Northern District of Texas
Press releases recorded for this federal judicial district.
San Angelo Man Sentenced to 121 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
LUBBOCK, Texas — A 45-year-old San Angelo, Texas, man, Michael Doerr, who pleaded guilty in August 2017 to one count of receipt of a visual depiction of a minor engaging in sexually explicit conduct, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Judge Cummings remanded Doerr into immediate custody to begin serving his sentence.
According to plea documents filed in the case, on August 25, 2016, Doerr used computer hard disk drives to save images and videos depicting minors engaged in sexually explicit conduct. Doerr received the material over the Internet and saved the material on the hard disk drives at his residence.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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 Department of Homeland Security, Homeland Security Investigations, the Texas Department of Public Safety, and the San Angelo Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
# # #
Lubbock Man Sentenced for Production of Child PornographyRead the Press Release
LUBBOCK, Texas — Tarvinn Djuan Williams, 29, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in August 2017 to one count of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Williams has been in custody since his arrest in June 2017.
According to plea documents filed in the case, on March 26, 2017, Williams made contact through Facebook messaging with a 16-year-old minor female, Jane Doe l, for the purpose of convincing her to engage in sexually explicit conduct with him. Williams concealed his true identity by representing himself to be “Samantha Pena,” a female alias that he created for the purpose of recruiting females to engage in sex acts with Williams.
Williams, representing himself to be “Samantha Pena,” convinced Jane Doe l to meet him to engage in sexual intercourse with him and represented that “Samantha Pena” would pay Jane Doe 1 to engage in the sex acts with Williams. Jane Doe 1 met with Williams at least three times and engaged in sexual intercourse with him.
In the course of the communications between Williams, using the identity of “Samantha Pena,” and Jane Doe 1, Williams asked Jane Doe l to take sexually explicit pictures and send them to Pena. “Samantha Pena” told Jane Doe 1 that she wouldn’t be required to have sex with Williams if she would send the sexually explicit material. Jane Doe 1 complied with the requests and took and sent pictures and one video. “Samantha Pena” made repeated promises to Jane Doe l that she would be paid, but “Samantha Pena” never paid Jane Doe 1.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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 investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
# # #
Erin Nealy Cox Sworn in as United States AttorneyRead the Press Release
DALLAS – Erin Nealy Cox has taken the oath of office to become the United States Attorney for the Northern District of Texas. Ms. Nealy Cox was nominated by President Donald Trump on September 22, 2017 and confirmed by the U.S. Senate on November 9, 2017. She took the oath of office from U.S. District Judge Jane J. Boyle. She succeeds John Parker who has been serving as the United States Attorney since December 2014.
“I am honored to return to the United States Attorney’s Office and I am looking forward to working with the great people here, our many law enforcement partners, and all those in the community who have a commitment to the pursuit of justice,” said U.S. Attorney Nealy Cox.
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. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
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.
Ms. Nealy Cox received her J.D., magna cum laude, from Southern Methodist University Dedman School of Law and her B.B.A. in finance from the McCombs School of Business at the University of Texas at Austin. She is a member of the Texas and New York Bar Associations.
As she took on her new responsibilities, U.S. Attorney Nealy Cox thanked Mr. Parker for his many years of public service with the U.S. Attorney’s Office and his commitment to justice over the last three years as he served as the United States Attorney.
# # #
Fourteen with ties to violent YNB Stretch Gang indicted for drug and firearm offensesRead the Press Release
DALLAS — Fourteen defendants have been charged in a federal indictment, unsealed yesterday, with felony offenses stemming from their role in a Dallas–based criminal street gang known as “YNB Stretch Gang” and a drug distribution group known as “2600 Money Block,” announced U.S. Attorney John Parker of the Northern District of Texas.
“These violent, drug-dealing gangs should be on notice,” said U.S. Attorney Parker. “We’re going after them wherever they are.”
Ten defendants, mostly from Dallas, were arrested earlier last week and one is in custody on state charges. Those arrested made their initial appearances in federal court and were detained. Three remain fugitives.
In connection with the takedown, law enforcement seized quantities of cocaine, crack cocaine, PCP, prescription pills, marijuana and multiple firearms, including an assault rifle.
The 26-count indictment charges the following: Nykees Earl Campbell, aka “#1,” “NaNa,” “Ny-Nizzle,” 19; Avery Wayne Davis, aka “AD,” 36; Demond Lynn, aka “Slime,” 36; Kearwon Dmargo Magee, 23; Rodney Eugene Roquemore, aka “Turbo,” 31; Lawrence Williams, aka “One Eye”; Kris Landon Greene, aka “#5,” 20; Bryson Deontae Bright, 24; Ralph Earl Campbell III, 22; Garry Dewayne Newton, aka “#4,” 20; Stacy Moore, aka “Jay,” 23; Marcus Jackson, aka “Marty-Mar,” 23; Mitchell Holmes; Cedric Charles Witcher, 22.
The indictment alleges, 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 used to produce music videos glorifying acts of violence and promoting the lifestyle of YNB Stretch Gang members and associates.
Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including multiple firearms.
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.
This indictment is the result of an investigation by the Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, Dallas Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert.
# # #
Federal Criminal Complaint Charges Two Men with Witness TamperingRead the Press Release
FORT WORTH, Texas — Bruce Trenshel Davis, aka “Wheatie,” 25, of Shreveport, Louisiana and Brandon Ray Austin, aka “Pep,” 31, of Fort Worth, Texas, appeared yesterday in federal court before U.S. Magistrate Judge Jeffrey L. Cureton, on a federal criminal complaint stemming from their attempt to threaten witnesses who were cooperating with law enforcement in the prosecution of a child sex trafficking organization, announced U.S. Attorney John Parker of the Northern District of Texas.
The complaint charges both Davis and Austin with one count of attempting to obstruct or interfere with enforcement and one count of tampering with a witness, victim, or informant. Magistrate Judge Cureton ordered both defendants to remain in custody pending further court hearings.
“Protecting victims and witnesses is one of the most important jobs of law enforcement,” said U.S. Attorney Parker. “We will aggressively prosecute those who attempt to threaten, intimidate, or do physical harm against those who cooperate and work with law enforcement. That commitment is never more steadfast than in cases such as this, involving violent threats against minor female victims who have been sexually exploited.”
In March of 2017, the Fort Worth Police Department’s VICE Unit conducted a recovery operation in response to a lead sent from the National Center for Missing and Exploited Children (NCMEC) in reference to a suspected victim of Child Sex Trafficking. Fort Worth VICE Unit located and utilized a Backpage.com ad containing photographs of a minor female that advertised commercial sex acts. As a result of the operation, the minor female was recovered. Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located. The operation resulted in eight men being arrested on sex trafficking of children charges.
Demarcus Davis, Kentrell Davis, Pierre Lagrone, Herman Sanders and Reginald Smith were among the eight charged.
According to the affidavit filed with the complaint, on July 25, 2017, Bruce Davis, a relative of Demarcus Davis and Kentrell Davis, sent threatening text messages to Jane Doe 2, the 17-year-old female victim in the case mentioned above. Bruce Davis threatened physical harm to Jane Doe 2 and her family because he believed she was cooperating with law enforcement in the prosecution of Kentrell Davis and Demarcus Davis.
Another witness who cooperated with law enforcement and provided valuable evidence that detailed the size and scope of the same child sex trafficking organization received threats from Austin, according to the affidavit. Austin was friends with Lagrone, Sanders and Smith. On October 18 and 19, 2017 Austin sent text messages to the witness threatening her in relation to her cooperation in the prosecution of Lagrone, Sanders and Smith.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense is not more than 20 years in federal prison.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments are investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
# # #
River Oaks Man Admits to Felony Child Pornography ChargesRead the Press Release
FORT WORTH, Texas — Timothy Paul Malone, 39, of River Oaks, Texas, appeared this morning before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to three child pornography counts, announced John Parker, United States Attorney for the Northern District of Texas.
Malone pleaded guilty to two counts of sexual exploitation of children and one count of attempted sexual exploitation of children. Malone faces a maximum term of imprisonment of not less than 15 years and not more than 90 years, a total of $750,000 in fines and up to a lifetime of supervised release. Malone has been in custody since the time of indictment in September 2017. He is scheduled to be sentenced on March 5, 2018.
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 matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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 is in charge of the prosecution.
# # #
Two North Texas men sentenced for roles in a $6.4 million diamond investment fraud schemeRead the Press Release
DALLAS — Craig Allen Otteson, 65, of McKinney, Texas, and Jay Bruce Heimburger, 59, of Dallas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a diamond investment scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Otteson and Heimburger both pleaded guilty in July 2017 to one count of mail fraud. Judge Fitzwater sentenced Otteson to 121 months in federal prison and ordered him to pay $4,704,784 in restitution. Heimburger was sentenced to 97 months in federal prison and ordered him to pay $4,707,794 in restitution.
