Northern District of Texas
Press releases recorded for this federal judicial district.
USAO NDTX Weekly Roundup -- 10/19/18Read the Press Release
PLEA – Kendell Jackson, 24
On Oct. 16, Kendell Jackson of Dallas pled guilty to bank robbery and firearm charges. Jackson admitted that in January, he entered the BBVA Compass Bank on West Northwest Highway in Dallas with a .40 caliber handgun. He used that gun to jeopardize the life of a bank teller so that he could steal several thousand dollars in U.S. currency. Police apprehended Jackson nearby after a dye-pack exploded, forcing Jackson to stop at a Jack-in-the-Box to try to clean himself. Both the money and the gun were recovered. Jackson now faces a minimum of 7 years and up to life in prison as well as a fine of up to $250,000. The FBI and the Dallas Police Department investigated.PLEA – Valandus Gibson, 29
On Oct. 16, Valandus Javon Gibson of Chicago, IL, pleaded guilty to conspiracy to money laundering. Gibson admitted to conspiring with others to conduct financial transactions involving no less than $209,000, which were the proceeds of unlawful activity (namely: wire fraud). He now faces up to 20 years in prison and a fine of at least $500,000. The United States Postal Service investigated the case.SENTENCING – Olusola Akingbade, 55
On Oct. 17, Olusola Akingbade was sentenced to more than 5 years in federal prison and ordered to pay $2.5 million in restitution for his role in a Medicare home health care fraud. A jury convicted Akingbade on one count of conspiracy to commit health care fraud and three counts of health care fraud following a one-week trial in June 2017. Akingbade, a registered nurse at Paradise Home Health, falsified patient files to make non-homebound patients appear qualified for services and facilitated the payment of cash kickbacks to patients.SENTENCING – Alan Nash, 41
On Oct. 18, a Dallas-area pimp who preyed on teenage girls was sentenced to life in prison. Alan Nash was convicted in April of sex trafficking of children, conspiracy to commit sex trafficking, sex trafficking through force, fraud or coercion, transportation of a minor to engage in commercial sex acts, and illegal possession of ammunition after he forced two victims, aged 17 and 19, into the illicit sex trade in the fall of 2014.” I think it’s safe to say the devil lives in him,” a victim wrote in an impact statement read aloud in court at sentencing. Release here.VERDICT – Marco Lopez, 25
On Oct. 19, a federal jury convicted Marco Lopez of engaging in a conspiracy to distribute cocaine in a case involving a failed drug deal turned shootout. During the trial, jury heard evidence that at the scene of a shooting on “Hideout Road” in rural Navarro County, authorities discovered a kilogram of cocaine, two handguns smeared with blood, and an abandoned duffel bag full of counterfeit cash. They later identified Marco Lopez, who called 911 for a gunshot wound to his arm, on surveillance video buying a package of counterfeit pens. He faces up to 40 years in federal prison. The DEA, U.S. Marshal’s Service, and Navarro County Sheriff’s Office conducted the investigation.PLEA -- Leslie Summitt, 53
Leslie Eugene Summitt of Keene, Texas pleaded guilty to conspiring to possess with intent to distribute methamphetamine. He now faces up to 20 years in prison and is set to be sentenced January 31, 2019.SENTENCING -- Mia Vasquez, 44
Mia Vasquez of Dallas, Texas, was sentenced to just over 3 years in federal prison after pleading guilty to conspiring to possess with intent to deliver 1 kilogram or more of heroin in late 2013 and early 2014.PLEA – Kendell Jackson, 24
On Oct. 16, Kendell Jackson of Dallas pled guilty to bank robbery and firearm charges. Jackson admitted that in January, he entered the BBVA Compass Bank on West Northwest Highway in Dallas with a .40 caliber handgun. He used that gun to jeopardize the life of a bank teller so that he could steal several thousand dollars in U.S. currency. Police apprehended Jackson nearby after a dye-pack exploded, forcing Jackson to stop at a Jack-in-the-Box to try to clean himself. Both the money and the gun were recovered. Jackson now faces a minimum of 7 years and up to life in prison as well as a fine of up to $250,000. The FBI and the Dallas Police Department investigated.PLEA – Valandus Gibson, 29
On Oct. 16, Valandus Javon Gibson of Chicago, IL, pleaded guilty to conspiracy to money laundering. Gibson admitted to conspiring with others to conduct financial transactions involving no less than $209,000, which were the proceeds of unlawful activity (namely: wire fraud). He now faces up to 20 years in prison and a fine of at least $500,000. The United States Postal Service investigated the case.SENTENCING – Olusola Akingbade, 55
On Oct. 17, Olusola Akingbade was sentenced to more than 5 years in federal prison and ordered to pay $2.5 million in restitution for his role in a Medicare home health care fraud. A jury convicted Akingbade on one count of conspiracy to commit health care fraud and three counts of health care fraud following a one-week trial in June 2017. Akingbade, a registered nurse at Paradise Home Health, falsified patient files to make non-homebound patients appear qualified for services and facilitated the payment of cash kickbacks to patients.SENTENCING – Alan Nash, 41
On Oct. 18, a Dallas-area pimp who preyed on teenage girls was sentenced to life in prison. Alan Nash was convicted in April of sex trafficking of children, conspiracy to commit sex trafficking, sex trafficking through force, fraud or coercion, transportation of a minor to engage in commercial sex acts, and illegal possession of ammunition after he forced two victims, aged 17 and 19, into the illicit sex trade in the fall of 2014.” I think it’s safe to say the devil lives in him,” a victim wrote in an impact statement read aloud in court at sentencing. Release here.VERDICT – Marco Lopez, 25
On Oct. 19, a federal jury convicted Marco Lopez of engaging in a conspiracy to distribute cocaine in a case involving a failed drug deal turned shootout. During the trial, jury heard evidence that at the scene of a shooting on “Hideout Road” in rural Navarro County, authorities discovered a kilogram of cocaine, two handguns smeared with blood, and an abandoned duffel bag full of counterfeit cash. They later identified Marco Lopez, who called 911 for a gunshot wound to his arm, on surveillance video buying a package of counterfeit pens. He faces up to 40 years in federal prison. The DEA, U.S. Marshal’s Service, and Navarro County Sheriff’s Office conducted the investigation.PLEA -- Leslie Summitt, 53
Leslie Eugene Summitt of Keene, Texas pleaded guilty to conspiring to possess with intent to distribute methamphetamine. He now faces up to 20 years in prison and is set to be sentenced January 31, 2019.SENTENCING -- Mia Vasquez, 44
Mia Vasquez of Dallas, Texas, was sentenced to just over 3 years in federal prison after pleading guilty to conspiring to possess with intent to deliver 1 kilogram or more of heroin in late 2013 and early 2014.United States Attorney Announces Appointment of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox is pleased to announce the appointment of three new Assistant United States Attorneys: Jon Bradshaw, assigned to the Dallas Appellate Division, Levi Thomas, assigned to the Fort Worth Criminal Division, and Linda Requenez, assigned to the Dallas Criminal Division’s Narcotics & OCDETF section.
All three prosecutors were sworn in on October 15 before Chief U.S. District Judge Barbara M.G. Lynn.
A graduate of Texas A&M University and the University of Denver Sturm College of Law, Mr. Bradshaw joins the U.S. Attorney’s Office from the United States District Court of the Northern District of Texas, where he served as a Staff Attorney focusing on the habeas docket. He also worked as an Attorney at the United States Court of Appeals for the Third Circuit. Mr. Bradshaw’s father was a police officer for 39 years; his son shares his father’s dedication to law enforcement and public service.
Mr. Thomas, who will focus on immigration cases, formerly served as an Attorney at the U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE) division. Before that, he served as a Law Clerk for the U.S. Court of Appeals for the Fifth Circuit under the Honorable Catharina Haynes, and for the U.S. District Court for the Eastern District of Texas under the Honorable Zack Hawthorn. He earned his undergraduate degree from Texas A&M University and his J.D. from New York University School of Law.
An alumna of the University of Texas and Texas Southern University’s Thurgood Marshall School of Law, Ms. Requenez returns to the Northern District of Texas from the Southern District of Texas, where she prosecuted a range of violent crimes. During a previous stint in Dallas, she served as an AUSA here at the U.S. Attorney’s Office and as an Assistant Criminal District Attorney for Dallas County Criminal District Attorney’s Office.
“I’m proud to have these excellent attorneys on our teams in Dallas and Fort Worth,” said Nealy Cox. “I know they will fight for justice in North Texas.”
As PSN Celebrates Anniversary, Dallas Taskforce Surpasses 100 ArrestsRead the Press Release
As the National “Project Safe Neighborhoods” Initiative celebrates its one-year anniversary today, U.S. Attorney Erin Nealy Cox is proud to announce that the Dallas PSN Taskforce has executed its 100th arrest.
Fifty of these violent criminals have been charged in federal court, and dozens more face charges filed by the Dallas County District Attorney’s Office.
Dubbed “Operation Badge #10934” in honor of fallen DPD Officer Rogelio Santander, Dallas PSN was launched in February 2018 to tackle increasing violent crime.
Led by U.S. Attorney Nealy Cox and Dallas Police Chief Renee Hall, the PSN Taskforce -- a coalition of federal and local law enforcement that includes FBI, ATF, DEA, and the U.S. Marshals Service -- worked with TCU criminologists to analyze district-wide violent crime data. They zeroed in on a violent crime “hotspot,” a diverse community of around 98,000 people nestled at the intersection of Route 75 and LBJ Freeway. Home to densely-packed apartment complexes housing a significant refugee community, the neighborhood has a $41,883 median household income, a median age of just over 30, and more than 21,000 kids under the age of 14.
The PSN Taskforce believed the neighborhood, which suffers more than 15 homicides on average each year and ranks high in aggravated assaults and robberies, could benefit from a three-pronged approach, combining traditional enforcement, community outreach, and recidivism reduction.
Underscoring PSN Dallas’ momentum, the Justice Department this week awarded the Northern District of Texas more than $700,000 to fund PSN efforts in 2019.
Prong 1: Law Enforcement
PSN’s message to bad actors who set up shop in the hotspot is simple: We will not ignore violent crime in this community, and we will use every tool at our disposal to combat it.A group of more than 60 PSN taskforce officers and agents -- from the Dallas Police Department, FBI – Dallas Division, DEA, ATF, U.S. Marshals, Dallas Sheriff’s Office, Dallas District Attorney’s Office, DISD, and DART -- come together every week to review arrests and identify trends.
PSN AUSAs have charged dozens of individuals with federal felonies, ranging from carjacking to straw purchasing. Cases include:
- Keon Dwayne Thompson, Meco Deere, and Girtha Johnson, charged with kidnapping an individual known as “M.M.” in an effort to obtain money.
- Michael McConico, charged with felon in possession of a firearm after he was caught on surveillance camera shooting a 9mm handgun at an unknown victim behind a “Family Dollar” store. (VIDEO FOOTAGE of the shooting available upon request.)
- Aaron David Stallworth, aka “Ace,” charged with attempted carjacking after he used violence and intimidation to attempt to steal a 2010 Chevrolet Traverse.
- Demoushae and Tashonna Marsh, the straw purchasers of a gun later used to murder an innocent man, charged with acquiring a firearm by false statements after they purchased two 9mm Glock pistols from Academy Sports + Outdoors.
Prong 2: Community Outreach
Central to PSN’s mission is holding violent offenders accountable, but even the best law enforcement officers need the help – and trust – of crime victims and witnesses. PSN works to foster strong bonds between law enforcement and the PSN neighborhood’s burgeoning immigrant community.To that end, the taskforce translated educational materials into eight languages, then posted information cards detailing PSN goals and tip-line contacts at local retailers. The team reiterated the message at more than 45 community events with neighborhood groups, apartment managers, and local business organizations, where they spoke about the vision for a safer neighborhood and how residents could help achieve it.
As part of a project nicknamed “Operation Greenlight,” they encouraged locals to install security cameras at key intersections. And next month, the PSN taskforce will begin gang prevention sessions at high schools inside the hotspot.
PSN’s outreach has already yielded tangible results, including collaboration with residents leading to the arrests of several violent offenders.
In August, the U.S. Attorney’s Office celebrated these strides by hosting over 1,000 guests at the first annual Community Unity Festival at Tasby Middle School. While adults munched on complementary “Back the Blue” DPD BBQ and surveyed the job fair and wellness screenings, their kids peeked into the DEA chopper, crawled inside the FBI SWAT vehicle, donned tactical gear, and shot hoops with law enforcement officers. (PHOTOS available.)
Prong 3: Recidivism Reduction
Much of the PSN area crime is perpetrated by recidivists previously convicted of state and local offenses. PSN seeks to offer men and women recently released from prison or entering probation an alternative.One night a month, the taskforce hosts a mandatory Reentry Night, outlining ramifications of re-offending and presenting a buffet of resources, from job placement programs to counseling opportunities.
The sessions, typically attended by 300 people or more, strike a positive note, including video vignettes with testimony from former felons. In surveys distributed at the close of the session, 96% of attendees rated the program “helpful” in their reentry journey.
Our Goal
Following two years of alarming increases in 2015 and 2016, thankfully, statistics nationwide show a small but encouraging dip in violent crime in 2017. The U.S. Attorney is confident that working together, the PSN’s three-pronged approach will spark a similar downswing in violent crime in Dallas, creating safer neighborhoods across the metroplex.“I’m so proud of the way our local and federal law enforcement have come together to build relationships with the community and foster lasting change in a neighborhood that’s long been plagued by crime,” said U.S. Attorney Nealy Cox. “I’m confident this data-driven, comprehensive strategy can have a real impact. This community deserves nothing less.”
