Northern District of Texas
Press releases recorded for this federal judicial district.
Garland Man Sentenced to 13 Years in Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Mark Isaac Yetter, 34, of Garland, Texas, was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn to serve a total of 13 years in federal prison, following his guilty plea in June 2016 to one count of transporting and shipping of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Yetter has been in custody since his arrest in January 2016.
According to the factual resume filed in the case, Yetter admitted to looking at child pornography for approximately one-and-a-half years. He preferred pornography involving girls between the ages of 12 and 16. Yetter would search the internet using search terms such as “teens” and “young girls,” and would save the images of child pornography to his cellular telephone. Yetter possessed approximately 1,277 images of child pornography and 115 videos of child pornography between his cellular telephone and Dropbox account. Some of the files he collected depict infants and toddlers.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted the case.
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Former Garland Independent School District Executive Director of Human Resources Pleads Guilty to Conspiracy to Falsify Immigration DocumentsRead the Press Release
DALLAS — Victor Leos, 63, of Garland, Texas, appeared in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit false statements in connection with immigration documents, announced U.S. Attorney John Parker of the Northern District of Texas.
Leos faces a maximum penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 28, 2017.
According to plea documents, Leos was employed by Garland Independent School District (GISD), located in Garland, Texas from 1998 to 2013. Leos was responsible for recruiting teachers from Mexico, Central and South America, and the Philippines to fill open teaching positions at GISD. From around 2007 to around 2012, Leos engaged in a criminal conspiracy with outside recruiters to recruit and hire foreign teachers that GISD did not necessarily need. Leos benefited by receiving kickbacks in the form of inflated fees to teach orientation classes, travel, and other forms of remuneration. After the foreign teachers were employed at GISD on H-1B temporary visas, Leos knew they were unlikely to qualify for Form 9089s (Applications for Permanent Employment Certification). To further the conspiracy, Leos knowingly signed and filed falsified Form 9089s with the Department of Labor (DOL) to sponsor the teachers for employment-based permanent resident applications.
Specifically, from August 27, 2012 to December 6, 2012, Leos signed and filed for GISD thirty-eight Form 9089s in which he knowingly made false statements. In each Form 9089, Leos certified that all U.S. workers who applied for the job opening were rejected for lawful job-related reasons when Leos knew this was not the case. To support these false statements, Leos created recruitment reports which contained additional false statements regarding the number of U.S. applicants for the open positions and the reasons for the rejection of the U.S. applicants. Leos had these recruitment reports submitted to DOL to support the falsified Form 9089s that were also submitted.
This was a joint investigation involving U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Department of Labor-Office of the Inspector General, the Department of Education-Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Russell Fusco is in charge of the prosecution, which was assisted by Assistant U.S. Attorney John Kull.
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Statement by U.S. Attorney John Parker Concerning United States v. John Wiley Price and Kathy Louise NealyRead the Press Release
Although I am disappointed in the outcome of this case, my responsibility is larger than the consideration of my subjective views. I must objectively consider the totality of circumstances that the prosecution now faces. Having painstakingly done so, it is my considered judgment that pursuing another trial against Mr. Price will not serve the interests of justice. I have concluded the same is true regarding the pending trial against Ms. Nealy.
My decision today is fundamentally different than the initial decision to seek this indictment and in no way reflects on the soundness of that earlier decision. I have information available to me now that was not available at the time of the indictment and could only be obtained through the trial process. This additional information compels the conclusion that the reasonable, good-faith beliefs we had at the time of indictment regarding our chances for success at trial have been substantially diminished.
The evidence and facts as known at the time of indictment demanded that this office pursue this case. However, while it is our responsibility to seek justice when presented with such evidence, it is never our responsibility to secure a conviction at all costs.
I am extremely proud of the dedicated prosecutors and agents who worked tirelessly on these matters for many years. These public servants discharged their duties with the utmost integrity and never shrunk from the challenges inherent in what everyone knew was going to be a difficult and polarizing trial.
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Houston Man Sentenced to 120 Months in Federal Prison for His Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Dominique Pearson, 25, of Houston, Texas was sentenced yesterday by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison, following his guilty plea in October 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.
Pearson 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. Pearson has been in custody since his arrest in December 2015.
Pearson was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, 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, nine have pleaded guilty, two are 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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Kaufman Man Sentenced to 84 Months in Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Mitchell Weston Miller, 23, of Kaufman, Texas, was sentenced today by U.S. District Judge David C. Godbey to serve a total of 84 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Miller has been in custody since his arrest in August 2016.
According to the factual resume filed in the case, on November 23, 2015, Miller used his email account and the Internet to send and transmit files of minors engaged in sexually explicit conduct.
On December 22, 2015, Miller’s Google mail (Gmail) account uploaded eight images of child pornography. A search warrant for this same Gmail account showed the email account was used to trade child pornography and approximately fifty-five emails contained attachments of child pornography. Miller’s cell phone also contained child pornography.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
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Dallas Man Arrested and Detained for Possessing a Firearm While Under the Influence of MarijuanaRead the Press Release
DALLAS — Adan Israel Salazar, 33, of Dallas, has been charged in a federal complaint with possession of a firearm by a user of a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Salazar was arrested last week on the federal offense, and he made his initial appearance yesterday in federal court where U.S. Magistrate Judge David L. Horan ordered that he remain in federal custody pending trial.
According to the filed complaint, on April 26, 2017, Salazar attempted to drive through a security checkpoint at the Dallas Police Southwest Substation located at 4230 West Illinois Ave, Dallas, Texas. Police Officers at the scene smelled the odor of freshly burned marijuana coming from the vehicle. Salazar exited the vehicle wearing a “Guy Fawkes” mask on the side of his face and a camera around his neck. Salazar was behaving in an unusual fashion by crying and kneeling on his knees. Salazar stated to officers that he “had smoked only marijuana and all of the marijuana was gone. Salazar also stated that he had “come to the station to shoot up the station…to show the world that it can be done...” and... “I want to get rid of things that bother me…”
During a search of Salazar’s vehicle, two 9mm handguns were found in the console. Both pistols had fully loaded magazines and one pistol had one round in the chamber. There were also three additional magazines for a total of 5 magazines and 110 rounds of 9mm live ammunition. In addition, seven grams of marijuana was also found in Salazar’s vehicle contained in a glass mason jar in the backseat under a large “legalize marijuana” protest sign.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is 10 years in federal prison, a $250,000 fine.
The Dallas Police Department is investigating the case.
Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Arlington Man Sentenced to 24 Months in Federal Prison after Pleading Guilty to a $1 Million Scheme to Defraud Home DepotRead the Press Release
DALLAS — Henry Lamon Spruiell, 46, of Arlington, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to serve 24 months in federal prison following his guilty plea in January 2017 to one count of using an unauthorized access device, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lindsay ordered that he surrender to the Bureau of Prisons on July 11, 2017. Spruiell was also order to pay restitution in the amount of $1,139,076.00.
According to documents filed in the case, from June 2013 through January 2016, Spruiell, devised a scheme to defraud The Home Depot, Inc. of money and property.
Beginning in June 2013, Spruiell, or his associates, used a fraudulently obtained Home Depot Tax Exempt ID in Spruiell’s name at various Home Depot retail stores in the Northern District of Texas and elsewhere to obtain sales tax refunds in the form of store credits or cash from Home Depot. They did so by presenting copies of sales receipts acquired by Spruiell from both his own purchases as well as the purchases made by others who used identification information that sent these sales receipts to Spruiell’s email address.
After receiving the refunds, Spruiell, or his associates using Spruiell’s Home Depot Tax Exempt IDs, reused the same copies of the sales receipts by repeatedly presenting them to Home Depot retail stores to obtain repeat refunds on the same receipts. Spruiell obtained refunds at 18 different Home Depot retail stores. The Home Depot has estimated the total refunds in the scheme to be approximately $1,122,357.71 as of January 2016.
The United States Secret Service and Home Depot investigators investigated the case. Assistant U.S. Attorney Joseph Revesz prosecuted.
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Alvarado Man Sentenced to 150 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 53-year-old Alvarado, Texas, man, Jerry Wayne Smith, who pleaded guilty in January 2017 to one count of transporting and shipping child pornography, was sentenced this morning by U.S. District Judge David C. Godbey to 150 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
“Far from a victimless crime, said U.S. Attorney Parker, trading in these sickening images fuels demand for more such images which, in turn, results in more innocent children being horribly victimized.”
According to documents filed in the case, the Dallas Internet Crimes Against Children (ICAC) Unit of the Dallas Police Department (DPD) received information that Smith, a City of Dallas employee, was reported by his co-workers as possessing and viewing child pornography while at his place of employment. DPD interviewed the co-workers, who confirmed they had seen Smith view child pornography on his Apple iPhone while in the employee break room at a City of Dallas facility on September 30, 2016 and again on October 3, 2016.