Co-defendant Christopher Arnold Jiongo, 57, of Houston, pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 21, 2017.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises. In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors. During the sentencing hearing, witnesses testified that in June 2011 Otteson and Heimburger caused letters to be sent to the Texas State Securities Board and to ASR which contained false statements.
This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas. These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas. Since 2013, as a result of the BFI, 23 defendants have been convicted and 2 defendants are pending trial.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Oklahoma City man sentenced to 188 months in federal prison for his role in the robbery of Haltom’s JewelersRead the Press Release
FORT WORTH — Melvin Lewis Andrews, 55, of Oklahoma City, Oklahoma, was sentenced this week by U.S. District Judge Reed C. O’Connor to serve 188 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 John Parker of the Northern District of Texas.
Andrews pleaded guilty to one count of interference with commerce by robbery. He has been in Federal custody since his arrest in March 2017.
According to plea documents filed in the case, on October 3, 2014, Andrews, along with co-defendants Garland Gilmore Lenoir III, Willie Thompson Jr., 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. Andrews, Lenoir, and Gabriel smashed the display cases with hammers and stole merchandise, to include jewelry and watches. After the robbery, Andrews was paid approximately $10,000 for his participation.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
# # #
Grand Jury indicts nine Bloods Street gang members for several violent robberiesRead the Press Release
DALLAS — A federal grand jury returned a eleven-count superseding indictment yesterday charging nine men with various violent offenses stemming from several armed robberies in North Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Yesterday’s indictment supersedes the August 2017 indictment by adding four defendants and additional robbery offenses. The following defendants, mostly from Cedar Hill, Texas, are charged with at least one count of interference with commerce by robbery:
Charles Lampkins, aka “K3” and “Kc,” 20
Justin Gilbert, aka “Slim,” 21
Jahad Givens, aka “Had,” 21
Terance Ross Johnson, aka “TJ,” 21
Jaala Dill, 19, of Dallas
Darius Devvion Hinton, aka “Stanka,” 20
Billterious Dominique Lewis, aka “Bill T,” 21
Xavion Mitchell George, 23
Joel Louis Davis, 20
The defendants are scheduled to be arraigned later next week.
According to documents filed in the case, between October 2016 and May 2017, the defendants, led by Lampkin, committed a series of at least seven and up to forty robberies at various motels, hotels, and other commercial establishments throughout the Dallas-Fort Worth metroplex. The robbery crew performed surveillance of victims and targeted locations and utilized firearms to intimidate their victims, often pointing guns at the heads of tellers and cashiers during the robberies.
The robbers often disguised themselves during the robberies by wearing dark clothes, hoodies, and other items meant to conceal their true identity, including a distinguishable fake blue beard connected to a stocking cap.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each interference with commerce by robbery count in the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Lampkins is also charged with one count of using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence. The firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigations, Plano Police Department, Carrollton Police Department, Addison Police Department, Farmers Branch Police Department, Grand Prairie Police Department, Arlington Police Department, Lewisville Police Department, Sulphur Springs Police Department, Dallas Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney P.J. Meitl in charge of the prosecution.
# # #
Cuban man sentenced for role in fraudulent bank card conspiracyRead the Press Release
DALLAS — Roberto Carlos Puebla Saavedra, 32, originally from Cuba, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison and ordered to pay $408,596.46 in restitution for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Saavedra pleaded guilty in June 2017 to one count of conspiracy to produce, use, or traffic a counterfeit access device. He has been in custody since the time of his arrest in July 2016.
According to documents filed in the case, from at least August 2014 through July 2016, Saavedra, along with his co-defendants, obtained lists of credit and debit card numbers belonging to other individuals online. They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
# # #
Burleson man sentenced on child pornography chargesRead the Press Release
DALLAS — Daryl Glenn Pawlak, 39, of Burleson, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, followed by a 15-year term of supervised release, for child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
A federal jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor. Following the verdict, Judge Fitzwater remanded Pawlak into custody.
“Contrary to their innocent-sounding names, websites like Playpen facilitate the sexual victimization of children with ruthless efficiency,” said U.S. Attorney Parker. “Posts on these websites are frequently categorized within forums and sub-forums according to the child’s age, gender, and type of sexual abuse inflicted upon them. Targeting these websites and those who run and use them is a critical part of protecting and rescuing these children.”
This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen. Playpen was dedicated to the advertisement and distribution of child pornography.
Pawlak was one of the individuals caught as a result of the FBI’s operation when he logged onto the website in March 2015 and clicked on a post, which caused a network investigative technique to be launched from the site onto his computer. Pawlak registered with the Playpen site in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.
The FBI spoke with Pawlak as a part of its investigation. Pawlak confessed that he had been using his work computers to look at child pornography. He told the FBI that he began looking at child pornography sometime in 2012, he used the Tor network to find child pornography, and estimated that he had spent, on average, approximately half an hour a week seeking out child pornography. Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old.
As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide. At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area. In addition, internationally, at least 296 sexually abused children internationally have been successfully identified or rescued as a result of the operation. This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI investigated this case. Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch prosecuted.
# # #
Swiss Citizen Serves 11 Months for Bankruptcy PerjuryRead the Press Release
DALLAS — Rudolf Suter, 67, formerly of Dallas, appeared in federal court yesterday before U.S. District Judge David C. Godbey and was sentenced to time served (nearly 11 months in federal custody) for committing perjury in a federal proceeding under oath. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Based on witness testimony at the sentencing hearing, Judge Godbey ordered Suter to appear on March 9, 2016 for a show cause hearing to determine if Suter should be held in contempt for violation of several court orders in Civil Case No. 3:11-CV-02559-N. Instead of appearing at the show cause hearing, Suter fled to Switzerland. On March 10, 2016, Judge Godbey held Suter in civil contempt of court and also ordered the issuance of a civil contempt arrest warrant.
In August and early September 2016, the United States Marshal Service (USMS) in Dallas had several contacts with Suter while he was in Switzerland. Despite repeated efforts by the USMS encouraging Suter to return to Dallas, fugitive Suter refused to voluntarily surrender.
Based on witness testimony at the sentencing hearing, fugitive Suter traveled to Canada on September 13, 2016 and testified at a civil deposition. In his sworn deposition testimony, Suter testified falsely under oath that he had “made arrangements” with the judge and caused the arrest warrant to be dismissed.
On December 11, 2016, Suter was arrested in New York City based on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States. On January 6, 2017, a criminal complaint was filed in Dallas. On January 17, 2017, Suter was ordered detained as a flight risk following a contested detention hearing. Suter has remained continuously in custody for nearly 11 months since his arrest.
According to the plea documents, on January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas. Suter concealed his true financial condition when he filed several bankruptcy related documents. In his plea documents, Suter admitted to making a false statement under penalty of perjury in his filed Statement of Financial Affairs, in which Suter concealed several banks accounts which he recently closed. Some of the concealed bank accounts were closed in December 2013, the month before he filed for bankruptcy. After remaining a fugitive outside the United States for approximately nine months, on December 11, 2016, Suter was arrested as he attempted to re-enter the U.S. at JFK International Airport in New York City.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Each felony indictment is the result of a bankruptcy criminal referral submitted to the United States Attorney’s Office by the United States Trustee’s Office in Dallas, Texas. As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.
The Internal Revenue Service Criminal Investigation was in charge of the investigation. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Former BOP Employee Sentenced for Engaging in Sexual Acts with an InmateRead the Press Release
FORT WORTH, Texas — Matthew McGaugh, 49, of Hensley, Arkansas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 12 months in federal prison following his guilty plea in July 2017 to an indictment charging one count of sexual abuse of a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
McGaugh, who is on bond, was ordered to surrender to the Bureau of Prisons on December 19, 2017.
According to documents filed in the case, on November 1, 2016, McGaugh, who was a Bureau of Prisons (BOP) Case Manager, engaged in multiple sexual acts with an inmate assigned to the BOP, Carswell Federal Medical Center in Fort Worth, Texas. At the time these sexual acts occurred, the inmate was under the supervisory authority of McGaugh.
The Department of Justice Office of the Inspector General investigated the case. Deputy Criminal Chief Assistant United States Attorney Alex Lewis prosecuted.
