Northern District of Texas
Press releases recorded for this federal judicial district.
NDTX Round-Up for March 3Read the Press Release
SENTENCING - SHERMAN LAKEITH ROSS
On February 24, Sherman Lakeith Ross, 45, was sentenced to 11 years and 5 months for possession with the intent to distribute heroin and aiding and abetting. Ross and his coconspirators used cell phones to communicate about their drug enterprise, and these communications were intercepted by the police. Law enforcement seized the drugs distributed from multiple customers, and after confirming that it was heroin, arrested Ross while he was in his probation officer’s office. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA John Kull.
SENTENCING – NEFTALI ABONZA
On February 26, Neftali Abonza, 30, was sentenced to 4 years and 2 months for conspiracy to commit money laundering. Abonza and his codefendants were involved in a conspiracy to distribute methamphetamine in both Texas and Florida. The coconspirators would smuggle cash in bulk and use bank funnel accounts to profit from the proceeds. Abonza was arrested when attempting to deliver two kilograms of methamphetamine. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and was prosecuted by AUSA Myra Boehm.
SENTENCING – HELEN KIM
On March 2, Helen Kim, 59, was sentenced to 3 years and 10 months in federal prison for racketeering. Kim was apprehended by law enforcement in November, after a sting operation at a Dallas hotel liberated a number of foreign-born commercial sex workers. She agreed to accept over $40,000 in exchange for providing illicit sex services to a group of out of town “businessmen” partying at a local hotel. These “businessmen” were actually undercover law enforcement officers. Kim admitted that she employed more than 10 commercial sex workers, many of whom lived at the brothels to to cater to customers at all times of the day and night. This case was investigated by the Dallas Police Department, the Texas Department of Public Safety, and Homeland Security Investigations and is prosecuted by AUSA Ryan Raybould and AUSA Cara Foos Pierce. Click here to learn more about this case.
Brothel Owner Targeted in Sting Operation Sentenced to Nearly 4 Years in Federal PrisonRead the Press Release
Brothel owner Helen Kim was sentenced yesterday evening to 46 months in federal prison on a racketeering charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ms. Kim, 59, was apprehended by law enforcement in November, after a sting operation at a Dallas hotel liberated a number of foreign-born commercial sex workers.
She pleaded guilty in August to one count of use of a facility of interstate commerce in aid of a racketeering enterprise involving prostitution.
“I am proud that our law enforcement partners poured significant resources into this sting operation in order to liberate the numerous women that Ms. Kim sold for sex,” U.S. Attorney Nealy Cox said following Ms. Kim’s guilty plea last fall. “We were determined to hold her accountable for her willingness to demean other women for financial gain.”
In plea papers, Ms. Kim – the owner of brothels “Pink One” and “Illusion Spa” – admitted that she agreed to take more than $40,000 in exchange for providing illicit sex services to a group of out of town “businessmen” partying at a local hotel.
Those “businessmen” were in fact undercover law enforcement. More than 50 officers from the Dallas Police Department, the Texas Department of Public Safety, and Homeland Security Investigations participated in the undercover operation, which involved agents posing as businessmen posted at the hotel bar and in rooms upstairs.
According to an indictment returned in November, Ms. Kim and her 36-year-old son had previously negotiated the businessmen’s private sexual liaisons with 20 to 25 women at a rate of $2,000 each, for a total of at least $40,000. The pair promised the “girlfriend experience,” and even allowed an undercover detective to meet several of the women at a local Sushi bar.
“The way this is set up,” her son allegedly told the undercover officer, “it could be considered human trafficking.”
In her plea papers, Ms. Kim admitted that she employed more than 10 commercial sex workers at her two brothels. Many of the women lived at the establishments, in order to cater to customers at all times of the day and night, she acknowledged.
Assistant U.S. Attorneys Ryan Raybould and Cara Foos Pierce are prosecuting the case.
NDTX Round-Up February 25Read the Press Release
GUILTY PLEA – CHRISTOPHER JO STRINGER
On February 20, Christopher Jo Stringer, 41, pled guilty to convicted felon in possession of a firearm, possession with the intent to distribute, and possession with intent to distribute methamphetamine. Stringer told to stop by police, who had been warned that a man was firing a gun at a vehicle. In response, Stringer raised his hands and pointed a pistol at his head for several seconds. He dropped the gun after being told to do so and was arrested without incident. The officers found methamphetamine on his person, and learned that Stringer had previously been convicted of felony burglary. He faces up to 16 years and 5 months in federal custody. This case was investigated by the Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by AUSA Danielle Jones.
SENTENCINGS – FELIX GIOVANNI RUIZ MENDOZA AND GUSTAVO RUIZ MENDOZA
On February 20, Felix Giovanni Ruiz Mendoza, 27, and Gustavo Ruiz Mendoza, 24, were sentenced to 18 and 19 years respectively for conspiracy to possess with intent to distribute methamphetamine. Law enforcement officers searched two residences in Balch Springs. One of these homes were used as a methamphetamine lab to convert methamphetamine to a crystalline form. The brothers admitted to distributing the methamphetamine in the Dallas are for two months and sending proceeds to Mexico. Officers seized nearly $13,000 and three firearms from the residences. These cases were investigated by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, Balch Springs Police Department, and IRS - Criminal Investigation and prosecuted by AUSA George Leal. To learn more about this case, click here.
SENTENCING – ROBERT LUCAS POTEET
On February 25, Robert Lucas Poteet, 30, was sentenced to a year and 6 months in federal custody for aiding in preparation and presentation of a false and fraudulent return. Poteet received tax paperwork from a coconspirator. Poteet reported a business loss of over $15,000, despite the coconspirator never saying that he owned a business. Poteet knew this was fraudulent, but nevertheless he submitted this return. This case was investigated by the Internal Revenue Service, Criminal Investigation and prosecuted by AUSA Douglas Allen.
Texas Couple Sentenced to Combined 140 Years in Child Exploitation CaseRead the Press Release
A husband and wife from Big Spring, Texas, were sentenced today to a combined 140 years in prison for crimes against multiple children.
U.S Attorney Erin Nealy Cox of the Northern District of Texas and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement. Homeland Security Investigations was the lead investigative agency.
Christopher James Regan, 38, a former shipping logistics manager, was sentenced to 90 years in prison after pleading guilty in October 2019 to conspiracy to produce child pornography and two counts of producing child pornography. Tanya Marie Regan, 35, was sentenced to 50 years in prison after her October 2019 guilty plea to conspiracy to produce child pornography and possession of prepubescent child pornography. The sentences, which were imposed by U.S. District Judge Mark T. Pittman of the Northern District of Texas, also included lifetime terms of supervised release for both defendants.
According to court documents, Christopher and Tanya Regan sexually abused and produced child pornography of multiple children, and they possessed and distributed child pornography to one another as well. The Regans also engaged in graphic discussions about the sexual abuse of children over several online platforms.
“These heinous crimes were conducted by sexual predators who posed a serious danger to children,” said United States Attorney Erin Nealy Cox. “I commend the swift and dedicated work of law enforcement, and am glad we were able to serve justice for the victims.”
“This is one of the most despicable cases of child exploitation and abuses of trust I have seen in my law-enforcement career,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “Even the most hardened criminal would likely take exception to this kind of heinous behavior. No sentence is long enough for these two individuals, and it sends a clear message to others who sexually exploit vulnerable children: We will come after you and hold you accountable for your reprehensible actions.”
In plea papers, the pair admitted that at Christopher Regan’s direction, Tanya Regan repeatedly videotaped herself sexually abusing children for Christopher Regan’s sexual gratification.
When law enforcement seized electronics from the home, several graphic videos had been deleted, but were still stored in the recycle bin or on unalloted space on various SD cards. Undeleted videos were stored in a computer folder titled “users\tanya_000\pictures\privatevids\minor.”
HSI’s office in San Angelo, Texas, the Howard County Sheriff’s Office and the High Technology Investigative Unit within the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case. Substantial assistance was provide by the HSI offices in Lubbock and Tyler, Texas, Tom Green County Sheriff’s Office, Texas Department of Public Safety, and the National Center for Mission and Exploited Children. Trial Attorney Kyle P. Reynolds of CEOS and Assistant U.S. Attorneys Ann Howey and Jeffrey R. Haag prosecuted 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 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.
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Texas Couple Sentenced to a Combined 140 Years in Prison for Conspiracy to Produce Child Pornography and Other Crimes Against ChildrenRead the Press Release
A husband and wife from Big Spring, Texas, were sentenced today to a combined 140 years in prison for crimes against multiple children.
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 Special Agent in Charge Ryan L. Spradlin of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Christopher James Regan, 38, a former shipping logistics manager, was sentenced to 90 years in prison after pleading guilty in October 2019 to conspiracy to produce child pornography and two counts of producing child pornography. Tanya Marie Regan, 35, was sentenced to 50 years in prison after her October 2019 guilty plea to conspiracy to produce child pornography and possession of prepubescent child pornography. The sentences, which were imposed by U.S. District Judge Mark T. Pittman of the Northern District of Texas, also included lifetime terms of supervised release for both defendants.
According to court documents, Christopher and Tanya Regan sexually abused and produced child pornography of multiple children, and they possessed and distributed child pornography to one another as well. The Regans also engaged in graphic discussions about the sexual abuse of children over several online platforms.
In plea papers, the pair admitted that at Christopher Regan’s direction, Tanya Regan repeatedly videotaped herself sexually abusing children for Christopher Regan’s sexual gratification.
When law enforcement seized electronics from the home, several graphic videos had been deleted, but were still stored in the recycle bin or on unallotted space on various SD cards. Undeleted videos were stored in a computer folder titled “users\tanya_000\pictures\privatevids\minor.”
HSI’s San Angelo, Texas, office, the Howard County Sheriff’s Office and the High Technology Investigative Unit within the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case. Substantial assistance was provide by the HSI offices in Lubbock and Tyler, Texas, Tom Green County Sheriff’s Office, Texas Department of Public Safety, and the National Center for Mission and Exploited Children. Trial Attorney Kyle P. Reynolds of CEOS and Assistant U.S. Attorneys Ann Howey and 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.
Drug Traffickers Glorified in Narco Ballad Sentenced to 37 Years in Federal PrisonRead the Press Release
Two drug traffickers from Michoacán, Mexico were sentenced to a combined 37 years in federal prison today after prosecutors admitted into evidence a song glorifying their criminal lifestyle, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Felix Giovanni Ruiz Mendoza, 27, pleaded guilty in November 2018 to conspiracy to possess with intent to distribute methamphetamine and was sentenced today by U.S. District Judge Sam A. Lindsay to 18 years imprisonment. His younger brother, coconspirator Gustavo Ruiz Mendoza, 24, pleaded guilty in January 2019 to the same charge and was sentenced today to 19 years imprisonment.
The brothers, who were in the United States illegally at the time of their arrests, were found in control of more than 90 kilograms of meth with a wholesale value of approximately $500,000 in June 2018.
In plea papers, the Ruiz Mendozas admitted they conspired to prepare and deal drugs out of two residences in Balch Springs, Texas. The elder brother admits that he used one property as a “methamphetamine conversion lab” and the other as a meth distribution house, and that some of the money he made from dealing was sent to Mexico to cover importation fees.
At the sentencing hearing today, prosecutors played a narco corrido, a narrative ballad used by the cartels to glorify their violent criminal lifestyle. The song, Guiovani Ruiz (listen here), is written from the perspective of the elder Mr. Ruiz Menodza, and details the law enforcement raid of his meth house and ensuing imprisonment:
“The FBI, SWAT, police and other government dogs fell upon me,” the song says in Spanish. “I will pay them for my crime.”Experts at the sentencing testified that the band – which is not accused of criminal activity – likely had to get permission from the at least one of the cartels in control of the area around Michoacán in order to write and perform the piece, which the drug traffickers used as propaganda glamorizing their way of life. (Cartel control of Michoacán has shifted back and forth over the years between La Familia Michoacán, Los Caballeros Templarios, Los Viagras, and Cartel Nueva Generación de Jalisco, or CJNG.)
The Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, Balch Springs Police Department, and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney George Leal prosecuted both cases.
The cases are part of an Organized Crime Drug Task Force (OCDETF) investigation. The OCDETF program was established in 1982 to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
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NDTX Round-Up February 18Read the Press Release
GUILTY PLEA – ROBERT ELMER KERR
On February 4, Robert Elmer Kerr, 49, pled guilty to receipt of child pornography. A Special Agent was able to locate the received files at an IP address in Irving. When local law enforcement conducted the warranted search, they found Kerr with a powered-on laptop that had recently accessed child pornography. Kerr faces up to 20 years for his crimes. This case was investigated by the Federal Bureau of Investigation and the Irving Police Department and prosecuted by AUSA Camille Sparks.
SENTENCING – OMAR HAMMOOD
On February 10, Omar Hammood, 38, was sentenced to 3 years and 9 months in federal custody and $330,000+ in restitution for the crime of preparing false tax returns. Hammood prepared and presented a false Income Tax Return on behalf of another person. In fact, Hammood made a business of submitting false tax returns and concealed the receipts of this business from the IRS. Additionally, Hammood booked a trip to the Middle East after being indicted and hearing his conditions for pre-trial release, in violation of the Court’s order. This case was investigated by the Internal Revenue Service and prosecuted by AUSA Ryan Raybould.
