Northern District of Texas
Press releases recorded for this federal judicial district.
Federal Jury Convicts Burleson Man of Child Pornography ChargesRead the Press Release
DALLAS — Following a one-week trial in Dallas, Texas, before U.S. District Judge Sidney A. Fitzwater, a federal jury has convicted Daryl Glenn Pawlak, 39, of Burleson, Texas, of two counts of child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Specifically, late Friday afternoon, the jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor. Pawlak faces a maximum statutory penalty of 20 years in federal prison for each count and a $250,000 fine. Following the verdict, Judge Fitzwater remanded Pawlak into custody. Sentencing is set for October 20, 2017.
This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen. Playpen was dedicated to the advertisement and distribution of child pornography. Because Playpen operated as a hidden-services site, it was only available to users of the TOR network. The TOR network allows users and hidden-services sites anonymity by concealing the actual IP addresses of users and hidden-services sites.
Playpen categorized posts containing child pornography within forums and sub-forums according to the victim child’s age, gender, and type of sexual abuse endured, such as “Girls HC,” “Incest,” and “Toddlers.” Many of these posts displayed a preview image of child pornography, a link to download more child pornography, and a password to open the downloaded files. The website itself required a username and password to enter. Approximately 417,000 usernames were registered on Playpen at the time it was removed from the Internet.
Through the course of its investigation, the FBI discovered that the Playpen website was being run from within the United States. The FBI seized the server hosting the Playpen website and made the decision to conduct a limited, monitored, authorized two-week operation to catch individuals who had logged onto the site and clicked on certain posts within the site.
Pawlak was one of the individuals caught as a result of the FBI’s operation. Pawlak registered the username “notsoslow” with Playpen in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.
The government presented evidence at trial showing on the morning of March 4, 2015, the last day of the FBI’s operation, Pawlak logged onto the Playpen site as user “notsoslow,” using his work computer at his house in Burleson, Texas. After clicking on a post within the site, the FBI deployed a network investigative technique (NIT) to “notsoslow’s” computer. The NIT instructed “notsoslow’s” computer to send to the FBI certain identifying pieces of information, including the actual IP address that was connecting the computer to the Internet, the MAC address of the network interface card of the computer, the name of the computer, and the username logged onto the computer.
Computer data captured as a result of the NIT showed that the MAC address, computer name, and username were consistent with having come from a computer that was provided to Pawlak by his employer (Employer One). The actual IP address resolved to Pawlak’s home address in Burleson, Texas. Forensic artifacts from this work computer showed that user “d.pawlak” had logged onto the computer earlier that morning and downloaded WinZip, a program that could be used to decompress files similar to many that were contained in Playpen.
Computer data collected during the FBI’s operation showed that a few minutes after the NIT deployed, user “notsoslow” navigated and clicked on two posts containing prepubescent child pornography, both of which were hosted in the “Pre teen Photos” “Girls HC” section of Playpen. Data from the Playpen server reflected that “notsoslow” had spent approximately 90 minutes logged into the site during the FBI’s two-week operation.
The government also presented evidence that two different work computers that had been assigned to Pawlak by two different employers both contained prepubescent child pornography in files associated with Pawlak’s computer usernames. The computer assigned to Pawlak by Employer One had forensic artifacts reflecting that the TOR browser had been installed, deleted, and reinstalled several times while the computer was assigned to Pawlak. The FBI also found forensic artifacts associated with the Playpen site, as well as file names consistent with child pornography. The jury heard testimony at trial that it appeared that Pawlak had undertaken some efforts to delete evidence of child pornography before returning the computer to Employer One.
On Pawlak’s second work computer, which had been assigned to him for merely three months, the FBI found over 800 images of child pornography and videos of child pornography depicting prepubescent children. Forensics also revealed that software used to wipe a computer’s hard drive was downloaded onto the computer shortly before Pawlak’s employer sent it to the FBI.
The FBI spoke with Pawlak as a part of its investigation. Pawlak confessed that he had been using his work computers to look at child pornography. He told the FBI that he began looking at child pornography sometime in 2012, he used TOR to find child pornography, and estimated that he had spent, on average, approximately half an hour a week on child pornography. Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old.
As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide. At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area. This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI investigated this case. Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch are in charge of the prosecution.
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Dallas Woman Sentenced to 12 Months and 1 Day in Federal Prison for Stealing Government MoneyRead the Press Release
DALLAS — Tasha Lashaun Wilson, of Dallas, was sentenced last Friday by Chief U.S. District Judge Barbara M. G. Lynn to serve a prison sentence of 12 months and one day for theft of government funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Wilson pleaded guilty in July 2015 to one count of theft of government money. Chief Judge Lynn ordered that Wilson be immediately remanded into federal custody at the conclusion of the sentencing hearing. Wilson was also order to pay back the loss to the government, none of which Wilson had attempted to pay back prior to the sentencing hearing.
According to documents filed in the case, on October 24, 2012, the United States Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) received information about a Housing Choice Voucher Program (HCV) tenant believed to have a financial interest in the residence where she was living in Frisco, Texas.
A review of Wilson’s Dallas Housing Authority (DHA) tenant file revealed that she had been a HCV program participant since 2003. It was also determined that Wilson received United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits and Medicaid assistance.
In 2010, Wilson was looking for a place to live while she was a participant in the HCV program. Wilson’s friend agreed to sign up to be an approved landlord in the HCV program so Wilson could live in his house in Frisco, Texas while she remained in the HCV program. As part of the process to be approved as a landlord, Wilson’s friend submitted a direct deposit form into which DHA would deposit money to subsidize Wilson’s rent. This direct deposit form listed a bank account to which both Wilson and her friend were signatories, but the submitted form did not disclose Wilson as a signatory to the account. Wilson told investigators that prior to submitting the direct deposit form, she told her friend that disclosing Wilson as a signatory to the joint bank account would be a problem because it would get her kicked out of the HCV program. Wilson’s friend told her that he would make sure Wilson’s name did not appear on the direct deposit form.
In September of 2010, Wilson completed and submitted an application to have her HCV rental subsidy transferred to her friend’s house in Frisco, Texas. From 2010 through into 2014, DHA deposited money into the joint bank account believing that it was sending money to Wilson’s landlord to subsidize her rent. Instead, Wilson accessed and spent the money at retailers and restaurants. Wilson was required to go through an annual re-certification process through which she was required to report income; Wilson did not disclose to DHA or HUD that she had access to, and was spending money from, the joint bank account. When confronted by law enforcement, Wilson admitted that she actively concealed the joint bank account because she knew that if she had reported it, she would have been kicked out of the HCV program.
An analysis of Wilson’s DHA HAP payments history from November 1, 2010, through February 28, 2014, revealed losses to DHA/HUD totaling $60,073.00. Similarly, an analysis of Wilson's SNAP benefit payments and Medicaid payments made during the same time period reveal losses to the government totaling $7,370.00 and $9,836.37, respectively.
HUD investigated the case. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Houston Pill Mill Operator Sentenced to 51 Months in Federal PrisonRead the Press Release
DALLAS — Fahim Ahmed Khan, 59, of Houston, Texas, was sentenced this morning for his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Khan was sentenced before U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. In addition to his prison sentence, he was ordered to pay a $17,500 fine. Khan pleaded guilty in August 2016 to one count of conspiracy to distribute a controlled substance, namely oxycodone. Judge Fitzwater ordered Khan 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 26 individuals have now been convicted.
According to plea documents in Khan’s case, beginning in January 2013 and continuing through July 29, 2014, Khan, who has never been a licensed medical practitioner, has never held a DEA registration number, and has never been authorized to distribute or dispense oxycodone, a Schedule II controlled substance, obtained oxycodone with the intent to distribute it at a later time.
Khan established relationships with medical professionals and clinic owners, including co-conspirators, Muhammad Faridi and Dr. Richard Andrews of McAllen Medical Clinic in Dallas, Texas, to assist in the illegal distribution of oxycodone. Khan also pursued relationships with prescription ring leaders and agreed to bring patients to clinics and assisted patients in obtaining prescriptions. Khan would then collected between $420 and $600 in cash from each patient who obtained a prescription for oxycodone. The money collected was then distributed among Faridi, Andrews, himself, and office staff.
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.
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Desoto Man Pleads Guilty for His Role in a “Foreclosure Rescue Scheme” That Exploited Vulnerable Homeowners Facing ForeclosureRead the Press Release
DALLAS — Bruce Kevin Hawkins, 52, of Desoto, Texas, appeared in federal court on June 20, 2017 before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Hawkins faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Hawkins has been in custody since the time of his arrest in January 2017. Sentencing has not yet been scheduled.
A federal grand jury in Dallas returned an indictment in December 2016 charging Hawkins 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, and Richard Bruce Stevens, 51, of San Antonio, Texas, are scheduled to begin trial on August 28, 2017. Christina Renee Caveny, 37, of Dallas, pleaded guilty earlier this month. A sentencing date for Caveny will be set at a later date.