# # #
Dallas Woman Sentenced for Her Role in a “Foreclosure Rescue Scheme” That Exploited Vulnerable Homeowners Facing ForeclosureRead the Press Release
DALLAS — Christina Renee Caveny, 37, of Dallas, was sentenced today before U.S. District Judge David C. Godbey to 15 months in federal prison and ordered to pay $270,134.84 in restitution, following her guilty plea in June 2017 to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
A federal grand jury in Dallas returned an indictment in December 2016 charging Caveny and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, is awaiting trial. Richard Bruce Stevens, 51, of San Antonio, Texas, pleaded guilty and is scheduled to be sentenced on December 4, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, also pleaded guilty and was sentenced to 41 months in federal prison and ordered to pay $219,109 in restitution.
According to plea documents in Caveny’s case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Caveny and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Caveny and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. With the charges in this indictment, 26 defendants have been charged as part of that initiative. Nineteen have been convicted, one resulted in a mistrial, and six are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Methamphetamine Distributor Sentenced to 168 Months in Federal PrisonRead the Press Release
FORT WORTH — Carlos Cortinas, 39, of Arlington, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 168 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Cortinas and David Piper, Jr., 52, were convicted following a two-day jury trial in March 2017. Both defendants were convicted on one count of conspiracy to possess with intent to distribute methamphetamine. Piper was previously sentenced to 235 months in federal prison.
Co-conspirator Chadwick Hernandez, 32, pleaded guilty in February 2017 to the same offense and was sentenced to 60 months in federal prison.
The government presented evidence at trial that beginning in March 2015 until January 20, 2016 Piper and Cortinas possessed with the intent to distribute 500 grams or more of methamphetamine. Evidence elicited at trial showed that methamphetamine distributors from Arlington, including Cortinas, transported multiple pounds of methamphetamine to Piper for re-distribution of methamphetamine in Bolivar, Missouri.
DEA Fort Worth investigated with the assistance of DEA’s Springfield and Tulsa offices, Arlington Police Department, Fort Worth Police Department, North Richland Hills Police Department, Oklahoma DPS, and Polk County, Missouri Sheriff’s Office. Assistant U.S. Attorneys Aisha Saleem and Shawn Smith prosecuted.
# # #
DTO Leader Sentenced to 121 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Leopoldo Herrera-Gandara, aka “Polo,” 33 of Arch, New Mexico to 121 months in federal prison, following his guilty plea in August 2017 to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Herrera-Gandara and six defendants of a drug trafficking organization (DTO), mostly from the Lubbock, Texas, area, were arrested in May 2017 in a joint operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, Homeland Security Investigations, Immigration and Customs Enforcement, U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico.
Of the seven defendants who were indicted, five have been convicted and sentenced. The charges were dismissed against one of the defendants following a plea of guilty to related state charges and the remaining defendant. Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas, is scheduled to begin trial on December 4, 2017.
Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas, was sentenced to 135 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.
Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas, was sentenced to 97 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine.
Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas, was sentenced to 96 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine.
Nancy Cecilia Martinez, 37, of Levelland, Texas, was sentenced to 87 months in federal prison. She pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
# # #
Former Dallas Businessman Sentenced for Nearly $2 Million Bank FraudRead the Press Release
DALLAS — James Edward McIntire, 54, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn to 27 months in federal prison and ordered to pay $1,997,215 in restitution for bank fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
McIntire pleaded guilty in March 2016 to one count of a bank fraud scheme to defraud Opportunity Bank. Judge Lynn ordered him to surrender to the Bureau of Prisons on January 2, 2018.
According to documents filed in the case, McIntire founded the business, McIntire and Associates (MA). To support ongoing operations, MA often needed to obtain loans and/or lines of credit from banks or from some other funding source. MA would often provide security for the line or line of credit by using MA’s accounts receivable as collateral for the loan.
From approximately March 2008 through September 2009, McIntire ran a scheme to deceive and fraud Opportunity Bank of Richardson, Texas, in order to fraudulently obtain approval of a $2 million line of credit from the bank, using MA’s accounts receivables as security. When MA initially applied for the line of credit, McIntire falsely represented and fraudulently inflated the total amount of MA accounts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value.
In court filed documents, McIntire admitted that as part of the scheme to defraud, he fraudulently inflated the value of MA’s accounts receivables in order to have access to a higher line of credit than what Opportunity Bank would have approved had he disclosed the true value of MA’s accounts receivables. In addition to submitting a large number of false and fraudulent weekly and monthly accounts receivable schedules to Opportunity Bank, McIntire also created fictitious packing slips and invoices for MA products that were not actually shipped to the customer, which caused the dollar value of the MA accounts receivable to be falsely inflated. As part of the scheme to defraud, McIntire repeatedly submitted falsely inflated accounts receivable figures to Opportunity Bank over an 18 month period in order to continue to make draws on the line of credit.
McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Dallas Man Sentenced to 567 Months in Federal Prison for November 2015 Armed Assault on Federal OfficersRead the Press Release
DALLAS — Victor Manuel Solorzano, 32, of Dallas, was sentenced today before U.S. District Judge Sam A. Lindsay to 567 months in federal prison for the November 19, 2015 armed assault of two federal law enforcement officers in southwest Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
In April 2017, Solorzano was convicted, following a four-day trial, of one count of possession with intent to distribute methamphetamine, two counts of assault of a federal officer, and two counts of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence. Solorzano has been in custody since the time of his arrest in August 2016.
“This shocking example of cold-blooded violence in our neighborhoods and against our law enforcement officers is exactly why we will never stop fighting the fight, said USA Parker. Those who traffic in drugs bring nothing but misery and death to our communities and they must be stopped.”
Co-defendant Edgar Solorzano, 24, pleaded guilty in April 2017 to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence. Sentencing is set for November 20, 2017.
According to evidence presented at trial, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled for their lives.
Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time. Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a high-powered AR 15 pistol, confronted the officer in the street and began firing at the officer, striking him in the hand and foot. Edgar, meanwhile, was armed with a high-powered AK 47 pistol. The officer ran for his life as Victor and Edgar fired at him. The officer then got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away. The officer who installed the court-ordered tracking device sustained four nonfatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back. Miraculously, the officers were not severely injured or killed. In total, the Solorzano cousins fired at least 42 gunshots at the federal officers on a residential street, and their turbulent gunfire even struck other vehicles and a home situated on the street.
After the shooting, Edgar hid the AK 47 pistol he used in the attic of his residence and the AR 15 pistol used by Victor in a neighbor’s backyard. The police searched Edgar’s residence and found the pistol hidden in the attic. The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The police later found the pistol used by Victor in the neighbor’s backyard. The police also searched Victor’s residence and found a gallon-sized ziplock bag containing methamphetamine residue in his closet. A narcotics detective estimated that the bag had contained approximately one to two pounds of the drug. The police also found in Victor’s residence drug-cash and a variety of firearms and ammunition.
The Federal Bureau of Investigation, the Dallas Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Rachael Jones prosecuted.
# # #
North Texas Pill Mill Owner Sentenced for His Role in a Drug Distribution ConspiracyRead the Press Release
DALLAS — Stanley James, Jr., 57, of Dallas and Houston, was sentenced today by U.S. District Judge Jane J. Boyle to 60 months in federal prison, following his guilty plea in May 2016 to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
James pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone). He has been in custody since the time of his arrest in October 2015.
Co-defendant John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on March 8, 2018.
“These pill mills are a significant driver in the opioid crisis in this country and in north Texas,” said U.S. Attorney Parker. “They must be shut down and those running them must be held responsible.”
According to plea documents in the case, James and co-conspirators distributed more than 2,000,000 hydrocodone pills through medical clinics in Dallas, Texas and elsewhere. James owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice. The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that James owned, managed, and directed.
A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient. Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.
According to plea documents in the case, James and Ware owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas. James and Ware owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.
James operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone. The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients.
James took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. James attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who were willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorneys Myria Boehm, Mary Walters and Deputy Criminal Chief Assistant U.S. Attorney Nicholas Bunch prosecuted.
# # #
Three Sentenced for Roles in Conspiracy Involving Fraudulent Bank CardsRead the Press Release
DALLAS — Today, U.S. District Judge Sidney A. Fitzwater sentenced three defendants for their roles in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Elvis Johanny Ortiz Reyes, 34, from Nicaragua, was sentenced to 35 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants. He pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud.
Yaser Moreno, aka “Adrian Perez,” 27, from Cuba, was sentenced to 57 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants. He pleaded guilty in April 2017 to one count of conspiracy to commit access device fraud.
Norge Mayea, 45, also from Cuba, was sentenced to 36 months in federal prison and ordered to pay $44,497.70 in restitution, joint and severally with his codefendants. He pleaded guilty in July 2017 to one count of conspiracy to commit access device fraud.
