Northern District of Texas
Press releases recorded for this federal judicial district.
Lubbock Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
LUBBOCK, Texas — Eugene Joseph Martinez, 20, of Lubbock, Texas, was sentenced yesterday by Senior U.S. District Judge Sam R. Cummings to 240 months in federal prison, following his guilty plea in December 2017 to one count of transportation of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Martinez has been in custody since the time of his arrest in November 2017.
According to documents filed in the case, between June 22 and September 6, 2016, Martinez used various electronic devices to transport numerous images and videos depicting minors engaged in sexually explicit conduct. Martinez transported these images by way of the Internet, to a Dropbox account that he used to collect the images and videos.
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 Federal Bureau of Investigation and the Lubbock Police Department Internet Crimes Against Children Unit investigated the case. Assistant U.S. Attorney Jeffrey Haag and Assistant U.S. Attorney (retired) Steve Sucsy were in charge of the prosecution.
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Federal Grand Jury Indicts Hutchins Man and Woman for Their Roles in the Murder of an U.S. Postal Service EmployeeRead the Press Release
DALLAS — A federal grand jury in Dallas returned a three-count indictment this week charging Donnie Arlondo Ferrell, 25, and Bei-jing Tashawna Walker, aka “Channelle Walker,” 24, both of Hutchins, Texas, with felony offenses related to the February 19, 2018 murder of a United States Postal Service employee. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Last month, Ferrell was charged in a related criminal complaint. The indictment charges Ferrell with one count of murder of an officer or employee of the United States and one count of using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. Walker is charged with one count of accessory after the fact. Both defendants will remain in custody pending further court hearings.
According to the indictment filed in the case, on February 19, 2018, Ferrell shot and killed an United States Postal Employee while the employee was on duty. Walker assisted Ferrell after the shooting to prevent Ferrell from being apprehended.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences 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 (if any), the defendant’s role in the offense and the characteristics of the violation
The Dallas Police Department and United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys P.J. Meitl, John Kull and Brian Portugal are prosecuting.
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Dallas Man Sentenced for Committing Several Bank RobberiesRead the Press Release
DALLAS — Timothy Thomas, 40, of Dallas, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to serve a total of 174 months in federal prison and ordered to pay $17,534.00 in restitution, following his guilty plea in October 2017 to five counts of bank robbery, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to court documents filed in the case, Thomas, who was previously convicted for a bank robbery in Chicago, Illinois and on supervised release for that offense, committed the following bank robberies in the Dallas, Texas area:
February 13, 2017 Chase Bank 2655 Arapaho Rd., Garland
January 17, 2017 Chase Bank 11770 Marsh Ln., Dallas
December 22, 2016 Chase Bank 11611 Preston Rd., Dallas
December 13, 2016 Chase Bank 2655 Arapaho Rd., Garland
December 9, 2016 Chase Bank 12875 Josey Ln., Farmers Branch
December 3, 2016 BBVA Compass Bank 2307 West Illinois Ave., Dallas
November 21, 2016 BBVA Compass Bank 2307 West Illinois Ave., Dallas
November 10, 2016 Chase Bank 11770 Marsh Ln., Dallas
October 27, 2016 Wells Fargo Bank 13050 Coit Rd., Dallas
October 13, 2016 Bank of America 5610 Broadway Blvd., Garland
October 7, 2016 BBVA Compass Bank 2307 West Illinois Ave., Dallas
October 4, 2016 Chase Bank 12900 Coit Rd., Dallas
All of these robberies were committed in essentially the same manner—upon entering the bank, Thomas would approach the teller and present a note stating that he had a gun, request a specific amount of money, and threaten harm if the police were called.
Judge Fitzwater ordered that Thomas serve 150 months for the five counts he pleaded guilty to in this case and 24 months for the supervised release violation, which will run consecutive to the 150-month sentence.
The Federal Bureau of Investigation, with the assistance of the Dallas Police Department, Garland Police Department, and Farmers Branch Police Department, investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Federal Grand Jury Indicts Guatemalan Man Who Used a Suspected Pipe Bomb in a Bank RobberyRead the Press Release
LUBBOCK, Texas — A federal grand jury in Lubbock, Texas, returned an indictment today charging Eddie Estuardo Galindo-Mendez, 43, a Guatemalan citizen, with one count of bank robbery for the November 20, 2017, robbery of Happy State Bank in Lubbock, Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Galindo-Mendez was charged last week in a related federal criminal complaint with one count of bank robbery. He was in federal custody on other charges at the time the complaint was filed.
According to the affidavit filed with the criminal complaint and the indictment, on November 20, 2017, law enforcement responded to a call for two suspected Improvised Explosive Devices (IED). One IED was located on the campus of Texas Tech University and one was used in the robbery at Happy State Bank, located in Lubbock, Texas. The IEDs were described as pipe bombs. Law enforcement reviewed surveillance video captured from Texas Tech University and Happy State Bank’s interior video systems. The videos show that around 1:27 p.m. the suspected IED was placed on a student’s truck at Texas Tech University and at around 3:00 p.m. an individual robbed the Happy State Bank utilizing a note and a suspected IED.
Employees at the bank advised that Galindo-Mendez entered the bank, approached the teller, and handed the teller a note that stated he had a bomb and requested money. Galindo-Mendez also placed what appeared to be a pipe bomb on the counter. The employees provided Galindo-Mendez with approximately $2,553 and he left the bank on a bicycle and took the note, but left behind the IED. Bomb Technicians examined the IED and determined it to be inert.
“Prosecuting violent crimes is a top priority for my office and the Department of Justice,” said U.S. Attorney Nealy Cox. “Prosecuting those violent crimes that touch upon the safety and security of our schools, universities and financial institutions is of paramount importance. To those who commit violent crimes and threaten these institutions, know that law enforcement will relentlessly pursue bringing you to justice.”
ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek stated “Today’s indictment is an example of ATF’s commitment to working with our law enforcement partners to pursue federal criminal charges against those that use firearms, explosives or arson to victimize businesses and endanger the public that patronizes them.”
“This is yet another example of the cooperative efforts that federal, state and local agencies do on a regular basis for the citizens in Lubbock and the surrounding communities,” said Assistant Chief Jerry Brewer, Lubbock Police Department Investigations Services Bureau.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, the maximum statutory penalty for the offenses charges is 20 years in federal prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Lubbock Police Department, Federal Bureau of Investigation, United States Border Patrol, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Texas Department of Public Safety, Texas Tech University Police Department, and the Lubbock County Sheriff’s Office investigated the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Frisco Man in Custody on Federal Charges Stemming from a Murder-For-Hire PlotRead the Press Release
DALLAS — Eskandar Molavi, 69, of Frisco, Texas, is in federal custody following his arrest Friday, March 16, 2018 on federal charges stemming from a murder-for-hire plot to have his former business partner kidnapped and possibly killed. The announcement was made this afternoon by Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Molavi is charged with one count of solicitation of kidnapping and one count of attempted kidnapping. He made his initial appearance yesterday before U.S. Magistrate Renee Harris Toliver. A detention hearing was held today and Molavi was ordered detained pending trial.
According to the criminal complaint affidavit filed in the case, Molavi approached a man, whom Molavi believed to be a pilot for a Mexican Drug Trafficking Organization (DTO), about kidnapping his former business partner, later identified as H.M., and forcing him to sign over a gas station that Molavi lost to H.M. in civil court. Molavi told the man that if the business partner did not sign the business over, he wanted him flown to Mexico and murdered.
On March 6, 2018, according to the affidavit, the individual Molavi contacted had an unplanned meeting with Molavi in Frisco, Texas. At the meeting, Molavi again asserted that he wanted H.M. kidnapped and forced to sign over the gas station. The man told Molavi that a man known as “D.J.,” also known as “Iceman,” would be in town, and would be the individual that would carry out the kidnapping/extortion scheme. The individual referred to as D.J. or Iceman was, in fact, an FBI agent.
On March 13, 2018, the FBI agent met with Molavi in Dallas, Texas. During the course of the meeting, Molavi told the agent about his dispute with H.M.; inquired about what services the agent could provide and the cost of such services. Molavi ultimately agreed to pay the agent $20,000 to kidnap H.M. and force him to sign over the business. Molavi provided the agent with H.M.’s true name, home address, business address, and information related to the location of the school that H.M.’s daughter attended. Molavi also told the agent that if H.M. did not sign over the business, that the agent should kill H.M. The agent told Molavi that the price for murder was $50,000.
After the meeting, Molavi asked the individual he originally contacted if he would be able to get him a gun and a silencer in the event that the agent was unsuccessful in getting H.M. to sign over the business.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a U.S. magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the case to a federal grand jury for indictment. If convicted, however, the defendants’ sentences 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 (if any), the defendant’s role in the offense and the characteristics of the violation.
The investigation was conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Dallas Man Sentenced to 166 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
DALLAS — Ivan Reyes Perez, 27, of Dallas, Texas, was sentenced yesterday by U.S. District Judge David C. Godbey to 166 months in federal prison and ordered to forfeit $27,080 for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Perez has been in custody since his arrest in April 2017. He pleaded guilty in October 2017 to one count of conspiracy to possess with intent to distribute and to distribute and controlled substance.
Co-defendant Genesis Jaramillo, 24, was arrested in June 2017. Jaramillo pleaded guilty to her role and is awaiting sentencing.
According to the plea agreement factual resume, on March 25, 2017, law enforcement knocked on the door to room at a Hampton Inn Hotel in Mesquite, Texas. Jaramillo answered the door and Perez came up behind her. Officers were granted permission to search the room. Upon entering, officers observed a plastic bag containing a crystal like substance in plain view, a cooking pot and a pan that contained a crystal like substance. Officers also located a digital scale and plastic baggies, and a substance that is used to cut or supplement methamphetamine by those involved in the sale and distribution of methamphetamine.
The Drug Enforcement Administration and Mesquite Police Department investigated the case. Assistant U.S. Attorney George Leal prosecuted.