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. Hawkins 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, Hawkins 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. Since May 2013, a total of 26 defendants have been charged as part of that initiative. To date, 20 defendants have been convicted, one resulted in a mistrial, and five are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Dallas Man Sentenced to 240 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27 year-old Dallas, Texas, man, Francisco Turrubiartes, who pleaded guilty in April 2016 to one count of production of child pornography, was sentenced this morning by U.S. District Judge Ed Kinkeade to 240 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
“The sexual exploitation and victimization of underage girls, here 13 years old, is a despicable and heinous crime,” said U.S. Attorney Parker. “My office will continue to aggressively prosecute those who engage in this reprehensible behavior.”
According to documents filed in the case, on August 10, 2012, Turrubiartes persuaded, induced and enticed a 13-year-old minor, Jane Doe #3, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Turrubiartes using an alias pretended to be a minor female on Facebook and asked Jane Doe #3 to send nude photos. The offense began when Turrubiartes sent a Facebook message to a 15-year-old minor, Jane Doe #1, using the same alias and asked her to send nude photos of herself. After Jane Doe #1 sent him several sexually explicit photos of herself, Turrubiartes then asked Jane Doe #1 to get Jane Doe #3 to send him naked photos. Turrubiartes threatened to post Jane Doe #1’s nude images all over the internet and tell her mother if she did not get Jane Doe #3 to send him images of her. Following the August 10, 2012 incident, Jane Doe #3 received a Twitter message stating, “send more images or I will post them and tell your mom.” Turrubiartes continued threatening Jane Doe #3 for three years. He also demanded that Jane Doe #1 send sexually explicit photos of her then two-year old niece, and he asked Jane Doe #3 for nude photos of her six-year-old sister.
A search of Turrubiartes computer revealed several Facebook conversations with other people where Martinez asked them to send him nude photos of children.
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 Dallas Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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McKinney Man Pleads Guilty to Fraudulently Obtaining and Cashing $16 Million in U.S. Treasury ChecksRead the Press Release
DALLAS – A McKinney, Texas, man, Moiz Mumtaz Ali, 36, appeared last week before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of failure to develop, implement, and maintain an anti-money laundering program, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ali faces a maximum statutory penalty of 10 years in federal prison and a $500,000 fine. He will remain on bond pending sentencing, which is set for October 13, 2017.
According to plea documents filed in the case, Ali operated, and managed Gateway Newsstands (“Gateway”), located at 700 North Pearl Street, Dallas Texas. The business included a convenience and check-cashing store and was registered as a money service business, with the ability to cash checks for customers and members of the general public. Ali was responsible for Gateway’s check cashing operations and oversaw the day-to-day operations of the store, approved transactions, and maintained control of the business’ bank accounts.
Between December 2010 through June 2012, Ali negotiated and cashed approximately 3,423 United States Treasury checks totaling approximately $16,600,000.00. The vast majority of the checks were addressed to individuals with out-of-state addresses. Most of the checks had been obtained through fraud, either because the checks were based on fraudulent federal tax returns or because the checks had been stolen.
According to the factual resume, Ali failed to require and/or retain copies of any identification documents applicable to the party cashing the Treasury checks or to the payees whose names were on the Treasury checks he accepted and cashed. In those very limited instances in which Ali purportedly required identification and retained a copy of such identification, Ali failed to take any steps to verify whether the identification document was false, fictitious, or counterfeit.
Ali was required to develop, implement, and maintain an effective anti-money laundering program reasonably designed to prevent being used to facilitate money laundering. The program was required to have written policies, procedures, and controls governing the verification of customer identification, the filing of reports as required by law, the creation and retention of records, and responses to law enforcement requests. Ali failed to follow these requirements and took no steps to prevent his store from being used to facilitate criminal activity and launder money.
The case was investigated by Department of the Treasury’s Office of Inspector General, the Internal Revenue Service and the U.S. Secret Service. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
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Dallas Man Sentenced to 54 Years in Federal Prison for His Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Gilberto Gomez, 37, of Dallas, Texas, was sentenced today by U.S. District Judge David C. Godbey to 652 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Gomez was convicted in March 2017, following a four-day jury trial before U.S. District Judge David C. Godbey, on one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, and two counts of possession of a firearm in furtherance of a drug trafficking crime. Gomez has been in custody since his arrest in March 2016.
Co-conspirator Felix Cantu, 30, pled guilty in March 2017 to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Sentencing is set for July 24, 2017.
“Prosecuting armed drug traffickers, like Gilberto Gomez, will continue to be a top priority of our office,” said U.S. Attorney Parker.
The government presented evidence at trial that beginning in November 17, 2015 until March 1, 2016 Gomez and Cantu operated a drug distribution enterprise from Gomez’s residence on Palacios Avenue in West Dallas. After a four-month long investigation, DEA and the Dallas Police Department executed a search warrant on the residence and recovered more than $37,000 in cash and over $40,000 worth of narcotics. To protect his drugs, Gomez installed three-inch steel coverings for the windows and a coded-entry metal gate in the hallway leading to the master bedroom. Gomez travelled to California every two weeks to purchase marijuana. He concealed the newly purchased marijuana in hidden compartments of vehicles and shipped them back to Texas on open-air tractor-trailers. In an effort to keep drugs off the streets in that neighborhood, the U.S. Attorney’s Office is seeking an order to forfeit the house since it was used for the criminal activity.
The Drug Enforcement Administration and the Dallas Police Department investigated. Assistant U.S. Attorneys Rachael Jones and P.J. Meitl prosecuted.
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Abilene Men Receive Hefty Federal Prison Sentences for Sexual Exploiting a 12-Year-Old FemaleRead the Press Release
ABILENE, Texas — Two Abilene, Texas, men, who each pleaded guilty in February 2017 to one count of sexual exploitation of a child, were sentenced today to hefty federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Terrell Orlando Kinchen, 20, and Troy Lee Applin, Jr., 23, were both sentenced by U.S. District Judge Reed C. O’Connor to 240 months each in federal prison.
“What these men did to this 12-year old girl is shocking and despicable,” said U.S. Attorney Parker. “The total depravity displayed by these defendants justifies these sentences.”
According to plea documents filed in the case, between January 1, 2016, and July 7, 2016, Kinchen knowingly employed, used, persuaded, induced, enticed, and coerced, a 12-year-old female, Jane Doe 1, to engage in sexually explicit conduct. Kinchen did so for the purpose of producing a visual depiction of such conduct to mail, ship, or transport to others.
Kinchen and Applin met at Kinchen’s apartment. After arriving at the apartment, Applin used an Apple iPhone, to produce a video of “Jane Doe 1” engaging in sexual explicit conduct with Kinchen. Applin also used the cellular telephone to make a video recording of “Jane Doe 1” engaging in sexual explicit conduct with him in the bathroom of the apartment. After the videos were recorded, they were transmitted over the internet by Snapchat and Facebook. “Jane Doe 1” was twelve years of age at the time.
The 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 U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and Traffick911 investigated the case. Assistant U.S. Attorney Juanita Fielden was in charge of the prosecutions.
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U.S. Attorney Invited to Attend National Summit on Crime Reduction and Public SafetyRead the Press Release
DALLAS — The U.S. Department of Justice will hold the National Summit on Crime Reduction and Public Safety on June 20-21, 2017 in Bethesda, Maryland. The Summit will gather representatives from federal, state, local, and tribal law enforcement, victim and community advocacy groups, and academia to discuss how to best support and replicate successful local violent crime reduction efforts. Speakers will include Vice President of the United States Michael Pence, Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein.
U.S. Attorney John Parker, Grand Prairie Police Chief Steve Dye, and Dallas Police Assistant Chief Paul Stokes will participate in discussions on a variety of topics related to violent crime reduction efforts.
“I’m very excited about this opportunity to listen to our local law enforcement partners and explore how we in the federal sector can further enhance our existing collaboration to reduce crime,” said U.S. Attorney Parker.
In February, the Attorney General established the Department’s Task Force on Crime Reduction and Public Safety. This internal working group is identifying ways that the federal government can best support crime reduction work across the country.
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Lubbock Man Involved in Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Brian Landon Brown, 32, appeared today before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a fentanyl distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Brown’s guilty plea.
According to plea documents filed in the case, on October 17, 2016, Brown was arrested in Lubbock, Texas, on an unrelated arrest warrant. At the time of his arrest, Brown possessed a vial of .291 net grams of Furanyl Fentanyl. Brown admitted that he typically sold several grams of Furanyl Fentanyl per day and that, several months before his arrest, he started selling at least 10 grams of Furanyl Fentanyl per day.