A federal grand jury returned a 20-count indictment in August 2016 charging Reyes, Moreno and Mayea, along with Jesus Aldana Gutierrez, Roberto Carlos Puebla Saavedra, Ivania Ortiz, aka “Ivania Reyes” and “Lisset Oz,” and Yokasta Garcia, aka “Kathy Garcia,” for their roles in the scheme.
According to documents filed in the case, from at least August 2014 through July 2016, the defendants obtained lists of credit and debit card numbers belonging to other individuals online. They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
# # #
Last Defendant Sentenced in Health Care Fraud SchemeRead the Press Release
DALLAS — Cynthia Stiger, 52, of Dallas, Texas, who was convicted in April 2016 of one count of conspiracy to commit health care fraud, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 120 months in federal prison and ordered to pay $23,630,777.26 in restitution, joint and several with all codefendants to Medicare and Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lindsay ordered Stiger to report to the Bureau of Prisons on November 28, 2017.
“This office will continue to use the most sophisticated techniques available to aggressively prosecute those who, through their fraud, drive up the costs of health care to consumers and tax payers alike,” said U.S. Attorney Parker. “I applaud the tremendous cooperation among the investigative agencies that brought us to this point.”
The following defendants have also been sentenced for their role in the health care fraud scheme:
Jacques Roy, 420 months and $268,147,699.15 in restitution
Wilbert James Veasey, Jr., 120 months and $23 million in restitution
Cyprian Akamnonu, 120 months and $25 million in restitution
Patricia Akamnonu, 120 months and $25 million in restitution
Charity Eleda, 48 months and $397,294.51 in restitution
Teri Sivils, 3 years probation and $885,714.05 in restitution
The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled: Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.
As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services. Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates. Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary. Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy’s office and not properly reviewed by any physician.
Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary. That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing. This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.
Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary. Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries. Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.
The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies. Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys P.J. Meitl and Nicole Dana and First Assistant U.S. Attorney Chad Meacham prosecuted the case.
# # #
Five Chinese Citizens and Four Chinese Companies Indicted in Scheme to Sell Mislabeled Dietary SupplementsRead the Press Release
WASHINGTON — A Dallas, Texas, grand jury returned two indictments today against five Chinese citizens and four companies alleging fraud and other charges, the Justice Department announced. The charges relate to alleged sales of stimulants intended for inclusion in dietary supplements.
The indictments charge the defendants with participation in a scheme to produce and sell dietary supplements containing hidden synthetic stimulants, such as 2-amino-6-methylheptane (“DMHA”). The charges also involve alleged shipments of 1,3-dimethylamylamine (“DMAA”) and DMHA. DMAA, which is chemically similar to DMHA, has been linked to severe adverse events such as heart attacks and strokes.
The indictments allege that the defendants knew major American dietary supplement retailers would not carry supplements containing these stimulant ingredients. The indictments also allege the defendants agreed with a confidential government informant to either mislabel ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. None of the ingredients allegedly shipped during the undercover investigation were sold to consumers.
“It is unlawful for companies both outside and inside the United States to conceal questionable, dangerous, or illegal ingredients in dietary supplements sold to American consumers,” said Chad A. Readler, Acting Assistant Attorney General of the Department of Justice’s Civil Division. “These cases demonstrate the Department of Justice’s commitment to ensuring that dietary supplements are safe and accurately labeled.”
“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”
The first indictment charges Genabolix USA Inc., a Nevada corporation; Shanghai Yongyi Bioltechnology Ltd., a Chinese corporation; Hu Chang Chun (a.k.a. James Hu), 44, of Shanghai, China, the principal of Genabolix; Gao Mei Fang (a.k.a. Amy Gao), 41, of Shanghai, China, the supply chain manager for Genabolix; and Zhang Xiao Dong (a.k.a. Mark Zhang), 31, of Shanghai, China, the sales manager for Genabolix, with mail fraud. The indictment also charges Genabolix, Shanghai Yongyi, Hu, and Gao with introducing misbranded food into interstate commerce. In addition, the indictment charges Genabolix, Yongyi, and Gao with obstruction of an agency proceeding and smuggling.
A second indictment charges Shanghai Waseta International Trade Co. Ltd., a Chinese corporation; Max Pharmatech Inc., a California corporation; Xu Jia Bao (a.k.a. Fred Xu), 48, of Shanghai, China, the principal of Shanghai Waseta; and Li Ting Ting (a.k.a. Sunny Lee), 37, of Shanghai, China, the overseas sales manager for Shanghai Waseta, with wire fraud and with introducing misbranded food into interstate commerce. The indictment also charges Shanghai Waseta with smuggling.
Gao Mei Fang, Zhang Xiao Dong, and Xu Jia Bao were arrested in late September at a dietary supplement trade show in Las Vegas and remain in custody. A date for trial before the federal district court in Dallas has not yet been set. The remaining individual defendants are not believed to be in the United States.
“Few things are more important than ensuring the safety of what we put into our bodies,” said U.S. Attorney John Parker for the Northern District of Texas. “Those who deliberately mislead us on this critical issue will be prosecuted to the fullest extent of our laws.”
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
Upon conviction, the maximum statutory penalties for the individual defendants are 20 years’ imprisonment and a $250,000 fine for mail fraud or wire fraud; one year imprisonment and a $100,000 fine for the introduction of misbranded food into interstate commerce; three years’ imprisonment and a $250,000 fine for the introduction of misbranded food into interstate commerce with the intent to defraud or mislead; five years’ imprisonment and a $250,000 fine for obstruction of an agency proceeding; and 20 years’ imprisonment and a $250,000 fine for smuggling.
The FDA Office of Criminal Investigations-Dallas Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Rumsey and Errin Martin of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
# # #
Five Chinese Citizens and Four Chinese Companies Indicted in Scheme to Sell Mislabeled Dietary SupplementsRead the Press Release
A Dallas, Texas, grand jury returned two indictments today against five Chinese citizens and four companies alleging fraud and other charges, the Justice Department announced. The charges relate to alleged sales of stimulants intended for inclusion in dietary supplements.
The indictments charge the defendants with participation in a scheme to produce and sell dietary supplements containing hidden synthetic stimulants, such as 2-amino-6-methylheptane (“DMHA”). The charges also involve alleged shipments of 1,3-dimethylamylamine (“DMAA”) and DMHA. DMAA, which is chemically similar to DMHA, has been linked to severe adverse events such as heart attacks and strokes.
The indictments allege that the defendants knew major American dietary supplement retailers would not carry supplements containing these stimulant ingredients. The indictments also allege the defendants agreed with a confidential government informant to either mislabel ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. None of the ingredients allegedly shipped during the undercover investigation were sold to consumers.
“It is unlawful for companies both outside and inside the United States to conceal questionable, dangerous, or illegal ingredients in dietary supplements sold to American consumers,” said Chad A. Readler, Acting Assistant Attorney General of the Department of Justice’s Civil Division. “These cases demonstrate the Department of Justice’s commitment to ensuring that dietary supplements are safe and accurately labeled.”
“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”
The first indictment charges Genabolix USA Inc., a Nevada corporation; Shanghai Yongyi Bioltechnology Ltd., a Chinese corporation; Hu Chang Chun (a.k.a. James Hu), 44, of Shanghai, China, the principal of Genabolix; Gao Mei Fang (a.k.a. Amy Gao), 41, of Shanghai, China, the supply chain manager for Genabolix; and Zhang Xiao Dong (a.k.a. Mark Zhang), 31, of Shanghai, China, the sales manager for Genabolix, with mail fraud. The indictment also charges Genabolix, Shanghai Yongyi, Hu, and Gao with introducing misbranded food into interstate commerce. In addition, the indictment charges Genabolix, Yongyi, and Gao with obstruction of an agency proceeding and smuggling.
A second indictment charges Shanghai Waseta International Trade Co. Ltd., a Chinese corporation; Max Pharmatech Inc., a California corporation; Xu Jia Bao (a.k.a. Fred Xu), 48, of Shanghai, China, the principal of Shanghai Waseta; and Li Ting Ting (a.k.a. Sunny Lee), 37, of Shanghai, China, the overseas sales manager for Shanghai Waseta, with wire fraud and with introducing misbranded food into interstate commerce. The indictment also charges Shanghai Waseta with smuggling.
Gao Mei Fang, Zhang Xiao Dong, and Xu Jia Bao were arrested in late September at a dietary supplement trade show in Las Vegas and remain in custody. A date for trial before the federal district court in Dallas has not yet been set. The remaining individual defendants are not believed to be in the United States.
“Few things are more important than ensuring the safety of what we put into our bodies,” said U.S. Attorney John Parker for the Northern District of Texas. “Those who deliberately mislead us on this critical issue will be prosecuted to the fullest extent of our laws.”