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Baytown Man Convicted in Cocaine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Following a four-day trial before Senior U.S. District Judge Sam R. Cummings, a federal jury convicted Frederick Allen, 44, of Baytown, Texas, for his role in a drug conspiracy that operated throughout West Texas. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made today’s announcement.
On March 19, 2018, a jury convicted Allen on one count of conspiracy to distribute controlled substances and one count of distribution and possession with intent to distribute cocaine. Allen was remanded to custody following the verdict.
The penalties for the offenses is up to thirty years in federal prison and a $2,000,000 fine. A sentencing date has not yet been set.
The government presented evidence at trial that Allen would supply large quantities of cocaine to mid-level dealers, who in turn, would supply street dealers in Abilene, San Angelo, and the surrounding areas. Law enforcement relied on undercover federal agents to infiltrate Allen’s drug trafficking operation. On Sunday, October 22, 2017, federal agents conducted an undercover operation in Baytown, Texas. Frederick Allen and Jesse James Scott drove to the San Jacinto Mall and met with a person they believed to be a high-level drug dealer. In reality, the person they were meeting was an undercover federal agent. After Allen and Scott arrived at the mall in Baytown, the undercover agent purchased a ¼ kilogram of cocaine and approximately 3,000 methamphetamine tablets. The cocaine and methamphetamine tablets had a street value of at least $25,000.
Agents subsequently searched Allen’s residence and found approximately $7,000 in United States currency in various denominations. At trial, Allen told the jury that the money found in his apartment was from an old vehicle that he sold to his mother for $6,000. Allen later admitted that his sister had given him the vehicle for free and that the vehicle was only worth approximately $4,000. Allen also testified that he was not in Baytown during critical times in the conspiracy. However, after confronted with GPS data, phone records, and other evidence, Allen recanted his earlier testimony and admitted that he must have been in Baytown during the times alleged by the Government.
The Drug Enforcement Administration led the investigation and was assisted by the Baytown Police Department, the San Angelo Police Department, and the U.S. Marshals Service. Assistant U.S. Attorneys Russell Lorfing and Sean Long are prosecuting the case.
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Dallas Man Convicted of Mortgage Fraud OffensesRead the Press Release
DALLAS — Yesterday, a federal jury convicted Chukwuma Jonas Osuagwu, 45, of Dallas, following a seven-day jury trial before U.S. District Judge Ed Kinkeade, of several counts related to a mortgage fraud scheme, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, Osuagwu was convicted of five counts of bank fraud and one count of conspiracy to commit bank fraud. He faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine for each count of bank fraud and conspiracy to commit bank fraud. Osuagwu will remain in custody pending sentencing.
Osuagwu was charged along with codefendant, James W. Mitchell, 36, of Boston, in a 12-count indictment in August 2016 with tax and mortgage fraud offenses. Mitchell pleaded guilty in November 2016 to one count of conspiracy to commit bank fraud. Mitchell faces a maximum penalty of not more than five years and a $250,000 fine. He is scheduled to be sentenced on April 11, 2018.
The five counts of tax fraud and one count of tax obstruction Osuagwu was charged with in the August 2016 indictment are still pending.
According to evidence presented at trial, starting in September 2006 and continuing for more than a year, Osuagwu engaged in a series of fraudulent real estate transactions in which he either personally purchased or sold to one or more straw purchasers or co-conspirators three residential condominium units on Hood Street in Dallas. Osuagwu was able to personally purchase, or assist others in purchasing multiple residential condominium units only by submitting, or causing to be submitted on behalf of others, false, fraudulent and fictitious statements, documents and representations. Fraudulent documents submitted included, false bank statements, employment letters, false IRS W-2 statements or false paystubs indicating the purchaser worked for Osuagwu’s company, Inforation, Inc. These documents caused one or more financial institutions, including Bank of America, J.P. Morgan Chase Bank and Wells Fargo Bank, to issue a mortgage loan they otherwise would not have issued.
IRS Criminal Investigation and the Federal Housing Finance Agency Office of Inspector General led the investigation; Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) assisted.
Assistant U.S. Attorneys Adrienne Frazior and J. Nicholas Bunch are in charge of the prosecution.
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Two Men Convicted of Two Additional Counts Related to Extortion/Kidnapping PlotRead the Press Release
Fort Worth, Texas – Yesterday, U.S. District Judge Reed O’Connor convicted Nygul Anderson, 19, and Albert Gonzalez, 18, of two additional counts for their role in an extortion and kidnapping scheme that occurred in Fort Worth in October 2017, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
On March 2, 2018, following a one-day trial, Judge O’Connor convicted the two men of one count of conspiracy to use an interstate facility to commit a travel act violation. At that time, Judge O’Connor reserved ruling on the two remaining counts. Yesterday, Judge O’Connor convicted Anderson and Gonzalez of one count of conspiring to possess extortion proceeds and one count of attempted money laundering.
Sentencing for both defendants is scheduled for June 25, 2018. They face a maximum penalty of 30 years in prison and a fine of $750,000.
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 next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same victim received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017.
On October 13, 2017, the kidnappers in Mexico and the victim agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location.
Shortly thereafter, four individuals – Anderson, Gonzalez, Fernando Cabrera (who previously pled guilty), and a 17 year-old minor – were arrested as they attempted to collect the ransom money.
During trial, the government proved that these four individuals believed that they were collecting $20,000 in unlawful proceeds. The four conspirators had met in McAllen, Texas, and then drove to Houston, then to Dallas, and then to Fort Worth in an attempt to collect the money. These four conspirators communicated with other conspirators in Mexico during the trip about the location of the money pick, the amount of money to be retrieved, and precautions that should be taken to avoid detection.
The FBI and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe prosecuted.
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Lubbock Man Sentenced to 327 Months for Production of Child PornographyRead the Press Release
LUBBOCK, Texas — Kevin Ismael Lopez, 25, of Lubbock, Texas, was sentenced Friday, March 9, 2018 by U.S. District Judge Sam R. Cummings to 327 months in federal prison and 20 years of supervised release, following his guilty plea in November 2017 to two counts of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Lopez has been in custody since his arrest in August 2017 on a related criminal complaint.
According to the plea agreement factual resume, on December 14, 2016, Lopez used his mother’s cellular telephone, to record a video of Lopez engaging in sexual conduct with a prepubescent minor female as she slept at his Lubbock, Texas residence.
On January 24, 2017, at the same residence, Lopez used another cellular phone, to record a video of Lopez engaging in sexual conduct with another prepubescent minor as she slept. Lopez also made a sexually explicit video recording of the girl. After creating this video recording, Lopez used the Internet to transport the video to his Dropbox account, which he used for online storage of some of his videos and images.
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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Lubbock County Sheriff’s Office investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
WASHINGTON - Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below:
Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.# # #
Father and Son Convicted Following Trial in $16.7 Million Health Care Fraud SchemeRead the Press Release
DALLAS – Yesterday, following a 10-day trial before U.S. Chief District Judge Barbara M.G. Lynn, a jury convicted Terry Lynn Anderson, 67, and Rocky Freeland Anderson, 37, of Dallas, on multiple felony counts related to a health care fraud scheme they operated, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
The jury convicted the father and son duo on one count of conspiracy to commit health care fraud, eight counts of health care fraud, and four counts of aggravated identity theft. The jury convicted Terry Anderson on two additional health care fraud counts.
The evidence at trial showed that the defendants defrauded Blue Cross and Blue Shield of Texas (Blue Cross) by submitting claims on behalf of employees of American Airlines, Inc. for hearing aids that were not needed and, in many cases, never dispensed to the patient. The fraudulent claims were submitted through Anderson Optical & Hearing Aids Center, the defendants’ family-owned business that had locations in Arlington and Bedford.
To increase the number of claims they could submit to Blue Cross, the defendants engaged in fraudulent marketing practices. For example, the defendants promised patients a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told patients that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free glasses. The defendants promised patients that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would waive any applicable copayments, coinsurance, or deductibles. The defendants also offered patients $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
In 2012, the pair brought their fraud scheme into American Airlines’ airport facilities and started offering free hearing tests to aircraft mechanics and fleet services clerks in maintenance hangars and employee breakrooms. Attracted by the offer of free sunglasses, the pair often had long lines of employees waiting to be tested. However, an expert witness who testified for the government explained that the cursory screening tests the defendants performed, which witnesses described as lasting 3-5 minutes, were incapable of producing results upon which one could make a legitimate decision to dispense hearing aids. Witnesses from Blue Cross testified that these cursory screening tests also failed to comply with Blue Cross’s medical policies related to the evaluation of hearing impairment.
The evidence also showed that, in November 2013, Blue Cross conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit (Professional Licensing Unit) began an investigation regarding a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by Blue Cross. The patient records submitted to the Professional Licensing Unit had altered test scores and additional notations that were not present when the same records were submitted to Blue Cross in November 2013.
During the period of the conspiracy, Anderson Optical & Hearing submitted claims to Blue Cross for hearing aids on behalf of American Airlines employees totaling more than $27 million. As a result of these claims, Blue Cross paid Anderson Optical & Hearing more than $16.7 million.
At trial, Terry Anderson took the stand in his own defense. In an attempt to shift the blame on to patients who were more interested in his offer of free sunglasses than they were in hearing aids, he testified, “Well, unfortunately among us are people that will take advantage of perhaps any program, if they have an opportunity to.”
The defendants face a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the conspiracy count and for each of the substantive health care fraud counts. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a fine of up to $250,000.
The superseding indictment includes a forfeiture notice that requires the defendants to forfeit a 300 acre ranch in Bosque County, three vehicles, and more than $3.1 million that was seized from nine financial accounts in December 2015.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Douglas Brasher and Rachael Jones prosecuted.
