Northern District of Texas
Press releases recorded for this federal judicial district.
Two Men Who Broke into Pharmacies and Stole Controlled Substances SentencedRead the Press Release
ABILENE, Texas — Two men who admitted breaking into pharmacies and stealing controlled substances, Marcus Christopher Hargrove, Jr., and Kirkston Bernard Smith, each age 24, were sentenced today by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Hargrove, of Manvel, Texas, was sentenced to 30 months in federal prison, and Smith, of Houston, Texas, was sentenced to 41 months in federal prison. Each pleaded guilty in September 2016 to one count of burglary involving controlled substances.
According to plea documents, on October 18, 2015, officers with the Sweetwater Police Department were dispatched to Maloney’s Pharmacy, located on Hailey Street in Sweetwater, Texas, regarding a report that a drive-through window was not intact. Officers observed shards of glass below the window and several medication boxes and bottles on the floor. One of the glass shards had blood on it, and there was blood on the windowsill and outside of the building. The blood was analyzed and it was determined that it was Smith’s. Smith stole more than $8,700 worth of hydrocodone, oxycodone, methadone, and other narcotics from this pharmacy during this robbery.
On December 20, 2016, according to plea documents, two persons smashed a large glass window on the south side of National Central Pharmacy, located on 14th Street in Abilene. Surveillance video showed the two burglars went to an interior room where narcotics are kept in a locked cabinet, but they were unable to open it. The video showed they tried to pry open the cabinet doors, and then they pushed the cabinet over onto the floor and tried to stand on top of it to break open the doors. Their efforts failed. The investigation revealed drops of blood on the cabinet. The blood was analyzed and it revealed that Hargrove was one of the burglars.
The Texas Department of Public Safety and the FBI investigated the case. Assistant U.S. Attorney Juanita Fielden prosecuted.
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Former Employee at a National Medical Supply/Equipment Wholesaler Faces up to Three Years in Federal Prison for Scheme to Steal Medical Products and Sell Them to InternetRead the Press Release
DALLAS — A former Carrollton, Texas, resident who worked as a sales agent for a national medical supply/equipment wholesaler, appeared in federal court yesterday and pleaded guilty to his role in a scheme to steal and resell pre-retail medical products, announced U.S. Attorney John Parker of the Northern District of Texas.
Daniel Edward Shrout, 59, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of theft of medical product. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Shrout, who now resides in Oklahoma, must also forfeit medical equipment that law enforcement seized from him during the investigation. A sentencing date was not set.
According to plea documents filed in the case, prior to his offense, Shrout worked for a lengthy period of time for Company A, a national wholesale distributor of medical supplies and equipment to office-based physicians and long-term health care providers. Company A is located in the Northern District of Texas.
Beginning on approximately January 12, 2012, Shrout manipulated and exploited Company A’s customer accounts to create false purchases and divert pre-retail medical products. Shrout then resold the stolen product via mass marketing over internet sales websites through an entity he created, Signature Surgical Supply, LLC.
Shrout caused private carriers, including UPS, to deliver the stolen product to him at locations under his control in Allen, McKinney, and Plano, Texas. As a result of Shrout’s scheme, Company A suffered a $594,849 loss.
The case is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Defendants Convicted for Roles in Methamphetamine Distribution Conspiracy Sentenced to Lengthy Federal Prison SentencesRead the Press Release
SAN ANGELO, Texas — This afternoon, Senior U.S. District Judge Sam R. Cummings sentenced seven defendants who were convicted earlier this year on various charges stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesse Huerra, 31, of San Angelo, was sentenced to life in federal prison. He was convicted at trial in September 2016 on one count each of possession with intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
Nancy Ann Flores, 41, of San Angelo, was sentenced to 15 months in federal prison. She pleaded guilty to one count of unlawful use of a communications facility.
Antonio N. Flores, 52, of San Angelo, was sentenced to 70 months in federal prison. He pleaded guilty to two counts of unlawful use of a communications facility.
Bruno Rudolfo Velasquez, 32, of San Angelo, was sentenced to 60 months in federal prison. He pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Joe Lopez, III, 33, of San Angelo, was sentenced to 125 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Jose G. Montez, 37, of San Angelo, was sentenced to 151 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Shayna Kaye McCann, 25, of Great Falls, Montana, was sentenced to 10 months in federal prison. She pleaded guilty to one count of misprision of a felony.