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
Upon conviction, the maximum statutory penalties for the individual defendants are 20 years’ imprisonment and a $250,000 fine for mail fraud or wire fraud; one year imprisonment and a $100,000 fine for the introduction of misbranded food into interstate commerce; three years’ imprisonment and a $250,000 fine for the introduction of misbranded food into interstate commerce with the intent to defraud or mislead; five years’ imprisonment and a $250,000 fine for obstruction of an agency proceeding; and 20 years’ imprisonment and a $250,000 fine for smuggling.
The FDA Office of Criminal Investigations-Dallas Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Rumsey and Errin Martin of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
DALLAS – This Saturday, October 28, from 10 a.m. to 2 p.m. the federal Drug Enforcement Administration and its local law enforcement, community and tribal partners will give the public its 14th opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Making progress on the opioid crisis does not take a herculean effort on any one person’s part,” said U.S. Attorney Parker. “It takes each of us to do whatever we can, no matter how small it may see. This includes cleaning out unused prescriptions before they become part of the problem.”
Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
# # #
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which Deputy Commander Carothers was mortally wounded.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
“I’m delighted that the Attorney General chose to recognize the work of one of our outstanding prosecutors,” said U.S. Attorney Parker. “Mr. Meitl’s work in this case was nothing short of extraordinary and exemplifies the work that goes on in this office every day.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
Attorney General Sessions recognized Northern District of Texas Assistant U.S. Attorney P.J. Meitl for the prosecution of one the largest cases ever against the Aryan Brotherhood of Texas (ABT), which is considered a Tier One gang in the State of Texas. Mr. Meitl’s leadership in the ABT investigation was instrumental in the highly successful prosecution of dozens of members and associates of various white supremacy groups in North Texas. To date, 89 dangerous defendants are incarcerated for their involvement in a far-reaching drug trafficking conspiracy. Combined, the defendants had previously been convicted of 730 crimes that included murder, sexual assault, robbery, and other violent offenses.
# # #
Former Garland Independent School District Executive Director of Human Resources Sentenced in Conspiracy to Falsify Immigration DocumentsRead the Press Release
DALLAS — Victor Leos, 63, of Garland, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 24 months in federal prison and ordered to pay $317,482 in restitution for falsifying immigration documents, announced U.S. Attorney John Parker of the Northern District of Texas.
Leos pleaded guilty in May 2017 to one count of conspiracy to commit false statements in connection with immigration documents. Leos was ordered to surrender to the Bureau of Prisons on January 28, 2018.
“This school district human resources executive perpetrated a fraud on numerous overseas teachers, his school district and the U.S. government,” said Katrina W. Berger, special agent in charge of HSI Dallas. “He upended all these lives and perpetrated this fraud for the most selfish of reasons — personal profit. HSI will continue working with our law enforcement partners to identify and disrupt immigration benefit fraud and bring to justice those involved in these illegal schemes.”
“Today’s action shows that this former school official not only knowingly and willfully abused his position of trust for personal gain, but did so at the expense of the educational development of children. That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “Deservedly, Mr. Leos will be held accountable for cheating Garland students and taxpayers.”
According to plea documents, Leos was employed by Garland Independent School District (GISD), located in Garland, Texas from 1998 to 2013. Leos was responsible for recruiting teachers from Mexico, Central and South America, and the Philippines to fill open teaching positions at GISD. From around 2007 to around 2012, Leos engaged in a criminal conspiracy with outside recruiters to recruit and hire foreign teachers that GISD did not necessarily need. Leos benefitted by receiving kickbacks in the form of inflated fees to teach orientation classes, travel, and other forms of remuneration. After the foreign teachers were employed at GISD on H-1B temporary visas, Leos knew they were unlikely to qualify for Form 9089s (Applications for Permanent Employment Certification). To further the conspiracy, Leos knowingly signed and filed falsified Form 9089s with the Department of Labor (DOL) to sponsor the teachers for employment-based permanent resident applications.
Leos admitted that from August 27, 2012 to December 6, 2012, he signed and filed thirty-eight Form 9089s for GISD in which he knowingly made false statements. In each Form 9089, Leos certified that all U.S. workers who applied for the job opening were rejected for lawful jobrelated reasons when Leos knew this was not the case. To support these false statements, Leos created recruitment reports which contained additional false statements regarding the number of U.S. applicants for the open positions and the reasons for the rejection of the U.S. applicants. Leos had these recruitment reports submitted to DOL to support the falsified Form 9089s that were also submitted.
This was a joint investigation involving U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Department of Labor-Office of the Inspector General, the Department of Education-Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Russell Fusco was in charge of the prosecution, which was assisted by Assistant U.S. Attorney John Kull.
# # #
Azle Man Sentenced to 210 Months in Federal Prison for Distributing Child PornographyRead the Press Release
FORT WORTH, Texas — Jeremy Michael Matthews, 27, of Azle, Texas, was sentenced today by U.S. District Judge Terry R. Means to 210 months in federal prison, following his guilty plea in May 2017 to one count of distribution of a visual depiction of a minor engaged in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Matthews has been in custody since the date of his arrest in March 2017.
According to documents filed in the case, starting in early 2014, Matthews began receiving and sending images of child pornography through the Kik instant messaging application. On March 24, 2016 law enforcement executed a search warrant at Matthews’ residence and he admitted that he possessed child pornography on his cell phone. A review of Matthews’ cell phone revealed approximately 650 images of child pornography. Matthews’ computer contained approximately 982 images of child pornography.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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 Texas Rangers investigated the case. Assistant U.S. Attorney Megan Fahey was in charge of the prosecution.
# # #
U.S. Customs and Border Protection Officer and Two Others Sentenced for Roles in Marihuana Distribution ConspiracyRead the Press Release
AMARILLO, Texas — Today, Russell Tim Shen, 69, Andre Jorge Hernandez, 39, and Ernesto Esteve, 50, all from Miami, Florida, appeared before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a marihuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Shen, Hernandez, and Esteve were sentenced to 21 months’ custody, 15 months’ custody, and 3 years’ probation, respectively.
According to plea documents filed in the case, in December 2013, Esteve traveled from Florida to Colorado with Hernandez and purchased thousands of dollars’ worth of supplies and equipment used to grow and cultivate marihuana plants. In February 2014, Esteve’s credit card was used to purchase additional materials used for the growth and cultivation of marihuana plants.
On March 14, 2014, Esteve paid for one-way flights from Miami, Florida, to Denver, Colorado, for Hernandez and Shen, who was an officer with the U.S. Customs and Border Protection stationed in Miami, Florida. Shen and Hernandez rented a car in Denver, Colorado, which was due in Miami, Florida, on March 17, 2014.
On March 15, 2014, a Childress, Texas police officer pulled over a vehicle, driven by Shen, for following too closely. During the stop, Shen identified himself to the police officer as a federal law enforcement officer. The passenger in the vehicle was identified as Hernandez. Based on suspicious behavior, the Childress police officer asked for consent to search the vehicle. Shen refused to provide consent. So the police officer deployed his canine, who was already on the scene, to conduct a free-air sniff of the car. The police officer then informed Shen and Hernandez that he was going to search the car based on the canine’s alert. During the search, police found approximately 71 gross pounds of suspected marihuana in the trunk of the vehicle.
During an interview with law enforcement, Esteve made misleading statements to the agents about Shen’s and Hernandez’s conspiracy to distribute marihuana in an attempt to conceal the crime.
The Federal Bureau of Investigation; Department of Homeland Security, Office of Inspector General; Childress Police Department; Amarillo Police Department; Douglas County, Colorado Sheriff’s Office; and Castle Rock, Colorado Police Department conducted the investigation. Assistant U.S. Attorney Sean Taylor prosecuted.
# # #
Fritch Man Sentenced for Transporting Approximately 2,300 Images of Child PornographyRead the Press Release
AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and was sentenced to 240 months in federal prison and 15 years supervised release on one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black has been in custody since the time of indictment in March 2017.
According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas. Law enforcement located several items that contained child pornography. A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Former Dallas County Probation Officer Indicted for Soliciting Payments from ProbationersRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this month, and unsealed last week, charges Tim Jones, 46, of Dallas, Texas, with offenses related to a scheme to illegally solicit payments from probationers, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Jones is charged with eight counts of use of interstate facility to commit travel act violation. Jones will remain on bond pending trial which is set for December 18, 2017.
The indictment alleges that from January 2015 through October 2015 Jones was employed by the Dallas County Community Supervision and Corrections Department as a court probation officer. Jones was responsible for defendants who have been referred from field probation offices to the court level. Court probation officers are expressly prohibited from accepting payment from probationers for probation fees and other sums owed.