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Dallas Man Sentenced to 41 Months in Federal Prison and Ordered to Pay $1.4 Million in Restitution for Corporate Embezzlement SchemeRead the Press Release
DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 41 months in federal prison and ordered to pay $1,412,424.06 in restitution, following his guilty plea in September 2017 to offenses related to a scheme to defraud Pivotal Petroleum Services LLC, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. The total restitution figure included the total amount of funds stolen, as well as additional funds spent to investigate Anderson’s theft of his employer’s funds.
Anderson pleaded guilty to one count mail fraud. Judge Fitzwater ordered Anderson to surrender to the Bureau of Prisons on April 24, 2018.
According to the plea agreement factual resume, Tailwater Capital LLC was a Texas corporation, based in Dallas, Texas that specialized in raising private equity capital for oil and gas investments. Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations, based in Dallas, Texas that specialized in acquiring and leasing non-operating working interests of oil and gas properties. Tailwater Capital LLC owned Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
P2 Energy Solutions was a privately held company, based in Denver Colorado, with Texas offices in Houston, San Antonio and Fort Worth. P2 Energy Solutions provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution. Pivotal Petroleum Services LLC handled the administrative and accounting services of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP. Pivotal Petroleum Services LLC in tum used the services of P2 Energy Solutions to electronically process incoming vender invoices and to physically prepare hard copy checks payable to the companies listed on the invoice. P2 Energy Solutions then caused checks prepared by P2 Energy Solutions to be sent via the United States Postal Service to the addresses printed on the checks or delivered by a private courier services all at the direction of Anderson.
Empery Resource Consultants, LLC (Empery) was a Texas corporation which Anderson secretly set up and used as part of the scheme to embezzle Tailwater Capital Funds. Over a 33 month period, Anderson repeatedly submitted fraudulent invoices to Pivotal Petroleum Partners falsely claiming payment to Empery Resource Consultants for “landmen” services that were never provided to Pivotal Petroleum Partners.
On May 14, 2014, according to the factual resume, Anderson was hired by Pivotal Petroleum Services as the corporate controller. As controller, Anderson was responsible for the accounting operations of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP. These duties involved the preparation of financial reports, maintaining records involving the receipt and disbursement of funds to ensure that the reported results comply with the generally accepted accounting principles. These duties included the review and approval of vender invoices for payment. As controller, Anderson was clearly responsible to monitor and protect the assets of the Pivotal Petroleum companies. Instead, Anderson used his position of trust as corporate controller to betray his employer Tailwater Capital and ultimately caused total losses of over $1.4 million to Tailwater Capital.
On August 28, 2014, Anderson opened a business bank account in the name Empery Resource Consultants, LLC. Anderson used this account to deposit and later spend funds fraudulently obtained Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
From August 2014 and continuing through May 2017, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991. Simply put, Anderson stole over $1.3 million from his employer. During the approximately 33 month scheme, Anderson spent funds stolen from Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP to support a lavish lifestyle. Anderson fraudulently obtained an average of over $86,000 per month. Among other things, these expenses included $451,683 in total cash withdrawals and $958,091 in credit card and debit card charges.
The United States Postal Inspection Service, Fort Worth investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #Three Plead Guilty to $29 Million Bank Fraud SchemeRead the Press Release
DALLAS — Three defendants charged with offenses stemming from their roles in a six year bank fraud scheme that caused $29,000,000 in fraudulent funding of loans, credit lines, and/or credit cards, have pleaded guilty to their respective roles in the scheme, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Yesterday, the lead defendant, Eddie Contreraz, 48, of Frisco, Texas, pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver to one count of bank fraud. The maximum penalty for that offense is 30 years in federal prison, a $1 million fine and restitution. Sentencing is set for June 11, 2018.
Last week, co-defendants Stephanie Loraine Contreraz, 27, of Frisco, Texas, and Abraham Valdez, 53, of Frisco, Texas, each pleaded guilty to one count of conspiracy to commit bank fraud. The maximum penalty for that offense is 5 years in federal prison, a $250,000 fine and restitution.
All three defendants will remain on bond pending sentencing. Later this month, three additional defendants charged in the same case are also scheduled to plead guilty to one count of conspiracy to commit bank fraud. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the factual resume filed in the case, from January 2011 through March 2016, Contreraz was the owner and operator of Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG assisted its clients with credit repair and obtaining 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.
Beginning in about 2011, according to the factual resume, Contreraz produced and used many fraudulent documents to obtain loan approvals. Contreraz created consistently high quality fraudulent documents that Contreraz knew banks and other lending institutions accepted as valid and genuine documents. Contreraz and his employees then electronically transmitted these fraudulent documents to lenders.
During the period from about January 2011 through March 2016, approximately 95 percent or more of PMG’s clients obtained funding while using false and fictitious documents. Contreraz normally met with the clients and reviewed the information in their loan applications. Some clients did not have jobs, some did not have the necessary documents that banks required in the loan applications, and some did not have high enough income levels to qualify for a loan. When a client had such issues that might prevent loan approval by the bank, Contreraz told these clients that their loan would not be approved unless the client/borrower was willing to submit false information to the bank. False information provided included, inflated false income figures; false representations that the loan applicant's position was the manager of a company; false and fraudulent corroborating pay stubs, W- 2 tax documents, and/or utility bills.
Contreraz caused PMG employees Stephanie Contreraz, Abraham Valdez, Bryce Armijo, and Elizabeth Flint to use false financial information when clients applied for loans and credit cards over the telephone and the internet. These four codefendants worked with clients to insure that the clients reported the agreed-upon false information. These defendants also escorted clients to obtain the maximum number of loan approvals in a short period of time on the same day. The employees would take clients to meet with specific lender representatives that Contreraz already had established a relationship with and who agreed to help PMG clients.
Contreraz admitted that he caused all six of his co-defendant employees to assist borrowers fraudulently obtain at least 2,300 loans, credit lines, and/or credit cards from at least ten FDIC insured banks and at least another 140 loans, credit lines, and/or credit cards from three non-FDIC insured consumer lenders. During this period, all seven defendants participated in this bank fraud scheme that resulted in the fraudulent funding of loans, credit lines, and/or credit cards in the total amount of at least $29,000,000.
The Federal Bureau of Investigation, Fort Worth Division is investigating this fraud. Assistant U.S. Attorney David Jarvis is prosecuting.
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Mesquite Man Sentenced to 96 Months in Federal Prison for Possession of a FirearmRead the Press Release
DALLAS — Luis Baeza Caro, 33, of Mesquite, Texas, was sentenced Monday by U.S. District Judge David C. Godbey to 96 months in federal prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Caro pleaded guilty in November 2017 to one count of possession of a firearm by a convicted felon. He has been in custody since his arrest in May 2017.
According to information provided at the sentencing hearing, on November 3, 2016, law enforcement were summoned to Caro’s residence after they received complaints of gunshots being fired in the backyard. Caro, a multi-convicted felon and gang member, was arrested and the police recovered three firearms and marijuana from his residence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Mesquite Police Department. Assistant U.S. Attorneys Gary Tromblay and Mark Penley prosecuted.
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River Oaks Man Sentenced to Lengthy Sentence for Child Pornography ChargesRead the Press Release
FORT WORTH, Texas — Timothy Paul Malone, 39, of River Oaks, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 90 years in federal prison for child pornography offenses, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Malone pleaded guilty in November 2017 to two counts of sexual exploitation of children and one count of attempted sexual exploitation of children. Judge O’Connor sentenced Malone to 360 months for each of the three counts, to run consecutively. Malone has been in custody since the time of indictment in September 2017.
According to documents filed in the case, Malone persuaded and enticed two minor children in Watauga and Haslet, Texas to engage in sexually explicit conduct for the purpose of producing a video. Malone also attempted to use another minor child to create a video of the minor engaged in sexually explicit conduct.
In January 2017, law enforcement conducted a search warrant, according to plea documents, at Malone’s residence and seized a number of electronic devices. An examination of the devices revealed a number of child pornography videos and images including those of the minors previously mentioned.
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.”
River Oaks Police Department, Tarrant County District Attorney’s Digital Forensics Unit, and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem prosecuted.
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Two Men Convicted Following Trial Related to Extortion/Kidnapping PlotRead the Press Release
Fort Worth, Texas – Following a trial before U.S. District Judge Reed O’Connor, two men have been convicted for their role in an extortion and kidnapping scheme that occurred in Fort Worth in October 2017, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Nygul Anderson, 19, and Albert Gonzalez, 18, were each convicted of one count of a conspiracy to use an interstate facility to commit a travel act violation. Currently, they each face a maximum penalty of five years in prison and a fine of $250,000. Judge O’Connor reserved ruling on the two remaining counts, following the one-day bench trial.
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 next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same victim received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017.
On October 13, 2017, the kidnappers in Mexico and the victim agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location.
Shortly thereafter, four individuals – Anderson, Gonzalez, Fernando Cabrera (who previously pled guilty), and a 17 year-old minor – were arrested as they attempted to collect the ransom money.
During trial, the government proved that these four individuals believed that they were collecting $20,000 in unlawful proceeds. The four conspirators had met in McAllen, Texas, and then drove to Houston, then to Dallas, and then to Fort Worth in an attempt to collect the money. These four conspirators communicated with other conspirators in Mexico during the trip about the location of the money pick, the amount of money to be retrieved, and precautions that should be taken to avoid detection.
The FBI and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe prosecuted.
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Heroin and Methamphetamine Dealers Sentenced in Wichita FallsRead the Press Release
WICHITA FALLS —Darrell Ellington, 58, and Craig Lain, 56, of Wichita Falls, Texas, were sentenced on February 26, 2018, before U.S. District Judge Reed O’Connor, following their guilty pleas to their roles in a conspiracy to distribute heroin and methamphetamine in the Wichita Falls, Texas, area, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Ellington and Lain were sentenced to 100 months and 14 months in federal prison, respectively. The following co-defendants previously pleaded guilty to their roles and were sentenced by Judge O’Connor in December 2017:
Eric Lee Portier, 37, 188 months
Michael Brooks, 50, 120 months
Crystal Pond, 34, 107 months
Jon Alan Brooks, 54, 105 months
Mario Daniel Rodriguez, 26, 70 months
David Standridge, 52, 51 months
Bryan Tresenriter, 38, 46 months
Jaci Lea Carter, 28, 24 months
According to plea documents filed in the case, the defendants conspired with each other and others to obtain heroin and/or methamphetamine in the Dallas, Texas, area, and transport it back to Wichita Falls for distribution. Portier also pled guilty and was sentenced for being a felon in possession of a firearm during the time of the conspiracy.