On October 6, 2016, at 2:30 p.m. Brown met a 26-year-old male and sold Furanyl Fentanyl to that individual. Around 4:15 - 4:30 a.m. on October 7, 2016, that same individual was discovered unconscious in a bathroom. At approximately 5:05 a.m. that same day, the individual was pronounced dead. The Lubbock County Medical Examiner (LCME) did an autopsy and determined that the cause of death was drug toxicity from Furanyl Fentanyl. A postmortem forensic toxicology analysis revealed 1.9 ng/mL of Furanyl Fentanyl in the individual’s blood.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The case is being investigated by the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorneys Jeffrey Haag and Russell Lorfing are in charge of the prosecution.
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Owner of Apple of Your Eye Healthcare Services, Inc. Sentenced to 210 Months in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — Wilbert James Veasey, Jr., 65, of Dallas, 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.
Veasey was sentenced by U.S. District Judge Sam A. Lindsay to 210 months in federal prison and order to pay $23,123,897.18 in restitution to Medicare and $506,880.08 in restitution to Medicaid. He has been in custody since February 2016, after violating his conditions of release.
Veasey, along with co-defendants, Jacques Roy, M.D., 59, of Rockwall, Texas; Cynthia Stiger, 54, of Dallas; and Charity Eleda, R.N., 56, of Rowlett, Texas, 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.
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Canadian Man Sentenced to 97 months in Federal Prison for Investment SchemeRead the Press Release
FORT WORTH — Ryan Steve Magee, a citizen of Canada, was sentenced this morning by Senior U.S. District Judge Terry R. Means to 97 months in federal prison and ordered to pay $2,372,573 in restitution, following his guilty plea in February 2017 to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Magee, 34, was indicted in July 2016 on five counts of wire fraud. Magee was arrested in December 2016, and has remained in custody since his arrest.
According to plea documents filed in his case, Magee was a business man and an active day trader in the U.S. stock market. Beginning in 2011, and continuing until the end of 2013, Magee devised and operated a scheme to obtain money by means of false and fraudulent material pretense and representations. Magee solicited and obtained money from victim investors by making false representations about how their money would be invested, how much of their money would be invested, how much their investment was earning, how much money they had in their account, and by making other false statements.
Specifically, J.C. and D.C. decided to invest some of their savings with him. At Magee’s direction, D.C. wired $35,000 to Magee’s account on August 12, 2011. After Magee received the money from D.C., he immediately diverted $25,000 for his own personal expenditures. Magee then deposited the remaining $10,000 into his day-trading account located at Interactive Brokers (IB). Magee sent weekly emails to J.C. and D.C. entitled “Trading Update,” which falsely showed the beginning account principal of $35,000 and the daily gains, even though Magee had diverted $25,000 of the investors’ money to his own personal use.
In November 2011, J.C. and D.C. cashed in J.C.’s 401(k) and wired $240,000 to Magee’s account. After Magee received the $240,000, he immediately diverted approximately $160,000 to his personal accounts, transferring only $80,000 into his IB trading account. Magee again sent weekly “Trading Update” emails claiming to have deposited the entire $240,000 in the IB account. Though he lost approximately $75,000 by the end of the month and his trades for November 2011, were a negative 70 percent, Magee listed 200 percent gains in the weekly “Trading Update” emails he sent to J.C. and D.C, between November 16 2011, and November 30, 2011.
On April 10, 2013, in the final “Trading Updates” email Magee sent to J.C. and D.C., Magee claimed their account balance was over $1.3 million. However, Magee’s IB account statement for the time period ending March 31, 2013, showed that Magee’s IB account had a negative cash balance of $9,578. J.C. and D.C. suffered a total loss of approximately $275,000. Between May 2010 and September 2013, other victims of the fraudulent scheme in the United States and Canada suffered a total loss of approximately $2,097,573.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Nancy Larson prosecuted.
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Mesquite Man Sentenced to Life in Federal Prison for Child Sex TraffickingRead the Press Release
DALLAS — Martavious Detrel Banks Keys, a/k/a “Cheese” and “Matt,” 34, was sentenced this morning by U.S. District Judge David C. Godbey to Life in federal prison for felony child sex trafficking offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Keys was convicted in February 2017, following a three-day jury trial, on two counts of child sex trafficking and one count of sex trafficking through force, fraud or coercion. Keys has been in custody since the time of his arrest in May 2016.
“The absolute horror that these two girls were subjected to is unimaginable and profoundly sad,” said U.S. Attorney Parker. “The total depravity displayed by the shocking nature of this crime justifies this sentence.”
According to documents filed in his case, from approximately March 15, 2015, through April 18, 2015, Keys recruited, enticed, harbored, transported, provided, obtained or maintained two minor females, 15-year-old Jane Doe 1 and 14-year-old Jane Doe 2, causing them to engage in commercial sex acts. In addition, he used force, fraud or coercion to cause Jane Doe 1 to engage in commercial sex acts.
Specifically, Keys placed commercial sex advertisements on Backpage.com for Jane Doe 1 and Jane Doe 2. As a result of the Backpage advertisements, the two minor females engaged in numerous commercial sex acts at Keys’ direction. Keys would negotiate with “clients” over text messages pretending to be the minor females. Jane Doe 1 and Jane Doe 2 worked out of Keys’ residence. In addition, Jane Doe 1 also saw commercial sex clients at various hotels in the Dallas area. Jane Doe 1 and Jane Doe 2 engaged in numerous sex acts a day, sometimes even up to sixteen per day. Keys, who was unemployed, kept all of the proceeds from the commercial sex acts; purchasing various items with the money, including a Chevrolet Tahoe with aftermarket rims.
Keys sexually assaulted and physically assaulted both Jane Doe 1 and Jane Doe 2 during the ordeal. In addition, he threatened Jane Doe 1 with a gun, and threatened both girls with harm if they did not continue to engage in commercial sex acts.
Members of the North Texas Trafficking Taskforce, including the Mesquite Police Department, Department of Public Safety (Garland), U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, and Firearms and Child Protective Services investigated. Assistant U.S. Attorneys Cara Foos Pierce and Myria Boehm prosecuted the case.
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Three Methamphetamine Dealers Arrested on Federal Drug ChargesRead the Press Release
AMARILLO — Three Amarillo residents have been charged by a federal criminal complaint stemming from their role in selling large quantities of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the complaint charges Miguel Angel Bravo-Farias, 41, Hector Terrazas, 25, and Rogelio Xochitl Amparan, 29, with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The three defendants made appearances in federal court this week before U.S. Magistrate Judge Clinton E. Averitte, who ordered them to remain in custody pending the detention hearings set for June 14, 2017.
According to the affidavit filed with the federal complaint, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine. Law enforcement met with Bravo-Farias, an illegal immigrant, and Terrazas at a Denny’s Restaurant located on I-40 in East Amarillo. Bravo-Farias and Terrazas were in possession of a box containing five plastic bags filled with methamphetamine. Bravo-Farias and Terrazas were arrested at the scene.
A search of Terrazas’ residence revealed a white plastic container with crystal like residue, an igloo style container with a crystal like substance, and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were two igloo style containers with liquid substance believed to be liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
The investigation revealed Xochitl Amparan as the head of the methamphetamine distribution operation.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the offense charged in the criminal complaints is a maximum statutory penalty of life in federal prison and a $1 million fine.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, the Potter County Sheriff’s Office, the Texas Department of Public Safety and the Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell is prosecuting.
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San Angelo Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Kelly Turner, 35, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in March 2017 to one count of distribution of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on July 6, 2016, Turner distributed two images depicting a minor female, under the age of eighteen years, engaged in sexually explicit conduct. In addition to the two images, Turner received and possessed hundreds of images and videos depicting minors engaging in sexually explicit conduct, which he intentionally sought out and found on the Internet.
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 prosecutions.
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Pharmacist Charged in Pill Mill Case Sentenced to 24 Months in Federal PrisonRead the Press Release
DALLAS — A licensed pharmacist, Kumi Frimpong, who owned and operated the Cornerstone Pharmacy, located on Bolton Boone Drive in Desoto, Texas, was sentenced this morning for his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Frimpong, 57, of Dallas, was sentenced before U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison and ordered to surrender $41,112 to the United States that constitute proceeds from dispensing oxycodone during the conspiracy. Frimpong pleaded guilty in September 2016 to one count of conspiracy to illegally distribute oxycodone. Frimpong was ordered to report to serve his sentence no later than September 5, 2017.
“Diverted prescription pain pills kill more people in this country than heroin, while simultaneously fueling demand for heroin itself,” said U.S. Attorney Parker. “Eighty percent of heroin users started by abusing prescription pain pills first. Those who divert legitimate drugs from their lawful, therapeutic purposes to illicit, deadly purposes all in the name of money are no better than any other drug trafficker and will be treated accordingly.”