The indictment alleges, during Jones’ employment as a court probation officer he concocted and executed a scheme whereby he solicited and received cash and money orders from probationers in exchange for granting permission to travel, granting early release from probation, withholding arrest warrants, dispensing of community service hours, waiving probation requirements, and reducing the balance of probation fees.
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, Jones faces not more than 5 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
# # #
Brownwood Man Sentenced to 168 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — A 22-year-old Brownwood, Texas, man, Sebastian Contreras, who pleaded guilty in July 2017 to two counts of receipt of child pornography, was sentenced last week by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas. Contreras will begin serving his prison sentence on December 1, 2017.
According to documents filed in the case, in December 2016 and February 2017, Contreras used the Internet to download images of child pornography depicting female minors under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Brown County Sheriff’s Office, and the Brownwood Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
# # #
Fort Worth Man Admits to Child Sex TraffickingRead the Press Release
DALLAS — Marquist Fulcher, aka “Keezie,” 28, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Renee Harris Toliver, to one count of conspiracy to commit child sex trafficking, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulcher faces a maximum penalty of up to life in prison and a $250,000 fine. Fulcher will remain in custody pending sentencing which is set for January 31, 2018.
In May 2017 a federal grand jury in Dallas returned an indictment charging Fulcher along with Chapoleon Fischer, aka “Kidd,” 28, Shatara Armstrong, 31, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.
According to plea documents filed in Fulcher’s case, in early 2015, Fulcher began acting as a pimp over Gideon, and eventually several other young girls and women. Specifically, between 2015 and October l, 2016, he facilitated the commercial sex acts of thirteen-year-old Jane Doe 1, seventeen-year-old Jane Doe 2 and seventeen-year-old Jane Doe 4, among others. In late 2015, Armstrong began assisting Fulcher in his prostitution enterprise. Fulcher and Armstrong rented rooms at various hotels for Jane Doe 1, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts. Both Fulcher and Armstrong knew these girls were underage because they told them. Fulcher and Armstrong also created and posted advertisements on the commercial sex website Backpage.com for the girls and women, who in turn gave the proceeds from their commercial sex acts to Fulcher.
Fulcher also worked with other pimps, including Speed and Fischer, as part of a sex trafficking enterprise. The organization recruited victims in various ways, including finding them on the internet. Members of the group would trade girls amongst themselves as well. The pimps in this organization, including Fulcher, used violence and threats of violence as a means to control the victims.
The Fort Worth Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce, Myria Boehm and P.J. Meitl are prosecuting.
# # #
Forney Man Sentenced to 151 Months in Federal Prison for Drug OffenseRead the Press Release
DALLAS — Nicholas Kyle Driggers, 31, of Forney, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to a 151 months in federal prison following his guilty plea in June 2017 to one count of possession of a controlled substance with intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Driggers has been in custody since the time of his arrest in March 2017.
According to documents filed in the case, on March 2, 2017, Addison Police Department performed a computer check of a vehicle and discovered that the registered owner, Driggers, had an active warrant for a parole violation. After arresting Driggers officers examined the vehicle and observed a strong and distinct odor of marijuana coming from inside of the vehicle. In plain view, the officer observed a partially smoked marijuana cigarette and other drug paraphernalia. A search of the vehicle revealed two bags containing over 450 grams of methamphetamine, two handguns, Xanax pills, marijuana, drug paraphernalia and $2,229.00 in cash.
The Texas Department of Public Safety, Addison, Texas Police Department, and the Carrolton Police Department investigated the case. Assistant U.S. Attorney George Leal prosecuted.
# # #
Eight Men Arrested on Federal Child Sex Trafficking ChargesRead the Press Release
FORT WORTH, Texas — Eight men are in federal custody on sex trafficking of children charges outlined in a federal criminal complaint filed last week, announced U.S. Attorney John Parker of the Northern District of Texas.
The following individuals were charged and have made their initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton. They have been remanded to custody pending additional court hearings.
Pierre Lagrone, aka “P” or “Pedro,” 33
Robert Roseberry, aka “King Rose,” 29
Herman Sanders, aka “Pooh,” 29
Reginald Smith, aka “Green Light,” 28
Demarcus Davis, aka “Zigg,” 25
Kentrell Davis, aka “Zeal,” 24
Cederrick Clarkson, aka “Ced” or “Spazz,” 25
Terroderick Watts, aka “Silk,” 27
According to the affidavit filed with the criminal complaint, in March of 2017, the Fort Worth Police Department’s VICE Unit conducted a recovery operation in response to a lead sent from the National Center for Missing and Exploited Children (NCMEC) in reference to a suspected victim of Child Sex Trafficking. Fort Worth VICE Unit located and utilized a Backpage.com ad containing photographs of a minor female, Jane Doe 1, that advertised commercial sex acts. As a result of the operation, Jane Doe 1 was recovered. Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located in a closet located in Jane Doe 1’s hotel room at the time she was recovered.
The three females, and others, were victims of a child sex trafficking organization. Lagrone, Roseberry, Sanders, Smith, D. Davis, K. Davis, Clarkson and Watts were members of that organization and recruited, advertised and sold several women, both adults and underage for the purpose of commercial sex. They frequently worked together as an organization by utilizing some of the same underage and adult female victims to engage in commercial sex acts, operating out of the same hotels while engaging in a commercial sex enterprise, transporting female victims for the purpose of commercial sex acts, utilizing and sharing cellphones that were used to post ads for commercial sex on Backpage.com, taking photographs of female victims either nude or in their underwear that were used in Backpage.com ads for commercial sex and obtaining hotel rooms that were used to engage in commercial sex activities. The defendants were also frequently violent if the females angered them or did not follow their directions.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is life in federal prison and a $250,000 fine.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments are investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
# # #
Dallas Man Admits to Committing $50 Million TRICARE FraudRead the Press Release
DALLAS — Andrew Joseph Baumiller, 38, of Dallas, Texas, pleaded guilty today before U.S. Magistrate Judge David L. Horan to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE, the health insurance program for members of the military and their families. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Baumiller faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and will be ordered to pay restitution. Baumiller will remain in custody pending sentencing, which is scheduled before Chief U.S. District Judge Barbara M.G. Lynn in February, 2018.
According to documents filed in the case, Baumiller admitted to conspiring with Richard Robert Cesario, John Paul Cooper, Dr. Walter Neil Simmons, Dr. William F. Elder-Quintana, Joe Larry Straw, Luis Rafael Rios, Michael John Kiselak, and others to defraud TRICARE out of more than $50 million from May 2014 through February 18, 2016, through a scheme involving compounded pain creams, scar creams, and vitamin supplements. Baumiller is the first defendant to plead guilty in this case. Cesario, Cooper, Simmons, Quintana, Straw, Rios, Kiselak, and four other defendants are scheduled for trial next year.
According to the superseding indictment filed October 4, 2016, Cesario and Cooper orchestrated a scheme through their marketing company, CCMGRX, LLC, to generate prescriptions by paying illegal kickbacks to TRICARE beneficiaries and prescribing doctors, and to receive illegal kickbacks in exchange for those prescriptions from four Texas-based compounding pharmacies: Trilogy Pharmacy (Trilogy) in Dallas, 360 Pharmacy Services in Webster, Dandy Drug in Burleson, and Alpha Pharmacy in Irving.
The superseding indictment alleges that the scheme caused TRICARE to suffer an actual loss of more than $100 million. In connection with his guilty plea, Baumiller, who served as the President of Trilogy and oversaw its day-to-day operations, admitted that TRICARE paid Trilogy more than $50 million that was tainted by the payment of illegal kickbacks.
The superseding indictment alleges that Cesario, Cooper, Straw, Rios, Kiselak and others disguised the illegal kickbacks they paid to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” designed to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, had no control group, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. In connection with his guilty plea, Baumiller admitted that he knew about the sham study but “pretended not to know the truth because CCMGRX was generating so much business and they were all making a lot of money.”
Baumiller further admitted that Trilogy paid Cesario, Cooper, Straw, Rios, Kiselak, and other CCMGRX marketing reps as W-2 employees of Trilogy “in order to give a false appearance of compliance with the statutory and regulatory bona fide employee safe harbor provisions of the Anti-Kickback Statute in order to defraud TRICARE and other federal health care programs.”
At times, according to the factual resume, Trilogy received prescriptions for patients who lived in states where Trilogy was not licensed to do business. Rather than refuse to fill these prescriptions, Baumiller and others shipped the prescriptions to a local courier, marketing rep, or relative, who in turn shipped the prescriptions to the patient. This enabled Trilogy to increase the number of claims it could submit to TRICARE and other federal health care programs.
