Northern District of Texas
Press releases recorded for this federal judicial district.
Dallas Doctor Pleads Guilty to Prescription Drug Diversion Scheme on ElderlyRead the Press Release
A Dallas doctor has pleaded guilty to a felony for prescription drug diversion crimes perpetrated on elderly victims, announced U.S. Attorney Erin Nealy Cox.
Dr. Edward Agura, 63 pleaded guilty before U.S. Magistrate Judge Renee H. Toliver on Tuesday for possession of a controlled substance by misrepresentation or fraud.
“Elder abuse by anyone, particularly by health professionals, is deeply disturbing,” said U.S. Attorney Erin Nealy Cox. “Those who exploit the elderly and perpetrate crimes on our seniors will be held accountable for their criminal actions. Importantly, the Department of Justice recently observed World Elder Abuse Awareness Day and we reconfirmed our commitment to rooting out fraud that preys on the elderly.”
“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” stated Eduardo A. Chavez, Special Agent in Charge of the D.E.A. Dallas Field Division. “The Dallas D.E.A. will always seek justice against those who take advantage of unsuspecting individuals, especially the elderly, to fuel their drug addiction through fraudulent means.”
Beginning in May 2016, Dr. Agura admitted to issuing prescriptions in the names of elderly victims without their knowledge or consent. The controlled substances were for his own personal use.
According to court documents, Dr. Agura issued fraudulent prescriptions for Hydrocodone, Fentanyl, Oxycodone, Alprazolam, Triazolam, and Lorazepam were dispensed to himself at Dallas area pharmacies under the guise he was obtaining them for elderly patients.
To further perpetuate the fraud, Dr. Agura admitted to creating phony medical records in the names of the elderly victims. While Dr. Agura did personally know each victim, the victims were not patients and had not sought medical treatment for the prescriptions that he issued in their name. Dr. Agura admitted obtaining the unlawful prescriptions to utilize for his personal consumption.
Dr. Agura faces up to four years in federal prison for the felony conviction. A sentencing date has been set for October 8th.
This case was investigated by the Drug Enforcement Administration, Dallas Division. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting the case.
Mexican National Sentenced to Nearly 5 Years for Drug TraffickingRead the Press Release
A Mexican national has been sentenced to nearly five years in federal prison for trafficking nearly a quarter of a million dollars’ worth of cocaine, announced U.S. Attorney Erin Nealy Cox.
On June 12, 2020, Roberto Rodriguez-Salinas, 39, of Nuevo Laredo, Tamaulipas, Mexico was sentenced by U.S. District Judge Jane J. Boyle to two 57 month sentences that will run concurrently for conspiracy to launder monetary instruments and conspiracy to distribute cocaine.
According to court documents, on March 28, 2018, Mr. Rodriguez-Salinas transferred a black bag containing United States currency to another person that knew his money was drug proceeds. Mr. Rodriguez-Salinas admitted that he intended the money to be transferred from the United States to individuals in Mexico.
Court documents further reflect that on March 30, 2018, Mr. Rodriguez-Salinas was stopped by the Dallas County Sheriff’s Department for a traffic violation. During the traffic stop, deputies found Mr. Rodriguez-Salinas in possession of approximately eight kilograms of cocaine, a firearm, and $115,931. Mr. Rodriguez-Salinas admitted that the money seized by authorizes was derived from the sale and distribution of the cocaine.
According to agents from the Drug Enforcement Administration, the cocaine found in Mr. Rodriguez-Salinas vehicle had a street value ranging from $192,000 to $208,000 in the Dallas, Texas area.
Fourteen individuals have been indicted in this case. Two defendants are fugitives and one defendant is pending trial. Co-defendant, Marcus Morones, was previously sentenced to a term of 41 months confinement in federal prison.
This case was investigated by the Drug Enforcement Administration and the Dallas Police Department. Assistance in this case was also provided by the Dallas County Sheriff’s Department. Assistant U.S. Attorneys George Leal and Rachel Jones are prosecuting the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Erin Nealy Cox Testifies Before Senate Judiciary CommitteeRead the Press Release
U.S. Attorney for the Northern District of Texas Erin Nealy Cox testified before the Senate Judiciary Committee on Tuesday, June 16. You can watch the full hearing -- entitled "Police Use of Force and Community Relations" -- here.
Below is the U.S. Attorney's prepared opening statement:
Good afternoon Chairman Graham, Ranking Member Feinstein, and members of the Committee; thank you for inviting us to testify today. I also want to thank my home state Senators, Senators Cornyn and Cruz, for their unwavering support all our efforts in my District.
I am Erin Nealy Cox, United States Attorney for the Northern District of Texas and Chair of the Attorney General’s Advisory Committee. In those roles, I’m proud to serve as the chief federal law enforcement officer for more than 8 million Texans, as well as an advocate for prosecutorial priorities nationwide.
I know I’m appearing at a time of great turmoil in this country. I start with this: Police brutality in any form is repugnant and unacceptable. It is impossible not to feel anger and sadness when watching the video of George Floyd’s tragic killing. Actions like this and others we have witnessed rightly erode trust in law enforcement as a whole and tarnish the badge of the vast majority of officers who serve honorably.
It’s vital that law enforcement speak out against officers who bring great dishonor upon the profession. At the Department, our character and commitment to justice compel us to speak out as well as listen to and empathize with those who suffer the most when law enforcement falls short in our duty to protect them. So on behalf of the 93 United States Attorneys, we condemn this conduct and we commit to be united, determined, deeply engaged, and thoughtful in our collective efforts to help bring about meaningful change on the issues at this moment in history. We steadfastly join with the Attorney General and the Deputy Attorney General in their commitment to restore confidence in the American criminal justice system for all.
Mr. Floyd’s death, and the resulting outrage, tears at the very fabric of our communities. This divide is particularly disheartening to me, because for the past two years, in my District we’ve been spearheading a public safety program built on the notion that positive, meaningful relationships between police and the people they serve can transform struggling communities. Project Safe Neighborhoods – the cornerstone of DOJ’s anti-violent-crime strategy – can help us ensure equal justice under the law.
We launched our first PSN project in Dallas in April 2018, targeting a neighborhood that – for decades -- was plagued by violent crime. As with any law enforcement initiative, one of PSN Dallas’s goal was to root out offenders – members of violent gangs, and drug traffickers who terrorized residents daily.
Importantly though, we felt that we needed to build relationships of trust within the community for our program to be successful. So we deployed a consistent and compassionate team of Officers and Agents that earnestly wanted to form relationships with the people in the neighborhood. And we took steps to foster a community that felt empowered to approach our officers for help – with the assurance that they would be met with respect.
To accomplish this, we took several steps:
- We’ve hosted more than 100 community meetings with neighborhood groups, apartment managers, faith leaders, and school teachers to share our vision for the neighborhood and solicit advice on how to achieve it.
- Based on community feedback, our PSN task force worked to shut down seedy convenience stores, game rooms, and other establishments that were spawning crime.
- And we’ve used important grant money to implement what’s called “crime prevention through environmental design,” working with a non-profit organization to redesign a central community square. This vibrant plaza now boasts a mini-lending library, recreation tables, and a child’s craft area. Since completion of the project, the plaza hasn’t seen a single act of violence.
Our PSN engagement has yielded real results. Even as Dallas’ citywide crime rate increased dramatically, inside the PSN area, violent crime decreased. Community members have been vocal in their support.
USAs across the country are having similar success stories and success breeds success. And so we launched programs out of our other district offices – in Amarillo, Lubbock, and elsewhere.
The results have been undeniably positive. In its first year, PSN Amarillo achieved a 13% reduction of violent crime inside the targeted areas, and PSN Lubbock, using the same community-based approach, achieved a 26% reduction in aggravated assaults, and a 25% reduction in business robberies.
That is tangible results: violence going down, trust within the community is coming up, and lives impacted for the better.
The people of these communities have joined together with law enforcement – united in a singular goal. I have witnessed it working first hand in the communities we serve.
I look forward to telling you more about my experience and answering your questions.
For more on the Northern District of Texas' Project Safe Neighborhoods initiatives, click here.
Husband, Wife Plead Guilty in $15 Million Embezzlement SchemeRead the Press Release
A Red Oak, Texas couple pleaded guilty today to their roles in a $15 million retirement plan embezzlement scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Vantage Benefits Administrators co-owner Wendy Richie, 59, pleaded guilty Tuesday to two counts of theft from an employee benefit plan and one count of aggravated identity theft. Her husband, Vantage co-owner Jeffrey Richie, 55, pleaded guilty to two counts of aiding and abetting theft from an employee benefit plan. Their company served as third party administrator for dozens of pension and retirement funds.
According to plea papers, Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian. Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account, then into personal bank accounts.
Even after a Vantage employee confronted Mr. Richie about Ms. Richie’s conduct, Ms. Richie continued to embezzle money from the funds. At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, he admitted.
In total, the pair admitted to submitting more than 90 unauthorized distribution requests from 13 pension plans and 7 retirement plans from 2014 and 2017.
“This couple took advantage of innocent people who were working hard and saving for their future,” U.S. Attorney Nealy Cox said in October 2018 when the couple was charged. “We cannot permit such brazen financial misconduct to go unchecked.”
Ms. Richie now faces up to 12 years in federal prison, while Mr. Richie faces up to 10 years. They may be required to pay restitution as well as a $500,000 fine.
The Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Labor’s Employee Benefits Security Administration, and the Texas State Auditor’s Office conducted the investigation. Assistant U.S. Attorney Christopher Stokes is prosecuting the case.
Abilene Man Convicted at Trial for Enticing Minor to Engage in Sexual ActivityRead the Press Release
An Abilene man was convicted at trial for attempted enticement of a minor, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
On Monday, a federal jury deliberated for just seven minutes before finding Carlito Santiago Santos, 47, guilty of attempted enticement of a minor. Mr. Santos was indicted in October 2019.
According to the evidence presented at trial, Abilene Police Department created an undercover online persona of “Tyler,” a 15-year-old boy, and placed his profile on Grindr, a social media dating platform for GBTQ men.
Mr. Santos sent multiple illicit message to Tyler. In reply, Tyler told Mr. Santos that he was 15 years old and sent an age-regressed photo of a 15-year-old boy. Mr. Santos agreed to meet Tyler at an apartment complex in Abilene to engage in sexual activity. When Mr. Santos arrived he was arrested by law enforcement.
During interviews conducted by the Texas Department of Public Safety, Mr. Santos, a native of the Philippines where he worked as a pediatrician, admitted that he had a sexual interest in children because he found them “energetic” and “innocent.” Mr. Santos said he frequently viewed child pornography and ultimately admitted to molesting approximately fifteen children while in the Philippines.
The defendant faces a potential sentence of up to life in federal prison. His sentencing date is set for September 15, 2020.
The investigation was led by Abilene Police Department and Texas Department of Public Safety. Assistant U.S. Attorneys Juanita Fielden and Jeffrey Haag are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Bodybuilder Charged with Conspiracy to Sell SteroidsRead the Press Release
A north Texas bodybuilder has been charged with conspiring to sell steroids, announced U.S. Attorney Erin Nealy Cox.
Philip Russell Archibald, 29, of Lancaster, was charged via criminal complaint with conspiracy to distribute controlled substances. Coconspirator Danielle Bocanegra, 30, of Lampasas, was also charged.
“The Northern District of Texas will not tolerate the peddling of steroids in our community. We are grateful to our law enforcement partners for helping us dismantle this steroid trafficking ring,” said U.S. Attorney Erin Nealy Cox.
According to the complaint, Mr. Archibald, a self-proclaimed bodybuilder and personal trainer, allegedly ran a steroid distribution ring that spanned across north Texas.
In March 2019, agents discovered Mr. Archibald’s fingerprints on a zip-lock baggie filled with steroids, which Ms. Bocanegra sold to an undercover officer for $900, the complaint alleged. They later tracked several packages of steroids sent via the U.S. Postal Service to Ms. Bocanegra’s residence to several USPS kiosks used by Mr. Archibald.
In July 2019, agents followed Mr. Archibald from his residence to a local post office, where he allegedly mailed a priority mail flat rate box. Pursuant to a federal search warrant, the agents seized the parcel and sent the contents to the USPIS Forensic Laboratory, which identified 64 red capsules containing oxandralone, a known steroid compound.
On June 8, 2020, agents also searched Mr. Archibald’s residence, where they found steroids and multiple firearms, prosecutors told the Court.
At Mr. Archibald’s detention hearing, prosecutors argued that the defendant posed a threat to the community, noting that the defendant, who has been tied publicly with the anti-government Boogaloo movement, used his social media accounts to advocate vigilante “guerrilla warfare” against the National Guardsman patrolling Black Lives Matter protests. In a recent Facebook post, he claimed to be “hunting Antifa” and threatened to “kill” looters. The Court granted the government’s motion and ordered Mr. Archibald detained pending trial.
“Drug trafficking and violence go hand in hand. Whether we are talking about Mexican Cartels and methamphetamine or illegal steroids and vigilantes, all pose a real threat to the safety and security of our Nation,” stated Steven S. Whipple, Special Agent in Charge of the DEA Houston Division. “DEA, along with our federal, state, and local law enforcement partners, remain especially focused on bringing to justice those drug traffickers who use, or threaten to use violence in any way or for any purpose.”
“The U.S. Postal Inspection Service is charged with defending the nations mail system from illegal use,“ said Adrian Gonzalez, U.S. Postal Inspector in Charge of the Houston Division. “This includes ensuring individuals like Mr. Archibald do not use the U.S. Mail as a tool to distribute controlled substances to our communities. We remain steadfast in our resolve to work with our law enforcement partners to ensure the safety of our communities and of the U.S. Postal Service.“
A criminal complaint is merely an allegation of wrongdoing, not evidence. These defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, both Mr. Archibald and Ms. Bocanegra face up to 10 years in federal prison.
The Drug Enforcement Administration’s Austin Field Office, the Federal Bureau of Investigation’s Dallas Field Office, and the U.S. Postal Inspection Service’s Houston Field Office conducted the investigation. Assistant U.S. Attorneys Tiffany H. Eggers and Rebekah Ricketts are prosecuting the case.