“We are truly excited about the success of Project Safe Neighborhood. This is community policing partnerships at its best. Since its inception, we’ve seen an overall reduction in crime of 6.43 percent,” added Dallas Police Chief Reneé Hall. “This dynamic initiative allows the Dallas Police Department’s PSN team to collaborate weekly on strategies to identify and target enforcement. The Dallas community is a safer area to live, work and play.”
“Creating a safe environment for Dallas citizens, with the assistance of law enforcement at every level, is a noble undertaking,” said Eric K. Jackson, FBI Special Agent in Charge of the Dallas Division. “The FBI supports PSN, and will be a part of making the City of Dallas safer for future generations.”
“DEA is proud to work in conjunction with the United States Attorney’s Office for the Northern District of Texas as well as numerous other federal, state and local law enforcement entities to combat violent crime as part of the Project Safe Neighborhood Initiative,” stated DEA Dallas Field Office Special Agent In Charge Clyde E. Shelly. “The partnership embodies the DEA motto, ‘Tough work, vital mission.’”
“ATF, our law enforcement partners and the strategic application of intelligence and resources have removed firearms and violent offenders from this community plagued by crime,” stated ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II. “I am confident the immediate impact is positive, and look forward to realizing the results of strategies beyond crime reduction. ATF remains committed to Project Safe Neighborhoods, the public, schools and businesses we serve through civic events, social media and crime prevention efforts designed to keep communities safe and thriving.”
“The U.S. Marshals Service, along with our federal, state, and local partners, is committed to the reduction of crime in our local neighborhoods,” said U.S. Marshal for the Northern District of Texas Richard Taylor. “While the USMS remains dedicated to locating and apprehending the most violent offenders, this partnership presents the opportunity to reach out to the community to help prevent crime.”
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.”
Surgeon Pleads Guilty in Forest Park Medical Center Bribery ScamRead the Press Release
A Mesquite-based bariatric surgeon today formally admitted his role in the $200 million Forest Park Medical Center fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
53-year-old Wade Neal Barker, one of Forest Park’s founding doctors, appeared in court this morning, where he pleaded guilty to conspiracy to pay and receive healthcare bribes and kickbacks as well as aiding and abetting commercial bribery.
“Patients trust doctors to make healthcare recommendations based on their best interests,” said Nealy Cox. “Instead, Dr. Barker let his own financial considerations guide decisions about where patients would be treated – and, in the process, defrauded millions from patients’ insurance. The Northern District of Texas will not tolerate plots that undermine confidence in the healthcare system.”
“With the plea in this conspiracy to defraud patients and the healthcare industry by those entrusted to administer and to protect it, the FBI and our law enforcement and regulatory partners will increase our efforts to shine even brighter lights on such schemes to restore the missing trust for all those harmed by the conspirator's actions,” said Eric Jackson, Special Agent-In-Charge of the FBI Dallas Division.
Barker is the seventh of 21 defendants to formally plead guilty in the bribery scheme, designed to induce doctors to refer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now-defunct hospital, as opposed to other facilities.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
According to prosecutors, Barker and his co-conspirators shelled out approximately $40 million in bribes, disguised as “marketing money” and funneled through a shell company, between 2009 and 2013. Because he performed surgeries at Forest Park, Barker received these so-called “marketing” payments as well.
He faces roughly five to seven years in federal prison. Sentencing has not yet been set.
Co-defendants Richard Ferdinand Toussaint, Jr., another Forest Park Founder, and Alan Andrew Beauchamp, the hospital manager, have pleaded guilty in the case, along with several others. The remaining defendants are awaiting trial early next year.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.
High School Art Teacher Charged Following Sexual Relationship with 16-Year-Old StudentRead the Press Release
A 40-year-old Lubbock high school teacher has been charged with enticement and attempted enticement of his 16-year-old female student, U.S. Attorney Erin Nealy Cox announced today.
According to a criminal complaint filed in federal court, Scott Riley Hall, an art teacher at Coronado High School, allegedly engaged in sexual intercourse with a 10th grade girl at her home in August.
The relationship allegedly began last summer, after the victim confided in Hall about a difficult situation she’d encountered at school the previous year. In September, the victim’s mother stumbled upon some sexually explicit emails they’d shared:
“I love touching you,” Hall wrote in one email. “One of these days, we are going to spend hours watching movies and rolling around in bed.”
“Seeing you (even briefly), dreaming of the next time, and reminiscing about the last time. These things make me sad, too, but they help me cope until we are just together. Always,” he wrote in another.
“I do hope you rested well and that you felt better than hating our situation,” he said in a third. “I’ll see you at school soon. I love you my dear.”
After the victim admitted to her mother that she’d had sex with Hall, the mother confronted the teacher.
“I am not sure of what you believe has happened, but my fault was caring too much in the wrong way,” Hall admitted to the mother in a follow-up text. “I will agree to any measure you would like me to take I [sic] regards to distancing myself… I am so sorry to have hurt either of you.”
“I truly wanted to be that Art Dad, but I let my care for her cross a line. It was a huge mistake,” he continued. “It was misguided affection. I am very sorry. I will do anything you ask to keep this from being a legal or professional situation.”
“I am not a predator,” Hall said.
Hall later told police that he’d developed “strong feelings” for the 16-year-old girl, and agreed their interactions were “inappropriate.” Confronted with numerous email and text conversations, he admitted his communications with the victim were sexual in nature.
A criminal charge is merely an allegation, and the defendant is presumed innocent until proven guilty in a court of law. If convicted, Hall faces up to life in federal prison. He’s also facing charges in state court.
The Federal Bureau of Investigation’s Dallas Field Division, the Lubbock Police Department, and the Lubbock Independent School District Police Department conducted the investigation; Assistant U.S. Attorney Jeff Haag is prosecuting the federal case.
DOJ Announces More Than $70 Million to Support School SafetyRead the Press Release
U.S. Attorney Erin Nealy Cox joins the Department of Justice in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident – including more than a million dollars in grants for several awardees operating in the Northern District of Texas.
Grants to entities in NDTX include:
- $500,000 to Tarrant County (STOP Prevention grant)
- $499,997 to the City of Arlington (COPS grant)
- $249,992 to Amarillo ISD (STOP Prevention grant)
- $80,000 to O’Donnell ISD (STOP Prevention grant)
- $15,885 to the City of Benbrook (COPS grant)
- $1 million to the statewide Texas Education Agency (STOP Threat Assessment grant)
“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
“As the chief federal law enforcement officer in North Texas -- and mother of three students – few things are as important to me as the safety and security of our school children,” said Nealy Cox. “This significant investment by the Justice Department will go a long way to ensure the safety of students and educators in the Northern District of Texas”
The Office of Justice Program’s Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.
- BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
- The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million.
- The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.
The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program. These grant programs help states automate and upgrade records accessed by the firearms background check system. This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.
USAO NDTX Weekly Roundup -- 9/27/18Read the Press Release
INDICTMENT* – James Maraia, 70
On Sept. 25, a federal grand jury indicted James Lawrence Maraia of Cedar Hill on child pornography charges. He allegedly used a peer-to-peer computer program to share and collect child pornography over a five year period. If convicted, Mr. Maraia faces up to 20 years for each count. The FBI investigated.INDICTMENT* - Larry Rider & Kevin Harris
On September 25, in two seperate cases, a federal jury indicted Larry Rider and Kevin Harris, both Dallas residents, for felon in possession of a firearm. If convicted, both men face up to 10 years in federal prison. The Dallas Police Department and FBI investigated the case.
INDICTMENT* – David Stallworth, 36
On Sept. 26, a federal grand jury indicted Aaron David Stallworth, aka “Ace,” for attempted carjacking. He allegedly used violence and intimidation to steal a 2010 Chevrolet Traverse. If convicted, Mr. Stallworth faces up to 45 years in federal prison. This case was brought as part of the U.S. Attorney’s Project Safe Neighborhood initiative, which brings together federal and local law enforcement to target the community’s most pressing crime problems. The Texas Rangers investigated.INDICTMENT* – Jesus Gonzales, 18
On Sept. 26, a federal grand jury indicted Jesus Antonio Gonzalez of Irving on drug trafficking and firearms charges. On August 20, Mr. Gonzales -- who was allegedly dealing cocaine and marijuana out of a Park Square apartment -- fired an AR-15 during his trafficking. Four days later, he was discovered carrying an AK-47 while engaged in drug trafficking. If convicted, Mr. Gonzalez faces up to life in federal prison. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Irving Police Department investigated the case.PLEA – Madison Brekke, 21
On Sept. 27, Madison Elizabeth Brekke of Coppell plead guilty to possession of a firearm by an unlawful user of a controlled substance. An admitted addict, Ms. Brekke confirms that in early August, she was using heroin, a Schedule I controlled substance. At that time, she admitted, she possessed a Sig Sauer SP2022 handgun. She now faces up to 10 years in federal prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Coppell Police Department investigated.PLEA – Kenntorro Armstrong, 24
On Sept. 27, Kenntorro Armstrong of Fort Worth pleaded guilty to delay or destruction of mail. Armstrong admits that while a postal employee, he detained a first-class envelope addressed to a customer in Fort Worth. He now faces up to 5 years in prison and a fine of up to $250,000. The USPS - Office of Inspector General investigated.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
United States Attorney Announces Appointment of Five New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox today announced the appointment of five new Assistant United States Attorneys: Stephen Rancourt, assigned to the Lubbock Criminal Division; Melanie Smith, assigned to the Dallas Criminal Division’s Violent and Major Crimes Section; Damien Diggs, also assigned to the Dallas Criminal Division’s Violent Crimes Section; Braden Civins, assigned to the Dallas Civil Division; and Abe McGlothin, assigned to the Dallas Criminal Division’s Violent and Major Crimes Section.
All five prosecutors were sworn in Monday morning before Chief U.S. District Judge Barbara M.G. Lynn.
A two-time graduate of the University of Richmond, Mr. Rancourt joins Nealy Cox’s prosecutorial team from the District Attorney’s Office in Wichita County, where he spent six years as an Assistant District Attorney, rising to become First Assistant ADA.
Ms. Smith, an alumnus of Gonzaga University and the University of Virginia School of Law, is happy to be returning to the same district where she clerked for former U.S. District Judge Jorge A. Solis six years ago. In the intervening years, she served in the Department of Justice’s Tax Division in Washington, DC.
Mr. Diggs joins the Northern District of Texas from the U.S. Attorney’s Office in DC, where he prosecuted homicides and other criminal cases; before that, he worked for the U.S. Department of Education’s Office for Civil Rights. Mr. Diggs earned his undergraduate degree from Towson University and his law degree from American University’s Washington College of Law.
An alumnus of Emory University and the University of Texas School of Law, Mr. Civins previously served as Assistant Attorney General at the Texas Attorney General’s Office’s Civil Medicaid Fraud Division, where he handled complex civil litigation under the Texas Medicaid Fraud Prevention Act.
Mr. McGlothin joins Northern District from the U.S. Attorney’s Office the Southern District of Mississippi, where he prosecuted a wide range of violent crimes and served as the Project Safe Neighborhood Coordinator. He earned his degrees at Jackson State University and the University of Mississippi School of Law.
“I am thrilled to welcome these five exceptional attorneys to the Northern District of Texas today,” said Nealy Cox. “I’m confident they will bring honor to the important work this office does day in and day out.”