The Wichita County District Attorney’s Office Drug Enforcement Division, the Texas Department of Public Safety Criminal Investigation Division, and the Wichita County Sheriff’s Office investigated the case with assistance from the United States Marshal Service, Decatur Police Department, Bridgeport Police Department, and Wichita Falls Police Department. Assistant U.S. Attorney Myria Boehm prosecuted.
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Mexican Citizen Sentenced to 216 Months for Money LaunderingRead the Press Release
DALLAS — Marisol Carmona Arreola Avalos, 43, a citizen of Mexico, was sentenced this morning before U.S. District Judge David C. Godbey to 216 months in federal prison following her guilty plea in June 2017 to one count of conspiracy to launder monetary instruments, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Avalos’ husband, Jose Apolinar Arreola Avalos, pleaded guilty in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance and was sentenced by Judge Godbey in October 2017 to 324 months in federal prison.
According to the plea agreement factual resume, from September 25, 2015 and continuing through March 18, 2016, Marisol and Jose Avalos cooked and cleaned methamphetamine obtained from Mexico at a Post Oak Road residence in Wilmer, Texas. In order to maximize the amount of money that was being made through the sale of the methamphetamine they cooked and cleaned the methamphetamine so that it would look as white and clean as possible. Marisol and Jose Avalos were paid by co-defendant, Domingo Arreola Avalos, for their work.
Marisol Avalos was provided with drug proceeds to purchase acetone, strainers, and materials to store the methamphetamine so that, once it was cleaned, it could be sold to other people in Texas and other parts of the United States. Marisol Avalos used some of the drug proceeds to pay phone bills, propane gas bills, and electric bills. The gas and electric bills were paid to maintain the house and area where the methamphetamine was cooked. The phone bill was paid so that she and Jose Avalos could communicate with other codefendants and drug couriers who were dropping off the liquid methamphetamine to be cleaned.
On March 18, 2016, according to the plea agreement factual resume, the Dallas Police Department executed a search warrant at the residence of Marisol and Jose Avalos. As a result of the search, agents seized approximately 172 kilograms of a combination of crystal and liquid methamphetamine, firearms, and several thousand dollars in United States Currency.
Marisol Avalos agreed to forfeit 2 firearms, $20,055 in US Currency and $274,469 in U.S. Currency seized from Domingo Arreola Avalos.
The FBI investigated the case, with assistance from the Dallas Police Department and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney George Leal.
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Federal Jury Convicts Dallas Man of Bankruptcy FraudRead the Press Release
DALLAS - On Wednesday, Gary Beach, 66, of Dallas, Texas, was convicted of four bankruptcy related felony counts following a seven-day trial before U.S. District Judge David Godbey. The announcement was made by Tanya K. Pierce, Acting United States Attorney for the Northern District of Texas.
According to evidence presented at trial, Beach obtained a $857,500 home and tried to hide $15,000 in monthly payments before he filed for bankruptcy protection from an $812,000 debt created by a lawsuit that Beach brought and lost.
Specifically, following an $812,000 loss in a civil trial in Harris County, Texas, Beach used a trust fund created by his father to hide payments that he was receiving for continuing to work in the oil and gas industry. Beach signed an agreement with Black Horse Resources (owned by his brother-in law in Utah) to perform consulting work in the development of an oil field. This participation agreement obligated Black Horse to pay a $15,000 monthly management fee for the services. However, the agreement purported to have Beach performing the services on behalf of his father’s Beach 2010 Trust. As the sole trustees and beneficiaries of the trust, Beach and his son had complete control over the money and it was channeled to pay Beach’s living expenses of nearly $10,000 a month. Three months later, Beach formed Beach Petroleum, LLC, with himself as sole manager. That same day, Beach had the trust transfer its interest in the participation agreement to Beach Petroleum, so that all future $15,000 monthly consulting fee payments could be made to Beach Petroleum. As sole manager of Beach Petroleum, Beach had direct control over the $15,000 payments.
Before Beach filed for bankruptcy, Black Horse paid $120,000 in consulting fees to either Beach directly or to Beach indirectly through payments to Beach Petroleum. The payments continued and reached $210,000 before Beach’s last deposition. Beach did not disclose any of this money until he was confronted with documentary proof of their existence under cross-examination during a bankruptcy deposition. Even then, the payments continued and approached half a million dollars.
Three days before Beach filed for bankruptcy protection, he also used the trust to purchase a residence in Highland Park, Texas for $857,500. Additional monies were then spent on improvements to the house until it was worth almost $1 million dollars.
The United States Trustee’s Office referred Beach’s false statements to the United States Attorney’s Office. After an investigation and trial, Beach was convicted of three separate counts of the felony offense of Making False Statements Under Penalty of Perjury for certain bankruptcy documents that he filed omitting the $15,000 payments. Beach was also convicted of Making a False Oath for giving intentionally false testimony about the payments from Black Horse Resources during one of his bankruptcy depositions.
For each count of conviction, Beach faces a maximum penalty of 5 years in federal prison and a $250,000 fine. Beach will remain on bond pending sentencing, which is set for June 4, 2018.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorneys, David Jarvis and Walt Junker.
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Erin Nealy Cox is Administered Oath of Office as United States Attorney for the Northern District of TexasRead the Press Release
At an investiture ceremony held this afternoon, Chief Judge Barbara M.G. Lynn of the U.S. District Court for the Northern District of Texas administered the Oath of Office for United States Attorney to Erin Nealy Cox.
Today’s formal ceremony, over which Chief Judge Lynn presided, was attended by hundreds of family members, friends and colleagues, as well as federal, state, and local dignitaries. Guest speakers included Chief Judge Barbara M.G. Lynn and Judge Jane J. Boyle of the U.S. District Court for the Northern District of Texas, and Rachel Brand, former Associate Attorney General for the U.S. Department of Justice. Remarks were also given by U.S. Senator John Cornyn and U.S. Senator Ted Cruz. The invocation was given by Father Arthur Unachukwu and the benediction was given by Cate Cox, the daughter of U.S. Attorney Nealy Cox.
Other honored guests attending included former White House Counsel Harriet Miers, Chancellor Kent Hance, as well as, former United States Attorneys Paul Coggins, John Parker, Jim Jacks, Richard Roper, Richard Stephens, Jim Rolfe, and Matthew Orwig.
United States Attorney Nealy Cox was nominated by President Donald Trump on September 22, 2017 and confirmed by the U.S. Senate on November 9, 2017.
Ms. Nealy Cox, a Mississippi native, most recently worked as a Senior Advisor at McKinsey & Co. in the cybersecurity and risk practice. She also served on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as chief of staff and senior counsel to the Assistant Attorney General in the Office of Legal Policy. From 2008 to 2016, Ms. Nealy Cox was a member of the executive leadership team at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox ultimately lead the firm’s global incident response business, the unit responsible for assisting and supporting private sector corporations investigate complex computer intrusions. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the United States Court of Appeals for the Fifth Circuit, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas.
As U.S. Attorney, Ms. Nealy Cox is the top-ranking federal law enforcement official in the Northern District of Texas, which includes Dallas, Fort Worth, Lubbock and Amarillo. She oversees a staff of 215 employees, including 100 attorneys and a similar number of non-attorney support personnel.
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Hutchins Man Arrested for the Murder of a U.S. Postal Service EmployeeRead the Press Release
DALLAS — Following a collaborative effort by the Dallas Police Department and United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation, Donnie Arlondo Ferrell, 25, of Hutchins, Texas, is in federal custody on a federal criminal complaint for the February 19, 2018 murder of a United States Postal Service employee. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Ferrell is charged with one count of murder of an officer or employee of the United States or of any agency in any branch of the United States government, while such officer or employee was engaged in or on the account of the performance of official duties. Ferrell will make his initial appearance today before U.S. Magistrate Judge Rebecca Rutherford.
“While our family of federal employees is saddened by the tragic loss of one of our own, I am proud of the cooperative effort by our federal and local law enforcement partners to solve this heinous crime, especially the United States Postal Inspection Service and the Dallas Police Department,” said U.S. Attorney Nealy Cox. “With this arrest, we take a crucial step towards ensuring that the person allegedly responsible for this senseless murder is brought to justice.”
“On behalf of the U.S. Postal Inspection Service, I would like to extend our deepest sympathy to the Mosby family for the tragic loss of their loved one,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division, U.S Postal Inspection Service. “The cooperation among federal and local law enforcement agencies in this matter is a prime example of how we work best when we work together. I would like to thank the dedicated Postal Inspectors and staff as well as the Dallas Police Department, our federal partners, and U.S. Attorney Erin Nealy Cox and her staff for their dedication and partnership in seeing this case brought to prosecution.”
According to the affidavit filed with the criminal complaint, on February 19, 2018, shortly after 2:00 a.m., an United States Postal Service (“USPS”) employee left the Dallas Main Post Office in a USPS box truck. Minutes later, at least three gunshots were fired at the USPS employee and his truck. One of the shots fatally struck him in his head.
On the morning of February 21, 2018, two individuals visited the FBI’s office in Fort Worth, Texas, and stated that they had information related to the killing.
According to interviews of the two individuals, on the night of February 18, 2018, they met two other individuals, including Ferrell, at a restaurant in Dallas, Texas. Later that night, after several stops, all four of these individuals left a pool hall in Dallas at approximately 1:30 a.m. in the early morning of February 19, 2018. Ferrell was sitting in the front passenger seat of the vehicle.