Grand Prairie Man Sentenced to 57 Months for $2.8 Million Tax Preparation SchemeRead the Press Release
A Grand Prairie man was sentenced 57 months in federal prison for his role in a more than $2.8 million tax return preparation scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Oma Michel Ungu, 61, pleaded guilty in January to one count of conspiring and aiding in the preparation of a false tax return. He was sentenced Tuesday morning by U.S. District Judge Terry R. Means.
“When our tax laws are ignored, especially by those trained as professionals, everyone loses,” said U.S. Attorney Nealy Cox. “We are committed to protecting the integrity of our tax system by giving taxpayers confidence that everyone plays by the same rules. Tax return preparers who exploit their clients and the tax system to file fraudulent returns will be prosecuted and held accountable for their criminal conduct.”
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Kevin Caramucci, Assistant Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
According to plea papers, between 2013 and 2016, Mr. Ungu admitted that Super Professional Tax Services, which he owned and operated, prepared and filed false tax returns on behalf of its clients. Mr. Ungu admitted he personally prepared a tax return in 2015 that claimed that one of his clients had significant unreimbursed business expenses which provided the client a with substantial reduction in his taxable income. Mr. Ungu knew the client was not entitled to claim a deduction for unreimbursed business expenses.
A former employee of Mr. Ungu, Robert Poteet previously pleaded guilty to aiding and assisting in the preparation and presentation of false and fraudulent tax returns in January 2019 and was sentenced to 18 months in federal prison.
The defendants are jointly and severally liable for more than $2.8 million in restitution.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Douglas A. Allen is prosecuting this case.
Two Former EarthWater Executives Plead Guilty for Investment Fraud Scheme Targeting Elderly VictimsRead the Press Release
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, have pleaded guilty to fraud and money laundering charges for their role in a multi-million dollar high-yield investment fraud scheme that targeted elderly victims.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington, D.C., made the announcement.
John Mervyn Price, 64, of Dallas, Texas, pleaded guilty today to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and one count of money laundering, before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. Price will be sentenced on Oct. 7, 2020, before U.S. District Court Judge Ed Kinkeade.
Cengiz Jan Comu, 59, of Dallas, Texas, pleaded guilty on March 10, 2020, to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and two counts of money laundering, before U.S. Magistrate Judge Toliver. Comu’s sentencing is currently scheduled for July 8, 2020, before Judge Kinkeade.
As part of his guilty plea, Price, who had been EarthWater’s chief operating officer, admitted that, beginning in or about 2013 and continuing through on or about Sept. 30, 2016, he and Comu, who had been EarthWater’s chief executive officer, managed and supervised a scheme to defraud individuals by convincing them to invest in EarthWater under the false pretense that their investment would increase substantially in value in the immediate future. Price further admitted that, in truth and in fact, he and his co-conspirators knew that the proceeds of EarthWater stock sales were not invested in EarthWater as described to investors, but paid out to Price and his co-conspirators to be used for their personal benefit. Price also admitted that Comu lied to investors about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit.
Price also admitted that he and Comu partnered with two stock promoters, Richard Laurence Kadish, 59, of Miami, Florida, and Richard Lawrence Green, 69, of Deerfield Beach, Florida, to sell EarthWater stock and that whenever Kadish, Green or a salesperson that Kadish or Green recruited, made a sale of EarthWater stock to a victim, Comu and Price paid Kadish and Green a commission of approximately 50 percent of the victim’s funds. Price further admitted that, starting in or about 2016, through in or about January 2019, Price also worked directly with another stock promoter, Russell Filippo, 69, of Oklahoma City, Oklahoma, to sell Price’s personal shares of EarthWater stock for approximately 30 percent commission. Price told Filippo that Comu lied about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit. In addition, Price admitted he and Comu had engaged in monetary transactions in excess of $10,000 in funds obtained by defrauding investors through a company called Regus Advisors, Inc.
As part of his guilty plea, Comu similarly admitted that he conspired to obtain EarthWater investor funds through a scheme to defraud in which he made materially false and fraudulent misrepresentations to investors that the majority of their funds would be used to support EarthWater’s operations, when, in fact, the funds were used to pay undisclosed, excessive commissions to those selling EarthWater stock on Comu’s behalf. Comu further admitted that he knowingly engaged in monetary transactions in amounts greater than $10,000 involving investor funds obtained as part of the fraudulent scheme.
In addition to Price and Comu, Kadish, Green, Filippo, and six other defendants have been charged in the Northern District of Texas for their roles in the EarthWater fraud, including Harley E. “Buddy” Barnes, III, 61, of Plano, Texas; Daniel Thomas Broyles Sr., 63, formerly of Malibu, California; Suzanne Aileen Gagnier, 66, of Huntington Beach, California; Joe Edward Duchinsky, 65, of Alhambra, California; Joseph Lucien Duplain, 79, of Murrieta, California; and Donald Andrew Rothman, 72, of Coral Springs, Florida. All of these defendants, except for Kadish and Rothman, were charged by a federal grand jury in a superseding indictment unsealed on Nov. 8, 2019. Kadish was charged by a federal grand jury in an indictment filed on March 5, 2019, and Rothman was charged in an information filed on Sept. 6, 2019. Kadish, Green and Rothman have pleaded guilty and are scheduled to be sentenced on Nov. 18, 2020, before Judge Kinkeade. The remaining defendants are awaiting trial, which is currently set for Jan. 19, 2021, before Judge Kinkeade.
Barnes and Beth Ellen DeGroot, 59, of Plano, Texas, were separately charged by a federal grand jury in the Northern District of Texas with conspiracy to commit wire fraud and bank fraud and obstruction of justice relating to the ongoing investigation into EarthWater, in a superseding indictment returned on March 5, 2020. Barnes and DeGroot are awaiting trial, which is currently set for Oct. 5, 2020, before Judge Kinkeade.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Man Receives Maximum Sentence for DDoS Attack on Legal News AggregatorRead the Press Release
An Iranian-born, U.S. naturalized 40-year-old man who launched multiple international cyber-attacks on media, bloggers, and legal news aggregation websites was sentenced on Monday to five years in federal prison and ordered to pay more than $520,000 in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The defendant, born Kamyar Jahanrakhshan, changed his name to Andrew Rakhshan when naturalized as a US citizen. Mr. Rakhshan pleaded guilty in February 2020 to conspiracy to commit computer fraud. The sentencing judge, U.S. District Judge David C. Godbey, accepted the plea agreement which statutorily limited the defendant’s maximum sentence to 60 month incarceration.
According to plea papers, Mr. Rakhshan admitted to conspiring with others to launch a DDoS (distributed denial of service) attack in January 2015 on Leagle.com, a legal aggregation site that had posted publicly available information about his prior criminal conviction in Canada. Leagle.com’s website was hosted by a provider located in Dallas, Texas.
Upon his arrest in July 2017, at his residence in a suburb of Seattle, Washington, Mr. Rakhshan was detained pending the outcome of the case.
At his original trial in March 2018, a federal jury voted to convict Mr. Rakhshan of knowingly causing the transmission of a command to a protected computer, an offense that carried a 10 year maximum prison term. However, in July 2018, Judge Godbey granted a defense motion for a new trial based on the defense attorneys’ sworn admissions that they were ineffective in representing their client at trial. In April 2019, the government superseded the original indictment, adding the conspiracy charge. Mr. Rakhshan elected to plead guilty to the conspiracy charge on the morning his re-trial was to begin. He received the statutory maximum sentence for his guilty plea, although the Judge implied that the sentence would have been higher had there not been a statutory maximum.
Testimony and evidence from the trial established that when attacking each victim, Mr. Rakhshan followed the same pattern. First he would contact the targeted site and request that the site remove any publically available information about his 2013 criminal conviction in Canada. Mr. Rakhshan initially claimed that the similarity of his name to the convicted person’s name was ruining his life. When the websites refused to remove the data, Mr. Rakhshan first offered bribes to compel their compliance, then escalated his conduct through emails and faxes, by threatening to attack the site or associated sites. In some instances, Mr. Rakhshan threatened to call in bomb threats. Often, after initiating a successful DDoS attack, Mr. Rakhshan would contact the victim, admit to being the convicted person, brag about the successful attack, and threaten additional attacks.
Mr. Rakhshan purchased services from various booter services, such as ItsFluffy and RageBooter, to deploy the DDoS attack. The services offered by Rakhshan’s coconspirators allowed Mr. Rakhshan to flood the websites with traffic, overwhelming the servers and disabling the sites. Mr. Rakhshan initiated multiple DDoS attacks against each victim, and most victims removed the data to stop the attacks.
At the sentencing hearing, the Judge also found that Mr. Rakhshan had obstructed justice by perjuring himself during a hearing in 2017. Mr. Rakhshan lied about possessing 10 email addresses he used to facilitate the offense. Mr. Rakhshan also lied about illegally returning to Canada after having been deported. Mr. Rakhshan committed offense from at least December 2014 through at least August 2015 while residing in various states in the United States and in Vancouver, Canada.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Toronto Police Service and the Australian Federal Police.
Amarillo Drug Dealer Who Sold Fatal Heroin Sentenced to 20 YearsRead the Press Release
An Amarillo drug dealer who sold a deadly dose of heroin has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Cynthia Marie Carrasco, 58, pleaded guilty in Federal District Court to possession with the intent to distribute heroin resulting in death.
On April 19, 2019, Amarillo Police Department officers were called to a hotel in Amarillo, Texas, to investigate a suspected heroin overdose. The deceased 33-year-old victim had been staying at the hotel with 37-year-old Jeffery Michael Smith.
According to court documents, Smith agreed to be interviewed by Amarillo Police Department narcotics agents where he admitted to buying heroin from Cynthia Carrasco for a period of time. Smith admitted that he purchased the heroin for his acquaintance used shortly before her death from Carrasco.
During a non-custodial interview with Carrasco at her home, she admitted that she knew Smith and had previously sold him heroin. Carrasco stated that she repackaged heroin into smaller quantities for sale. Carrasco allowed officers to seize her phone. On the phone, officers located evidence that Carrasco was purchasing heroin from Andrew Olguin. In a subsequent interview, Carrasco admitted that her heroin had killed the victim on the night of April 19, 2019.
Agents identified Austin Potts as suspect in the investigation. During an interview with agents, Potts admitted to delivering heroin to individuals for Carrasco.
Other co-defendants also received the following sentences for their involvement: Austin Ryan Potts, 26, 5 years, Andrew Olguin, 64, 10 years, Jeffrey Michael Smith, 37, 10 years.
The investigation was led by the Drug Enforcement Administration with the assistance of Randall County Sheriff’s department and the Amarillo Police Department. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.
Dallas Man Charged with Theft of Firearms During ProtestsRead the Press Release
A third Dallas man who exploited the chaos of the Black Lives Matter protests to steal firearms has been charged with gun crimes, announces U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Erick Montgomery, 18, was charged via criminal complaint with theft from a Federal Firearms Licensee (FFL) and possession of stolen firearms.
Montgomery is the third defendant in a criminal trio which includes Demonte Kelly, 18, and Lejael Rudley, 19, all charged with burglary of DFW Gun Range in Dallas, Texas.
According to the complaint, a surveillance camera recorded three men exiting DFW Gun Range around 1:45 a.m. on Sunday, May 31, shortly after the theft of more than 40 firearms.
In the span of just 80 seconds, the men allegedly pried open the side entrance of the facility, grabbed three rifles posted on the wall, and smashed glass cases to snatch several dozen handguns stored inside.
Following ATF’s release of the surveillance video, the Dallas Police Department received a credible lead in the investigation. A tipster claimed to know the identities of the three men, including Montgomery, that were shown in the surveillance video which aired on a local news channel.
ATF Special Agents tracked Montgomery to a Dallas apartment where he waived is Miranda rights and agreed to speak with agents. Montgomery admitted that he was present the night of the gun range burglary and stole multiple firearms.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Montgomery is presumed innocent unless and until proven guilty in a court of law.
ATF has recovered a total of eight firearms from the burglary. ATF and the U.S. Attorney’s Office urge the public to report any information they have on the whereabouts of the outstanding stolen weapons: 888-ATF-TIPS, [email protected], http://atf.gov/contact/atftips, @Reportitcom, or text ATFDAL to 63975.
Montgomery made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford today. If convicted, Montgomery, Kelly, and Rudley each face up to 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Joe Magliolo, and Keith Robinson are prosecuting the case.
Two Men Charged with Theft of Firearms During ProtestsRead the Press Release
Two men who exploited the chaos of Dallas’ Black Lives Matter protests to steal firearms have been charged with gun crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Demonte Kelly, 18, and Lejael Rudley, 19, were charged via criminal complaint with theft from a Federal Firearms Licensee (FFL) and possession of stolen firearms.
“Theft of firearms will always trigger swift law enforcement action,” said U.S. Attorney Nealy Cox. “We are thankful to the members of the public who stepped up to help law enforcement track down these men and their stolen guns. This prosecution sends a message: Federal law enforcement will not allow criminals to use the turmoil facing our city as cover for their own lawless ends.”
“Recovering stolen firearms is a priority for ATF and the community,” stated ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II. “My thanks to the agents, investigators and members of the public who worked swiftly to identify these men so quickly after the burglary.”
According to the complaint, unsealed today, a surveillance camera recorded three men exiting DFW Gun Range around 1:45 a.m. on Sunday, May 31, shortly after the theft of more than 40 firearms.
In the span of just 80 seconds, the trio allegedly pried open the side entrance of the facility, grabbed three rifles posted on the wall, and smashed glass cases to snatch several dozen handguns stored inside.
Following ATF’s release of the surveillance video, a tipster identified one of the men as Demonte Kelly, of Dallas.
Dallas police officers tracked Mr. Kelly to a hotel in southeast Dallas, where they observed him interacting with two men: Mr. Rudley and a third man, later identified as S.J. Mr. Kelly then drove off in a red Jeep with paper plates.
With ATF running point on surveillance, Dallas police conducted a traffic stop on the Jeep. Inside the vehicle, officers discovered one of the stolen firearms.