GUILTY PLEA – OMA MICHEL UNGU
On February 12, Oma Michel Ungu, 61, pled guilty to preparation of false tax returns. Ungu owned and operated an income tax preparation business known as Super Professional Tax Service. He faces up to 5 years in federal custody. The tax return prepared by Ungu on behalf of his coconspirator falsely claimed unreimbursed business expenses for 23,000 miles. Ungu was aware that the mileage claimed was false and fraudulent, nevertheless he willfully included this statement on the return to decrease his coconspirator’s tax liability. This case was investigated by the Internal Revenue Service, Criminal Investigation and prosecuted by AUSA Douglas Allen.
GUILTY PLEA - LONG VO
On February 11, Long Vo, 41, pled guilty to conspiracy to use a facility of interstate commerce in aid of a racketeering enterprise. Vo oversaw the operation of Relax2013, a studio that was maintained to provide commercial sex to men. He posted online advertisements, scheduled appointments, ensured both customers and workers were not law enforcement, and collected $1 million in cash these enterprises. Vo additionally “tested out” these sex workers before hiring. He faces up to 5 years in federal custody for his crimes. This case was investigated by Homeland Security Investigations, Texas Department of Public Safety, and the Office of the Attorney General of Texas and prosecuted by AUSA Ryan Raybould.
SENTENCING – ALEJANDRO PIERDO-BUSTOS
On February 10, Alejandro Pierda-Bustos, 44, was sentenced to 22 years and 4 months in federal custody for possession with the intent to distribute methamphetamine. Piedra-Bustos was found to have distributed and received methamphetamine. He ensured the coconspirators paid for their requested drugs in a timely manner. On one occasion, law enforcement officers stopped his coconspirator shortly after receiving two kilograms of methamphetamine from Piedra-Bustos and found the drugs under the driver’s seat. Law enforcement also intercepted a courier who had crossed the US-Mexico border with the intention of delivering 60+ kilograms of methamphetamine to Piedra-Bustos in Dallas. This case was investigated by Group One of the North Texas Strike Force and prosecuted by AUSA John Kull.
SENTENCING – CESAR NOEL RUBI-ROJAS
On February 10, Cesar Noel Rubi-Rojas, 31, was sentencing to 17 years and 5 months in federal custody for intent to distribute methamphetamine. Intercepted calls revealed that Rubi-Rojas was planning to purchase more drugs from a coconspirator. After completing the drug deal, police officers stopped the Expedition that Rubi-Rojas was driving and seized two kilograms of methamphetamine, two firearms, and $3,700+ in drug proceeds. Rubi-Rojas admitted to frequently acting as a driver in these situations. This case was investigated by Group One of the North Texas Strike Force and prosecuted by AUSA John Kull.
64 White Supremacists Sentenced to a Combined 820 Years in Federal PrisonRead the Press Release
Sixty-four individuals with ties to various white supremacist gangs have been convicted and sentenced to a combined 820 years in federal prison following an investigation led by the Texas Department of Public Safety, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
This marks the second round of sentencings in what is believed to be the nation’s largest prosecution of white supremacist gang affiliates. In the first round, announced in August 2017, 89 defendants were convicted and sentenced to a combined 1,070 years in federal prison.
The 64th and final defendant in this round, 51-year-old Garry Cody Jones, was sentenced Thursday by U.S. District Judge Sidney A. Fitzwater to more than 11 years’ imprisonment on a charge of possession with intent to distribute methamphetamine.
All together, this round’s defendants – members or affiliates of white supremacists gangs including Aryan Circle, Aryan Brotherhood, the Peckerwoods, Soldiers of Aryan Culture, and the Dirty White Boys – were sentenced for trafficking more than 1,600 kilos of meth, 59 firearms, and various other drugs, including cocaine and heroin, between 2015 and 2018, according to court records.
Several of the defendants, including Ralph Adams, aka “Evil,” and Jerry Lunsford, aka “Looney,” kidnapped, threatened, and assaulted individuals they believed had stolen their drug proceeds. One defendant, Justin Mark Nelson, aka “Nazi,” even admitted to using a hatchet to amputate a victim’s finger in retribution for a purported drug debt. Another defendant, Joshua Lane, who sports a large tattoo of Adolf Hitler on his head, attempted to run over officers during his arrest.
“Not only do white supremacist gangs endorse repugnant ideologies, they also facilitate a violent drug and gun trade, putting our citizens in grave danger,” said U.S. Attorney Erin Nealy Cox. “We were alarmed – but not necessarily surprised – at the quantities of drugs and firearms recovered during this investigation. The U.S. Attorney’s Office is committed to working with our law enforcement partners to dismantle these organizations, disrupt their criminal activities, and put their members behind bars.”
“Thanks to the hard work of our investigators and the diligence of the U.S. Attorney’s Office, 64 criminals are now off our streets and out of our communities,” said Texas DPS Regional Director Jeoff Williams. “Effective law partnerships are vital to operations like this and are instrumental in the making the state of Texas a safer place to live.”
The vast majority of defendants charged in this round, with charges announced in May 2018 following a massive takedown, had violent criminal histories. Combined, they had 587 prior convictions; certain defendants had as many as 28 prior convictions.
This investigation was led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) Gang Unit and the Dallas Police Department. The U.S. Marshal Service North Texas Fugitive Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, and the Garland Police Department assisted in the investigation.
The Texas Anti-Gang Center, or TAG, coordinated the law enforcement operation. The TAG serves as the unified headquarters for roughly 100 of the region’s most knowledgeable and experienced federal, state and local anti-gang investigators, analysts and prosecutors.
Assistant U.S. Attorney P.J. Meitl was in charge of these prosecutions.
NDTX Round-Up February 11Read the Press Release
SENTENCING - JEAN LOUI VARGAS-MALAVE
On January 31, Jean Loui Vargas-Malave, 29, was sentenced 10 years in federal custody for conspiracy to possess methamphetamine with the intent to distribute. Vargas-Malave agreed to smuggle controlled substances onto commercial airlines at the Dallas/Ft. Worth International Airport (DFWIA). He, along with coconspirators, bypassed security at the DFWIA and loaded what they believed to be methamphetamine onto an American Airlines flight to Newark, New Jersey. This case was investigated by the Federal Bureau of Investigation, Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department. This case was prosecuted by AUSA George Leal, AUSA John De La Garza, and AUSA John Kull.
GUILTY PLEA – HECTOR TORRES-GONZALEZ
On February 4, Hector Torres-Gonzalez, 44, pled guilty to aiding and abetting possession with the intent to distribute heroin. Torres-Gonzalez admitted to agreeing to distribute 24 kilograms of methamphetamine, 13 kilograms of heroin, and 91 grams of cocaine in April of 2019. Agents also found a pistol and $12,520 in Torres-Gonzalez’ possession. He faces up to 20 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Rachael Jones.
SENTENCING – AUSTIN DAVID REED
On February 3, Austin David Reed, 27, was sentenced to 15 years in federal custody for the crimes of carjacking and using, carrying, and brandishing a firearm during a crime of violence. Reed stole a 2006 Acura from a victim by threatening the victim at gunpoint. After stealing the car, Reed led the officers pursuing him on a dangerous chase. Please click here to hear more about this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department and was prosecuted by AUSA Ryan Raybould.
SENTENCING – JOHNNATTAN RAMIREZ
On February 3, Johnnattan Ramirez, 37, was sentenced to 25 years in federal custody and $182,942.96 in restitution for 3 counts related to robbery and 2 counts related to brandishing a firearm during a crime of violence. Ramirez was involved in three separate robberies of diamond and jewelry salesmen. Ramirez and his coconspirators would rent vehicles, conduct surveillance of the salesmen, and then apprehend their victims. The coconspirators would threaten the salesmen with guns and take their valuables, however on one occasion they also abducted a victim and took him to a nearby apartment complex. This case was investigated by the Federal Bureau of Investigations and prosecuted by AUSA Ryan Raybould.
SENTENCING – CRYSTAL DOUGLAS
On February 3, Chrystal Douglas, 35, was sentenced to 9 years in federal custody for maintaining a drug involved premises. Douglas allowed her coconspirator to conduct methamphetamine sales at her home in Arlington. In exchange, Douglas would receive personal use amounts of methamphetamine. Sometimes, Douglas was unaware of the amounts of methamphetamine being bought and sold in her house. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Shawn Smith.
Dallas Man Who Threatened to Shoot up Daycare Charged with Gun CrimeRead the Press Release
A father who threatened to shoot up a Dallas daycare has been charged with a gun crime, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Joshua Martinez, 28, was charged via criminal complaint with being a felon in possession of a firearm.
According to the complaint, Mr. Martinez – a felon convicted of robbery in 2010 – called his daughter’s mother on Feb. 6 and allegedly threatened to kill her. In a screenshot of the video call provided to law enforcement, Mr. Martinez could be seen brandishing a Glock handgun affixed to a laser/light apparatus.
The child’s mother told law enforcement Mr. Martinez had also allegedly threatened to shoot up his 4-year-old daughter’s daycare facility.
Following a high-speed chase through northwest Dallas, officers apprehended Mr. Martinez on a neighborhood side street. They then retraced the route the fleeing vehicle had traveled and found a Glock 22 – a weapon that matched the handgun in the screenshot of Mr. Martinez’s video call – on the roadway.
After waiving his Miranda rights, Mr. Martinez allegedly confessed to possessing the firearm, which had been reported stolen.
“This defendant allegedly threatened our city’s most precious, our most vulnerable,” said U.S. Attorney Nealy Cox. “A formerly convicted felon, he was not legally permitted to possess firearms. We’re thankful law enforcement was able to get this man and his gun off the streets before tragedy could strike.”
"The FBI-led Dallas Violent Gangs Safe Streets Task Force is a great example of how agencies working together can prevent violent crime in our communities," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The task force is focused on finding ways to effectively prevent individuals from committing acts of violence. This includes using federal charges when convicted felons continue to possess weapons even though they are prohibited from doing so."
A criminal complaint is merely an allegation of criminal conduct, not evidence. The defendant is considered innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws.
It is also part of the Project Safe Neighborhoods Initiative, a program that surges federal and local law enforcement resources to communities’ most violent neighborhoods in order to root out offenders and built positive relationships with victims and witnesses.
The Federal Bureau of Investigation’s Dallas Violent Gangs Safe Streets Task Force, the Dallas Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
MS-13 Gang Member Implicated in 9 Attempted Murders Sentenced to Life in Federal PrisonRead the Press Release
An MS-13 gang member implicated in nine attempted murders was sentenced yesterday to life in federal prison following an investigation by HSI, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rolan Ivan Hernandez-Fuentes, a.k.a. “Tasmania,” pleaded guilty in April 2019 to RICO conspiracy, and was sentenced Thursday afternoon by U.S. District Judge Jane J. Boyle.
Two of his coconspirators, Jerson Gutierrez-Ramos, a.k.a. “Sparky,” and Kevin Cruz, a.k.a. “Street Danger,” also pleaded guilty to RICO conspiracy and were sentenced to 40 years and 21 years imprisonment, respectively.
As members of MS-13 – a violent transitional gang with the creed, “kill, rob, rape, control” – the defendants were requited to commit acts of violence to maintain membership.
According to plea papers, all three were members of the MS-13 clique “Irving Loco Salvatruchas,” or IRC, which attempted to kill nine people and extort a tenth during six violent episodes in the Dallas area in 2017.
Both El Salvadorian citizens in the U.S. illegally, Mr. Hernandez-Fuentes, 22, and Mr. Gutierrez-Ramos, 21, admitted to participation in all six violent episodes. Mr. Cruz, 20, also in the U.S. illegally, admitted to participation in four.
“Their despicable motto says it all: ‘kill, rob, rape, control.’ MS-13 espouses a vicious disregard for human life,” said U.S. Attorney Nealy Cox. “When machete-wielding gang members terrorize our streets, they will be met with swift and certain justice. We are gratified the Court has put this defendant behind bars for the rest of his life.”
“Aside from justice being served for the many victims of violent crime at the hands of blood thirsty MS-13 gang members, this life sentence also demonstrates HSI’s capabilities and resolve to dismantle these transnational criminal organizations piece by piece,” said Ryan L. Spradlin, special agent in charge of Homeland Security Investigations Dallas. “We will not tolerate the presence of these vicious criminals in our communities and will continue to prioritize taking them down and putting them where they belong - behind bars!”
Per the defendant’s plea papers:
- On July 14, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 members travelled to an apartment complex in Dallas to kill an individual whom they believed belonged to a rival gang. At the complex, the MS-13 gang members — armed with machetes and knives — ambushed the victim and another man, intending to kill both. The gang members struck, stabbed and cut the victims, inflicting life-threatening injuries. One victim had his throat and chest sliced open, necessitating cardiac surgery and an extended hospital stay. The other victim sustained cuts and lacerations to his face and head. After the attack, Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
- On July 15, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 gang members attacked, robbed, and extorted a drug dealer in Irving. The gang contacted the victim under the guise of seeking heroin. Armed with the same machete from the night before, Hernandez-Fuentes later forced the victim to kneel by hitting him with the flat part of machete and then then cutting him with it. Gutierrez-Ramos then kicked the victim and another gang member took the heroin. Hernandez-Fuentes took a cell phone photo of the victim and told him that they could find him if he refused to pay the ILS clique an extortion fee, a “tax,” to deal drugs in their territory.
- On August 9, 2017, Hernandez-Fuentes, Gutierrez-Ramos, Cruz, and other MS-13 gang members attacked a victim whom they believed belonged to a rival gang at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered significant injuries, including stab wounds to his back and lacerations on several parts of his body, which left him hospitalized for three days.
- On August 19, 2017, Hernandez-Fuentes, Gutierrez-Ramos, Cruz, and other members of MS-13 attacked and robbed a victim whom they believed was a rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a Shell gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered significant injuries, including a fractured skull and bleeding from his brain, which required hospitalization.