USAO NDTX Weekly Roundup -- 9/20/18Read the Press Release
PLEA – Joe Frank Rodriguez, Jr., 46
On Sept. 17, Joe Frank Rodriguez, Jr. of Plainview, Texas, pleaded guilty to embezzlement by a bank employee. Rodriguez admits to embezzling $143,000 from a Texas bank insured by the Federal Deposit Insurance Corporation (FDIC). He now faces up to 30 years in prison and a fine of $1,000,000. The FBI conducted the investigation.SENTENCING – Jose Bryan Gonzalez, 19
On Sept. 18, Jose Bryan Gonzalez of Dallas, Texas, was sentenced to 2 ½ years in federal prison for his role in illegal firearms smuggling. In May, Gonzalez pleaded guilty to one count of possessing a firearm while under felony indictment following an investigation by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) that revealed Gonzalez had bought, through an unindicted coconspirator, over 40 firearms, which the government believes were destined for Mexico.SENTENCING – Chase Matheny, 35
On Sept. 18, Chase Matheny of Fort Worth, Texas was sentenced to 2 ½ years in federal prison for possession of stolen mail. In May, Matheny pled guilty to one count of possession of stolen mail after a Bedford Police officer discovered him with a backpack containing various stolen letters.PLEA – Serafin Sanchez Ruiz, 29
On Sept. 19, Serafin Sanchez Ruiz of Desoto, TX -- a former CareNow nurse -- pleaded guilty to online enticement of a minor. Ruiz admits to luring a 14-year-old girl, via the Whisper app, to sneak out of her house during the night and engage in sexual intercourse with him in March 2017. He now faces a minimum of ten years to life in prison and a $250,000 fine. This case was brought as part of the U.S. Attorney’s Project Safe Childhood initiative, which seeks to combat the growing epidemic of child sexual exploitation on the Internet. United States Secret Service and the Arlington Police Department investigated.PLEA – Jeremey Brown, 38
On Sept. 18, Jeremey Brown of Dunacan, Oklahoma pleaded guilty to breaking out of federal prison. Brown, who was serving time in the Big Spring Federal Correctional Institution for a firearms offense, was spotted jumping into a maroon Nissan Altima near Big Spring on May 19. The U.S. Marshals Service and the Big Spring FCI Special Investigative Services conducted the investigation. Brown’s getaway driver also pleaded guilty to concealing a person from arrest. Release here.PLEA – Christopher Shane Eudy, 41
On Sept. 19, Christopher Shane Eudy – who is currently serving time in state prison for fraudulent use of identification information -- pleaded guilty to use of an unauthorized access device. Eudy admits that in February 2017, he falsified his identity and visited a Aledo, TX store to pick up a $2,000 generator ordered with a stolen credit card number. A group later sold the equipment, and Eudy pocketed a portion of the proceeds. He now faces up to 10 years in federal prison. The Secret Service conducted the investigation.INDICTMENT -- Mohamed Toure, 57 & Denise Cros-Toure, 57
On Sept. 19, a federal grand jury indicted a Texas couple on forced labor and alien harboring charges. The Toure’s allegedly arranged for a child to travel alone from her village in Guinea, West Africa to Southlake, Texas to work for them in their home. For more than 16 years, they demanded she handle childcare, cook, and clean, all with no pay, while isolating her from friends and family. The case is being investigated by the Department of State, Diplomatic Security Services’ Houston Field Office. Release here.PLEA – William Brian Smith, 44
On Sept. 19, 2018, William Brian Smith of Saginaw, TX pleaded guilty to receipt on child pornography charges. Smith admitted to receiving videos of a child engaged in sexually explicit conduct, which were found after his employer discovered images on Smith’s work computer and contacted the police. He now faces up to 240 months in prison and a fine of up to $250,000. Saginaw Police Department and HSI conducted the investigation.PLEA – Joey Lynn Tedford, 53
On Sept. 19, Joey Lynn Tedford of Snyder, TX pleaded guilty to being a felon in possession of a firearm. Tedford admitted to possessing one rifle and one handgun. He now faces up to 10 years in prison and a fine of up to $250,000. As part of the plea, Tedford also agreed to forfeit the firearms to the United States. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation.SENTENCING – Jeffrey Sila
A Kenyan man was sentenced today to more than 7 years behind bars for theft of public funds and aggravated identity theft. Jeffrey Sila, a citizen of Nairobi, allegedly obtained a $76,500 tax return check payable to another individual, then unwittingly sold it to an IRS undercover agent in exchange for $48,000. He was arrested at LAX as he attempted to board a flight for Nairobi, and convicted following a three-day trial in Dallas in September 2017.Texas Couple Indicted on Forced Labor ChargesRead the Press Release
WASHINGTON – Defendants Mohamed Toure, 57, and Denise Cros-Toure, 57, of Ft. Worth, Texas, were charged today in a five-count indictment with forced labor, alien harboring for financial gain, and conspiracies to commit forced labor and alien harboring, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. Mohamed Toure was also charged with making false statements to federal agents.
The defendants were arrested on April 26, 2018, after being charged by criminal complaint.
According to the indictment, in January 2000, the defendants arranged for the victim, then a minor child, to travel alone from her village in Guinea, West Africa, to Southlake, Texas, to work for them in their home. For more than 16 years, the Toures allegedly forced her to work long hours – demanding she handle childcare, cook, clean, and perform yardwork. Although the victim was close in age to their five biological children, the couple denied her access to schooling, medical care, and other opportunities they afforded their own children, and on several occasions Denise Cros-Toure slapped or struck her as punishment. Until neighbors helped the victim escape in August 2016, the defendants allegedly denied her any pay, isolated her from her family and threatened serious harm if she refused to work.
As part of their scheme to compel the victim’s labor, the defendants confiscated her official documents and caused her to remain unlawfully in the United States after her tourist visa expired in March 2000. They threatened to send her back to Guinea if her work was unsatisfactory.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. If convicted of forced labor, the defendants face a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution. If convicted of alien harboring, the defendants face a maximum sentence of 10 years in prison and a $250,000 fine.
The case is being investigated by the Department of State, Diplomatic Security Services’ Houston Field Office. It is being prosecuted by Trial Attorneys Rebekah Bailey and William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Chris Wolfe for the Northern District of Texas.
Oklahoma Man Pleads Guilty After Escaping Federal PrisonRead the Press Release
A Duncan, Oklahoma man pleaded guilty today to breaking out of federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jeremy Brown, 38, who was serving time in the Big Spring Federal Correctional Institution (FCI) for a firearms offense, admits he escaped from federal custody on May 19, 2018.
According to documents filed in the case, the sister of a Big Spring FCI employee spotted Brown running across the street and jumping into a maroon Nissan Altima around 5 p.m. Suspecting she’d witnessed an escape, she snapped a photo as the car sped away, then contacted Big Spring FCI.
Officials initiated an emergency headcount and realized Brown was missing. Two days later, after a warrant had been issued for his arrest, Brown surrendered to Big Spring FCI, and was placed in the Special Housing Unit (SHU).
The driver of the getaway car, Tiffany Stone, 38, pleaded guilty to concealing a person from arrest.
The United States Marshals Service and the Big Spring Federal Correctional Institution Special Investigative Services conducted the investigation, and Assistant U.S. Attorney Jeff Haag prosecuted the case.
USAO NDTX Weekly Roundup - 9/13/18Read the Press Release
SENTENCING – Nemelee Jiao, 48
On September 6, Nemelee Jiao of Irving, TX was sentenced to more than 8 years in federal prison for her role in operating a $3.4 million Ponzi-scheme investment fraud. In December 2017, Jiao pleaded guilty to one count of wire fraud after FBI agents identified 41 victims who invested in fake securities related to two schools in the Philippines.SENTENCING – Mark Stein, 38
On September 10, Mark Demetri Stein, the 38-year-old final defendant in a high-profile north Texas “foreclosure rescue” case was sentenced for his role in the scheme, which swindled nearly a quarter of a million dollars from at least 70 homeowners facing foreclosure. Stein, of Carrollton, Texas – who pleaded guilty in April to one count of mail fraud – was sentenced to 6 years in prison and ordered to pay $215,138 in restitution to homeowner victims. Release here.SENTENCING -- Sergio Gonzalez, 34
On September 10, Sergio Guadalupe Gonzalez was sentenced to more than 3 years in federal prison for his role in a cocaine distribution conspiracy. In March, Gonzalez pleaded guilty to conspiracy to possess with intent to distribute cocaine, after the FBI initiated an investigation into several DFW subjects’ importation and distribution of cocaine and methamphetamine.SENTENCING – Shetoia Mitchell, 31
On September 10, Shetoia Mitchell was sentenced to nearly 3 years in federal prison for her role in an attempted bank robbery. In February, Mitchell pled guilty to an attempt to commit a bank robbery on July 11, 2017, but was believed to have actually committed four prior robberies in the summer of 2017, in which she wore a purple burka-style covering and red running shoes. The FBI and the Dallas Police Department investigated.INDICTMENT* – Richard Lein, 35 & Marcus Pierson, 47
On September 11, a federal grand jury indicted Richard Lein and Marcus Pierson on drug trafficking charges stemming from DEA’s seizure of almost three kilos of methamphetamine. If convicted, Lein faces up to 20 years imprisonment, while Pierson faces a minimum of 10 years and up to life for the drug charges and a minimum of 5 years and up to life for possessing a firearm in furtherance of a drug trafficking crime.INDICTMENT* – Richard Blankenship, 32
On September 11, a federal grand jury indicted Richard Blankenship of Lewisville on felon in possession of a firearm and drug trafficking charges. A formerly convicted felon, Blankenship allegedly possessed more than 50 grams of methamphetamine, baggies and a scale, along with a .45 caliber pistol. If convicted, he faces 10 years to life in federal prison. The Drug Enforcement Agency-High Intensity Drug Trafficking Areas (“HIDTA”) investigated the case.INDICTMENT* – Chelsea Williams
On September 11, a federal grand jury indicted Chelsea Shanae Williams of Dallas for possession of cocaine with the intent to distribute. If convicted, Williams faces up to almost 6 years in federal prison. The ATF and Dallas Police Department investigated.INDICTMENT* -- Zachery Leatch, 24 & Tara Jones, 37
On September 11, a federal grand jury indicted Leatch and Jones, of Dallas, for possession of a firearm by a prohibited person and possession of a firearm in a school zone. The defendants, both convicted of prior felonies, allegedly brought a .40 caliber pistol into the gym of the Thompson Elementary School in Mesquite during a youth basketball game. If convicted, they face up to 120 months in federal prison. Mesquite PD and ATF investigated the case.SENTENCING – Israel De la Cruz Sotelo, 42
On September 13, Israel De la Cruz Sotelo, also known as “Rale,” was sentenced to 12 ½ years in prison for his role in a methamphetamine and marijuana conspiracy. After being extradited from Mexico, De la Cruz Soleto pled guilty in November and December to federal charges. De la Cruz Sotelo’s case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCDETF). The DEA, Dallas Police Department, and Garland Police investigated; U.S. Marshals, CBP, ICE, and Homeland Security Investigations (HIS) assisted.INDICTMENT* -- Demoushae & Tashonna Marsh
On Sept. 14, the straw purchasers of a gun used to murder an innocent man appeared in federal court, charged with making false statements during the acquisition of a firearm. Sisters Demoushae and Tashonna Marsh allegedly purchased two 9-millimeter Glock pistols from Academy Sports + Outdoors, each claiming on her application she was the “actual buyer” of the firearm, while knowing the guns were intended for someone else. Release here.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Feds Charge Straw Purchasers in PSN Neighborhood: Gun Used in HomicideRead the Press Release
DALLAS – The straw purchasers of a gun used to murder an innocent man appeared in federal court today, charged with making false statements during the acquisition of a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
According to the Indictment, unsealed following the defendants’ arrest yesterday, sisters Demoushae and Tashonna Marsh purchased two 9-millimeter Glock pistols from Academy Sports + Outdoors, a federally-licensed firearm dealer, on April 16. On their applications, each woman claimed she was the “actual buyer” of the firearm – while allegedly knowing the guns were intended for someone else.
One of the pistols ended up in the hands of a teenage boy.
On April 18 -- just two days after the straw purchase – the juvenile and a co-conspirator attempted to rob a man in the driveway of his Dallas home. Upon hearing the struggle, the victim’s brother, Leonardo Vazquez-Barcenas, came outside to investigate. The juvenile, still struggling with the homeowner, fired a single shot, killing Mr. Vazquez-Barcenas.
“Federal firearm restrictions are designed to keep deadly weapons from being used in street crimes like these,” said Nealy Cox. “This case should send a message to would-be straw purchasers across north Texas: We will bring to justice anyone who attempts to circumvent gun laws in our district.”
The Dallas County District Attorney’s Office is handling the homicide case. The straw purchasing case was brought as part of the U.S. Attorney’s “Project Safe Neighborhood” initiative, a strategic effort targeting violent offenders in Dallas’ most dangerous neighborhoods. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation with assistance from the Dallas Police Department; Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Final Defendant Sentenced in 'Foreclosure Rescue' SchemeRead the Press Release
DALLAS -- The final defendant in a high-profile north Texas “foreclosure rescue” case has been sentenced for his role in the scheme, which swindled nearly a quarter of a million dollars from at least 70 homeowners facing foreclosure, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Real Estate Solutions owner Mark Demetri Stein, 38, of Carrollton, Texas – who pleaded guilty in April to one count of mail fraud – was sentenced to six years in prison and ordered to pay $215,138 in restitution to homeowner victims.
According to documents filed in the case, from Feb. 2012 to Jan. 2013, Stein and three co-conspirators used third parties to contact vulnerable homeowners, offering them an opportunity to get out of their present home loans and receive new, cheaper loans with lower interest and reduced monthly payments.
They lied to desperate homeowners, telling them “investors” were standing by, ready to purchase homeowners’ loans from their original lenders at a greatly reduced price through a “short sale” process, and suggesting homeowners had the legal authority to transfer their deeds to a foreclosure rescue company. Then, although they knew they would not legally own the property, Stein and his co-defendants assured homeowners a foreclosure rescue company could “sell” the property back to the homeowner with a new loan.
There were no investors. The defendants simply pocketed funds collected from these defrauded homeowners.
They issued fraudulent new “loans” requiring hefty down payments, demanded the homeowners sign fraudulent documents, and directed homeowners to start making all future loan payments to them.
As they continued to collect these so-called “mortgage payments,” they instructed homeowners to ignore notices of late- and non-payment from other lenders. In order to further conceal their criminal conduct, they even advised several homeowners file bankruptcy in order to forestall foreclosure.
The three other defendants, Christina Renee Caveny, 37, Richard Bruce Stevens, 53, and Bruce Kevin Hawkins, 54, also pleaded guilty and were sentenced for felony offenses stemming from the scheme. (Caveny was sentenced to 15 months in prison in November 2017. The following month, Hawkins was sentenced to 41 months. Late last month, Stevens was sentenced to 41 months.)
The case was brought as part of the Northern District of Texas’ Bankruptcy Fraud Initiative. Since May 2013, the initiative has prompted a significant increase in the number of felony prosecutions of bankruptcy-related crimes in north Texas. A total of 27 defendants – each prosecuted due to criminal referrals from the United States Trustee’s Office – have been charged and convicted.
The Federal Bureau of Investigation’s Dallas Division conducted the investigation, and Assistant U.S. Attorney David Jarvis prosecuted the case.
Fifteen Violent Jewelry Robbers Have Been Arrested for 11 Robberies and Attempted Robberies Targeting Traveling Jewelry Salesmen in Five StatesRead the Press Release
Fifteen defendants who were wanted by the FBI for their suspected involvement in a series of violent robberies against traveling jewelry salesmen across the United States, have been arrested, the last of whom on Sept. 2, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI Dallas Field Office.