During a subsequent interview with ATF, Mr. Kelly identified himself in the surveillance video, admitted to burglarizing the gun range, and gave agents written consent to search his hotel room. He also admitted to selling one of the stolen firearms to an unknown individual. Inside his hotel room, agents recovered four additional stolen firearms, 76 rounds of assorted ammunition, and baggies of crack cocaine.
ATF also interviewed Mr. Rudley, who also admitted to burglarizing the gun range and gave agents written consent to search his hotel room, where agents recovered a sixth stolen firearm.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Mr. Kelly and Mr. Rudley are presumed innocent unless and until proven guilty in a court of law.
The defendants made their initial appearances before U.S. Magistrate Judge David L. Horan Friday. If convicted, they face up to 20 years in federal prison.
The third individual allegedly involved in the burglary, identified as S.J., remains at large. ATF and the U.S. Attorney’s Office urge the public to report any information they have on the whereabouts of S.J. or the stolen weapons: 888-ATF-TIPS, [email protected], http://atf.gov/contact/atftips, @Reportitcom, or text ATFDAL to 63975. ATF has partnered with the National Shooting Sports Foundation to offer a $10,000 reward.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Joe Magliolo, and Keith Robinson are prosecuting the case.
Han Gil Hotel, ‘Safe Haven for Drug Distributors,’ DemolishedRead the Press Release
On Tuesday, demolition crews began razing Han Gil Hotel Town, the drug-infested Dallas motel at the center of a 23-defendant drug trafficking probe, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Shuttered since the U.S. Attorney’s Office obtained a Temporary Restraining Order prohibiting use of the property in March 2019, the Han Gil was forfeited to the government and sold, interlocutory, by the U.S. Marshals to a local developer. The contract negotiated by the U.S. Attorney’s Office included a condition that the developer buy the property “as is,” and demolish the building within 120 days of closing.
In a civil case, the government argued that for years, the hotel – which was located caddy corner to a local elementary school – served as home base for multiple drug dealers selling heroin, crack cocaine, and methamphetamine. The building functioned as a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity,” prosecutors said. The Court agreed, stating that the building “endangers the general welfare of the community.”
At least three victims are known to have died of drug overdoses inside the hotel, their bodies dumped by “cleanup crews” who failed to report their deaths. Numerous other drug users, who often injected themselves while still on the premises, were subjected to beatings, sexual abuse, and brutality by the dealers headquartered there.
“For far too long, the Han Gil played host to a parade of despicable criminals engaged in drug dealing, murder, and human trafficking,” said U.S. Attorney Nealy Cox. “With the destruction of the building, we have closed a chapter of the Han Gil horror story – but rest assured, our work taking down the many drug dealers that once frequented the facility is far from over.”
“Drug trafficking and the violent acts that accompany it destroy lives and leave families shattered. Now, the Han Gil, through its shattered glass and destroyed walls, will no longer be a visible symbol of the abhorrent crimes committed within its walls,” said DEA Special Agent in Charge of the Dallas Field Division Eduardo A. Chávez . “The North Texas Strike Force will continue its relentless pursuit of justice to ensure those who prey on the addicted are held accountable.”
The Han Gil’s former owner, Su Amos Mun, was charged in parallel criminal proceedings with maintaining a drug-involved premises, a violation of the Controlled Substances Act. He pleaded guilty in August 2019 and was sentenced to 20 years in federal prison.
According to his plea papers, Mun, 65, admitted that despite being aware of deadly overdoes, he allowed dealers to openly sell illicit drugs from inside his hotel rooms, charging them an inflated daily rate, or “drug tax,” to operate with impunity.
To date, 23 defendants have been charged in the Han Gil cases; 17 have pleaded guilty, including the hotel’s top dealers.
Eric Dewayne Freeman, aka “Stuff,” and Kendrick Lamel Washington, aka “Kiki,” both pleaded guilty to conspiracy to possess with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime and were sentenced to a combined 60 years in federal prison.
The pair admitted that they and other dealers routinely used so-called “trap rooms” within the Han Gil to peddle drugs, and that Mun tipped them off before law enforcement or city officials entered the premises.
Washington, 40, admitted that he acted as Freeman’s enforcer, using tactics “designed to instill fear” in individuals Freeman believed had stolen from him or owed him money. In December 2018, Washington used a cell phone to record Freeman, 44, torturing a young man with a blow torch.
The demolition of the site this week began with an excavator ripping through the rear portion of the building. After demolition is completed, the developer plans to replace the former drug den with new, mixed use apartment and retail buildings.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Scott Hogan, NDTX’s Civil Chief, Lindsey Beran, and Braden Civins filed the civil case. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy are prosecuting the criminal case. Assistant U.S. Attorneys Beverly Chapman and Melissa Childs handled the forfeiture.
Man Who Brandished Assault Rifle at Protest Charged with Making ThreatsRead the Press Release
A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock on Saturday has been charged with making interstate threats, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
According to a criminal complaint unsealed today, Emmanuel Quinones, a 25-year-old local, allegedly brought a loaded Smith & Wesson .223 caliber semi-automatic to a protest decrying the death of George Floyd, a black man who died at the hands of Minneapolis police last month.
In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. (Although Texas is an open-carry state, the Texas Penal Code makes it illegal to display a firearm in a public place “in a manner calculated to alarm.”)
Mr. Quinones allegedly refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun. A protester then tackled Mr. Quinones, who allegedly shouted, “this is a revolution” and “President Trump must die” as he was taken into custody.
During an interview, Mr. Quinones admitted that he previously made social media posts designed to “intimidate” the President and “MAGA instigators.” One such post, shared on Facebook on May 28, intimated that he planned to obtain gun parts “to off racists and MAGA people.”
In the interview, the defendant stated he attended the protest to protect demonstrators from these so-called MAGA (Make America Great Again) instigators, who he planned to shoot on sight. He claimed the police would not have been able to identify these counter-protestors, but that he could have.
“Instead of respecting citizens’ rights to respectfully voice their feelings, this defendant incited panic, putting everyone present – including those he claimed to support – in danger,” said U.S. Attorney Erin Nealy Cox. “We will not tolerate attempts to instill terror or encourage violence at otherwise peaceful protests.”
“The FBI respects the rights of individuals to peacefully exercise their First Amendment rights. In this case, the defendant threatened multiple lives including the President of the United States and that will not be tolerated,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “We will continue working with our local, state, and federal partners to apprehend and charge violent instigators who are exploiting legitimate, peaceful protests and engaging in violations of federal law.”
A criminal complaint is merely an allegation of unlawful conduct, not evidence. Mr. Quinones is presumed innocent unless and until proven guilty in a court of law.
He made his initial appearance Tuesday afternoon before U.S. Magistrate Judge D. Gordon Bryant. If convicted, the defendant could face up to five years in federal prison.
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, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
Former Arlington Pastor Sentenced to More Than 24 Years for Child ExploitationRead the Press Release
A former Arlington pastor was sentenced today to 293 months in federal prison for sexual exploitation of a child, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
39-year-old Brett Jarad Monroe, former associate pastor at Heritage Baptist Church in Arlington, Texas, pleaded guilty in January to one count of sexual exploitation of a child.
"No child should ever have to endure the pain of sexual exploitation,” said U.S. Attorney Nealy Cox. “The allegations in this case are particularly disturbing due to the defendant’s employment at the time of the offense as a pastor in a position of trust. The United States Attorney’s Office along with law enforcement partners will use every available tool to identify, arrest, and hold child predators accountable.”
“This individual’s actions were revolting, and the harm he caused to innocent children is devastating and forever lasting. His conduct was particularly disturbing because he was a trusted member of the community,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “Protecting the most innocent members of our society is a top priority for HSI and we will never relent in our efforts to put monsters in disguise, like Monroe, where they belong - behind bars!”
Federal agents executed a search warrant at Monroe’s residence on December 11, 2019. Monroe admitted to agents that he used his cellphone to create secret recordings of a minor female victim while she showered at his Arlington, Texas home. According to court documents, Monroe converted the video into still images which he saved in an online storage account.
At sentencing, an agent testified that Monroe admitted to sending, receiving, and trading child pornography online for years to fuel his pornography addiction. He also confessed to surreptitiously recording multiple other minor victims showering in his residence.
This investigation was led by Homeland Security Investigations with the assistance of the Arlington Police Department, Fort Worth Police Department, and Texas DPS. Assistant U.S. Attorney A. Saleem is prosecuting this case. U.S. District Judge Reed O’Connor handed down the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood brings together federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
NextHealth, Forest Park Executive Sentenced to 6+ YearsRead the Press Release
A healthcare executive at the center of two massive healthcare fraud scams has been sentenced to more than six years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
55-year-old Semyon Narasov, a former NextHealth and Forest Park Medical Center executive, was sentenced Friday by U.S. District Judge Jack Zouhary to 76 months in federal prison.
He pleaded guilty in 2018 to conspiracy to commit money laundering in the NextHealth case and to conspiracy to pay and receive healthcare bribes and kickbacks in the Forest Park case.
“This defendant was a central figure in not one, but two significant healthcare fraud schemes,” said U.S. Attorney Nealy Cox. “We cannot and will not allow health professionals to pervert an industry that should be solely focused on helping patients.”
According to court documents, Mr. Narasov admitted that Forest Park paid him and his business partner, Andrew Hillman, $190,000 to refer patients to the facility or to surgeons with privileges there.
He and Mr. Hillman submitted phony invoices to conceal the bribes, which were funneled through Adelaide Business Solutions, a shell entity, he said.
Mr. Narasov also admitted that while at NextHealth, he and Mr. Hillman submitted fraudulent claims to private and government health insurance providers – seeking reimbursement for prescriptions that were medically unnecessary, prescriptions for misbranded, non-FDA-approved drugs, and prescriptions prescribed by physicians who were receiving kickbacks, all while falsely claiming they had charged patients co-pays.
(Mr. Hillman also pleaded guilty to his role in both schemes, and was sentenced in December 2019 to 66 months in federal prison.)
The cases were investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Defense - Defense Criminal Investigative Service, and the U.S. Postal Service Office of Inspector General, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, and Chad Meacham prosecuted.
Amarillo Convenience Store Owner Sentenced to More Than 12 Years for Drug TraffickingRead the Press Release
An Amarillo convenience store owner and drug trafficker was sentenced to 151 months in federal prison for his role in distributing synthetic cannabinoids, also known as “K-2” or “spice,” announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Phouphet Sayasane, 43, a.k.a. “Phet” pleaded guilty in December 2019 to distributing and possessing with intent to distribute a controlled substance.
According to court documents, Sayasane owned and or assisted in operating a network of convenience stores and “smoke shops” around the Amarillo area where he and co-defendants sold illegal synthetic cannabinoids.
According to the DEA, “K-2” and “spice” are two of the many street names for synthetic cannabinoids which are human-made, mind-altering chemicals developed to mimic the effects of delta9-tetrahydrocannabinol (THC), the main active ingredient of marijuana. Synthetic cannabinoids – which can cause increased heart rate, seizures, vomiting, agitation, hallucinations, and other symptoms – are typically marketed in rectangular, heat-sealed packets with brightly colored wording and street names to add appeal.
Sayasane, and co-defendants, Paul Vang, 46, Krystal Vang, 43, Danny Vorasane, 31, Terry Morgan, 57, and Andrew Rodriguez, 35, most commonly sold synthetic cannabinoids to customers in one-gram and five-gram packages, often labelled as “aroma therapy.”
In plea papers, Sayasane admitted to supplying bulk amounts of “K-2” directly to other convenience stores and “smoke shops” in Amarillo including those of Paul Vang and Krystal Vang.
Through the network of convenience stores, Sayasane illegally distributed in excess of three kilograms of K-2 into the Amarillo community.
Other co-defendants also received the following sentences for their involvement: Paul Vang, 51 months, Krystal Vang, 46 months, Danny Vorasane, 37 months, Terry Morgan, 27 months, and Andrew Rodriguez, probation.
This investigation was led by the Drug Enforcement Administration, with the assistance of Homeland Security Investigations, the Amarillo Police Department, the Potter County Sheriff’s Office, the Randall County Sheriff’s Office, and the Texas Department of Public Safety. Assistant U.S. Attorney Sean Long is prosecuting this case. U.S. District Judge Matthew Kacsmaryk handed down the sentence.
NDTX Roundup: May 13-19Read the Press Release
CHARGED – Brandon Daeyon Glaspie & Darren Miles*
On May 13, a federal grand jury indicted Brandon Daeyon Glaspie, 38, and Darren Miles, 21, for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence. The defendants allegedly stole approximately $160,000 from an armored vehicle owned by Brinks, a security logistic company. They allegedly threatened the driver at gunpoint, then fled the scene. The defendants face up to 47 years in federal prison. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Joe Magliolo and Gary Tromblay.
CHARGED – Samuel Johnson*
On May 15, Samuel Lynn Johnson, 20, was charged via criminal complaint with possession of prepubescent child pornography. According to court documents, the defendant allegedly uploaded obscene images of children to Tumblr, a microblogging site. In an interview with police, he also allegedly admitted to inappropriate sexual contact with a 7-year-old family member. If convicted, he faces up to 20 years in federal prison. The Texas Department of Public Safety and Federal Bureau of investigation conducted the investigation with the help of the Snyder Police Department. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
SENTENCING – Erica Renee Robertson
On May 19, Erica Roberson, 41, was sentenced to 24 months in federal prison for conspiracy to possess a controlled substance with intent to distribute. Robertson admits obtaining heroin from a supply in Dallas, Texas and transporting it back to Wichita Falls, Texas. Once in Wichita Falls, she sold heroin to customers in the local area. This case was investigated by the Texas Department of Public Safety and DEA and prosecuted by Assistant U.S. Attorney Robert Boudreau.
SENTENCING – Amy Faye Moore
On May 19, Amy Faye Moore, 40, was sentenced to 37 months in federal prison for conspiracy to possess a controlled substance with intent to distribute. Moore obtained heroin from a supply in Dallas, Texas and transported it back to the Wichita Falls, Texas. Moore admits to selling heroin to customers located in the Wichita Falls area. This case was investigated by the Texas Department of Public Safety and DEA and prosecuted by Assistant U.S. Attorney Robert Boudreau.