On October 4, 2016, DPD interviewed Smith at his place of employment. During the interview, Smith retrieved his phone and showed DPD that he browsed images of young children on the internet. A forensic review of the Apple iPhone showed multiple files depicting child pornography and a few video files depicting child pornography. In addition, the Kik application located on the Apple iPhone showed over 800 messages were observed in the application and several messaging strings were observed to have multiple attachments. The forensic review showed approximately 150 messaging exchanges and observed Smith trading files of child pornography in both individual and group messages.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Shane Read prosecuted.
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Mesquite Man Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Guadalupe Segovia, aka “Sleepy,” 44, of Mesquite, Texas was sentenced last week by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison, following his guilty plea in October 2016 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Segovia and eighteen additional defendants, mostly from north Texas, were indicted in June 2016 with various felony offenses stemming from their roles in a methamphetamine distribution conspiracy that operated out of Pleasant Grove, Seagoville and Balch Springs.
Of the nineteen defendants who were indicted, all have pleaded guilty and twelve of those have been sentenced.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement 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.
According to documents filed in Segovia’s case, on February 3, 2016, law enforcement conducted a search of Segovia’s vehicle. Officers located approximately 20 grams of methamphetamine and two firearms. Segovia was responsible for at least 262.48 grams of methamphetamine during the time of the conspiracy.
The Texas Department of Public Safety and Dallas Police Department investigated the case.
Assistant U.S. Attorney Andrew Wirmani prosecuted.
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Texas Syndicate Member Sentenced to Lengthy Prison Sentence for His Leadership Role in Methamphetamine, Cocaine and Marijuana Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Cruz Perez, a/k/a “Travieso,” 41, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 327 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.
Perez, a member of the Texas Syndicate, pleaded guilty in February 2017 to one count of distribution and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of Methamphetamine. Perez has been in custody since his arrest in June 2016.
“Those who choose drug dealing as an occupation take notice,” said USA Parker. “The cost to you of making that choice will be high. Do something else.”
Perez 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).
Of the twelve defendants, eleven have been sentenced for their roles in the conspiracy to the following:
Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Evan Cruz Parson, aka “Evan,” 22, 168 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Crystal Dimas, aka “Babe,” 29, 33 monthsRobert Diaz, Jr., aka “Bobby,” 34, 48 months
Adrian Rodriguez, 38, 48 months
Johnny Trevino, Jr., aka “Baby John,” 27, 48 months
Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, will be sentenced later this month.
According to plea documents filed in Perez’s case, on October 3, 2015, Perez distributed and possessed with the intent to distribute 50 grams or more of methamphetamine. The investigation revealed that late that morning, Perez called Christopher Lee Gonzales and discussed Gonzales obtaining a quantity of methamphetamine from Perez. Perez advised that he’d have his nephew, Jose Gutierrez, III, bring it to Gonzales. At approximately 12:05 p.m., Perez called Gutierrez and told him that he needed to come back to Lamesa, Texas. Perez then texted/called Alexander Mendoza, who stored the methamphetamine for Perez, and instructed Mendoza to bring “The two that were left and the one that you got yesterday” and “also another 9.” At approximately 5:55 p.m., Perez and Gonzales discussed that Gonzales owned Perez approximately $21,000 for past drugs and that Gonzales was having trouble selling Perez’s methamphetamine because other dealers were selling a better quality methamphetamine for a cheaper price. Perez and Gonzales then discussed where to do the drug transaction.
Special agents with the DEA who were conducting surveillance in Lamesa observed a 2003 Chevrolet Tahoe, known to be driven by Gutierrez, traveling toward Lubbock. Agents maintained surveillance until approximately 8:35 p.m. when a Texas Highway Patrol trooper stopped Gutierrez in Lubbock and found he was transporting approximately 500 grams of methamphetamine.
That evening, Gutierrez’s wife called Perez and told him that “Joey” texted her at 8:40 p.m., saying that he got “pulled over in Lubbock.” She called Perez and told him, “He went to jail.” When she called Perez at 9:19 p.m. and told him, “he got caught,” Perez asked, “With it? With the stuff?” She responded affirmatively. At approximately 9:11 p.m., Perez called Parson and told him, “Baby Joey went to jail,” referring to Gutierrez being arrested with the methamphetamine. Then, at approximately 9:23 p.m., Perez called Gonzales and told him, “He didn’t make it.”; referring to Gutierrez being arrested with the methamphetamine.
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Dallas Man Sentenced to 108 Months in Federal Prison for His Role in a Heroin Distribution ConspiracyRead the Press Release
DALLAS — Rene Rodriguez, 31, was sentenced yesterday before U.S. District Judge Jane J. Boyle for his role in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Rodriguez was sentenced to 108 months in federal prison following his guilty plea in September 2016 to one count of possession with intent to distribute and the distribution of a mixture and substance containing a detectable amount of heroin. Rodriguez has been in custody since his arrest in June 2016.
“I’ve repeatedly said that law enforcement will push back hard on those who peddle this poison in our communities and destroy lives,” said U.S. Attorney Parker. “We intend to continue making the costs of choosing drug trafficking as a career as high as possible.”
Rodriguez was charged along with six others with various offenses related to a heroin distribution conspiracy. Of the seven charged, all have pleaded guilty, four have been sentenced.
According to documents filed in the case, on April 15, 2016, Rodriguez sold one ounce of heroin in exchange for $1,250 from the ANR Smoke Shop, in Dallas, Texas.
On June 2, 2016, law enforcement agents executed a federal search warrant at Rodriguez’s home in Dallas. The agents found approximately four ounces of heroin, digital scales with heroin residue, two firearms, miscellaneous ammunition, and approximately $10,913.00.
The Drug Enforcement Administration, Allen Police Department and Rockwall Police Department investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted.
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Fort Worth Man Sentenced to Lengthy Prison Sentence for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Jake Lindsey Hardin, a/k/a “Cash,” 33, was sentenced last week by U.S. District Judge John McBryde to 240 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Hardin pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Hardin was a fugitive for six months before his arrest in November 2016.
In between April and August 2016, 80 defendants were charged in drug conspiracy cases related to this one, including some members and associates of the Aryan Brotherhood of Texas prison gang.
According to plea documents, in 2014 and 2015 Hardin received ounce quantities of methamphetamine from other co-conspirators often on consignment. In turn, Hardin distributed methamphetamine to various customers in the Fort Worth, Texas area.
The Drug Enforcement Administration (DEA), U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fort Worth Police Department, the Texas Department of Public Safety (DPS), and the Bureau of Alcohol, Tobacco, and Firearms (ATF) investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted the case.
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Two Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Lee Robertson, 33, and Tasmin Stewart, a/k/a “Taz,” 30, both of Baton Rouge, Louisiana were sentenced today by U.S. District Judge Sidney A. Fitzwater stemming from their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater sentenced Robertson to 84 months in federal prison following his guilty plea to one count of conspiracy to distribute a controlled substance, namely, Oxycodone in October 2016. Stewart was sentenced to 27 months in federal prison following his guilty plea to one count of unlawful use of a communication device in April 2016. Both defendants have been in custody since their arrests.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Stewart, on offenses related to his participation in a prescription drug distribution conspiracy. Robertson was charged in January 2016 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.
According to plea documents filed for Stewart, on October 21, 2013, Stewart made a telephone call to confirm that he wanted 30mg oxycodone pills and would be ready to meet a courier arriving from Dallas with the pills. Stewart intended to distribute these pills to his own customers.
According to documents filed for Robertson, on February 27, 2014, Robertson contacted co-conspirator and supplier Cornelius Robinson seeking 30mg oxycodone pills. Robertson offered to buy all the pills Robinson had for $16.00 per pill. Robinson responded by telling Robertson that he was waiting on an individual to arrive from Dallas with approximately 700 pills. On March 3, 2014, Robertson agreed to buy 500 30mg oxycodone pills from Robinson.
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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San Angelo Man Sentenced to 148 Months in Federal Prison on Child Pornography and Cyberstalking ConvictionsRead the Press Release
LUBBOCK, Texas —Rodrigo Ramiro Menchaca, 27, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 148 months in federal prison, following his guilty plea in January 2017 to one count of stalking and one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
“Victimizing someone, particularly a child, from one’s computer may seem easy and low-risk,” said U.S. Attorney Parker. “But my office will do everything in our power to raise the cost to those who engage in such despicable behavior.”
According to documents filed in the case, between October 30, 2015 and November 7, 2015, Menchaca engaged in a series of communications with a minor female who resided in Virginia. Menchaca used a mobile application called Kik to communicate with the girl. During these Kik communications, Menchaca sent the girl various photographs that she had posted on other social networking accounts. The photographs were not sexual in nature, but were sent by Menchaca to the girl with the false representation that they had been shared with Menchaca by the girl’s father. Menchaca’s messages to the girl were sexually explicit.
In addition, between August 4, 2012 and October 28, 2016, Menchaca placed material on a thumb drive which he knew constituted images and videos of minors engaged in sexually explicit conduct, and he kept that thumb drive in his possession.
