE PRICE
On July 14, Amber Renee Price, 33, pled guilty to possession of stolen mail. While an employee of the United States Postal Service (USPS), Price admitted to have in her possession a gift card which had been stolen from a mailbox. Price admitted to stealing serval gift cards and cash during her employment with the USPS. She faces up to five years in federal prison for the crimes. The United States Postal Service – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Jennifer Bray is prosecuting the case.
SENTENCING – MIKAI WILLIAMS
On July 16, Mikai Williams, 34, was sentenced to 41 months in federal prison for theft of a firearm from a licensed dealer. Williams entered Shoot Smart in Grand Prairie, Texas, a federally licensed firearms dealer, to practice shooting on the indoor firing range. While a store clerk was attending to other customers, Williams pocketed a 9mm handgun before exiting the store without purchasing the firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case.
SENTENCING – JEREMY ALLAN ISBELL
On July 17, Jeremy Allan Isbell, 39, was sentenced to 63 months in federal prison for possession of a visual depiction of a minor engaged in sexually explicit conduct. While at his home in Jacksboro, Texas, Isbell used his cell phone to communicate with another user via Kik, a messaging app popular among teenagers, to obtain child pornography. Isbell admitted to authorities that the images stored on his Samsung cell phone were of a minor female performing sex acts. The Federal Bureau of Investigation, Jacksboro Police Department, and Wise County District Attorney conducted the investigation. Assistant U.S. Attorney A. Saleem is prosecuting the case.
U.S. Attorney Erin Nealy Cox Names Prerak Shah First AssistantRead the Press Release
United States Attorney Erin Nealy Cox has appointed Prerak Shah as First Assistant United States Attorney, the office’s second in command, she announced today.
“Prerak Shah is a great addition to the Northern District of Texas and I am confident he will do a wonderful job working with our team, our law enforcement partners, and our judges,” said U.S. Attorney Erin Nealy Cox. “We are glad that he has returned to Dallas and know his extraordinary depth of experience – inside both federal and state government as well as the private sector – will no doubt inform our strategic approach to Justice Department priorities moving forward.”
Mr. Shah’s first day with the U.S. Attorney’s Office for the Northern District of Texas was Monday, July 13.
Prior to joining the office, Mr. Shah served in various senior leadership positions at the U.S. Department of Justice, including as a Deputy Associate Attorney General in the office overseeing the civil and criminal work of the Antitrust, Civil, Civil Rights, Environment & Natural Resources, and Tax Divisions. He also previously served as the Deputy Assistant Attorney General directly supervising the approximately 75 trial lawyers of the Department's Natural Resources Section in investigations and trials across the country.
Before joining the Justice Department, Mr. Shah served as an attorney in the Dallas office of Gibson, Dunn & Crutcher LLP, as Senior Counsel to the Attorney General of Texas, as an Assistant Solicitor General of Texas, and Chief of Staff and Chief Counsel to U.S. Senator Ted Cruz of Texas. He graduated with honors from the University of Chicago Law School and clerked for the Hon. Jerry E. Smith of the U.S. Court of Appeals for the Fifth Circuit.
"Pre is an extraordinarily talented attorney and was an invaluable member of the Associate's Office. The Department is grateful for his past work and looks forward to everything he will accomplish in the Northern District of Texas,” said Principal Deputy Associate Attorney General Claire Murray.
“Pre was a tremendous Deputy Assistant Attorney General, ably overseeing some of the most controversial litigation in the Environment Division at Main Justice. My loss is definitely USA Nealy Cox's and Dallas's gain,” echoed Assistant Attorney General for the Environment and Natural Resources Division Jeff Clark.
Mr. Shah took the reins from Northern District of Texas Criminal Chief Steve Fahey, who served as Acting FAUSA from January to July.
“Steve’s extraordinary contributions during this challenging time have made it possible to continue to advance a number of mission-critical objectives while facing the unprecedented challenges presented by the pandemic,” U.S. Attorney Nealy Cox wrote in an office-wide email. “I have felt so lucky to be able to call upon his wise counsel.”
Mr. Fahey will return to his role as Criminal Chief, where he’ll focus on a number of important strategic objectives facing the Northern District of Texas’ Criminal Division.
Prior to this, U.S. Attorney Nealy Cox's first FAUSA was Tanya Pierce, who had worked as a Northern District of Texas AUSA for 18 years and then served the Drug Enforcement Administration as Chief of Staff and Division Counsel for 11 years. Ms. Pierce retired at the end of 2019 after 30 years in federal service.