*All defendants are presumed innocent unless and until proven guilty in a court of law.
Waco Man Sentenced to 5 Years for Equipment SchemeRead the Press Release
A Waco man has been sentenced to five years in federal prison for a scheme that deceived numerous victims, including several former law enforcement, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Richard Lee Burney, 50, pleaded guilty in January to wire fraud.
In plea papers, Burney admitted to defrauding a number of Texas ranchland owners. Those victims included a retiree of the Lubbock County Sheriff’s Office and a former Department of Public Safety Trooper who served the public for 35 years.
According to court documents, Burney devised a scheme in which he stated he was working in the timber business alongside the Federal Emergency Management Agency (FEMA) to help with the cleanup effort in North Carolina after Hurricane Matthew made landfall there in 2016.
Burney admitted to fraudulently claiming, that in connection with his work, he entered into a “lease buy-back” program that would allow him to lease equipment from a Bobcat Company dealership, use the equipment for the FEMA projects, and then resell the equipment at significantly discounted prices to individual buyers who agreed to reserve purchases with partial or full down payments.
Burney sent emails and text messages to victims to assure them that the equipment would be available. Burney never followed through on his promise to deliver the equipment to any of his victims or refund the money he schemed from them.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency and the Texas Rangers conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case. U.S. District Judge James Wesley Hendrix handed down the sentence.
Texas Man Sentenced to 60 Years in Prison for Sexually Abusing a Child in Hundreds of Videos and ImagesRead the Press Release
A man from Water Valley, Texas, was sentenced today to serve 60 years in prison for producing hundreds of videos and images of himself sexually abusing a child, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Douglas Stephen Groover, 37, was sentenced after pleading guilty in February 2020 to two counts of production of child pornography. The sentence, which was imposed by United States District Judge James Wesley Hendrix of the Northern District of Texas, also included a lifetime term of supervised release and a restitution award of $53,000.
According to court documents, in addition to the hundreds of videos and images he created of himself sexually abusing a minor, he also admitted to sexually abusing at least two additional minors. Groover also admitted to maintaining a large collection of child pornography, which included depictions of the sexual abuse of infants and toddlers, sadism and bestiality.
The case was investigated by HSI’s San Angelo, Texas, office, and the Tom Green County Sheriff’s Office with assistance from the High Technology Investigative Unit within the Child Exploitation and Obscenity Section (CEOS) of the U.S. Department of Justice’s Criminal Division. Trial Attorney Kyle P. Reynolds of CEOS and Assistant U.S. Attorney Jeffrey R. Haag prosecuted the case along with former Assistant U.S. Attorney Russell H. Lorfing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Man Sentenced to 60 Years in Prison for Sexually Abusing a Child in Hundreds of Videos and ImagesRead the Press Release
A man from Water Valley, Texas, was sentenced today to serve 60 years in prison for producing hundreds of videos and images of himself sexually abusing a child.
Douglas Stephen Groover, 37, was sentenced after pleading guilty in February 2020 to two counts of production of child pornography. The sentence, which was imposed by U.S. District Judge James Wesley Hendrix of the Northern District of Texas, also included a lifetime term of supervised release and a restitution award of $53,000.
According to court documents, in addition to the hundreds of videos and images he created of himself sexually abusing a minor, he also admitted to sexually abusing at least two additional minors. Groover also admitted to maintaining a large collection of child pornography, which included depictions of the sexual abuse of infants and toddlers, sadism and bestiality.
The case was investigated by HSI’s San Angelo, Texas, office, and the Tom Green County Sheriff’s Office with assistance from the High Technology Investigative Unit within the Child Exploitation and Obscenity Section (CEOS) of the U.S. Department of Justice’s Criminal Division. Trial Attorney Kyle P. Reynolds of CEOS and Assistant U.S. Attorney Jeffrey R. Haag prosecuted the case along with former Assistant U.S. Attorney Russell H. Lorfing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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.
National Police Week 2020: NDTX Backs the BlueRead the Press Release
Even as the COVID-19 crisis disrupts our nation, law enforcement in North Texas has stepped up to keep our citizens safe.
In honor of National Police Week, the U.S. Attorney’s Office for the Northern District of Texas partnered with District Attorney’s Office from across North Texas to thank the many officers and agents who have gone above and beynd the call of duty. You can watch the video on Twitter or Facebook.
United States Attorney Erin Nealy Cox: Even as a public health crisis disrupts our nation, law enforcement in North Texas has really stepped up.
Courtney Coker, Deputy Criminal Chief: They’ve been hard at work, patrolling our streets …
Laura Montes, Assistant U.S. Attorney: … arresting dangerous criminals …
Jeff Haag, West Texas Branch Chief: … conducting investigations …
Lillian Stewart, Managing Assistant U.S. Attorney: … and keeping our citizens safe.
Steve Fahey, Acting First Assistant U.S. Attorney: Our rank and file officers and agents are exceeding the call of duty, putting themselves at risk to maintain law and order.
Alex Lewis, Fort Worth Branch Chief: So from all of us here at the United States Attorney’s Office …
Felicia Kerney, Dallas County District Attorney’s Office: … and from local prosecutors in Dallas …
Tiffany Burks, Tarrant County District Attorney’s Office: … Tarrant County …
Eddie Wharff, Lubbock County District Attorney’s Office: … in Lubbock …
Robert Love, Randall County District Attorney’s Office: … the Panhandle …
Katherine Miller, Assistant U.S. Attorney: … and from all the citizens of the Northern District of Texas …
Steve Fahey: Thank you.
Laura Montes: Thank you.
Tiffany Burks: Thank you.
Alex Lewis: Thank you.
Robert Love: Thank you.
Felicia Kerney: Thank you.
Jeff Haag: Thank you.
Erin Nealy Cox: So to our federal, state, and local law enforcement partners, we’re forever grateful for the way you’ve had our backs during the COVID-19 pandemic. We promise you one thing: We’ll always back the blue.
NDTX Roundup: Amarillo Grand JuryRead the Press Release
CHARGED – Lakee Ealey, Crystal Ealey & Rodrick McKinney *
On May 6, a federal grand jury in Amarillo indicted Lakee Donae Ealey, 38, Crystal Hernandez Ealey, 33, and Rodrick Rashad McKinney, 21, on one count each of conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence. The defendants allegedly stole approximately $933,000 from an armored vehicle owned by Brinks, a security logistic company. They allegedly threatened the driver at gunpoint, then fled the scene, money in hand, in a pickup truck they later set on fire. The defendants face up to 47 years in federal prison. The case was investigated by the FBI and prosecuted by AUSAs Joe Magliolo and Gary Tromblay of NDTX’s Dallas Office.
CHARGED – Jesse Whitaker *
On May 6, a federal grand jury indicted Jesse Navarro Whitaker, 45, on one count of assaulting a federal officer, one count of being a convicted felon in possession of a firearm, and one count of discharging a firearm during a crime of violence. The defendant allegedly used a Smith & Wesson .40 caliber pistol to assault three Bureau of Prisons correctional officers at FCI Seagoville. Whitaker faces a mandatory minimum of 10 years and up to life in federal prison. The case was investigated by the Bureau of Prisons and prosecuted by AUSA Gary Tromblay of NDTX’s Dallas Office.
CHARGED – 8 alleged drug traffickers *
On May 6, a federal grand jury indicted Carrington Marshall Thomas, 27, Broderick Deshane Jones, 25, Roderick Dewayne Jones, 26, Dominique Rondrell Thompson, 21, Jonathan Taylor Singletary, 25, Adrian Trayvon Spears, 20, Zeric Queontrahl Moore, 23, and James Chadrick Robinson, 21, for conspiracy to knowingly possess firearms in furtherance of drug trafficking crimes. The defendants face up to 20 years in federal prison. The case was investigated by the ATF and prosecuted by AUSA Shawn Smith of NDTX’s Fort Worth Office.
CHARGED – Manuel Chavez & Michelle Miranda *
On May 6, a federal grand jury indicted Manuel Conception Chavez, 28, and Michelle Monique Miranda, 19, on charges of interference with commerce by robbery. On January 19, the pair allegedly used force and threats of violence to steal money from employees of a Family Dollar Store in Dallas. Both defendants face up to 20 years in federal prison. The case was investigated by the FBI and prosecuted by AUSA Abe McGlothin of NDTX’s Dallas Office.
CHARGED – Reginald Foster *
On May 6, a federal grand jury indicted Reginald Santel Foster, 40, on two counts of possession with intent to distribute heroin, one count of possession with intent to distribute cocaine, and one count of being a felon in possession of a firearm, namely a Taurus revolver. Foster faces up to 30 years in federal prison. The case was investigated by the DEA and prosecuted by AUSA Phelesa Guy of NDTX’s Dallas Office.
CHARGED – Shane Burkett *
On May 6, a federal grand jury indicted Shane Dwayne Burkett, 18, on one count of illegal receipt of a firearm by a person under indictment, as well as conspiracy to possess with intent to distribute methamphetamine. The defendant, who was already under indictment in Dallas County for burglary of a building, evading arrest, and unauthorized use of a vehicle, allegedly received a .40 caliber Glock. Burkett faces up to 30 years in federal prison. The case was investigated by Dallas Police Department and Texas DPS and prosecuted by AUSA P.J. Meitl of NDTX’s Dallas Office.
CHARGED – Christopher Owens *
On May 6, a federal grand jury indicted Christopher Darnell Owens, 34, for attempted child sex trafficking and obstruction of justice. If convicted, he faces up to life in federal prison. The case was investigated by HSI and prosecuted by AUSA Becky Ricketts of NDTX’s Dallas Office.
CHARGED – Hannah Edwards *
On May 6, a federal grand jury indicted Hannah Nicole Edwards, 24, for sexual exploitation of a child. The defendant allegedly took lewd photos of a male toddler’s genitals on her iPhone. Edwards faces up to 30 years in federal prison. The case was investigated by the FBI and prosecuted by AUSA Aisha Saleem of NDTX’s Fort Worth Office.
CHARGED – Tania Delarosa *
On May 6, a federal grand jury indicted Tania Delarosa, 42, on an attempted bank robbery charge. On March 27, the defendant allegedly attempted to steal U.S. currency from a Bank of America in Dallas. Delarosa faces up to 20 years in federal prison. The case was investigated by the Dallas Police Department and FBI and prosecuted by AUSA Becky Ricketts of NDTX’s Dallas Office.
CHARGED – Victor Martinez *
On May 6, a federal grand jury indicted Victor Martinez, 40, on conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm, and possession of an unregistered firearm. The drug-dealing defendant allegedly possessed a gun silencer that was not registered to him in the National Firearms Registration & Transfer Record. Martinez faces up to life in federal custody. The case was investigated by the DEA and prosecuted by AUSA Rachel Jones of NDTX’s Dallas Office.
CHARGED – Franklin Watson *
On May 6, a federal grand jury indicted Franklin Delano Watson, 32, for possession with intent to distribute methylenedioxymethamphetamine, commonly known as ecstasy. Watson faces up to 20 years in federal prison. The case was investigated by the ATF and Texas DPS and prosecuted by AUSA Rob Boudreau of NDTX’s Fort Worth Office.
*All defendants are presumed innocent unless and until proven guilty in a court of law.
Brownsville Men Charged with Smuggling Semi-Automatic Firearms to MexicoRead the Press Release
Two Brownsville men have been charged with smuggling guns from Texas to Mexico, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury in Amarillo on Wednesday indicted Jose Celby Hernandez, a 30-year-old U.S. citizen, and Rene Rangel-Manjarrez, a 33-year-old legal permanent resident, on one count each of conspiracy to smuggle goods from the United States and one count each of smuggling goods from the United States.
According to the indictment, the defendants allegedly purchased multiple firearms – through private sales, from a federally licensed firearms dealer (FFL), and from an ATF undercover agent – for the purpose of exporting the guns to Mexico.
In order to avoid attracting undue suspicion, Mr. Hernandez allegedly recruited other individuals, including Mr. Rangel-Manjarrez, to purchase firearms on his behalf.
The straw purchasers, including Mr. Rangel-Manjarrez, allegedly lied on their ATF form 4473s, stating that they were the actual purchasers of the firearms, when they knew they intended to turn the guns over to Mr. Hernandez to be exported to Mexico.
Over a two month period, the pair allegedly purchased at least half a dozen .50 caliber Barrett rifles, a weapon of choice for International Firearms Trafficking Organizations. These firearms are highly sought after by organizations like the Gulf Cartel for their ability to penetrate armored vehicles, aircraft, concrete shelters, and bullet-resisting targets. Barrett rifles are capable of engaging targets at ranges of over one mile.
“These defendants subverted important gun laws and smuggled lethal weapons across our borders,” said U.S. Attorney Erin Nealy Cox. “This prosecution is a public safety win for communities in the United States and in Mexico.”
“Preventing and disrupting firearms trafficking is a Dallas Field Division priority,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “These arrests highlight the ATF and Department of Justice’s combined focus on combatting gun crime under Project Guardian.”
The defendants are considered innocent unless and until proven guilty in a court of law.
If convicted, they each face up to 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, Homeland Security Investigations, the Irving Police Department and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Phelesa Guy 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.
Fort Worth Child Sexual Predator Sentenced to 80 YearsRead the Press Release
A Fort Worth child sexual predator was sentenced Monday to 80 years in federal prison announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tyrone Alexander Taylor, 42, pled guilty in October to two counts of sexual exploitation of a child and possession of a visual depiction of a minor engaged in sexually explicit conduct.
“This sentence, essentially a life sentence, exemplifies the seriousness of this horrible conduct – one committed against the most vulnerable among us,” stated U.S. Attorney Erin Nealy Cox. “We will continue to dedicate whatever resources necessary to bring to justice to predators who prey on and victimize children.”
"The FBI works with our law enforcement partners every day to ensure that children are protected from predators who seek to exploit them," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "Today's outcome is the result of collaboration and commitment to holding a sexual predator accountable for their actions. We ask that the public continue to remain vigilant and report any suspected child exploitation to the FBI or local law enforcement."
According to court documents, FBI agents launched their investigation after a computer repair business reported discovering child pornography on a hard drive owned by Taylor. After meeting with a business representative to review the images that depicted child pornography, agents took custody of the hard drive and conducted a forensic review of the device.