According to additional information provided during the interview, the driver of the vehicle began driving erratically and, at one point, was right behind a large USPS truck. The driver attempted to drive the vehicle around the USPS truck by passing it on the truck’s left hand side. Moments later, Ferrell fired several shots from a handgun in the direction of the USPS truck. The occupants of the vehicle observed smoke and sparks coming from the truck and the truck eventually crashing into the barrier. One of the occupants asked Ferrell why he had shot the gun toward the truck and Ferrell responded that the driver of the USPS truck had made a hand gesture towards their vehicle and that angered him.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The penalty for the offense as charged is any terms of years or for life and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorneys P.J. Meitl, Keith Robinson, Nicole Dana, Errin Martin, and Brian Portugal.
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University of North Texas Health Science Center to Pay $13 Million to Settle Claims Related to Federal GrantsRead the Press Release
DALLAS - The University of North Texas Health Science Center (UNTHSC) has agreed to pay the United States $13,073,000.00 to settle claims that it inaccurately measured, tracked and paid researchers for effort spent on certain NIH-sponsored research grants, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
UNTHSC is a health-related institution of the University of North Texas System and is a recipient of National Institutes of Health (NIH) Federal research grant funding. The settlement results from a self-disclosure by UNTHSC to the United States that from January 2011 through February 2016, UNTHSC failed to ensure that its time and effort reports related to certain federally-funded grants were accurately and timely certified.
UNTHSC, as a recipient of NIH grant funds, is responsible for accurately reporting and certifying time and effort spent on these grants. Under these obligations, UNTHSC was required to demonstrate accuracy through records that accurately reflect the work performed and an appropriate system of internal controls. UNTHSC failed to meet these requirements, and as a result, received payments for inaccurately and untimely time and effort certifications and received salary payments when the correlating payments did not match the accompanying time and effort reports. The United States contends that this conduct resulted in false claims being submitted to the government. UNTHSC fully cooperated in the investigative and settlement process.
The investigation was conducted by Health and Human Services Office of Inspector General and the United States Attorney’s Office for the Northern District of Texas. Assistant U.S. Attorney Lindsey Beran handled this matter on behalf of the United States.
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Richardson Man Indicted for Offenses Related to His Support of ISISRead the Press Release
DALLAS — A federal grand jury in Fort Worth returned a superseding indictment this week, charging Said Azzam Mohamad Rahim, 41, of Richardson, Texas, with seven counts related to a terrorism investigation, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas and Eric Jackson, Special Agent in Charge of the Dallas Field Office of the FBI.
The indictment supersedes an earlier indictment returned in the case. Rahim is charged with six counts of false statements to a federal agency and one count of attempting to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS).
Rahim was arrested in March 2017 on a related criminal complaint and will remain in custody pending trial. The maximum statutory penalty for each false statement count is eight years in federal prison, a period of supervised release, and a $250,000 fine. Rahim faces not more than 20 years in federal prison and a possible fine for attempting to provide material support to a designated foreign terrorist organization.
“Our highest priority is to pursue justice against those who seek to harm our country and our citizens,” said U.S. Attorney Erin Nealy Cox. “I appreciate the outstanding work by the Dallas FBI and the support of the Department’s National Security Division.”
The indictment alleges that Rahim made a number of false statements to federal law enforcement on March 5, 2017 related to his support for ISIS.. The indictment also alleges, beginning in October 2014 and continuing through March 2017, Rahim attempted to provide material support or resources, including services and personnel, to ISIS.
The Federal Bureau of Investigation is responsible for this investigation, specifically its Joint Terrorism Task Force which includes Richardson Police Department, Dallas Police Department, Department of Homeland Security, Department of State Diplomatic Security Service, and the Federal Air Marshal Service. Assistant United States Attorney Errin Martin is prosecuting the case with assistance from Taryn Meeks with the Department of Justice National Security Division’s Counterterrorism Section.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors
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Oklahoma City Man Sentenced for His Role in the Robbery of Haltom’s JewelersRead the Press Release
FORT WORTH — Garland Gilmore Lenoir III, 52, of Oklahoma City, Oklahoma, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve a total of 221 months in federal prison, following his guilty plea in October 2017 to his role in a conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Lenoir pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. He has been in custody since his arrest in July 2017.
Co-defendants, Melvin Lewis Andrews and Willie Thompson Jr. previously pleaded guilty to their roles and were sentenced by Judge O’Connor to 188 and 262 months in federal prison, respectively.
According to plea documents filed in the case, on October 3, 2014, the defendants traveled to Haltom’s Jewelers in a stolen vehicle and entered the store wearing masks and carrying handguns and hammers. They smashed the display cases with the hammers and stole merchandise, to include jewelry and watches.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Fort Worth Man Sentenced to 25 Years in Federal Prison for Breaking into Pharmacies and Stealing Controlled SubstancesRead the Press Release
FORT WORTH, Texas — Dion Clark, 36, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge John McBryde to 25 years in federal prison, following his guilty plea in August 2017 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Co-defendant’s Darrien Jefferson, aka “Smoke,” Nicholas Evans, aka “Nico,” and Kenneth Sauls, aka “Smurf,” were charged separately and previously sentenced by U.S. District judge Reed O’Connor.
According to the factual resumes filed in the case, on April 9, 2016, Clark, Evans, Jefferson, and Sauls entered into an agreement to commit a robbery at the Walgreens Pharmacy located at 833 South Wilshire Blvd., Burleson, Texas. Clark waited in the vehicle as the get-a-way driver while Evans, Jefferson and Sauls entered the Walgreens, brandished firearms and “zip” tied the victims’ hands and feet. Collectively the group stole narcotics, cash, cigarettes, and approximately 150 booklets of stamps.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Fahey prosecuted.
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Former Ellis County Sherriff’s Office Employee Sentenced to 40 Months in Federal PrisonRead the Press Release
DALLAS — Thomas Glen Smith, 50, of Hamilton, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 40 months in federal prison, following his guilty plea in August 2017 to one count of possession or sale of stolen firearms, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Philip Gary Slaughter, 42, was charged in a separate but related case and also pleaded guilty to his role. Slaughter was sentenced to 15 months in federal prison by U.S. District Judge Sidney A. Fitzwater.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff’s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey, Joseph Magliolo, and Errin Martin prosecuted.
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Dallas Attorney Admits to Running Marriage Fraud SchemeRead the Press Release
DALLAS — Bilal Ahmed Khaleeq, 47, a Dallas attorney, appeared before U.S. Magistrate Judge David L. Horan yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Khaleeq will remain on supervised release pending sentencing, which is set for June 4, 2018. Co-defendant Amna Cheema, 37, a Pakistani national, previously pleaded guilty to her role in the scheme and was sentenced to time served.
According to the plea agreement and 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 co-defendant, Amna 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. Co-defendant 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.
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Two Violent YNB Stretch Gang Members Admit to Drug and Firearm ChargesRead the Press Release
DALLAS — Kris Landon Green, aka “#5,” 20, and Marcus Jackson, aka “Marty-Mar,” 23, both of Dallas, Texas, pleaded guilty yesterday before U.S. District Magistrate Judge Rebecca Rutherford to their role in a drug distribution group that operated within an area referred to as the “2600 Money Block” (4500 block of Maple Avenue in Dallas, Texas), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas
Green, a member of the Dallas–based violent criminal street gang known as “YNB Stretchgang,” pleaded guilty to one count of conspiracy to distribute a Schedule II controlled substance (cocaine base) and one count of possession of a firearm by a user of a controlled substance. Green faces not less than five years or more than forty years in federal prison and a $5,000,000 fine on the conspiracy count and not more than 10 years in federal prison and a $250,000 fine for the firearms count. Green will remain in custody pending sentencing.
Jackson, pleaded guilty to one count of distribution of a Schedule II controlled substance (cocaine base). Jackson faces up to twenty years in federal prison and a $1,000,000 fine. Jackson will remain in custody pending sentencing.
“Gangs, such as YNB Stretchgang, that spread illegal drugs and wage violence in our community will be held accountable by the Department of Justice,” said U.S. Attorney Nealy Cox. “I commend the many law enforcement officers efforts who have dedicated enormous amounts of time and effort investigating and prosecuting this case.”
A thirty-three count superseding indictment was returned in December 2017 charging fifteen defendants, including Greene and Jackson. The superseding indictment alleges that beginning in January 2016, the defendants used an area in Dallas referred to as “2600 Money Block” to cut, package and distribute cocaine, crack cocaine, marijuana, methamphetamine and ecstasy/OxyContin pills to numerous customers. The proceeds from the sale of drugs were sometimes used to produce music videos glorifying acts of violence and promoting the lifestyle of “YNB Stretchgang” members and associates. Those videos were often uploaded to YouTube or shared through social media.
According to the plea agreement factual resumes filed in Green’s and Jackson’s case, both defendants admit that beginning in March 2016, they were members of “YNB Stretchgang.” On multiple occasions during 2016 and 2017, Green, Jackson and other “YNB Stretchgang” members and associates produced and appeared in music videos glorifying acts of violence and promoting the lifestyle of “YNB Stretchgang” members. Green and Jackson distributed controlled substances including cocaine base and marijuana as a means to make money within the 4500 block of Maple Avenue in Dallas, Texas.
The Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, and Dallas Police Department investigated the case. The case is being prosecuted by Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert.
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Two Men Sentenced to Lengthy Prison Sentences for Their Roles in a Methamphetamine Distribution ConspiracyRead the Press Release
AMARILLO, Texas — Miguel Angel Bravo-Farias, 41, an illegal immigrant, and Hector Terrazas, 25, of Amarillo, Texas, were sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 180 months and 156 months in federal prison, respectively, for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Both defendants pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. They have both been in custody since their arrest in June 2017 on a related federal criminal complaint.