- In late August, Hernandez-Fuentes, Gutierrez-Ramos, Cruz, and other MS-13 members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they were waiting to kill him with machetes and a shotgun. The victim ultimately refused to get out of his car when he arrived at the park, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they blocked the victim from leaving and confronted him with a shotgun. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim then drove away and escaped.
- On September 25, 2017, Hernandez-Fuentes, Gutierrez-Ramos, Cruz, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel. A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Irving Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case with Trial Attorney Julie Finocchiaro of the Department of Justice's Organized Crime and Gang Section.
- On July 14, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 members travelled to an apartment complex in Dallas to kill an individual whom they believed belonged to a rival gang. At the complex, the MS-13 gang members — armed with machetes and knives — ambushed the victim and another man, intending to kill both. The gang members struck, stabbed and cut the victims, inflicting life-threatening injuries. One victim had his throat and chest sliced open, necessitating cardiac surgery and an extended hospital stay. The other victim sustained cuts and lacerations to his face and head. After the attack, Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
Suspected Neo-Nazi Pleads Guilty to Gun CrimeRead the Press Release
A suspected neo-Nazi has pleaded guilty to a gun crime following an investigation by the FBI, 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.
Video unsealed by the Court yesterday evening 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.”
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 Focus on Nov. 4. Inside the vehicle, law enforcement 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.
“The Northern District of Texas is committed to keeping guns out of the hands of dangerous individuals,” said U.S. Attorney Nealy Cox. “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,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI will continue working with our partners to protect the communities we serve.”
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.
Propaganda videos admitted into evidence and released by the Court Monday – which spew hateful rhetoric against Jews – depict members of the AtomWaffen Division at self-described “hate camps” practicing hand-to-hand combat and shooting firearms.
“Race war now!” they cry, before one displays a Nazi salute.
The defendant now faces a sentence of up to 10 years in federal prison. He is slated to be sentenced on Thursday, April 23.
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. Attorneys Russell Lorfing and Stephen Rancourt are prosecuting the case.
The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a
prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.NDTX Round-Up February 4Read the Press Release
SENTENCING – DONNA WOODS
On January 30, Donna Woods was sentenced to 7 years and 3 months in federal custody and to paying $337,951.06 in restitution to the Federal Communications Commission for conspiracy to commit mail and wire fraud, and wire fraud. Woods had approved the granting of a federal telecommunications E-rate contract to a company called ADI Engineering which was owned by Woods’ coconspirator. Woods received $50,000 in exchange for her approval of ADI Engineering, a company known to have a shoddy record. She also falsely reported that ADI had correctly completed their job. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Federal Communications Commission Office of Inspector General and prosecuted by AUSA Russ Fusco and AUSA Nick Bunch. Click here to read more about this case.
GUILTY PLEA – ARTURO CALDERON
On January 28, Arturo Calderon, 26, pled guilty to making a false statement during the purchase of a firearm. Between February 2018 and February 2019, Calderon purchased numerous firearms from licensed vendors. During the purchase of these firearms, Calderon responded falsely to the question on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form that asks if the buyer is “the actual transferee/buyer of the firearms(s) listed on this form.” Calderon purchased at least 16 firearms that he then gave to an individual who covered the cost of the firearms, and then additionally compensated Calderon. Calderon faces up to 10 years in federal custody for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is prosecuted by AUSA Brian McKay.
SENTENCING – RAFAEL RUBI
On January 29, Rafael Rubi, 24, was sentenced to 17 years in federal custody for possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Rubi and his coconspirator were stopped for a traffic violation, and officers observed a firearm in plain view. Rubi is a convicted felon and prohibited from possessing a firearm. In the preceding week, Rubi had been involved in multiple drive-by shootings with the intention of extorting payment for damages in a car accident. A search warrant was executed at Rubi’s residence and officers recovered heroin, methamphetamine, cocaine, alprazolam, marijuana, a drug ledger, and two pistols. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA Rebekah Ricketts. Please click here to read more about this case.
SENTENCING – CIERA WASHINGTON
On January 27, Ciera Washington, 23, was sentenced to 5 years in federal custody for robbery. Washington waited in a vehicle as an escape driver, while her coconspirators stole 68 packs of cigarettes and $343 from a Valero gas station after striking the store clerk on the head with a firearm. The coconspirators were pursued by the police, and Washington led them on a high-speed chase, until she hit a curb. The coconspirators fled and escaped, however, Washington was apprehended as she was several months pregnant. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mesquite Police Department, and the Dallas Police Department and is prosecuted by AUSA Cara Pierce.
SENTENCING – JESSE BELL
On January 30, Jesse Bell, 26, was sentenced to 17 years in federal custody for felon in possession of a firearm, interference with commerce by robbery, and brandishing a firearm during a crime of violence. He and his coconspirator robbed a Valero gas station at gun point and struck the store clerk on the head with the pistol. He and his coconspirators then led police on a high-speed chase that eventually ended in Bell’s capture. It was revealed during trial that Bell had also sold firearms to an undercover agent, despite being a convicted felon. This is a Project Guardian case that was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mesquite Police Department. The case was prosecuted by AUSA Cara Pierce. Click here to read more about this case.
GUILTY PLEA – ELLIS JAY JOHNSON
On January 30, Ellis Jay Johnson, 42, pled guilty to possession with the intent to distribute methamphetamine. A cooperating individual working with the Hunt County Sheriff’s Department went to Johnson’s home and purchased methamphetamine. The individual was wearing a recording device, and the officers used that recording to obtain a warrant. When the warrant was executed, officers found three firearms and methamphetamine. He faces up to 20 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the Hunt County Sheriff’s Office and is prosecuted by AUSA Suzanna Etessam.
SENTENCING – JUAN CARLOS FARIAS-LOYA
On January 29, Juan Carlos Farias-Loya, 34, was sentenced to 8 years in federal custody for conspiracy to possess with the intent to distribute methamphetamine. Through a confidential source, the Drug Enforcement Administration learned that Farias-Loya met the individual at both a Marshalls and a residence to sell methamphetamine. Later, Farias-Loya and his coconspirators used a money remitter business to wire proceeds to Mexico. Federal agents executed a search warrant at the residence and found a methamphetamine recrystallization laboratory, 6 kilograms of methamphetamine, receipts for money sent to Mexico, and $180,000 in proceeds. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Suzanna Etessam.
Carjacker Sentenced to 15 Years in Federal PrisonRead the Press Release
An armed carjacker who led police on a wild chase across Northeast Dallas was sentenced today to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Austin David Reed, 27, pleaded guilty in September to carjacking and brandishing a firearm during a crime of violence.
According to plea papers, Mr. Reed admitted that while armed with a pistol, he used force and violence to steal a 2006 Acura in February 2019.
Law enforcement encountered Mr. Reed, who was wearing a bullet proof vest, at a hotel room in Dallas after receiving about a domestic disturbance.
According to an indictment, Mr. Reed stated he was “not going down like this,” and fled the scene, running through a wooded area and into a nearby neighborhood, where he carjacked the Acura.
He then led police on a high-speed chase, crashing the car through a neighborhood gate in an attempt to reach the road. After wrecking the Acura on a light pole, Mr. Reed exited the vehicle and ran into a nearby home. Inside, he brandished a knife and demanded car keys. When one of the home’s occupants confronted Mr. Reed with a firearm, he fled through the garage.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Ryan Raybould prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.
In Large-Scale Takedown, 12 Arrested, Charged with Gun and Drug CrimesRead the Press Release
Eight alleged gang members were arrested in a large-scale takedown Thursday, charged with gun and drug crimes following an investigation led by the DEA Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“357 Crips” gang members Dwight Alexander Frank, Paul Adron Freeman, Vernon Ray Stiff, Calvin James Thomas, Tyrel Demond Washington, Bernice Lee Woodson, Jr., Bryson Busby, and Michael McCoy were arrested Thursday and charged with conspiracy to possess with intent to distribute cocaine.
Four non-gang members – Alonzo Perez, Jr., Alonzo Perez, Sr., Beatriz Perez, and Max Davis – were also arrested and charged with related drug crimes.
The takedown, led by the DEA, began in the early morning hours Thursday, and stretched into the afternoon. The majority of the defendants were arrested at trap houses across the DFW metroplex, where agents seized roughly 2.5 kilograms of cocaine, 24 guns, and more than $300,000 in cash. (To date, the investigation has netted a total of approximately 7 kilos of cocaine, various other drugs, 37 firearms, and more than $500,000 in cash.
“There should never be any doubt that drug trafficking is not a victimless crime. These gang members sought to profit and expand their influence by peddling drugs throughout South Dallas. With the dismantlement of this organization, guns are no longer in the hands of these drug dealers and the drugs they sold are now off the streets. It was only through a tremendous partnership with the Dallas PD, the ATF, and many other area law enforcement agencies that Dallas is safer today than it was yesterday,” said DEA Special Agent in Charge Eduardo A. Chavez.
“We are grateful to the many law enforcement partners who collaborated to disrupt a drug trafficking ring,” said U.S. Attorney Erin Nealy Cox. “Cocaine continues to wreak havoc on our community and we will vigorously prosecute those that distribute this deadly drug.”
In addition to the conspiracy count, Mr. Woodson was charged with one count of possession with intent to distribute.
Ms. Perez, Jr., Mr. Stiff, Mr. Washington, and Mr. Woodson were also charged with maintaining drug-involved premises, as was Mr. Perez Jr.’s father.
Mr. Perez, Jr., Mr. Washington, and Mr. Woodson were also charged with being a convicted felon in possession of a firearm. Mr. Woodson was charged with possession of a firearm in furtherance of a drug trafficking crime.
Charges are merely allegations of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.
If convicted, the defendants face 10 years to life in prison on the conspiracy charge. Those charged with maintaining a drug involved premises face an additional 20 years; those charged with being a felon in possession of a firearm face an additional 10 years; and those charged with possession of a firearm in furtherance of a drug trafficking crime face an additional five years.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, Rockwall Police Department, Rockwall County Sheriff’s Office, Flower Mound Police Department, Farmer’s Branch Police Department, Garland Police Department, Hunt County Sheriff’s Office, Denton Police Department, Dallas County Sheriff’s Office, Grand Prairie Police Department, and Plano Police Department. The U.S. Marshals Service led the charge in tracking defendants and effecting arrests. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
Attorney General William P. Barr Names U.S. Attorney Erin Nealy Cox as Chair of Attorney General’s Advisory CommitteeRead the Press Release
Attorney General William P. Barr today announced that Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, has been elevated from Vice Chair to Chair of the Attorney General’s Advisory Committee (AGAC).
Attorney General Barr also announced Justin Herdman, U.S. Attorney for the Northern District of Ohio, will become the new Vice Chair.
“Erin Nealy Cox has shown herself to be a leader in the U.S. Attorney community, a fierce advocate for the rule of law who has spearheaded prosecution efforts targeting domestic abusers and other violent criminals,” said Attorney General Barr. “Justin Herdman has also been a leader at the forefront of the department’s fight against the deadly trade in fentanyl and other dangerous drugs. I am pleased to have them leading my AGAC team.”
U.S. Attorney Nealy Cox replaced former Chair, Jessie Liu who resigned this week as U.S. Attorney for the District of Columbia.
In addition, Attorney General Barr appointed U.S. Attorney John Bash to the Attorney General’s Advisory Committee.
The AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
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 Sentenced to 17 Years for Gun Crimes Under Project GuardianRead the Press Release
A firearms trafficker was sentenced to 17 years in federal prison after authorities tracked him down following an armed robbery, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The woman who acted as his getaway driver him was sentenced this week to five years in federal prison.
Jesse Bell, 26, pleaded guilty in July to being a felon in possession of a firearm, interference with commerce by robbery, and brandishing a firearm during a crime of violence.
Cierra Washington, 27, pleaded guilty in September to interference with commerce by robbery.
In plea papers, Mr. Bell – a formerly convicted felon – admitted that he and a coconspirator robbed a Valero gas station at gunpoint in June.
A store clerk, who was struck in the head with a pistol during the altercation, slipped a tracking device into the cash he handed over to Mr. Bell. Law enforcement used it to locate the car in which they fled, which led police on a high speed chase until hitting a curb.
Inside the truck, officers found a bag filled with the cash and tracker from the robbery as well as two firearms and an identification card belonging to Mr. Bell.
Police apprehended Ms. Washington, who was pregnant at the time of the robbery, immediately after she jumped out of the driver’s seat. They apprehended Mr. Bell weeks later.
At Mr. Bell’s sentencing hearing, the prosecutor revealed that despite the probation against convicted felons possessing firearms, he sold an undercover agent several firearms over the course of a few months.
“This case clearly demonstrates violent offenders shouldn’t be allowed to carry firearms – much less sell them,” said U.S. Attorney Nealy Cox. “The Northern District of Texas, working hand-in-hand with ATF, is committed to prosecuting gun crimes under Project Guardian, the Attorney General’s gun violence reduction initiative.”
“ATF has made firearms trafficking and keeping illegal firearms out of the hands of violent offenders its top priority in the Dallas metroplex. This demonstrates the level of violence that several individuals can cause within our communities. Dallas is safer with them behind bars,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with assistance from the Mesquite Police Department. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ YearsRead the Press Release
A Dallas charter school CEO was sentenced Thursday to more than seven years in federal prison for her role in a corruption scandal following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In October, a federal jury deliberated for just four hours before finding Nova Academy CEO Donna H. Woods, 65, guilty of one count of conspiracy to commit mail and wire fraud, and three individual counts of wire fraud.
U.S. District Judge Sidney A. Fitzwater sentenced her Thursday morning to 87 months in federal prison and ordered her to pay $337,951.06 in restitution to the Federal Communications Commission.