Taylor admitted the hard drive belonged to him and that it contained a number of child pornography videos and images – some as young as 9.
Taylor and codefendant, Shannon Nichols, sentenced in February to 50 years in federal prison, sexually victimized children by using them to create child pornography, which Taylor meticulously stored on his computer.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney A. Saleem prosecuted the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative organizes and deploys 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.
Federal Prosecutors Target COVID-19 Related Housing Predatory PracticesRead the Press Release
The Department of Justice and federal prosecutors remain vigilant in investigating and prosecuting landlords and property managers who sexually harass tenants during the COVID-19 pandemic, warned U.S. Attorney Erin Nealy Cox.
As a result of the COVID-19 pandemic, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced tenants to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords have responded to these circumstances with compassion, working together with their tenants to weather the current crisis. However, other landlords have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Tenants should never have to choose between housing and sexual harassment,” stated U.S. Attorney Erin Nealy Cox. “Sexual harassment by those who prey on vulnerable tenants is both reprehensible and illegal. If you have been a victim of sexual harassment, please report it to 1-844-380-6178 or [email protected].”
In a memo, Attorney General William Barr stated, “The current times are difficult enough without predatory practices by unscrupulous landlords. We must stop such behavior in its tracks. ”
Attorney General Barr has directed the Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. In late 2017, the Civil Rights Division launched the Sexual Harassment in Housing Initiative to combat sexual harassment in housing. The Civil Rights Division, together with the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
To address predatory practices by unscrupulous landlords, Attorney General Barr directed Assistant Attorney General for Civil Rights, Eric Dreiband, and Christina Nolan, the U.S. Attorney for the District of Vermont to oversee and coordinate U.S. Attorneys’ Offices efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
“The Fair Housing Act authorizes the U.S. Department of Justice take swift action against anyone who sexually harasses tenants,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to the fight against sexual harassment in housing. We will defend the right of tenants and their families to live peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
Unfortunately, many instances of sexual harassment in housing continue to go unreported. This is further exacerbated by the COVID-19 pandemic. Many investigations frequently uncover sexual harassment that has been ongoing for years and identify numerous victims who never reported the conduct to federal authorities.
In a public service announcement, U.S. Attorney Erin Nealy Cox urged victims of sexual harassment by a landlord, property manager, loan officer, maintenance worker, security guard, or other person who has control over housing to contact:
Sexual Harassment in Housing Initiative
1-844-380-6178
For more information: justice.gov/crt/sexual-harassment-housing-initiative.
Suspected Neo-Nazi Sentenced to 2.5 Years for Gun CrimeRead the Press Release
A suspected neo-Nazi has been sentenced to 30 months in federal prison for a gun crime, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, pleaded guilty to possession of firearms and ammunition by a prohibited person in Lubbock in January. Appearing via video teleconference from the Lubbock County Detention Center, the defendant was sentenced today before U.S. District Judge James Wesley Hendrix.
According to his plea papers, Mr. Bruce-Umbaugh – who was arrested in November in Post, Texas, dressed in tactical gear – admitted to possessing AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, and assorted ammunition while being an unlawful user of a controlled substance. (Federal law prohibits unlawful users of controlled substances to possess firearms.)
Mr. Bruce-Umbaugh admits he and Kaleb Cole were pulled over in a blue Ford in which law enforcement officers discovered the firearms, a small canister of marijuana, and a vial of THC oil.
Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop – later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to plea papers.
In a detention hearing in November, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.
In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group,” declared he was “a Nazi,” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Video released by the Court in February shows the defendant, handcuffed and clad in an orange jumpsuit, telling agents, “I assume you’re here because of my swastika flag and my firearms.”
AtomWaffen propaganda videos also admitted into evidence depict members of the Nazi group at self-described “hate camps,” spewing hateful rhetoric against Jews, practicing hand-to-hand combat and shooting firearms.
“Race war now!” they cry, before one displays a Nazi salute.
“The Northern District of Texas is committed to keeping guns out of the hands of dangerous individuals,” U.S. Attorney Nealy Cox said after the defendant pleaded guilty. “As a drug user, this defendant should never have been allowed to possess firearms. We’re grateful to our law enforcement partners for helpings us keep this defendant, and his guns, off the streets.”
“The amount of weapons and ammunition seized from the defendant could have caused serious harm. Luckily, the FBI and our law enforcement partners successfully intervened before an act of violence could be committed,” FBI Special Agent in Charge Matthew J. DeSarno said then. “The FBI will continue working with our partners to protect the communities we serve.”
The Federal Bureau of Investigation’s Lubbock Resident Agency, the Garza County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney Stephen Rancourt is prosecuting the case.
Federal Prosecutors Poised to Act Against Criminals Targeting Economic Impact PaymentsRead the Press Release
In partnership with the U.S. Postal Inspection Service, federal prosecutors are poised to take action against criminals targeting the Economic Impact Payments (EIP) that are being hand-delivered by the U.S. Postal Service, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“A wave of scammers and thieves are working overtime during the COVID-19 pandemic to defraud the American public of their Economic Impact Payments,” warned U.S. Attorney Erin Nealy Cox. “I urge the public to report any suspicious, fraudulent, or criminal activity related to the Coronavirus to law enforcement authorities.”
Amid economic effects of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The $2 trillion in financial relief package mandated distribution of EIPs to millions of Americans. These EIPs are being delivered in two ways: direct deposit into the recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury through the United States Postal Service.
More than 89.5 million individuals, including 7.8 million Texans, have received EIPs worth nearly $160 billion in benefits during the program’s first three weeks. The U.S. Postal Service anticipates hand-delivering over 80 million additional EIPs over the next few months.
This unprecedented mail volume gives rise to opportunist mail thieves and criminals to steal EIPs.
“The COVID-19 pandemic has created unique challenges for the nation as well as unique opportunities for thieves,” warns D. Glen Henderson, Acting Inspector in Charge of the Fort Worth Division. “The criminal efforts targeting those in need are unconscionable. The U.S. Postal Inspection Service is committed to protecting the mail, and we ask the public to immediately report any suspicious activity. We also want to thank the U.S. Attorney’s Office for their continued partnership as we pursue criminals who target the mail, the U.S. Postal Service, or its customers.
The U.S. Postal Inspection Service is working diligently to rout out criminals who engage in mail theft and fraud and refer them to the U.S. Attorney’s Office. The U.S. Postal Inspectors are prepared for a variety of schemes that criminals and thieves are employing to exploit the American public during this time of crisis. If you suspect mail theft, please report it to www.uspis.gov.
To underscore federal law enforcement’s commitment to pursue those who take advantage of the Coronavirus pandemic for gain, below are several COVID-19 related prosecutions in the Northern District of Texas:
- Court Prohibits Dallas Wellness Center from Touting ‘Ozone Therapy’ as COVID-19 Treatment
- U.S. Attorney’s Office Files Enforcement Action Against Chiropractor Promoting Fake COVID-19 Treatment
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. The Northern District of Texas has appointed Assistant U.S. Attorney Fabio Leonardi as the District’s Coronavirus Fraud Coordinator to work with federal, state, and local law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For more information visit: https://www.justice.gov/usao-ndtx/report-covid-19-fraud
United States Postal Service
To file a complaint regarding theft of Economic Impact Payments from the mail or COVID-19 fraud involving the U.S. Mail, please contact the U.S. Postal Inspection Service at: www.uspis.gov/report or 1-800-ASK-USPS.
Internal Revenue Service
Economic Impact Payment fraud can be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
CDC
For information on COVID-19 and the federal response visit: https://www.cdc.gov/coronavirus
NDTX Round-Up: April 17-23Read the Press Release
CHARGED – WILLIAM ADAM JONATHAN SMITH aka “Detroit”
On April 22, William Adam Jonathan Smith, 30, was charged by criminal complaint with conspiracy to engage in child sex trafficking. During an anti-human trafficking sting, agents encountered a juvenile female as well as an adult female, Charity Cantu, engage in prostitution. In a subsequent interview, Cantu admitted that at the direction of Smith she assisted grooming the minor into a commercial sex worker. Smith rented hotel rooms for commercial sex work with commercial sex clients and receive all the compensation that the minor made.
A criminal complaint is a formal accusation of criminal conduct, not evidence, and like all defendants, Smith is innocent unless and until proven guilty in a court of law. Smith faces up to life in federal custody. This case was investigated by HSI, Texas Attorney General’s Office, and Denton Police Department and prosecuted by Assistant U.S. Attorney Doug Allen.
SENTENCING – MCKINNLEY BRIAN HOBBS aka “Coach”
On April 17, McKinnley Hobbs, 39, was sentenced to 77 months in federal prison for conspiracy to distribute cocaine. Hobbs helped coordinate the delivery and distribution of cocaine to persons known and unknown throughout the Northern District of Texas. This case was investigated by the Dallas Police Department and the FBI and prosecuted by Assistant U.S. Attorney Phelesa Guy.
SENTENCING – TROY ANYHONY PEEBLES
On April 22, Troy Anthony Peebles, 47, was sentenced via video teleconference to six months (time served) for impersonation of an officer or employee of the United States. Peebles admits that following a flight from Belize to the Dallas-Fort Worth International Airport, U.S. Customs and Border Patrol officers conducted a routine screening, only to discover contraband in his luggage. Claiming to be a Special Agent with the U.S. Department of State’s Diplomatic Security Services, Peebles flashed a faux badge and attempted to proceed through the checkpoint. Prosecutors revealed a subsequent search of Peebles’ phone revealed photos of him dressed in a “federal agent” jacket and fraternizing with state and local law enforcement officers. This case was investigated by the Department of State’s Diplomatic Security Service and prosecuted by Assistant U.S. Attorney Nicole Dana.
SENTENCING – TARA TENISE JONES
On April 22, Tara Tenise Jones, 38, was sentenced to 15 months in federal custody for felon in possession of a firearm and possession of a firearm in a school zone. Previously convicted of a felony, Jones unlawfully possessed a .40 caliber Magnum Research Deseret Eagle. She admitted to carrying the firearm onto the grounds of Thompson Elementary school in Mesquite, Texas. This case was investigated by Mesquite Police Department and the ATF and prosecuted by Assistant U.S. Attorney John Boyle.
Man Sentenced for Threatening to Kill the PresidentRead the Press Release
A man who threatened to assassinate the President has been sentenced to 18 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mickael Gedlu, 36, pleaded guilty in December to making threats against the commander-in-chief. Appearing from the Federal Correction Institution in Seagoville, Texas, he was sentenced today via video teleconference by Chief U.S. District Judge Barbara M.G. Lynn.
According to plea papers, Mr. Gedlu admitted he threatened the President’s life on social media, stating on YouTube: “I'm waiting for Trump to visit Dallas before I attempt to assassinate him.”
During court proceedings, prosecutors noted that on May 31, 2018, Mr. Gedlu was observed across the street from Dallas’ Adolphus Hotel, just 30 minutes before the President arrived there for a fundraiser. Dallas police officers, who noticed Mr. Gedlu holding a “Kill Trump” sign, detained him as he screamed, “kill the President.”
Dallas police officers, who noticed Mr. Gedlu holding a “Kill Trump” sign, detained him as he screamed, “kill the President.”
The United States Secret Service conducted the investigation with the assistance of the Dallas and Richardson Police Departments. Assistant U.S. Attorney Rebekah Ricketts prosecuted the case.
Court Prohibits Dallas Wellness Center from Touting ‘Ozone Therapy’ as COVID-19 TreatmentRead the Press Release
A federal court entered a permanent injunction halting a purported “ozone therapy” center in Dallas from offering unproven treatments for COVID-19, U.S. Attorney Erin Nealy Cox announced today.
In a civil case filed in U.S. District Court for the Northern District of Texas, the government alleged that the defendants, Purity Health & Wellness Centers and one of the firm’s principals, Jean Juanita Allen, fraudulently promoted so-called ozone therapy as a treatment for COVID-19.
The defendants agreed to be bound by a permanent injunction barring them from representing that ozone could be used to treat or cure COVID-19. The order was entered Friday morning by U.S. District Judge Sam A. Lindsay.
“This defendant preyed on public fear, peddling bogus treatments that had absolutely no effect against COVID-19,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “As we’ve said in past COVID-19 civil cases: The Department of Justice will not permit anyone to exploit a pandemic for personal gain.”
“The Department of Justice will not stand by and permit the fraudulent promotion of supposed COVID-19 treatments that do no good and that could be harmful,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “We are working with law enforcement and agency partners to stop those who attempt to profit by selling useless products during this pandemic.”
According to court filings, Ms. Allen told a caller posing as a potential customer that although ozone could be dangerous, Purity’s treatment was safe even for children, would sanitize anything, and would eradicate viral or bacterial infections.
The court filings alleged that Ms. Allen claimed Purity’s ozone treatments – which she asserted would increase oxygen in the blood, making it impossible for viruses to manifest – were 95 percent effective even for someone who had tested positive for COVID-19. She claimed a team of “doctors” had recommended an “ozone steam sauna” for someone with COVID-19.
On Instagram, Purity Health & Wellness claimed ozone was the “only prevention” for COVID-19 and insisted the treatment could “eradicate” the virus. The center also claimed ozone could combat other deadly diseases, including cancer, SARS, and Ebola.
“We will not allow anyone to illegally profit by exploiting the fear and anxiety related to the COVID-19 pandemic,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI and our partners are working together every day to prevent, detect, and dismantle COVID-19 fraud.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Stacy Amin, Food and Drug Administration Chief Counsel. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans with unproven treatments.”
The enforcement action was prosecuted by Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kenneth Coffin of the U.S. Attorney’s Office for the Northern District of Texas. Assistant U.S. Attorney Fabio Leonardi is the COVID-19 Fraud Coordinator for the Northern District of Texas. The case was investigated by the FBI’s Dallas Field Office and the U.S. Food and Drug Administration Office of Criminal Investigations.
The claims made in the complaint are allegations that the United States would have had to prove if the case had proceeded to trial.
For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus or https://www.justice.gov/usao-ndtx/report-covid-19-fraud.