Frimpong admitted that during the conspiracy, which began in January 2013 and continued through July 2014, he and his co-conspirators distributed and caused to be distributed at least 40,000 30mg oxycodone pills in Dallas, and elsewhere that he dispensed based on prescriptions issued in the name and DEA registration number of co-conspirator, Dr. Richard Andrews of McAllen Medical Clinic.
After their arrests in January 2016, Dr. Andrews and co-defendant pharmacists Frimpong and Ndufola Kigham were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and Frimpong and Kigham from dispensing controlled substances. Frimpong and Kigham also surrendered their stock of controlled substances that they had at their pharmacies to DEA.
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 May 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 31 individuals have now been charged. All of the defendants have pleaded guilty.
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.
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Lubbock Fentanyl Distributors SentencedRead the Press Release
LUBBOCK, Texas — Sidney Caleb Lanier, 36, and Jamie Marie Robertson, 32, both of Lubbock, Texas, were sentenced this morning before Senior U.S. District Judge Sam R. Cummings for their roles in a conspiracy to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
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.
Co-defendant Jessica Christine Holl, 29, of Lubbock, Texas, pleaded guilty in March 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and furanyl fentanyl and is scheduled to be sentenced June 30, 2017.
“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.”
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.
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.
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Last Defendant in Heroin, Methamphetamine and Cocaine Distribution Conspiracy Sentenced to 225 Months in Federal PrisonRead the Press Release
DALLAS — Juan Salazar-Sanchez, aka “Mario Ayala Guzman” and “Manuel Barreto-Sanchez,” 50, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 225 months in federal prison for his role in a heroin, methamphetamine and cocaine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Salazar-Sanchez pleaded guilty in October 2016 to one count of possession with intent to distribute cocaine. Salazar-Sanchez has been in custody since his arrest.
“The convictions of Juan Salazar-Sanchez and his co-conspirators are indicative of law enforcement’s continued commitment to fully identify, investigate and bring to justice drug trafficking organizations determined to make a living from those struggling with addiction,” said U.S. Attorney Parker.
Salazar-Sanchez and four others were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Dallas Police Department who were conducting an operation into bulk distribution of crystal methamphetamine and bulk U.S. currency.
All defendants have been sentenced for their roles in the conspiracy to the following:
Uriel Aguirre-Arzate, 21, 180 months
Isidro Romero-Madriz, 20, 70 months
Maricela Mendoza, 20, 11 months
According to documents filed in the case, on June 6, 2016 law enforcement executed a search at a residence on Reynolds Avenue in Dallas, Texas where the four defendants resided. Law enforcement located four loaded firearms and 75.7 grams of methamphetamine in a bedroom used by Salazar-Sanchez. A loaded firearm, 11,703 grams of methamphetamine, 3,354.6 grams of cocaine and 443.5 grams of heroin were located in a bedroom used by Aguirre-Arzate. 25,681.9 grams of cocaine and 1,116.8 grams of heroin were located in another bedroom used by Mendoza and Romero-Madriz. A total of $371,000 was also located in the residence.
The DEA and the Dallas Police Department investigated. Assistant U.S. Attorneys Cara Pierce and Myria Boehm prosecuted.
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Las Vegas Man Sentenced for Interfering with a Flight CrewRead the Press Release
LUBBOCK, Texas — Jerry Ba Nguyen, 25, of Las Vegas, was sentenced today before Senior U.S. District Judge Sam R. Cummings to 36 months in federal custody for interfering with flight crew members and attendants, announced U.S. Attorney John Parker of the Northern District of Texas.
Nguyen pleaded guilty in February 2017 to one count of interference with flight crew members and attendants. Nguyen has been in custody since his arrest in September 2016.
According to plea documents filed in the case, on September 22, 2016 Nguyen was a passenger on American Airlines flight 2542 in route from Ontario, California, to Dallas/Fort Worth International Airport, which was diverted to Lubbock Preston Smith International Airport, after Nguyen, knowingly interfered and attempted to interfere with the performance of the duties of a flight crew member and flight attendant, lessening their ability to perform their duties, by assaulting and intimidating the flight attendant and flight crew member by refusing to comply with instructions from flight attendants.
Nguyen came to the attention of the flight attendants as the plane was leaving the gate in Ontario, appearing agitated and walking toward the front of the aircraft as it prepared to take off. Flight attendants were able to calm him down, and the plane departed. After takeoff, however, Nguyen’s erratic behavior continued; he mumbled that the SIM card had been stolen from his phone and he made suicidal statements. He also stated that the police were not his friends, and the U.S. government was responsible for the September 11, 2001, terrorist attacks.
Nguyen was asked to remain in his seat by the flight crew on multiple occasions, but refused. Flight attendants were so concerned about his behavior that they recruited several passengers to assist with physically restraining Nguyen if it became necessary.
Upon final approach, Nguyen walked to the front of the aircraft and was near the cockpit door. Flight attendants instructed Nguyen numerous times that he needed to be seated for landing, but Nguyen refused to take his seat. Due to Nguyen’s proximity to the cockpit door, the lead flight attendant signaled other passengers to subdue Nguyen.
The Captain declared an emergency and diverted the flight to Lubbock Preston Smith International Airport, where it landed safely. Nguyen was removed from the plane and taken into custody
The Federal Bureau of Investigation, the Transportation Security Administration, the Lubbock Police Department and the Lubbock International Airport Police Department investigated the case. Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Former Arlington Man Sentenced to Life in Federal Prison for Trafficking MethamphetamineRead the Press Release
FORT WORTH, Texas — Baldemar Solis, aka “Balt,” 45, formerly of Arlington, Texas was sentenced today by U.S. District Judge John McBryde to Life in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Solis was convicted of one count of conspiracy to possess with intent to distribute a controlled substance at trial in February 2017. Solis, who had been a fugitive since 2012, has been in custody since the time of his arrest in September 2016.
“Drug traffickers who think they can just skip town when things get hot, be on notice,” said U.S. Attorney Parker. “We have the resources, determination, and patience to find you and bring you to justice, however long that may take.”
Evidence introduced at trial showed that Solis was a multi-kilogram methamphetamine distributor who routinely supplied members of the Aryan Brotherhood of Texas with methamphetamine. Evidence introduced at trial also showed that in approximately June 2012, as law enforcement officers from various agencies began arresting Solis’s co-conspirators, Solis fled the area and remained in hiding in South Texas until his apprehension in September 2016.
According to documents filed in the case, beginning in January 2011 and continuing until June 2012, Solis, along with others did knowingly and intentionally combine, conspire, confederate, and agree to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.
The Arlington Police Department, Tarrant County Narcotics Unit, Grand Prairie Police Department, Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorneys Shawn Smith and Aisha Saleem prosecuted.
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Defendant Sentenced to 150 Months in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
LUBBOCK, Texas — Michael Sebastion Ford, 24 of Lubbock, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 150 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ford pleaded guilty in February 2017 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since December 2016, after the return of that indictment.
Rene Ortiz, 42, also pleaded guilty in February 2017 to the same offense and was sentenced by Judge Cummings to 200 months in federal prison on May 26, 2017.
According to documents filed in the case, on October 25, 2016, officers with the Lubbock County Sheriff’s Office, operating in an undercover capacity, called Ford and reached an agreement for Ford to sell the officers two ounces of methamphetamine for $1,300. The deal was scheduled to take place on October 26, 2016 at a residence located in Lubbock. The undercover officer arrived at the location and spoke with Ford who told the officer that his cousin would be bringing the methamphetamine later on. The undercover officer left the residence and told Ford to notify him when the drugs had arrived. Ford texted the officer a few moments later to tell the officer that the drugs had arrived at the residence. During this time, officers observed a vehicle arrive at the residence and saw Ford approach the front passenger side of the vehicle and talk to the driver. As officers approached the residence, Ford saw them and ducked down next to the vehicle before running into the residence where he was then arrested. Officers approached the vehicle and identified the driver as Ortiz. As Ortiz exited the vehicle, officers observed a bag containing approximately 10 grams of methamphetamine on the driver side floor mat. Officers also found a torn baggie underneath the vehicle that contained approximately 26 grams of methamphetamine and found another 30.4 grams of methamphetamine behind the driver seat. A pistol and ammunition were also found in a shoe box in the back of the vehicle.
The Lubbock County Sheriff’s Office and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Businessman Appointed to Manage VA Funds Admits to Embezzlement SchemeRead the Press Release
DALLAS — Robert Gausman, 54, of Rockwall, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of misappropriation by fiduciary. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Gausman faces a statutory penalty not to exceed 5 years in federal prison and a $250,000 fine. According to the plea agreement, he could also be ordered to pay restitution. Gausman will remain on bond pending sentencing, which will be set at a later date.