An indictment and three superseding indictments, issued in Feb. 18, 2016; Jan. 24, 2017; Nov. 21, 2017; and Jan. 23, 2018, respectively, charge the 15 defendants, all Colombian nationals, with the following offenses relating to the 11 robberies/attempted robberies:
Jonathan David Malpica, 33
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Tito Andres Vargas Urbina, 31
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Roger Zamora, aka Jaime Alba Juarez, 40
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Camila Andrea Espitia, 23
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Mohammed Natour, 32
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Omar Gonzalez, 38
RICO conspiracy, conspiracy to interfere with commerce by robbery
Fabrizia Cavanna Sarmiento, aka Fabrizia Cavanna, 41
RICO conspiracy, conspiracy to interfere with commerce by robbery
Andres Felipe Henao, 32
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Brayan David Vargas Londono, aka Brayan Vargas, Brayan David Vargas Gonzalez, Mario Steven Cuellar, Joshua Steven
Cavarez, Blanco Elizanoro Recioachach, 25
Conspiracy to interfere with commerce by robbery
Rodolfo Vargas Londono, aka Christian Vargas, 30
Conspiracy to interfere with commerce by robbery
Luis Garcia, 31
Conspiracy to interfere with commerce by robbery
Catherine Salas, 34
Conspiracy to interfere with commerce by robbery
Erika Gutierrez Machado, aka Angela Cuebas, 45
Conspiracy to interfere with commerce by robbery
James Jeanphier Tobar Ramon, aka Panda, Jonathan Tapia, Jhonatan Vasquez Toloza, 27
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Jesus Jean Pool Tovar, aka Yakusa, 24
Conspiracy to interfere with commerce by robbery
The indictments charge the defendants for their alleged involvement in 11 robberies/attempted robberies in five states, from 2014 through 2016:
Date (on or about)
Robbery Location
Sept. 26, 2014
Oklahoma City, Oklahoma
Jan. 30, 2015
Dallas, Texas
March 31, 2015
Miami Beach, Florida
July 8, 2015
Houston, Texas
Sept. 3, 2015
Dallas, Texas
Oct. 26, 2015
Houston, Texas
Nov. 10, 2015
Hollywood, Florida
Nov. 15, 2015
Indianapolis, Indiana
Dec. 6, 2015
Vienna, Virginia
Jan. 21, 2016
Farmers Branch, Texas
Jan. 27, 2016
Dallas, Texas
The series of indictments charged that the members and associates of the robbery enterprise allegedly operated in the following ways:
- Members of the enterprise and their associates allegedly obtained rental vehicles, airline tickets, hotel rooms, and other short-term housing, and opened bank accounts and obtained bank cards and credit cards using fraudulent identification documents to facilitate the robberies and surveillance operations;
- Members of the enterprise and their associates allegedly conducted surveillance on diamond and jewelry stores and traveling diamond and jewelry salesmen in order to identify prospective robbery victims, using teams of individuals to watch the stores from their vehicles and on foot;
- Members of the enterprise and their associates allegedly blocked-in the vehicles of traveling diamond and jewelry salesmen and often disabled the vehicles by, among other means, flattening the vehicles’ tires and breaking the vehicles’ windows;
- Members of the enterprise and their associates allegedly used violence, threats of violence, and weapons, including BB guns, knives, blades, and center punches; and
- Members of the enterprise and their associates allegedly sold the stolen diamonds, jewels, jewelry, and other goods to individuals who buy and sell stolen goods (“fences”), including an individual who traveled from Colombia to the United States to purchase the stolen goods, and then split the proceeds of their unlawful activities.
Further investigative efforts led to the location and arrest of all 15 defendants, the most recent of which took place on Sept. 2, when Tobar was arrested in Miami, Florida, by the Miami Beach Police Department Robberies Unit, in coordination with the FBI.
Rodolfo Vargas Londono, Cavanna, and Brayan David Vargas Londono, were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on Oct. 27, 2017, Dec. 24, 2017, and Feb. 12, 2018, respectively.
The other 11 defendants were arrested in the United States from 2016 through 2017.
“The defendants allegedly embarked on a multi-state spree of violent robberies, putting the lives of their victims and other innocent civilians at risk,” said Assistant Attorney General Benczkowski. “Thanks to the dedication and cooperative efforts of prosecutors in the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office in the Northern District of Texas, along with our partners with the FBI Dallas Violent Crimes Task Force, all 15 defendants indicted for this interstate armed robbery conspiracy have been apprehended and now must face justice. I especially thank our Colombian law enforcement partners for their hard work in securing the arrest of three fugitives in this important case.”
“These individuals painstakingly surveilled, menaced, and violently robbed salespeople in the Northern District of Texas and elsewhere,” said U.S. Attorney Nealy Cox. “My office is committed to rooting out these kinds of criminal conspiracies. I thank our law enforcement partners – both here in the United States and in Colombia – for helping us bring these defendants to justice.”
“The investigation and indictments of this violent and dangerous foreign criminal enterprise by the personnel of the Dallas FBI Office, our law enforcement partners, and prosecutors hopefully have sent a clear message,” said FBI Special Agent in Charge Jackson. “We have no tolerance for those who would violate the sovereignty of the United States to further their criminal goals and we will bring you to justice no matter where in the world you are located.”
To date, nine defendants in total pleaded guilty to charges relating to the robberies:
- Gonzalez pleaded guilty to RICO conspiracy on July 27, 2017. Gonzalez was sentenced to 66 months in prison on Feb. 20.
- Urbina pleaded guilty to RICO conspiracy on Aug. 29, 2017, and is awaiting sentencing.
- Malpica pleaded guilty to RICO conspiracy on Sept. 5, 2017, and is awaiting sentencing.
- Machado pleaded guilty to conspiracy to interfere with commerce by robbery on Sept. 5, 2017. Machado was sentenced to 40 months in prison on Jan. 22.
- Salas pleaded guilty to conspiracy to interfere with commerce by robbery on Oct. 31, 2017, and is awaiting sentencing.
- Henao pleaded guilty to conspiracy to interfere with commerce by robbery on Jan. 9, and is awaiting sentencing.
- Natour pleaded guilty to RICO conspiracy on March 13, and is awaiting sentencing.
- Zamora pleaded guilty to RICO conspiracy on March 20, and is awaiting sentencing.
- Garcia pleaded guilty to conspiracy to interfere with commerce by robbery on March 27, and is awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Dallas Violent Crimes Task Force investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. The Justice Department’s Office of International Affairs provided significant assistance in the extradition matters. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith Robinson of the Northern District of Texas, are prosecuting the case.
Grand Jury Indicts Five MS-13 Members for Violent RobberyRead the Press Release
DALLAS - Five members of MS-13, a violent criminal gang, are in custody today after being indicted by a federal grand jury, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“MS-13 is one of the most ruthless gangs on the streets,” said U.S. Attorney Nealy Cox. “This case – along with the eight MS-13 gang members we indicted earlier this summer -- underscores our commitment to dismantle this organization in and throughout our District and keep gangs from terrorizing our citizens.”
Carlos Enreique Mejia Caceres, aka “Machete,” Francisco Javier Argueta Montes, aka “Rostro,” Juan Carlos Andrade Rivas, Luis Santiago Marrego, aka “Shorty,” and Luis Fernando Salazar Angeles were charged with conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence.
On May 16, 2018, prosecutors say, Montes, Rivas, and Marrego disguised their identities and entered Plaza Ferrache Western Wear in Dallas, where they brandished a firearm and took money from an employee. They fled the scene with Angeles as the getaway driver, and divided the money between themselves, Angeles, and Caceres, who masterminded the scheme.
Each faces a maximum life sentence.
The Federal Bureau of Investigation conducted the investigation, and Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
In July, a federal grand jury in the Northern District of Texas indicted eight MS-13 members on charges in connection with their gang activities, including attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and possession of a firearm during a crime of violence. And just today, more than 20 individuals associated with MS-13 were arrested in California for assault and drug trafficking.
Dallas Man Indicted for Defrauding Low-Income Children’s Nutrition ProgramRead the Press Release
A federal grand jury this week indicted a Dallas man for defrauding the Summer Food Service Program, a U.S. Department of Agriculture initiative that provides free meals to children in low-income areas when school is not in session.
From June 2011 to October 2014, 42-year-old Michael Anthony Munson, founder of the Heloise Munson Foundation, allegedly submitted reimbursement claims for more than 1.4 million meals he never served, and received $2.5 million in undeserved compensation.
According to prosecutors, Munson paid another individual roughly $75,000 to fabricate invoices for milk, juice, and food from a fictitious company, “Janus Wholesale Food, Inc.” and to camouflage the scheme.
When Munson was notified authorities were reviewing his reimbursement claims, he notified the individual, who created the domain januswholesalefoods.com, opened a bank account in Janus’ name using a fake IRS Employer Identification Number, and fabricated affidavits from non-existent Janus employees claiming to do business with Munson, which were later submitted to government authorities.
Munson, who surrendered to the FBI Thursday, has been charged with five counts of summer food service program fraud, and faces up to 25 years in prison, along with a $50,000 fine plus restitution.
“Low-income families across our District count on the Summer Food Service Program to provide their children with nutritious meals, ” U.S. Attorney Nealy Cox said. “Anyone who takes advantage of a system designed to serve those already struggling will be prosecuted and brought to justice.”
The U.S. Department of Agriculture - Office of Inspector General and Federal Bureau of Investigation conducted the investigation, and Assistant U.S. Attorney Douglas Brasher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
United States Attorney Announces the Appointment of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox today announced the appointment of three new Assistant United States Attorneys: Ryan Raybould, assigned to the Dallas Criminal Division; Sarah Delaney, assigned to the Dallas Civil Division; and Robert Boudreau, assigned to the Fort Worth Criminal Division.
All three prosecutors were sworn in Monday morning before Chief U.S. District Judge Barbara M.G. Lynn.
A graduate of Yale University and Notre Dame Law School, Mr. Raybould today returns to the same district where he clerked for U.S. District Judge Reed O’Connor five years ago. In the intervening years, he served as an Assistant U.S. Attorney in the Middle District of Tennessee, where he prosecuted white collar crime cases, and before that as a prosecutor in the Justice Department’s Criminal Enforcement Section – Tax Division. Before beginning his legal career, Mr. Raybould spent four years as a professional soccer player, and was drafted by the Kansas City Wizards in 2005.
Ms. Delaney, who earned degrees from Georgetown University and the University of Virginia School of Law, joins the Northern District of Texas from the litigation section of Snell & Wilmer in Phoenix, Arizona. There, she handled a wide range of matters, from regulatory affairs and international trade to product liability and healthcare matters.
Mr. Boudreau joins the Northern District of Texas from the Justice Department’s Criminal Enforcement Section – Tax Division in Washington, DC, where he investigated and prosecuted crimes including tax evasion, investment fraud, identity theft, healthcare fraud, and public corruption. A graduate of the University at Albany and Boston University School of Law, he also served as a judge advocate in the U.S. Marine Corps, where he represented a Marine court-martialed for a high-profile war crime.
“We’re thrilled to welcome these three AUSAs to our hard-hitting teams in Fort Worth and Dallas,” said Nealy Cox. “I’m confident they will serve the cause of justice with honor.”
Reliant to Pay $6.1 Million to Settle False Claims Act Allegations That it Paid Kickbacks to Nursing Homes for Rehabilitation Therapy BusinessRead the Press Release
Reliant Rehabilitation Holdings Inc. (Reliant), a national provider of rehabilitation therapy and related services headquartered in Plano, Texas, has agreed to pay the United States $6.1 million to resolve allegations that it violated the False Claims Act (FCA), 31 U.S.C. §3729, et seq., by paying kickbacks to skilled nursing facilities and physicians in connection with care provided to Medicare beneficiaries as a way of improperly promoting Reliant’s rehabilitation therapy business, the Justice Department announced today.
The United States alleged that between April 1, 2013, and May 1, 2017, Reliant knowingly offered improper inducements, in the form of Reliant-employed nurse practitioners who worked at client nursing homes without charge or for a nominal, below fair market fee in order to induce or reward nursing homes for contracting with Reliant to provide rehabilitation therapy for their residents. The settlement between the United States and Reliant resolves this claim, as well as a separate allegation that Reliant violated the FCA by causing the submission of claims to Medicare that were tainted by improper contracts between Reliant and physicians working at skilled nursing facilities that offered the physicians above fair market compensation for supervising and collaborating with Reliant nurse practitioners in exchange for the facilities’ therapy business.
“The Justice Department is committed to investigating and routing out any improper financial relationships between health care providers that have the potential to undermine patient care and trust.” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “This settlement demonstrates our commitment to protecting the integrity of the Medicare program.”
“Companies that work to secure patient referrals by providing kickbacks inject improper financial considerations into our healthcare system,” said United States Attorney Erin Nealy Cox for the Northern District of Texas. “Today’s settlement demonstrates our determination to thwart such improper inducements — whether they take the form of cash payments or free services.”
“Paying illegal remuneration to nursing homes and doctors to increase the bottom line – as contended by the government in this case – is unacceptable as it too often sacrifices the best interests of patients to profit-making schemes,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Patients and taxpayers deserve better.”