Court Prohibits Dallas Health Center from Touting “Ozone Therapy” as a COVID-19 TreatmentRead the Press Release
A federal court entered a permanent injunction halting a purported “ozone therapy” center in Dallas, Texas, from offering unproven treatments for coronavirus disease (COVID-19), the Department of Justice announced today.
In a civil complaint and accompanying court papers filed in U.S. District Court for the Northern District of Texas, the Department of Justice alleged that the defendants, Purity Health and Wellness Centers and one of the firm’s principals, Jean Juanita Allen, fraudulently promoted so-called ozone therapy as a treatment for COVID-19. The defendants agreed to be bound by a permanent injunction barring them from representing that ozone could be used to treat or cure COVID-19. The order was entered by U.S. District Judge Sam A. Lindsay in Dallas.
“The Department of Justice will not stand by and permit the fraudulent promotion of supposed COVID-19 treatments that do no good and that could be harmful,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “We are working with law enforcement and agency partners to stop those who attempt to profit by selling useless products during this pandemic.”
“This defendant preyed on public fear, peddling bogus treatments that had absolutely no effect against COVID-19,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “As we’ve said in past COVID-19 civil cases: the Department of Justice will not permit anyone to exploit a pandemic for personal gain.”
According to court filings, Allen told a caller posing as a potential customer that although ozone could be dangerous, Purity’s treatment was safe even for children, would sanitize anything, and would eradicate viral or bacterial infections.
The court filings alleged that Allen claimed Purity’s ozone treatments – which she asserted would increase oxygen in the blood, making it impossible for viruses to manifest – were 95 percent effective even for someone who had tested positive for COVID-19. She claimed a team of “doctors” had recommended an “ozone steam sauna” for someone with COVID-19.
On Instagram, Purity Health & Wellness claimed ozone was the “only prevention” for COVID-19 and insisted the treatment could “eradicate” the virus. The center also claimed ozone could combat other deadly diseases, including cancer, SARS, and Ebola.
“We will not allow anyone to illegally profit by exploiting the fear and anxiety related to the COVID-19 pandemic,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI and our partners are working together every day to prevent, detect, and dismantle COVID-19 fraud.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Stacy Amin, Food and Drug Administration Chief Counsel. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans with unproven treatments.”
The enforcement action was prosecuted by Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kenneth Coffin of the U.S. Attorney’s Office for the Northern District of Texas. Assistant U.S. Attorney Fabio Leonardi is the COVID-19 Fraud Coordinator for the Northern District of Texas. The case was investigated by the FBI’s Dallas Field Office and the U.S. Food and Drug Administration Office of Criminal Investigations.
The claims made in the complaint are allegations that the United States would have had to prove if the case had proceeded to trial.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Northern District of Texas, visit its website at www.justice.gov/usao-ndtx. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
‘10 Most Wanted’ Offender Sentenced to 21 Years for Firearm Offense Under Project GuardianRead the Press Release
A felon formerly on Texas’ 10 Most Wanted list has been sentenced to more than 21 years in federal prison on a federal firearms charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“A convicted domestic violence, drug, and violent crime offender, this defendant should never have had his hands on a gun,” said U.S. Attorney Nealy Cox. “This case sends a message to armed criminals: When you’re a three-time offender, unlawful possession can lead to decades behind bars.”
“Mr. Travis is a confirmed gang member with a history of drug, firearm and violent offenses spanning more than 20 years,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “My hope is the victims of his crimes find some solace his next 20 years will be spent behind bars.”
Terrol DeBaun Travis, 43, pleaded guilty in November 2019 to being a felon in possession of a firearm.
Mr. Travis was sentenced Friday to 262 months in federal prison by Senior U.S. District Judge John H. McBryde. He received a sentence enhancement under the Armed Career Criminal Act, which raises the maximum penalty for offenders with three previous convictions for a violent felony or serious drug offense.
According to plea papers, law enforcement officers observed Mr. Travis carrying a Ruger 9 mm handgun when attempting to effect his arrest at his residence in Fort Worth in July 2019.
The defendant – who was a fugitive with outstanding warrants for violating his parole – dropped the gun on his doorstep while attempting to flee. Moments later, he was apprehended about 10 feet from his front door. Agents later determined the pistol, which was loaded with a high-capacity magazine, was stolen.
A known member of the Crips street gang, Mr. Travis was convicted in 1995 and 2004 of felony possession with intent to deliver cocaine; in 2004 of arson; in 2014 of felony domestic violence; and in 2014 of aggravated assault with a deadly weapon in relation to a drug dispute.
“You seem to have an affinity for engaging in criminal conduct with a firearm,” Judge McBryde said at Friday’s sentencing hearing. “That is a disturbing fact because it shows a propensity for violence.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division; the U.S. Marshals Fugitive Task Force; the Fort Worth Police Department’s Fugitive Unit, and the Texas Department of Public Safety. Assistant U.S. Attorneys Frank Gatto and Levi Thomas prosecuted the case.
The prosecution was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws. The case is also part of the U.S. Attorney’s Domestic Violence Initiative, a push to fight domestic violence using federal firearm laws, which prohibits convicted abusers from possessing guns.
U.S. Attorney’s Office Files Enforcement Action Against Chiropractor Promoting Fake COVID-19 TreatmentRead the Press Release
The U.S. Attorney’s Office for the Northern District of Texas has obtained a temporary restraining order preventing a DFW chiropractor from touting sham treatments for COVID-19, announced U.S. Attorney Erin Nealy Cox.
According to a civil complaint filed Thursday, Dr. Ray L. Nannis, the 48-year-old proprietor of Richardson-based Optimum Wellness Solutions, advertised his homeopathic sublinguals as both a “C-19 vaccine” and a “treatment, reducing severity and duration of symptoms, should you test positive.”
(As government officials have widely publicized, the U.S. Food & Drug Administration has not identified any immunizations, treatments, or cures for the novel coronavirus to date.)
The Court order, handed down Friday by U.S. District Judge Jane J. Boyle, prevents Dr. Nannis from promoting worthless and potentially dangerous treatments and requires him to immediately take down all misleading internet posts.
In videos posted to Optimum’s Facebook account, Dr. Nannis promoted and offered to sell homeopathy that supposedly provided “up to 90 percent protection” from COVID-19, according to court documents.
“It will help us avoid being sick or if you do get sick, it’s going to make it very, very, very minimal,” the chiropractor declared in a video posted on April 1.
In a call with a government agent, Dr. Nannis insisted that his homeopathy could provide protection from the novel coronavirus —“more so than any other vaccine out there right now” — and claimed the so-called treatments would also minimize symptoms associated with contracting COVID-19. Although he cautioned that he could not “technically” describe the homeopathy as a “cure” for coronavirus due to FDA restrictions, he nevertheless stated that it “basically” was “for all intents and purposes.”
Dr. Nannis, who is a licensed chiropractor but lacks a medical degree or medical license, offered to sell the homeopathy sublinguals to the government agent for $95 per dose.
Alleging Dr. Nannis was facilitating a “predatory” ongoing wire fraud scheme to exploit the COVID-19 pandemic, the government sought injunctive relief under the Anti-Fraud Injunction statute.
The enforcement action follows Attorney General William Barr’s recent memo to U.S. Attorneys nationwide to prioritize the detection, investigation, and prosecution of unlawful conduct related to the pandemic.
“As a community, we cannot and will not allow individuals to peddle false hope during this pandemic in order to line their own pockets,” said U.S. Attorney Erin Nealy Cox. “By promoting these unsubstantiated ‘treatments’ for COVID-19, this defendant substituted profits for the safety of the public. We are gratified the Court acted quickly to put a stop to this egregious conduct.”
“The subject in this case abused his position of trust for his own personal benefit by preying on customers’ basic human condition, fear, by selling a fictitious COVID-19 remedy. This case should serve as a strong deterrent for those considering taking part in similar fraud schemes,” said William Smarr, Special Agent in Charge of the United States Secret Service’s Dallas Field Office. “The Secret Service, along with the United States Attorney’s Office for the Northern District of Texas, and in partnership with our federal, state and local counterparts will continue to combat COVID-19 related fraud. As this pandemic evolves and federal funds are distributed to those suffering from economic losses, the Secret Service will continue to detect, investigate and arrest criminals who attempt to prey on vulnerable citizens and businesses.”
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorneys Andrew Robbins and Kenneth Coffin are handling the case. Assistant U.S. Attorney Fabio Leonardi is the Coronavirus Fraud Coordinator for the Northern District of Texas.
Under the leadership of Attorney General Barr, the U.S. Attorney’s Office for the Northern District of Texas remains vigilant in detecting wrongdoing related to the COVID-19 pandemic, and is committed to investigating and prosecuting scammers who attempt to prey upon the public’s fear. The Justice Department urges members of the public who think they may have encountered an attempted scam involving COVID-19 to contact the National Center for Disaster Fraud (NCDF) by phone at 1-866-720-5721 or via email at [email protected].
For more information, please visit: https://www.justice.gov/usao-ndtx/report-covid-19-fraud.
NDTX Round-Up: April 3-9Read the Press Release
SENTENCING – CONSTANCE MARIE KELLY
On April 6, Constance Marie Kelly, 56, was sentenced via VTC to 46 months for conspiracy to commit wire fraud for her role in a $1.4 million real estate title insurance scheme. Kelly, a former employee of real estate title company American Title, admitted that she and codefendant Leonard James McMorris fraudulently transferred more than $1.4 million from American Title’s escrow accounts into bank accounts belonging to Mr. McMorris. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David Jarvis.
GUILTY PLEA – SOLOMON EMAKOJI
On April 6, Solomon Emakoji, 35, pleaded guilty to engaging in monetary transactions in property derived unlawful activity. Emakoji and an associate operated a “romance scheme” to defraud and obtain money by false pretenses. They created fake profiles on popular social media platforms, online games or apps, and dating websites to lure lonely women and men into romantic relationships. The perpetrators then would begin requesting money from the victims. Emakoji received a total of $89,185. As part of the fraud, Emakoji conspired with money agents to receive funds from victims and send it overseas via wire transfer to Nigerian bank accounts. Emakoji faces up to 10 years in federal custody. This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Nancy Larson.
SENTENCING – ALBERTO MENDOZA-ESPINOZA
On April 8, Alberto Mendoza-Espinoza, 39, was sentenced via VTC to 20 months for illegal reentry after removal from the United States. In March 2019, Mendoza-Espinoza, a non-U.S. citizen, was found living in the United States illegally. Previously, he had been deported and removed from the United States in April 2013. This case was investigated by Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Donna Max.
GUILTY PLEA – CHANSELLOR ORMON HILL
On April 8, Chansellor Ormon Hill, 25, pleaded guilty to sexual exploitation of a child. Hill entered the family restroom at the City of Grapevine’s Recreation Center. Inside the restroom, Hill induced a minor child to take sexually explicit photos. Using his Apple iPhone, Hill produced images of the unclothed minor later found in his possession. Hill faces up to 30 years in federal custody. This case was investigated by the Grapevine Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Middle School Teacher Charged with Exploiting Children on KikRead the Press Release
A Fort Worth middle school teacher has been charged with child exploitation after using a popular chat app to share child pornography, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Stephen Travis Corkill, an 35-year-old seventh grade teacher at Marine Creek Middle School in Fort Worth, was charged via criminal complaint with transporting a depiction of a minor engaged in sexually explicit conduct via interstate commerce. He made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton Wednesday morning.
According to charging documents, Mr. Corkill allegedly used Kik, a messaging app popular among teenagers, to share an explicit image of a young girl.
Kik automatically flagged the image as having a hash value associated with known child pornography, and, after verifying the image was indeed pornography, reported it to law enforcement. Agents then subpoenaed the subscriber information for the IP address associated with the upload, and traced it back to Mr. Corkill.
A search of Mr. Corkill’s residence revealed an iPhone with Kik installed. Under questioning, Mr. Corkill allegedly acknowledged he was the sole owner of the Kik account, which he said he used to view child pornography.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Corkill is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Flower Mound Police Department, Fort Worth Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Dallas Woman Sentenced via VTC for $1.4 Million Wire FraudRead the Press Release
A Dallas woman was sentenced via video teleconference to 46 months in federal prison for her role in a $1.4 million real estate title insurance scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Hers was the first VTC sentencing hearing in federal court in Dallas since the COVID-19 pandemic broke out.
Constance Marie Kelly, 56, pleaded guilty in November to conspiracy to commit wire fraud. She was sentenced Monday morning by Chief U.S. District Judge Barbara M.G. Lynn, who held the hearing via VTC.
“This defendant, who defrauded her employer out of more than a million dollars, was sentenced via video teleconference,” said U.S. Attorney Erin Nealy Cox. “We are gratified the Court is working with our office to ensure justice marches on, even amidst a pandemic.”
According to plea papers, Ms. Kelly, a former employee of real estate title company American Title, admitted that she and codefendant Leonard James McMorris fraudulently transferred more than $1.4 million from American Title’s escrow accounts into bank accounts belonging to Mr. McMorris. Between 2002 and 2007, Ms. Kelly admitted, she initiated at least 51 wire transfers and wrote 11 checks to fraudulently disburse the money from an American Title account at Compass Bank in Alabama.
Mr. McMorris had previously pleaded guilty to conspiracy to commit wire fraud and was sentenced in November 2016 to 30 months in federal prison.
The defendants are jointly and severally liable for more than $1.4 million in restitution.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney David Jarvis prosecuted the case.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
The U.S. Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19.
The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“Now, more than ever, we’re grateful to the many law enforcement officers on the front lines of our fight against violent crime. The Department of Justice is proud to support the agencies keeping the peace during this pandemic,” said Erin Nealy Cox, United States Attorney for the Northern District of Texas.
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received.
Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553.
For more information about the U.S. Attorney’s response to the COVID-19 pandemic, please visit: https://www.justice.gov/usao-ndtx/report-covid-19-fraud.
Two-Time Lubbock Bank Robber Pleads GuiltyRead the Press Release
A Lubbock man has pleaded guilty to robbing Lubbock’s City Bank and Aim bank, announced U.S. Attorney Erin Nealy Cox.