According to documents filed in the case, from September 2014 and continuing to October 2016, Gausman was appointed by the Department of Veterans Affairs (VA), through his company “The WACKO Group LLC,” as the Paid Federal Fiduciary (PFF) for four individuals, each veterans who have been deemed incompetent and are receiving benefits from the VA. As a PFF, the VA appointed Gausman to manage the VA benefits of these beneficiaries because they are unable to manage their own finances. Gausman was only entitled to a 4% commission of the funds and permitted to use the money for preapproved expenditures. Gausman knew his role and what was allowed as a PFF, and yet knowingly and willfully embezzled the funds of these four veterans for his own use. In total, Gausman embezzled $40,668 in funds from these four beneficiaries.
The case was investigated by the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution.
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Rowlett Woman Sentenced to 51 Months in Federal Prison for Her Role in a Heroin Distribution ConspiracyRead the Press Release
DALLAS — Brittany Anders, 32, of Rowlett, Texas, was sentenced today before U.S. District Judge Jane J. Boyle for her role in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Anders was sentenced to 51 months in federal prison following her guilty plea in October 2016 to one count of possession with intent to distribute and the distribution of a mixture and substance containing a detectable amount of heroin. Anders has been in custody since his arrest in June 2016.
Anders was charged along with six others with various offenses related to a heroin distribution conspiracy. Of the seven charged, all have pleaded guilty, five have been sentenced.
According to documents filed in the case, on April 27, 2016, Anders met an individual in a McDonalds restaurant bathroom in Garland, Texas and exchanged one-half ounce of heroin for $820.
The Drug Enforcement Administration, Allen Police Department and Rockwall Police Department investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted.
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Former Employee with Non-Profit Group in Dallas Sentenced to Nine Months in Federal Prison for Embezzlement SchemeRead the Press Release
DALLAS — Evetta Galloway Griffin, 49, of Grand Prairie was sentenced this afternoon by U.S. District Judge Jane J. Boyle to nine months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Griffin pleaded guilty in December 2016 to one count of theft or bribery concerning programs receiving federal funds. Judge Boyle ordered Griffin to pay $129,196.48 in restitution. Griffin was ordered to surrender to the Bureau of Prisons on September 6, 2017.
According to documents filed in the case, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.
Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.
As part of the scheme, Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.
The case was investigated by the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). First Assistant U.S. Attorney Chad Meacham prosecuted.
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Houston Man Sentenced to 108 Months in Federal Prison for His Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Joshua Deunte Caldwell, 26, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 108 months in federal prison, following his guilty plea in July 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.
Caldwell pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Caldwell has been in custody since his arrest in September 2015.
Caldwell was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Dominique Pearson, 25, Hilton Murdock Aitch, 56, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, ten have pleaded guilty, one is set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing longsleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Pearson and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Former ICE HSI Employee Ordered to Pay $36,000 for Theft of Government PropertyRead the Press Release
DALLAS — Dwight Horton, 51, a former Mission Support Specialist (MSS) with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Dallas, was sentenced this morning by U.S. District Court Judge Ed Kinkeade, announced U.S. Attorney John Parker of the Northern District of Texas.
Horton, a resident of Grand Prairie, Texas, pleaded guilty in August 2016 to one count of theft of government property. Judge Kinkeade sentenced Horton to a three-year term of probation and ordered him to pay $36,000 in restitution to HSI.
According to documents filed in the case, the investigation began in September 2014 when ICE, Office of Professional Responsibility in Houston received a referral from HSI Dallas indicating that MSS Horton had used a government fleet charge card to purchase automotive supplies without authorization for personal gain.
The investigation revealed that on several occasions, Horton used his government fleet charge card to purchase a set of four tires from at least two tire stores in Dallas, and on each of those occasions, he took the tires with him rather than having them installed on a vehicle. The HSI Dallas facility does not have a maintenance area/shop for mechanics to install tires on fleet vehicles.
The investigation further revealed that Horton used his government fleet charge card to purchase window tint. He also used it to purchase gas at a Tom Thumb in Grand Prairie for his personally-owned vehicles.
Horton resigned from his position at HSI Dallas on October 14, 2014.
The case was investigated by agents with ICE, Office of Professional Responsibility in Houston. Assistant U.S. Attorney Katherine Pfeifle prosecuted.
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Switzerland Man Pleads Guilty to PerjuryRead the Press Release
DALLAS — Rudolf Suter, 66, formerly of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of perjury in federal proceeding under oath. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
In March 2016, Suter failed to show up for a contempt hearing. Suter was then found guilty of civil contempt of court and a civil contempt warrant was issued for his arrest by United States District Judge David C. Godbey. Suter, a citizen of Switzerland, was arrested in December 2016 on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States. Suter has remained continuously in custody since his arrest. He faces a maximum statutory penalty of 5 years in federal prison and a $250,000 fine. Sentencing is set for September 18, 2017 before United States District Judge David Godbey.
According to the plea documents, on January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas. Suter concealed his true financial condition when he filed several bankruptcy related documents. In his plea documents, Suter admitted to making a false statement under penalty of perjury in his filed Statement of Financial Affairs, in which Suter concealed several banks accounts which he recently closed. Some of the concealed bank accounts were closed in December 2013, the month before he filed for bankruptcy. After remaining a fugitive outside the United States for approximately nine months, on December 11, 2016, Suter was arrested as he attempted to re-enter the U.S. at JFK International Airport in New York City.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Suter is the 26th defendant to have been charged as part of that initiative; 18 have been convicted, 1 resulted in a mistrial, and 7 are pending trial.
The Internal Revenue Service Criminal Investigation was in charge of the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Mexican Citizen Sentenced to Lengthy Federal Prison Sentence for Methamphetamine TraffickingRead the Press Release
AMARILLO, Texas — Oved David Valenzuela-Ortega, who admitted trafficking a large quantity of methamphetamine, was sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 324 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Valenzuela-Ortega, 36, a citizen of Mexico, pleaded guilty in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. He has been in custody since the time of his arrest in October 2016. Valenzuela-Ortega will be deported after serving his sentence.
“Working with our state and local partners, as was done here, to drive up the cost of trafficking drugs is a top priority of this office,” said U.S. Attorney Parker.
According to documents filed in the case, on October 26, 2016, a Texas Department of Public Safety trooper was working routine patrol on Interstate 40 in Carson County, Texas, when he stopped at the Loves truck stop in Conway, Carson County, Texas. The trooper observed a vehicle at the gas pumps, and that the driver of the vehicle was having difficulty operating the gas pumps.
The trooper made contact with the driver of the vehicle, Valenzuela, and offered to assist Valenzuela with the pumps. After noticing numerous indicators of possible criminal behavior the trooper asked for consent to search the vehicle. While searching the vehicle, the trooper discovered a duffle bag in the vehicle that contained five cellophane-wrapped bundles. The bundles contained 2,226 grams of methamphetamine.
The Texas Department of Public Safety and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Sean Taylor prosecuted.
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Four Amarillo Methamphetamine Traffickers SentencedRead the Press Release
AMARILLO, Texas — William James Peddicord, 31, Jammie Lee Moore, 45, John-Kiet Dinh Nguyen, 30, and Drew Kendall Frost, 38, were sentenced this week by U.S. District Judge Sidney A. Fitzwater for their roles in trafficking methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Peddicord was sentenced to 240 months in federal prison following his guilty plea in March 2017 to one count of distribution and possession with intent to distribute methamphetamine. Moore was sentenced to 235 months in federal prison following his guilty plea to one count of distribution and possession with intent to distribute methamphetamine in February 2017. Nguyen was sentenced to 100 months in federal prison following his guilty plea to one count of possession with intent to distribute 50 grams or more of methamphetamine in March 2017. Frost was sentenced to 48 months in federal prison following his guilty plea to one count of unlawful use of a communications facility in February 2017. The defendants have been in custody since their arrest in December 2016.
According to plea documents filed relating to Moore, on August 18, 2015, law enforcement executed a search warrant on Moore’s residence located in Amarillo, Texas. Agents located 9 individual baggies of methamphetamine in the kitchen freezer, a baggie of methamphetamine on the kitchen table, and a plastic container with methamphetamine in the bedroom. Two pistols were located in the bedroom under the bed. The net weight of the methamphetamine found at Moore’s residence was 313.63 grams.
According to plea documents filed relating to Peddicord and Nguyen, on May 13, 2015, law enforcement executed a search warrant on Peddicord’s residence located in Amarillo, Texas. When agents entered the residence Nguyen and Peddicord ran out of the back door. Agents observed Peddicord throw a plastic baggie containing methamphetamine when he exited the back door of the residence. Both Peddicord and Nguyen were subsequently arrested. Agents also located several baggies of methamphetamine inside the residence and approximately 10 grams of methamphetamine in Nguyen’s front right pants pocket. A drug ledger was located next to baggies of methamphetamine. The net weight of methamphetamine recovered was 171.6 grams.