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), the San Angelo Police Department and the Fluvanna County Sheriff’s Office in Fluvanna, Virginia. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Lubbock Man Sentenced to 71 Months in Federal Prison on Firearm ConvictionRead the Press Release
LUBBOCK — Jose Augustine Hernandez, 32, of Lubbock, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in January 2017, announced U.S. Attorney John Parker of the Northern District of Texas.
Hernandez pleaded guilty to one count of convicted felon in possession of a firearm and ammunition. Hernandez has been in custody since the time of his arrest in April 2016.
According to documents filed in the case, on April 5, 2016, an officer with the Lubbock County, Texas, Sheriff’s Office responded to a vehicle obstructing a roadway just outside the City of Lubbock. The driver and sole occupant was identified as Hernandez. Hernandez told officers he had run out of gas. While speaking with Hernandez, the officer noticed the butt of a shotgun between the console and front passenger seat of the vehicle. The officer asked Hernandez, who had previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to step out of the vehicle and the officer noticed the smell of marihuana coming from inside the car. Hernandez admitted to smoking marihuana inside the vehicle. Hernandez was found to have outstanding warrants and was placed under arrest. The officer then searched Hernandez and located several baggies containing methamphetamine in Hernandez’s pocket. Hernandez was also in possession of a cell phone that contained several text messages related to the purchase and sale of narcotics. The officer also located approximately twenty-two 20-gauge shotgun shells inside the vehicle.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Lubbock County Sheriff’s Office, and Lubbock Police Department investigated the case. Assistant U.S. Attorney Sean Long prosecuted.
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Dallas Woman Sentenced to 24 Months in Federal Prison for Defrauding the IRS with an Aggravated Identity Theft SchemeRead the Press Release
DALLAS — Alicia Gardner, 43, of Dallas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison for aggravated identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.
Gardner pleaded guilty to one count of aggravated identity theft. Judge Fitzwater ordered Gardner to surrender to the Bureau of Prisons on June 20, 2017. Gardner was also ordered to pay $384,391.99 in restitution to the Internal Revenue Service.
According to documents filed in her case, from approximately January 11, 2013 to March 1, 2013, Gardner knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS). More specifically, Gardner electronically filed tax returns for the tax year 2012 with her EFIN under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent. At her consent, the IRS issued refund checks to her as opposed to the unsuspecting taxpayers. Some of those checks were in the taxpayer’s names. Gardner and/or her unindicted coconspirator then proceeded to forge the signatures of the taxpayers on the refund checks and cash them. For instance, on November 11, 2013, Gardner electronically submitted a tax return with a refund request of $1,112 for K.V., without K.V.’s knowledge or consent. Gardner then endorsed and cashed the refund check.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted.
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Dallas Man Sentenced to 240 Months in Federal Prison for Distributing Child PornographyRead the Press Release
DALLAS, Texas — Christopher Dale Gann, 30, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison, following his guilty plea in December 2016 to one count of distribution of a visual depiction of a minor engaged in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Gann has been in custody since the date of his arrest in October 2016.
According to plea documents, on August 22, 2016 law enforcement encountered Gann in Dallas, Texas. Gann was in possession of a cellular phone as well as three memory cards. A forensic examination of Gann’s phone revealed the presence of a still image of a minor engaged in sexually explicit conduct. Gann communicated that same day with an individual on the Kik Instant Messaging application and sent the image from his phone.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Dallas Man Sentenced to 110 Months in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Al Torrell Beasley, a/k/a “Rody,” 39, of Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 110 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Beasley and twenty additional defendants, mostly from north Texas and Oklahoma, were arrested in May 2015 in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force.
Of the twenty-one defendants who were indicted, 19 have pleaded guilty and 16 of those have been sentenced. Charges against one defendant were dismissed, and one remains a fugitive.
According to documents filed in the case, on several occasions between January 2013 and May 2015, Beasley possessed with the intent to distribute and distributed cocaine base in the Dallas area for co-defendant Roger Jackson from an apartment complex on Peabody Road in Dallas. Beasley often used a cellular telephone to discuss, negotiate, and facilitate drug transactions with his co-conspirators, which were his source of supply and/or customers.
During the period that the conspiracy was ongoing, Beasley possessed with the intent to distribute and/or distributed 189.75 grams of a mixture or substance containing a detectable amount of cocaine base and 148.75 grams of cocaine.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Phelesa Guy prosecuted.
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Dallas Man Arrested on Federal Child Sex Trafficking ChargeRead the Press Release
DALLAS, Texas — Johnathon Deontre Smith, 25, of Dallas, is in federal custody on a sex trafficking of children charge outlined in an indictment filed earlier this week, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith made his initial appearances today before U.S. Magistrate Judge Paul D. Stickney. A detention hearing is scheduled for May 11, 2017.
The indictment alleges that from January 23, 2017 through February 6, 2017, Smith recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized, and solicited Jane Doe, a female under the age of 18 years old, to engage in commercial sex acts.
A defendant is entitled to the presumption of innocence until proven guilty. However, if convicted, the maximum statutory penalty for each of the offenses charged is life in federal prison and a $250,000 fine.
The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.
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Coleman, Texas Man Sentenced to 71 Months in Federal Prison on Firearm and Drug ConvictionsRead the Press Release
LUBBOCK — Calvin Joel Polk, 50, of Coleman, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in January 2017, announced U.S. Attorney John Parker of the Northern District of Texas.
Polk pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of convicted felon in possession of firearms and ammunition. Polk has been in custody since the time of his arrest in December 2016.
According to documents filed in the case, on June 20, 2016, officers with the Coleman, Texas, Police Department responded to a domestic disturbance call. Officers arrived at the scene and made contact with Polk. Polk told officers that there was a female in the residence and officers entered the residence to check her welfare. While speaking with the female, officers noticed in plain view a clear plastic bag containing suspected methamphetamine. The female stated the substance belonged to Polk and he was placed under arrest. After being handcuffed, Polk ran from the officers and was eventually detained and taken to the Coleman Police Department. The female remained at the scene and gave officers consent to search the residence for other contraband. Officers located suspected methamphetamine in various locations in the residence. Officers also located digital scales and other items consistent with the sale of methamphetamine. The Texas Department Public Safety Crime Lab tested a portion of the substance and it showed positive for methamphetamine and weighed a total of 38.65 grams.
The female also told officers that Polk, a person who had previously been convicted of a crime punishable by a term of imprisonment exceeding once year, had several firearms in the residence. Officers located 6 firearms and approximately 263 rounds of .22 caliber ammunition.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Coleman Police Department investigated the case. Assistant U.S. Attorney Sean Long prosecuted.
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Defendant Sentenced to 14 Years in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
AMARILLO, Texas — Juan Daniel Mares, 40, of Amarillo, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 168 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.
Mares pleaded guilty in January 2017 to one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since his arrest on September 13, 2016.
According to documents filed in the case, on September 10, 2015, Mares agreed to meet with an undercover Texas Department of Public Safety agent, at a Walmart store in Canton, Texas, and sell him one pound of methamphetamine.
After the undercover agent arrived at the parking lot of the Walmart store, Mares got into the agent’s vehicle and gave the agent a shoebox containing 446 grams of methamphetamine, the agent in turn gave Mares $6,100.
The Texas Department of Public Safety, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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U.S. Attorney Parker Hosts Bi-Annual Community Council MeetingRead the Press Release
DALLAS —U.S. Attorney John Parker of the Northern District of Texas hosted a bi-annual meeting of the U.S. Attorney’s Community Council in Dallas last week. A group of community leaders which include law enforcement, civil rights, faith-based groups, and other organizations throughout north Texas convened to foster understanding and communication among people with varied perspectives, but with common interests.
“This council gathers in recognition of the fact that we have much more in common than divides us,” said U.S. Attorney Parker. “We have different experiences and perspectives, the respectful sharing of which is important in building trust and stronger communities.”
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Dallas Man Sentenced to 14 Years in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Last week, U.S. District Judge Sidney A. Fitzwater sentenced Roger Deundrea Jackson, a/k/a “Boo-Cat” and “Cat,” 40, of Dallas, to 168 months in federal prison, following his guilty plea in November 2015 to two counts of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Jackson and twenty additional defendants, mostly from north Texas and Oklahoma, were arrested in May 2015 in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force.
Of the twenty-one defendants who were indicted, 19 have pleaded guilty and 15 of those have been sentenced. Charges against one defendant were dismissed, and one remains a fugitive.
According to documents filed in the case, on several occasions between January 2013 and May 2015, Jackson possessed with the intent to distribute approximately 188 grams of cocaine and approximately 295 grams of cocaine base in the Dallas area.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Phelesa Guy prosecuted.
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U.S. Attorney John Parker Releases the Following Statement Following the Verdict of the John Wiley Price, Et Al. TrialRead the Press Release
DALLAS - First, I want to thank the dedicated women and men of the jury for their extraordinary service during this long and difficult process, announced John Parker, U.S. Attorney for the Northern District of Texas.