Most of the defendants have been in custody since their arrests on July 13, 2016, when numerous defendants were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. Twelve defendants are charged in the case.
The drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $5 million fine. A sentencing date has not been set.
Another defendant, Richard Jasso, 39, of San Angelo, was convicted at trial last month on one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole. A sentencing date has not been set.
One defendant, Silvia Prado, 36, of Austin, Texas, is scheduled to go on trial January 17, 2017. She is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Defendant Daniel Roy Lombrana, 29, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, with an enhancement for a prior conviction. He faces a statutory maximum of 10 years in federal prison and a $500,000 fine; sentencing is set for January 20, 2017. Defendant Adam Gabriel Castaneda, 30, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. He was sentenced earlier this month to 10 years in federal prison.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Dallas Woman Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution Conspiracy That Operated out of Pleasant Grove, Seagoville and Balch Springs Areas of DFW MetroplexRead the Press Release
DALLAS — A Dallas woman who, along with 18 co-defendants, was arrested in June 2016 in a joint operation led by the Dallas Police Department and the Texas Department of Public Safety, for their respective roles in a methamphetamine distribution conspiracy that operated out of the Pleasant Grove, Seagoville, and Balch Springs areas of the Dallas/Fort Worth metroplex, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Tina Connolly, 55, was sentenced by Chief U.S. District Judge Barbara M. G. Lynn to 240 months in federal prison. She pleaded guilty in October 2016 to one count of possession with intent to distribute methamphetamine. She has been in custody since her arrest in June.
According to documents filed in the case, Connolly admitted that on January 19, 2016, when law enforcement executed a search warrant for the hotel room where she was staying, officers located and seized distribution quantities of methamphetamine – approximately 298 grams, marijuana, heroin, and a firearm.
All of the 19 defendants indicted in the case have pleaded guilty to their respective roles in the conspiracy. Connolly is the first defendant to be sentenced in the case.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The case was investigated by the Dallas Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Federal Grand Jury Indicts Three for Possessing Stolen MailRead the Press Release
DALLAS — A federal grand jury has indicted three Dallas-area residents for possessing stolen mail, announced U.S. Attorney John Parker of the Northern District of Texas.
Onetta Lashuan McDaniel, 35, and Brandon Michael Wickware, 30, are each charged with three counts of possessing stolen mail; Curtis Edward Freeman, 27, is charged with one count. McDaniel and Freeman remain on bond, with conditions. Following a detention hearing this week for Wickware, U.S. Magistrate Judge Paul D. Stickney ordered that he remain in federal custody pending trial. A trial date of February 13, 2016, before U.S. District Judge Ed Kinkeade, is set.
“The arrest of McDaniel, Freeman and Wickware underscores the commitment of the U.S. Postal Inspection Service to ensure the public’s trust in the Postal Service, its brand and the U.S. mail,” said Ralph A. Key, Acting Inspector in Charge, Fort Worth Division. “I’d like to thank the Postal Inspectors and the U.S. Attorney assigned to the case for their hard work and dedication in this investigation.”
The indictment alleges that on May 26, 2016, McDaniel and Wickware possessed Chase Bank personal checks and a Texas License to Carry a Handgun identification that had been stolen from mail receptacles.
The indictment also alleges that on November 17, 2016, McDaniel possessed a Kohl’s credit card that had been stolen from a mail receptacle. It also alleges that on November 22, 2016, Wickware and Freeman possessed a Texas Department of Public Safety first class letter that had been stolen from a mail receptacle.
According to testimony presented at detention hearings, the investigation revealed video of McDaniel breaking into six to eight panel mailboxes at apartment complexes in the Uptown/Dallas area. Wickware and Freeman were also identified stealing mail from apartment complexes. On November 22, 2016, U.S. Postal Inspectors trailed Wickware and Freeman as they broke into panel mailboxes at apartment complexes in Uptown and Downtown Dallas. When inspectors then attempted to stop their vehicle, they threw mail from their car onto the roadway.
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 each count of possession of stolen U.S. mail is five years in federal prison and a $250,000 fine.
The investigation is being led by the U.S. Postal Inspection Service with assistance from the Dallas Police Department. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
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Couple Sentenced in Murder-for-Hire CaseRead the Press Release
AMARILLO, Texas — Randy Exavier Greene, 21, formerly of Stratford, Texas, and his co-conspirator, Brandi Nicole Blanco, 31, of Dalhart, Texas, were each sentenced this week by U.S. District Judge Sidney A. Fitzwater to serve 60 months in federal prison, following their guilty pleas in August 2016 to a superseding information charging each with one count of conspiracy to use an interstate commerce facility in the commission of murder-for-hire. U.S. Attorney John Parker of the Northern District of Texas made the announcement.