Established in 1879, the United States Attorney’s Office for the Northern District of Texas has prospective responsibility for 96,000 square miles of Texas, a population of approximately eight million. The office is charged with vigorously enforcing the laws and defending the interests of the United States, and with promoting a peaceful and lawful community.
NDTX Round-Up: July 6-12Read the Press Release
SENTENCING – BRIAN MODESTER
On July 6, Brian Modester, 36, was sentenced to 3 years in federal prison for possession of a firearm in furtherance of drug trafficking. Dallas Police conducted a traffic stop of a vehicle in which Modester was riding as a passenger. Police searched the vehicle and discovered Modester with $12,348 in drug proceeds. Officers also searched the residence that Modester had left and recovered a loaded firearm, multiple bags of marijuana, and drug paraphernalia. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – LARRY DONELL BOOKER
On July 7, Larry Donell Booker, 60, pled guilty to 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 Hydrodone in exchange for cash. Booker faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuting this case.
GUILTY PLEA – NOLBERTO VASQUEZ
On July 7, Nolberto Vasquez, 30, pled guilty to conspiracy to commit bank fraud. Vasquez executed a scheme to fraudulently obtain credit cards and lines of credit from financial institutions using victims' personal identifying information to open credit cards at retain stores which would then be used to make unauthorized purchases. Vasquez faces up to 30 years in federal prison for his crimes. This case was investigated by the United States Secrete Service. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – TEMIOPE AMINAT FOLORUNSHO
On July 7, Temitope Aminat Folorunsho, 33, pled guilty to conspiracy to commit wire fraud, two counts of wire fraud, conspiracy to commit money laundering, two counts of laundering monetary instruments, and two counts of use of a false passport. Folorunsho and her co-conspirators used email phishing scams, social engineering, and spoofing email addresses in order to cause victims to wire and electronically transfer funds to fraudulently opened bank accounts. Prior to Folorunsho’s guilty plea, other co-defendants pled guilty as well, with the most recent being Opeyemi Abidemi Adeoso in June 2020 who pled guility to 33 counts. This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and Department of State’s Diplomatic Security Service. Assistant U.S. Attorney Tiffany Eggers is prosecuting this case.
SENTENCING – ARMANDO SILVA
On July 9, Armando Silva, 26, was sentenced to 105 months in federal prison for possession with the intent to distribute methamphetamine. As Samson Park Police approached Silva’s vehicle during a traffic offense, officers noticed a marijuana odor emitting from the car. Officers conducted a search of vehicle and recovered a handgun, Xanax pills, and over one-ounce of methamphetamine. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Levi Thomas is prosecuting this case.
Notorious Amarillo Crack Cocaine Dealer Sentenced to 15+ YearsRead the Press Release
A notorious Amarillo crack cocaine dealer was sentenced today to 188 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Earnest Tywane Drone, 39, pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base in March following his arrest by the Amarillo Project Safe Neighborhood (PSN) Task Force.
Launched in January 2019, PSN Amarillo Task Force identified a 7.5 square mile block in the San Jacinto and North Heights neighborhoods of Amarillo long plagued by gang activity, drug traffickers, and violent crime as the targeted enforcement area for PSN Amarillo Task Force operations.
Mr. Drone, who lived in the North Heights neighborhood of Amarillo, was widely known in the community as a crack cocaine dealer who used his residence as a distribution point for his drug trafficking operations. In May 2019, Mr. Drone sold crack cocaine to a confidential government source at his residence. Days later, law enforcement executed search warrants at two crack houses, located in the heart of the North Heights neighborhood. During the PSN Task Force raid, Mr. Drone, along with three others, were arrested.
“The Department of Justice will never tolerate drug trafficking,” said U.S. Attorney Erin Nealy Cox. “Today’s sentencing highlights the dedicated work of the Amarillo Project Safe Neighborhood Task Force to bring one of Amarillo’s most ruthless drug dealers to justice.”
Drone’s high-profile prosecution is just the latest success for the PSN Amarillo Task Force. The initiative saw a 13 percent decrease in violent crime inside the targeted San Jacinto/North Heights neighborhood of Amarillo; this trend continued into 2020, dropping an additional 3 percentage points for a total violent crime reduction of 16 percent.