Matthew C. Courtney, 48, pleaded guilty to two counts of bank robbery by force, violence, or intimidation before U.S. Magistrate Judge D. Gordon Bryant, Jr. on March 25.
According to plea papers, on February 21, Courtney admits that he entered City Bank in Lubbock wearing sunglasses and a black jacket with a fur-lined hood covering his head. When asked by a teller to remove the hood, Courtney refused and handed the teller a withdraw slip with the word written – “robbery.” The City Bank teller surrendered money to Courtney and he exited though the North end of the bank.
Lubbock Police were able to obtain a latent fingerprint from the blue withdraw slip which matched Courtney.
On February 24, Courtney admits he entered Aim Bank in Lubbock and approached a teller station with paperwork, cardboard, and a black bag. Courtney wrote on the cardboard “you’re getting robbed.” The Aim Bank teller put money into Courtney’s black bag which was positioned on the bank counter. As he exited, Courtney grabbed two of the teller’s business cards.
According to court documents, Lubbock Police Department determined that Courtney was located at Lubbock’s Embassy Suites hotel. Courtney admits he paid for the hotel room in cash approximately an hour after the Aim Bank robbery. When Lubbock Police searched the Embassy Suites hotel room, they recovered two black jackets matching the description of both bank robberies, cash inside a black hair dryer bag, and the Aim Bank teller’s business card floating in the toilet.
Lubbock Police Department received information that Courtney had moved to Lubbock’s Hilton Garden Inn. When officers arrived, they spotted a grey passenger car sitting near the front entrance of the hotel with its lights on. Courtney was in the front passenger seat with his head down. He had four $100 bills sitting in his lap and another $225 in cash in his wallet.
Courtney is facing up to 40 years in federal prison, $500,000 fine, and two three-year terms of supervised release. The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting this case.
Wichita Falls Man Charged for Threatening to Shoot U.S. Speaker, Government OfficialsRead the Press Release
A Wichita Falls man who posted threats about killing Speaker of the U.S. House of Representatives and other government leaders has been charged following an investigation by the FBI’s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Gavin Weslee Blake Perry, 27, was charged via criminal complaint with transmitting a threatening communication in interstate commerce. He made his initial appearance before Magistrate Judge Hal R. Ray on Thursday.
According to the complaint, a concerned citizen notified the Wichita Falls Police Department that Mr. Perry allegedly posted threats on a Facebook account named “Gavinwbperry.”
“If youre a dem or apart of the establishment in the democrats side I view you as a criminal and a terrorist and I advise everyone to Go SOS [shoot on sight] and use live rounds,” he allegedly posted on March 23. “This is not gonna change until we attact NSA the DOJ the FBI and Any other agencies who want to get involved. Shoot to kill. This is a revolution.”
The Speaker “is apart of a satanic cult and so are the people who work closly with her. Dems of the establishment will be removed at any cost necessary and yes that means by death,” he allegedly posted later that same day.
When confronted by law enforcement at the time of his arrest, Mr. Perry admitted that the account belonged to him, and said he wanted to warn Americans to beware of the government, which he stated he believes to be “tyrannical.”
He then stated that the officers were violating his First Amendment right to free speech, a violation he felt was punishable by death. He also stated he intended to bond out of jail and planned to refuse to comply with any order to come to court. He said he does not recognize the authority of the federal government.
“The Department of Justice takes the security of our public servants seriously. Americans are entitled to voice their opinions – but we will not allow them to threaten our officials’ physical safety,” said U.S. Attorney Erin Nealy Cox. “This defendant’s threats against the Speaker and law enforcement agents are wholly inexcusable, and we look forward to bringing him to justice.”
“The defendant threatened the life of an elected official and that will not be tolerated. The FBI and our law enforcement partners work hard every day to protect our citizens from harm,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Thank you to our partners at the Wichita Falls Police Department for assisting in this investigation. Thank you as well to the concerned citizen who reported the online threat. We ask that everyone continue to report suspicious activity to law enforcement.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Perry is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to five years in federal prison.
The FBI Wichita Falls Resident Agency’s Safe Streets Taskforce and the Wichita Falls Police Department conducted the investigation with the assistance of the U.S. Capitol Police. Assistant U.S. Attorney Rob Boudreau is prosecuting the case.
NDTX Round-Up: March 13-19Read the Press Release
GUILTY PLEA – TRACY MIRANDA
On March 16, Tracy Miranda, 19, plead guilty to aiding and abetting foreign travel in aid of racketeering. In 2019, a group of Mexican drug traffickers were importing methamphetamine in crystal and power form into the United States. One of the importers was Eduardo Ruiz-Mendoza. Ruiz-Mendoza directed Miranda to travel to McAllen to pick up methamphetamine which was concealed in audio speaker boxes after it was smuggled into the United States. Miranda picked up the speaker boxes which contained the methamphetamine then gave them to a DEA cooperating individual. Miranda faces up to five years in federal custody. This case was investigated by the DEA. Assistant U.S. Attorney Suzanna Etessam is prosecuting this case.
GULITY PLEA – JONATHAN KELLY SCOTT
On March 17, Jonathan Kelly Scott, 33, plead guilty to felon in possession of a firearm and possession with the intent to distribute a controlled substance containing methamphetamine. During execution of a search warrant, Scott ran by foot from Dallas from the rear of the house where he was located through several neighbors’ yards. Scott was followed and filmed from above by Dallas Police helicopter until he was arrested. In the house, officers recovered numerous firearms, methamphetamine, phencyclidine, cocaine, heroin, and alprazolam. Prior to this arrest, Scott had been convicted of three felony drug crimes. Scott faces up to life in federal custody. The case was investigated by the ATF and the Dallas Police Department. Assistant U.S. Attorney John Boyle is prosecuting the case.
SENTENTENCING – PAUL AUSTIN JONES
On March 19, Paul Austin Jones, 39, was sentenced to 720 months in federal custody after pleading guilty to two counts of sexual exploitation of children. In October 2018, Jones contacted and offered to pay Rita Rose Everett, a local escort, for the opportunity to engage in sexual acts with her approximately and her eleven month old daughter. Jones met Everett in a Tarrant County hotel and used his cell phone to film sexually explicit conduct with Everett and the minor. In February 2019, Jones again created another sexually explicit video in which he filmed himself performing sex acts on a twenty-two month old toddler. This case was investigated by HSI and North Richland Hills Police Department. Assistant U.S. Aisha Saleem is prosecuting the case.
Texas Cajun Restaurant Owner Pleads Guilty to Employing Illegal WorkersRead the Press Release
A Big Spring restauranteur has pleaded guilty to employing undocumented immigrants, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Voum Chhuon, 45, owner of Texas Cajun in Big Spring, Texas, pleaded guilty to harboring illegal aliens and unlawful employment of illegal aliens before U.S. Magistrate Judge John Parker on March 19.
According to plea papers, Chhuon admits he employed illegal labor for his personal financial gain.
Department of Homeland Security (HSI) received a tip from the Howard County Sherriff’s Office that Chhuon was employing illegal aliens at the Texas Cajun. After investigation, HSI agents learned that Chhuon that was paying individuals in his kitchen in cash while the waiters were paid by paycheck.
Officers with the Big Spring Police Department and the Howard County Sherriff’s Office conducted a traffic stop of two Texas Cajun cooks, Simon Hernandez-Bautitsta and Justino Antonio-Martinez. ICE officers determined that Antonio-Martinez and Hernandez-Bautitsta were in the United States illegally and subject for removal.
During interviews with Antonio-Martinez and Hernandez-Bautitsta, they stated that Chhuon knew they were in the United States illegally and not authorized to work. Both men were paid in cash once per week and lived with Chhuon in his residence in Big Spring.
While owning the Texas Cajun, Chhuon unlawfully hired Sergio Martinez-Martinez, Julio Esteban Perez-Florez, Jose Manuel Castillo-Hernandez, Sergio Ramiro Avila-Perez, Simon Hernandez Bautitsta, Justino Antonio Martinez, Lazaro Zepeda-Rocha, and Primitivo Hernandez-Amezquita without filling out any paperwork or requesting any documentation as to legality of residence in the United States or to work.
Once unlawfully hired, Chhuon would provide the illegal aliens room and board at his Big Spring residence and transportation to the Texas Cajun.
From March 2015 until his arrest, Chhuon made a total revenue of $2,985,631 for a monthly average of approximately $82,000 by operating the restaurant with illegal labor. HSI forensic accountants determined Chhuon transferred $137,801 from his Texas Cajun business account to pay off a personal mortgage on a residence located in Pearland, Texas.
Chhuon is facing up to 10 years in federal prison and a $250,000 fine. Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Stephen Rancourt is prosecuting the case.
NDTX Round-Up: March 6-12Read the Press Release
GUILTY PLEA – ROMELIO RIVERON
On March 10, Romelio Riveron, 50, pled guilty to conspiracy to launder money and monetary instruments. Riveron purchased stolen jewelry, gold, and diamonds from individuals who were involved in four major robberies in Bedford, Texas, The Village, Oklahoma, Charlotte, North Carolina, and Houston, Texas. Riveron traveled to different locations around the United States to launder the stolen jewelry, gold, and diamonds. In sum, Riveron and his co-conspirators caused total losses of $2,561,112.41. Riveron faces 20 years in federal custody. This case was investigated by the FBI and prosecuted by AUSA Ryan Raybould.
GULITY PLEA – JUAN JESUS CERVANTES-DEL TORO
On March 10, Juan Jesus Cervantes-Del Toro, 47, pled guilty to possession with the intent to distribute methamphetamine. Cervantes-Del Toro met a confidential informant at a Dallas area auto body shop and sold the informant one kilogram of methamphetamine. During his arrest, law enforcement found numerous baggies containing methamphetamine and cocaine. Cervantes-Del Toro faces 20 years in federal custody. This case was investigated by Texas Department of Public Safety and prosecuted by AUSA Linda Requenez.
SENTENCING – JOEL VILLEGAS-PATIN0
On March 11, Joel Villegas-Patio, 62, was sentenced to 188 months in federal custody for possession with intent to distribute a controlled substance. Law enforcement used confidential sources to purchase heroin from Villegas-Patino on multiple occasions. When a search warrant was executed on his residence, Villegas-Patino had 4,893 grams of heroin in his possession. In the two month period that proceeded his arrest, Villegas-Patino had received a total of eight kilograms of heroin from his supply in Mexico. This case was investigated by Drug Enforcement Agency and prosecuted by AUSA John Kull.
GUILTY PLEA – CHRISTOPER PAUL STOUT
On March 12, Christopher Paul Stout, 41, plead guilty to possession with intent to distribute methamphetamine. Stout sold 14 grams of methamphetamine to a confidential source at his place of residence in Dallas. Shortly thereafter, Stout again sold 500 pills of clandestinely produced oxycodone. He faces up to 20 years in federal custody. This case was investigated Drug Enforcement Agency and prosecuted by AUSA Rachel Jones.
Unlicensed Gun Show Dealers Plead Guilty to Firearms OffensesRead the Press Release
Three firearm vendors who operated at DFW gun shows have pleaded guilty to unlicensed dealing, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. None of the defendants were conducting background checks on their buyers.
Raleigh Merriam Selby III, 56, Jack Don Sims, 57, and James Cary Bennett, 79, each pleaded guilty to engaging in the business of dealing in firearms without a license before Magistrate Judge Irma C. Ramirez Thursday morning.
“Today, we’re taking aim at unlicensed dealers who allow guns to fall into dangerous hands,” said U.S. Attorney Erin Nealy Cox. “I’m proud to bring this case under Project Guardian, the Attorney General’s gun violence reduction initiative. Hopefully, these pleas send a message to would-be offenders: If you violate federal firearms laws, you will be held accountable for the guns you’ve illegally injected into our communities.”
“Engaging in the business of selling firearms without a license circumvents regulations designed to identify prohibitors such as felony offenses, dishonorable discharge from military service or substance abuse," stated ATF Special Agent in Charge Jeffrey C. Boshek II. “The firearms transfers made by Mr. Bennett, Mr. Selby and Mr. Sims undermine community safety and hinder the investigation of firearms recovered at crime scenes.”
Federal law requires that dealers engaged in the business of dealing firearms – defined as repeatedly devoting time and attention to purchasing and reselling guns for monetary gain – obtain Federal Firearms Licenses and run background checks on potential buyers. (Hobbyists who sell weapons in one-off private transactions are not required to be licensed or to run background checks.)
According to plea papers, Mr. Bennett, Mr. Selby, and Mr. Sims were caught engaging in the business of selling firearms without a license during an undercover investigation at several Dallas-area gun shows, including Big Town in Mesquite, Will Rogers Coliseum in Fort Worth, and Market Hall in Dallas.
None of them entered potential buyers into the National Instant Criminal Background Check System, NICS.
The defendants admit that many of the guns they sold ended up in the hands of prohibited persons, including a man convicted of drug dealing and another convicted of willful cruelty to a child. Others were recovered at crime scenes, from California to Florida to Mexico.
Both Mr. Bennett and Mr. Sims admit they explicitly promoted that sales at their booths involved “no paperwork” – in other words, no background check. Mr. Bennett even admits that he dealt in .380 caliber pistols, “preferred firearms for trafficking to Mexico.”
Each defendant now faces up to five years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives conducted the investigation. Assistant U.S. Attorneys Brian McKay and Damien Diggs are prosecuting the cases, brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws.
NDTX Round-Up for March 10Read the Press Release
GUILTY PLEA – DARIFAH DAVIS
On March 3, Darifah Davis, 36, pled guilty to theft of government funds. For nearly three years, Davis filed for and was awarded disability insurance benefits. She falsely claimed to not be working during this time, and as a result, received over $51,000 in Disability Insurance Benefits that were not due to her. She faces up to a year in federal custody. This case was investigated by Social Security Administration and is prosecuted by AUSA Danielle Jones.
GUILTY PLEA – CHARLES AUBREY HURT
On March 3, Charles Aubrey Hurt, 63, pled guilty to felon in possession of a firearm. He was previously imprisoned for 3 years for possession of methamphetamine and 7 years for unauthorized use of a motor vehicle. He admits to distributing over 500 grams of methamphetamine in late 2019. Law enforcement searched his residence and found methamphetamine, heroin, and a firearm. Hurt agreed to the forfeiture of 7 firearms that were in his possession. He faces up to 10 years in federal custody. This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Texas Department of Public Safety and is prosecuted by AUSA George Leal.