The allegations resolved by the settlement agreement were originally brought by Dr. Thomas Prose under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. Dr. Prose will receive approximately $915,000 of the settlement proceeds.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Northern District of Texas. Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Prose v. Reliant Rehabilitation, Civil Action No. 3:16-CV-0707-D (N.D. Tex.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Reliant to Pay $6.1 Million to Settle False Claims Act Allegations That It Paid Kickbacks to Nursing Homes for Rehabilitation Therapy BusinessRead the Press Release
WASHINGTON – Reliant Rehabilitation Holdings Inc. (Reliant), a national provider of rehabilitation therapy and related services headquartered in Plano, Texas, has agreed to pay the United States $6.1 million to resolve allegations that it violated the False Claims Act (FCA), 31 U.S.C. §3729, et seq., by paying kickbacks to skilled nursing facilities and physicians in connection with care provided to Medicare beneficiaries as a way of improperly promoting Reliant’s rehabilitation therapy business, the Justice Department announced today.
The United States alleged that between April 1, 2013, and May 1, 2017, Reliant knowingly offered improper inducements, in the form of Reliant-employed nurse practitioners who worked at client nursing homes without charge or for a nominal, below fair market fee in order to induce or reward nursing homes for contracting with Reliant to provide rehabilitation therapy for their residents. The settlement between the United States and Reliant resolves this claim, as well as a separate allegation that Reliant violated the FCA by causing the submission of claims to Medicare that were tainted by improper contracts between Reliant and physicians working at skilled nursing facilities that offered the physicians above fair market compensation for supervising and collaborating with Reliant nurse practitioners in exchange for the facilities’ therapy business.
“The Justice Department is committed to investigating and routing out any improper financial relationships between health care providers that have the potential to undermine patient care and trust.” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “This settlement demonstrates our commitment to protecting the integrity of the Medicare program.”
“Companies that work to secure patient referrals by providing kickbacks inject improper financial considerations into our healthcare system,” said United States Attorney Erin Nealy Cox for the Northern District of Texas. “Today’s settlement demonstrates our determination to thwart such improper inducements — whether they take the form of cash payments or free services.”
“Paying illegal remuneration to nursing homes and doctors to increase the bottom line – as contended by the government in this case – is unacceptable as it too often sacrifices the best interests of patients to profit-making schemes,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Patients and taxpayers deserve better.”
The allegations resolved by the settlement agreement were originally brought by Dr. Thomas Prose under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. Dr. Prose will receive approximately $915,000 of the settlement proceeds.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Northern District of Texas. Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Prose v. Reliant Rehabilitation, Civil Action No. 3:16-CV-0707-D (N.D. Tex.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Man for Robbing Bank One Day After He Was Released from Prison for Similar CrimeRead the Press Release
DALLAS — A federal jury today convicted a 47-year-old man of a bank robbery he committed just one day after being released from custody for a similar bank robbery, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
During trial, the jury heard evidence that Derrick Adrian Johnson, disguised in a painter’s suit from a nearby construction site, covered his face with a towel and robbed a Wells Fargo bank in Dallas, Texas, on July 9, 2016.
The day before, Johnson had been released from federal custody for a 2008 bank robbery conviction, which also involved Johnson covering his face with a towel and attempting to rob a Wells Fargo bank.
Johnson faces a maximum penalty of 20 years’ imprisonment for this bank robbery. He also faces an additional term of imprisonment for committing this offense while on supervised release for the 2008 bank robbery conviction.
U.S. District Judge David C. Godbey presided over the trial and will set sentencing at a later date. The FBI and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Jamie L. Hoxie is prosecuting the case.
Man Found Guilty of Bank Robberies Despite Insanity PleaRead the Press Release
DALLAS, Texas — Darius Whetstone was found guilty of committing three armed bank robberies in June 2016. The decision came in a written opinion issued one week after a two-day bench trial before Chief U.S. District Judge Barbara M.G. Lynn. Whetstone had agreed that he robbed the three banks, but asked the court to find him innocent by reason of insanity because he was unable to appreciate the wrongfulness of his actions at the time. The court found that, though Whetstone had proved that he suffered from a severe mental disease or defect when he committed the robberies, he failed to show that he was unable to appreciate the wrongfulness of his acts.
According to the court’s findings and evidence presented at trial, Whetstone entered a Capital One bank branch in Dallas on June 2, 2016, brandished a knife, and forced employees to turn over cash from one of the tellers. Whetstone used the money from the first robbery to purchase a variety of goods, including two duffel bags and a car that, on June 7, 2016, he used to rob two more Dallas banks in the same manner as the first. The second bank Whetstone robbed was a Bank or America branch. The third was a BB&T branch.
In its written decision, the court indicated that “at the time of each offense, Whetstone established by clear and convincing evidence that he suffered from a severe mental disease or defect.” But the court also found that Whetstone “did not prove by clear and convincing evidence that he was unable to appreciate that his acts were wrong when he committed each offense,” and specifically that “at the time he committed each robbery, Whetstone knew it was against the law to rob a bank and that bank robbery was wrong.” Therefore, the court concluded, “Whetstone was not insane under 18 U.S.C. § 17 when he committed the bank robberies.”
Whetstone’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case.
The Feberal Bureau of Investigation investigated. Assistant U.S. Attorneys Nicholas Bunch and Russell Fusco are prosecuting the case.
Dallas City Council Member and President of Force Multiplier Solutions Plead Guilty to Multi-Million Dollar Bribery ConspiracyRead the Press Release
DALLAS — Dallas City Council Member and Mayor Pro Tem Dwaine Caraway, of Dallas, Texas, and Robert C. Leonard Jr., of New Orleans, Louisiana, appeared in federal court today before Chief U.S. District Judge Barbara M.G. Lynn and pleaded guilty to federal conspiracy charges, announced Erin Nealy Cox, U.S. Attorney of the Northern District of Texas. Council Member Caraway pleaded guilty to one count of conspiracy to commit honest services wire fraud and one count of tax evasion. Robert Leonard pleaded guilty to one count of conspiracy to commit honest services wire fraud.
The law enforcement operation was led by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation (IRS-CI).
“The pleas today represent the meticulous and tireless efforts of the Federal Bureau of Investigation, the Internal Revenue Service, and the dedicated prosecutors of our office,” stated U.S. Attorney Nealy Cox. “These cases demonstrate our continued resolve to uncover corruption at the highest levels--the citizens of Dallas deserve honest government.”
“Today's guilty pleas are the results of a sensitive and complex investigation conducted by FBI Dallas' Public Corruption Investigative Team with assistance from the Internal Revenue Service. The conspirators utilized their position of access and financial means to defraud the citizens of Dallas County,” said Eric K. Jackson, Special Agent-in-Charge of the Dallas Division. “The FBI will continue to aggressively investigate any public servant who abuses their official position and access to benefit themselves financially at the taxpayer’s expense. Additionally, those who seek to exploit public servants with financial or material support will be identified and held accountable for their actions.”
“IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption and tax fraud,” said Tamera Cantu, IRS Special Agent in Charge of the Dallas Field Office. “Merging the unique skills of each agency makes a formidable team as we investigate those who violate the public’s trust. Today’s actions underscore that the law applies to everyone, regardless of position or power.”
According to the Plea Agreements and Factual Resumes filed in the cases, Leonard paid and Caraway accepted more than $450,000 in bribe and kickback payments in the form of a phony consulting agreement, luxury suits, fully funded trips, gambling money, repayment of personal debt, checks and cash. Leonard also admitted to paying Rick Sorrells, former Dallas County Schools Superintendent, over $3 million in bribes and kickbacks payments in various forms, including $200,000 toward Sorrells’ credit card and student loan debt through a bank account opened in the name of a nonexistent entity.
In return for the bribe and kickback payments, Caraway promised favorable official actions to further Leonard’s business interests in Dallas. These actions included key votes to promote and continue the school bus stop-arm camera program -- which contracted with Leonard’s company, Force Multiplier Solutions -- and other actions taken to benefit Force Multiplier Solutions.
Both Defendants admitted to efforts undertaken to disguise and conceal the nature of the bribe and kickback payments. Leonard funneled a significant portion of the illicit payments through various pass-through companies created and operated by his business associate, Slater Washburn Swartwood, Sr., of Louisiana. Specifically, Swartwood, acting at Leonard’s direction, funneled and masked payments to Caraway and Sorrells as “consulting fees” or “loans” through his shell company ELF Investments. The co-conspirators originally characterized the payments to Sorrells as “consulting,” but later attempted to recast the payments as a loan. Sorrells provided no legitimate consulting services in exchange for the payments. There were payments made to Caraway in the form of checks that were cashed at pawnshops and liquor stores.
Caraway also admitted that in 2012 through 2014, he evaded and defeated the payment of substantial income tax due and owed to the IRS resulting in a tax loss of $68,906. Specifically, in 2014, Caraway failed to report for income tax purposes $97,000 of bribe and kickback payments he received from Leonard, under the auspice of “consulting fees.” Caraway also offset a portion of bribe and kickback payments he did report as income in prior years via phony business expenses.
The other co-conspirators, Swartwood and Sorrells, pleaded guilty earlier in the year. Swartwood pleaded guilty in February 2018 and Sorrells in April 2018 for their joint role in the conspiracy. Both are currently out on bond. Swartwood’s sentencing is scheduled for August, and Sorrells’ sentencing before U.S. District Judge David C. Godbey has not yet been scheduled.
U.S. Attorney Nealy Cox praised the efforts of the FBI, IRS-CI and the Department of Justice Tax Division. Assistant U.S. Attorneys Andrew Wirmani, Chad Meacham, Joe Magliolo, and Economic Crime & Public Corruption Section Chief Marcus Busch are prosecuting the case.
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United States Attorney Announces the Appointment of Two New Federal ProsecutorsRead the Press Release
DALLAS — United States Attorney Erin Nealy Cox announced today the appointment of Renee Hunter and Gregory Martin as Assistant United States Attorneys. Both were sworn in today before Chief Judge Barbara M. G. Lynn.
Ms. Hunter is assigned to the Economic Crimes & Public Corruption Section of the office’s Criminal Division, where she will focus on health care fraud cases. Most recently, Ms. Hunter worked as a litigation associate at the Dallas office of Thompson & Knight, focusing on white-collar criminal defense work with former U.S. Attorney Richard Roper. Before that, Ms. Hunter worked at Sidley Austin in Dallas. Ms. Hunter received her graduate degree from SMU Dedman School of Law, and received her undergraduate degree from Dallas Baptist University.
Mr. Martin is assigned to the Asset Recovery Unit within the office’s Criminal Division, where he will focus on our Financial Crimes Enforcement Network Initiative to build asset forfeiture cases from Bank Secrecy Act data. Most recently, Mr. Martin worked as a civil litigation associate at the San Diego office of Jones Day. Mr. Martin received his graduate degree from Northwestern University School of Law, and received his undergraduate degree from the University of Illinois.
“We are proud to welcome Renee Hunter and Gregory Martin as Assistant United States Attorneys in the Northern District of Texas.” said U.S. Attorney Nealy Cox. “I am confident that they will both make a significant impact in our community and work tirelessly on behalf of the citizens of the United States.”
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Fort Worth Man Sentenced to Life in Prison for His Role in Sex Trafficking of ChildrenRead the Press Release
FORT WORTH, Texas —Demarcus Davis, aka “Zigg,” 26, of Fort Worth, Texas, was sentenced Monday by U.S. District Judge Reed C. O’Connor to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a four-day trial in April 2018, Davis, and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Pierre Lagrone, “P” or “Pedro,” 34, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Lagrone and Sanders were previously sentenced by Judge O’Connor to life in federal prison and 420 months, respectively.
Earlier in the case, co-defendant Bruce Davis, aka, “Wheatie,” pled guilty to obstruction of enforcement. Davis threatened to harm Jane Doe 2, members of her family and her 1-year old child. Davis believed Jane Doe 2 was cooperating with law enforcement in the prosecutions of Demarcus and Kentrell Davis. Davis was sentenced in May 2018 by Judge O’Connor to 64 months in federal prison.
According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.
This case was investigated by the Homeland Security Investigations (HSI), U.S. Immigrations and Customs Enforcement’s (ICE), and the Fort Worth, Tyler and Arlington Police Departments. Assistant U.S. Attorneys P.J. Meitl and Nicole Dana were in charge of the prosecution.
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Three Sentenced for Their Role in $4.6 Million Bank Fraud SchemeRead the Press Release
DALLAS — Stephanie Contreraz, 27, Abraham Valdez, 53, both of Frisco, Texas, were sentenced last week before U.S. District Judge David C. Godbey,—to 46 months and 60 months, respectively, in federal prison. Co-defendant Elizabeth Flint, 27, of San Antonio, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 40 months in federal prison; based on their respective roles in a conspiracy to commit bank fraud, announced Erin Nealy Cox, U. S. Attorney of the Northern District of Texas.
Co-defendants, Eddie Contreraz, of Frisco, Texas, Ima Isham, of The Colony, Texas and Brice Armijo, of The Colony, Texas are scheduled for sentencing later this year. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the several factual resumes filed in the case, from January 2014 through March 2016, Eddie Contreraz hired co-defendants S. Contreraz, Valdez, Isham, Armijo, Flint and Anh to work at Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG employees assisted clients with credit repair and obtained funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.
In order to conceal these loan disqualifiers and fraudulently obtain funding, S. Contreraz, Valdez and Flint conspired with all the co-defendants charged in the indictment. According to the documents filed in the case, the seven co-defendants engaged in a wide range of fraudulent conduct when submitting loan applications. The co-defendants coached borrower clients to use false and inflated income and false employment information; personally escorted borrowers to several banks on the same day on so-called “bank tours”; and submitted fraudulent documents (false IRS Form W-2’s and false pay stubs) as part of loan packages presented to the victim banks.