Additionally, PSN Amarillo experienced a 30 percent decrease in robberies and a 46 percent reduction in aggravated robberies in the targeted enforcement area during the first year of operations.
The Amarillo PSN was launched as the second PSN in the Northern District of Texas and other PSN hotspots include Dallas, Fort Worth and Lubbock. More information on PSN Amarillo can be found here.
The Drug Enforcement Administration, Homeland Security Investigations, United States Marshals Service, Randall County Sheriff’s Office, Potter County Sherriff’s Office, and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto are prosecuting the case.
Fort Worth Company Owner Pleads Guilty to Lying to Defense DepartmentRead the Press Release
A Fort Worth man has been sentenced to more than four-and-a-half years in federal prison for lying to the U.S. Department of Defense about the metal used inside his company’s aircraft parts, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Richard Ross Hyde, the 64-year-old owner of Vista Manufacturing Company, pleaded guilty in August 2019 to making a false claim against the United States. He was sentenced Thursday to 55 months in federal prison by U.S. District Judge Mark Pittman.
In his plea papers, Mr. Hyde admits that he invoiced the Navy for aircraft components which DOD later discovered were constructed from a different metal than the one his company said it would use.
On Aug. 18, 2014, Vista Manufacturing submitted a bid to the government to provide critical parts for a Naval Air Warfare Center aircraft, Mr. Hyde told the court. In the $12,897.50 bid, the company included a diagram noting measurements, specifications, and descriptions of the materials required for production – notably, aluminum alloy 2024.
Six days later, the government accepted Vista’s bid, and Mr. Hyde began seeking out manufacturers for the 22 wiper back retainers included in the bid.
He found a company that offered to manufacture the parts with a different aluminum alloy, 6061, for $8,492. Despite the fact that Vista’s contract with the Navy required them to use aluminum alloy 2024, Mr. Hyde admits he accepted the offer, and allowed the part to be manufactured with aluminum alloy 6061.
Mr. Hyde admits that on Jan. 21, 2015, he had the completed parts – made with the 6061 alloy – delivered to a Defense Logistics Agency distribution facility. He invoiced the DOD’s Defense Financing and Accounting Services for $12,897.50 and received the full payment on Feb. 4, 2015.
A subsequent examination of the parts he delivered revealed that the metal used to manufacture the wiper back retainers did not match the diagram on Vista’s bid; testing revealed that Mr. Hyde’s company had substituted the 6061 alloy for the 2024 alloy – rendering his bid false.
The U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; the Defense Logistics Agency; the Federal Bureau of Investigation; the Army Criminal Investigative Division’s Major Procurement Fraud Unit; the Air Force Office of Special Investigations; the Naval Criminal Investigative Service; and the Defense Contract Management Agency conducted the investigation. Assistant U.S. Attorney John Bradford prosecuted the case.
Four Indicted for Murder-for-Hire Targeting DEA Task Force OfficerRead the Press Release
A four-person cabal has been charged with plotting a hit on a DEA task force officer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Manuel Garcia Gomez, 22, Jorge Humberto Velazco Larios, 27, Eva Denisse Gomez Garcia, 38, and Alicia Yuritzi Juarez Martinez, 31, for conspiracy to use interstate commerce in the commission of murder-for-hire.
Mr. Gomez and Mr. Larios have been arrested and will make their initial appearances before U.S. Magistrate Judge Renee Toliver this afternoon at 2 p.m. Ms. Garcia and Ms. Martinez remain fugitives and are believed to be in Mexico.
“The Justice Department will not stand for retaliatory violence against officers and agents,” said U.S. Attorney Erin Nealy Cox. “These defendants were plotting to murder a federal task force officer – a man who routinely risks his life to combat the scourge of drugs in our community. We are grateful to our partners at the DEA and FBI who worked tirelessly to keep the officer safe and help bring his would-be killers to justice.”
According to the indictment, unsealed today, Mr. Gomez – who was behind bars at Johnson County Jail on a methamphetamine charge – allegedly told another individual at the jail he wanted to “off” the DEA agent assigned to his case. He set the budget at $20,000: $5,000 up front and $15,000 following the hit.
In a subsequent phone call with an individual outside the jail, Mr. Gomez confirmed he wanted the agent murdered.
Mr. Gomez then called his girlfriend, Ms. Martinez, and his sister, Ms. Garcia, to arrange for delivery of the murder-for-hire fee. He advised them that the co-defendant in his drug case, Mr. Larios, would also contribute to the up-front payment.