Co-defendant Rogelio Xochitl Amparan, 29, pleaded guilty to his role in the conspiracy and was sentenced to 189 months in federal prison in December 2017.
According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.
During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.
A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, Potter County Sheriff’s Office, Texas Department of Public Safety and Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell prosecuted.
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Amarillo Man Convicted on Drug and Firearm Charges Sentenced to Life in Federal PrisonRead the Press Release
AMARILLO — Moises Jimenez, 39, of Amarillo, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to life in federal prison. Jimenez was convicted of felony drug and firearm offenses in August 2017, following a four-day jury trial. The announcement was made by U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
Jimenez was convicted of one count of distribution and possession with intent to distribute cocaine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Fitzwater sentenced Jimenez to 240 months for the distribution of cocaine count, 60 months for the possession of a firearm count and life in federal prison without the possibility for parole for the distribution and possession of 500 grams or more of methamphetamine.
Jimenez has been in custody since the time of his arrest in December 2016.
The government presented evidence at trial that on January 20, 2015, the Amarillo Police Department executed a search warrant at Moises Jimenez’s apartment. A search of the apartment yielded one kilogram of methamphetamine, almost 300 grams of cocaine, a Lorcin, .25 caliber pistol, approximately $22,000 in cash, and drug trafficking paraphernalia. During post-arrest interviews with a detective of the Amarillo Police Department, Jimenez admitted to possessing the controlled substances and firearm. He also admitted that he had delivered 50 pounds of methamphetamine less than a week before officers executed the search warrant. A search of Jimenez’s cell phones yielded text messages consistent with drug trafficking. Further, recorded telephone calls made by Jimenez while he was in jail corroborated his involvement in drug trafficking.
The Amarillo Police Department investigated the case with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorneys Russell Lorfing, Sean Long, and Sean Taylor prosecuted the case.
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Farmer Branch Man Sentenced to Serve a Total of 128 Months in Federal Prison on Drug ChargesRead the Press Release
DALLAS — Jose Humberto Solis, 39, of Farmers Branch, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to serve a total of 128 months in federal prison following his guilty pleas in January 2016 and September 2017 to drug offenses as charged in two Northern District of Texas cases, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In one case, Solis pleaded guilty to one count of possession with intent to distribute a Schedule I controlled substance (heroin). He received 128 months on that drug conviction.
In the subsequent case, Solis pleaded guilty to one count of conspiracy to distribute a Schedule I controlled substance (heroin) and one count of conspiracy to commit money laundering and was sentenced to 128 months in federal prison. That sentence will run concurrently to the first sentence imposed.
In the first case, between August 31, 2015 and September 1, 2015, Solis possessed and agreed to sell kilogram quantities of heroin. Specifically, on September 1, 2015, Solis traveled to a Target store located in Farmers Branch, Texas, with the specific intent to distribute one kilogram of heroin. After arriving at the Target, Solis was detained by law enforcement agents and the one kilogram of heroin was seized from his vehicle.
According to the plea agreement factual resume filed in the subsequent case, in 2013, agents with the Drug Enforcement Administration began an investigation into heroin sales in the Ninth Ward of New Orleans, Louisiana. Solis was identified as facilitating the distribution of heroin in the Ninth Ward of New Orleans by supplying heroin he obtained in Dallas, Texas.
On December 19, 2014, a Louisiana State Police Trooper observed a white Honda Civic travelling on Interstate 10 in Jefferson Parish, Louisiana. The Trooper observed the vehicle’s driver swerving in and out of his lane and onto the shoulder of the freeway. The Trooper pulled the vehicle over for illegal use of traffic lanes. Solis was identified as the passenger of the vehicle. The trooper observed both the driver and Solis appearing very nervous. Based on his observations, the Trooper believed that the occupants may be engaged in illegal activity. Solis refused to give consent to search and a K-9 unit was requested. The K-9 alerted to narcotics in the passenger compartment. A search of the vehicle revealed approximately one-half kilogram of heroin in a Jack-in-the-Box food bag sitting on the front passenger side floorboard of the vehicle.
The case was investigated by the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
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Two Houston Men Sentenced for Their Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Michael Cornelious, 27, and Larry Solomon, 43, both of Houston, Texas, were sentenced this week by U.S. District Judge Ed Kinkeade to lengthy prison sentences for their role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Cornelious pleaded guilty in October 2017 to one count of conspiracy to interfere with commerce by robbery. Judge Kinkeade sentenced Cornelious to 150 months in federal prison and ordered him to pay $370,718.72 in restitution. Solomon pleaded guilty in June 2017 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Solomon was sentenced to 130 months in federal prison and also ordered to pay $370,718.72 in restitution.
Cornelious and Solomon were charged along with ten other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, Dominique Pearson, Hilton Murdock Aitch, Irving Tyrone Flanagan, Terrence Lynn Thompson, Anthony Ray Turner, Jr, Treveon Dominique Anderson, Xavier Rashad Ross, Joshua Deunte Caldwell and Vanlisa Scott were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. On October 12, 2017, Jimmy Hatchett was charged for the same robbery. Out of the thirteen, eleven have pleaded guilty and two are set for trial on January 29, 2018.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing longsleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Pearson and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Keith Robinson and John de la Garza were in charge of the prosecution.
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Northern District of Texas U.S. Attorney’s Office Collects $350,706,916.75 in Civil and Criminal Actions for U.S. Taxpayers and Crime Victims in Fiscal Year 2017Read the Press Release
DALLAS - U.S. Attorney Erin Nealy Cox announced today that the Northern District of Texas collected $350,706,916.75 in criminal and civil actions in Fiscal Year 2017. Of this amount, $322,529,436.78 was collected in criminal actions and $28,177,479.97 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect another $2,668,204.90 in cases pursued jointly with these offices. Of this amount, $101,752.75 was collected in criminal actions and $2,566,452.15 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
“The message in these numbers should be clear,” said U.S. Attorney Nealy Cox. “This office will vigorously pursue all available enforcement remedies to recover assets for victims of crime and the federal treasury. It continues to be a critical aspect of our mission to pursue Justice on behalf of the citizens of the United States.”
Substantial collections in FY 2017 in the Northern District of Texas included:
- $287 million fine paid in the US v. ZTE Corporation terrorism financing case
- $16.3 million in forfeited assets restored to restitution to dozens of victims of wire fraud and money laundering in US v. Jeffrey David Gunselman
- $12.2 million settlement with International Tutoring Services, LLC et al., resolving allegations of improper kickbacks in association with healthcare claims
- $8.45 million settlement with MB2 Dental resolving allegations of submission of false claims associated with dental services
- $7.4 million in restitution in US v. Richard Ferdinand Toussaint, Jr. for health care fraud
- $1.8 million to dozens of oil and gas investor victims in US v. Brian Polito
- $900,000 in civil damages for disabled workers in the US v. Kenneth Henry and Hill Country Farms forced labor case
- $700,500 in restitution to victims of insurance fraud in US v. Vincent Bazemore
- $645,000 in restitution to a victim of bank fraud in US v. Nick Daryanani
- $415,000 in restitution to a victim of embezzlement in US v. Pamela and Richard Abeyta
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Northern District of Texas, working with partner agencies and divisions, collected $6,578,012 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Motley County High School Teacher Sentenced for the Enticement of a Sixteen Year-Old StudentRead the Press Release
LUBBOCK — Shonna Lynn Calaway, 48, of Matador, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison for having a sexual relationship with a sixteen year-old student, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Calaway pleaded guilty in October 2017 to one count of enticement of a minor. She has been in custody since September 2017.
According to the plea agreement factual resume filed in the case, during the 2016-2017 school year, Calaway was employed as a teacher at Motley County High School. In December 2016, Calaway used the Snapchat application to communicate with a sixteen year-old sophomore, John Doe, at Motley County High School. Calaway sent John Doe a message asking him if he wanted to “hang out,” followed by sexually explicit photos.
Shortly after the Snapchat exchange, Calaway drove to a residence in Roaring Springs, Texas, and picked up John Doe. She drove him to a somewhat secluded scenic location near Roaring Springs and engaged in sexual conduct with John Doe.
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 case was investigated by the Federal Bureau of Investigation, the Lamb County Sheriff’s Office, Motley County Sheriff’s Office, Floyd County District Attorney’s Office and Lamb County District Attorney’s Office. Assistant U.S. Attorney Jeffrey Haag was in charge of the prosecution.
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Two Men Sentenced to Lengthy Sentences for Child Pornography Charges Involving Two Minor Victims, One a Three-Year-Old ChildRead the Press Release
DALLAS — Javier Giovanni Araujo, 34, of Austin, Texas, and Garrett Alexander Mack, 29, of Dallas, Texas, were sentenced today by Chief U.S. District Judge Barbara M. G. Lynn to lengthy prison sentences for child pornography offenses, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Araujo previously pled guilty to one count of conspiracy to produce child pornography and one count of transportation of child pornography. Chief Judge Lynn sentenced Araujo to 40 years in federal prison and a lifetime of supervised release.
Mack previously pleaded guilty to one count of conspiracy to produce child pornography. Chief Judge Lynn sentenced Mack to 30 years in federal prison and a lifetime of supervised release.
According to the factual resumes filed in the case and information presented at the sentencing hearing, from at least September 26, 2016 through October 7, 2016, Araujo and Mack discussed sexually abusing children and exchanged photos and videos of child pornography. Araujo produced videos and images of child pornography by using a three-year-old boy to which he had access. Araujo and Mack discussed the logistics of how they could gain access to this boy and the ways that Araujo could sexually abuse him. Araujo then sent some of those child pornography images and videos involving the boy to other men on the internet, including to Mack.
According to information presented at the sentencing hearing, Araujo, pretending to be a church youth group leader, gained access to another minor child and coerced him into engaging in sexual acts with Araujo. Araujo recorded this sexual abuse and sent at least one child pornography video of the abuse to Mack.