At various times during the period from at least January 2014 through March 2016, all seven co-defendants victimized many banks through the submission of hundreds of fraudulent loan applications. To date, the victim banks suffered losses of at least $4.6 million. At the sentencing of Valdez and S. Contreraz, Judge Godbey ordered the payment of restitution in the amount of $4,659,693 and $2,210,446 respectively. At the sentencing of co-defendant Flint yesterday, Judge Godbey ordered her to pay $652,505 in restitution.
The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.
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Slaton High School Teacher Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Dustin Ray Leonard, 28, of Lubbock, Texas, appeared yesterday in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Leonard faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Leonard has been in custody since his arrest on May 22, 2018, and will remain in custody pending sentencing.
According to the factual resume filed in the case, on July 16, 2016, Leonard was hired by the Slaton Independent School District (SISD), as a high school teacher and Coach. On April 12, 2018, the Slaton High School (SHS) and SISD Chief of Police learned of a possible inappropriate relationship that occurred between Leonard and an 11th grade female student, “Jane Doe.” The SISD Superintendent received an audio recording that another student had made of Leonard. In the recording, Leonard was telling a female student about his marital problems. Leonard, after being confronted by SISD about the recording, provided SISD a written letter of resignation, citing personal and family concerns. On May 8, 2018, the SISD school board met and accepted the resignation effective May 18, 2018.
On May 21, 2018, Slaton Police Department (SPD) was provided information regarding Leonard’s Snapchat account and an inappropriate relationship he was having with Doe. Leonard was later interviewed and admitted that he and Doe had been in a sexual relationship since January 2018.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Slaton Police Department, Slaton Independent School District Police Department, the Texas Rangers, the Federal Bureau of Investigation, and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Olton Man Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Jimmy Kit Fields, 37, of Olton, Texas, appeared today in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Fields faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Fields has been in custody since his arrest on June 15, 2018, and will remain in custody pending sentencing.
According to the plea agreement factual resume filed in the case, in March 2018, Fields gave Jane Doe, a 13-year-old minor, a cell phone. Jane Doe’s father had suspected an inappropriate relationship between his 13-year-old daughter and Fields, and reported the incident to the Roosevelt County Sheriff’s Office (RCSO) in New Mexico. The RCSO conducted a search on the contents of the cell phone given to Doe by Fields, but were unable to find any evidence of a crime.
On May 30, 2018, the RCSO responded to a call to investigate a report that Doe was missing. Doe’s parents believed their daughter may be trying to meet with Fields, and believed she had been communicating with him on her laptop computer. Doe later returned to the residence and provided the RCSO the password to her Facebook account.
A review of Doe’s Facebook account by the RCSO revealed Fields had numerous sexually explicit conversations with Doe since May 29, 2018, and leading up to their contact the following morning at 1:00 a.m. During that contact, Fields provided alcohol to Doe during their encounter. In the factual resume, Fields admitted to having sexual contact with Doe on four occasions.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Roosevelt County Sheriff’s Office (RCSO), the Lamb County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Homeland Security, investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Guatemalan Man Admits Robbing and Threatening Happy State Bank Employee with a Pipe BombRead the Press Release
LUBBOCK, Texas — Eddie Estuardo Galindo-Mendez, age 44, a Guatemalan citizen, pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., to bank robbery through the threatened use of a pipe bomb, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Galindo-Mendez has been in custody since his arrest in March and will remain in federal custody. Galindo-Mendez faces a maximum statutory penalty of up to 20 years in federal prison and a $250,000 fine. Sentencing will be set by Senior United States District Judge Sam R. Cummings at a later date.
According to the plea agreement factual resume filed in the case, on November 20, 2017, about 3:00 p.m., Galindo-Mendez entered the Happy State Bank at 4402 19th Street, Lubbock, Texas and handed a note to a teller. The note contained words to the effect of: “There is a bomb. It is activated. Don’t push the button. No bait money. No ink.” Galindo-Mendez then placed an item that appeared to be a pipe bomb next to the teller’s computer. The device was made of capped galvanized pipes, duct tape, and wires connecting the device to a cell phone. Based upon Galindo-Mendez’s demands, the teller surrendered the money.
Surveillance videos later revealed the suspect fled the scene on a bicycle. Later review of the purported pipe bomb left at the bank determined it was inert.
Earlier that same day, at 1:46 p.m., the Texas Tech University Police Department (TTU PD) was notified of a suspicious package at Talkington Hall, Z2-D Parking Lot, 1803 Boston Avenue, Lubbock, Texas. TTU PD officers responded to that location and saw a gray Ford F-150 with its gas tank lid open. There were galvanized pipes with caps on both ends and duct tape around them hanging from the gas tank lid by a string. There was also a cell phone on the pipes with wires going from the phone to the pipes. TTU PD evacuated Merket Alumni Center, Talkington Hall, Horn Hall, and Knapp Hall. Upon further examination, the Lubbock County Sheriff’s Office Bomb Squad determined that the device was inert and processed it for evidence.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Lubbock County Sheriff’s Office, the Lubbock Police Department, and Texas Tech University Police Department investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Two South Texas Men Sentenced for their role in Extortion and Attempted Money Laundering ConspiracyRead the Press Release
FORT WORTH, Texas — Nygul Anderson, 19, and Albert Gonzalez, 19, were sentenced Monday by U.S. District Judge Reed C. O’Connor, to 36 and 30 months, respectively, in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a one-day bench trial in March 2018, Judge O’Connor convicted both Anderson and Gonzalez of conspiracy to use an interstate facility to commit a travel act violation, conspiracy to possess extortion proceeds and money laundering. Co-conspirator Fernando Cabrera pled guilty in December 2017 and was sentenced in April 2018 to fourteen months in federal prison.
According to the evidence presented at trial and the documents filed in this case, on September 22, 2017, a victim began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he had kidnapped the victim’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The ransom demand was lowered to $20,000, and the victim ultimately paid and delivered the ransom, per the kidnapper’s instructions. The kidnapped brothers were then recovered from being tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
Seven days later, on September 29, 2017, the same victim received another call from the unrecognizable Mexican telephone number demanding an additional $100,000 otherwise; they would again kidnap the brothers and kill them. The Mexico kidnapper contacted co-conspirator Cabrera to travel to Fort Worth to pick up the money. Cabrera then recruited his friend, Gonzalez, and they in turn recruited Anderson and a 17-year-old minor to pick up the money.
Shortly thereafter, Cabrera, Gonzalez, Anderson, Cabrera, and a 17-year-old minor – were arrested as they attempted to collect the ransom money.
This case was investigated by the Federal Bureau of Investigation and the North Richland Hills Police Department. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe were in charge of the prosecution.
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Fort Worth Man Admits to Hulen Mall ArsonRead the Press Release
FORT WORTH, Texas — Craig Michael Tezeno, 46, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Jeffrey L. Cureton to one count of arson, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Tezeno faces up to twenty years in federal prison and a $250,000 fine, and will remain in custody pending sentencing.
According to court documents filed in the case, on May 11, 2018, Tezeno entered the Dillard’s Department store in the Hulen Mall in Fort Worth, Texas with a glass bottle filled with gasoline and a rag. This device is commonly known as a Molotov Cocktail. While in the store, Tezeno lit the rag and placed the Molotov Cocktail on the floor. Shortly thereafter, Tezeno entered the Sears Department store and lit a second Molotov Cocktail. Tezeno placed both of these devices in the stores hoping to start a fire and cause damage to the store and its property.
On May 18, 2018, Tezeno returned to the Hulen Mall in Fort Worth, Texas and re-entered the Sears store. While in the store, Tezeno lit a third Molotov Cocktail and placed it on the floor.
“This guilty plea marks the culmination of several weeks of hard work, dedication, and cooperation between federal, state, and local authorities,” said U.S. Attorney Nealy Cox. “Through their efforts, we were able to identify and bring to justice an arsonist who put the safety of the people of the Northern District of Texas at risk.”
“This investigation is a great example of federal, state and local agencies working together to stop a clear and present threat to our communities,” said FBI Dallas Special Agent-in-Charge, Eric K. Jackson. “With the help of the United States Attorney’s Office, we are holding this subject accountable for his actions that occurred at the Hulen Mall.”
The Federal Bureau of Investigation and the Fort Worth Police Department investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Worth Fire Department’s Arson Investigations Unit, Tarrant County District Attorney’s Office and FBI Task Force Officers from the Tarrant County Sherriff’s Office, the Arlington Police Department, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety.
The case is being prosecuted by Assistant United States Attorney Jay Weimer.
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Fort Worth Man Sentenced to Life in Prison for His Role in Sex Trafficking of ChildrenRead the Press Release
FORT WORTH, Texas — Pierre Lagrone, aka “P” or “Pedro,” 34, was sentenced yesterday by U.S. District Judge Reed C. O’Connor, to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a four-day trial in April 2018, Lagrone and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Demarcus Davis, aka “Zigg,” 26, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Sanders was previously sentenced before Judge O’Connor to 420 months and Davis is scheduled for sentencing July 30, 2018.
According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.
This case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments. Assistant U.S. Attorney P.J. Meitl and Nicole Dana were in charge of the prosecution.
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Dallas County Community Action Committee, Inc. Vice President Sentenced for Defrauding Homeowner Seeking Loan and Foreclosure Prevention AssistanceRead the Press Release
DALLAS — Francisco Javier Gonzalez, a/k/a “Javier Gonzalez,”, 46, of Duncanville, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 60 months in federal prison and ordered to pay $611,740.55 in restitution for his role in a scheme to defraud numerous homeowners, banks and the Department of Housing and Urban Development, (HUD), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Gonzalez pleaded guilty in September 2017 to one count of mail fraud, stemming from his work at the Dallas County Community Action Committee, Inc. (DCCAC), a non-profit entity accredited by HUD to provide housing counseling. Gonzalez has been in custody since his arrest in October 2016.
According to the plea agreement factual resume filed in the case, Gonzalez served as a Vice President and Director for DCCAC, and leased space in the DCCAC offices for another entity, known as Residential Counseling FJ LLC.
While working in the DCCAC building, Gonzalez falsely claimed he was certified by HUD to provide foreclosure counseling assistance. Gonzalez sought out victims looking for mortgage loan and foreclosure prevention assistance and would then meet these victims in the DCCAC offices or in their homes.
Additionally, as stated in the plea agreement factual resume, Gonzalez prepared and submitted incomplete and false mortgage assistance applications for the victims. Gonzales instructed the victims to not communicate with the banks, as this would prevent him from effectively obtaining the loan modification. Additionally, Gonzalez required lump sum payments for his supposed assistance; and instructed the victims to make mortgage payments directly to him indicating he would forward these payments to the bank.
Gonzalez did not submit the monies he was paid by the victims to the banks, but instead used the money for his own personal expenses.
HUD Office of Inspector General, Federal Housing Finance Agency Office of Inspector General, and the United States Postal Inspection Service investigated the case. Assistant U.S. Attorney P.J. Meitl was in charge of the prosecution.
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Eight MS-13 Members Indicted in Dallas on Charges Including Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous WeaponRead the Press Release
A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Chief Jeff Spivey of the Irving, Texas Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.
- Charged in the 18-count indictment, which was unsealed today, are the following alleged MS-13 members and associates:
- Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
- Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
- Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
- Kevin Cruz, 19, aka Street Danger;
- Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
- Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
- Jonathan Alexander Baires, 20, aka Splinter.
The name of the eighth defendant is currently under seal.
“The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions. “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal. I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."
“MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox. “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”
“Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas. “Some of these violent gang members have illegally entered the United States as unaccompanied alien children. As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.
“Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”
According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area. MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.
According to the indictment, beginning on or about July 2016, and continuing through on or about the date of the indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery.
Across the racketeering conspiracy and other counts, the indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:
Date (on/in or about)
Location
Defendants
Weapons
Victims
July 14, 2017
5600 Block of Spring Valley Road in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz
Machete and other weapons
Two (one from 18th Street Gang)
July 15, 2017
200 block of West Rochelle Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos
Machete
One (drug dealer)
Aug. 9, 2017
3000 block of Webb Chapel Extension in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz
Knife, sledgehammer, and other weapons
One (from 18th Street Gang)
Aug. 19, 2017
1900 block of East Grauwyler Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Metal bat
One (from 18th Street Gang)
Middle of August 2017 through Aug. 20, 2017
Two Dallas parks and an apartment complex in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Shotgun
One (from 18th Street Gang)
Beginning of 2017 through Sept. 25, 2017
Various locations in Dallas and Running Bear Park in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires
Multiple machetes, shotgun, and other weapons
Four (one from 18th Street Gang)
Cabrera-Cruz was arrested on the indictment yesterday and made an Initial Appearance in Dallas. Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above. Their Initial Appearances will be scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.
Eight MS-13 Members Indicted in Dallas on Charges Including Racketeering, Conspiracy, Attempted Murder and Assault with a Dangerous WeaponRead the Press Release
DALLAS - A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.
The Indictment was announced by U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Field Office Director Marc Moore of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO); Chief Jeff Spivey of the Irving Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.
Charged in the 18-count Indictment, which was unsealed today, are the following alleged MS-13 members and associates:
- Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
- Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
- Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
- Kevin Cruz, 19, aka Street Danger;
- Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
- Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
- Jonathan Alexander Baires, 20, aka Splinter.
The name of the eighth defendant is currently under seal.
“MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox. “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”
“The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions. “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s Indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal. I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."
“Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas. “Some of these violent gang members have illegally entered the United States as unaccompanied alien children. As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.
“Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The Indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”
According to the Indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area. MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.
According to the Indictment, beginning on or about July 2016, and continuing through on or about the date of the Indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery.