According to plea documents filed relating to Frost, on May 5, 2015, an Amarillo Police Department officer approached Frost and another individual who were near a vehicle at the Relax Inn. The officer noticed that Frost and the other individual appeared nervous and they were hiding something. The officer asked for consent to search the vehicle. The officer located a pistol inside the vehicle. Inside a hotel room at the Relax Inn, occupied by Frost, officers located a bag with 40.76 grams of methamphetamine on a night stand in plain view. In addition to the methamphetamine, officers located another pistol and a small amount of marijuana in the hotel room.
The case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Randall County Sheriff’s Office and the Amarillo Police Department. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.
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Dallas Woman Pleads Guilty for Her Role in a “Foreclosure Rescue Scheme” That Exploited Vulnerable Homeowners Facing ForeclosureRead the Press Release
DALLAS — Christina Renee Caveny, 37, of Dallas, appeared in federal court this morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Caveny faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution could also be ordered. Caveny will remain on bond pending sentencing, which is set for September 18, 2017.
A federal grand jury in Dallas returned an indictment in December 2016 charging Caveny and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, and Richard Bruce Stevens, 51, of San Antonio, Texas, are scheduled to begin trial on August 28, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, is scheduled to plead guilty on June 20, 2017.
According to plea documents in Caveny’s case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Caveny and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Caveny and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. With the charges in this indictment, 26 defendants have been charged as part of that initiative. Nineteen have been convicted, one resulted in a mistrial, and six are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Dallas Technology Company’s Former Lead Systems Engineer Pleads Guilty to Mail Fraud and Money Laundering ChargesRead the Press Release
DALLAS — Albert Shih-Der Chang, the former Lead Systems Engineer for a Dallas technology company known as One Technologies, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of mail fraud and one count of money laundering. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Chang, 36, of Fairview, Texas, will remain on bond pending sentencing. The date for the sentencing hearing has not yet been set. Chang faces a maximum statutory penalty of 30 years imprisonment for the mail fraud count and 10 years imprisonment for the money laundering count. Each count provides for the possibility of a fine of up to $250,000. An order of restitution is mandatory under the law, and will be determined at sentencing. The indictment also included a forfeiture allegation that would require the defendant, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the fraud, including his residence in Fairview.
In his Plea Agreement, Chang also agreed to relinquish any ownership interest in property seized from his residence in July 2016, to include several dozen devices such has hard drives, laptops, thumbdrives, servers, and cell phones.
According to the plea documents, from approximately October 4, 2004, through August 15, 2014, Chang worked for One Technologies, initially as its Network/Systems Administrator and later as its Lead Systems Engineer. From approximately July 2008 through August 2014, Chang devised and ran a scheme to defraud One Technologies by causing the company to pay more than $2.4 million as a result of his false and fraudulent pretenses, representations and promises. Chang caused One Technologies to transfer funds, based on material representations, to financial accounts he controlled, and Chang caused One Technologies to purchase products, purportedly for the company’s use, that Chang later converted to his own use.
To carry out his scheme, Chang allegedly created fictitious companies for which he opened bank accounts or PayPal accounts. He rented mailboxes and contracted for virtual offices with mail forwarding services for the fictitious companies. He also created and submitted fictitious purchase requisitions, orders, invoices, and receipts that One Technologies paid.
According to plea documents, Chang acknowledged that the government could prove that he directly caused a loss of at least $2,152,035.60. Also, from approximately April 15, 2013, until May 30, 2013, Chang wired-transferred nearly $300,000 from his joint account at Chase Bank to a title company to purchase a residence on Stone Hinge Drive in Fairview, and that funds transfer involved the proceeds of the fraud.
The FBI was in charge of the investigation and the Fairview Police Department assisted with the arrest. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Sachse Man Sentenced to 96 Months in Federal Prison on Child Pornography OffenseRead the Press Release
DALLAS — Mark Reice Anderson, 62, of Sachse, Texas, was sentenced last week by Chief U.S. District Judge Barbara M.G. Lynn to 96 months in federal prison, following his guilty plea in November 2016 to one count of transportation and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on October 16, 2015, law enforcement executed a search warrant at the residence of Anderson on Maple Shade Ave., Sachse, Texas. An unusually large number of computers and other digital media were found and seized. A search of the computers and other digital media revealed multiple files depicting child pornography, including over 19,000 images of child pornography and 1,000 videos of child pornography.
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 the Federal Bureau of Investigation. Assistant U.S. Attorney Shane Read was in charge of the prosecution.
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North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-kickback Act AllegationsRead the Press Release
North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-kickback Act Allegations
Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.
“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”
“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.
“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General. “It is imperative that we protect taxpayer funds by ferreting out such abuse.”
The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process. After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of the Inspector General.
Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
WASHINGTON – Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.
“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”
“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.
“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General. “It is imperative that we protect taxpayer funds by ferreting out such abuse.”
The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process. After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.
In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of the Inspector General.
Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
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Heroin Trafficker Sentenced to 245 Months in Federal PrisonRead the Press Release
DALLAS — Rolando Benitez, aka “San Luis,” 35, arrested in July 2015 following a law enforcement operation that was led by the FBI, the Dallas Police Department and the Internal Revenue Service Criminal Investigation, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Last week, Benitez was sentenced by U.S. District Judge Jane J. Boyle to 245 months in federal prison. Benitez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute a schedule I controlled substance in October 2016.
According to documents filed in the case, beginning on October 29, 2014 and continuing through February 2, 2015, Benitez and others possessed with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin.
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.
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Four Fort Worth Bank Robbers SentencedRead the Press Release
FORT WORTH — Four Fort Worth bank robbers were sentenced Friday by U.S. District Judge John McBryde for their roles in the November 3, 2016 robbery of a Woodhaven National Bank. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Judge McBryde sentenced Tony Kalumba Tshiansi, 22, to 180 months in federal prison, Justin Corie Murry, 20, to 70 months in federal prison, Tremain Keyon Smith, 22, to 37 months in federal prison, and Nykesciah Danielle Williams, 25, to 37 months in federal prison.
According to documents filed in the case, on November 3, 2016, Williams drove the four defendants to the Woodhaven National Bank located at 6301 North Beach Street, Fort Worth, Texas. Tshiansi advised of the best parking location to avoid detection and entered the bank with Murray. Murray presented a bank robbery note to a bank teller while the others waited. After the bank teller provided money the defendants fled the bank. As they fled the bank, a dye pack contained in the money exploded, rendering most of the money unusable.
The Federal Bureau of Investigation and the Fort Worth Police Department investigated. Special Assistant U.S. Attorney Dan Cole prosecuted.
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Channelview Woman Sentenced in Opioid Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — Bertha Alicia Garcia, 50, of Channelview, Texas, who pleaded guilty to her role in a pill mill operation that operated during parts of 2013-2015, has been sentenced, announced United States Attorney John R. Parker.
Garcia was sentenced last week to 37 months in federal prison by U.S. District Judge Sidney A. Fitzwater, following her guilty plea in October 2016 to one count of conspiracy to distribute a controlled substance, namely Oxycodone. Judge Fitzwater ordered Garcia to surrender to the Bureau of Prisons on July 18, 2017.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Garcia, on offenses related to their participation in a prescription drug distribution conspiracy. In 2016, an additional 7 individuals were charged in superseding indictments. That indictment alleged that from at least May 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 in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
According to documents filed in the case, on August 8, 2013, Garcia and another co-conspirator met with a law enforcement officer acting in an undercover capacity at ABS Medical and Chiropractic clinic on Avenue C in Channelview, Texas. The undercover officer indicated that he wanted to obtain 30mg oxycodone pills and paid the clinic $420 in cash but never met with a medical practitioner and did not have a medical examination. Later the same day, Garcia met the officer at a gas station in Jacinto City, Texas, and delivered a prescription for 90 10mg oxycodone pills. Garcia has never been a licensed medical practitioner, has never held a DEA registration number, and has never been authorized to distribute or dispense oxycodone, a Schedule II controlled substance.
The investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service, 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.
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Amarillo Methamphetamine Traffickers SentencedRead the Press Release
AMARILLO, Texas — Three defendants in two separate cases were sentenced today before U.S. District Judge Sidney Fitzwater for various methamphetamine distribution offenses. U.S. Attorney John Parker of the Northern District of Texas made the announcement.
Judge Fitzwater sentenced Colleen Mossberger, 48, of Joliet, Illinois, to 120 months in federal prison following her guilty plea in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Mossberger has been in custody since the time of her arrest in September 2016.
According to documents filed in Mossberger’s case, on September 13, 2016, two Potter County deputies were working routine patrol on Interstate 40, in Potter County, Texas. The deputies stopped a vehicle for driving in the left lane not passing. The vehicle was occupied by Mossberger and a passenger. Mossberger and the passenger provided conflicting stories about their travels. A search of the vehicle revealed 1,316.7 grams of methamphetamine.
The Drug Enforcement Administration and the Potter County Sheriff’s Office investigated the case.