Meanwhile, Mr. Larios, also behind bars, called an unindicted co-conspirator and asked him to deliver money to a workshop “so we can take care of something.”
On June 11, the unindicted co-conspirator, referred to in court documents by the nickname “Roberto,” made a $3,000 “down payment” for the murder of the agent. Five days later, he made an additional $2,000 payment on behalf of Mr. Gomez and Mr. Larios.
Mr. Gomez once again called his contact outside the jail. He described the DEA agent he wanted killed, then instructed the individual to call Ms. Martinez and Ms. Garcia, who he said had documents that could help the hit man figure out the name of the target. Mr. Gomez said the women were “badasses” who “know everything that is going on.”
Shortly thereafter, Ms. Garcia received a photo of DEA task force officer “T.H.” via the messaging app, WhatsApp. The following day, she flashed the image during a jailhouse video call with Mr. Gomez.
“Yes, that’s him,” Mr. Gomez told Ms. Garcia, smiling.
“Drug trafficking is inherently violent and traffickers will stop at nothing to protect their profits and their lifestyle,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “DEA agents and task force officers constantly put themselves in harm’s way to ensure these individuals are brought to justice. We appreciate our federal partners’ swift efforts to bring accountability to their nefarious intentions.”
"The Dallas Violent Crime Task Force is dedicated to protecting our citizens. This includes ensuring the safety of our law enforcement partners," said FBI Dallas Special Agent in Charge Matthew DeSarno. "The defendants wanted to harm a DEA task force officer and that is unacceptable. Fortunately, we were able to prevent a dangerous act from occurring and successfully apprehend a group of violent criminals."
An indictment 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, these defendants face up to 10 years in federal prison. (Had the hit been carried out as planned, they would have faced a possible death sentence or life imprisonment.)
The Federal Bureau of Investigation’s Dallas Field Office, Violent Crime Task Force, conducted the investigation in close collaboration with the Drug Enforcement Administrations’ Dallas Field Division. The Johnson County Sheriff’s Office, U.S. Marshals Service, and U.S. Customs & Border Protection assisted in the investigation. Assistant U.S. Attorney Rick Calvert is handling the prosecution.
NDTX Round-Up June 29 - July 6Read the Press Release
GUILITY PLEA – FLOYD ALLEN HAWKINS
On June, 30, Floyd Allen Hawkins, 30, pled guilty to production of child pornography. In March, 2019, Yahoo submitted cybertips to the National Center for Missing and Exploited Children concerning several images of child pornography uploaded by Hawkins. Dallas Police Department executed a search warrant on Hawkins’ home where he was questioned about the images. Hawkins admitted to producing multiple images of child pornography of a two-year-old girl. Hawkins faces up to 30 years in federal prison for his crimes. This case was investigated by Homeland Security Investigations and Dallas Police Department. Assistant U.S. Attorney Camille Sparks is prosecuting this case.
GUILTY PLEA – ERIC JACKSON
On June 30, Eric Jackson, 34, pled guilty to transportation of stolen goods or monies in interstate commerce. Jackson and his co-conspirators travelled around the United States to commit burglaries of cash safes. The group target grocery stores, check-cashing locations, and businesses with a significant amount of cash on hand. The safe crew received alarm codes from an insider at a national alarm company to aid in avoiding detection. Jackson and his co-conspirators caused losses between $250,000 and $1,500,000. Jackson faces up to 10 years in federal custody for his crimes. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ryan Raybould is prosecuting this case.
SENTENCING – RICKY CARDENAS
On June 30, Ricky Cardenas, 41, was sentenced to 165 months in federal prison for possession with the intent to distribute methamphetamine. Investigators with Parker County Sheriff’s Office received information that Cardenas was distributing methamphetamine at a local hotel in Weatherford, Texas. The same day, Cardenas left the hotel for a nearby gas station where he engaged in drug transaction with several individuals. After leaving the gas station, Cardenas was stopped by law enforcement and found with methamphetamine in his car. This case was investigated by the Drug Enforcement Administration and Parker County Sheriff’s Office. Assistant U.S. Attorney Nancy Larson is prosecuting this case.