The Federal Bureau of Investigation and Defense Criminal Investigative Service investigated the case. Assistant U.S. Attorneys Douglas Brasher and Paul Yanowitch are prosecuting.
# # #
Three Men Arrested on Extortion Charges for the Kidnapping of Two MenRead the Press Release
FORT WORTH, Texas — Fernando Cabrera, 21, Nygul Anderson, 19, and Albert Gonzalez, 18, all of Monterrey, Mexico, were arrested yesterday on a federal criminal complaint stemming from the kidnapping and extortion of two men, announced U.S. Attorney John Parker of the Northern District of Texas.
Cabrera, Anderson and Gonzalez were each charged with one count each of conspiracy to possess extortion proceeds. They are scheduled to make their initial appearance today before U.S. Magistrate Judge Jeffrey L. Cureton.
According to the affidavit filed with the complaint, on September 22, 2017, an individual began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he kidnapped the individual’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 individual 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 caller 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. A Hispanic male, exited a red Chevrolet Camaro and attempted to retrieve the package after it was dropped. Three individuals in the red Chevrolet Camaro were then arrested by FBI SWAT Team members.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is up to 5 years in federal prison and a $250,000 fine.
The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
# # #
Mexican Citizen Sentenced to 27 Years in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Jose Apolinar Arreola Avalos, aka “J. Apolinar Arreola Avalos, 43, a citizen of Mexico and in the United States illegally, was sentenced today before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Avalos was sentenced to 324 months in federal prison following his guilty plea in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Avalos has been in custody since his arrest in March 2016.
Avalos 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 documents filed in the case, between September 25, 2015 through March 18, 2016, Avalos and his coconspirators conspired to distribute methamphetamine and on several occasions discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
On March 18, 2016, law enforcement executed a search warrant at Avalos’ residence, which was used to store, prepare and distribute methamphetamine. The methamphetamine seized by law enforcement converted to approximately 63 kilograms of ice methamphetamine. Law enforcement also seized firearms, and several thousand dollars in United States Currency. As part of the plea agreement Avalos agreed to forfeit the items seized, including two firearms and approximately $295,000.00.
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.
# # #
West Texas Methamphetamine Distributors Given Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 45, of Littlefield, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 405 months in federal prison following his guilty plea to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas. A co-defendant, Joseph Raymond Jaramillo, Jr., 30, also of Littlefield, Texas, was sentenced last week to 365 months in federal prison following his guilty plea to his role in the same conspiracy.
Both Lepez and Jaramillo pleaded guilty in July 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Both have been in custody since the time of their arrest in May 2017.
Co-defendant Zahir Rivera-Pineda, 27, pleaded guilty in June 2017 to his role in the conspiracy and was sentenced to 60 months in prison in September of this year.
According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico. Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas. HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.
Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant. Inside the residence, agents located Jaramillo, Jr. and Lepez. Inside the room with Jaramillo and Lepez, agents located in plain-view several of the bundles containing the methamphetamine that had just been delivered to the house. The remainder of the bundles were located inside a hidden compartment located in the closet of the same room. Agents found two firearms in the room with the defendants as well as several other firearms throughout the residence.
The methamphetamine located in the residence weighed a total of 8,833 grams.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police conducted the investigation. Assistant U.S. Attorney Sean Long was in charge of the prosecution.
# # #
Garland Man Sentenced to 60 Months in Federal Prison for Stealing over 2,000 Individuals’ IdentificationRead the Press Release
DALLAS — Alan Okpechi, 30, of Garland, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 60 months in federal prison for identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.
Okpechi pleaded guilty to one count of conspiracy to commit access device fraud and has been in custody since his arrest in July 2016.
Krisstopher Segura-Jatip and Morgen Nelson also pleaded guilty to their role in the conspiracy and were sentenced to 57 months and 24 months in federal prison, respectively.
According to plea documents filed in the case, beginning in April 2015 and continuing through July 13, 2016, Okpechi and his coconspirators purchased the identification of individuals, including names, social security numbers, driver's license numbers, and credit card numbers, through websites. Okpechi used the stolen and unauthorized identification to create false identification documents, including false Texas temporary driver's licenses, bearing the photos of Okpechi and his codefendants. The stolen identification was also used to make fraudulent, unauthorized purchases with credit and/or debit card accounts. Okpechi used an algorithm and an application on Nelson’s phone in order to generate credit card numbers that corresponded with and accessed open accounts to which Okpechi did not have authorization to access. Okpechi and other coconspirators obtained blank plastic cards or altered debit, credit, and gift cards, for the purpose of recoding the cards with unauthorized credit card information. The credit cards were used on several occasions to reserve hotel rooms, including entire floors of hotels, and to rent vehicles.
Over the course of the conspiracy, Okpechi had possessed over 2,000 accounts belonging to other individuals.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
# # #
Fort Worth Man Arrested on $25 Million Health Care Fraud SchemeRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man, David Williams, 54, was arrested yesterday by special agents with the Federal Bureau of Investigation on a federal complaint charging him with engaging in a scheme to defraud insurance companies by submitting over $25 million in false and fraudulent claims for medical services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Williams made his initial appearance yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and will remain on bond pending further court hearings.
According to the criminal complaint affidavit, between November 2012 through August 2017, Williams advertised on his website, getfitwithdave.com that he offered in-home fitness training and therapy through his company, “Kinesiology Specialists.” Williams identified himself as “Dr. Dave” and stated that he served clients in most of Texas, Las Vegas, Denver, Tucson, Seattle, and Orlando. Through his website, Williams told potential clients that he was accepting most health care insurance coverage plans.
In order to bill insurance companies for his services, Williams registered as a health care provider with the Centers for Medicare and Medicaid Services. In completing the application, Williams falsely certified that he was a health care provider. Williams enrolled as a health care provider at least nineteen times under different names or variations of his name and his company names and falsely certified that he was a health care provider in each application. Williams would then bill the insurance companies as if he were a medical physician and as if he had provided care requiring medical decision making of high complexity when Williams actually provided fitness and exercise training to his clients.
According to the criminal complaint affidavit, Williams recruited potential clients through the use of flyers, the internet, and word-of-mouth. Once recruited, Williams would typically meet with or speak with the new client over the phone and review their health history and goals for their planned fitness training. Williams would then typically assign a personal trainer to that individual. The personal trainer typically met with the client between one and three times a week for approximately one hour and provided fitness training. Williams would then bill insurance companies for each training session using inaccurate codes and on certain occasions, billed for services that neither he nor his staff, ever provided.
Between November 2012 through August 2017, Williams was paid in excess of $3.9 million in relation to his fraudulent billing of United HealthCare Services, Inc., Aetna, Inc., and Cigna.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the charged offense is 10 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
# # #
Cuban Man Sentenced to 60 Months in Federal Prison for Role in Conspiracy Involving Fraudulent Bank CardsRead the Press Release
DALLAS — Jesus Aldana Gutierrez, 33, a Cuban citizen, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Gutierrez pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud. He has been in custody since he was arrested in September 2016. Judge Fitzwater also ordered Gutierrez to pay $408,596.46 in restitution, joint and severally with his codefendants.
According to documents filed in the case, from at least January 2015 through July 2016, Gutierrez and others obtained lists of credit and debit card numbers belonging to other individuals online. Gutierrez and his coconspirators used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
# # #
Pakistani Woman Admits to Marriage Fraud SchemeRead the Press Release
DALLAS — Amna Cheema, 37, a Pakistani national, appeared before U.S. Magistrate Judge Renee Harris Toliver yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Cheema will remain in custody pending sentencing which is set for January 22, 2018 Co-defendant Bilal Khaleeq, 47, is scheduled to begin trial on December 11, 2017 for his role in the conspiracy. If convicted, Khaleeq faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
According to plea documents filed in the case, in May 2015, Cheema engaged in discussions with Khaleeq and another individual at Khaleeq’s law office to discuss planning Cheema’s marriage to Person A in order for Cheema to obtain legal status in the United States. In exchange for agreeing to marry Cheema, Person A was paid $745 and promised more money after the immigration process was completed. On June 15, 2015, Cheema married Person A to establish eligibility for legal status in the United States.
Cheema, Person A and Khaleeq discussed the filing of the alien relative petition forms (I-130), the permanent residence applications (I-485), and additional evidence needed to ensure approval of those forms, including filing joint tax returns and placing articles of male clothing at Cheema’s house as further evidence of a valid marriage.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
# # #
Kerr County Man Sentenced for Sending Threatening Letters to President Obama an U.S. Attorney and a FBI Field OfficeRead the Press Release
SAN ANTONIO, Texas — Gavin Friedman, 21, of Austin, Texas, was sentenced yesterday by U.S. District Judge David A. Ezra to 63 months in federal prison for sending threatening communications to President Obama, and the U.S. Attorney for the Western District of Texas, as well as threats to destroy the FBI field office in Houston. The announcement was made today by U.S Attorney John Parker of the Northern District of Texas.