Oscar Martin Cota, 25, of San Diego, California, was sentenced to 70 months in federal prison following his guilty plea in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Co-defendant Edgar Isaac Castaneda Cota, 25, a citizen of Mexico, was sentenced to 46 months in federal prison following his guilty plea also in February 2017 to the same offense. Both defendants have been in custody since their arrests in December 2016. Castaneda will be deported after serving his sentence.
According to documents filed in the case, on December 10, 2016, a Texas Department of Public Safety (DPS) trooper was working routine patrol on Interstate 40 in Carson County, Texas. The DPS trooper stopped a vehicle for speeding over the limit and the passenger not wearing a seatbelt. The vehicle was occupied by Cota and Castaneda. While speaking with Castaneda and Cota, the trooper noticed several indicators of possible criminal activity. A search of the vehicle revealed 6,698.9 grams of methamphetamine in the passenger side quarter panel. Cota and Castaneda were transporting the methamphetamine from California to Oklahoma in exchange for $1,500 each.
The Texas Department of Public Safety and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Joshua Frausto prosecuted the cases.
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Amarillo Man Sentenced to 97 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
AMARILLO, Texas — James Kenny Crawley, 60, of Amarillo, Texas, was sentenced today before U.S. District Judge Sidney A. Fitzwater to 97 months in federal prison following his guilty plea in February 2017 to one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Crawley was ordered to surrender to the Bureau of Prison on July 18, 2017.
According to documents filed in the case, Crawley used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Crawley located, downloaded and viewed approximately 5,000 images and over 100 videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Ochiltree County Sheriff’s Office, Texas Rangers and Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Vernon Man Sentenced to 144 Months in Federal Prison for Possession of MethamphetamineRead the Press Release
WICHITA FALLS, Texas — Chad Allen Lawson, 34, of Vernon, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 144 months in federal prison for possessing with the intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Lawson pleaded guilty to one count of possession with intent to distribute five grams or more of methamphetamine. Lawson has been in custody since his arrest in December 2016.
According to documents filed in the case, on August 21, 2016, Lawson fled from a Saint Jo Police Department officer who was trying to initiate a traffic stop on the vehicle Lawson was driving. After a lengthy chase, a Texas Department of Public Safety trooper located Lawson’s car in the Bellevue, Texas, area. The trooper then located Lawson hiding behind the Triangle Brick Factory in Henrietta, Texas. When apprehended, Lawson was holding a container that contained a small plastic bag. Upon searching the container, the trooper located 186.87 grams of methamphetamine.
The Texas Department of Public Safety and the Saint Jo Police Department investigated. Assistant U.S. Attorney Mary Walters prosecuted the case.
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Methamphetamine Traffickers SentencedRead the Press Release
WICHITA FALLS, Texas — Jackie Eugene Clayton, 38, Juan Carlos Lopez, 53, and Rudy Roman Ramirez, 45, were sentenced yesterday by U.S. District Judge Reed C. O’Connor following their guilty pleas in February 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 Clayton to 235 months in federal prison, Lopez to 100 months in federal prison and Ramirez to 135 months in federal prison.
Co-defendant Juan Leonardo Tello will be sentenced on June 26, 2017.
According to documents filed in the case, from December 2014 through December 3, 2015, Clayton on multiple occasions distributed varied quantities of methamphetamine to Ramirez and Lopez. Clayton, who lived in Dallas, Texas, during the conspiracy, distributed quantities of methamphetamine to numerous customers from Wichita Falls, including Ramirez and Lopez. Clayton’s Wichita Falls customers usually travelled to Dallas to obtain methamphetamine. Those customers then returned to Wichita Falls to distribute the methamphetamine to their own customers. The quantities that Clayton distributed varied from one ounce to several ounces of methamphetamine worth several thousand dollars.
Ramirez also obtained larger quantities of methamphetamine from co-conspirator Tello, who lived in Dallas. Ramirez picked up methamphetamine from Tello directly and sent Lopez to pick up methamphetamine and transport it back to Wichita Falls for distribution. Ramirez paid Tello in cash and via wire transfers. More than $75,000 in drug proceeds have been identified.
The case was investigated by the Texas Department of Public Safety, the Wichita County District Attorney’s Office, and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
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Colombian Man Pleads Guilty to Escaping from Federal CustodyRead the Press Release
LUBBOCK, Texas — Juan Carlos Marin-Cardona, 47, a citizen and national of Columbia, appeared in federal court today and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to escaping from federal custody in 1994, announced U.S Attorney John Parker of the Northern District of Texas.
Marin-Cardona, who has been in custody since his arrest in April 2017, faces a statutory penalty of not more than 5 years in federal prison and a $5,000 fine. His sentencing will be set at a later date.
According to plea documents filed in the case, on January 22, 1993, the United States District Court for the Southern District of Florida sentenced Juan Carlos Marin-Cardona to 70 months imprisonment for the felony offenses of importation of cocaine and possession with intent to distribute cocaine. Marin-Cardona was later transferred to federal custody at the Eden Detention Center in Eden, Texas.
On November 3, 1994, an Eden maintenance officer went to retrieve Marin-Cardona from the front of the institution but Marin-Cardona wasn’t there. The Eden Detention Center initiated a lockdown and emergency headcount. It was confirmed that Marin-Cardona was not in the Eden Detention Center and had left federal custody without permission. Marin-Cardona was placed on escape status.
Through a diligent investigation by the United States Marshals Service (USMS), deputies located Marin-Cardona living in a foreign county under the name Alexander Rey Marin Cardona. In March 2017, USMS deputies were ultimately able to apprehend Marin-Cardona in Houston, Texas, at the airport.
The United States Marshal Service and the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Houston Man Faces Twenty Years in Federal Prison for His Role in $6.5 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — A Houston man, Christopher Arnold Jiongo, appeared this morning before U.S. Magistrate Judge Paul D Stickney and pleaded guilty to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiongo, 55, faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for September 11, 2017, before U.S. District Judge David C. Godbey.
Co-defendants Craig Allen Otteson, 64, of McKinney and Jay Bruce Heimburger, 58, of Dallas, are scheduled for trial July 17, 2017.
According to plea 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.
During the summer of 2011 through November 2011, Jiongo drafted $50,000 diamond notes which were later used as investment vehicles to generate investment funds. Jiongo, Otteson and Heimburger represented 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. Sometime in the summer of 2011, Jiongo, Otteson and Heimburger realized that the 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. Jiongo, Otteson, and Heimburger then 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. These unauthorized purposes included making several loans totaling approximately $2.4 million to third parties and to Global Reach Industries Limited for purposes not disclosed to or authorized by the investors. Jiongo, Otteson and Heimburger also fraudulently concealed from Worldwide Diamond investors that defendants planned to make an unauthorized $1 million loan of investor funds to Global Reach Industries Limited, a company established and controlled by defendant Jiongo.
During July 2011, Jiongo, Otteson and Heimburger all agreed to fraudulently wire transfer $400,000 of investor funds into several bank accounts designated by Jiongo. In August 2011, all three defendants agreed that defendant Jiongo would cause another $600,000 of investor funds to be wire transferred directly into a trust account controlled by Jiongo.
As a result of this scheme to defraud during the period from about 2011 through 2012, documents reflect that millions of dollars were fraudulently collected from 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. Of the 26 defendants charged as part of that initiative - 17 have been convicted, 1 resulted in a mistrial and 8 are pending trial.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Former Dallas County Supervision Officer Pleads Guilty to Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Irma Carrillo Ramirez, to one count of use of interstate facility to commit travel act. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Delgado faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 14, 2017.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office are in charge of the investigation. Assistant U.S. Attorneys John Kull and Kate Rumsey are in charge of the prosecution.
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Three Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — U.S. District Judge Sidney A. Fitzwater sentenced three defendants, including a doctor, a pharmacist, and the owner of McAllen Medical Clinic, today for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Muhammad Faridi, 41, of Murphy, was sentenced to 108 months in federal prison following his guilty plea in August 2016 to one count of conspiracy to launder monetary instruments.
Dr. Richard Andrews, 64, of Dallas, was sentenced to 96 months in federal prison following his guilty pleas in January 2017 to one count of conspiracy to distribute a controlled substance, namely, Oxycodone, and one count of conspiracy to launder monetary instruments.
Ndufola Kigham, 45, of Arlington, was sentenced to 27 months in federal prison following her guilty pleas in February 2017 to two counts of misprision of felony.
“These diverted prescription pain pills kill more people in this country than heroin, while simultaneously fueling demand for heroin itself,” said U.S. Attorney Parker. “Eighty percent of heroin users started down that dark, steep path by abusing prescription pain pills first. Those who divert legitimate drugs from their lawful, therapeutic purposes to illicit, deadly purposes all in the name of money are no better than any other drug trafficker and will be treated accordingly.”