Across the racketeering conspiracy and other counts, the Indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:
Date (on/in or about)
Location
Defendants
Weapons
Victims
July 14, 2017
5600 Block of Spring Valley Road in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz
Machete and other weapons
Two (one from 18th Street Gang)
July 15, 2017
200 block of West Rochelle Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos
Machete
One (drug dealer)
Aug. 9, 2017
3000 block of Webb Chapel Extension in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz
Knife, sledgehammer, and other weapons
One (from 18th Street Gang)
Aug. 19, 2017
1900 block of East Grauwyler Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Metal bat
One (from 18th Street Gang)
Middle of August 2017 through Aug. 20, 2017
Two Dallas parks and an apartment complex in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Shotgun
One (from 18th Street Gang)
Beginning of 2017 through Sept. 25, 2017
Various locations in Dallas and Running Bear Park in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires
Multiple machetes, shotgun, and other weapons
Four (one from 18th Street Gang)
Cabrera-Cruz was arrested on the Indictment yesterday and made an Initial Appearance in Dallas. Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above. Their Initial Appearances will be scheduled.
An Indictment is not a finding of guilt. An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.
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Grapevine Texas Man Pleads Guilty to Federal Hate Crime Against an African-American FamilyRead the Press Release
DALLAS — Glenn Eugene Halfin, 64, from Grapevine, Texas, appeared today before U.S. Magistrate Judge Jeffrey L. Cureton in the U.S. District Court for the Northern District of Texas and pleaded guilty to a federal charge of interfering with an African-American family’s housing rights, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Acting Assistant Attorney General John Gore of the Civil Rights Division.
According to court documents, Halfin threatened force, intimidated, and interfered with a family because of their race and occupancy of an apartment that was located directly above his own apartment.
According to documents filed in connection with the guilty plea, on Dec. 19, 2017, Halfin purchased a baby doll at a Wal-Mart in Grapevine, Texas. He took a rope, fashioned it into a noose, and hung the baby doll from the noose. Halfin then hung the rope noose and baby doll on the railing directly in front of the only staircase the family could use to access their apartment. Halfin did so, knowing that this display would be particularly intimidating for the family who had a young daughter. In addition, the defendant referenced in his factual basis repeated intimidation of and interference with the same African-American family on other occasions.
“No one should be afraid to go home at night,” said U.S. Attorney Erin Nealy Cox. “Our community will not tolerate crimes of intimidation or bigotry, and my office will continue to prosecute all those who persecute others based on their race, color, ethnicity, or religious beliefs.”
“The Justice Department will not tolerate acts of intimidation and fear, or illegal threats against any individual or family because of their race,” said Acting Assistant Attorney John Gore. “We will continue to prosecute hate crime offenders.”
Halfin faces a statutory maximum penalty of no more one year in federal prison and a $100,000 fine. His sentencing is scheduled for a later date.
This case was investigated by the FBI and the Grapevine Police Department. The case was prosecuted by Trial Attorney Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant United States Attorney Nicole Dana.
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Federal Indictment Charges 13 Wichita Falls Residents in a Drug ConspiracyRead the Press Release
Federal Indictment Charges 13 Wichita Falls Residents in a Drug ConspiracyWICHITA FALLS, Texas — Thirteen defendants were charged earlier this week in a one-count federal Indictment, for their role in a large-scale methamphetamine distribution conspiracy announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas today at a press conference.
Twelve of the thirteen individuals were arrested and made their initial appearance in federal court in Wichita Falls before U.S. Magistrate Judge Hal R. Ray, Jr. Eleven still remain in custody. One defendant is still at-large.
Those arrested include:
Lawrence Martin Boone, 51, Wichita Falls, Texas
Alicia Lane Murfield, 24, Wichita Falls, Texas
Ashleh Dawn Bowen 22, Wichita Falls, Texas
Charles Cheatle 43, Wichita Falls, Texas
Allyssa Marie Curry, also known as “Allyssa Marie Rogers” 29, Wichita Falls, Texas
Alexis Leigh Deleon 24, Wichita Falls, Texas
Brandon Shane Eustice 32, Wichita Falls, Texas
Michael David House 33, Wichita Falls, Texas
Michael Steven Mello 49, Wichita Falls, Texas
Justin Brian Onstead 23, Wichita Falls, Texas
Jason Alan Smith 44, of Abilene, Texas
Timothy Wayne Tatom 55, Wichita Falls, Texas
According to the Indictment filed in the case, the conspiracy began in March 2017, and operated until approximately January 10, 2018. The Indictment also contains a forfeiture notice that includes seven handguns and over $20,000 of U.S. Currency.
“These arrests are the results of a 14-month joint investigation with state, local and federal authorities,” stated U.S. Attorney Nealy Cox. “We have invested additional resources to fight the trafficking of dangerous drugs and violent crime in Wichita Falls, and we are now seeing the results of this increased presence.”
A federal criminal Indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
If convicted, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $1,000,000 fine.
Department of Public Safety, Criminal Investigation Division; Wichita Falls PD; Wichita County District Attorney’s Office, Drug Enforcement Division; Rhome PD; and the Iowa Parks PD are investigating. Assistant U.S. Attorney L. Rachael Jones is in charge of the prosecution.
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25 Individuals Charged in a Wichita Falls and Vernon Texas Drug ConspiracyRead the Press Release
WICHITA FALLS, Texas —In a collaborative effort by the Safe Streets Task Force, to include agents and officers from the FBI and Wichita Falls Police Department, Twenty-two individuals are in federal custody on a federal Complaint for a drug trafficking conspiracy, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Those defendants arrested today or in custody on other charges are:
Floyd Raymond Richardson, 48, Vernon, Texas
Wayland Brent Ballard, 51, Vernon, Texas
Brad Deshaun White, 40, Dallas, Texas
Christopher Davis, 38, Dallas, Texas
Virginia Ann White, 66, Vernon, Texas
Teasie Winnell Scott, 49, Vernon, Texas
Terry Lamar Murray, 35, Vernon, Texas
John Dupree Wesley, 31, Vernon, Texas
Djuanna Kyvon Newman, 32, Vernon, Texas
Chadrick Deshawn McBride, 39, Vernon, Texas
Galvin Lamar Daniels, also known as “G”, age 33, Vernon, Texas
Demarcus Anatanya Madison, also known as “Chastie”, 40, Abilene, Texas
Shelby Breanna Funk, 24, Dallas, Texas
Christian Joseph Chavez, also known as “Shrek”, 34, Wichita Falls, Texas
Adam Domingo Garcia, 49, Vernon, Texas
Lonta Hobbs, 34, Clarksville, Texas
Chmira Denise Williams, 28, Wichita Falls, Texas
Candace Rebecca Rodgers, 25, Wichita Falls, Texas
Jacinda Renee Burris, 30, Iowa Park, Texas
Addis Scales, 37, Wichita Falls, Texas
Alvin Gerald Travis, 67, Vernon, Texas (Transient)
Amber Dawn Hatcher, 37, Electra, Texas
“The arrests today mark the culmination of several years’ worth of hard work, dedication, and cooperation between federal, state, and local authorities in an effort to fight the trafficking of methamphetamine that destroys lives and families in our communities throughout the Northern District of Texas,” stated U.S. Attorney Nealy Cox.
“Today, the FBI, working with its local, state and federal law enforcement partners dealt an unrelenting blow to those individuals and groups that have profited from the distribution of illegal drugs and threatened the safety of the Wichita Falls and Vernon communities,” said FBI Dallas Special Agent-in-Charge, Eric K. Jackson.
The Complaint was signed by United States Magistrate Judge Hal R. Ray, Jr. on June 25, 2018, and unsealed today, charging 25 individuals in a conspiracy to distribute and possess with intent to distribute methamphetamine. Twenty-two of those defendants were arrested this morning, and two are still under seal.
Most of the defendants arrested today will make their initial appearances in federal court in Wichita Falls on Friday, July 13, 2018, before United States Magistrate Judge Hal R. Ray, Jr.
According to the Complaint, the defendants engaged in a conspiracy to distribute methamphetamine throughout Vernon, Wichita Falls, Dallas, and Fort Worth, Texas. The complaint further alleges that from approximately September 2014 through December 2017, the defendants conspired together, and with others, to possess with intent to distribute 50 grams or more of methamphetamine.
As alleged in the Complaint, as part of the conspiracy, its members had a fluid hierarchy that evolved over time. As some members were arrested or otherwise temporarily unavailable, other members took over the receipt and delivery of methamphetamine. Additionally, some of the money derived from the sale and distribution of methamphetamine would be used to purchase additional quantities of methamphetamine.
A federal criminal complaint is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The Federal Bureau of Investigation; Wichita Falls Police Department; Texas Department of Public Safety, Wichita County Sherriff’s Office, Vernon Police Department, 46th Judicial District Attorney’s Office, and the US Marshals Service are in charge of the investigation. Assistant U.S. Attorney Shawn Smith is in charge of the prosecution.
# # #
Dallas Attorney Sentenced for Marriage Fraud SchemeRead the Press Release
DALLAS — Bilal Ahmed Khaleeq, 48, a Dallas attorney, was sentenced today by U.S. District Judge David C. Godbey to 6 months in federal prison, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Co-defendant Amna Cheema, 38, a Pakistani national, previously pleaded guilty to her role in the scheme and was sentenced to time served.
According to the plea agreement factual resume, in June 2015, Khaleeq and others knowingly and unlawfully conspired and agreed together and with each other to unlawfully facilitate and enter into a marriage between Cheema and a United States citizen, Person A, for the purpose of evading immigration laws. Cheema and Person A were married in Dallas County, Texas and subsequently filed permanent residence applications with USCIS in July 2015. In exchange for agreeing to marry Cheema, Person A was paid $745. Cheema also admitted engaging in discussions with Khaleeq and Person A at Khaleeq’s law office on more than one occasion to discuss preparation for the USCIS interview and required documentary evidence including joint bank accounts, tax returns, and bills concerning their joint residence. According to co-defendant Cheema, Khaleeq also represented the couple at the USCIS interview in April 2016 and advised them on additional evidence to make the marriage appear legitimate.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier prosecuted.
# # #
Federal Jury Convicts Felon Who Escaped from Federal Custody and Shot up Grand Prairie Apartment ComplexRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted Alvin Christopher Penn, 28, for escaping from federal custody in Hutchins, Texas and being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Penn is scheduled to be sentenced on December 3, 2018. He faces a maximum penalty of 10 years’ imprisonment for the felon-in-possession charge and five years’ imprisonment for the escape charge.
During the course of the trial, the jury heard evidence that Penn was serving a sentence for a federal conviction for being a felon in possession of a firearm. As a part of his federal sentence, Penn was assigned by the Bureau of Prisons to serve out the end of his sentence at a residential reentry center in Hutchins, Texas.
On July 6, 2017, Penn was permitted to leave the residential reentry center to go to work in Fort Worth, Texas. However, instead of going to work, Penn went to an apartment complex in Grand Prairie. Penn accepted a loaded firearm from a family member and shot several rounds at two men, which started a shootout throughout the apartment complex. Penn took the firearm with him as he drove away from the apartment complex.
A police officer observed Penn driving a vehicle in Grand Prairie that matched the description of the suspected shooter’s vehicle and began following Penn. Penn attempted to evade the officer and engaged in a high-speed chase through a residential neighborhood, achieving speeds of 70-80 miles per hour. Penn lost control of the vehicle, drove through a fence of another apartment complex, and crashed into a building. After crashing the vehicle, Penn took the gun with him, brandished it at a bystander, and threw the firearm over the fence before fleeing from police. He did not return to his residential reentry center and was apprehended approximately a month later.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Grand Prairie Police Department investigated. Assistant U.S. Attorneys Jamie L. Hoxie and Marcus Busch are prosecuting the case.
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Federal Jury Convicts El Paso Man on Drug Trafficking ChargesRead the Press Release
LUBBOCK, Texas — Following a one-day trial today before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Enrique Rodriguez, 37, of El Paso, Texas, for his role in smuggling heroin and cocaine into the United States, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Rodriguez was convicted on one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of possession with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute 500 grams or more of cocaine. Judge Cummings ordered a presentence report prepared and will set a sentencing date once the presentence report is filed. Rodriguez has been in federal custody since his arrest on April 25, 2018.
According to evidence presented at trial, on April 25, 2018, an Investigator with the 32nd Judicial District Attorney’s Office conducted a traffic stop of a 2007 Ford Escape for an expired vehicle registration sticker. After noticing numerous indicators of suspicious activity, the Investigator had a narcotics detection canine do an open-air sniff around the Ford Escape. The canine alerted to the odor of narcotics coming from the vehicle.
A later search of the 2007 Ford Escape yielded two kilograms of heroin and one kilogram of cocaine. Law enforcement later recovered two more kilograms of cocaine hidden inside the center console of the vehicle.
During the trial, the United States presented evidence that Rodriguez was a Lieutenant in the Barrio Azteca criminal street gang. It also presented evidence that Rodriguez had smuggled the drugs from Mexico into the United States on April 24, 2018, for the Juarez Cartel and its enforcement arm, La Linea. In total, Rodriguez had smuggled approximately 1,000 pounds of heroin and 1,000 pounds of cocaine into the United States.
The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The 32nd Judicial District Attorney’s Office, the Texas Department of Public Safety, and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Juanita Fielden, Anderson Hatfield, and Jeffrey Haag are prosecuting the case.
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Federal Grand Jury Indicts Dallas Man for Securities FraudRead the Press Release
DALLAS – An indictment returned by a federal grand jury yesterday in Dallas charges Patrick O. Howard, 36, of Dallas, Texas, with offenses related to his role in a scheme to defraud investors and to obtain money by materially false and fraudulent pretenses, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Specifically, Howard is charged with five counts of securities fraud and nine counts of mail fraud.
The indictment alleges that from January 2015 through April 2017, Howard owned Howard Capital and OE Capital located in Dallas, Texas, and exercised authority over the companies and Funds.
Howard represented himself to be a Registered Investment Advisor, and offered and sold membership units to investors for $50,000 apiece. Investors were told the Funds would invest proceeds from unit sales into third-party companies and that the Funds stood to profit when the companies paid revenue interests.
Howard mislead investors by telling them that their investment would earn a 12% minimum annual return, that OE Capital had average earnings of 20%, that investors’ investments and minimum returns were protected by insurance, and that the Funds purchased real estate to mitigate investors’ risk.
Howard mailed investors who elected to reinvest phony quarterly earnings account statements showing their accounts had been credited the minimum preferred return, when they had not. At the same time, investors who chose to receive their quarterly earnings as distributions were actually given Ponzi payments, or monies paid by other investors, rather than actual earnings of the Funds.
The indictment further alleges that Howard never used a single dollar of investor funds to purchase real estate, and used investors’ money on things the investors did not approve or even know of, including, a nearly $20,000 payment to buyout a former business partner and approximately a $225,000 payment to Howard’s personal bank account that was neither salary nor a bonus.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If Howard is convicted, the mail fraud counts carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, as to each count.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense.
The case is being investigated by the Federal Bureau of Investigation and the United States Postal Service. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
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Operator of Dallas Physician Housecall Practice Arrested in Connection with Largest Health Care Fraud Enforcement Action in Department of Justice HistoryRead the Press Release
DALLAS – Nehaj Rizvi, 29, from Carrollton, Texas, was arrested today on a federal complaint charging her with health care fraud in connection with a $2.5 million home health care fraud scheme. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to documents filed in the case, Life Spring Housecall Physicians, Inc., (Life Spring), generated hundreds of fraudulent home health orders and certifications for multiple home health agencies in the DFW area. Life Spring is operated by Rizvi and owned by her husband, Mohsin Raza.
Rizvi used a physician’s signature stamp to sign home health orders and home health certifications for patients that the physician had never seen and who were not qualified for home health care. In reality, far from being homebound, many of the patients were able to drive and carry out normal functions of everyday life. More than 100 home health agencies obtained physician orders and certifications from Life Spring, which enabled the agencies to claim their patients were homebound and gave the appearance that their services were justified. Life Spring’s false documents led to home health agencies billing Medicare approximately $2,500,000 in fraudulent claims.
“The charges announced today in Dallas are an example of the outstanding investigative work by this district’s Healthcare Fraud Strike Force that has been in operation since 2011,” stated U.S. Attorney Nealy Cox. “Home health care fraud continues to plague the DFW area. This office will continue to aggressively investigate and prosecute anyone trying to defraud Medicare and other public health care programs.”
“This takedown is a warning to fraudsters that their crimes will be uncovered,” said C.J. Porter, Special Agent in Charge of the Dallas Regional Office of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, we will work to ensure that criminals who orchestrate these schemes are brought to justice.”
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the health care fraud offense charged against Rizvi is 10 years in federal prison and a $250,000 fine. The investigation is being conducted by Special Agents with HHS. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
Rizvi’s arrest is part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, announced today by Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III. Today’s enforcement actions involves 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings to Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies. Of those charged, over 162 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
Additional documents related to this announcement are available at: https://www.justice.gov/opa/documents-and-resources-june-28-2018
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Subcontractor Sentenced for Violating an OSHA Regulation Causing Death to an EmployeeRead the Press Release
DALLAS —Design Plastering West LLC, a New Mexico domestic limited liability company (LLC), was sentenced today before United States District Judge Ed Kinkeade of an Occupational Safety and Health Act (OSHA) violation causing death to an employee, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. As a part of Design Plastering West LLC’s sentencing, the company was ordered to pay a $150,000 criminal fine and $100,000 civil penalty, admit to eight willful violations of OSHA regulations, and be monitored for four years by an OSHA compliance expert.
According to court documents filed, on May 24, 2018, Design Plastering West LLC pled guilty to a one-count information.Design Plastering West LLC, a subcontractor, contracted to complete work at the Maple District Loft, a project in Dallas, Texas. Design Plastering West LLC employed Jorge Carrion Torres to complete stuccowork. On May 14, 2015, Mr. Torres died when he fell approximately 23 feet from the third floor balcony of that project. Design Plastering West LLC admitted the third floor balcony where Mr. Torres was working did not have the proper fall protections, such as guardrail systems, safety net systems, or personal fall arrest systems. Design Plastering West LLC admitted to failing to provide fall protection and that such failure caused the death of Mr. Torres.
The investigation was conducted by Department of Labor, Occupational Safety and Health Administration. Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution and was assisted by attorneys from the Department of Labor, Office of the Solicitor.# # #
Texas Physician and Two Texas Nurses Convicted for Roles in Home Health Care Fraud SchemeRead the Press Release
A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud. Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled.
“Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.”
“The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”
“All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “In this case, decisions revolved around a fraud scheme to enrich the defendants. The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”
According to evidence presented at trial, from 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits.
Four other defendants, have been convicted in this matter and in a related case. Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Texas Physician and Two Texas Nurses Convicted for Roles in Home Health Care Fraud SchemeRead the Press Release
DALLAS – A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.
U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud. Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled.
“Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.”
“The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”
“All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “In this case, decisions revolved around a fraud scheme to enrich the defendants. The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”
From 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits.
Four other defendants, have been convicted in this matter and in a related case. Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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20 Individuals Charged in a West Texas Drug ConspiracyRead the Press Release
LUBBOCK, Texas — In a collaborative effort spearheaded by the Caprock HIDTA (Hi-Intensity Drug Trafficking Area) Task Force, and the Texas (Lubbock) Anti-Gang Center (TAG), 20 individuals are in federal custody on a federal criminal indictment for a drug trafficking conspiracy, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas. Those defendants arrested yesterday or in custody on other charges are:
Jose Garcia-Lizanaga, also known as “Chepe”, 43, Lubbock
Jorge Luis Lizarraga-Tirado, also known as “Luis” or “Barba”, 30, Mexican citizen
Antonio Alvarez, Jr., also known as “Tony”, 42, Lubbock
Eduardo Agustin Cruz, also known as “Lalo”, 41, Lubbock
Robert Lee Melendez, also known as “Roberto”, 26, Meadow
Jesus Marcus Franco, also known as “Jesse”, 34, Brownfield
Juana Sanchez, also known as “Juana Salazar” or “Jaime”, 41, Littlefield
Richard David Hupper, also known as “Piraton”, 42, Pennsylvania
Andrew Doyal Pugh, 29, Alabama
Gregory Holleman, also known as “G”, 50, Lubbock
Saul Chavira-Molina, 25, Kansas
Jermaine Edgar Garmon, 40, Lubbock
Shad Everett Evans, 42, Brownfield
Arturo Sanchez, 39, Lubbock
Petra Maria Sauceda-Perez, also known as “Aunt” or “Tia”, 38, Fabens, Texas
Kim Herrera, 27, Lubbock
Jessica Angel Deleon, 34, Lubbock
Broderick Bradley, 35, Lubbock
Ambrosio Garcia, Jr., also known as “Bocho”, 33, Lubbock
Ambrosio Garcia-Rodriguez, Sr., 58, Mexican citizen
“This is just an example of the amazing results that have come, and will come, by uniting federal, state, and local law enforcement in fighting drug trafficking in West Texas. By adopting the ‘one mission, one team’ approach to narcotics, violent crime, and gang enforcement, the HIDTA and TAG will produce exceptional results for the people of the South Plains,” stated U.S. Attorney Nealy Cox.
The indictment was returned by a federal grand jury in Lubbock, Texas earlier this month, and unsealed yesterday, charging 20 individuals in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; distribution and possession with intent to distribute methamphetamine, cocaine, cocaine base, and marijuana; unlawful use of a communications facility; and bulk cash smuggling. Fifteen of those defendants were arrested yesterday, five were already in custody at the Lubbock County Detention Center on related state charges.
As a result of this operation, law enforcement seized approximately one pound of cocaine, five pounds of hydroponic marijuana, five firearms, twelve vehicles, and a recreational vehicle.
Most of the defendants arrested will make their initial appearances in federal court before United States Magistrate Judge D. Gordon Bryant, Jr.
According to the indictment, the defendants engaged in a conspiracy to distribute cocaine and other illegal narcotics throughout West Texas and elsewhere. The indictment further alleges that from approximately January 2018 through June 2018, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine; five kilograms or more of cocaine, and marijuana.
A federal criminal indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The Caprock HIDTA Task Force and TAG are comprised of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Texas Department of Public Safety, the Lubbock County Sheriff’s Office, and the Lubbock Police Department. The United States Marshals Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations-Enforcement and Removal Operations, the Hockley County Sheriff’s Office, the Terry County Sheriff’s Office, the Brownfield Police Department, and the Levelland Police Department rendered invaluable assistance in the operation. The Drug Enforcement Administration offices in Midland and El Paso, and the El Paso County Sheriff’s Office were instrumental in assisting with those individuals located in other jurisdictions.
This case is being prosecuted by Assistant U.S. Attorney Sean Long.
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Previously Convicted Black Hat Search Engine Optimizer Sentenced for Retaliating Against His Former VictimRead the Press Release
DALLAS — William Laurence Stanley, 54, of Dallas, Texas, a self-proclaimed black hat search engine optimizer and reputation manager was sentenced June 12, 2018, by U.S. District Judge Sidney A. Fitzwater to serve 97 months in federal prison and ordered to pay $5,605,226 in restitution, following a five-day trial in April 2017, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Stanley was previously sentenced in January 2016 to 37 months in federal prison for extorting money from a Dallas-based business (victim company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N.
According to evidence presented in the April 2017 trial, Stanley began planning his retaliation while serving his prison sentence on the extortion conviction. From September through sometime in October 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false or derogatory comments or reviews online about the victim company.
Between September 8, 2016 and October 10, 2016, Stanley posted derogatory online articles/blogs/complaints intended to portray the victim company in a negative light. Stanley posted the retaliatory data on Facebook.com, Glassdoor.com, ShaggyTexas.com, 800notes.com, callsreceived.com, Yelp.com, Blogspot.com, and Wordpress.com. Several of the articles/blogs/complaints had titles and photographs added to place the victim company in a negative light. Stanley also encouraged others to duplicate the negative content in as many places as possible.
Evidence during the trial established that a company’s reputation is based on the hard work, integrity, and dedication of more than hundreds of associates nationwide. The victim company repeatedly earned and received top honors and awards in its industry. Stanley’s retaliatory conduct caused extensive harm to its reputation.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney C.S. Heath prosecuted.
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Mesquite, Texas Man Sentenced to 240 Months in Federal PrisonRead the Press Release
DALLAS— Manuel Medina-Valdes, 25, of Mesquite, Texas, was sentenced Friday, June 15, 2018, by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison for his role in the distribution of methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Medina-Valdes has been in custody since his arrest in December 2016. He pleaded guilty in June 2017 to one count of possession with intent to distribute methamphetamine.
According to the plea agreement factual resume filed in the case, on December 13, 2016, Drug Enforcement Administration agents executed a federal search warrant at Medina-Valdes’s residence in Mesquite, Texas. Agents seized two sets of keys on a nightstand, numerous detailed drug ledgers, and an air respirator mask. The keys seized from Medina-Valdes’s residence unlocked the home’s front door and a guest room’s closet door. After unlocking the closet door, agents found approximately seven kilograms of methamphetamine, miscellaneous methamphetamine lab re-crystallization equipment, drug packaging, approximately $15,000, five handguns and ammunition. Additionally, agents located a Mexican passport for Medina-Valdes and multiple Home Depot and Walmart receipts for acetone, propane, and plastic containers, which are used recrystallizing methamphetamine.
The Drug Enforcement Administration led the investigation, with assistance from the Rockwall Police Department, Garland Police Department, and Allen Police Department. Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
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Federal Jury Convicts Grand Prairie Man on Firearm ChargesRead the Press Release
DALLAS— Following a two-day trial, a federal jury convicted Eric Gerard McGinnis, 42, of Grand Prairie, Texas, of multiple firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, on Wednesday, a federal jury convicted McGinnis of possessing an unregistered short barrel rifle and unlawfully possessing ammunition while he was subject to an active protective order. McGinnis will remain in custody pending sentencing, which is set for October 24, 2018, before U.S. Chief District Judge Barbara M.G. Lynn.
According to evidence presented at trial, a Dallas County court entered a two-year protective order against McGinnis on August 31, 2015, finding that he had committed family violence against a former girlfriend with whom he had lived. The protective order also prohibited him from possessing firearms or ammunition.
On July 28, 2017, officers from the Grand Prairie Police Department responded to the sound of gunshots in a wooded area near North Belt Line Road and East Palace Parkway. There they found McGinnis carrying a backpack that contained an AR-15 rifle that had a receiver made using a 3D printer and had a barrel that was only ten inches long. He also possessed 88 rounds of ammunition for the rifle. McGinnis did not have the short barrel rifle registered to him in the National Firearm Registration and Transfer Record, which is the repository for registrations for weapons that must be registered under the National Firearms Act.
The evidence presented at trial also showed that McGinnis had attempted to purchase a receiver from a federal firearms licensee in 2016, but the transaction required a background check that rejected McGinnis based on the active protective order.
The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Grand Prairie Police Department investigated the case. Assistant U.S. Attorneys Brian McKay and Rick Calvert are prosecuting the case.
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