I will be convening with the prosecution team over the next several days regarding where we go from here, consistent with the court’s timeline.
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Fort Worth Man Convicted by Federal Jury of Being a Felon in Possession of a FirearmRead the Press Release
FORT WORTH — Following a two-day trial before U.S. District Judge Reed C. O’Connor, a federal jury convicted Terry Dixon, 42, of Arlington, earlier this week of one count of felon in possession of a firearm and ammunition, announced U.S. Attorney John Parker of the Northern District of Texas.
The possession count carries a maximum statutory penalty of 10 years in federal prison. Dixon has been in custody since his arrest in September 2016. Sentencing is set for August 14, 2017.
According to evidence presented at trial, on September 15, 2016, Arlington Officers were dispatched to an East Abram Street bar where Dixon was causing a disturbance in the parking lot with a firearm. As Officers arrived, they saw Dixon sitting in a white four-door Cadillac in the bar’s parking lot. Officers ordered Dixon to get out of his car multiple times. Dixon got out of his car and began walking in the parking lot with one hand in his pocket. Officers lost sight of him for a few seconds before regaining sight of him and ordered Dixon to get his hand out of his pocket. Dixon refused. The Officers warned Dixon that if he continued to disobey their commands, they would deploy a Taser to gain compliance. Due to Dixon’s continued non-compliance and the potential firearm threat, Officers deployed a Taser, which allowed them to subdue Dixon and safely detain him.
While detained, Dixon told the Officers he had .357 Magnum gun in his car and claimed to have a permit for it. Unable to find a gun in his car, the Officers searched the area where they had lost sight of Dixon, and observed a bar stool behind a gate and fence. A Taurus, .357 caliber revolver, loaded with five (5) rounds of .357 magnum ammunition was located on the roof of the building. The Officers checked Dixon’s background and learned he was a convicted felon. They placed Dixon under arrest for unlawful firearm possession and a search uncovered thirteen rounds of Armscorp .357 magnum ammunition in his pocket, which matched the ammunition in the revolver.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated. Assistant U.S. Attorneys Frank Gatto and Shawn Smith prosecuted.
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DEA Prepares for Prescription Drug Takeback DayRead the Press Release
DALLAS - U.S. Attorney John Parker wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take-Back Day on Saturday, April 29, 2017.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. To locate a collection site near you, go the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
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Greenville, Texas, Man Sentenced to 10 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Bryan Wayne Edwards, 35, of Greenville, Texas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 120 months in federal prison, following his guilty plea in November 2016 to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Edwards has been in custody since his arrest in July 2016. Eleven defendants, mostly from Hunt County, Texas, were charged in a federal indictment in July 2016 with one count of conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and one substantive count of distribution of methamphetamine each.
Co-defendants Garry Wayne Pollard, aka “GW,” Maria Del-Consuelo Ulloa, aka “Shelley,” Felipe Antonio Bernal, aka “Flip,” Jody Lynn Brewer, Nichole Mechelle Manifold, Bryan Wayne Edwards, aka “Cowboy,” Michael Lee Shaw, Jayson Glenn Cooke, John Willis Smith, aka “Big J,” and Judith Ann Rutledge, have all pleaded guilty to their role in the conspiracy.
Bobby James Carroll, is awaiting trial.
According to plea documents in the case, on April 25, 2014 Edwards sold approximately 20 grams of methamphetamine.
The Federal Bureau of Investigation, the Greenville Police Department and the Hunt County Sheriff’s Office investigated with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Rockwall County Sheriff’s Office, and the Plano and Denton Police Departments.
Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Dallas Woman Sentenced to 210 Months in Federal Prison for Role in Violent Kidnapping AttemptRead the Press Release
DALLAS — A Dallas, Texas, woman, Melissa Trevino, 23, was sentenced today before U.S. District Judge Jane J. Boyle to 210 months in federal prison for her involvement in an attempted kidnapping, announced U.S. Attorney John Parker of the Northern District of Texas.
In November 2016, Trevino pleaded guilty to one count of conspiracy to commit kidnapping. Trevino has been in custody since the time of her arrest in September 2016. Trevino was in the U.S. illegally at the time the offense was committed and will be deported after serving her sentence.
Earlier this month, co-defendant Javier Martinez was sentenced to 480 months in federal prison and Indolfo Martinez, who is Javier Martinez’s father, was sentenced to 64 months in federal prison. In March 2017, co-defendant Jose Cardenas Aguirre was sentenced to 324 months in federal prison and Maria Guadalupe Bello was sentenced to 18 months in federal prison.
One remaining defendant charged in the case, Jonathan Benitez, remains a fugitive.
According to documents filed in the case, on July 12, 2016, Trevino, along with Aguirre and Martinez, planned to kidnap another individual because of an unpaid drug debt involving cocaine. During the planned kidnapping, Martinez and Aguirre wore ballistic vests and black camouflage clothing. The kidnapping was unsuccessful, and as Martinez, Aguirre, and Trevino fled the scene, they were engaged in a high-speed chase with officers with the Ennis Police Department. During this pursuit, Martinez, using an AR-156 style rifle, fired numerous shots at a police officer.
According to the investigation, Trevino wiped fingerprints off the bullets before they were used and handed Martinez a magazine so that he could reload his weapon while firing at law enforcement.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl prosecuted.
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San Angelo Man Sentenced to 36 Months in Federal Prison for Filing False Income Tax ReturnsRead the Press Release
LUBBOCK — Ai Shu Cheng, 52, of San Angelo, Texas, was sentenced by Senior U.S. District Judge Sam R. Cummings to 36 months in federal prison last week, following his guilty plea in December 2016 to two counts of filing a false income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, Judge Cummings ordered that Cheng pay $1,767,566.46 in restitution to the Internal Revenue Service. Judge Cummings ordered Cheng to surrender to the Bureau of Prisons on May 26, 2017.
According to documents filed in the case, in 2011 Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2010 and under-reported his total income. Cheng reported a total income of $208,652.00. Cheng’s actual income was approximately $696,148.68, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $165,108.00.
In 2013, Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2012 and again under-reported his total income. Cheng reported a total income of $186,486.00. Cheng’s actual income was approximately $600,976.82, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $145,072.00.
Each of these income tax returns contained a written declaration that the tax return was made under penalty of perjury.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Ann Cruce-Haag prosecuted.
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Owner of Several North Texas Pill Mills Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
DALLAS —John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, appeared yesterday before U.S. District Judge Jane J. Boyle and pleaded guilty to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Ware pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone). The conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Ware remains on bond pending sentencing. Sentencing is scheduled for August 10, 2017.
Co-conspirator Stanley James, Jr., 57, of Dallas and Houston, pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance (hydrocodone). James is scheduled to be sentenced on June 22, 2017.
According to plea documents in the case, Ware and co-conspirators distributed more than 2,000,000 10mg hydrocodone pills through medical clinics in Dallas, Texas and elsewhere. Ware owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice. Between October 2014 and October 2015 more than 700,000 hydrocodone pills (most of which were 10 mg pills) were distributed in relation to the clinics he owned and operated. The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that Ware owned, managed, and directed.
A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient. Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.
According to plea documents in the case, Ware and James owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas. Ware and James owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.
Ware operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone. The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients.
Ware took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. Ware attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who where willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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Jewelry Robber Sentenced to 150 Months in Federal PrisonRead the Press Release
DALLAS — Hilton Murdock Aitch, age 56, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 150 months in federal prison, following his guilty plea in November 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.
Aitch 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. Aitch has been in custody since his arrest in March 2016.
Aitch was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, Dominique Pearson, 25, 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, nine have pleaded guilty, two are 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 long-sleeved 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 Aitch 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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Fort Worth Man Sentenced to 120 Months in Federal Prison for Enticement of a MinorRead the Press Release
Fort Worth, Texas — A 49-year-old Fort Worth, Texas, man, Scott Brandon Tosch, was sentenced this morning by Senior U.S. District Judge Terry R. Means to serve 120 months in federal prison, following his guilty plea in December 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Means ordered Tosch to report to the Bureau of Prisons on June 26, 2017.
According to documents filed in the case, on August 16, 2016, Tosch responsed to a Craigslist ad entitled, “hey bored and lookin for somethin to do while still summertime... school coming up soon... hmu.” At the time, Tosch did not know that an officer with the Fort Worth Police Department was working in an undercover capacity and had posted the ad. The undercover officer responded to the email stating that he was 13 years old. The conversation continued and were sexually graphic in nature. The conversation then led to Tosch coming to pick up what he believed to be a 13-year-old female for sexual intercourse.
On August 18, 2016, Tosch arrived at the agreed location, and the Fort Worth Police Department took Tosch into custody.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Megan Fahey was in charge of the prosecution.