According to documents filed in the case, from approximately January 2013 through July 2014, Andrews, a doctor of osteopathy, and his co-conspirators, including Faridi, who is not a physician but who owned the McAllen Medical Clinic, distributed and caused to be distributed at least 150,000 30mg oxycodone pills in Dallas. The prescriptions were issued in Andrews’ name and under his DEA registration number. Andrews wrote or signed prescriptions for 30mg oxycodone pills without conducting medical exams of patients, without determining there was a legitimate medical purpose for the prescription, and outside the usual course of professional practice. Sometimes Faridi filled out the prescriptions Andrews had previously signed. Andrews and his coconspirators issued the illegitimate prescriptions to make money.
The proceeds of the drug-trafficking conspiracy consisted of cash payments collected by Faridi and other coconspirators at McAllen Medical Clinic for fake patient visits. Those payments varied per patient, per visit, and were payable only in cash. Andrews received a share of those cash payments
Co-defendant Kigham, a registered pharmacist who owned, operated, and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on illegitimate prescriptions.
In March 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to a prescription drug distribution conspiracy. Andrews, Kigham and Faridi were charged in December 2015 by a superseding indictment. The indictment alleged that from at least May 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 in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies.
The prescription medications were then distributed like street drugs in Texas and Louisiana.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from 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.
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Last Defendant in Methamphetamine, Cocaine and Marijuana Distribution Conspiracy Sentenced to 15 Years in Federal PrisonRead the Press Release
LUBBOCK, Texas — Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison for his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Castillo pleaded guilty in January 2017 to one count of distribution and possession with intent to distribute 50 grams or more of Methamphetamine. Castillo has been in custody since his arrest in June 2016.
Castillo and twelve other West Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
All defendants have been sentenced for their roles in the conspiracy to the following:
Cruz Perez, aka “Travieso,” 41, 327 months
Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months
Evan Cruz Parson, aka “Evan,” 22, 168 months
Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Robert Diaz, Jr., aka “Bobby,” 34, 48 monthsAdrian Rodriguez, 38, 48 months
Johnny Trevino, Jr., aka “Baby John,” 27, 48 months
Crystal Dimas, aka “Babe,” 29, 33 months
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Defendant Sentenced to 200 Months in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
LUBBOCK, Texas — Rene Ortiz, of Lubbock, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 200 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ortiz, 42, pleaded guilty in February 2017 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since December 2016, after the return of that indictment.
Co-defendant Michael Sebastion Ford, 24, also of Lubbock, pleaded guilty in February 2017 to the same offense and is scheduled to be sentenced June 9, 2017.
According to documents filed in the case, on October 25, 2016, officers with the Lubbock County Sheriff’s Office, operating in an undercover capacity, called Ford and reached an agreement for Ford to sell the officers two ounces of methamphetamine for $1,300. The deal was scheduled to take place on October 26, 2016 at a residence located in Lubbock. The undercover officer arrived at the location and spoke with Ford who told the officer that his cousin would be bringing the methamphetamine later on. The undercover officer left the residence and told Ford to notify him when the drugs had arrived. Ford texted the officer a few moments later to tell the officer that the drugs had arrived at the residence. During this time, officers observed a vehicle arrive at the residence and saw Ford approach the front passenger side of the vehicle and talk to the driver. As officers approached the residence, Ford saw them and ducked down next to the vehicle before running into the residence where he was then arrested. Officers approached the vehicle and identified the driver as Ortiz. As Ortiz exited the vehicle, officers observed a bag containing approximately 10 grams of methamphetamine on the driver side floor mat. Officers also found a torn baggie underneath the vehicle that contained approximately 26 grams of methamphetamine and found another 30.4 grams of methamphetamine behind the driver seat. A pistol and ammunition were also found in a shoe box in the back of the vehicle.
An additional 880 grams of methamphetamine was located in the hotel room where Ortiz had been staying.
The Lubbock County Sheriff’s Office and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Investigation into a Drug Trafficking Organization Results in Seven Arrests on Federal Drug Conspiracy ChargesRead the Press Release
LUBBOCK — An investigation into a large scale drug trafficking organization in Hockley and Cochran County, Texas has resulted in federal drug distribution conspiracy charges against seven defendants who are charged in two federal indictments that were returned last week by a grand jury in Lubbock, announced U.S. Attorney John Parker of the Northern District of Texas.
Six of the seven charged defendants were arrested early Tuesday morning in an operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico. Most of the defendants were arrested in the Northern District of Texas and have made their initial appearances before U.S. Magistrate Judge D. Gordon Bryant, Jr. Each was detained pending hearings set in the following weeks. Leopoldo Herrera-Gandara was arrested in the District of New Mexico where he has made his initial appearance and awaits transfer to the Northern District of Texas. Johnathan Navarrette Garza remains in custody in Cochran County on unrelated State charges.
The defendants charged in the two indictments unsealed today include:
Leopoldo Herrera-Gandara, aka “Polo,” 33, of Arch, New Mexico
Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas
Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas
Elias Avitia, aka “Mole,” 20, of Morton, Texas
Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas
Each of these defendants is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Hernandez, Avitia, and Ornelas are also charged with one count each of possession with intent to distribute five grams or more of methamphetamine. Garza is charged in two additional counts, one count of distribution and possession with intent to distribute methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine. Gandara is also charged with three counts of possession with intent to distribute 50 grams or more of methamphetamine.Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas
Nancy Cecilia Martinez, 37, of Levelland, Texas
Nunez-Saenz and Martinez are each charged in a four-count indictment with one count of conspiracy to possess with the intent to distribute methamphetamine and two counts each of distribution and possession with intent to distribute 50 grams or more of methamphetamine.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The conspiracy charges contained in both indictments carry different penalties based on the amount of controlled substance attributable to each defendant, with the greater amounts carrying a maximum statutory penalty of life in federal prison and a $10 million fine, upon conviction.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Dallas Man Sentenced to 14 Years in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Edgar Fallad-Martinez, 29, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Fallad-Martinez was sentenced to 168 months in federal prison. Fallad-Martinez pleaded guilty in August 2016 to one count of possession with intent to distribute a controlled substance.
Fallad-Martinez and eighteen co-defendants were charged in a 12-count indictment charging each defendant with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. All but three of the defendants are also charged with one substantive count of either distribution of methamphetamine or possession with intent to distribute methamphetamine. Two defendants are charged with a firearms offense.
Thirteen of the eighteen defendants have been sentenced. The remaining five defendants will be sentenced in early June.
The investigation into this drug trafficking organization, which operated out of the Pleasant Grove, Seagoville and Balch Springs areas of the DFW metroplex, began in early January 2016. During the investigation, law enforcement has seized more than 6,700 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 Department of Public Safety and the Dallas Police Department investigated. Assistant U.S. Attorney Andrew Wirmani prosecuted.
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Arlington Man Convicted for the Attempted Enticement of a MinorRead the Press Release
FORT WORTH — Following a three-day jury trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Marquis Konrad Streaty, 32, of Arlington, Texas, of the attempted enticement of an individual Streaty believed to be a 13-year-old female, announced U.S. Attorney John Parker of the Northern District of Texas.
Streaty was convicted yesterday on one count of enticement of a child. The offense carries a penalty of not less than 10 years and up to life in federal prison. Sentencing is set for September 5, 2017.
The government presented evidence at trial that on March 2, 2017, through March 9, 2017, Streaty attempted to persuade, induce, and entice a person who had not attained the age of eighteen years, to engage in sexual activity.
On March 2, 2017, Streaty posted an advertisement to an Internet message board website in a section that is commonly used to solicit sexual activity. Part of the advertisement stated, “Just a VERY, VERY discreet early 30’s attractive black male here just looking for a family with a kinky side.” A law enforcement special agent working in an undercover capacity replied to the message asking if Streaty “had any hangups with age.” The agent also stated “Ive got a stepdaughter who likes to play and might be up for a new friend.” Streaty replied “No I don't have any hung ups on age” and “I am interested.” The agent proceeds to tell Streaty “And she is 13, so I get it if that’s too young for you.” Streaty replied, “I am interested in meeting her and you.”
The undercover agent and Streaty continued to email and eventually begin to communicate via text messages. In these communications they discussed meeting during the purported minor’s spring break from school, what kind of sexually explicit acts would take place and the purported minor’s sexual preferences. In a later communication Streaty and the purported stepfather agreed to meet at a Inn and Suites located along Interstate 30 in Fort Worth, Texas. Streaty also agreed to split the cost of the hotel room with the stepfather.
On March 9, 2017 Streaty traveled from his residence in Arlington, Texas, to the Inn and Suites hotel in Fort Worth, Texas. Upon Streaty’s arrival at the hotel, Streaty was intercepted by law enforcement and placed under arrest.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Tarrant County Criminal District’s Office, Digital Forensic and Technical Services Division, investigated the case. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.
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