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 Federal Bureau of Investigation, the Dallas Police Department, and the Austin Police Department investigated. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Red Oak Man Sentenced to 170 Months on Child Pornography ChargeRead the Press Release
DALLAS — Noah Ray Evans, 35, of Red Oak, Texas, was sentenced this week before U.S. District Judge Jane J. Boyle to 170 months in federal prison on a federal child pornography charge, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Evans pleaded guilty to one count of transportation and shipping child pornography in October 2017.
According to the plea agreement factual resume filed in the case, on January 29, 2017, Evans used his computer to send files of a prepubescent minor engaged in sexually explicit conduct.
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.”
Homeland Secutiry Investigations and Ozark, Arkansas Police Department investigated the case. Assistant U.S. Attorney Shane Read prosecuted.
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Greenville Man Sentenced to 84 Months in Federal Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
DALLAS —Julio Cesar Torres, 52, of Greenville, Texas was sentenced today by U.S. District Judge Sam A. Lindsay to 84 months in federal prison, following his guilty plea in September 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to the plea agreement factual resume filed in the case, on March 17, 2017, Torres made arrangements to sell multiple kilograms of cocaine for $26,500 per kilogram. Torres obtained the cocaine from codefendants Miguel Angel Almazan-Loya and Jose Juan Ortiz-Pacheco at an apartment complex on Ferguson Road in Dallas.
Officers subsequently arrived with a search warrant and searched the apartment. The search revealed approximately three kilograms of cocaine wrapped in plastic wrap and black colored tape contained within a yellow bag further contained within a cardboard box located in the residence.
The Drug Enforcement Administration investigated the case with assistance from the Dallas County Sheriff’s Department and the City of Lewisville Police Department. Assistant U.S. Attorney George Leal was in charge of the prosecution.
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Nine Indicted by Federal Grand Jury for Multiple Violent Robberies in North TexasRead the Press Release
DALLAS — A federal grand jury returned an indictment last week charging nine Houston residents with offenses related to eight violent robberies in North Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, the nine-count indictment, unsealed yesterday afternoon, charges, Jarvis Broussard, aka “Koppo,” 29; Trey Nathaniel Dickerson, 25; Christian Demond Gilbert, aka “Go Getta,” 28; Randy Lamark Hammond, 23; John Christopher Jones, aka “2tall,” 27; Brandon Chermaine Mallet, aka “Wookie,” 31; Chrisheena Ladale Milburn, aka “Beanz,” 27; Fernando Rafael Taylor, 29; and Jonathan Walker, aka “Johnathan Walker,” 31, with one count each of conspiracy to interfere with commerce by robbery and at least one additional count of interference with commerce by robbery.
The defendants were arrested today and will remain in custody pending their initial appearances.
The indictment arises out of a series of “jugging” offenses in the Dallas area. “Jugging” is a term informally used to refer to crimes that involve surveilling banks for potential targets suspected of having significant sums of cash and following the targeted victims to other locations where they are robbed. The indictment alleges that, on February 4, 2016 and continuing until at least July 22, 2017, the defendants conspired together to commit several robberies to obtain U.S. currency. The defendants discussed and planned the surveillance and selection of individuals for robbery; the acquisition of property for use in committing robbery; the timing and means of transportation to commit robbery; the roles of participants during the preparation for and commission of robbery; the division of proceeds obtained from robbery; and plans to avoid detection and apprehension by law enforcement.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences 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 (if any), the defendant’s role in the offense and the characteristics of the violation.
The investigation is being conducted by the FBI, with assistance from the Dallas, Garland, Irving, and Richardson Police Departments. Assistant U.S. Attorneys Brian McKay and Sid Mody are in charge of the prosecution.
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Mexican Citizen who was in the U.S. Illegally Sentenced to 210 Months in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Rosalio Ramos Tapia, aka “Rosalio Ramos,” “Chale,” and “Mocho,” 43, a citizen of Mexico and in the United States illegally, was sentenced earlier this week before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Tapia was sentenced to 210 months in federal prison following his guilty plea in October 2016 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 50 grams or more of methamphetamine. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Tapia has been in custody since his arrest in July 2016.
Tapia was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, fourteen have pleaded guilty, seven have been sentenced and two are awaiting trial. Four defendants remain fugitives.
According to documents filed in the case, between September 25, 2015 through March 18, 2016, Tapia and his coconspirators conspired to distribute methamphetamine and on several occasions, discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
Specifically, Tapia used coded language to purchase multiple kilograms of methamphetamine so that he could distribute the methamphetamine to other people. Once Tapia sold the kilograms of methamphetamine he provided drug proceeds to the supplier of the methamphetamine.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Lubbock Man Involved in Furanyl Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargeRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Steven Lawrence Forcum, 32, appeared yesterday before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a large-scale furanyl fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Forcum pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Forcum’s guilty plea.
Co-defendants, Krisandrea Monee Dobbs, 31; Peyton Cleveland Wilson, 27; and Ashlyn Paige Utley, 23, previously pleaded guilty to their role in the conspiracy and are awaiting sentencing.
Law enforcement first learned of Forcum’s involvement in distributing the potent synthetic opioid when Forcum voluntarily made a police report that someone had stolen his supply of fentanyl.
According to the plea agreement factual resume in Forcum’s case, between 2015 and October 2016, Forcum used his email account to contact numerous international companies to purchase large quantities of furanyl fentanyl and other controlled substances. In corresponding with these international companies, Forcum would boast that he sells a kilogram of furanyl fentanyl every two months. He also bragged that fentanyl and synthetic fentanyl were his “hottest sellers for years.” Forcum admitted that he routinely supplied Wilson and Dobbs with furanyl fentanyl for distribution in the Lubbock, Texas, area.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance. Fentanyl is potentially lethal, even at very low levels. Ingestion of small dosages—the equivalent of a grain of salt—can be fatal. Fentanyl can also be absorbed through the skin and accidental inhalation of airborne powder can occur.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The Drug Enforcement Administration and the Lubbock Police Department are in charge of the investigation.
Assistant United States Attorney Russell Lorfing is in charge of the prosecution.
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Former Dallas County Supervision Officer Sentenced to Federal Prison for Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, was sentenced yesterday before U.S. District Judge Jane J. Boyle to 37 months in federal prison and ordered to pay $2,900.00 in restitution, following his guilty plea in May 2017 to one count of use of interstate facility to commit travel act. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made today’s announcement.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office investigated the case. Assistant U.S. Attorneys John Kull and Kate Rumsey prosecuted.
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Lubbock Man Sentenced to 262 Months in Federal Prison for Distributing CocaineRead the Press Release
LUBBOCK, Texas — Gregory Jerome Mitchell, aka “Jimmy Jombo Kalu,” 33, was sentenced on January 19, 2018 by Senior U.S. District Judge Sam R. Cummings to 262 months in federal prison for distributing cocaine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Mitchell was charged in August 2017 with multiple counts of distribution and possession with intent to distribute cocaine base and methamphetamine. Mitchell pleaded guilty in September 2017 to one count of distribution or possession with intent to distribute 28 grams or more of cocaine base. He has been in custody since his arrest in August 2017.
According to the plea documents filed in the case, on May 24, 2017, Mitchell arranged to sell six ounces of crack cocaine in exchange for $3,600.00. Mitchell was ultimately held responsible for approximately 550 grams of cocaine base and approximately four kilograms of methamphetamine.
The case was investigated by the Drug Enforcement Administration and Lubbock County Sheriff’s Office. Assistant U.S. Attorney Sean Long prosecuted.
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Five Members of International Organized Criminal Enterprise Indicted in More Than $9.5 Million Counterfeit Documents Fraud SchemeRead the Press Release
WASHINGTON – Five of six alleged members of an international criminal conspiracy were arrested and appeared before the Court in Dallas, Texas on charges related to their alleged roles in an international fraud scheme that has used counterfeit driver’s licenses and counterfeit money orders to obtain monies from victim bank accounts around the United States.
The arrests and charges were 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; and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service, Criminal Investigations Group.
John Lewis Davis II, 43, and Rasheed Wriden, 34, both of Dallas; Valandus Javon Gibson, 28 of Chicago, Illinois; Ralph Deon Taylor, 47, of Long Beach, California; and Craig Allen, 70, of Phoenix, Arizona, were all charged in a 14-count indictment unsealed on Thursday.
Davis, Gibson, Taylor, Allen, and Wriden are charged with conspiracy to commit wire fraud and mail fraud, and conspiracy to launder monetary instruments.
Davis, Gibson, and Allen, are charged with conspiracy to commit bank fraud.
Davis, Allen, and Wriden are charged with mail fraud.
Davis, Taylor, Allen, and Wriden are charged with possession and transmission of counterfeit money orders.
Davis, Taylor, and Allen are charged with transferring counterfeit driver’s licenses.
The indictment alleges that from about April 2013 to December 2017, the defendants conspired with each other and individuals in other countries including Nigeria to obtain money through various acts of fraud. This included posting misleading advertisements of detailed descriptions of job opportunities, such as for mystery shopper positions, that were not valid job opportunities. The defendants are alleged to have conspired to pose as employers of these fraudulent job opportunities to lure victims, who resided throughout the United States and Canada.
The defendants are alleged to have conspired to obtain counterfeited driver’s licenses and money orders, which were shipped into the United States. The counterfeited money orders were shipped to co-conspirators, who then mailed them to unwitting victims who were under the mistaken belief that they were fulfilling the job duties of mystery shopper positions. The victims were instructed to deposit the counterfeit money orders and securities, mailed as payment for the mystery shopper jobs, into personal bank accounts and send a portion of the monies via money transfer businesses, to individuals known and unknown in the United States and elsewhere. After the unwitting victims cashed the counterfeited money orders and wired money to co-conspirators, the co-conspirators are alleged to have retrieved the wire transfers with the use of a counterfeited driver’s license.