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Federal Grand Jury Indicts Irving Woman on Wire Fraud Charges Stemming from $1 Million Ponzi SchemeRead the Press Release
DALLAS —Nemelee Liwanag Jiao, 47, of Irving, Texas, was indicted last week by a federal grand jury in Dallas, Texas, on two counts of wire fraud for orchestrating a Ponzi scheme that cost at least 35 investors more than $1,000,000, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiao made her initial appearance last week before U.S. Magistrate Judge Ramirez, who ordered her to surrender her passport and released her on bond pending trial.
According to the indictment, beginning in February 2009 and continuing through September 2016, Jiao devised a scheme to cause individuals to invest in promissory notes purportedly issued by Shepherd’s Light Learning Center and Lord of Peace Learning Center, two non-profit schools located in the Philippines, but instead used the invested funds for her personal benefit. Jiao raised at least $1,000,000 from at least 35 investors.
Specifically, Jiao represented to investors that she was a representative of Shepherd’s Light and Lord of Peace and entered into investment contracts, also known as promissory notes, with investors falsely promising rates of return of 10% to 100% on investments. Jiao also promised repayment of principle and interest resulting from the investment within 30 days to one year following the investment. Many of the investment contracts were notarized to make the investments appear legitimate. Jiao then directed investors to write checks and wire funds to bank accounts controlled by her. Jiao used the investors’ funds for her own benefit, including a country club membership and personal expenses.
The indictment includes a forfeiture allegation that would require Jiao, upon conviction, to forfeit funds in the amount constituting the proceeds traceable to the offense.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for wire fraud is 20 years in federal prison and a $250,000 fine.
If you believe you were the victim of criminal fraud committed by Nemelee Liwanag Jiao, please contact the FBI at 972-559-5000.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Two Dallas Women Sentenced in Opioid Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — Glenda Cane, 47, and Shalisa Robinson, 31, both of Houston, Texas, have been sentenced for their role in a pill mill operation that operated during parts of 2013-2015, announced United States Attorney John R. Parker.
Cane and Robinson were sentenced last week to 18 months each in federal prison by U.S. District Judge Sidney A. Fitzwater, following their guilty pleas in July 2016. Cane pleaded guilty to one count of unlawful use of a communication device. Robinson pleaded guilty to one count of conspiracy to distribute a controlled substance. Judge Fitzwater ordered Cane to surrender to the Bureau of Prisons on June 13, 2017. Robinson is ordered to surrender on June 6, 2017.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Cane and Robinson, 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 Cane case, on February 14, 2014, Cane informed co-conspirator and supplier Cornelius Robinson that a customer wanted to purchase 30mg oxycodone pills and 10mg hydrocodone pills from her. Cane asks Robinson what price to charge for the hydrocodone, and Robinson tells Cane to sell the hydrocodone for $4.50 per pill.
According to documents filed in the Robinson case, on May 24, 2013, she and co-conspirator Cornelius Robinson came to Dallas, Texas, to pick up oxycodone and a rental car. Shalisa and Cornelius Robinson drove to Louisiana to distribute the oxycodone they had picked up in Dallas. On May 25, 2013, in St. Martin’s Parish, Louisiana, Shalisa Robinson possessed approximately 1,543 oxycodone pills consisting of 1,161 30mg oxycodone pills and 382 15mg oxycodone pills that she and Cornelius Robinson intended to distribute to customers in Louisiana.
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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Federal Grand Jury Indicts McKinney Man Charged with Fraudulently Obtaining and Cashing $16 Million in U.S. Treasury ChecksRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last week, and unsealed today, charges Moiz Mumtaz Ali, 36, of McKinney, Texas, with offenses related to his role in fraudulently obtaining and cashing 3,423 U.S. Treasury checks totaling approximately $16 million, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Ali is charged with one count of conspiracy to commit bank fraud, twenty-six counts of bank fraud, one count of theft of public money and property, two counts of aggravated identity theft, and one count of failure to develop, implement, and maintain anti-money laundering program. Ali will remain on bond pending trial.
The indictment alleges that from December 2010 through June 2012, 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.
Ali and others devised a scheme to defraud Neighborhood Credit Union by negotiating fraudulently obtained United States Treasury checks. False and fraudulent tax returns were filed using the personal identifying information of legitimate tax payers without the tax payers’ authorization. Once these fraudulent returns were submitted and approved by the Internal Revenue Service, co-conspirators received United States Treasury checks that represented the fraudulently obtained tax refunds. Co-conspirators brought these United States Treasury checks to Ali at Gateway. The United States Treasury checks were exchanged with Ali for cash that represented a percentage of the stated amount of each check.
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.
The indictment also alleges 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.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, the bank fraud counts carry a maximum statutory penalty of 30 years in federal prison and a $1,000,000 fine. The theft of public money and property carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of aggravated identity theft carries a maximum statutory penalty of 2 years in federal prison and a $250,000 fine. The failure to develop, implement, and maintain anti-money laundering program carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense.
The case is being investigated by the Internal Revenue Service and the U.S. Secret Service.
Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
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Man Who Falsely Claimed to Receive the Purple Heart Award to Receive Financial Benefits is Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — A 35-year-old man, Brandon Ryan Blackstone, who admitted fraudulently representing the receipt of a military decoration for financial gain, has been sentenced by Chief U.S. District Judge Barbara M.G. Lynn to serve 21 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Blackstone pleaded guilty in September 2016 to a felony information charging one count of wire fraud and one count of fraudulent representation about the receipt of a military decoration for financial gain. Blackstone has been in custody since February 2017 for violations of his pretrial conditions.
“Falsely claiming military honors is disgraceful by itself,” said U.S. Attorney Parker. “But to do so for financial gain is particularly despicable.”
“Any fraudulent claim of military valor is disturbing and disrespectful to the brave men and women who earned their honors through courage and sacrifice. Brandon Blackstone’s fraudulent claims, made repeatedly with the purpose of defrauding the government and obtaining personal enrichment, are not only especially egregious, but criminal. The FBI will not stand by in these situations,” said FBI Dallas Special Agent in Charge Eric K. Jackson. “We will investigate these cases to ensure justice is reached. We will do our part to uphold the integrity of the U.S. government and military institutions and to honor those courageous individuals who truly deserve their military honors.”
“This conviction demonstrates the VA Office of Inspector General’s unwavering commitment to protect the programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Werner, VA Office of Inspector General.
According to plea documents, Blackstone served in the United States Marine Corps from 2004 until 2006. Between August 28, 2004, and September 30, 2004, Blackstone was deployed with the Marines to Iraq.
On July 28, 2006, Blackstone submitted an application for compensation and/or pension to the Department of Veterans Affairs (VA). In the application, the defendant falsely claimed to have sustained multiple physical blast injuries while deployed to Iraq, when his Humvee vehicle struck an anti-tank mine. When Blackstone was examined at the Dallas VA Medical Center in October 2006 he falsely claimed that he sustained multiple lacerations and physical injuries as a result of an explosion when his Humvee passed over an anti-tank mine which exploded. Also in October 2006, in support of his application for benefits, Blackstone submitted to the VA, two forged and falsified witness statements, purporting to be signed by Marines who witnessed the explosion.
In November 2006, the VA awarded Blackstone disability benefits in the form of monthly compensation payments.
In February 2012, the defendant submitted an online application to the Military Warrior Support Foundation (MWSF), to fraudulently obtain a residence. MWSF is a nonprofit organization dedicated to helping injured veterans. Included in the benefits provided to combat wounded veterans, MWSF provides mortgage free residences to eligible veterans who were wounded during combat. In the application, Blackstone falsely claimed to have sustained blast injuries, resulting from an explosion, when his vehicle struck an anti-tank mine while on patrol. In the application, Blackstone also falsely claimed that, as a result of his injury, he was awarded the Purple Heart Medal. Because he held himself out to have been awarded the Purple Heart Medal, Blackstone received from MWSF, a mortgage free residence in Fort Worth, Texas in November 2012, and was scheduled to receive the title of the residence in November 2015.
The Federal Bureau of Investigation and the Department of Veteran Affairs, Office of Inspector General investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Former San Angelo Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Jeffrey Neal Cuddington, 38, formerly 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 December 2016 to one count of receipt and distribution of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Cuddington, who most recently resided in Maryland, Virginia, used his computers to search on the Internet for images and videos depicting minors engaged in sexually explicit conduct, and saved the images that he downloaded from the Internet. On October 11, 2012, Cuddington distributed three images and received one image, all of which depict prepubescent female children under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecutions.
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Father and Son Charged in $16 Million Health Insurance Fraud SchemeRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this week charges Terry Lynn Anderson, 66, and Rocky Freeland Anderson, 36, of Dallas, with offenses related to their participation in an insurance fraud scheme, announced John Parker, U.S. Attorney for the Northern District of Texas.
Each defendant is charged with one count of conspiracy to commit health care fraud, ten counts of health care fraud and aiding and abetting and four counts of aggravated identity theft and aiding and abetting. Both defendants will make their initial appearances today before Magistrate Judge David L. Horan.