GUILTY PLEA – KENNETH JERNARD NARGO
On June 30, Kenneth Jernard Nargo, 22, pled guilty two counts of interference with commerce by robbery and two counts of using, brandishing, and discharging a firearm in furtherance of crime of violence. Nargo and his c0-consrpators robbed multiple pawn shops in north Texas. Once inside the pawn shops, the group discharged a firearm to scare customers and employees so they would not interfere with the robberies. During two robberies in Duncanville, Texas and Dallas, Texas, Nargo admitted to jumping over the counter and stealing a cash register drawer and jewelry. This case was investigated by the Federal Bureau of Investigation, Dallas Police Department, DeSoto Police Department, and Duncanville Police Department. Assistant U.S. Attorney Walt Junker is prosecuting this case.
SETENCING – SHARROCCA BLOCKER
On July 6, Sharrocca Blocker, 41, was sentenced to 2 years in federal prison for aiding and assisting the preparation and presentation of a false and fraudulent return. Blocker prepared a tax return on behalf of another taxpayer in which she fraudulently claimed a net profit from running a call center business the taxpayer did not owned or operate. The false tax return made Blocker’s client eligible for the earned income tax credit. This case was investigated by the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney Doug Allen is prosecuting this case.
Molotov Cocktail Thrower Sentenced to 10 Years in Prison After Setting Neighbor’s House on FireRead the Press Release
A Fort Worth man who set fire to his neighbor’s house using a homemade Molotov cocktail has been sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mearvin Eugene Hamilton, 53, was charged via criminal complaint with possession of an unregistered destructive device, a Molotov cocktail, in August 2019, and indicted on the same charge in January 2020. He pleaded guilty in February 2020 and was sentenced Monday by U.S. District Judge Reed C. O’Connor, who made an upward departure from the sentencing guidelines due to the circumstances of the offense.
In plea papers, Mr. Hamilton admitted he had constructed an incendiary device by filling a 12-ounce beer bottle with an ignitable liquid and attaching a cloth wick. He acknowledged the homemade Molotov cocktail was a destructive device not registered in the National Firearms Registration and Transfer Record.
According to information provided to the Court, the investigation began on July 12, 2019 when a passerby told police he’d witnessed a man throw a lit incendiary device at a home in Fort Worth, setting the home ablaze. Four people inside – two adults and two children – escaped without physical injury.
Fort Worth Fire Department Arson and ATF investigators responded to the scene and spotted Mr. Hamilton sitting on the porch of the home next door, next to containers of gasoline and lighter fluid. Mr. Hamilton – who claimed he feared the individuals next door were trying to kill him – later waived his Miranda rights and admitted to investigators that he “started throwing bottles of gas as the house” in order to “set it on fire.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Fort Worth Fire Department’s Arson Investigations Unit and the Fort Worth Police Department. Assistant U.S. Attorneys Rob Boudreau and Frank Gatto prosecuted the case.
NDTX Roundup: June 21-28Read the Press Release
GUILTY PLEA – TRAVON WILSON
On June 23, Travon Wilson, 32, pled guilty to transportation of stolen money, securities, and goods in interstate commerce. Wilson and his co-conspirators travelled around the United States to commit burglaries of cash safes. The group target grocery stores, check-cashing locations, and businesses with a significant amount of cash on hand. In sum, Wilson and his c0-conspiratiors caused losses greater than $550,000. Wilson faces up to 10 years in federal custody for his crimes. This case was investigated by the Federal Bureau of Investigation and is prosecuted by Assistant U.S. Attorney Ryan Raybould.
GUILTY PLEA – CLEMENTE CASTILLO ZAMUDIO
On June 23, Clemente Castillo Zamudio, 28, pled guilty to possession of firearm by an illegal alien. Zamudio was driving alone and pulled over by police. Inside his truck officers located a .45 caliber pistol. At the time of the traffick stop, Zamudio was an illegal alien in the United States under a valid removal order. Zamudio faces up to 10 years in federal custody for his crimes. This case was investigated by Immigration and Customs Enforcement and Homeland Security Investigations and is prosecuted by Assistant U.S. Attorney Walt Junker.
GUILTY PLEA – ANTONIO JAVON LANG
On June 25, Antonio Javon Lang, 38, pled guilty to felon in possession of a firearm. Lang was stopped by Desoto, Texas Police Department for speeding. During the traffic stop, Lang could not produce his driver’s license. Officers conducted a search of Lang where they found approximately $9,000 on his person and $48,000 in a bag located in his vehicle. Additionally, officers recovered a .45 caliber handgun, marijuana, and oxycodone pills. Lang faces up to 10 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration and is prosecuted by Assistant U.S. Attorney Phelesa Guy.
GUILTY PLEA – GUILLERMO O’BRIEN
On June 25, Guillermo O’Brien, 19, pled guilty to possession with the intent to distribute cocaine. At a Dallas, Texas gas station, O’Brien took delivery of 20 kilograms of cocaine. After O’Brien left the gas station a Dallas County Sheriff deputy initiated a traffic stop. Once the deputy had O’Brien pulled over, he fled the scene at a high speed striking a law enforcement vehicle. Deputies counted to pursue O’Brien until he exited the vehicle and ran on foot into a wooded area until his surrender to law enforcement. O’Brien faces up 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration and is prosecuted by Assistant U.S. Attorney Rachel Jones.
SENTENCING – DAMORION DENTE ROBERTSON
On June 25, Damorion Dente Robertson, 36, was sentenced to 92 months in federal prison for possession of a firearm by a felon and possession with intent to distribute marijuana. Robertson did knowingly possess a stolen firearm following a conviction of a felony offense. Additionally, Robertson admits he unlawfully possessed marijuana. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and Dallas Police Department. Assistant U.S. Attorney John Boyle is prosecuting this case.
SENTENCING – JOSE SANCHEZ
On June 25, Jose Sanchez, 36, was sentenced to 151 months in federal prison for money laundering charges related to the possession and distribution of cocaine. Sanchez conspired with others to distribute 14 kilograms of cocaine that was sent from Mexico to Dallas, TX and valued at $378,000. Sanchez admitted to collecting drug proceeds and then sending it back to Mexico. This case was investigated by the Drug Enforcement Administration and Dallas Police Department. Assistant U.S. Attorneys George Leal and Phelesa Guy are prosecuting this case.
Arlington Doctor Charged with Drug Distribution Conspiracy, FraudRead the Press Release
A federal grand jury has indicted three Arlington healthcare professionals for drug crimes and fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Clinton Battle, an Arlington physician, and Donna Green, his nurse practitioner, have been charged with conspiracy to distribute controlled substances. Dr. Battle and his medical assistant, Yajaira Lopez, have also been charged with conspiracy to commit mail fraud. His current practice, “Arlington Occupational & Medical Clinic,” is located on East Abram Street in Arlington.
According to the indictment, Dr. Battle, 67, routinely issued prescriptions for controlled substances – including hydrocodone, codeine, tramadol, Xanax, phentermine, and other controlled substances – allegedly without conducting a proper medical examination of his patients, knowing that the drugs would likely be diverted for illicit distribution. At times, Dr. Battle allegedly issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted.
In return for these phony prescriptions, Dr. Battle allegedly received multiple forms of remuneration – including illicit drugs.
Dr. Battle also allegedly allowed Ms. Green to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, knowing that Ms. Green was not legally authorized to issue such prescriptions.
Meanwhile, Dr. Battle and Ms. Lopez allegedly worked together to submit falsified claims to health insurers, including the Texas Workers’ Compensation system. For example, they allegedly “up-coded” claims for medical procedures, billing for higher reimbursement levels than were authorized based on the medical service provided.
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, Dr. Battle faces up to 15 years in federal prison. Ms. Green and Ms. Lopez face up to 10 and 5 years, respectively.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service, the IRS, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case.
Amarillo-Area Child Predator Sentenced to LifeRead the Press Release
A former sheriff’s deputy who preyed on children at his church has been sentenced to life in federal prison, announced U.S. Attorney Erin Nealy Cox.
Davin Seth Waters, 26, a former deputy with Parmer County, Texas Sheriff’s Office, was convicted in November 2019 for transportation of minors with intent to engage in criminal sexual activity.
“This life sentence confirms the important message that exploiting children in any form will not be tolerated,” said U.S. Attorney Nealy Cox. “While this sentence will not repair the pain and damage done to the victims, it will ensure that Mr. Waters will never have the opportunity to prey upon children of our community again.”
"Today's life sentence demonstrates the FBI's commitment to holding sexual predators accountable for their crimes and removes a dangerous threat from our community," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "We will continue working with our partners to ensure that children are protected from abuse and exploitation."
During a two hour sentencing on Thursday, the court heard how Mr. Waters lured minor victims into engaging in sex acts by leveraging positions of power and trust as a sheriff’s deputy, childcare volunteer, and Tae Kwon Do instructor. Many of Mr. Waters’ victims that he sexually abused were “afraid” of him because he was “big” and thought he might “hurt” them, according to court documents.
Authorities began investigating Mr. Waters following a report from a church member at Frist Baptist Church Texico, New Mexico that a fellow member, identified as Mr. Waters, had sexually abused a child. Mr. Waters who served in the children’s ministry as a volunteer, admitted to unlawfully touching a minor 8-year-old child on multiple occasions while in his capacity as a volunteer at the church.
Mr. Waters resided in Farwell, Texas and owned Tae Kwon Do (TKD) Studio in Bovina, Texas where he instructed many young students. Mr. Waters admitted that he engaged in illicit sexual conduct at his studio with a 13-year-old minor and a TKD student between the ages of 9 and 10-years-old.
According to court documents, Mr. Waters also drove two minors from New Mexico to the Farwell, Texas to spend the night. At his home, Mr. Waters preformed sexual acts on the 11-year-old and 10-year-old while also after giving the 10-year-old pills to induce unconsciousness.
Through the course of the investigation, agents determined that Mr. Waters sexually exploited and abused seven children in the greater Amarillo-area.
The FBI's Dallas Field Office, the Texas Rangers, and Curry County, New Mexico Sheriff’s Office conducted the investigation. Assistant United States Attorney Sean Taylor prosecuted the case. United States District Judge Matthew J. Kacsmaryk handed down the sentence.
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.
NDTX Roundup: June 13-20Read the Press Release
GUILTY PLEA – DALTON HARRIS
On June 16, Dalton Harris, 21, pled guilty to making a false statement to a firearms dealer. Harris visited a local firearms deal to purchase a Ruger AR-556 rifle. To purchase the rifle, Harris made fictitious statements intended to deceive the firearms dealer into believing that he was the actual transferee or buyer of the firearm. Harris faces up to 57 months in federal custody for his crimes. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and is prosecuted by Assistant U.S. Attorney Rebekah Ricketts.
GUILTY PLEA – JESSE KLU
On June 16, Jesse Klu, 33, pled guilty to possession with intent to use unlawfully five or more false identification documents. During a search warrant executed at Klu’s residence, agents discovered multiple passports and driver’s licenses all displaying Klu’s photograph, each counterfeit and not lawfully issued by the purported government entity. Klu admits to using the counterfeit identification to establish accounts at United States financial institutions. He faces up to 5 years in federal custody for his crimes. This case was investigated by Diplomatic Security Services and Department of Homeland Security and is prosecuted by Assistant U.S. Attorney Gregory Martin.
GUILTY PLEA – MONEE WILLIAMS
On June 18, Monee Williams, 34, pled guilty to conspiracy to transport stolen money, securities, and goods in interstate commerce. Williams worked at a national alarm company where she had access to the alarm codes of customers. Williams unlawfully provided the alarm codes of small businesses her co-conspirators in exchange for money. Her co-conspirators used the alarm codes to break into the businesses to steal cash and other items of value. The losses caused by the burglaries was valued at more than $550,000. Williams faces up to 5 years in federal custody for her crimes. This case was investigated by the Federal Bureau of Investigation and is prosecuted by Assistant U.S. Attorney Ryan Raybould.
GUILTY PLEA – GEOVANNI AARON LUNA
On June 18, Geovanni Aaron Luna, 22, pled guilty to 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. Luna faces up to 10 years in federal custody for his crimes. 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 – TIFFANY LANE
On June 18, Tiffany Lane, 44, pled guilty to destruction of mail. While an employee of the United States Postal Services, Lane began stealing mail by targeting credit cards from customers on the routes she worked. Lane admitted to providing the credit cards to another unauthorized individual after stealing them from her mail route. Lane faces up to 5 years in federal custody for her crimes. This case was investigated by the United States Postal Service Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Jennifer Bray.
U.S. Attorney’s Office Shuts Down Website Promoting Prostitution and Sex Trafficking, Indicts OwnerRead the Press Release
The website CityXGuide.com — a leading source of online advertisements for prostitution and sex trafficking that users described as “taking over from where Backpage left off” — has been seized and its owner charged in a 28-count federal indictment, announced United States Attorney for the Northern District of Texas Erin Nealy Cox.