According to the indictment, the purpose of the conspiracy was to fraudulently obtain monies from counterfeited U.S. Postal money orders and counterfeit checks, by sending and receiving them through the U.S. Postal Service and commercial carriers to other individuals, who would then negotiate the money orders and checks and wire the funds to the defendants using money service businesses.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Rowlett Police Department.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David Jarvis from the U.S. Attorney’s Office for the Northern District of Texas – Dallas Division.
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Five Members of International Organized Criminal Enterprise Indicted in More Than $9.5 Million Counterfeit Documents Fraud SchemeRead the Press Release
Five of six alleged members of an international criminal conspiracy were arrested and appeared before the Court in Dallas, Texas on charges related to their alleged roles in an international fraud scheme that has used counterfeit driver’s licenses and counterfeit money orders to obtain monies from victim bank accounts around the United States.
The arrests and charges were 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; and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service, Criminal Investigations Group.
John Lewis Davis II, 43, and Rasheed Wriden, 34, both of Dallas; Valandus Javon Gibson, 28 of Chicago, Illinois; Ralph Deon Taylor, 47, of Long Beach, California; and Craig Allen, 70, of Phoenix, Arizona, were all charged in a 14-count indictment unsealed on Thursday.
Davis, Gibson, Taylor, Allen, and Wriden are charged with conspiracy to commit wire fraud and mail fraud, and conspiracy to launder monetary instruments.
Davis, Gibson, and Allen, are charged with conspiracy to commit bank fraud.
Davis, Allen, and Wriden are charged with mail fraud.
Davis, Taylor, Allen, and Wriden are charged with possession and transmission of counterfeit money orders.
Davis, Taylor, and Allen are charged with transferring counterfeit driver’s licenses.
The indictment alleges that from about April 2013 to December 2017, the defendants conspired with each other and individuals in other countries including Nigeria to obtain money through various acts of fraud. This included posting misleading advertisements of detailed descriptions of job opportunities, such as for mystery shopper positions, that were not valid job opportunities. The defendants are alleged to have conspired to pose as employers of these fraudulent job opportunities to lure victims, who resided throughout the United States and Canada.
The defendants are alleged to have conspired to obtain counterfeited driver’s licenses and money orders, which were shipped into the United States. The counterfeited money orders were shipped to co-conspirators, who then mailed them to unwitting victims who were under the mistaken belief that they were fulfilling the job duties of mystery shopper positions. The victims were instructed to deposit the counterfeit money orders and securities, mailed as payment for the mystery shopper jobs, into personal bank accounts and send a portion of the monies via money transfer businesses, to individuals known and unknown in the United States and elsewhere. After the unwitting victims cashed the counterfeited money orders and wired money to co-conspirators, the co-conspirators are alleged to have retrieved the wire transfers with the use of a counterfeited driver’s license.
According to the indictment, the purpose of the conspiracy was to fraudulently obtain monies from counterfeited U.S. Postal money orders and counterfeit checks, by sending and receiving them through the U.S. Postal Service and commercial carriers to other individuals, who would then negotiate the money orders and checks and wire the funds to the defendants using money service businesses.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Rowlett Police Department.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David Jarvis from the U.S. Attorney’s Office for the Northern District of Texas – Dallas Division.
Laboratory and Owner of Lab Management Services Company to Pay $3.77 Million to Resolve Kickback and Medical Necessity ClaimsRead the Press Release
DALLAS - Primex Clinical Laboratories, LLC has agreed to pay $3,500,000 to resolve allegations that it violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for patient pharmacogenetic testing. In a related settlement, Mitch Edland, the Chief Executive Officer and owner of DNA Stat, LLC, has agreed to pay $270,000 to resolve similar allegations. Both settlements were announced today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Primex Clinical Laboratories, LLC (Primex), is a licensed clinical laboratory providing clinical diagnostic testing services, including pharmacogenetic testing. DNA Stat, LLC (DNA Stat) was a laboratory management company that employed sales representatives and licensed pharmacists. Primex and DNA Stat entered into a services agreement related to pharmacogenetic testing services.
The settlement resolves allegations brought by two whistleblowers that Primex submitted claims to Medicare that were rendered false as a result of Primex and DNA Stat providing kickbacks from June 2013 through March 2016. The relators alleged several kickback schemes, including a scheme where the defendants created the appearance of paying physicians to provide clinical study data for a Primex-sponsored study related to pharmacogenetic testing when, in fact, the physicians were being paid for referring patients for the testing. The relators also alleged a scheme where the defendants provided physicians with in-office medical technicians to do work related to the Primex-sponsored study in an effort to induce those physicians to order pharmacogenetic tests from Primex. Finally, the relators alleged that the pharmacogenetic tests were not medically necessary. The United States also contends that DNA Stat’s agreement with Primex as well as its agreements with its sales representatives took into account the volume and value of referrals physicians made to Primex for pharmacogenetic tests when calculating compensation.
The settlement with Primex resolves the allegations centered on providing in-office medical technicians to physicians; entering into improper sales and services agreements; and submitting claims for pharmacogenetic tests that were not medically necessary. Mr. Edland’s settlement resolves all allegations against him contained in the lawsuit. Neither party admitted any wrongdoing or liability.
The qui tam, or whistleblower, lawsuit was brought by relators Don Pyburn and David Choate, former sales representatives for DNA Stat. The qui tam or whistleblower provisions of the FCA authorize private parties to sue for fraud on behalf of the United States and share in the recovery. The relators will receive $754,000.
The investigation was conducted by Health and Human Services Office of Inspector General and the FBI. The case was handled by Assistant U.S. Attorneys Dawn Whalen Theiss and Lindsey Beran.
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Haltom’s Jeweler Robber Sentenced to 262 Months in Federal PrisonRead the Press Release
FORT WORTH — Willie Thompson, Jr., 53, of Oklahoma City, Oklahoma, was sentenced this week by U.S. District Judge Reed C. O’Connor to serve a total of 262 months in federal prison, following his guilty plea in August 2017 to his role in the conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Thompson pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. He has been in custody since April 2017 on a related federal complaint.
According to plea documents filed in the case, on October 3, 2014, Thompson, along with co-defendants Garland Gilmore Lenoir III, Melvin Lewis Andrews, Tony Eugene Gabriel and Kim Yvette Brown, traveled to Haltom’s Jewelers in a stolen vehicle. Andrews, Lenoir, Thompson and Gabriel, entered the store wearing masks and carrying handguns and hammers. Thompson held a store employee in a back room at gunpoint while Andrews, Lenoir, and Gabriel smashed the display cases with hammers and stole merchandise, to include jewelry and watches.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Federal Grand Jury Indicts Nova Charter School Chief Executive Officer and a Dallas Man for Conspiracy to Commit Wire and Mail FraudRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last month, and unsealed earlier this month, charges Donna H. Woods, 63, of DeSoto, Texas, and Donatus I. Anyanwu, 59, of Dallas, Texas, with offenses related to a scheme to defraud a program used by needy schools to obtain affordable telecommunications and internet access, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Specifically, Woods is charged with one count of conspiracy to commit mail fraud and wire fraud, and three counts of wire fraud. Anyanwu is charged with one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and two counts of wire fraud. Both defendants will remain on bond pending trial, which is set for March 5, 2018.
The indictment alleges that Woods, the Chief Executive Officer of Nova Charter School (Nova), and Anyanwu, the owner of ADI Engineering, Inc. (ADI), devised a scheme to defraud the Federal Communications Commission’s “E-Rate” program, which helps schools and libraries in the United States obtain affordable telecommunications and internet access. Woods used her position at Nova to select ADI as Nova’s E-Rate service provider, a bid worth approximately $478,000. In return for ADl’s selection as Nova’s E-Rate service provider, Woods received a kickback of at least $5,000 from Anyanwu.
The indictment further alleges that Woods and Anyanwu perpetuated the fraud by falsifying forms indicating that Nova had complied with E-Rate program rules and that no kickbacks were paid. Over the course of the conspiracy, ADI was paid approximately $337,951.06 in E-Rate discount funds that it was not entitled to receive.
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 convicted, however, the defendants’ sentences 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 (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Assistant U.S. Attorneys Russell Fusco and Marcus Busch are prosecuting the case.
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Georgia Man Sentenced to 135 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
AMARILLO, Texas — An Atlanta, Georgia, man, Jaime Bowling, 28, was sentenced this week by U.S. District Judge Sidney A. Fitzwater to 135 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.
Bowling has been in custody since his arrest in February 2017 on a related federal criminal complaint. He pleaded guilty in August 2016 to one count of possession with intent to distribute 500 grams or more of methamphetamine.
According to the plea agreement factual resume filed in the case, on February 10, 2017, law enforcement stopped a vehicle for speeding. The driver was identified as co-defendant Enrique R. Stoddard and the passenger was identified as Bowling. The Trooper requested a canine unit perform an air sniff test on the vehicle after noticing indicators of possible criminal activity.
Law enforcement located two plastic antifreeze bottles, containing approximately seven kilograms of liquid methamphetamine, concealed inside a piece of luggage in the trunk of the vehicle. There was liquid and dried crystalized methamphetamine on the exterior of the bottle. There were other items of luggage used to keep the bottles upright, including a black bag belonging to Bowling.
Bowling admitted that he and Stoddard had flown to Los Angeles, California and rented a car on February 8, 2017. On February 9, 2017, Bowling picked up liquid methamphetamine and was supposed to transport that liquid methamphetamine to another state.
The Drug Enforcement Administration and Texas Department of Public Safety investigated the case. Assistant U.S. Attorney Anna Bell was in charge of the prosecution.
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Phoenix Man Sentenced to 70 Months in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Hiban Molina Camacho, 28, of Phoenix, Arizona, was sentenced this week before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Camacho was sentenced to 70 months in federal prison following his guilty plea in May 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance.
Camacho was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, eighteen have pleaded guilty, five have been sentenced and three are awaiting trial.
According to the plea agreement factual resume filed in the case, on May 23, 2015, Camacho engaged in a series of conversations to request a kilogram of methamphetamine.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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