The indictment alleges that Terry Anderson was the owner of Anfree Incorporated, a Texas corporation that did business as Anderson Optical & Hearing Aids Center (Anderson Optical & Hearing). Terry Anderson co-operated Anderson Optical & Hearing with his son, Rocky Anderson, and both are licensed by the State of Texas as Fitters and Dispensers of Hearing Instruments. From January 1, 2011 through November 8, 2016, the defendants devised and executed a scheme to defraud Blue Cross Blue Shield of Texas (BCBS) by submitting claims for hearing aids that were not needed and, in many cases, not delivered to the BCBS subscriber. To increase the number of claims they could submit to BCBS, the defendants and their coconspirators engaged in fraudulent marketing practices.
For example, the defendants promised BCBS subscribers a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told subscribers that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free sunglasses or prescription glasses. The defendants promised subscribers that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would not require the subscriber to pay any applicable copayment, coinsurance, or deductible. The defendants also offered BCBS subscribers $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
The defendants took advantage of BCBS plans offered to employees of American Airlines because prior to 2014, the American Airlines insurance plans administered by BCBS had no maximum limit on the cost of hearing aids and allowed subscribers to obtain hearing aids once per plan year. In 2013, approximately 84.6% of Anderson Optical & Hearing’s total income came from BCBS and 99.7% of the BCBS payments were based on claims submitted for American Airlines employees and their dependents.
The defendants failed to conduct hearing tests that complied with BCBS’s medical policies related to the evaluation of hearing impairment. Many of the hearing tests were conducted in an employee break room at DFW Airport and lasted less than five minutes. The defendants then submitted claims to BCBS for reimbursement for hearing aids before dispensing hearing aids to the subscriber, and in some cases for hearing aids that they never delivered to the subscriber. The defendants kept lists of subscribers who had not received hearing aids despite BCBS having paid the claims. One such list contained 103 names.
The indictment also alleges the defendants falsified patient records, forged patient signatures, and attempted to dispense hearing aids and collect deductibles and coinsurance years after the subscriber was offered a free hearing test and free hearing aids.
In November 2013, BCBS conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit (Professional Licensing Unit) conducted an investigation regarding a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by BCBS. The patient records submitted to the Professional Licensing Unit had altered test scores, additional notations, and apparent forged signatures that were not present when the same records were submitted to BCBS in November 2013.
Anderson Optical & Hearing submitted claims to BCBS for hearing aids on behalf of American Airlines employees totaling more than $27 million, the vast majority of which were fraudulent. As a result of these claims, BCBS paid Anderson Optical & Hearing more than $16.7 million.
The indictment includes a forfeiture notice that would require the defendants, if convicted, to forfeit a 300 acre ranch in Bosque County, three vehicles, and more than $3.1 million that was seized from nine financial accounts in December 2015.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Doug Brasher is prosecuting the case.
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Federal Jury Finds a Previously Convicted Black Hat Search Engine Optimizer Guilty of Retaliating Against His Former VictimRead the Press Release
DALLAS — William Laurence Stanley, 53, a self-proclaimed black hat search engine optimizer and reputation manager, was found guilty yesterday following a five-day trial before U.S. District Judge Sidney A. Fitzwater for retaliating against a victim for providing truthful information to law enforcement about Stanley’s prior commission of a federal offense, that being extortion, announced U.S. Attorney John Parker of the Northern District of Texas.
Stanley was convicted of one count of retaliation. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Stanley has been in custody on the retaliation charge since his arrest in November 2016. Sentencing is set for August 4, 2017 at 9:00am.
Stanley was previously sentenced in January 2016 to 37 months in federal prison for extorting money from a Dallas-based business (victim Company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N. In December 2016, Stanley was indicted for retaliating against the principle victim in the 2014 case.
According to evidence presented at trial, Stanley began planning his retaliation while serving his prison sentence on the extortion conviction. From at least September 6 through sometime in October 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false or derogatory comments or reviews online about the victim Company.
Stanley first extorted the victim Company in 2009 and 2010, and received a final bulk payment of approximately $80,000 from the victim company to stop the harassment and go away. Stanley reappeared in December 2013, and began extorting the company a second time, this time demanding a payment of approximately $30,000. In December 2013 through February 2014, Stanley and his sister, Lynn Faust harassed the victim Company by emails and on the telephone, threatening to ruin the reputation of the victim Company if it did not pay the extortion fee. Stanley threatened to post negative things online about the victim Company that had the potential to cause significant revenue losses. Stanley’s search engine optimization skills threatened to cause any items he posted online to rank high on the various search engines. During the early stages of the extortion in 2014, the victim Company notified the FBI in Dallas, which opened an investigation. Several victim Company officers and employees subsequently provided truthful information to the FBI regarding Stanley’s commission of a federal offense – the offense to which he ultimately pled guilty in July 2015.
In early August 2016, Stanley was transferred by the Bureau of Prisons (BOP) to a halfway house in Houston. In early September 2016, the BOP placed Stanley on home confinement at his daughter’s residence in Angleton, Texas.
Between September 8, 2016 and October 10, 2016 , Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Stanley posted the retaliatory data on Facebook.com, Glassdoor.com, ShaggyTexas.com, 800notes.com, callsreceived.com, Yelp.com, Blogspot.com, and Wordpress.com. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also encouraged others to duplicate the negative content in as many places as possible.
Stanley attempted to claim that the First Amendment protected his postings. The court instructed the jury that “[e]xpression is not protected by the First Amendment if the speaker intends his words to become, and the tendency of his words do become, an integral part of conduct that violates a valid criminal statute.” Evidence during the trial established that the victim Company’s reputation is based on the hard work, integrity, and dedication of more than hundreds of associates nationwide. The victim Company repeatedly earns and receives top honors and awards in its industry, and Stanley’s retaliatory conduct caused extensive harm to its reputation.
The FBI investigated the case. Assistant U.S. Attorneys C.S. Heath and Sid Mody are in charge of the prosecution.
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Federal Jury Convicts Man for Illegal Reentry After Previous Removal from the United StatesRead the Press Release
DALLAS — Ignacio Arellano-Banuelos, 36, of Dallas, Texas was found guilty today following a two-day trial before U.S. District Judge David C. Godbey for illegal reentry after removal from the United States, announced U.S. Attorney John Parker of the Northern District of Texas.
Arellano-Banuelos faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He has been in custody since his arrest in June 2016. Sentencing is set for July 31, 2017. Arellano-Banuelos will be deported after serving his sentence.
According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.
Immigration and Customs Enforcement (ICE) investigated the case. Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier are in charge of the prosecution.
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Cedar Hill, Texas, Man Sentenced to 24 Months in Federal Prison for Making a False Statement in a Bankruptcy FilingRead the Press Release
DALLAS — Haywood Bernard Hall, 35, of Cedar Hill, Texas, was sentenced today by U.S. District Judge Barbara M.G. Lynn to serve 24 months in federal prison for making a false statement under penalty of perjury in a filing in a bankruptcy document, announced U.S. Attorney John Parker of the Northern District of Texas. Judge Lynn ordered Hall to surrender to the Bureau of Prisons on June 20, 2017.
On April 22, 2014, Hall was charged with four felony counts all related to the filing of a bankruptcy case in November 2010. The indictment also included allegations that Hall made false statements about his employment and used a false social security number in another bankruptcy case filed in July 2007. In May 2016, Hall pleaded guilty to Count Two of the indictment which charged Hall with making a false statement under penalty of perjury. According to documents filed in the case, Hall filed several bankruptcy related documents in November 2010 with the U.S. Bankruptcy Court in the Northern District of Texas. When Hall filed these bankruptcy papers, he knowingly and fraudulently made a material false statement under the penalty of perjury when Hall caused a “Statement of Social Security,” (Form B21) to be filed that falsely represented that the social security number listed on the Form B21 was Hall’s lawfully assigned social security number. At the conclusion of the evidence at today’s sentencing hearing, Judge Lynn stated that defendant Hall had demonstrated a repeated history of making false statements and that defendant Hall’s explanations for his criminal conduct were not credible.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Social Security Administration, Office of the Inspector General investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Hospice Companies to Pay $12.2 Million to Settle Kickback ClaimsRead the Press Release
DALLAS – International Tutoring Services, LLC, f/k/a International Tutoring Services, Inc., and d/b/a Hospice Plus; Goodwin Hospice, LLC; Phoenix Hospice, LP; Hospice Plus, L.P.; and Curo Health Services, LLC f/k/a Curo Health Services, Inc. have agreed to pay $12.21 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for patient referrals, announced U.S. Attorney John Parker of the Northern District of Texas. Curo Health Services is headquartered in Mooresville, North Carolina and operates eight hospice affiliates across 18 states. In September 2010, Curo Health Services purchased Hospice Plus, Goodwin Hospice, and Phoenix Hospice, and consolidated the hospice companies under the Hospice Plus brand, which operates primarily in and around Dallas, Texas.
The settlement resolves allegations brought by several whistleblowers that Hospice Plus, Phoenix Hospice, and Goodwin Hospice submitted claims to Medicare and Texas Medicaid that were rendered false as a result of the payment of kickbacks by the hospices, its owners and employees, and others. There were two alleged kickback schemes. First, from 2007 through 2012, kickbacks were allegedly paid to American Physician Housecalls, a physician housecall company, in exchange for patient referrals to these hospice companies. The alleged kickbacks took the form of sham loans, a free equity interest in another entity, stock dividends, and free rental space. Second, from 2007 through 2014, kickbacks were allegedly paid to medical providers, including doctors and nurses as well as hospitals and long-term care facilities, in exchange for patient referrals to these hospice companies. The alleged kickbacks took the form of cash, gift cards, and other valuable items.
“We will not tolerate the payment of illegal kickbacks, which unjustly drive up the cost of health care,” said U.S. Attorney Parker. “Any health care provider who seeks to profit illegally at the expense of federal beneficiaries and taxpayers will face consequences.”
The allegations resolved by this settlement were raised in two consolidated whistleblower lawsuits in Dallas, Texas. The lawsuits were filed under the qui tam provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. In settling this matter, Curo Health Services did not admit any wrongdoing or liability.
In addition to reaching a settlement with these defendants, the United States also requested that the Court permit the United States to intervene in and prosecute the fraud claims against two former executives, Dr. Bryan White and Suresh Kumar. The case is captioned United States ex rel. Christopher Sean Capshaw, et al. v. Bryan K. White, et al.; Civil Action No. 3:12-cv-4457 (N.D. Tex.).
The Office of Inspector General of the U.S. Department of Health and Human Services and the FBI assisted in the investigation of this matter. The case is being handled by Assistant U.S. Attorneys Lindsey Beran and Kenneth Coffin.
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Federal Jury Convicts Dallas Man of November 2015 Armed Assault on Federal OfficersRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Sam A. Lindsay, yesterday a federal jury convicted Victor Manuel Solorzano, 32, of Dallas, of five counts stemming from the November 19, 2015 armed assault of two federal law enforcement officers in southwest Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Victor Solorzano was convicted of one count of possession with intent to distribute methamphetamine, two counts of assault of a federal officer, and two counts of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence. The methamphetamine distribution count and the assault counts carry a maximum statutory penalty of 20 years in federal prison each. The firearm offenses is punishable by not less than thirty-five years and up to life. These sentences must run consecutive to any sentences for the drug and assault offenses. Sentencing is set for August 21, 2016.
“These convictions clearly demonstrate that violent drug traffickers will be vigorously prosecuted by this office, particularly when their violence is directed at law enforcement officers, and the punishment they face upon conviction will be substantial,” said U.S. Attorney Parker.
Co-defendant Edgar Solorzano, 24, pleaded guilty earlier this month to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence. Sentencing is set for August 7, 2017.
According to evidence presented at trial, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled for their lives.
Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time. Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a high-powered AR 15 pistol, confronted the officer in the street and began firing at the officer, striking him in the hand and foot. Edgar, meanwhile, was armed with a high-powered AK 47 pistol. The officer ran for his life as Victor and Edgar fired at him. The officer then got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away. The officer who installed the court-ordered tracking device sustained four nonfatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back. Miraculously, the officers were not severely injured or killed. In total, the Solorzano cousins fired at least 42 gunshots at the federal officers on a residential street, and their turbulent gunfire even struck other vehicles and a home situated on the street.
After the shooting, Edgar hid the AK 47 pistol he used in the attic of his residence and the AR 15 pistol used by Victor in a neighbor’s backyard. The police searched Edgar’s residence and found the pistol hidden in the attic. The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The police later found the pistol used by Victor in the neighbor’s backyard. The police also searched Victor’s residence and found a gallon-sized ziplock bag containing methamphetamine residue in his closet. A narcotics detective estimated that the bag had contained approximately one to two pounds of the drug. The police also found in Victor’s residence drug-cash and a variety of firearms and ammunition.
The Federal Bureau of Investigation, the Dallas Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Rachael Jones prosecuted.
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Dallas Man Sentenced to 35 Years in Federal Prison for Kidnapping ChargesRead the Press Release
DALLAS — Steric Paul Mitchell, 46, was sentenced last week by U.S. District Judge Sam A. Lindsay to serve a total of 420 months in federal prison for his role in the May 2012 kidnapping of a female victim whom he planned to sell into sex slavery, announced John Parker, U.S. Attorney for the Northern District of Texas.
Mitchell was convicted following a two-week trial in August 2015 on one count of conspiracy to commit kidnapping and one count of kidnapping. Mitchell’s coconspirator in the case, Gregory Steven Hunt, aka “K.C.,” 43, pleaded guilty in April 2015 to one count of kidnapping and was sentenced to 204 months in federal prison.
“The sentence imposed today reflects the egregiousness of Mitchell’s conduct in this case,” said U.S. Attorney Parker. “It is difficult to imagine the level of suffering his victim experienced. The sentence handed down today takes into account that suffering and ensures that Mitchell will never again commit such crimes.”
According to evidence presented at Mitchell’s trial and documents filed in the case, Mitchell and Hunt knew each other from the neighborhood, and in early May 2012, Mitchell hired Hunt to pick up the victim at a hotel and transport her to another location under the ruse that Hunt was taking her to a private party. In fact, Hunt and Mitchell planned to kidnap and sexually assault her. Hunt was also supposed to pay another woman, R.E., $100 when he picked up the victim from the motel, and Hunt understood he would get to have sex with the victim as part of the agreement.
R.E. told the victim that she had a “good friend” who wanted to hire a private dancer for a party and that the men were “safe.” At a Dallas hotel, R.E. introduces the victim to Hunt, who pays R.E. the $100 and then drives the victim to an abandoned house in Dallas where Mitchell was waiting.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle, and put her in the backseat. He then drove the victim to a second location, tied her to a chair, drugged her, then raped her and told her he planned to sell her into sexual slavery. He held her overnight at that location. Later, he again bound her, wrapped her in a bed sheet again, put her in the backseat of a vehicle, and drove her to a house in Duncanville, Texas, where he sexually assaulted her. At this third location, the victim was able to locate a cell phone and place four 911 calls; officers with the Duncanville Police Department found and rescued her.
The FBI and the Duncanville Police Department investigated. Assistant U.S. Attorneys Cara Foos Pierce and Andrew Wirmani prosecuted.
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Texas Tax Return Preparer Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A DeSoto, Texas resident pleaded guilty today to aiding and assisting in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas.
According to documents filed with the court, Vicki Walker, 52, was a tax return preparer operating under the name Vicki Walker Tax Services LLC in Dallas. Walker admitted that she filed a false tax return with the Internal Revenue Service (IRS) for a client that contained false business loss and capital loss deductions. In addition, Walker admitted that she prepared other false returns intending to cause a tax loss of approximately $1,173,757.
Walker is scheduled to be sentenced on Aug. 2. She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Chris Stokes of the Northern District of Texas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Federal Jury Convicts Fort Worth Man of Five Counts of Robbery and Gun ChargesRead the Press Release
FORT WORTH – Following a two-day trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Nathaniel Roshaun Bowens, 34, of Fort Worth, Texas, of five counts relating to the robbery of T-Mobile stores, announced U.S. Attorney John Parker of the Northern District of Texas.
Bowens was convicted of one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of using carrying and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence. The conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Each interference with commerce by robbery count a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Each firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine. Bowens has been in custody since his arrest in January 2017. Sentencing has been set for July 17, 2017.
According to evidence presented at trial, on October 5, 2015 Bowens entered the T-Mobile store located at 1801 Eastchase Parkway #115, Fort Worth, Texas, and obtained numerous cellular phones and other assorted electronics from the T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On March 7, 2016, Bowens entered the T-Mobile store located at 981 N. Walnut Creek, Mansfield, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On June 28, 2016, Bowens entered the T-Mobile store located at 2205 W. IH-20, Grand Prairie, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
On August 29, 2016, Bowens attempted to enter the T-Mobile store located at 3524 Altamesa Blvd, Fort Worth, Texas, to obtain numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm but was unsuccessful.
On September 4, 2016, Bowens attempted to enter the T-Mobile store located at 2209 W. Berry St., Fort Worth, Texas, to obtain numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm but was unsuccessful.
On September 4, 2016, Bowens entered the T-Mobile store located at 3524 Altamesa Blvd., Fort Worth, Texas, and obtained numerous electronic devices and money from T-Mobile employees by threatened force, violence, and fear of immediate injury to the employees by using and brandishing a firearm.
The case was investigated by the FBI, Fort Worth Police Department, Mansfield Police Department, Grand Prairie Police Department, Arlington Police Department, and the Dallas Police Department.
Assistant U.S. Attorneys Brian Poe and Chris Wolfe prosecuted.
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Two Sentenced in Gang Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Diwone Nobles, a/k/a “Pooh,” 32 and Katelyn Michelle Ward, a/k/a “KD,” 24, have been sentenced for their roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Noble appeared before U.S. District Judge Reed C. O’Connor yesterday and was sentenced to 360 months in federal prison. He pleaded guilty to one count of sex trafficking of children in November 2016.
Ward also appeared before U.S. District Judge Reed C. O’Connor yesterday and was sentenced to 72 months in federal prison. She pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise in November 2016.
A total of nine defendants were charged in the case, pleaded guilty to their role in the child sex trafficking conspiracy and have been sentenced to the following prison sentences.
Chad Johnson, a/k/a “Ocho Hood Fame,” 24, 300 months
Audry Lane, a/k/a “Spud,” 29, 280 months
Deon Bonner, a/k/a “Spanish Fly,” 26, 360 months
Stanley Johnson, a/k/a “Pee Wee,” 24, 168 months
Alvin Lane, a/k/a “Spank,” 32, 166 months
Jessica Arnold, 23, 5 years probation
Serrah Arnold, 28, 5 years probation
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane, Ward and Alvin Lane acted as pimps for the girls and women they trafficked. They instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the member of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Ward, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, sisters Serrah and Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
On approximately June 1, 2013, 17-year-old Jane Doe 4 was introduced to Audry Lane, Serrah and Jessica Arnold, and Alvin Lane by a family friend of the Arnolds, defendant Ward. Ward asked the Lanes and Arnolds to teach Jane Doe 4 how to engage in commercial sex acts. Serrah and Jessica Arnold explained to Jane Doe 4 about Backpage.com and how to talk to commercial sex customers. Ward, along with Audry Lane, and later Alvin Lane, acted as Jane Doe 4’s pimp at various times between 2013 and 2015. All three pimps knew she was 17 when they began facilitating her commercial sex acts, and they kept the proceeds she earned. Various members of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry Lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
While Stanley Johnson was causing Jane Doe 2 to engage in commercial sex acts at a Fort Worth motel, Bonner was causing Jane Doe 1 to engage in commercial sex acts in another nearby room. After several days, Bonner left the hotel, and then Chad Johnson caused Jane Doe 1 to engage in commercial sex acts. Next, Nobles began causing Jane Doe 1 to engage in commercial sex acts. Stanley Johnson and Nobles eventually took both Jane Doe 1 and Jane Doe 2 to another hotel in Fort Worth where Stanley Johnson continued to cause Jane Doe 2 to engage in commercial sex acts.
According to documents filed in the case, one adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, Alvin Lane, and Serrah Arnold during 2014. Nobles frequently assaulted her when she made him angry or did not follow his instructions; he also raped her. Nobles kept the money she earned and the contact phone number used in the Backpage.com ad for her services was used by Nobles. In one trip to Austin, this adult female victim made enough money for Nobles to buy a Chevy sedan that he painted bright orange – “Poly Orange” in reference to their neighborhood Polytechnic Heights – that he still owns.
When an adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
When an adult female victim engaged in commercial sex acts at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received.
A minor female victim, 16 year-old Jane Doe 5, engaged in commercial sex acts at the direction of Audry Lane, Alvin Lane, Serrah Arnold and Jessica Arnold. Alvin Lane would have his girlfriend/bottom girl, Jessica Arnold post photos of her in ads that she placed on Backpage.com. The minor female victim would give all the money she earned to Jessica or Serrah Arnold, who would then give the money to Audry Lane or Alvin Lane.
Some of the pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contained photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends were females observed in Backpage.com ads for commercial sex. Likewise, Diwone Nobles posted numerous videos and photos on Facebook instructing others on how to pimp, and showing him counting money with various sex trafficking victims.
Nobles, Bonner, Chad Johnson, Stanley Johnson, and Audry Lane had several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Fort Worth Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Information Technology Firm Pays $1 Million to Settle Allegations of Visa FraudRead the Press Release
DALLAS—Sistemas Globales S.A., an Argentine information technology and consulting firm, has agreed to a civil settlement of allegations that it and its corporate affiliates, including U.S. affiliate Globant LLC (collectively “Globant”), violated the False Claims Act and the Program Fraud Civil Remedies Act, announced U.S. Attorney John R. Parker of the Northern District of Texas.
The settlement relates to Globant’s use of B-1 visas for certain of its foreign national employees. Foreign nationals admitted to the United States on a B-1 visa are permitted to engage in certain short-term business activities like negotiating contracts, consulting with business associates, or attending conventions or conferences. However, a B-1 visa is not proper for foreign nationals who are seeking to perform skilled or unskilled labor in the United States. Companies wishing to employ foreign nationals in the United States must seek proper work visas for their employees, at a higher cost and with additional requirements to protect U.S. workers.
With respect to Globant, the United States contended that Globant caused certain of its foreign-national employees to apply for and obtain B-1 visas to travel into the United States for the stated purpose of “training” or “knowledge transfer,” but that the true purpose of travel was to perform information technology work in the United States that was not permissible on a B-1 visa. The United States further contended that the Globant employees would not have met the requirements for the issuance of B-1 visas if the true facts regarding their intended activities had been disclosed. Globant agreed to pay $1 million to settle the matter. Globant denies the United States’ allegations and fully cooperated with the investigation and, by settling, did not admit any wrongdoing or liability.
The investigation was initiated after U.S. Department of State consular officials in Argentina reported unusual visa application activity by Globant employees in that country. The matter was handled by Assistant U.S. Attorney Brian W. Stoltz. The U.S. Department of State’s Diplomatic Security Service investigated, and attorneys from the U.S. Department of State and U.S. Citizenship and Immigration Services, Department of Homeland Security also participated in the resolution of the matter.
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Two Men Convicted in Unrelated Cases for Distributing Child Porn Sentenced to Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Two men who were convicted in unrelated cases on child pornography offenses have been sentenced to lengthy federal prison sentences by Senior U.S. District Judge Sam R. Cummings, announced U.S. Attorney John Parker of the Northern District of Texas.
Ambrose Ledezma, 24, of San Angelo, Texas, was sentenced last week to 135 months in federal prison. Ledezma pleaded guilty in December 2016 to one count of distributing child pornography. Ledezma was remanded to custody following his sentencing hearing. According to documents filed in his case, Ledezma used Kik, an instant messenger software application that operates over the Internet, to send and receive messages. On April 15, 2015, Ledezma used Kik to distribute two images of child pornography to a Kik group named “Only For Kid Porn.” Each of the images distributed to this group by Ledezma depicts a minor prepubescent female engaged in sexually explicit conduct. Ledezma had obtained these images over the Internet by searching for images of minors engaged in sexually explicit conduct. The Department of Homeland Security, Homeland Security Investigations investigated the case.
Cody Brett Wilcox, 26, of Lubbock, Texas, was also sentenced last week to 188 months in federal prison. Wilcox pleaded guilty in December 2016 to one count of distributing child pornography. He has been in custody since his arrest in November 2016. According to documents filed in his case, Wilcox, using Kik, located a person who had posted that he was looking for “dads into incest, taboo, etc.” Wilcox contacted this person and messaged with him from October 20, 2016, through October 26, 2016. During the communications, Wilcox informed the other person that he had a lot of child pornography and that he traded the material on a regular basis. Wilcox sent the other person five images of child pornography. The images depicted prepubescent minor females engaged in sexually explicit conduct. The Lubbock Police Department and the Federal Bureau of Investigation investigated this case.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney Steven M. Sucsy prosecuted both cases.
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San Angelo Man Who Controlled a Residence as a Multi-Pound Methamphetamine Stash Site Sentenced to 180 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Benny T. Martinez, 37, of San Angelo, Texas, was sentenced this morning before Senior District Judge Sam R. Cummings to 180 months in federal prison following his guilty plea in December 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Martinez pleaded guilty to one count of possession of firearms in furtherance of a drug trafficking crime and one count of convicted felon in possession of a firearm. Martinez has been in custody since the time of his arrest in October 2016.
“People like this do everything they can to destroy our communities and the people who live in them,” said U.S. Attorney Parker. “Our job is to raise the cost to them of doing their jobs, and we will aggressively do just that.”
According to plea documents filed in the case, on October 21, 2016, a search warrant was executed at the residence at 9209 Wilma Lane, San Angelo, Texas. Martinez was the only person at the residence. A thorough search of the residence revealed 2,188 grams of methamphetamine in the ceiling of the pantry, two .22 caliber rifles, $13,700.00 in cash, a vacuum sealer and vacuum sealing bags, a digital scale, and MSM, a common adulterant for methamphetamine. An additional 6,279 grams of methamphetamine was located buried on the north side of an outbuilding, in a small garden.
Further investigation revealed that before Martinez possessed the firearms mentioned, he had been convicted on May 1, 2009, in the 399th Judicial District Court of Bexar County, Texas, and was sentenced to eight months imprisonment for Possession of a Controlled Substance.
The Texas Department of Public Safety, the San Angelo Police Department, the Drug Enforcement Administration, and the Tom Green County Sheriff’s Office investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
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