Friedman pleaded guilty to one count of making a threat against the president, one count of mailing – concerning an explosive and two counts of mailing threatening communications. He has been in custody since the time of his arrest in December 2016.
“Threats such as these have no place in a civilized society and will be vigorously prosecuted,” said U.S. Attorney Parker.
According to plea documents filed in the case, on January 22, 2016, Friedman wrote and mailed a letter which contained a threat to take the life of the President Barack Obama. The letter stated that President Obama would be killed so Friedman could be martyred in the name of Allah.
On September 19, 2016, according to plea documents, Friedman made a threat, by mail, to damage and destroy the Federal Bureau of Investigation Field Office in Houston, Texas and the White House in Washington, D.C., by means of an explosive. Also on September 19, 2016 and again on September 27, 2016, Friedman wrote and mailed two separate letters addressed to the United States Attorney for the Western District of Texas, which contained threats to injure the United States Attorney and stating that he was going to kill, and had hired people to kill, the United States Attorney, and to kidnap and kill his family.
The U.S. Secret Service and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney Mark Penley of the Northern District of Texas prosecuted the case, as the U.S. Attorney’s Office for the Western District of Texas is recused from the matter.
# # #
Former High School Teacher in Lubbock County Sentenced for Receiving Child Pornography Involving a Minor StudentRead the Press Release
LUBBOCK, Texas — A 30-year-old Lubbock, Texas, woman, Kandi F. Phillips, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to serve 97 months in federal prison, following her guilty plea in May 2017 to one count of receipt of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings order Phillips to surrender to the Bureau of Prisons on November 10, 2017.
“I have no idea what makes a person - a teacher no less - think it’s okay to engage in sexually explicit communication with a minor,” said U.S. Attorney Parker. “It simply boggles the mind.”
According to documents filed in the case, between December 2016 through February 2017, Phillips was employed as a high school teacher at a public high school in Lubbock County, Texas. During her employment she began interacting online with a student at the school, and the communications turned sexual in nature. Phillips received, by way of the Internet, photographs depicting this minor engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue 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 Frenship Independent School District Police Department, the Texas Department of Public Safety, the Lubbock Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Dallas Man Who Maintained GHB Lab and Methamphetamine Near Elementary School Sentenced to 25 Years in Federal Prison on Firearm and Drug ConvictionRead the Press Release
DALLAS —Bryce Edward Hansen, 44, of Dallas, Texas, who pleaded guilty in February 2017 to one count of being a convicted felon in possession of a firearm and one count of possessing a controlled substance with intent to distribute, was sentenced by U.S. District Judge Sam A. Lindsay to 300 months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case and statements made on the record at his sentencing hearing today, on June 3, 2016, law enforcement executed a search warrant at a storage unit located near an elementary school in Dallas, Texas. A search of the unit resulted in the discovery of approximately 1.5 kilograms of methamphetamine, three firearms, and evidence of a laboratory used in the production of Gamma Hydroxybutyrate (GHB). Numerous drug scales and unused small zip lock baggies were also discovered in the storage unit. Law enforcement discovered that Hansen, who has been previously convicted of several drug offenses, leased the storage unit.
Following the search of the storage unit, law enforcement searched Hansen’s residence and found more methamphetamine and GHB along with U.S. currency and another firearm.
The Drug Enforcement Administration, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, investigated.
Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
# # #
Convicted Felon Pleads Guilty to Firearm & Drug OffensesRead the Press Release
DALLAS — Brian Anthony Adams, 28, of Euless, Texas, appeared in federal court today and pleaded guilty before Chief U.S. District Judge Barbara M.G. Lynn to one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney John Parker of the Northern District of Texas.
Adams faces up to 10 years imprisonment for being a convicted felon in possession of a firearm, and at least 5 years and up to life imprisonment, which must be served consecutively to any other term of imprisonment, for possessing a firearm in furtherance of a drug trafficking crime. Adams has been in custody since the time of his arrest in July 2016. Sentencing is set for January 10, 2018.
According to documents filed in the case, on April 7, 2016, officers with the Irving Police Department executed a search warrant at an apartment in Euless, Texas. Adams was at the apartment when the officers executed the search warrant and Adams was arrested. During the search of the apartment, officers found digital scales, drug distribution paraphernalia and a bag containing approximately 51 grams of cocaine. Officers also found two loaded firearms strategically placed on top of the cabinets in the kitchen and another firearm in a bedroom.
Prior to April 7, 2016, Adams had been convicted on March 31, 2009 of aggravated robbery with a deadly weapon in Tarrant County, Texas, an offense he committed on June 3, 2008.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irving Police Department. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Jamie Hoxie are in charge of the prosecution.
# # #
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said:
“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer.”
“My office is committed to working with those who live in high crime areas and our law enforcement partners, at all levels, to target the most violent criminals in the most violent areas of our communities,” said U.S. Attorney John Parker of the Northern District of Texas.
“The ATF Dallas Field Division remains committed to Project Safe Neighborhoods.” said ATF Special Agent in Charge William A. Temple. “ATF has effected measures aimed at securing successful crime gun traces, expanded the only national network that allows for the capture and comparison of ballistic evidence and implemented Crime Gun Intelligence Groups (CGIG) focused on supporting actionable, intelligence-based investigations. Our unique capabilities work in concert with the expertise of our local, state and federal partners to seek the most-appropriate prosecution and maximum sanctions for the public we serve.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
- Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
- More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
- Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
- Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
- Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
- Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
# # #
Last Defendant Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Alfonso Mercado-Cruz, 32, of Chiapas, Mexico, was sentenced yesterday before U.S. District Judge David C. Godbey to 151 months in federal prison, following his guilty plea in January 2017 to one count of conspiracy to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-defendants Raul Garibay, 25, Gerardo Galvan, 28, and Fernando Mora-Martinez, 43, also pleaded guilty to their role in the conspiracy and were previously sentenced.
According to plea documents filed in Mercado-Cruz’s case, from January 1, 2016 through May 19, 2016, Mercado-Cruz, along with Galvan, Garibay and Mora-Martinez conspired to possess with intent to distribute 50 grams or more of methamphetamine. The defendants used a trailer house, equipped with only a stove, in Grand Prairie, Texas, to cook and prepare methamphetamine for distribution.
A search of the trailer house revealed approximately 4 kilograms of methamphetamine in liquid, powder, and crystal form in various stages of processing.
The Drug Enforcement Administration, Lewisville Police Department, Grand Prairie Police Department, and the Dallas Police Department investigated the case.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
# # #
Local Man Sentenced to 105 Months in Federal Prison for Bank RobberyRead the Press Release
DALLAS — Tommy Nelson, Jr., 52, was sentenced today by U.S. District Judge David C. Godbey to 105 months in federal prison for the robbery of Shinhan Bank located in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in April 2017 to one count of Bank Robbery. He has been in custody since his arrest in January 2017.
According to documents filed in the case, on January 17, 2017, Nelson grabbed a cash box from a team of bank employees while they restocked the drive thru ATM at Shinhan Bank. An armed security guard who was also present attempted to stop Nelson and the two began struggling. During the struggle Nelson attempted to take the security guard’s handgun. While fighting over the handgun the weapon fired one round striking Nelson in the finger. Once the officer was able to get control of his handgun he held Nelson at gunpoint until officers arrived.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Mark Penley was in charge of the prosecution.
# # #
Dallas Man Admits to over $1.3 Million Oil and Gas Embezzlement SchemeRead the Press Release
DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, appeared this morning before U.S. District Judge Sidney Fitzwater and pleaded guilty to one count of mail fraud. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Anderson faces a maximum penalty not to exceed 20 years in federal prison and a $250,000 fine. According to the plea agreement, he could also be ordered to pay restitution. Anderson will remain on bond pending sentencing. Sentencing is set for January 11, 2018.
According to documents filed in the case, Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations that specialized in acquiring and leasing non-operating working interests of oil and gas properties. P2 Energy Solutions was a privately held company that provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution. Empery Resource Consultants, LLC was created by Anderson for the purpose of fraudulently claiming false and fictitious petroleum “landmen” services allegedly provided to Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
According to the factual resume, on May 14, 2014, 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.
It was part of the scheme to defraud that during the period from August 28, 2014 through March 2, 2017, Anderson created false and fraudulent invoices in the name of Empery Resource Consultants and then submitted these fraudulent invoices to P2 Energy Solutions for payment. During this period, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991. 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 case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #