Northern District of Texas
Press releases recorded for this federal judicial district.
Dallas Doctor Sentenced on Health Care Fraud ConvictionRead the Press Release
DALLAS — A 60-year-old doctor from Rockwall, Texas, Jacques Roy, who was convicted in April 2016 of various health care fraud charges following a six-week-long trial, was sentenced today by U.S. District Judge Sam A. Lindsay to 420 months in federal prison and ordered to pay $268,147,699.15 in restitution, joint and several with all codefendants to Medicare and Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Roy was convicted of one count of conspiracy to commit health care fraud, eight counts of health care fraud, two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Roy has been in custody since the time of his arrest in February 2012.
“The only thing more stunning than Jacques Roy and his co-conspirators’ shameless methods, said U.S. Attorney Parker, is the staggering dollar amounts involved in this fraud scheme. This takes brazen to a whole new level.”
The following defendants have also been sentence for their role in the health care fraud scheme:
Wilbert James Vesey, Jr., 210 months in federal prison and $23 million in restitution
Cyprian Akamnonu, 120 months in federal prison and $25 million in restitution
Patricia Akamnonu, 120 months in federal prison and $25 million in restitution
Charity Eleda, 48 months in federal prison and $397,294.51 in restitution
Teri Sivils, 3 years probation and $885,714.05 in restitution
Cynthia Stiger will be sentenced October 26, 2017.
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.
Regarding Dr. Roy’s conviction for obstruction of justice, the government presented evidence that when the Centers for Medicare and Medicaid Services (CMS) suspended Dr. Roy and Medistat from receiving Medicare payments after June 2, 2011, because of suspected fraud, Dr. Roy sought an “end-run” around the suspension through the use of another company, Medcare House Calls. Dr. Roy directed the medical providers he employed to be re-credentialed and to bill Medicare under Medcare House Calls, instead of Medistat. Nonetheless, the money that Medicare paid was circumvented back to Medistat and Dr. Roy.
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.
# # #
Burleson Man Admits to Attempting to Meet a 13-Year-Old for Sex at a Fort Worth HotelRead the Press Release
FORT WORTH, Texas — Preston Anthony King, 23, of Burleson, Texas, appeared today in federal court before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of enticement of a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
King, who has been in custody since November 2016 on a related complaint, faces not less than 10 years and not more than life in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is scheduled for December 12, 2017.
According to documents filed in the case, on March 14, 2016, a Fort Worth Police Officer acting in an undercover capacity and posing as a 13-year-old girl responded to an advertisement that King posted on Craigslist. The description of the advertisement indicated that King was looking to engage in sexual intercourse. During the conversation, the officer told King that she was 13 years old, and later in the conversation King told the officer that he wanted to engage in sexual intercourse with her. King agreed to meet, who he thought was a 13-year-old girl, on March 15, 2016, at a hotel room in Fort Worth, Texas, to engage in sexual intercourse. When King arrived at the agreed location the Fort Worth Police Department took King into custody.
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 Fort Worth Police Department investigated the case. Assistant U.S. Attorney Megan Fahey is in charge of the prosecution.
# # #
Two Former Ellis County Sherriff’s Office Employees Admit to Stealing and Selling FirearmsRead the Press Release
DALLAS — Thomas Glen Smith, 50, and Philip Gary Slaughter, 42, both appeared in federal court and pleaded guilty to one count of possession or sale of stolen firearms, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith and Slaughter were charged in separate, but related cases in June 2017 and May 2017, respectively. The maximum penalty for the offense charged is 10 years in federal prison and a $250,000 fine. Restitution may also be ordered. Both defendants will remain on bond pending sentencing.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey and Errin Martin are in charge of the prosecution.
# # #
Federal Jury Convicts Dallas Man of Firearm and Drug Offenses Involving HeroinRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Sam A. Lindsay, today a federal jury convicted Laroy Damont Johnson, 37, of Dallas, of drug and firearm offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. The drug count carries a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine. The felon-in-possession count carries a maximum statutory penalty of 10 years and a $250,000 fine. The firearm-in-furtherance count carries a mandatory five-year term of imprisonment that must run consecutively to all other counts. Sentencing is set for December 4, 2017.
According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented other evidence suggesting that Johnson had been staying in the room for several days distributing drugs.
The Drug Enforcement Administration and the Irving Police Department investigated. Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.
# # #
Dallas Man Sentenced to 20 Years in Federal Prison for His Role in a Drug Trafficking OrganizationRead the Press Release
DALLAS — Joshua Diaz, 28, a Dallas man who was arrested in June 2016 following a law enforcement investigation into a drug trafficking organization that operated out of the Pleasant Grove, Seagoville and Balch Springs areas, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Last week, Diaz was sentenced by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison. Diaz pleaded guilty to one count of distribution of a controlled substance in October 2016.
According to documents filed in the case, on May 10, 2016, Diaz supplied an undercover officer with approximately 951 grams of methamphetamine. Diaz is responsible for at least 1550.84 grams of methamphetamine.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement has seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The Dallas Police Department and the Texas Department of Public Safety investigated the case. Assistant U.S. Attorney Andrew Wirmani prosecuted.
# # #
San Antonio Man Involved in Methamphetamine Conspiracy Sentenced to 214 Months in Federal PrisonRead the Press Release
DALLAS — A San Antonio, Texas, man, Zachary Whiteside, aka “Sharkey,” Shark” and “Zach,” 37, was sentenced this week by Chief U.S. District Judge Barbara M.G. Lynn to 214 months in federal prison, following his guilty plea in November 2016 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Whiteside has been in custody since his arrest in May 2015.
According to documents filed in the case, Whiteside travelled to Dallas, Texas on several occasions beginning in January 2014 to purchase various quantities of methamphetamine from a Dallas-based methamphetamine distributor. Whiteside then distributed the drugs to customers in exchange for payment. On one occasion Whiteside exchanged a 2013 Ford Mustang, a 2002 Audi, U.S. currency and guns as payment for methamphetamine.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution.
# # #
Dallas Man Who Ran A Dallas Drug House Sentenced to 151 Months in Federal PrisonRead the Press Release
DALLAS — Michael Johnson, aka “Psych” and “Syke,” 34, of Dallas, Texas, was sentenced yesterday by Chief U.S. District Judge Barbara M.G. Lynn to 151 months in federal prison following his guilty plea earlier this year to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
A federal grand jury indicted Johnson and seventeen others in August 2016 on conspiracy drug trafficking charges. Johnson has been in custody since the time of his arrest in August 2016.
According to documents filed in the case, beginning in January 2015, Johnson supplied cocaine and marijuana to co-conspirators on several occasions in exchange for payment. During the conspiracy the defendants utilized North Texas residences to cut, package and distribute cocaine to numerous customers.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Phelesa Guy prosecuted.
# # #
Dallas Attorney Admits to Role in $26 Million Fraud ConspiracyRead the Press Release
DALLAS — Tshombe Anderson, 54, of Grand Prairie, Texas, appeared today before Chief U.S. District Judge Barbara M.G. Lynn and pleaded guilty to a scheme he ran along with four of his family members from July 2011 to September 2015 to fraudulently obtain more than $26 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Anderson pleaded guilty to one count of conspiracy to commit health care fraud. He faces a maximum penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Anderson agrees to forfeit $375,000 seized from his residence, a 2015 Mercedes, and his share of the $8,383,075 that was seized from 25 bank accounts. Anderson will remain in custody pending sentencing which is set for November 29, 2017.
In addition to Anderson, his sister Lydia Bankhead, 63, his wife Brenda Anderson, 47, his sister-in-law Janet Anderson, 43, and his niece Lydia Taylor, 30, were also charged in the indictment returned in September 2015. A trial date of September 25, 2017 has been set for the four co-defendants.
According to plea documents in the case, Tshombe Anderson worked as an attorney for Union Treatment Centers (“UTC”). Anderson and his wife, Brenda Anderson, opened a durable medical equipment company called Best First Administration (“BFA”). BFA was formed, initially, to provide durable medical equipment to patients referred to BFA from UTC. In July 2011, Tshombe Anderson and Brenda Anderson disassociated from UTC.
In April 2013, Tshombe Anderson agreed with Bankhead to open Union Medical Supplies and Equipment (“UMSE”). In August 2013, Tshombe Anderson agreed with Janet Anderson to open Skycare Medical Supplies and Equipment (“SMSE”). Both companies were created in order to submit claims that were inappropriate to OWCP. The same medical information that BFA had received from UTC was used and billed to the same universe of claimants for duplicate, unwanted durable medical equipment that was not medically necessary, using outdated medical information. Tshombe Anderson continued to do so despite knowing that they were billing OWCP for items that were not associated with the claimant’s injuries and that claimants were often refusing or rejecting the durable medical equipment for which their company had billed.
Tshombe Anderson had access to the operating accounts for UMSE and routinely transferred large sums of cash from those accounts for his personal use or to launder through business accounts for a shell company called American Federal Union Claims Advocates, as well as accounts associated with his law office.
The total amount paid to OWCP for UMSE and SMSE was $26,572,458.93.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorneys Nicole Dana and P.J. Meitl are in charge of the prosecution.
# # #
U.S. Attorney’s Office for Northern District of Texas Hosts 20th Annual Drug Education for Youth (DEFY) Summer CampRead the Press Release
DALLAS — The 20th Annual Drug Education for Youth (DEFY) Summer Camp was held last week at the Naval Air Station Joint Reserve Base (NAS JRB) in Fort Worth, Texas, where members of the U.S. Attorney’s Office for the Northern District of Texas, members of the military and local law enforcement worked together to host the one-week residential camp for at-risk youth. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
First Assistant U.S. Attorney Chad Meacham and Captain Jonathan R. Townsend of NAS JRB presented certificates to the 28 youth who attended this year’s DEFY summer camp at a graduation ceremony held Saturday morning, July 29, 2017, at NAS JRB. Camp attendees included at-risk youth from high crime and low income communities in the Dallas/Fort Worth Metroplex.
DEFY is a year-long, unique, comprehensive, and multi-phased program that reduces risk and strengthens protective factors that research has directly linked to adolescent alcohol and drug abuse, school failure, delinquency, and violence.
DEFY begins each year with the week-long, residential summer camp for selected at-risk youth, ages 10 - 11. At DEFY camp, the youth participate in a curriculum focused on healthy lifestyles to prevent drug abuse and gang involvement and resist negative peer pressure. To reinforce good practices learned at DEFY camp, DEFY continues throughout the year with classroom sessions, educational workshops and continued mentoring designed to provide the youth with additional life skills, training and tools to resist drugs and gangs.
The DEFY program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live.
# # #
Garland Couple Who Stole/Unlawfully Obtained Patient Identification Information Sentenced to Federal Prison TermsRead the Press Release
DALLAS — A former employee at Parkland Health and Hospital System in Dallas (Parkland), Viju Mathew, and his wife, Mariamma Viju, a registered nurse who worked at Baylor University Medical at Dallas (Baylor), who pleaded guilty to federal charges stemming from their theft/unlawfully obtaining patient identification information, were sentenced today by U.S. District Judge Jane J. Boyle, announced U.S. Attorney John Parker of the Northern District of Texas.
Viju Mathew, 52, and his wife, Mariamma Viju, also 52, were sentenced to 30 months imprisonment and ordered to pay $297,957.89 in restitution to Medicare. Mathew pleaded guilty in November 2014 to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft) and Viju pleaded guilty in May 2016 to one count of wrongful disclosure of individually identifiable health information (HIPAA violation). Both defendants reside in Garland, Texas. Judge Boyle ordered they surrender to the Bureau of Prisons on August 30, 2017.
According to plea documents filed in the cases and the evidence produced during the sentencing hearing, which spanned four days, Mathew and Viju both stole patient identities from their jobs at local hospitals and used the stolen patient information to solicit patients for the home health care agency they jointly owned and operated, Dallas Home Health. Mathew worked as a registration specialist at Parkland, where he was responsible for entering patient information into Parkland’s computer system. Mathew used his position to obtain confidential information for more than 3,000 patients, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers. Mathew admitted that he knowingly removed the confidential information intending to use it to gain an economic benefit by contacting prospective patients for his home health care business, Dallas Home Health.
Viju worked as a registered nurse at Baylor until she was terminated in October 2012. While employed at Baylor, she surreptitiously collected Baylor patient identification information, specifically, identifying health information, to recruit them as patients of Dallas Home Health, where she served as Director of Nursing.
The evidence also showed that Dallas Home Health obtained patient certifications from a number of doctors who have been convicted or charged in other health care fraud cases in the Northern District of Texas including Nicholas Padron (Case No. 3:12-CR-310), Jacques Roy (3:12-CR-054-L), and Hector Molina (Case No. 3:15-CR-163-K).
The FBI, Department of Health and Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Assistant U.S. Attorney Doug Brasher prosecuted the cases.
# # #
Seattle Man Arrested for the Attempted Extortion of Leagle.com and Several Other Media CompaniesRead the Press Release
DALLAS — Kamyar Jahanrakhshan, aka “Kamyar Jahan Rakhshan,” “Andy or Andrew Rakhshan,” “Andy or Andrew Kamyar,” and “Kamiar or Kamier Rakhshan,” 32, of Seattle, Washington, was arrested today on a federal criminal complaint charging him with extortion by threats to cause damage to the Dallas, Texas hosting company for Leagle.com, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the affidavit filed with the complaint, on December 30, 2014 Leagle.com, an aggregator of case law from Federal and certain State courts, was contacted by an individual by the name of Andrew Rakhshan by e-mail requesting that a URL linking to a court decision involving Rakhshan be deleted. Claiming that he was the plaintiff in the case, Rakhshan stated that he did not want the opinion available on the internet as it was tarnishing his reputation and violating his privacy. Rakhshan offered to pay a fee to have the post removed.
Between December 30, 2014 and January 16, 2015, Leagle.com received multiple e-mails signed by Andrew Rakhshan offering to pay for the removal of a court opinion in which Rakhshan was a party to. On January 24, 2015 Rakhshan again sent an e-mail claiming that he met a group of hackers online whom were willing to launch a massive cyber-attack on Leagle.com. Rakhshan claimed that he had no other options to resolve the matter. He threatened to use these hackers to conduct a Distributed Denial of Service (DDoS) attack to force Leagle.com to comply with his demands. On January 25, 2015, a large amount of traffic targeted the IP address for Leagle.com. The actions the company took could not mitigate the attack traffic. The attack subsided once the company removed the link to the court opinion.
Similar DDoS attacks were carried out by Rakhshan on Fairfax Media5, a media company in Australia and New Zealand; The Metro News, a daily newspaper; Canadian Broadcasting Corporation; and Canada.com, a social media discussion site. At times Rakhshan escalated his threats from DDoS attacks to threats of bomb attacks.
A 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 government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offenses as charged is 5 years in federal prison and a $250,000 fine.
The Federal Bureau of Investigation investigated the case, with assistance from the FBI Dallas cyber squad, Seattle cyber task force, Toronto police department, and the Australian federal police. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
# # #
Abilene Man Sentenced to 120 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Jonathan Andrew Hydro, 59, of Abilene, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 120 months in federal prison, following his guilty plea in April 2017 to one count of receipt of visual depictions of minors engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Hydro was also ordered to pay $5,000.00 in restitution. He has been in custody since the time of his arrest in February 2017.
According to documents filed in the case, on June 17, 2016, Hydro knowingly received, by way of the Internet, seven images which depict minors engaged in sexually explicit conduct. At the time Hydro received the images he knew that at least one of the performers in each image was a minor and he knew that the visual depiction was of a minor engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Last Defendant Sentenced in Heroin Distribution ConspiracyRead the Press Release
DALLAS — Sixto Rivera Bustillos, 44, of Garland, Texas, was sentenced today before U.S. District Judge Jane J. Boyle for his role in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Bustillos was sentenced to 135 months in federal prison following his guilty plea in September 2016 to one count of possession with intent to distribute and the distribution of a mixture and substance containing a detectable amount of heroin. Bustillos has been in custody since his arrest in June 2016.
Bustillos was charged along with six others with various offenses related to a heroin distribution conspiracy. Of the seven charged, all pleaded guilty and have been sentenced to the following:
Rene Rodriguez, 31, of Dallas, 108 months
Marcus Stokes, 31, of Plano, 70 months
Daniel Rojo, 32, of Allen, 60 months
Brittany Anders, 32, of Rowlett, 51 months
Jancs Fraire, aka “Jesus Luis Friar,” “Jesus Fraire,” and “Jay,” 19, of Dallas, 20 months
Yovani Loyd Rodriguez, 23, of Dallas, 10 months
According to plea documents filed in Bustillos’ case, on April 27, 2016 Anders and Bustillos met an individual in a McDonalds restaurant bathroom in Garland, Texas and exchanged one-half ounce of heroin for $820.On June 2, 2016, DEA agents went to Bustillos and Anders’ home with federal arrest warrants for both Bustillos and Anders. The agents conducted a protective sweep of the home, and upon entering Bustillo’s bedroom smelled raw marijuana emanating from an open duffel bag on the bed. Agents seized the bag containing marijuana, other controlled substances and a firearm.
The Drug Enforcement Administration, Allen Police Department and Rockwall Police Department investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted.
# # #
Lancaster Heroin Trafficker Sentenced to 170 Months in Federal PrisonRead the Press Release
DALLAS — Gabriel Reyes, aka “Payaso,” 33, was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn to 170 months in federal prison for the distribution of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Reyes pleaded guilty in February 2017 to one count of possession with the intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin. He has been in custody since the time of his arrest in September 2016.
According to documents filed in the case, on September 21, 2016 Reyes sold an ounce of heroin from his residence in Lancaster, Texas in exchange for $1,050. On September 28, 2016 law enforcement agents executed a federal search warrant at the residence of Reyes. Agents found over 100 grams of heroin, approximately $92,700, drug paraphernalia, and three firearms.
The case was investigated by the Drug Enforcement Administration, Alcohol Tobacco and Firearms, and Lancaster Police Department. Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
# # #
Former Postal Employee Convicted at Trial in Scheme to Defraud Worker’s Compensation Program Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — Tonya Evans, 52, a former U.S. Postal Service employee, was sentenced today by U.S. District Judge Sam A. Lindsay to 21 months in federal prison and ordered to pay $98,888.73 in restitution for participating in a scheme to defraud the Department of Labor’s (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Evans and co-defendant, McArthur Baker, 69, both of Dallas, were each convicted following a one-week trial before U.S. District Judge Sam A. Lindsay on one count of conspiracy to defraud the U.S. with respect to claims and one count of false statements or fraud to obtain federal employees’ compensation. Baker was sentenced in March 2017 to 21 months in federal prison.
The government presented evidence at trial that Baker and Evans engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation that was used by co-conspirators to defraud DOL’s OWCP. The government presented further evidence that Baker also falsified forms related to travel he purportedly made for medical services, and as a result, received funds from DOL to which he was not entitled.
Evans began working for the U.S. Postal Service in November 1985; she worked as a clerk primarily with the parcel post distribution machine. She filed disability claims in August 2001, August 2003, and August 2008 claiming that she suffered from various injuries. As a result of these claims, Evans was placed on worker’s compensation in 2001. She received more than $340,000 in worker’s compensation payments. In March 2010, she applied for disability retirement that was approved in October 2011.
Baker began working for the U.S. Postal Service in 1982; he was assigned to work as a mail handler equipment operator. Between 1984 and 2007, Baker filed eight different claims for disability, claiming he suffered from various injuries. As a result of these claims, Baker stopped working in approximately December 2007. He never returned to work but continued to receive disability compensation from December 2007 until at least October 2009. He received more than $68,000 in worker’s compensation payments. He retired from the U.S. Postal Service in October 2009 but he continued to receive disability medical care paid for through DOL, and he continues to be eligible for disability medical care.
Convicted co-conspirator, Larry Washington, was a licensed professional counselor and ran several businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy, and massage services. His patients were former postal and Veterans Administration employees who had suffered on-the-job injuries and were eligible to receive medical services and worker’s compensation related to those injuries. Earlier this year, Washington pleaded guilty to one count of conspiracy to commit health care fraud and was sentenced in May 2016 to 78 months in federal prison and ordered to pay $7.7 million in restitution.
To maintain and enhance his billings with OWCP, Washington asked claimants, including Baker and Evans, to falsify medical documentation, called “mood inventories,” that indicated they had received services on days they had not. Baker and Evans completed numerous mood inventory forms that contained false information about the days on which Baker and Evans received treatment from Washington or someone working for Washington. Baker and Evans received approximately $100 for each form they completed.
Over the course of the fraud, Baker received a total of at least $3,000 from Washington; Evans received at least $6,000.
As a result of Baker’s falsified documentation, Washington was able to fraudulently bill $105,125 from OWCP. As a result of Evans’ falsified documentation, Washington was able to bill $202,438 from OWCP.
In addition to Baker and Evans, 20 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, a Postal employee detailed to the Postal Service Health Resource Management Office, and a medical provider’s employee were charged and convicted in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys P.J. Meitl, Nicole Dana and Special Assistant U.S. Attorney Jennifer Bray prosecuted.
# # #
Rowlett Woman Sentenced to 48 Months in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — Charity Eleda, R.N., 56, of Rowlett, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Eleda was sentenced by U.S. District Judge Sam A. Lindsay to 48 months in federal prison and ordered to pay $397,294.51 in restitution to Medicare. She has been in custody since April 2016, after a federal jury found her guilty of various health care fraud offenses.
Eleda, along with co-defendants, Jacques Roy, M.D., 59, of Rockwall, Texas; Cynthia Stiger, 54, of Dallas; and Wilbert James Veasey, Jr., 65, of Dallas, were each convicted following a six-week-long trial on one count of conspiracy to commit health care fraud. In addition, Roy was convicted on eight, Veasey on three and Eleda on four counts of health care fraud. Roy was also convicted on two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Eleda was also convicted on three counts of making false statements for use in determining rights of benefit and payment by Medicare.
Three other defendants charged in the case, Cyprian Akamnonu and his registered nurse wife, Patricia Akamnonu, both of Cedar Hill, Texas, and Teri Sivils, of Midlothian, Texas, each pleaded guilty before trial to one count of conspiracy to commit health care fraud. Cyprian and Patricia Akamnonu are each currently serving a ten-year federal prison sentence. They were also ordered to pay $25 million in restitution. Sivils pleaded guilty in April 2015, and was sentenced to 3 years probation.
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.
# # #
San Antonio Man Pleads Guilty for His Role in a “Foreclosure Rescue Scheme”Read the Press Release
DALLAS — Richard Bruce Stevens, 52, of San Antonio, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Stevens faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Stevens will remain on bond pending sentencing, which is set for October 30, 2017.
A federal grand jury in Dallas returned an indictment in December 2016 charging Stevens 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 scheduled for trial August 28, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, and Christina Renee Caveny, 37, of Dallas, both pleaded guilty to their role in the scheme and are awaiting sentencing.
According to documents filed in the 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. Stevens 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, Stevens 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 prosecuted as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas. These prosecutions are identified following a careful review of many criminal referrals sent by the Office of the United States Trustee in Dallas to the United States Attorneys Office. Since May 2013, a total of 26 defendants have been charged as part of that initiative. To date, 23 defendants have been convicted, one resulted in a mistrial, and two are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
Five Violent Jewelry Robbers Have Been ArrestedRead the Press Release
DALLAS — Five individuals who were wanted by the FBI, the DFW International Airport Department of Public Safety, the Arlington Texas Police Department, and the Garland Texas Police Department for their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, have been arrested, announced U.S. Attorney John Parker of the Northern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department's Criminal Division and Special Agent in Charge Eric K. Jackson of the Federal Bureau of Investigation.
Johnnattan Ramirez, 35, Pedro Louis Alvarez, 32, Robert Riveros, 25, Eslevy Vargas-Avila, 27, and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016. Each defendant is charged with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and one additional count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence.
Investigative efforts by the FBI Dallas Violent Crimes Task Force and the DFW International Airport Department of Public Safety identified Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran as suspects in these violent robberies. Further investigative efforts led to the location and arrest of all five defendants. Alvarez was arrested in New York City by the FBI and the DFW International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on December 24, 2016, February 13, 2017, February 19, 2017, and July 19, 2017, respectively. The United States government intends to request extradition of Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros, all of whom are Colombian citizens.
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American Theft Group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Eric K. Jackson, Special Agent in Charge of the FBI Dallas Division. “The agents on our task force worked hand in hand with state, local, and international partners to relentlessly investigate these crimes and, ultimately, identify, locate, and apprehend these violent fugitives.”
The indictment alleges, on April 27, 2016, Ramirez, Alvarez, and Riveros observed K.D., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Garland, Texas. Ramirez and Riveros approached K.D. as he was leaving the store, while Alvarez continued surveillance. Riveros then took a rolling case, a calendar catalog, calendar invoice/order forms, a Nikon digital camera, and a State of California sales permit from K.D. against his will by threatened force, violence, and fear of immediate injury to his person, that is, by brandishing a firearm.
The indictment further alleges, on June 2, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed C.K., an individual who they believed to be a traveling diamond and jewelry salesman, and followed him to a gas station located on East Pioneer Parkway in Arlington, Texas. Ramirez, Riveros, and Vargas-Avila approached C.K. as he was putting gas in his rental vehicle, while Alvarez and Contreras-Beltran continued surveillance. Ramirez, who had a firearm and was wearing a mask to conceal his identity, approached C.K. and searched him at gunpoint for hidden diamonds and jewelry on his person, while Vargas-Avila entered C.K.’s vehicle and took a bag containing, among other items, a diamond scale and diamond gauge.
The indictment also alleges, on June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed M.S., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Richardson, Texas. Ramirez, Alvarez, Riveros, and Vargas-Avila followed M.S. to a DFW International Airport gas station in Euless, Texas, and observed M.S. enter the gas station’s convenience store. Riveros broke a window on M.S.’s rental vehicle with a handgun, took a case containing jewelry and placed it inside the vehicle being driven by Ramirez. M.S. ran from the store and entered Ramirez’s vehicle through the window and attempted to retrieve his case. Ramirez then drove his vehicle in a manner intended to dislodge M.S. from the vehicle, striking other vehicles in the process, before departing the area with M.S. partially inside the vehicle. Ramirez, Alvarez, Riveros, and Vargas-Avila drove to an apartment complex in Irving, Texas, where M.S. was removed from the vehicle and beaten, which contributed to the death of M.S.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count and the interference with commerce by robbery count both carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence counts each carry a maximum statutory penalty of life in federal prison and a $250,000 fine.
The FBI Dallas Violent Crimes Task Force, the DFW International Airport Department of Public Safety, Arlington Texas Police Department, and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. Assistant U.S. Attorney Keith Robinson is prosecuting, with assistance from Joseph Wheatley, Trial Attorney, Organized Crime and Gang Section.
# # #
Five Fugitives Arrested in Connection with String of Violent RobberiesRead the Press Release
Five individuals have been arrested in connection with their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI’s Dallas Division.
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American theft group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Special Agent in Charge Jackson. “The agents on our task force worked hand in hand with state, local and international partners to relentlessly investigate these crimes and, ultimately, identify, locate and apprehend these violent fugitives.”
Pedro Louis Alvarez, 32, of Honduras; and four Colombian nationals, Johnnattan Ramirez, 35; Robert Riveros, 25; Eslevy Vargas-Avila, 27; and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016 with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery and related firearms charges. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and related firearms charges. Alvarez was arrested in New York City by the FBI and the Dallas Fort Worth International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez and Riveros were all arrested in Colombia by the Colombian National Police, between December 2016, and July 19.
The indictment alleges that on April 27, 2016, Ramirez, Alvarez and Riveros robbed a traveling diamond and jewelry salesman at gunpoint, taking the victim’s rolling case and a Nikon digital camera, among other items, while Alvarez conducted surveillance. The indictment further alleges that on June 2, 2016, and June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran robbed two additional traveling diamond and jewelry salesmen at gunpoint, taking from the first victim a bag containing, among other items, a diamond scale and diamond gauge, and from the second victim a case containing jewelry. According to the allegations, when the second victim attempted to retrieve his case from Ramirez’s vehicle, Ramirez drove away with the victim partially inside the vehicle, and Ramirez, Alvarez, Riveros and Vargas-Avila then removed the victim from the vehicle and beat him, which contributed to his to death.
An indictment is an accusation by a federal grand jury, and the defendants are entitled to the presumption of innocence unless proven guilty.
The FBI Dallas Violent Crimes Task Force, the Dallas Fort Worth International Airport Department of Public Safety, Arlington Texas Police Department and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
Balch Springs Man Sentenced to 35 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS—Francisco Javier Lopez Echeverria, 19, of Balch Springs, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to serve 420 months in federal prison and a lifetime of supervised release, following his guilty plea to two child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Echeverria has been in custody since his arrest in August 2016. He pleaded guilty in December 2016 to two counts of production of child pornography.
According to the factual resume filed in the case, on August 20, 2016, DPD executed a search warrant at Echeverria’s residence. Echeverria was at the residence along with a male 17-month-old child, John Doe. Echeverria acknowledged he possessed sexual explicit images of John Doe, who lived at the residence. Echeverria uploaded images and videos of child pornography to his Flickr account that he produced of John Doe. There are several videos and images that show Echeverria sexually abused the minor child on multiple occasions in May 2016 through July 2016.
In addition, the forensic review of Echeverria’s devices showed that Echeverria possessed additional child pornography. Currently six image files of Echeverria’s collection were of identified children known to law enforcement as victims of sexual abuse. Also, Echeverria possessed hundreds of additional images of nude toddlers and some nude infants.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
# # #
San Angelo Man Sentenced to 168 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Shaundel Rey Windom, 39, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, following his guilty plea in March 2017 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Windom set up a Dropbox account on two separate occasions and uploaded several images and videos of child pornography. At the time Windom transported the files he knew the nature of the files and he knew that the files contained minor children under the age of eighteen.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Tom Green County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Methamphetamine Distributor Sentenced to 27 Years in Federal PrisonRead the Press Release
LUBBOCK — Orlando Juarez Cardenas, 41, of San Angelo, was sentenced today before Senior U.S. District Judge Sam R. Cummings to 27 years in federal prison for the distribution of methamphetamine in San Angelo, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Cardenas pleaded guilty in March 2017 to one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine. Cardenas has been in custody since his arrest in January 2017.
According to plea documents filed in the case, on January 23, 2017, Cardenas contacted an individual and requested a meeting with him. During this meeting, Cardenas gave the individual $7,580 as buy money for methamphetamine that would be purchased in the Dallas area. The individual was advised to go to a location in Grand Prairie, Texas. This is the same meeting place where Cardenas has personally picked up drugs in the past. The individual was further advised to follow a Black Nissan Altima. The Nissan Altima stopped on a neighborhood street and a female got out of the vehicle and provided a designer department store bag in exchange for the $7,580 provided by Cardenas.
Inside the designer department store bag was 2,030 grams of methamphetamine, divided into two separate plastic baggies. Cardenas intended to repackage the methamphetamine and sell it to his clients in San Angelo and the surrounding area.
The Drug Enforcement Administration, the Texas Department of Public Safety-Criminal Investigations Division, and the San Angelo Police Department, Street Crimes Division investigated the case.
Assistant U.S. Attorney Russell Lorfing was in charge of the prosecution.
# # #
Last Two Defendants Sentenced in Pill Mill OperationRead the Press Release
DALLAS — Jason Edgecombe, 40, and Cy Viator, 34, both of Houston, Texas, were sentenced this morning for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Viator pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance and one count of unlawful use of a communication facility. U.S. District Judge Sidney A. Fitzwater sentenced Viator to 140 months in federal prison on Count 1 and 48 months in prison on Count 2.
Edgecombe was sentenced before Judge Fitzwater to 3 months in federal prison. Edgecombe pleaded guilty in March 2017 to two counts of possession of a controlled substance. Judge Fitzwater ordered Edgecombe to report to serve his sentence on September 5, 2017.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 29 individuals have now been convicted and all have been sentenced. The defendants received sentences ranging from time served to 140 months imprisonment.
According to plea documents in Viator’s case, on November 14, 2013, Viator and a co-conspirator conspired to obtain oxycodone and hydrocodone pills in Dallas, Texas, and distribute them in Louisiana. Viator and the co-conspirator obtained 2,000 oxycodone 30mg pills and also hydrocodone pills. After obtaining the pills, Viator drove the co-conspirator to a FedEx location in Dallas to ship the pills in two separate packages to Louisiana. While the co-conspirator was inside the FedEx shipping the packages, Viator sent him text messages with two recipient’s names and addresses. One intended recipient was Viator in Scott, Louisiana. On November 15, 2013, before delivery, both packages were seized by law enforcement in Lafayette, Louisiana. Each package contained three pill bottles in Viator’s name bearing an address in DeSoto, Texas and a total of 2,000 Oxycodone 30mg pills and 500 hydrocodone pills.
According to plea documents in Edgecombe’s case, on various occasions Edgecombe possessed a quantity of 30mg oxycodone tablets and a mixture and substance containing a detectable amount of 30mg oxycodone, a Schedule II controlled substance. Both were obtained without a valid prescription issued by a medical practitioner acting in the usual course of professional practice or as otherwise authorized by law but instead received them from co-conspirators.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters prosecuted.
# # #
Dallas Man Sentenced to 20 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
DALLAS — This morning, U.S. District Judge Sidney A. Fitzwater sentenced Alejandro Farrera Cendejas, 33, of Dallas, to 240 months in federal prison, following his guilty plea in October 2016 to one count of possession with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Cendejas has been in custody since the time of his arrest in June 2016.
According to plea documents filed in the case, on May 18, 2017 Cendejas met an individual at a public parking lot in Dallas and sold a kilogram of methamphetamine for $6,700.
The Drug Enforcement Administration, Rockwall Police Department, Allen Police Department, and the Texas Department of Public Safety investigated the case.
Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
# # #
Federal Grand Jury Indicts Dallas Attorney and His Assistant for Running Marriage Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas returned a one-count indictment last week charging Bilal Ahmed Khaleeq, a Dallas attorney and his assistant, Amna Cheema with conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Khaleeq, 47, and Cheema, 37, with one count each of conspiracy to commit marriage fraud. If convicted, the count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Khaleeq made his initial appearance in federal court yesterday afternoon, before U.S. Magistrate Judge Horan and was released on supervised release. Cheema is scheduled to appear today before U.S. District Judge Godbey for a detention hearing.
“Immigration attorneys risk severe consequences when they choose to illegally profit by breaking U.S. immigration laws rather than building a profession on following those laws,” said Katrina W. Berger, special agent in charge of HSI Dallas. “HSI leads a Dallas-area Document and Benefit Fraud Task Force, and partners daily with many local law enforcement agencies to enforce immigration laws. HSI and our law enforcement partners will not tolerate immigration fraud — especially by immigration attorneys.”
According to the indictment, in May 2015, Khaleeq intentionally solicited Person A, a naturalized U.S. citizen originally from India, to marry Cheema, a Pakistani national, for the purpose of obtaining lawful permanent residence for Cheema. In exchange for entering into a fraudulent marriage and proceeding through the permanent residence process, Person A received a payment of $745.00 with promises of additional monies upon approval of the Application to Register Permanent Residence or Adjust Status application (Form I-485). Cheema and Person A were married in Dallas County on June 15, 2015. Khaleeq arranged the marriage, advised Cheema regarding the filing of the Petition for Alien Relative (Form I-130) and represented the parties at the interview with the United States Citizenship and Immigration Services (USCIS).
After Cheema and Person A had been married, Khaleeq advised the parties on the preparation of the I-130 petition and supporting documents needed to make the marriage appear legitimate, including but not limited to, joint bank accounts, tax returns, bills concerning their joint residence and other fraudulent evidence including photos. On July 10, 2015, the parties filed Forms I-130 and I-485 with USCIS.
The indictment further alleges, from January 26, 2016, through March 7, 2017, Khaleeq, Cheema and Person A had several discussions regarding the immigration process and the documentary evidence needed to represent Cheema and Person A as a bona fide married couple for the purposes of the immigration benefit. In addition, Khaleeq coached Person A how to address the questions that would be posed during the USCIS interview process. Among other advisals, Khaleeq specifically instructed Person A to tell the USCIS Adjudications Officer that he cohabitated with Cheema even though that was a false statement. Khaleeq also advised Person A to leave some articles of clothing in Cheema’s residence to make it appear that he was residing there. Additionally, the parties discussed filing joint tax returns to provide additional evidence and discussed how long Person A and Cheema should remain married in order for her to obtain her lawful permanent residence.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
# # #
Methamphetamine Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — Juan Leonardo Tello, 50, of Dallas, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor following his guilty plea in March 2017 to one count of conspiracy to distribute five grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge O’Connor sentenced Tello to 180 months in federal prison. Tello has been in custody since the time of his arrest in January 2017.
In May 2017, Judge O’Connor sentenced co-defendants Jackie Eugene Clayton, 38, to 235 months in federal prison, Juan Carlos Lopez, 53, to 100 months in federal prison and Rudy Roman Ramirez, 45, to 135 months in federal prison for their role in the methamphetamine conspiracy.
According to documents filed in Tello’s case, from December 2014 through December 3, 2015, Tello, on multiple occasions, obtained various amounts of methamphetamine to distribute to others. Tello distributed quantities of methamphetamine to numerous customers from Wichita Falls, including Ramirez and Lopez. Tello’s customers paid him for the methamphetamine in cash, by depositing money into bank accounts that Tello controlled, and by wiring money to Tello.
The case was investigated by the Texas Department of Public Safety, the Wichita County District Attorney’s Office, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
# # #
McKinney Man Admits His Role in a $6.4 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — Craig Allen Otteson, 65, of McKinney, appeared today before U.S. Magistrate Paul D. Stickney and pleaded guilty to his role in a diamond investment scheme that the indictment alleged ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Otteson pleaded guilty to one count of mail fraud. He faces a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set before U.S. District Judge David Godbey on October 23, 2017.
Co-defendants Jay Bruce Heimburger, 58, of Dallas, and Christopher Arnold Jiongo, 56, of Houston, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
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.
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. Of the 26 defendants charged since 2013 as part of the BFI; 22 defendants have been convicted, 3 defendants are pending trial, and 1 defendant resulted in a mistrial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
Fort Worth Woman Pleads Guilty in Child Sex Trafficking CaseRead the Press Release
DALLAS — Shatara Armstrong, 31, of Fort Worth, Texas, pleaded guilty today before U.S. Magistrate Judge Paul D. Stickney, to one count of use of a facility of interstate commerce in aid of a racketeering enterprise, announced U.S. Attorney John Parker of the Northern District of Texas.
Armstrong faces a maximum penalty of five years imprisonment and a $250,000 fine. Armstrong will remain on bond pending sentencing which is set for November 1, 2017.
In May 2017 a federal grand jury in Dallas returned an indictment charging Armstrong along with Marquist Fulcher, aka “Keezie,” 28, Chapoleon Fischer, aka “Kidd,” 28, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.
According to plea documents filed in Armstrong’s case, beginning in approximately 2014, Fulcher began acting as a pimp over several young girls and women. He facilitated the commercial sex acts of: fourteen year old Jane Doe 1, seventeen year old Jane Doe 2 and seventeen year old Jane Doe 4, among others. In late 2015, Fulcher asked Armstrong to assist him in his prostitution enterprise, and she agreed to do so. Fulcher and Armstrong rented rooms at various hotels for Jane Doe l, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts. Fulcher and Armstrong 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. On some occasions, when Fulcher was not present at the hotel, the girls and women gave their commercial sex proceeds to Armstrong, who later gave them to Fulcher.
Fulcher and Armstrong worked with other pimps, including Speed and Fischer, as part of their prostitution 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. Some of the victims were recruited from the Dallas area, including sixteen year old Jane Doe 3. Fulcher, Speed and Fischer often rented rooms at the same hotels at the same time for their girls to engage in commercial sex acts. In addition, Armstrong sometimes rented rooms for Fischer and his girls to use to engage in commercial sex acts.
The pimps in this organization often used violence and threats of violence as a means to control the victims. Fulcher was often violent towards Armstrong in front of the girls that were working for him. This violence was meant to send a message to the others about what would happen to them if they did not do what Fulcher asked.
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 and Myria Boehm are in charge of the prosecution.
# # #
Serial Armed Robber Sentenced to 400 Months in Federal PrisonRead the Press Release
FORT WORTH – Nathaniel Roshaun Bowens, 34, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 400 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Bowens was convicted of five counts relating to the robbery of T-Mobile stores following a two-day trial in April, 2017. Specifically, Bowens was convicted of one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of using carrying and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence. Bowens has been in custody since his arrest in January 2017.
According to evidence presented at trial, on October 5, 2015 Bowens entered the T-Mobile store located at 1801 Eastchase Parkway #115, Fort Worth, Texas, and obtained numerous cellular phones and other assorted electronics from the T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On March 7, 2016, Bowens entered the T-Mobile store located at 981 N. Walnut Creek, Mansfield, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On June 28, 2016, Bowens entered the T-Mobile store located at 2205 W. IH-20, Grand Prairie, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On August 29, 2016, Bowens attempted to enter the T-Mobile store located at 3524 Altamesa Blvd, Fort Worth, Texas, to obtain numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm but was unsuccessful.
On September 4, 2016, Bowens attempted to enter the T-Mobile store located at 2209 W. Berry St., Fort Worth, Texas, to obtain numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm but was unsuccessful.
On September 4, 2016, Bowens entered the T-Mobile store located at 3524 Altamesa Blvd., Fort Worth, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
The case was investigated by the FBI, Fort Worth Police Department, Mansfield Police Department, Grand Prairie Police Department, Arlington Police Department, and the Dallas Police Department.
Assistant U.S. Attorneys Brian Poe and Chris Wolfe prosecuted.
# # #
Dallas Man Sentenced to 100 Months in Federal Prison on Firearm ConvictionRead the Press Release
DALLAS — Mark Anthony Esparza, 32, of Dallas, was sentenced last week by U.S. District Judge Sidney A. Fitzwater to 100 months in federal prison, following his guilty plea in September 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Esparza pleaded guilty to one count of convicted felon in possession of a firearm. Esparza has been in custody since the time of his arrest in June 2016.
According to evidence presented at the sentencing hearing, on October 18, 2015, officers with the Dallas Police Department arrested Esparza, who had previously been convicted for aggravated assault with a deadly weapon and robbery, for possessing a .40 caliber pistol. Esparza also possessed heroin and methamphetamine with the firearm.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Dallas Police Department investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
# # #
“Pimp” Sentenced to 293 Months in Federal Prison in Child Sex Trafficking CaseRead the Press Release
LUBBOCK — Dimitrise Lyghts, 23, of Lubbock, was sentenced by U.S. District Judge Sam R. Cummings to 293 months in federal prison, following his guilty plea in March 2017 to one count of sex trafficking of a child related to his pimping a 15-year-old girl in Lubbock, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, at Friday’s sentencing hearing, Judge Cummings ordered that following his custody sentence, Lyghts must serve a 10-year term of supervised release. He must also register as a lifetime sex offender.
Co-defendant Marcelia Sanchez pleaded guilty in November 2016 to one count of conspiracy to engage in sex trafficking of a minor. Judge Cummings sentenced Sanchez in February 2017 to 60 months in federal prison.
“Make no mistake, the horrific crime of trafficking young girls for sex resides in the dark underbellies of even our best communities,” said U.S. Attorney Parker. “Together, we can get survivors the help they deserve, and ensure that traffickers who prey on the most vulnerable among us get the sentences they deserve.”
According to documents filed in the case, in late May 2016, Lyghts contacted a 15-year-old female, “K.M.,” by phone and by Facebook, suggesting that they could “hang out.” On June 3, 2016, Lyghts and a friend of his picked up K.M. and another girl at an apartment in Lubbock. Lyghts provided drugs to K.M., and asked her if she would run an ad on Backpage so they could get a hotel room. She agreed to do it once, and Lyghts ran an ad on K.M. in Backpage. Shortly after the ad was run in Backpage, Lyghts arranged with a man who called in response to the ad, for the man to pick up K.M. and take her to a motel in Lubbock. K.M. was picked up, as had been agreed, and went to the motel with the man, where they engaged in sexual intercourse for the payment of a fee.
Between June 3 and June 7, 2016, K.M., with the assistance and direction of Lyghts and Sanchez, was transported and provided for several male “customers” to engage in commercial sex acts. On several occasions, Lyghts received the payment made for the sex acts performed by K.M. Lyghts also personally drove K.M. to various meetings with men for the purpose of K.M. engaging in commercial sex acts with the men.
Project Safe Childhood (PSC) is a Department of Justice initiative that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The Federal Bureau of Investigation and the Lubbock Police Department investigated the case.
Assistant U.S. Attorney Steve Sucsy was in charge of the prosecution.
# # #
Irving Tax Preparer Sentenced to 35 Months in Federal PrisonRead the Press Release
DALLAS —A tax preparer who operated a tax preparation business in Irving, Texas, was sentenced yesterday for preparing false tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Jane J. Boyle sentenced Hector Gerardo Nunez yesterday afternoon to 35 months in federal prison and ordered him to pay $68,121.06 in restitution. On December 2, 2015 Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.
According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
# # #
Dallas Man Sentenced to 230 Months in Federal Prison for Role in Cocaine ConspiracyRead the Press Release
DALLAS — A Dallas man who admitted to his role in a cocaine conspiracy was sentenced yesterday to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Corey Nelson, 40, was sentenced by U.S. District Judge Jane J. Boyle to 230 months in federal prison following his guilty plea in September 2016 to one count of conspiracy to possess with intent to distribute a schedule II controlled substance. Nelson has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas in June 2015.
According to documents filed in the case, from January 1, 2012 through June 23, 2015, Nelson engaged in a conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine. Nelson purchased multiple kilograms of cocaine and would resell the cocaine he purchased to other individuals involved in the conspiracy.
At yesterday’s sentencing hearing, Judge Boyle held Nelson responsible for 120 kilograms of cocaine.
At the time of Nelson’s arrest a firearm and $12,963 in United States Currency were seized.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal prosecuted.
# # #
Four Individuals Charged in Healthcare Fraud SchemeRead the Press Release
DALLAS — Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
As part of that enforcement, Erik Bugen, 42, Jody Sheffield, 43, Matthew Hawrylak, 41, and Britt Hawrylak, 38, were charged by information for their role in a $36 million fraud scheme involving unnecessary and improperly prescribed toxicology and DNA cancer screening tests which were billed to TRICARE, announced the United States Attorney’s Office of the Northern District of Texas.
Each defendant faces a maximum statutory penalty of 5 years in federal prison and a $250,000 fine.
According to the one-count felony charge filed yesterday, from May 2014 and continuing to July 2017, Bugen, Sheffield, Matthew Hawrylak, and Britt Hawrylak caused false and fraudulent claims to be submitted for health care benefits. The false and fraudulent claims were for toxicology and DNA cancer screening tests that were not legitimately prescribed, not needed, not provided as billed, and which were the product of kickbacks.
Bugen, Sheffield, Matthew Hawrylak, and Britt Hawrylak operated ADAR Group, located in Killeen, Texas solely to achieve the objective of their scheme to defraud and to unlawfully enrich themselves by submitting false and fraudulent claims for health care benefits. Britt Hawrylak operated Tiger Racing Team, located in Fort Worth, Texas and Matthew Hawrylak operated Zorin Holdings, also located in Fort Worth, Texas. The Hawrylak’s received payments from Xpress Laboratories and Progen Lab for referring testing orders for TRICARE beneficiaries. Britt Hawrylak and Matthew Hawrylak then split payments from Xpress Laboratories and Progen Lab between themselves and Bugen and Sheffield.
According to the information filed in the case, Bugen and Sheffield would give Wal-Mart gift cards in exchange for urine and saliva specimens. These specimens were then mailed to Xpress Laboratories and Progen Lab for unnecessary toxicology and DNA cancer screening tests and billed to TRICARE by Cockerell Dermatopathology, a laboratory specializing in the evaluation of dermatologic disorders and located in Dallas, Texas. Bugen and Sheffield disguised the gift cards as a food assistance program for low-income beneficiaries. ADAR Group employees collected urine and saliva samples from as many as 200 beneficiaries per day.
Bugen and Sheffield paid doctors a flat fee per month to sign orders for toxicology and DNA cancer screening tests. The doctors never saw the patients and had no doctor-patient relationship with the patients. Beneficiaries did not receive the results of their tests. ADAR employees obtained signature stamps from the doctors and stamped the doctors’ signatures on testing orders before sending the forms to Xpress Laboratories and Progen Lab. ADAR Group employees also placed false diagnosis codes on TRICARE claim submissions to make it appear that the beneficiary needed the testing. This was done to ensure that TRICARE would accept, and pay, the claim.
Bugen, Sheffield, Matthew Hawrylak, and Britt Hawrylak caused to be submitted to TRICARE, at least approximately $36 million in false and fraudulent claims. TRICARE paid Cockerell approximately $4.8 million as payment for those claims.
The Defense Criminal Investigative Service, Veteran’s Affairs- Office of Inspector General, and Federal Bureau of Investigation, are investigating. Assistant U.S. Attorney Adrienne Frazior is in charge of the prosecution.
# # #
Dallas Man Admits His Role in a $6.4 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — Jay Bruce Heimburger, 58, of Dallas, appeared yesterday before U.S. Magistrate Paul D. Stickney and pleaded guilty to his role in a diamond investment scheme that the indictment alleged ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Heimburger pleaded guilty to one count of mail fraud. He faces a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for October 16, 2017.
Co-defendant Christopher Arnold Jiongo, 56, of Houston, pleaded guilty in May 2017 to one count of wire fraud. Jiongo is scheduled to be sentenced September 11, 2017.
Craig Allen Otteson, 65, of McKinney, is scheduled to plead guilty to his role in the scheme on July 18, 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.
According to the plea documents signed by Heimburger, during the period from February 20121 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.
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.
In plea papers filed with the court, Heimburger admitted that he and Otteson 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. Heimburger also admitted that as part of the scheme to defraud investors, Heimburger and Otteson 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 and Heimburger caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Twenty-six defendants have been charged as part of that initiative; 21 were convicted, one resulted in a mistrial and four are pending trial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
Woman Sentenced to 138 Months in Federal Prison for Her Role in Armed RobberiesRead the Press Release
DALLAS — Tatiana Renee Sallie, 20, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 138 months in federal prison for her role in committing several violent armed robberies with a group in the Dallas area in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Sallie pleaded guilty in November 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Sallie has been in custody since her arrest in April 2016.
Judge Lindsay previously sentenced co-defendants Devonte Aaron Dillard, 25, to 240 months in federal prison; Michael Deshun Holland, Jr., 22, to 220 months in federal prison; Coby Cole Ditto, 22, to 168 months in federal prison; and Trenton Kyle Sirkel, 21, to 24 months in federal prison.
“These people are extremely dangerous,” said U.S. Attorney Parker. “Working with our local and federal partners to take them off our streets is a critical part of this office’s work.”
According to documents filed in the case and information presented in court, Sallie and her co-defendants robbed four convenience stores in April and May 2015. The group displayed a firearm to the store clerk in all four of the robberies.
On April 17, 2015, Sallie waited in the car while Dillard and Holland, armed with a loaded firearm, entered a Chevron Food Mart on Highway 80 in Mesquite, Texas. In the course of robbing the store, Dillard shot the clerk. Holland repeatedly punched the clerk in the face, continuing even after the clerk had been shot.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered a 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered a 7-Eleven store on Gus Thomasson Road in Mesquite. The group brandished a firearm, struck a store clerk in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland. The group brandished a firearm and robbed the store, during which time Holland and Dillard brutally beat the store clerk.
The case was investigated by the Mesquite Police Department, the Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie L. Hoxie and Keith Robinson prosecuted.
# # #
Woman Indicted for Running Health Care Fraud Scheme from PrisonRead the Press Release
DALLAS — Alexis C. Norman, 46, of Midlothian, Texas has been indicted on felony offenses stemming from a health care fraud conspiracy she ran from prison that involved the submission of more than $810,000 in false claims to Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Norman is scheduled to make her initial appearance in federal court on July 14, 2017, before U.S. Magistrate Judge Paul D. Stickney.
On August 4, 2015, Norman pled guilty to one count of health care fraud in connection with a false billing scheme she ran using two companies she owned and operated, Greater Southwest Group, Inc. and Ellis County Community Services. As part of that scheme, Norman used the identities of licensed counselors and Medicaid clients without their knowledge or consent to submit claims to Medicaid for psychotherapy services that were not provided. Norman appeared before a United States District Court Judge for sentencing on April 7 and 8, 2016, and was sentenced to 105 months in federal prison and ordered to pay $2,969,045.97 in restitution to Medicaid. Norman has been in the custody of the Federal Bureau of Prisons since April 8, 2016.
According to the indictment that was just unsealed, Norman ran a similar scheme while she was awaiting sentencing in her prior case, and continued to direct it after she was incarcerated. The indictment alleges that Norman, who is not licensed as a psychotherapist or other mental health provider, controlled and operated two counseling companies, Janus Children Services, Inc. (Janus) and Therapeutic Outreach Services (Therapeutic). As part of the scheme, according to the indictment, Norman and a coconspirator applied for and obtained group Medicaid provider numbers for Janus and Therapeutic. They then obtained the individual Medicaid provider numbers of licensed mental health professionals by soliciting applications for job opportunities on Craigslist but not hiring the individuals who applied. Norman and her coconspirators used these provider numbers, together with the names, dates of birth, social security numbers, and Medicaid numbers of approximately 156 Medicaid clients—mostly minor children—to submit claims for services that were not performed.
As a further part of the scheme to defraud, Norman and a coconspirator opened a bank account and leased office space in Tyler, Texas for Janus. Norman also opened a bank account and leased office space in Waco, Texas, for Therapeutic. Norman selected these locations for office locations to conceal the fraud from the law enforcement authorities in the DFW area that investigated her prior fraud. Other than using the office addresses for various Medicaid applications and submissions, the office spaces in both Tyler and Waco were never occupied or used.
The indictment alleges to conceal the fraud, Norman provided false testimony at her sentencing hearing on April 8, 2016, when she responded “No, sir.” to the question, “Have you ever submitted any claims to Medicaid or a Medicaid managed care organization under a business other than Greater Southwest Group or Ellis County Community Services?” In fact, Norman had submitted numerous false claims to Medicaid under Janus, including $1,575.00 in claims she submitted on April 7, 2016.
Norman is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, and four counts of aggravated identity theft. The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit to the U.S. any property traceable to the offense.
An 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 count of conspiracy to commit health care fraud and substantive health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a $250,000 fine.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit are investigating. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
# # #
Mexican Citizen Sentenced to 144 Months in Federal Prison for the Possession of MethamphetamineRead the Press Release
DALLAS — Alfonso Escobedo Garcia, 36, citizen of Mexico, was sentenced yesterday before U.S. District Judge Sam A. Lindsay to 144 months in federal prison following his guilty plea in October 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Garcia pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Garcia has been in custody since the time of his arrest in March 2016.
According to plea documents in the case, on March 11, 2016, Garcia agreed to deliver 10 kilograms of methamphetamine in exchange for $115,000. Garcia was stopped by a Grand Prairie Police Officer who initiated a traffic stop for failing to come to a complete stop at a stop sign. During the traffic stop, it was determined that Mr. Garcia did not have a driver’s license and he was arrested. An inventory search of the vehicle found more than 500 grams of methamphetamine.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated. Assistant U.S. Attorney George Leal prosecuted.
# # #
Five Sentenced for Robbing the Amarillo Education Credit UnionRead the Press Release
AMARILLO, Texas — Five defendants appeared in federal court this week and were sentenced for their roles in robbing the Education Credit Union in Amarillo, Texas on September 23, 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Sidney A. Fitzwater sentenced Leonard Jovon Coulter, 29, Raul Garcia, 28, and Desire Valverde, 23, this afternoon. Coulter was sentenced to a total of 171 months in federal prison. Garcia was sentenced to a total of 147 months in federal prison and Valverde was sentenced to 97 months in federal prison.
Yesterday U.S. District Judge Fitzwater sentenced Richard Charles Cunningham, Jr., 39, to 169 months in federal prison and Keli Edwards, 35, to 21 months in federal prison.
Cunningham was ordered to pay $26,724.50 in restitution and the remaining defendants were ordered to pay $53,519.50 in restitution, joint and severally.
According to the plea documents, on September 23, 2016, Coulter and Cunningham Jr. entered the Education Credit Union located at 1801 FM 2381, Amarillo, Texas. Coulter approached the teller counter, pointed a firearm at the teller, and told the teller to give him all her money in the drawer. Coulter told the teller to not do or push anything or he would shoot her. The teller
told Coulter the drawers were locked. Coulter jumped the counter, pressed the firearm in the teller’s back, and told the teller to hurry. Coulter got money out of the teller’s drawer, and then he demanded access to the vault. The teller stated she could not access the vault.
The manager was then ordered to come and open the vault. After Coulter took the money from the vault, the tellers and manager were ordered to the ground. Coulter and Cunningham exited the Credit Union with approximately $60,067.
The Federal Bureau of Investigation (FBI) and Potter County Sheriff’s office investigated the robbery. Agents learned through their investigation that Garcia was a get-a-way driver and planned this robbery with Coulter and Cunningham. Later, agents stopped Garcia in his pickup and located $5,020 in United States Currency packaged in Education Credit Union bank bands. Agents also recovered two firearms in Garcia’s vehicle, including the firearm Coulter used during the robbery.
Agents conducted a search warrant on Garcia’s residence. Agents located a backpack that had $23,890 in United States Currency, and some of the bills were packaged with Education Credit Union bank bands.
Later, FBI agents learned that Garcia and Coulter were involved in another Education Credit Union Robbery on May 25, 2016. Agents learned through their investigation that Valverde, an employee of Education Credit Union at the time, helped Garcia plan both robberies by providing Garcia information of how and when to commit each robbery. FBI agents discovered that Valverde was in contact with Garcia by phone during each robbery. On May 25, 2016, Valverde was working as a teller and gave Coulter money from her drawer. Garcia paid Valverde a portion of the money taken from the Education Credit Union robbery on May 25, 2016, for her help.
According to plea documents filed in Edwards’ case, Edwards was Coulter’s girlfriend and was watching out for law enforcement on September 23, 2016, when Coulter and Cunningham entered the Credit Union to commit the robbery. Edwards drove Cunningham away from the Credit Union after the robbery to Garcia’s vehicle. Cunningham, Coulter, and Garcia met at Edwards’ residence prior to the robbery and discussed committing the robbery.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Amarillo Woman Sentenced for $400,000 Airline Travel SchemeRead the Press Release
AMARILLO, Texas — Ai Inthavong Lopez, 37, of Amarillo, Texas, was sentenced this morning before U.S. District Court Judge Sidney A. Fitzwater to 34 months in federal prison following her guilty plea to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater ordered Lopez to pay $426,044.66 in restitution. Lopez was also ordered to report to the Bureau of Prison on August 22, 2017.
According to plea documents, from May 2014, and continuing through November 2015, Lopez participated in a scheme involving the sale of fictitious vouchers for future airline travel.
Specifically, Lopez, and persons acting at her direction, would telephonically contact customers in the United States who were falsely informed that they could purchase a voucher for either a round-trip domestic or international flights. Lopez claimed to customers that she was Stephanie Cancino, and that she received discounts on airline tickets through her employment.
Lopez would persuade some customers of her scheme, who did not know of the fraudulent nature of the scheme, to telephonically contact other customers to purchase airline vouchers for future travel. Customers who purchased vouchers would provide personal information, such as name, email address, phone number, and credit card information to Lopez. Lopez would receive money from customers via the United States Postal Service, PayPal, wire transfers, bank transfers, and credit card payments. Lopez, at times, would use the customer’s credit card to purchase other customers’ flight tickets.
To entice customers, Lopez would contact customers about vouchers for one-day sales or special promotions. Lopez knew actual airline tickets purchased by Lopez cost significantly more than the amount a customer paid to purchase the voucher. Lopez continued to solicit customers by promising vouchers below the market rate. Lopez would often have the customers purchase their airline tickets when they were stranded and Lopez would promise to reimburse the customer for the amount they spent. Several times during the course of this scheme, Lopez provided a check to customers to reimburse them for their loss, but the check would be returned to the customer by the bank due to insufficient funds. Lopez would then stop communication with the customer.
As a result of the scheme, Lopez’s false and fraudulent pretenses, representations, and promises fraudulently induced customers to issue monetary payments to Lopez, and for the benefit of Lopez, resulting in a total loss of approximately $401,955.06.
The Federal Bureau of Investigation and Amarillo Police Department investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
U.S. Customs and Border Protection Officer and Two Others Plead Guilty to 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 pleaded guilty to their roles in a marihuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Shen and Hernandez pleaded guilty to one count of distribution and possession with intent to distribute marihuana. They face a maximum penalty of 5 years in federal prison and a $250,000 fine. Esteve pleaded guilty to one count of misprision of a felony. He faces a statutory maximum of 3 years in federal prison and a $250,000 fine. Sentencing for all three defendants is scheduled for October 23, 2017.
According to plea documents filed in the case, in December 2013, Esteve traveled from Florida to Colorado with Hernandez. While in Colorado, Esteve 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 Shen, who was an officer with the U.S. Customs and Border Protection stationed in Miami, Florida and Hernandez. Shen and Hernandez landed in Denver, Colorado, shortly after midnight on March 15, 2014. 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 for following too closely. The vehicle was a rental car driven by Shen. 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, also a resident of Miami, Florida. 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, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Childress Police Department, Amarillo Police Department, Douglas County, Colorado Sheriff's Office and Castle Rock, Colorado Police Department are conducting the investigation. Assistant U.S. Attorney Sean Taylor is in charge of the prosecution.
# # #
Littlefield Man Pleads Guilty to Role in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 44, of Littlefield, Texas, appeared before U.S. Magistrate Judge D. Gordon Bryant, Jr. this afternoon and pleaded guilty to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lepez pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. He faces not less than 10 years and up to life in federal prison and a $10,000,000 fine. A sentencing date has not been set.
Co-defendants Joseph Raymond Jaramillo, Jr., 30, and Zahir Rivera-Pineda, 27, pleaded guilty earlier this month to their role in the conspiracy and are awaiting sentencing.
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. Inside a hidden compartment located in the closet of the same room, agents discovered the remainder of the bundles containing the recently delivered methamphetamine. Also in the room were two firearms. Agents also located 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 are conducting the investigation. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
# # #
Lewisville Woman Pleads Guilty to the Operation of a Brothel in DallasRead the Press Release
DALLAS — Connie Su Moser, a/k/a “Vivian” and “Song Ye Hong,” 64, of Lewisville, Texas, appeared this afternoon before U.S. District Judge Jane J. Boyle and pleaded guilty to charges related to the operation of the Doll House massage parlor in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Moser pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. She faces a maximum penalty of five years imprisonment and a $250,000 fine. Sentencing is scheduled for October 26, 2017.
Co-conspirator Kum Shugars, 68, pleaded guilty in June 2017 to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. Sentencing for Shugars is scheduled for October 12, 2017.
The other defendant charged in the case, Allen Nash, a/k/a “A-1,” 31, of Dallas, is charged with one count each of sex trafficking of children; transportation of a minor to engage in commercial sex acts; felon in possession of ammunition; sex trafficking through force, fraud or coercion and conspiracy to commit sex trafficking. Nash is scheduled to begin trial on July 17, 2017.
According to plea documents in Moser’s case, between June 1, 2012 and March 1, 2015, Moser engaged in a prostitution enterprise at the Doll House in Dallas, Texas. Moser purchased the Doll House from its previous owner in 2012. Moser would frequently visit the Doll House to pick up money and to check on her managers, including Shugars, as well as her employees. Moser was involved in hiring of the women that worked at the Doll House, and she knew that commercial sex acts were occurring regularly there. Various employees would post ads on the commercial sex website Backpage.com to locate customers for the Doll House, and customers would often respond to the ads either by calling to make an appointment or by walking into the spa. Clients would then arrange to come to the Doll House under the guise of receiving a '”body rub,” but in reality would pay for and receive commercial sex. The clients would pay an initial fee to the spa manager, and then the client would then be taken into a room by one of the female employees, where the commercial sex acts would occur. The employee would receive a “tip” once the commercial sex act had been performed, and the employee would pay a portion of this money back to the Doll House each day.
The Texas Department of Public Safety, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Dallas Police Department, U.S. Postal Inspection Service and the Dallas County Sheriff’s Office – all members of the North Texas Trafficking Taskforce – are investigating the case. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
# # #
Lafayette Woman Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio,” “Karrie,” 37, of Lafayette, Louisiana, was sentenced last week for her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Berrio was sentenced before U.S. District Judge Sidney A. Fitzwater to 78 months in federal prison. Berrio pleaded guilty in March 2017 to one count of conspiracy to distribute a controlled substance.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 27 individuals have now been convicted.
According to plea documents in Berrio’s case, on December 18, 2013, Berrio negotiated to purchase a quantity of oxycodone 30mg pills from co-conspirator Cornelius Robinson, her supplier. Robinson asked for a higher price to deliver the oxycodone to Berrio in Lafayette, Louisiana, and a lower price if Berrio picks up the pills in Houston. Robinson agreed to supply Berrio with oxycodone 30mg at $18.50 per pill, and Berrio agreed to pick up the pills in Houston, Texas. Berrio sought 300 oxycodone 30mg pills with the intent to distribute them at a later time. In addition, Berrio admits to purchasing additional quantities of oxycodone 30 mg pills from Robinson in both March and May of 2014 that she intended to distribute at a later time.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
# # #
Fritch Man Admits 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 pleaded guilty to one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black, who has been in custody since the time of indictment in March 2017, faces a maximum of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is scheduled for October 23, 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 is in charge of the prosecution.
# # #
Amarillo Heroin Trafficker Sentenced to 121 Months in Federal Prison for Possessing More Than 17,000 Grams of HeroinRead the Press Release
AMARILLO, Texas — Jose Emmanuel Morales Rittingger, 29, was sentenced this morning before U.S. District Judge Sidney A. Fitzwater to 121 months in federal prison for possessing with the intent to distribute more than 17,000 grams of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Rittingger pleaded guilty in March 2017 to one count of possession with intent to distribute one kilogram or more of heroin and has been in custody since the time of his arrest in August 2016. Rittingger is a Mexican citizen and was in the United States illegally at the time of the offense. He will be deported after serving his sentence.
Co-defendant Joel Lara Merida, 31, was sentenced earlier this year by U.S. District Judge Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016.
“It is imperative that we reduce the supply of heroin,” said U.S. Attorney Parker. “Drug overdose deaths involving heroin continue to climb sharply, more than tripling in the last four years.”
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
# # #
Lubbock Woman Sentenced for Her Role in Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Jessica Christine Holl, 29, of Lubbock, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 210 months in federal prison for her role in a conspiracy to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Holl pleaded guilty in March 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and furanyl fentanyl.
Co-defendants Sidney Caleb Lanier, 36, and Jamie Marie Robertson, 32, both of Lubbock, Texas, were both sentenced on June 9, 2017. Lanier was sentenced to 135 months in federal prison following his guilty plea in February 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl. Robertson was sentenced to 48 months in federal prison following her guilty plea also in February 2017 to one count of unlawful use of a communications facility.
The defendants have been in custody since their arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl.
“Fentanyl is responsible for a sharp increase in overdoses and deaths across the country and poses a very high risk of death to not only users, but law enforcement and first responders as well,” said U.S. Attorney Parker. “Our local, state and federal partners will continue to push back hard on those who peddle this poison in our communities.”
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
According to documents filed in this case, from approximately January 2013 to October 27, 2016, Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other to intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier supplied Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case was investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
# # #
Hutchins Man Sentenced to 80 Years in Federal Prison for Production of Child PornographyRead the Press Release
FORT WORTH, Texas — Robert Dion Ables, 40, of Hutchins, Texas, was sentenced this morning by U.S. District Judge John McBryde to 960 months in federal prison, following his guilty plea in March 2017 to one count of receipt of child pornography and two counts of production of child pornography. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Ables has been in custody since his arrest in December 2016 on a related federal criminal complaint.
“The sexual victimization and exploitation of these young girls is profoundly sad,” said U.S. Attorney Parker. “It is also, obviously, a serious crime for which the penalties are justifiably significant.”
According to documents filed in the case, in December 2016, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents conducting a child pornography investigation served a search warrant at Ables’ residence in Hutchins, Texas. Ables acknowledged that, beginning in 2014, while he was living in the Fort Worth and Arlington area, he used social media applications such as Kik messenger on his phone to initiate contact with minor females. During his conversations, Ables convinced these females to send nude photographs of themselves.
At times Ables would coerce these females to send additional sexually explicit images by threatening to expose the female’s pictures on social media such as Facebook.
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) and The Royal Canadian Mounted Police, Saskatchewan Internet Child Exploitation Unit (ICE) were in charge of the international investigation. Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Businessman Sentenced to 87 Months in Federal Prison for $4.6 Million Fraud SchemeRead the Press Release
DALLAS —Wesley Michael Woodyard, 66, most recently from Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison for his role in a scheme to defraud Ace European Insurance Company (ACE) located in London, England of more than $4.6 million from approximately 2002 through 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Woodyard pleaded guilty in December 2016 to one count of wire fraud. Woodyard has been in custody since the time of his arrest in Minnesota in June 2016. Judge Fitzwater also order Woodyard to pay $3,943,179 in restitution and serve a three year term of supervised release following his release from federal prison.
According to documents filed in the case, Woodyard owned and operated Ringler Associates of North Texas, Incorporated (RANT). From approximately 1993 through 2015, RANT contracted with Ringler Insurance Agency to act as its agent to sell annuities provided by insurance underwriters whose products were offered for sale through Ringler Insurance Agency.
Ringler Associates, Incorporated (RAI) acted as a parent company for Ringler Insurance Agency and other subsidiaries conducting insurance business on behalf of RAI.
RANT settled insurance claims primarily by selling structured settlements (through annuities) offered for sale through Ringler Insurance Agency. The beneficiaries of these annuities were frequently victims of long term disability related injuries and/or death related to employment. While a policy beneficiary could choose to take a lump sum payment from the insurance company, usually the beneficiary agreed to be compensated through a structured settlement. The annuity would pay the beneficiary a set amount either monthly, quarterly or annually, for an extended period of time, often for the life of the beneficiary. Annuities usually offered the most cost-effective means for an insurance company to pay out a structured settlement. RANT sold annuities available on the open market through Ringler Insurance Agency.
According plea documents, during 2002 through 2013, Woodyard devised a scheme to defraud and to obtain money and property by false and fraudulent pretenses, representations, and promises. Woodyard engaged in a pattern of deceitful conduct and made false representations designed to fraudulently induce representatives of Ace European Insurance Company (ACE) to send 11 wire transfers totaling approximately $4,674,258 to one or more bank accounts controlled by Woodyard. ACE initially sent these funds to companies acting as a third party administrator who then transferred the ACE funds to Woodyard. As charged in the indictment, Woodyard stole $4.6 million which was intended to be used to purchase annuities for beneficiaries of ACE European insurance policies. The beneficiaries directly impacted by Woodyard’s extensive and lengthy scheme were United Nations employees who were either injured or killed in connection with their employment.
Woodyard falsely represented to ACE, as well as third party administrators Roger Rich and Company, and Vanbreda International, that Woodyard intended to lawfully use all funds received from ACE to purchase several life insurance annuity contracts from Metropolitan Life, Incorporated or some other legitimate insurance company. Woodyard also caused ACE funds to be sent from Roger Rich and Vanbreda directly to RANT rather than to the annuity provider and thus denied Ringler Insurance Agency its commission earned for the transaction. Woodyard fraudulently concealed from ACE and others that Woodyard unlawfully used the majority of ACE funds for Woodyard’s own personal financial benefit. As a result of this scheme, from 2002 through 2013, Woodyard fraudulently obtained a total of about $4,674,258 from ACE European Insurance Company.
As charged in the indictment, Woodyard made a total of about $857,626 in so-called “lulling payments” during the period from October 2004 through June 2014. These lulling payments were made by Woodyard in an effort to give beneficiaries the false impression that Woodyard had actually purchased legitimate insurance annuity contracts for these beneficiaries. Woodyard made these lulling payments in order to make detection of his extensive 11 year scheme more difficult. For restitution purposes, Woodyard was given credit for these lulling payments. Including all relevant conduct losses and credits, Woodyard was ordered to pay total restitution of $3,943,179.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — Arslen Ramin Ayeze, a tax return preparer who managed a tax preparation business in Dallas, Texas, appeared last week in federal court in Dallas, before U.S. Magistrate Judge Renee Toliver, and pleaded guilty to one count of aiding and assisting in the preparation of a tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Ayeze, who was remanded to custody following his guilty plea for a violation of his conditions of pretrial release, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for October 11, 2017, before U.S. District Judge Ed Kinkeade.
According to the factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the I.R.S. by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.
The investigation was conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
# # #