Wilhan Martono, 46, was indicted on June 2 on one count of promotion of prostitution and reckless disregard of sex trafficking, one count of interstate racketeering conspiracy (facilitating prostitution), nine counts of interstate transportation in aid of racketeering (facilitating prostitution), and 17 counts of money laundering. He was arrested on June 17 in Fremont, California by Homeland Security Investigations and the United States Secret Service.
Shortly after the defendant’s arrest, CityXGuide was replaced with a splash page notifying users that the website had been seized by the U.S. Department of Homeland Security pursuant to a warrant.
According to the indictment, Mr. Martono allegedly netted more than $21 million off a suite of illicit websites promoting prostitution and sex trafficking. He allegedly registered the domain names for several of the sites just one day after the FBI shut down Backpage.com, then the internet’s leading source of prostitution and sex trafficking advertisements.
Despite Terms of Use purportedly forbidding the advertisement of illegal sexual services, CityXGuide and its affiliated websites (Backpage.co, CAPleasures.com, and BodyRubShop.com, among others) allegedly allowed brothels, pimps, and prostitutes to post hundreds of thousands of advertisements for sexual services, which users could then filter by geography and preference.
In correspondence with Mr. Martono, one of his CityXGuide advertisers noted that the website was “taking over from where Backpage left off.”
CityXGuide and its companion websites allegedly allowed advertisers to select from a pre-populated list of “intimate activities,” then add nude photographs, descriptions, work hours, methods of payment, and contact information for the women being advertised. In order to secure premium placement, the websites offered paid “upgrades,” which could be purchased in Bitcoin or in exchange for gift cards from Walmart, Best Buy, Lowe’s, Amazon, and other retailers. Mr. Martono allegedly used CardCash, a third party gift card reseller, to exchange these gift cards for U.S. currency.
Mr. Martono allegedly took steps to conceal his online activity by routing website traffic through an IP address in Europe, using a VPN to mask his IP address while conducting CardCash transactions, and funneling his proceeds through a network of business and personal bank accounts. (At the time of Mr. Martono’s arrest, the Department of Homeland Security seized millions of dollars from accounts controlled by Mr. Martono.)
CityXGuide, which served clients across the globe, included a list of 14 “Favorite Cities,” including Dallas, Los Angeles, San Francisco, Las Vegas, Chicago, Atlanta, Miami, and Boston.
Law enforcement has identified numerous minor victims in CityXGuide advertisements, including a 13-year-old Jane Doe recovered in North Texas in November 2019.
“As soon as DOJ shut down one despicable site, another popped up to take its place,” said U.S. Attorney Erin Nealy Cox. “Like the owners of Backpage, this defendant made millions facilitating the online exploitation of women and children. The Justice Department will not rest until these sites are eliminated and their owners held accountable for their crimes.”
“This case is a harsh reminder of the ruthlessness of human traffickers and lengths to which they go, including victimizing women and children, to make a profit,” said Ryan L. Spradlin, Special Agent in Charge of Homeland Security Investigations’ Dallas Field Office. “HSI maintains its unwavering commitment to investigate these heinous crimes, rescue victims, and prosecute the offenders to the fullest extent of the law.”
“The Secret Service remains committed to investigating and pursuing those responsible for cyber-enabled financial crimes. Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same,” said Secret Service Special Agent in Charge of the Dallas Field Office William Smarr, adding, “This investigation is an excellent example of a partnership between local, state, and federal law enforcement agencies working together to successfully prosecute numerous violations of federal statutes. There are real innocent victims due to these crimes. The Secret Service also thanks the Northern District of Texas United States Attorney’s Office for their aggressive support.”
“I’m proud of our team who, with our federal partners, relentlessly pursued this investigation for more than a year. Today, we have made a significant impact on one of the world’s largest digital marketplaces for prostitution and sex trafficking. We know many lives will be saved through this joint effort,” said Michael C. Miller, Chief of Police for the Colleyville Police Department.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Martono is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 25 years in federal prison.
Mr. Martono was charged in part under FOSTA, a law passed in the wake of the Backpage scandal in April 2018 that allows the federal government to prosecute websites that facilitate sex trafficking.
The North Texas Trafficking Task Force conducted the investigation, led by Homeland Security Investigations’ Dallas Field Office, the United States Secret Service, and the Colleyville Police Department, with assistance from HSI’s El Paso and San Jose Field Offices as well as the Texas Department of Public Safety. Assistant United States Attorneys Sid Mody, Rebekah Ricketts, and John de la Garza are prosecuting the case.