SENTENCING - CARLOS HUMBERTO MATAMOROS VASQUEZ
On March 2, Carlos Humberto Matamoros Vasquez, 24, was sentenced to 5 years in federal custody for conspiracy to possess with the intent to distribute marijuana. Vasquez admitted to distributing marijuana from Bubba’s Beer, Smoke, Wine and Glasswerks. Law enforcement seized 33 pounds of marijuana and over $468,000 from the residence that he shared with his coconspirator. This case was investigated by Drug Enforcement Administration and the Mesquite Police Department and is prosecuted by AUSA George Leal.
GUILTY PLEA – ALEXANDER WALDVOGEL
On March 5, Alexander Waldvogel, 39, pled guilty to conspiracy to possess with intent to distribute a controlled substance. Waldvogel’s coconspirators purchased a marijuana dispensary in California and illegally shipped marijuana to Texas further illegal distribution. Waldvogel received marijuana shipments for further distribution. During one stage of the criminal operation, Waldvogel possessed approximately 108 kilograms of marijuana or marijuana derived products in his apartment. Waldvogel faces up to 5 years in federal custody for the offense. This case was investigated by the Federal Bureau of Investigations Los Angeles County Sheriff’s Office and prosecuted by AUSA Chad Meacham.
SENTENCING – JOSHUA BLAKE BROWNING
On March 5, Joshua Blake Browning, 38, was sentenced to 3 months for escaping from custody and possessing contraband in prison. Browning escaped a federal prison camp where he was serving time for the possession of a firearm in furtherance of a drug trafficking crime. Additionally, while serving his time in prison, Browning illegally possessed a mobile device. The case was investigated by the United States Marshall Service and is prosecuted by AUSA Suzanna Etessam.
SENTENCING – KYLE DANIEL PEARCY
On March 2, Kyle Daniel Pearcy, 26, was sentenced to 10 months in federal custody for aiming a laser pointer at an aircraft. Pearcy knowingly aimed a laser pointer at a helicopter operated by the Dallas Police Department after midnight in August 2019. He aimed the laser pointer five times for short bursts totaling 13 seconds, causing crew members to squint their eyes to protect their vision. The case record labeled this case as a “knuckleheaded act of stupidity.” This case was investigated by the Federal Bureau of Investigations and is prosecuted by AUSA John de la Garza.
Former Olney Police Chief Sentenced to 10 Years for Threatening Man at GunpointRead the Press Release
The former Acting Police Chief of Olney, Texas was sentenced today to 10 years in federal prison for threatening an individual at gunpoint, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Former Acting Chief Robert Michael Cross, 35, pleaded guilty in October to deprivation of rights under color of law following an investigation by the FBI’s Dallas Field Office.
“The city of Olney deserves police officers with respect for the rule of law,” said U.S. Attorney Nealy Cox. “Instead, this defendant abused his power, stripping citizens of their dignity for his own perverse ends. We are gratified he has been held to account for his despicable behavior.”
“Law enforcement officers are responsible for upholding the law and protecting their communities from harm. The defendant used his position of authority to prey on vulnerable individuals and exploit them for his personal gain,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI is committed to preserving trust in law enforcement. We will criminally pursue any officer that violates the law and abuses their oath to protect and serve.”
In plea papers and in other information provided in court, Mr. Cross admitted that shortly after arresting two individuals for aggravated robbery offenses, he coerced them into engaging in conduct for his own personal benefit, promising to have the criminal cases against them dismissed if they complied with his demands.
About a month after the arrest, on Dec. 20, 2017, he took them out in his vehicle to eat dinner and catch a movie. That evening, he brandished a pistol, threatening one victim with bodily injury and coercing the victim to engage in sex acts with another individual, thereby willfully depriving the victim of the Constitutional right to be free from unreasonable force by a law enforcement officer.
The Federal Bureau of Investigation’s Dallas Field Office and the Texas Rangers conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case. U.S. District Judge Reed C. O’Connor handed down the sentence.
Afghani Woman Convicted of Lying to Obtain U.S. Citizenship, U.S. PassportRead the Press Release
An Afghani woman has been found guilty of repeatedly lying to immigration officials in order to obtain U.S. citizenship, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a four day trial, a federal jury convicted Lilla Haiddar, 57, of two counts of false statement in applications for a passport and one count of unlawful procurement of naturalization.
According to evidence presented at trial, in May 2001, Ms. Haiddar – who was then using the name “Marufa Khashim Surgul” and a different date of birth – visited the U.S. Embassy in Tashkent, Uzbekistan and obtained a transit visa for herself and her two minor children that allowed them travel through New York City en route to Canada.
However, on June 3, 2001, Ms. Haiddar, still using the Surgul identity, landed in New York and stayed, never boarding the outbound flight to Canada as scheduled.
Two months later, in August 2001, Ms. Haiddar applied for asylum at the then Immigration and Naturalization Services (“INS”) asylum office in New York City.
From that day forward, Ms. Haiddar used the Haiddar identity and date of birth to obtain asylum from an Immigration Judge, to obtain lawful permanent resident status from United States Citizenship and Immigration Services (“USCIS”), and then ultimately United States citizenship from USCIS in October 2011.
During this ten year process, Ms. Haiddar, who would go on to become an employee of Prospect Airport Services at DFW International, never disclosed her Surgul identity, never disclosed she had received a transit visa to enter the U.S., and instead claimed she entered the U.S. by walking across the Texas/Mexico border.
Five days after being naturalized as a U.S. citizen, Ms. Haiddar, still using the Haiddar identity and date of birth, applied for and obtained a U.S. passport. In the passport application, Ms. Haiddar failed to disclose her Surgul identity.
The U.S. Department of State’s Diplomatic Security Service (DSS) uncovered the Surgul identity when the defendant sought to renew her passport three years early. (It was full due to her numerous trips to the Middle East and surrounding countries.) They also uncovered the fact that she’d originally traveled into the United States on the transit visa, but never left.
Ms. Haddair faces up to 30 years in prison and a fine of up to $750,000. Sentencing is set for July 6, 2020 before U.S. District Judge Barbara M.G. Lynn. Ms. Haiddar has been ordered detained pending sentencing.
DSS conducted the criminal investigation. United States Citizenship and Immigration Service and Immigration and Customs Enforcement with the U.S. Department of Homeland Security assisted. Assistant U.S. Attorneys Tiffany H. Eggers and Erica Hilliard are prosecuting the case.
33 Charged with Meth ConspiracyRead the Press Release
Thirty-three individuals in the Dimmit, Texas area have been charged with conspiracy to distribute methamphetamine and other drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Nineteen of the defendants were arrested on Thursday, March 5 during a large-scale takedown coordinated by the FBI’s Dallas Field Office. Four defendants remain fugitives. Ten defendants were already in law enforcement custody on state charges.
A 38-count federal indictment, filed February 27, was unsealed today.
In addition to the drug charges, six defendants were charged with gun crimes, including possession of a firearm in furtherance of a drug trafficking crime, unlawful user of a controlled substance in possession of a firearm, and felon in possession of a firearm.
“Methamphetamine is a highly addictive drug that ravages communities. We will do everything we can to keep those peddling meth off our streets,” said U.S. Attorney Nealy Cox.
“The FBI remains committed to working with our partners to protect our communities from the scourge of methamphetamine and other dangerous drugs,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “In this case, we worked closely with the Castro County Sheriff’s Office, Hereford Police Department, Texas Department of Public Safety, and other law enforcement agencies over the course of several months in order to gather the evidence presented in this indictment.”
Those charged include:
• Jesus Manuel Garcia, aka “Don Chuy,” 58
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Noel Mandujano, aka “Noe” and “Oregon,” 48
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Robert Vera, 48
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Gustavo Rincon, aka “Tavo,” 43
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Ricky Dale Leavitt, aka “Big Rick,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Michael Diaz, aka “Mike,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Michael Reyes, aka “Rat,” 42
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Arturo Martinez, aka “Juan,” 41
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Steven Mendez, 36
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Johnny Gilbert Lopez, aka “Cannon,” 52
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Katrina Casas, 34
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Ricardo Reyes, Jr., aka “Little Ricky,” 32
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Roxanne Casas, 37
Charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine
• Cruz Nunez, aka “Cruz Mendez,” 56
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Priscilla Kay Caballero, 35
Charged with one count of conspiracy to distribute methamphetamine
• Susan Odette Stinnett, 32
Charged with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of unlawful user of a controlled substance in possession of a firearm (Ruger 9mm pistol)
• Denita Mirelez, aka “Denita Mireles,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• John David Ramirez, 40
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Ricardo Chavez, aka “KK,” 39
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Serviano Riojas, aka “Smokey,” 39
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face maximum sentences of up to 40 years, or life in some instances, in federal prison for the drug-related offenses, and up to 10 years for the firearm possession charges.
The investigation was conducted by the Federal Bureau of Investigation’s Dallas Field Office; the Drug Enforcement Administration’s Dallas Field Division; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division; ICE – Enforcement & Removal Operations; Castro County Sheriff's Office; Hereford Police Department; Texas Department of Safety; Amarillo Police Department; Dimmitt Police Department; Randall County Sheriff's Office; Lubbock Police Department; Potter County Sheriff's Office; Lubbock County Sheriff's Office; and the Plainview Police Department. Assistant U.S. Attorney Sean Long is prosecuting the case.
This case was brought by the Organized Crime Drug Enforcement Task Force, an interagency partnership dedicated to reducing the supply of illegal narcotics in the United States and combating violence associated with the drug trade.
Two Former Texas Executives Charged with Fraud and Obstruction of JusticeRead the Press Release
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, were charged in a superseding indictment with conspiracy to commit wire fraud and bank fraud and obstruction of justice.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group in Washington, D.C., made the announcement.
Beth Ellen DeGroot, 60, and Harley E. “Buddy” Barnes III, 61, both of Plano, Texas, were charged with one count of conspiracy to commit wire fraud and bank fraud and one count of obstruction.
Barnes and nine other individuals had been previously indicted by a Dallas grand jury for their alleged roles in a high-yield investment fraud scheme involving EarthWater. To induce victims to purchase EarthWater stock, the defendants allegedly falsely promised victims the opportunity to earn a high-rate of return in a short period of time by offering them stock at a low price on what they falsely claimed was the eve of EarthWater’s initial public offering (IPO). In truth, EarthWater had no ability or actual plans to go public.
The defendants also allegedly lied to victims about how their money would be used, telling victims that nearly all of their money would be reinvested in EarthWater’s business (including to launch the IPO). In truth, the defendants allegedly stole most of the victims’ money and treated EarthWater’s accounts like their own personal piggybank. Barnes and his co-conspirators allegedly targeted elderly victims, defrauding them of millions of dollars. A trial date is currently scheduled for March 30, 2020.
The superseding indictment alleges that, following Barnes’ arrest for the alleged EarthWater fraud, DeGroot, who was EarthWater’s vice president, partnered with Barnes, who was EarthWater’s chief financial officer, to continue to use EarthWater to raise money, including by selling stock. In addition, Barnes and DeGroot conspired to use EarthWater to fraudulently obtain large paychecks from EarthWater’s payroll processor and to fraudulently obtain a substantial mortgage from an FDIC-insured financial institution. Specifically, Barnes and DeGroot allegedly misrepresented that EarthWater continued to operate and employ them as its top executives when, in reality, EarthWater had shut down and they were unemployed.
The superseding indictment further alleges that, after Barnes was arrested in connection with the EarthWater fraud, Barnes and DeGroot attempted to hide Barnes’s assets to prevent his money from being subject to forfeiture and fine in the event he were to be convicted.
The superseding indictment includes two counts of obstruction for which DeGroot was originally charged in October 2019. Among other things, DeGroot was charged with providing falsified records to a Dallas-based grand jury in order to conceal evidence relating to the conspiracy described above.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Dallas Drug Dealer of Murdering 19-Year-Old Sentenced to Life in PrisonRead the Press Release
A local drug dealer convicted of killing a Dallas teenager was sentenced to life in federal prison Tuesday evening following an investigation by the FBI’s Dallas Violent Gangs Safe Streets Task Force, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In November, following a four-day trial, a federal jury found Freddie Gilbert, 36, guilty of being a felon in possession of a firearm, possession with intent to distribute a controlled substance, discharging a firearm during a drug trafficking crime, and murder resulting from the use of a firearm in during a drug trafficking crime.
“Far too often, drug trafficking spurs horrific acts of violence,” said U.S. Attorney Nealy Cox. “In this case, a known cocaine dealer legally barred from possessing a weapon gunned down an innocent 19-year-old, then shoved her in the trunk like a piece of trash. He will spend the rest of his life behind bars.”
"Today's sentence should send a message to other violent drug dealers," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "The FBI will work with our law enforcement partners to protect the community through aggressive investigation and prosecution of violent offenders and drug traffickers.
According to evidence presented at trial, Mr. Gilbert, an avowed cocaine dealer, shot and killed 19-year-old Jacquisha Isaac on Oct. 29, 2017.
Forensic evidence showed that Mr. Gilbert shot Ms. Isaac through the head while she was sitting in the passenger seat of his car. He likely fired the fatal shot through the window, while standing outside the vehicle, then stashed her body in the trunk and took off, prosecutors said. Hours later, Mr. Gilbert was apprehended driving more than 110 mph down I-20.
Investigators identified Ms. Isaac’s blood inside the car, as well as on the clothing Mr. Gilbert was wearing when he was apprehended and on the revolver he used to kill the young girl. They also discovered a bullet he had purchased the day before covered in Ms. Isaac’s blood on the floorboard, gun residue on Mr. Gilbert’s hands, and his palm print on the trunk of the car where he’d stashed her body.
The Federal Bureau of Investigation’s Dallas Field Office, the Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, and Kaufman County Sheriff’s Office investigated the case. Assistant U.S. Attorneys P.J. Meitl and Tiffany Eggers prosecuted the case. U.S. District Judge Jane Boyle handed down the sentence.