Woods’s co-conspirator, Donatus Anyanwu, 61, pleaded guilty to conspiracy in July. Judge Fitzwater sentenced him to 30 months in prison and declared him jointly and severally liable for the restitution owed to the FCC Thursday.
According to evidence presented at trial, Ms. Woods approved the granting of a federal telecommunications E-rate contract, worth approximately $337,951, to ADI Engineering, a company owned by Dr. Anyanwu. In return for the E-rate contract, Anyanwu paid Woods $50,000 in kickbacks.
When the charter school initially selected another contractor for E-rate, prosecutors explained, Ms. Woods filed a falsified E-rate application re-directing the contract to ADI – despite the company’s shoddy record. To ensure that ADI’s bid was accepted by E-rate program managers, Ms. Woods also allowed Dr. Anyanwu to copy portions of the original winning bid and pass off the work as his own.
Then, when, ADI botched the E-rate job, Ms. Woods falsely certified that it had completed the work when it had not.
The Federal Bureau of Investigation’s Dallas Field Office and Federal Communications Commission Office of Inspector General conducted the investigation. U.S. Attorneys Russ Fusco and Nick Bunch prosecuted the case. Senior U.S. District Judge Sidney A. Fitzwater presided over the trial.
Gang Member Linked to Four Drive-By Shootings Sentenced to 17 Years in Federal PrisonRead the Press Release
A gang member involved in several drive-by shootings in Dallas was sentenced today to 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rafael Rubi, 24, pleaded guilty in September to possession of a firearm and ammunition by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute a controlled substance.
Using the National Integrated Ballistic Information Network, or NIBIN, federal agents were able to link shell casings found at the scenes of at least four drive-by shootings in Dallas’ Oak Cliff neighborhood to firearms found in Mr. Rubi’s home and car.
In plea papers, Mr. Rubi, a member of the street gang La Familia Homeboy, admitted he was involved in all four drive-by shootings, including one shooting that targeted a driver previously involved in a car accident with Mr. Rubi’s girlfriend and another shooting that targeted the driver’s family members.
In total, approximately 119 cartridge casings were recovered at the scenes of the shootings.
The majority of the casings were later linked to two Glock pistols – one found stashed in a toilet tank in Mr. Rubi’s apartment (along with heroin, methamphetamine, cocaine, and drug paraphernalia), and another recovered from his Ford Mustang during a traffic stop hours after the final shooting.
During that traffic stop, officers observed Mr. Rubi’s passenger making “furtive movements” toward the floorboard, where they later located the loaded Glock pistol. Mr. Rubi admits he handed the Glock to the passenger and asked him to hide it.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Rebekah Ricketts and Gary Tromblay prosecuted the case. U.S. District Judge Ed Kinkeade handed down the sentence.
NDTX Round-Up January 28Read the Press Release
GUILTY PLEA – DANIEL SANCHEZ-MENDOZA
On January 21, Daniel Sanchez-Mendoza, 27, pled guilty to possession with the intent to distribute methamphetamine. Sanchez-Mendoza was pulled over by law enforcement for a traffic violation, and after consenting to a search, was found to be in possession of methamphetamine and heroin. In a later warranted search of Sanchez-Mendoza’s home, law enforcement found heroin, methamphetamine, cocaine, and three firearms within the apartment. Another firearm and part of an assault rifle were found in a storage unit used by Sanchez-Mendoza. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and the Dallas Police Department and is prosecuted by AUSA Linda Requenez.
SENTENCING – KHAKI CAEKAERT
On January 14, Khaki Caekaert, 63, was sentenced to 9 years in federal custody for possession with the intent to distribute methamphetamine. Caekaert was found to be in possession of a kilogram of methamphetamine and 1.5 kilograms of heroin in his store located on Fuller Drive in Dallas. He also possessed 13 firearms and 3 explosive devices at this location. Law enforcement estimated that Caekaert had sold an ounce of methamphetamine each week for the two years prior to his arrest. This case was investigated by the Federal Bureau of Investigation and prosecuted by AUSA PJ Meitl.
GUILTY PLEA – KARA LAMPKIN
On January 21, Kara Lampkin, 36, pled guilty to conspiracy to use a facility of interstate commerce in aid of a racketeering enterprise. Lampkin managed Relax2013, a brothel, at the direction of Jason Vo. She posted online advertisements to recruit sex workers, scheduled appointments, vetted both customers and workers to ensure they were not law enforcement, and managed the profits of this business. She ensured that both the advertisements and the business records were disguised and vague enough to avoid detection by law enforcement. Lampkin faces up to 5 years in federal custody. This case was investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation and is prosecuted by AUSA Ryan Raybould.
SENTENCING – ZACHERY SEMAJ LEATCH
On January 23, Zachery Semaj Leatch, 25, was sentenced to 2 years and 3 months for being a felon in possession of a firearm and possession of a firearm in a school zone. Leatch was found to be in possession of a pistol while at a youth basketball game. When police arrived on the scene, Leatch’s girlfriend warned him and Leatch set the gun on the floor before walking to the police officers. He admitted to possessing the firearm on a recorded jail call. This case was investigated by the Mesquite Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by AUSA John Boyle.
SENTENCING – ROBERT GUERRA IV
On January 23, Robert Guerra IV, 36, was sentenced to 15 years in federal custody for attempted production of child pornography. An undercover officer entered several chat rooms on Kik Messenger, posing as a 13 year old boy and later a 14 year old girl. Guerra attempted to solicit graphic content from the undercover detective. Guerra set plans to meet with the fake girl in person, however Garland Police officers and FBI agents were waiting to arrest him at the location. This case was investigated by the Grand Prairie Police Department, the Garland Police Department, and the Federal Bureau of Investigation and prosecuted by AUSA Camille Sparks.
SENTENCING – JAMES EARLE CUDE
On January 23, James Earle Cude, 55, was sentenced to 14 years in federal custody for receipt of child pornography. Cude, a former band director at North Mesquite High School, admitted to using the instant messaging app Kik to download videos and images of the sexual exploitation of minors. He used various apps to initiate chats with dozens of minors, requesting inappropriate photos and suggesting sexual meetups. He was arrested while waiting for a meetup with an individual he believed was a 13-year-old boy, who was actually an undercover agent. This case was investigated by the Collin County Sheriff’s Office, Dallas Police Department, and Homeland Security Investigations and prosecuted by AUSA Camille Sparks. Click here to read more about this case.
GUILTY PLEA – EDWARD TORRES-SANCHEZ
On January 21, Edward Torres-Sanchez, 20, pled guilty to possession with the intent to distribute methamphetamine. Torres-Sanchez was observed leaving his apartment with an unidentified white bag. Later, upon pulling Torres-Sanchez over for a traffic violation, Dallas Police Department officers found that he was driving without a license or insurance. Torres-Sanchez was lawfully arrested, and the ensuing search of his car resulted in the discovery of methamphetamine. Torres-Sanchez is also responsible for methamphetamine and drug proceeds found in his vehicle, as well as selling methamphetamine to an undercover officer. He faces up to life in federal custody. This case was investigated by the North Texas Strike Force and prosecuted by AUSA John Kull.
Five Plead Guilty in Scheme to Deceive Homeland Security, Illegally Employ Undocumented WorkersRead the Press Release
A North Texas construction company will pay the government $3 million for its role in a scheme to illegally employ undocumented immigrants, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Five individuals have already pleaded guilty in connection with the crime.
In a non-prosecution agreement with the U.S. Attorney’s Office (available below), Texas-based builder Speed Fab Crete admitted it illegally employed undocumented immigrants not authorized to work in the United States, and agreed to forfeit $3 million to the U.S. Treasury for use in promoting law enforcement activities related to immigration enforcement.
Per the agreement – which requires Speed Fab Crete to cooperate with the government to ensure it will not violate immigration laws in future – the company pledged to continue to use E-Verify, the federal government’s web-based employment eligibility verification system; to comply with new internal verification procedures; to conduct company-wide training on immigration compliance; and to discipline those who attempt to employ unauthorized workers.
The company’s three owners, Carl Eugene Hall, Ronald Alan Hamm, and David Leon Bloxom, are jointly and severally liable for the full amount if Speed Fab Crete does not fulfill its financial obligations under the non-prosecution agreement.
Earlier this month, Mr. Hall pleaded guilty to conspiracy to unlawfully harbor illegal aliens, a felony. Mark Sevier, owner of Take Charge Staffing, a temp agency used by Speed Fab Crete, also pleaded guilty to conspiracy to unlawfully harbor illegal aliens. Mr. Hamm, Mr. Bloxom, and Robert Edwin James, the company’s Chief Financial Officer, pleaded guilty to unlawful employment of illegal aliens, a misdemeanor offense.
“An inspection revealed these defendants knowingly hired dozens of unauthorized workers, in flagrant disregard of U.S. law. Worse yet, rather than working with ICE to resolve their violations, they attempted to deceive the government,” said U.S. Attorney Nealy Cox. “We will not allow employers to flout our laws.”
“All three of Speed Fab Crete’s officials pleaded guilty to federal charges, in connection to them knowingly hiring unauthorized workers, and attempting to deceive the government,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “And now they are paying the price for their criminal conduct. It’s criminal investigations like these, that not only exemplify HSI’s mission to protect the integrity of the U.S. immigration system, but also serve as a warning to business owners willing to hire an illegitimate workforce. You can not only expect a hefty fine but a prison sentence as well.”
According to their plea papers and Speed Fab Crete’s factual statement, the defendants admitted that they attempted to disguise the employment of unauthorized workers at Speed Fab Crete by placing them on the payroll of Take Charge Staffing, then lied to the government, stating that the unauthorized workers had been terminated from employment at Speed Fab Crete.
Per plea papers, after an I-9 inspection of Speed Fab Crete’s employment records revealed that 43 of the company’s 106 employees were undocumented immigrants not authorized to work in the United States, Speed Fab Crete entered into a settlement with Immigration & Customs Enforcement, pledging to rectify the situation.
HSI agreed not to conduct any subsequent I-9 inspection for a period of six months, giving Speed Fab Crete the time and opportunity to rectify the situation by employing legal workers.
In furtherance of that effort, in February 2016, the owners of Speed Fab Crete met with Take Charge Staffing to discuss replenishing their workforce. At the initial meeting, Mr. Hall asked Mr. Sevier to simply transfer the unauthorized workers from Speed Fab Crete’s payroll system onto Take Charge Staffing’s payroll, and have them assigned to Speed Fab. At the time, Mr. Sevier refused, promising to supply legal workers instead.
Over the ensuing six months, Mr. Sevier and Take Charge struggled to find employees to replace Speed Fab Crete’s unauthorized workers. In September 2016, Mr. Sevier agreed to Mr. Hall’s plan.
On Friday, September 23, 2016, Speed Fab Crete simultaneously terminated 39 unauthorized workers and sent 23 of them straight to Take Charge Staffing, where they were hired and assigned to Speed Fab Crete. All 23 retuned to work at Speed Fab Crete the following Monday.
From September 2016 until August 2017, Take Charge Staffing sent invoices for the unauthorized workers to Speed Fab Crete—all of which were authorized by Mr. Hall.
On October 11, 2016, Speed Fab Crete followed up with Immigration & Customs Enforcement, sending a letter that stated all 39 of the unauthorized workers had been released and were “no longer working at Speed Fab Crete Corporation.” Each of the individuals and the company admitted that this was a false and misleading statement to the government.
Mr. Hall and Mr. Sevier are facing up to five years in federal prison. Mr. Bloxom, Mr. Hamm, and Mr. James are facing up to six months in federal prison. As part of the plea agreements, each individual will be also required to pay a $69,000 fine, equal to $3,000 per alien, the statutory maximum.
Homeland Security Investigations conducted the investigation. Special Assistant U.S. Attorney Cathy Richardson and Assistant U.S. Attorney Nick Bunch are prosecuting the case.
As Tax Filing Season Opens, IRS Criminal Investigation Highlights Tax Fraud ProsecutionsRead the Press Release
As tax filing season opens this week, the IRS Criminal Investigation Dallas Field Office and the U.S. Attorney’s Office for the Northern District of Texas remind citizens that falsely preparing tax returns and evading taxes are crimes.
Tax payers can view the most current tax tips, forms and scams at www.irs.gov.
“As a new tax filing season begins this week, IRS Criminal Investigation wants to remind people to file accurate tax returns and to choose their tax preparers carefully,” said Tamera Cantu, Special Agent in Charge of the Dallas Field Office. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time and large tax bills, including substantial fines, interest and penalties.”
“The U.S. Attorney’s Office is committed to prosecuting tax crimes,” said U.S. Attorney Erin Nealy Cox. “We are grateful to our partners at IRS Criminal Investigation for rooting out tax fraud.”
To underscore federal law enforcement’s commitment to pursue those who fail to pay their taxes or otherwise defraud the tax system, below are several tax and tax-related fraud prosecutions that were sentenced in 2019 in the Northern District of Texas:
- Juana Gabriela Ortiz worked for Ebenezer Olayiwola, who owned and operated Peak Insurance and Tax Service. Between 2010 and 2013, Olayiwola and his preparers filed thousands of tax returns claiming more than $35 million in fraudulent tax refunds. Olayiwola admitted to training his preparers to prepare fraudulent tax returns by adding fraudulent Schedules C forms and education credits. Olayiwola’s organization generated approximately millions of dollars in tax preparation fees during that period. Olayiwola was sentenced to 60 months confinement, 3 years supervised release and restitution totaling $30,670,438.98. Ortiz prepared a significant number of false tax returns, and was ordered to pay restitution totaling $3,992,080.
- Francisco Ventura owned numerous tax preparation businesses located in Texas. Subject assisted in teaching training classes for new tax return preparers, supervised other tax return preparers, and reviewed and submitted returns prepared at the business to the IRS. Ventura instructed employees to prepare false income tax returns utilizing false items such as Schedules C and false education credits. Ventura was sentenced to 63 months confinement, 2 years of supervised release and restitution totaling $8,310,261.
- Idrissa Traore and Josseline Cazun-Menendez participated in a stolen identity refund fraud scheme to defraud the IRS. Cazun-Menendez opened at least 66 bank accounts using false identification documents in at least 18 different alias names and Traore opened at least 3 bank accounts in at least 2 alias names also using false identification. Traore maintained organized files of his and Cazun-Menendez’s alias bank account records, debit cards, and fraudulent identification cards. A total of 159 fraudulent tax returns for tax years 2014 through 2017 were associated with fraudulent refunds deposited to the alias accounts. Traore was sentenced to 121 months confinement, 3 years of supervised release and restitution totaling $2,044,547. Cazun-Menendez was sentenced to 60 months confinement, 3 years of supervised release and restitution totaling $1,017,999.
- Mario Antonio Melendez worked for a return preparer who owned numerous tax preparation businesses in the Dallas area. The defendant conspired with the owner to teach return preparation classes instructing employees to prepare fraudulent returns in exchange for a percentage of the owner’s profits. The returns included false education credits and false American Opportunity Tax Credits and resulted in inflated refunds to be paid by the IRS. Melendez was sentenced to 51 months confinement, 1 year of supervised release and restitution totaling $3,885,456.
- Sandra Cantu owned two tax preparation businesses in Dallas and prepared, filed, and caused to be filed income tax returns containing false Schedules A and C. During the period of 2013-2016, her scheme resulted in 1,705 fraudulent returns, 626 of which refunds were paid out. Cantu was sentenced to 48 months confinement, 1 year of supervised release and restitution totaling $1,761,189.12.
The Better Business Bureau is a non-profit that upholds standards for trustworthiness and ethics in business. BBB accepts consumer complaints against businesses and monitors the marketplace for substandard business practices.
In 2019, BBB processed approximately 1,582 reportable complaints against tax return preparers. Approximately 65 of those complaints were for preparers headquartered in the DFW area.
Consumers alleged to BBB that theft of refunds, theft of personal information and identifiers, loss or misappropriation of sensitive data, and late and inaccurate filings are the possible outcomes of choosing the wrong tax preparer.
BBB advises taxpayers to be cautious when choosing a tax preparer. You can check BBB Business Profiles at www.bbb.org. BBB provides the following tips to help you find a tax preparer you can trust:
- Get referrals.
- Choose a preparer that is properly registered. A tax preparer must obtain a PTIN from the IRS.
- Look for credentials. Anyone with a PTIN can prepare your tax forms for you, but some tax preparers have more training and qualifications than others. Learn about tax preparer credentials on the IRS website.
- Keep a watchful eye for promises. Be wary of any tax preparation service that promises larger refunds than the competition and avoid tax preparers who base their fee on a percentage of the refund.
- Search for free tax programs. There are several free government programs that prepare taxes free of charge if you meet an income requirement. Visit the IRS’s Free File page for more information.
Timely and accurate filing, in addition to thorough research on a reputable tax preparer will help north Texans navigate the new tax season with ease and confidence.
Mesquite Ex-Educator Sentenced to 14 Years in Child Pornography CaseRead the Press Release
A Mesquite educator was sentenced today to 14 years in federal prison for child exploitation, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
55-year-old James Earle Cude – who previously served as North Mesquite High School’s band director – pleaded guilty in August to receipt of child pornography.
In plea papers, he admitted he’d used the instant messaging app Kik to download images and videos of the sexual exploitation of minors, including a video of a young boy being raped by an adult man.
At his sentencing hearing, agents testified that Mr. Cude had used various apps to initiate chats with dozens of underage teens, requesting lewd photos and proposing sexual meetups.
Mr. Cude was arrested in February at a coffee shop, after exchanging explicit messages with an individual he believed was a 13-year-old boy. Unbeknownst to the defendant, his messages were actually sent to an undercover agent. He later admitted he’d enticed the boy there for sexual contact.
The Collin County Sheriff’s Office, Dallas Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.
CORRECTION: An earlier version of this release contained an error regarding the defendant's tenure at North Mesquite High School:. While Mr. Cude served as a band director in North Texas for more than a decade, he served at North Mesquite High School for less than a year, from 2018 to 2019. Reporters were promptly notified of the error.
NDTX Round-Up January 21Read the Press Release
GUILTY PLEA – RAMON MENDOZA-VILLEGAS
On January 16, Ramon Mendoza-Villegas, 44, pled guilty to possession with the intent to distribute a controlled substance, aiding and abetting. When Dallas Police Officers conducted a traffic stop on a vehicle in which Mendoza was a passenger, they found methamphetamine and heroin. While executing a search warrant on Mendoza’s home, law enforcement found heroin, methamphetamine, cocaine and three firearms within the apartment. In a similar search of a storage unit used by Mendoza, officers found methamphetamine, heroin, a shotgun, and the upper receiver of an assault rifle. Mendoza faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and the Dallas Police Department and prosecuted by AUSA Linda Requenez.
GUILTY PLEA – ISIDRO AMAYA
On January 15, Isidro Amaya, 22, was sentenced to 7 years and 6 months in federal custody for possession with the intent to distribute methamphetamine and possession of a firearm by a convicted felon. A law enforcement officer stopped the car that Amaya was driving. When the officers conducted a Terry search, they located a firearm and two plastic baggies containing methamphetamine. Amaya admitted that the methamphetamine was for distribution and not personal consumption. He faces up to 8 years and 9 months in federal custody. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the Irving Police Department and was prosecuted by AUSA Danielle Jones.
SENTENCING – MICHAEL WRIGHT AND RICKEY CHERRY
On January 15, Michael Wright, 29, and Rickey Cherry, 29, were sentenced to 36 years and 25 years, respectively, in federal custody. They were sentenced on multiple counts of interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. Wright was involved in an armed robbery of an AT&T retail store in Ennis, where he stole $30,000 of inventory. He was arrested after a dangerous, high-speed pursuit, but posted bond the following day. Only twenty days later, Wright and Cherry robbed a RadioShack at gunpoint, and then another AT&T store in a similar fashion. This case was investigated by the Federal Bureau of Investigation, the Ennis Police Department, the Duncanville Police Department, the Grand Prairie Police Department, and the Dallas Police Department and prosecuted by AUSA Keith Robinson, AUSA Brian McKay, and AUSA Gary Tromblay. Click here to read more about this case.
Former San Angelo Police Chief Indicted for BriberyRead the Press Release
A federal grand jury has indicted San Angelo’s former Chief of Police for public corruption following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Timothy Ray Vasquez, 49, was charged Wednesday with one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud.
“We must insist that law enforcement leaders personify integrity,” said U.S. Attorney Nealy Cox. “Former Chief Vasquez abused his office for personal financial gain. We are determined to root out corruption wherever we find it. Public officials cannot be allowed to violate their sacred trusts.”
“The defendant manipulated a government procurement process to personally profit for years. This abuse of power affected a system that is supposed to be fair and unbiased,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “Public corruption is one of the FBI’s top investigative priorities. We will continue to hold elected officials accountable for violating the trust of their constituents.”
Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – made his initial appearance in federal court Friday afternoon.
According to the indictment, Mr. Vasquez allegedly used his official position to help a radio system vendor land two government contracts worth more than $11 million. In return, the vendor and its affiliates allegedly funneled him and his band, “Funky Munky,” more than $130,000.
Per the indictment, in February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. Three vendors submitted bids.
Mr. Vasquez allegedly asked one of the vendors for a vacation trip, but was rebuffed.
In April, Mr. Vasquez recommended the city award the $5.6 million contract to a different vendor, identified in the indictment as “Vendor 1,” who was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Vendor 1, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account.
For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Vendor 1 and its affiliates, Juniper Valley and Trixie & Fini, either made out to Mr. Vasquez or his band.
By 2015, Mr. Vasquez and Funky Money had collected more than $84,000, including $38,200 the defendant deposited directly into his personal bank account and $29,800 he withdrew in cash.
However, seven years after the original contract was awarded, the radio technology provided by Vendor 1 was “phased out.” In an email with city employees, Mr. Vasquez indicated he wanted to “use the same vendor” for the new equipment, and urged the City Manager to support Vendor 1. In another email with a city employee, he discussed an exemption from the competitive bidding process that would allow San Angelo to award the contract to Vendor 1.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Vendor 1 in June 2015.
Six months later, Vendor 1 wrote a check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez and Funky Munky received at least $134,000 from Vendor 1 and its affiliates, including at least $88,200 he deposited into his personal bank account and $29,800 he withdrew in cash.
Funky Munky’s typical fee to play at an event runs from $1,000 - $3,000.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Vasquez faces up to 70 years in federal person.
The Federal Bureau of Investigation and the Texas Rangers, with the full cooperation of the San Angelo Police Department and the City of San Angelo, conducted the investigation. Assistant U.S. Attorneys Jeff Haag and Chad Meacham are prosecuting the case.
Cell Phone Store Robbers Sentenced to Combined 61 Years in Federal PrisonRead the Press Release
Two men convicted of committing violent robberies at cell phone stores across North Texas have been sentenced to a combined 61 years in federal prison following an investigation by the FBI”s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a six-day trial in April 2018, a jury convicted Michael Wright, 29, of Dallas, of three counts of interference with commerce by robbery, three counts of possessing or brandishing a firearm during and in relation to a crime of violence, and unlawful possession if a firearm by a convicted felon. U.S. District Judge Ed Kinkeade on Wednesday sentenced Mr. Wright to 36 years’ imprisonment.
The jury convicted Rickey Cherry, 29, also of Dallas, of two counts of interference with commerce by robbery and two counts of brandishing a firearm during and in relation to a crime of violence. Judge Kinkeade sentenced Mr. Cherry to 25 years’ imprisonment.
A coconspirator, Kameron Robinson, 27, previously pleaded guilty to one count of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. He was sentenced in August 2018 to 12 years’ imprisonment.
According to facts presented at Wright and Cherry’s trial, on Jan. 2, 2015, Mr. Wright and Mr. Robinson – masked and armed with a .45 caliber pistol – robbed an AT&T retail store at gunpoint in Ennis, Texas. They stole approximately $30,000 of inventory, including cell phones and tablets.
They were apprehended by Ennis Police Department after leading police on a dangerous, high-speed pursuit, driving on the wrong side of the highway and over rain-slick rural roads.
Mr. Wright posted bond the following day. Just twenty days later, on Jan. 22, he and Mr. Cherry – masked and armed with a pistol – robbed a RadioShack at gunpoint in Duncanville, Texas. They viciously pistol-whipped the store manager before making off with approximately $28,000 in inventory, including cell phones.
Two weeks later, Mr. Wright and Mr. Cherry – once again masked and armed – robbed an AT&T retailer at gunpoint in Grand Prairie, Texas. They stole approximately $32,000 in inventory, including cell phones and tablets.
DNA evidence presented at trial linked them to the robberies.
The Federal Bureau of Investigation, the Ennis Police Department, the Duncanville Police Department, the Grand Prairie Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Keith Robinson, Brian McKay, and Gary Tromblay prosecuted the case.
NDTX Round-Up January 14Read the Press Release
SENTENCING – SU Y AMOS MUN
On December 23, Su Y Amos Mun, was sentenced to 20 years in federal custody for maintaining a drug involved premises. Mun admitted to being the owner and manager of the HanGil Hotel Town between January 2018 and March 2019. He knowingly made rooms available for guests to be used for storing and distributing various illegal substances. He continued this practice, despite being informed of multiple heroin overdose deaths in his establishment. To read more about the HanGil Hotel case, click here. This case was investigated by the Drug Enforcement Administration, the Dallas Police Department, and the Coppell Police Department, and prosecuted by AUSA Rick Calvert.
GUILTY PLEA – SOPHIA LIAO AND BOONCHAI DUMRONGSRI
On December 31, Sophia Liao, 62, and her husband, Boonchai Dumrongsri, 55, pled guilty to conspiracy to distribute methamphetamine. Both defendants face up to 20 years in federal custody. Liao sold a total of 86.2 grams of methamphetamine to an undercover officer on six occasions between June 2013 and February 2016. Dumrongsri also sold methamphetamine to an undercover officer. This case was investigated by the Drug Enforcement Administration and the Garland Police Department and is prosecuted by AUSA Phelesa Guy.
SENTENCING – JOSE GUADALUPE HERNANDEZ-SALDIVAR
On December 19, Jose Guadalupe Hernandez-Saldivar, 26, was sentenced to 17 years and 6 months in federal custody for conspiracy to distribute heroin. An undercover officer negotiated the purchase of multiple kilograms of heroin with the leaders of a drug trafficking organization in Mexico. The officer was put in contact with Hernandez-Saldivar who coordinated a meeting at a Fiesta Mart in Dallas to conduct the drug deal. Later, Hernandez-Saldivar was confronted by law enforcement about the delivery and admitted to directing the exchange and possessing more heroin in his Dallas residence. This case was investigated by the North Texas Strike Force and prosecuted by AUSA John Kull.
SENTENCING – CHARLES EDWARD GRANT
On December 18, Charles Edward Grant, 24, was sentenced to 3 years and 4 months for bank robbery. Grant entered a Bank of America and walked over to one of the tellers, presenting a note demanding money. The note stated, “It’s a robbery. No Police. No Tracking. No Ink… I have a gun.” The teller forfeited the money, fearing for his life. This case was investigated by the Dallas Police Department and the Federal Bureau of Investigation and prosecuted by AUSA Walt Junker.
SENTENCING – RALPH JAY ADAMS
On December 19, Ralph Jay Adams, 40, was sentenced to 30 years in federal prison for possession with intent to distribute methamphetamine. Adams sold 13.37 grams of methamphetamine to another individual, at least 5 grams of which was “actual methamphetamine.” He also admitted that this methamphetamine was imported into the United States from Mexico. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department and prosecuted by AUSA PJ Meitl.
Following Facebook Tip, Balch Springs Woman Sentenced to 30 Years in Child Exploitation CaseRead the Press Release
A woman who videotaped as she forced a 9-year-old girl to perform sex acts on her husband has been sentenced to 30 years in federal prison, the statutory maximum sentence, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Dawn Greenwood, 39, pleaded guilty in October to production of child pornography.
According to plea papers, Ms. Greenwood used a cell phone to videotape her husband, Shon Greenwood, and the 9-year-old child, who’d been living at the couple’s home.
The case came to light when Facebook notified the National Center for Missing and Exploited Children that Mr. Greenwood had posted sexually explicit images of minors on his account.
Following searches at both their Boone County, Missouri and Balch Springs, Texas residences, agents seized the Greenwoods’ phones, and found copies of the video on both devices.
The minor victim was immediately removed from the home and is being cared for by a guardian.
Mr. Greenwood pleaded guilty in December and is set to be sentenced in March.
The Boone County Sheriff’s Office, Dallas Police Department, Texas Department of Public Safety, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting the case. U.S. District Judge David Godbey handed down the sentence.
Lubbock Man Sentenced for Stealing FirearmsRead the Press Release
A firearms trafficker who stole guns from a Lubbock pawn shop was sentenced to 2.5 years in federal prison following an investigation by the ATF Lubbock Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Zachary Nicholas Gonzales, 21, pleaded guilty in September to theft of firearms from a federal firearms licensee.
In his plea papers, Mr. Gonzales admitted that in the early morning hours of July 4, 2019, he burglarized a Cash America Pawn shop on 50th Street, escaping with at least 14 stolen guns.
He breached the cage where guns were stored by propping a ladder next to the cage and removing several ceiling tiles in order to jump over the mesh, he said.
Surveillance video from an attempted burglary at anther Cash America location the evening of July 4 showed Mr. Gonzalez there as well.
Following his arrest on July 9, Mr. Gonzales was Mirandized and admitted to ATF agents that he intended to sell the stolen firearms to support his drug habit.
“Firearms traffickers are a menace to our communities, often allowing dangerous individuals to get their hands on deadly weapons,” said U.S. Attorney Nealy Cox. “We’re proud to work with ATF and our state and local partners to prosecute this case under Project Guardian, the Attorney General’s gun violence reduction initiative.”
“Mr. Gonzales garnered funds to support his drug habit by victimizing a Federal Firearms Licensee and fueling the illicit firearms trade,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “At least one of the stolen firearms was subsequently used in a violent crime.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Lubbock Police Department, the Lubbock County Sheriff’s Office, and the Texas Department Public Safety conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case. U.S. District Judge James Wesley Hendrix handed down the sentence.
This case was brought under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.
Dallas Healthcare Exec Sentenced to 66 Months for Forest Park, NextHealth FraudsRead the Press Release
A Dallas healthcare executive was sentenced Thursday afternoon to 66 months in federal prison for his role in two healthcare fraud schemes, Forest Park Medical Center and Nexthealth, and was ordered to pay $3 million in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Andrew Hillman, 43, pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes and kickbacks – violations of the anti-kickback statute and the Travel Act – in the Forest Park scheme.
In plea papers, Mr. Hillman admitted he and his business partner, Seymon Narosov, were paid $190,000 by Forest Park to refer patients to the facility or to surgeons with privileges there. The payments, he admitted, were funneled through a shell entity, Adelaide Business Solutions, and Hillman and Narosov submitted phony invoices to conceal the wrongdoing.
The same day, Mr. Hillman also pleaded guilty to conspiracy to commit money laundering in the NextHealth scheme.
He admitted that he and others conspired to launder the proceeds of various healthcare fraud offenses related to their pharmacies, resulting in $450 million in fraudulent billings to government and private insurance programs. Among other fraudulent activities, the pharmacies paid illegal kickbacks to doctors and others to generate prescriptions, self-funded patient copays to dupe auditors, and misbranded drugs.
In April, Mr. Hillman testified about his criminal activity in the Forest Park Medical Center trial, which ended in guilty verdicts for seven of his coconspirators. In total, 18 defendants have been convicted in connection with the Forest Park matter.
Two defendants have been convicted in the Nexthealth scheme.
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.
NDTX Round-Up December 17Read the Press Release
SENTENCING – NELSON PABON
On December 6, Nelson Pabon, 48, was sentenced to 16 years and 8 months in federal custody for conspiracy to possess with intent to distribute methamphetamine. Pabon had informed undercover officers that because of his advance knowledge of canine sweeps of luggage, he was well-positioned to sneak drugs onto commercial flights for cash. Pabon is the lead defendant of 10 coconspirators in this case. If you would like to read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. This case is prosecuted by AUSA George Leal, John de la Garza, and John Kull.
GUILTY PLEA – DARYL HENRY
On December 12, Daryl Henry, 24, pled guilty to a hate crime act, conspiracy to commit hate crimes, kidnapping, and carjacking. Henry faces up to life in federal custody for his crimes. Henry admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment, where they were beaten, taunted, and held against their will. This case was investigated by the Federal Bureau of Investigation, and the Dallas Police Department and is prosecuted by AUSA Nicole Dana. Click here to read more about this case.
GUILTY PLEA – RICARDO MONTES-GARCIA
On December 10, Ricardo Montes-Garcia, 53, pled guilty to possession with the intent to distribute methamphetamine. Montes-Garcia was spotted by police officers as he was leaving his residence and entering his vehicle with a black rectangular object and a white plastic bag. When officers observed a traffic violation, Montes-Garcia gave consent for a search. Officers found the rectangular object to contain 1,972 grams of methamphetamine. In a later search of his home, officers found 8,885 grams of methamphetamine, $36,833 in drug proceeds, and a methamphetamine conversion laboratory. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Adminstration and prosecuted by AUSA John Kull.
SENTENCING – JONATHAN ALEXANDER BAIRES
On December 12, Jonathan Alexander Baires, 20, was sentenced to 10 years in federal custody for attempted murder in aid of racketeering. Baires, a member of the MS-13 gang and the Irving Loco Salvatruchas clique, attempted to murder a man who Baires and his coconspirators assumed were a member of the rival 18th Street gang. The victim was ambushed by the gang members in a park, along with three other victims. Fortunately, the fatal attack was unsuccessful. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
SENTENCING – JOSE ARMANDO SARAVIA-ROMERO
On December 12, Jose Armando Saravia-Romero, 20, was sentenced to 4 years and 9 months in federal custody for assault with a dangerous weapon in aid of racketeering. Saravia-Romero, a member of the MS-13 gang and the Irving Loco Salvatruchas, attacked and robbed a victim at a gas station. Saravia-Romero and his associates offered the victim cocaine and beer, and when the victim refused to pay, they attacked him with a metal bat and stole his wallet. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
Zambian National Who Stole U.S. Taxpayer Identities and Refunds Sentenced to 8+ Years in Federal PrisonRead the Press Release
A Zambian national who operated a scheme to steal U.S. taxpayer identities and fraudulently claim their refunds was sentenced to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Innocent Wangwamba, 36, of Zambia, was sentenced by District Judge Sam A. Lindsay on December 13 after an extensive investigation led by IRS Criminal Investigations Dallas Field Office. The defendant pleaded guilty in July to theft of public money and aiding and abetting in Mansfield, Texas.
In his plea papers, he admitted that from February 2012 to March 2014, he participated in a stolen identity refund fraud scheme involving falsely claimed tax refunds from the Department of the Treasury. His participation in the scheme involved obtaining Electronic Filing Identification Numbers from IRS in stolen identities, obtaining and sharing personal identifying information of victims, setting up fraudulent accounts with third party providers such as Drake and Refund Advantage to file tax returns and obtain refunds, directing falsely claimed returns to particular bank accounts.
Through this scheme, the co-conspirators submitted more than 7,400 fraudulent tax returns in the names of U.S. taxpayers using stolen personal identifying information. The schemers attempted to obtain US $36,000,000 from the U.S. Treasury, but IRS was able to prevent more than US $29,000,000 of the attempted fraud. Still, the co-conspirators stole approximately $6,000,000 from the U.S. Treasury. Most of the defendant’s participation occurred while he was outside of the United States. At the end of one of his trips to the United States, the defendant was arrested at JFK Airport in New York attempting to board a flight out of the country.
The defendant, a citizen of Zambia with a permanent resident card to live in the United States, will likely face deportation proceedings after his sentence.
The Internal Revenue Service’s Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney mary Walters prosecuted the case
Two Dallas Men Plead Guilty to Hate Crimes After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
Daryl Henry, 24, and Pablo Ceniceros-Deleon, 19, pleaded guilty yesterday to a federal hate crime and other charges in connection with their involvement in a scheme to target gay men for violent crimes.
Daryl Henry pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act) and one count of 18 U.S.C. § 371 (conspiracy to commit hate crimes, kidnapping, and carjacking). Pablo Ceniceros-Deleon pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act), one count of 18 U.S.C. § 2119 (carjacking), and one count of 18 U.S.C. § 924(c) (use of a firearm during and in relation to a crime of violence).
“Kidnappings, carjackings, thefts, sexual assaults, and armed, violent attacks against innocent people are heinous crimes, and when perpetrators commit those crimes against victims because of their sexual orientation, the U.S. Department of Justice will continue zealously to seek justice for the victims and to punish the perpetrators to the full extent of the law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting those who commit such monstrous acts because of victims’ sexual orientation is a priority of the Department of Justice, and we will continue to bring to justice anyone who commits such hateful, violent crimes.”
“These defendants used Grindr to single out their victim based on sexual orientation – something the Northern District of Texas simply will not tolerate,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “Unfortunately, this is not the first time a dating app user has fallen victim to a violent crime. I’m urging the public to be vigilant about the dangers lurking online.”
“One of the FBI’s top priorities is to defend the civil rights of the communities we serve. We actively work with our law enforcement partners to investigate hate crimes and achieve justice for the victims impacted by these violent crimes,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The victims in this case were specifically targeted because of their sexual orientation. The FBI wants to reassure the public that we will pursue individuals who commit violent hate acts against any member of our community.”
According to court documents filed in connection with their guilty pleas, both Henry and Ceniceros-Deleon admitted Grindr was used, a social media dating platform primarily used by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes. Henry admitted that he and others held the victims against their will in the vacant apartment. Ceniceros-Deleon admitted that he and others traveled to local ATMs to withdraw cash from the victims’ accounts. Both Henry and Ceniceros-Deleon admitted that while the victims were being held captive they were subjected to taunts based upon the co-conspirators’ perception of the men’s sexual orientation.
In addition, Ceniceros-Deleon admitted to being the gunman in a Dec. 7, 2017, carjacking where he and others used Grindr to lure a man to a location and then forced the man, at gunpoint, to drive the conspirators to local ATMs to withdraw cash from the man’s account.
In March of 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. Atkinson will be sentenced in February of 2020. Sentencing for Ceniceros-Deleon is set for April 1, 2020. The court has not set a sentencing hearing for Henry.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Assistant U.S. Attorney Nicole Dana of the Northern District of Texas along with Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting the case.
Texas Woman Found Guilty for Role in $5.5 Million Federal Worker’s Compensation Overbilling SchemeRead the Press Release
A federal jury found a Texas woman guilty today for her role in a $5.5 million scheme to overbill the U.S. Department of Labor Office of Workers’ Compensation Program for physical therapy and other services.
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, Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of Inspector General’s (DOJ-OIG) Dallas Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General’s (DOL-OIG) Dallas Regional Office, Special Agent in Charge Chris Cave of the U.S. Postal Service Office of Inspector General’s (USPS-OIG) Southern Area Field Office and Special Agent in Charge James Ross of the U.S. Department of Veterans Affairs Office of Inspector General’s (VA-OIG) Criminal Investigations Division—South Central Field Office and Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (MPFU), Southwest Fraud Field Office made the announcement.
After a five-day trial, before U.S. District Judge Karen G. Scholer of the Northern District of Texas, Melissa Sumerour, 48, of Lorena, Texas, was found guilty of six counts of health care fraud. Sentencing has not yet been scheduled.
According to evidence presented at trial, from approximately January 2011 to March 2017, Sumerour engaged in a scheme to defraud the Department of Labor’s Office of Workers’ Compensation Program by overbilling for physical therapy. The evidence established that the fraud, in which Sumerour billed for more physical therapy than was provided, cost the Office of Workers’ Compensation Program in excess of $5.5 million.
One other defendant has been charged in this matter. Latosha Morgan, 42, of Grand Prairie, Texas, pleaded guilty and is scheduled for sentencing in March 2020.
This case was investigated by DOJ-OIG, DOL-OIG, USPS-OIG, VA-OIG, and Army CID-MPFU. Trial Attorney Brynn Schiess and Counsel Amy Markopoulos of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Federal Home Loan Bank Execs Sentenced to 5 Years EachRead the Press Release
Two former Federal Home Loan Bank executives have been sentenced to a combined 10 years in federal prison for conspiring to lie to the government-sponsored financial institution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In July, several days into their trial, Terence Carlyle Smith, former FHLB - Dallas President, and Nancy B. Parker, former Chief Information Officer, both pleaded guilty to conspiracy to make false statements to a Federal Home Loan Bank.
U.S. District Judge Jane J. Boyle last week sentenced Mr. Smith, 62, to five years in federal prison and ordered him to pay $780,279.11 in restitution plus $4,219,720.89 in attorney’s fees to the bank and its insurance carriers. The judge sentenced Ms. Parker, 66, to five years in federal prison and ordered her to pay $313,681.25 in restitution plus $227,953 in attorney’s fees.
“These defendants attempted to trick a Federal Home Loan Bank into footing the bill for their exorbitant personal travel,” said U.S. Attorney Nealy Cox. “We’re pleased the Judge held them accountable for undermining the public trust by handing down the maximum sentence.”
“The actions of these defendants placed at risk the public’s trust in the Federal Home Loan Bank of Dallas. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed against the Government Sponsored Enterprises, including the 11 Federal Home Loan Banks,” said Catherine Huber, Special Agent in Charge of the FHFA-OIG’s Central Region Office. “The sentences handed down by the Court send a powerful message to those who would seek to victimize a Federal Home Loan Bank. We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Texas in this case.”
In plea papers, the pair admitted that from 2009 to 2013, they submitted dozens of bogus expense reports to FHLB, claiming they’d attended professional conferences they never visited -- prompting FHLB to foot the bill for what was actually personal travel to Florida, California, and Nevada. They also admitted to repeatedly falsely reporting their number of unused vacation hours.
According to the Indictment filed in 2017, the scheme cost FHLB more than $1.2 million -- $780,000 in travel expenses, including airfare, limousine rides, concerts, vineyard tours, luxury hotel rooms, and lavish meals for Mr. Smith, Ms. Parker, and several colleagues, and $450,000 in unused vacation time reimbursements.
The Federal Housing Finance Agency Office of Inspector General led the investigation. Assistant U.S. Attorneys Errin Martin, Lindsey Beran, Tiffany Eggers, and Douglas Brasher prosecuted the case.
Two Dallas Men Plead Guilty to Hate Crimes After Using Dating App to Target Gay Men for ViolenceRead the Press Release
Daryl Henry, 24, and Pablo Ceniceros-Deleon, 19, pleaded guilty today to a federal hate crime and other charges in connection with their involvement in a scheme to target gay men for violent crimes following an investigation by the FBI’s Dallas Field Office, announced Assistant Attorney Eric Dreiband of the Justice Department’s Civil Rights Division and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daryl Henry pleaded guilty to a hate crime act, conspiracy to commit hate crimes, kidnapping, and carjacking. Pablo Ceniceros-Deleon pleaded guilty to a hate crime act, carjacking, and use of a firearm during and in relation to a crime of violence.
“Kidnappings, carjackings, thefts, sexual assaults, and armed, violent attacks against innocent people are heinous crimes, and when perpetrators commit those crimes against victims because of their sexual orientation, the U.S. Department of Justice will continue zealously to seek justice for the victims and to punish the perpetrators to the full extent of the law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting those who commit such monstrous acts because of victims’ sexual orientation is a priority of the Department of Justice, and we will continue to bring to justice anyone who commits such hateful, violent crimes.”
“These defendants used Grindr to single out their victim based on sexual orientation – something the Northern District of Texas simply will not tolerate,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “Unfortunately, this is not the first time a dating app user has fallen victim to a violent crime. I’m urging the public to be vigilant about the dangers lurking online.”
“One of the FBI’s top priorities is to defend the civil rights of the communities we serve. We actively work with our law enforcement partners to investigate hate crimes and achieve justice for the victims impacted by these violent crimes,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The victims in this case were specifically targeted because of their sexual orientation. The FBI wants to reassure the public that we will pursue individuals who commit violent hate acts against any member of our community.”
According to court documents filed in connection with their guilty pleas, both Henry and Ceniceros-Deleon admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes. Henry admitted that he and others held the victims against their will in the vacant apartment. Ceniceros-Deleon admitted that he and others traveled to local ATMs to withdraw cash from the victims’ accounts. Both Henry and Ceniceros-Deleon admitted that while the victims were being held captive they were subjected to taunts based upon the co-conspirators’ perception of the men’s sexual orientation.
In addition, Ceniceros-Deleon admitted to being the gunman in a Dec. 7, 2017, carjacking where he and others used Grindr to lure a man to a location and then forced the man, at gunpoint, to drive the conspirators to local ATMs to withdraw cash from the man’s account.
In March of 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. Atkinson will be sentenced in February of 2020. Sentencing for both defendants is set for April 1, 2020.
The Federal Bureau of Investigation’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Assistant U.S. Attorney Nicole Dana of the Northern District of Texas along with Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting the case.
Two Reagor Dykes Employees Plead Guilty to Wire Fraud Conspiracy, 11 Pleas TotalRead the Press Release
Two Reagor Dykes Auto Group employees pleaded guilty this week to participating in the auto group’s floor plan fraud scheme, following an investigation by the Federal Bureau of Investigation’s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Elaina Marie Cabral, a 30-year-old Reagor Dykes office manager who worked at RDAG’s Toyota store in Plainview, and Whitney Erin Maldonado, a 44-year-old Reagor Dykes office manager who worked at RDAG’s Mitsubishi store in Lubbock, pleaded guilty Wednesday to conspiracy to commit wire fraud before Magistrate Judge Lee Ann Reno in Amarillo.
Their colleague, executive assistant to the CEO Ashely Nicole Dunn, 34, pleaded guilty to conspiracy to commit bank fraud in a related Reagor Dykes check kiting scheme last Wednesday.
They are three of eleven employees who have confirmed their roles in the $50 million Reagor Dykes scam. Admitted coconspirators include Reagor Dykes Chief Financial Officer Shane Andrew Smith and employees Sheila Miller, Lindsay Williams, Diana Urias, Paige Johnston, Pepper Rickman, Sherri Wood, and Brad Fansler.
In plea papers, Ms. Cabral and Ms. Maldonado admitted the company engaged in a practice they called “dummy flooring.”
Employees routinely dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale, the pair admitted. After acquiring the new floor plan funding, instead of re-buying the car, Reagor Dykes used the ensuing loan to cover other expenses.
Ms. Dunn admitted in her plea papers that Reagor Dykes also engaged in systematic check kiting, a ploy that involves concealing fraud by cross-depositing checks across several banks.
Ms. Cabral and Ms. Maldonado each face up to five years in federal prison and may be required to pay approximately $27 million in restitution. Ms. Dunn also faces up to five years in prison and may be required to pay approximately $23 million in restitution.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.
Dallas Man Sentenced to 30 Years on Terrorism ChargesRead the Press Release
A 42-year-old Dallas man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox. “The Justice Department is committed to combatting terror at home and abroad.”
“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John Demers. “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities. This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.”
According to evidence presented at trial, Mr. Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Mr. Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Mr. Rahim was arrested on March 5, 2017 at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Mr. Rahim said “no.”
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant United States Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Judge Jane Boyle presided over the trial.
Dallas Man Sentenced to 30 Years on Terrorism ChargesRead the Press Release
A 42-year-old Dallas, Texas, man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John C. Demers. “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities. This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.”
“Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The Justice Department is committed to combatting terror at home and abroad.”
According to evidence presented at trial, Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Rahim was arrested on March 5, 2017, at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Rahim said “no.”
The FBI, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Judge Jane Boyle presided over the trial.
NDTX Round-Up December 10Read the Press Release
On December 3, Severo Elizalde-Abelardo, 39, was sentenced to 33 years and 9 months in federal custody for conspiracy to distribute a controlled substance. Elizalde-Abelardo managed and directed multiple drug deals between his codefendants. He instructed his coconspirators to meet with customers and count the money. When his home was searched, officers found 13 kilograms of methamphetamine, a handgun, and 20 pounds of MSM. This case was investigated by the High Intensity Drug Trafficking Areas Program, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, Fort Worth Police Department, and Dallas Sheriff Office and prosecuted by AUSA Phelesa Guy.
On December 3, Jerson Gutierrez-Ramos, 20, was sentenced to 39 years and 7 months in federal custody for racketeer influenced and corrupt organizations conspiracy. Gutierrez-Ramos was associated with the Irving Loco Salvatruchas clique. Gutierrez-Ramos and other gang members attacked two victims in their home, beating them with a metal bar and machete with the intent to kill. This is one example of ten different victims listed in court documents that Gutierrez-Ramos attacked in order to increase his position within the gang. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, Irving Police Department, and Dallas Police Department, and prosecuted by AUSA Gary Tromblay.
On December 6, Desmond Howard Greer, 26, was sentenced to 10 years in federal custody for the possession of a firearm by a convicted felon. Greer was found to be in the possession of a multi-caliber rifle in violation of the terms of his prior conviction. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA John Boyle.
Domestic Violence Abuser Sentenced to 10 Years for Unlawful Possession of a FirearmRead the Press Release
A convicted domestic violence offender discovered with a firearm was sentenced last week to 10 years in federal prison, the statutory maximum sentence, following an investigation by the ATF Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Desmond Greer, 26, pleaded guilty in March to possession of a firearm by a convicted felon.
Dallas County Court records show that in in 2016, Mr. Greer was twice convicted of Assault Family Violence after repeatedly punching and choking the 22-year-old mother of his children – two offenses that disqualified him from having a gun.
In spite of this restriction, Mr. Greer was seen brandishing a M-15 multi-caliber rifle during a dispute with a customer at his auto shop, federal prosecutors said.
“Federal law forbids convicted abusers from carrying guns – in part because research shows domestic violence offenders are five times more likely to kill their partner when there’s a gun in the home,” said U.S. Attorney Nealy Cox. “Prosecuting offenders who violate these domestic violence firearm restrictions is homicide prevention, plain and simple.”
“Mr. Greer is a convicted felon with a history of domestic violence offenses,” stated ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II. “When prohibited people and abusers unlawfully possess firearms, the probability of intimate partner homicide increases substantially. This sentence ensures Mr. Greer will not be a threat to the public, or to his family, for a very long time.”
The case was brought as 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.
The prosecution is also part of Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney John J. Boyle prosecuted the case. Chief U.S. District Judge Barbara M. G. Lynn handed down the sentence.
Lead Defendant in DFW Airport Drug-Smuggling Ring Sentenced to 16+ YearsRead the Press Release
The lead defendant in a drug-smuggling ring that attempted to traffic methamphetamine through the Dallas Fort Worth International Airport was sentenced this afternoon to 16 years and 8 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Nelson Pabon, 48, pleaded guilty in March to conspiracy to possess with intent to distribute a controlled substance.
In plea papers, Mr. Pabon – a former airline supervisory crew chief from Friendswood, Texas– admitted that he worked with several individuals to circumvent security at DFW Airport in order to load purported drugs onto commercial flights.
Mr. Pabon told undercover agents that because he received advance notice of narcotic canine baggage sweeps, he was well-positioned to sneak drugs onto cross-country jets in return for cash.
On at least six occasions between August 2016 and May 2018, Mr. Pabon and his coconspirators smuggled purported crystal meth – in actuality a dummy substance provided by undercover agents – onto commercial flights to Newark, New Jersey, he admitted.
Other members of the conspiracy smuggle purported crystal methamphetamine onto commercial flights to Charlotte, North Carolina, and Phoenix, Arizona.
Mr. Pabon further acknowledged he even contemplated smuggling inert explosives, which he was told would not combust en route, and told others, including Michael Alexis Rivera Vasquez and Jean Loui Vargas Malave, that they would get paid more for smuggling the explosives.
“These defendants attempted to subvert the security systems that keep Americans safe in the skies,” said U.S. Attorney Nealy Cox. “Airport and airline workers cannot be allowed to leverage their positions of trust and profit off transporting deadly substances. We must all be insist that every precaution is taken to prevent security breaches of this type. ”
“The defendants exploited their employee access for personal gain and jeopardized the safety of airline travelers. The FBI would like to thank our local and federal partners for working with us to dismantle this criminal enterprise,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “Our citizens expect all airports to be safe and secure. We will remain vigilant and investigate anyone who attempts to compromise aviation security.”
Mr. Pabon is one of 12 coconspirators indicted in two cases involving bypassing airport security to smuggle contraband onto commercial airline flights at DFW. Two co-defendants, Benitez Matienzo, a 46 -year-old baggage handler, and Michael Alexis Riviera Vasquez, a 22-year-old baggage handler, were sentenced today to 45 months and 48 months, respectively.
Camacho Melendez, 23, was sentenced Thursday to 97 months in federal prison; Cristian David Cruz-Rodriguez, 24, was sentenced in October to 65 months; Joshua Israel Pagan Zapata, 22, was sentenced in October to 63 months; Domingo Villafane Martinez, 32, was sentenced in August to 27 months; Jose Luis Gaston-Rolon, 25, was sentenced in August to 87 months; Luis Javier Collazo Rosado, 23, was sentenced in July to 30 months; and Kiir Akan Carson, 26, was sentenced in June to 12 months, 1 day, all for conspiracy to possess with intent to distribute a controlled substance.
Jean Loui Vargas Malave* is the only remaining captured defendant pending sentencing. He is set to be sentenced on January 23, 2020.
The law enforcement operation was led by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorneys George Leal, John de la Garza, and John Kull are prosecuting the cases.
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*UPDATE, 2/3/2020: Co-defendant Jean Loui Vargas Malave, 23, was sentenced on January 31, 2020 to 10 years in federal prison for conspiracy to possess with intent to distribute methemphetamine.
Brownfield Doctor Sentenced to Five Years in Federal Prison for Prescribing Without Legitimate Medical PurposeRead the Press Release
A Brownfield doctor who prescribed drugs without legitimate medical purpose was sentenced today to five years in federal prison and ordered to pay $70,000 in restitution following an investigation by the DEA, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Dr. Dennis D. Tedford, a 59-year-old family medicine doctor, pleaded guilty in May to distributing or dispensing a Schedule IV controlled substance by a practitioner.
In plea papers, Dr. Tedford admitted that he intentionally dispensed alprazolam, a Schedule IV benzodiazepine, and carisoprodol, a Schedule IV muscle relaxer, to an individual identified as “R.M.” for reasons other than for a legitimate medical purpose and in the usual course of his professional practice.
“Texans expect their doctors to prescribe drugs only when they’re medically necessary,” said U.S. Attorney Nealy Cox. “This defendant took advantage of his medical license to spread drugs throughout his community. We are grateful to the analysts and investigators who were able to identify his criminal behavior and put a stop to it.”
“A physician who is board certified in family practice should never prescribe pain medicine at the levels Dennis Tedford was prescribing, many for non-medical purposes,” said Special Agent in Charge of the DEA Dallas Field Division Clyde E. Shelley, Jr. “Addiction destroys people and families.
Dr. Tedford’s factual resume states that in January 2018, a source of information (SOI) at a pharmacy in Lubbock contacted the DEA to express concerns about Dr. Tedford’s prescribing practice. The SOI stated that Dr. Tedford prescribed high quantities of hydrocodone, as well as alprazolam and carisoprodol. According to the SOI, individuals were driving from Lubbock to Brownfield – located approximately 45 minutes southwest of Lubbock – to see Dr. Tedford and then returning to Lubbock to fill the prescriptions. The SOI said that Dr. Tedford’s patients would frequently ask for early refills.
In March 2018, DEA diversion investigators requested an analysis from the Texas Commissioned Online Prescription System (TXCOPSRX), comparing Dr. Tedford’s prescribing to all physicians located in Terry County (est. population 12,739) and Lubbock County (est. population 299,453) over a two year period. According to TXCOPSRX, Dr. Tedford ranked ninth for total number of prescriptions issued for hydrocodone in Lubbock and Terry Counties combined, having prescribed 524,777 doses of hydrocodone to 341 patients between March 2016 and March 2018. Dr. Tedford was ranked first in the total number of prescriptions issued for carisoprodol in Lubbock and Terry Counties combined, having prescribed 96,763 doses of carisoprodol during this time period to 102 patients.
The investigators knew that it was highly unusual for a family medicine physician that specializes in obstetrics and who is not registered with the State of Texas as a pain management clinic to be ranked this high for hydrocodone prescriptions.
They requested an second TXCOPSRX analysis of Dr. Tedford’s prescribing and learned that between January 2016 and December 2017, the top three controlled substance prescriptions written by Dr. Tedford were for hydrocodone, carisoprodol, and alprazolam. Specifically, according to what was reported to the Texas Department of Public Safety, Dr. Tedford wrote prescriptions totaling 539,637 hydrocodone tablets, 96,519 carisoprodol tablets, and 33,955 alprazolam tablets in this two-year time period. Most notably, of the hydrocodone tablets prescribed by Dr. Tedford, approximately 98 percent of these tablets contained the highest two dosage strengths available (7.5 mg or 10 mg). Approximately 99.9 percent of the carisoprodol tablets contained the highest dosage strength (350 mg) available.
In July 2018, DEA requested that a doctor who is board certified in family medicine and a clinical professor at the University of California, Irvine School of Medicine review some of Dr. Tedford’s patient files to determine whether Dr. Tedford prescribed certain controlled substances for a legitimate medical purpose and in the usual course of his professional practice.
This medical expert reviewed patient files for a dozen of Dr. Tedford’s patients and found that, in 10 of those 12 cases, Dr. Tedford prescribed controlled substances for no legitimate medical purpose, that his prescribing was far outside the usual course of legitimate professional medical practice, and that there were multiple departures from the Standard of Care.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Jeffrey R. Haag led the prosecution. United States District Judge James Wesley Hendrix handed down the sentence.
Lubbock County Man Convicted of Enticement of 11-Year-Old NieceRead the Press Release
A Shallowater, Texas man was convicted today of enticement and attempted enticement of a minor following an investigation by the FBI’s Lubbock Resident Agency, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
John David Martinez, 32, was indicted in August. Following a day and a half of trial, a federal jury deliberated for just 15 minutes before finding him guilty.
According to evidence presented at trial, Mr. Martinez initiated a text chain with his 11-year-old niece in July 2018.
Over the course of 7,702 text messages, he bullied the young girl into agreeing to have sex with her then 31-year-old uncle.
Fortunately, the child’s babysitter spotted the messages on her phone, and law enforcement was able to intervene before Mr. Martinez could actually molest the child.
The defendant now faces a potential sentence of up to life in federal prison. His sentencing date has not yet been set.
The Federal Bureau of Investigation, Shallowater Police Department, and Lubbock County Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Sean Long are prosecuting the case. U.S. District Judge James Wesley Hendrix presided over the trial.
NDTX Round-Up December 3Read the Press Release
SENTENCING - LEONARDO MARROQUIN
On November 21, Leonardo Marroquin, 30, was sentenced to 2 years and 9 months in federal custody for possession with the intent to distribute methamphetamine. On February 23, 2017, Marroquin committed a traffic violation and was stopped by officers. During the traffic stop he was found to be in possess of 498 grams of methamphetamine. The case was investigated by the Drug Enforcement Administration and the Dallas Police Department and prosecuted by AUSA George Leal.
SENTENCING – DEBRA DAVIS THOMPSON
On November 21, Debra Davis Thompson, 47, was sentenced to 2 years in federal custody for tax evasion. In 2013, Thompson filed a false Income Tax Return Form and submitted it to the Internal Revenue Service. She underrepresented her income by $218,304, defrauding the American government of $69,064 in taxes. This case was prosecuted by AUSA Nick Bunch and investigated by the Internal Revenue Service – Criminal Investigation and the United States Secret Service.
SENTENCING – RICKY LOVELY
On November 21, Ricky Lovely, 31, was sentenced to 3 years and 5 months in federal custody for possession of stolen firearms and aiding and abetting. In May 2017, an ATF agent, acting on information provided to the agency, called and arranged a meeting with Lovely. The agent purchased three firearms from Lovely at a QuikTrip gas station, and confirmed through records checks that two of the pistols were stolen. Lovely was found to be in possession of another pistol that he intended to sell at the time of his arrest. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by AUSA Myria Boehm and AUSA Cara Pierce.
Dallas Man Found with 10 Machineguns Charged with Gun CrimesRead the Press Release
A federal grand jury indicted a Dallas man for gun and drug crimes after he was discovered with multiple unlawful machineguns, as well as heroin and cocaine, following an investigation by the ATF, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ramon Navarro, III – aka Trae Alvarez – was charged with four counts of possession of an unregistered firearm and eight counts of distribution of a controlled substance. He has been ordered detained pending trial.
According to court documents, Mr. Navarro, 21, allegedly possessed at least four standalone machinegun conversion sears, three-piece devices designed to convert semiautomatic weapons into machineguns.
He also allegedly possessed at least six Glock pistols with incorporated sears, which effectively transformed the Glocks into machineguns.
“This defendant attempted to circumvent our nation’s gun laws by converting legal firearms into unlawful machineguns,” said U.S. Attorney Nealy Cox. “Machineguns have no place on the streets of Dallas. Using federal firearm laws to reduce gun violence is among the Justice Department’s highest priorities.”
“When firearms and drugs can be readily obtained in an underground market, the challenge of reducing violence in our communities is much greater,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “Individuals who bypass regulations designed to protect our communities fuel the devastation possible when firearms end up in the hands of prohibited persons as well as impede justice for the victims.”
Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.
In a criminal complaint filed in October, an undercover ATF agent alleged that Mr. Navarro sold him at least three of the converted Glocks for roughly $1,500 apiece, and even demonstrated one firearm’s functionality as a machinegun.
All of the machinegun conversion sears in Mr. Navarro’s possession lacked serial numbers and were of unknown origin.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Linda Requénez is prosecuting the case.
This case was prosecuted under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.
NDTX Round-Up November 19Read the Press Release
SENTENCING - Michael Webb
On November 14, Michael Webb, 51, was sentenced to life in federal prison for the kidnapping of an 8 year old girl in Fort Worth. Webb took the child from her mother’s arms in May of 2018 and held her captive for hours in a hotel room. To read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, Homeland Security Investigations and the Texas Department of Public Safety. The case was prosecuted by US Attorney Erin Nealy Cox and AUSA Aisha Saleem.
SENTENCING - Marco Antonio Duran Gaona
On Novmeber 14, Marco Antonio Duran Gaona, 32, was sentenced to 11 years and 3 months in federal custody for possession with intent to distribute heroin. Duran Gaona was also ordered to forfeit $21,980 that was determined to be proceeds of drug trafficking. Duran Gaona was the passenger in a vehicle that contained approximately 20 kilograms of methamphetamine. Agents subsequently searched Duran Gaona’s residence, and located an additional 40 kilograms of methamphetamine, 30 kilograms of heroin, packing materials and a scale. This case was investigated by the Federal Bureau of Investigation, the Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department and was prosecuted by AUSA George Leal.
SENTENCING - Edgard Jose Sanabria-Carballo
On November 14, Edgard Jose Sanabria-Carballo, 30, was sentenced to 3 years and 10 months in federal custody for possession with intent to distribute cocaine. Sanabria-Carballo was observed at the Tornado Bus Station in Dallas, Texas. Officers received permission to search his luggage inside the terminal. During the search officers found approximately 8.038 kilograms of a substance that tested positive for cocaine. Sanabria-Carballo was then arrested. The case was investigated by the Federal Bureau of Investigation and the Dallas Police Department and was prosecuted by AUSA George Leal.
GUILTY PLEA – Kyle Daniel Pearcy
On November 12, Kyle Daniel Pearcy, 26, pled guilty to 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.
SENTENCING – Jordan Rotenberry
On November 14, Jordan Rotenberry was sentenced to 4 years and 8 months in federal custody for conspiracy to commit access device fraud. Rotenberry obtained devices such as stolen debit and credit cards with which he purchased goods and services at hotels across the Dallas, TX area. Rotenberry and his coconspirators possessed approximately 695 unauthorized and counterfeit access devices during a 5 month period, which they obtained through chat rooms, the dark web, and Facebook messages. This case was investigated by the United States Secret Service and the Colleyville Police Department and was prosecuted by AUSA Ryan Raybould.
MS-13 Gang Member Sentenced to 20 Years in Machete Attack CaseRead the Press Release
An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR). U.S. District Judge Jayne Boyle for the Northern District of Texas sentenced Amaya-Alvarez Nov. 14.
According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.
In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.
That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine. The man came with two other men and a female acquaintance. When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait.
After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents. The three men fled, but the female could not escape and was savagely maimed and left for dead.
Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation. Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case.
MS-13 Gang Member Sentenced to 20 Years in Machete Attack CaseRead the Press Release
An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox Assistant Attorney General Brian A. Benczkowski.
“We cannot allow machete-wielding gang members to menace our neighborhoods,” said U.S. Attorney Nealy Cox. “The feds are determined to put anyone who commits violence in the name of this brutal transnational gang behind bars.”
“Transnational MS-13 gang members brutally target rival gangs in the U.S. and use our cities as their own personal urban battlefield,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “This gang member’s reign of terror in the U.S. is over while he spends the next 20 years in U.S. federal prison.”
Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR). U.S. District Judge Jayne Boyle handed down Amaya-Alvarez’s sentence on Nov. 14.
According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.
In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.
That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine. The man came with two other men and a female acquaintance. When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait.
After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents. The three men fled, but the female could not escape and was savagely maimed and left for dead.
Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody and Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section are prosecuting the case.
Suspected Neo-Nazi Charged with Gun CrimeRead the Press Release
A suspected neo-Nazi was charged with a gun crime following an investigation by the FBI, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, was charged with possession of a firearm by an unlawful user of a controlled substance after he was arrested in Post, Texas, dressed in tactical gear and in possession of multiple assault rifles.
A federal grand jury indicted Mr. Bruce-Umbaugh Wednesday.
According to a criminal complaint filed a week prior, local law enforcement executed a traffic stop for a blue Ford Focus on Nov. 4. The vehicle was driven by Kaleb Cole; Mr. Bruce-Umbaugh was seated in the front passenger seat.
Inside the vehicle, law enforcement allegedly discovered an AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, at least 1,500 rounds of ammunition, a small canister of marijuana, and approximately two grams 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 the complaint.
“Federal prosecutors are committed to enforcing our nation’s gun laws to keep communities safe,” said U.S. Attorney Nealy Cox. “As a drug user, this defendant should never have been allowed to possess firearms.”
“The large amount of weapons and ammunition seized from the defendant is alarming and we understand there is a cause for concern,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “The FBI works with our law enforcement partners daily to protect our communities from harm. We want to reassure the public that swift action was taken to remove weapons from a dangerous individual.”
In a detention hearing Wednesday, 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” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Propaganda videos admitted into evidence – which spew hateful rhetoric against Jews – depict members of the AtomWaffen Division at self-described “hate camps” practicing hand-to-hand combat and shooting firearms.
An indictment is a formal accusation of criminal conduct, not evidence. Like all defendants, Mr. Bruce-Umbaugh is innocent unless and until proven guilty in a court of law.
If convicted, he faces a sentence of up to 10 years in federal prison.
The Federal Bureau of Investigation’s Lubbock Resident Agency and the Garza County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Russell Lorfing is prosecuting the case.