Engaged to be married, Brandi Blanco and Randy Greene lived in Texas until January 2016, when they moved to Florida.
According to documents filed in the case, from approximately February to April 2016, Blanco and Greene used a cellphone to make calls from Florida to an individual (Person A) in Texas during which they solicited Person A to murder, for a sum of cash, the victim.
Person A received a phone call from Greene on February 22, 2016, in which Greene inquired if Person A knew the victim. Greene told Person A that Blanco was the beneficiary of a $1 million life insurance policy on the victim. Greene also told Person A that if he/she would “take care” of the victim, he/she could get some money out of the policy. Person A reported the call to the Dalhart Police Department.
In subsequent telephone conversations between Greene and Person A, and Blanco and Person A, the murder-for-hire, or as Greene called it, the “Hartley situation,” was discussed. Green said that he would pay $100,000 to Person A to commit the murder. Greene also advised that they wanted it to happen soon after he and Brandi Blanco “got caught up” (arrested) so they would be in jail and have an alibi. Their plan was for Blanco to collect on the insurance policy after she got out of jail. She also planned to get custody of three of her children when she was released from jail.
In a February 23, 2016 phone conversation, Blanco offered $125,000 to Person A to do the job and swore to God that she would pay Person A. Person A advised her that he/she would need information because he/she wanted to do the job right because he/she could “go to the chamber for this.” Blanco interrupted Person A and told Person A to do the job alone, saying that she would tell Person A all they needed to know to murder the victim.
In a phone conversation the next day, Greene told Person A that he wanted Blanco to be on camera in a Walmart when the murder happened. On February 26, 2016, Person A called Blanco to discuss the “deal” they had been talking about, and in that conversation, she told Person A to murder the victim while he was at work. When Person A suggested that he/she make it look like an accident, Blanco agreed.
In a March 3, 2016, conversation, Person A told Blanco that he/she was going to “take care of the situation” the day she got on the bus from Florida to Texas. Blanco told Person A that the insurer would have to find her immediately after the victim’s death.
Subsequently, Blanco and Greene were arrested on state charges. They were charged in a federal indictment in May 2016 with charges related to the murder-for-hire. The murder was not committed.
The Federal Bureau of Investigation, Texas Department of Public Safety - Texas Ranger Division, and the Dalhart Police Department investigated the case. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto were in charge of the prosecution.
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Northern District of Texas U.S. Attorney’s Office Collects $27,693,232 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
DALLAS – U.S. Attorney John Parker announced today that the Northern District of Texas collected $27,693,232 in criminal and civil actions in Fiscal Year 2016. Of this amount, $16,872,986 was collected in criminal actions and $10,820,245 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $74,874 in criminal cases pursued jointly with these offices
Attorney General Loretta E. Lynch announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“I’m particularly pleased to see an increase in collections of more than $10 million over last year,” said U.S. Attorney Parker. “The message in these numbers should be clear. This office can be very patient and won’t just go away. We will continue to vigorously pursue all available enforcement remedies to recover assets for both victims of crime and the federal treasury for so long after sentencing or judgment as is necessary.”
Substantial collections in FY 2016 in the District included:
- More than $4 million in funds from multiple bank accounts, four luxury vehicles, artwork, a grand piano, wine collection, hundreds of pieces of high-end crystal, furs, handbags, jewelry, luggage, shoes, and watches returned to the Collin Street Bakery within 60 days of sentencing in the massive embezzlement, bank fraud, and conspiracy to commit money laundering case, U.S. v. Sandy and Kay Jenkins;
- $3.5 million from Preferred Imaging Centers, LLC in settlement of a False Claims Act qui tam case;
- $3.28 million settlement from the estate of Kenneth Rice in a False Claims Act health care fraud case;
- $1.8 million in restitution, plus a $100,00 fine, and several hundred thousands of dollars forfeited to the government that was paid in full at sentencing in the U.S. v. Robert Gross health care fraud;
- $1.1 million in forfeited assets restored to restitution in the U.S. v. Cyprian and Patricia Akamnonu health care fraud case;
- $762,150, more than half of the $1.3 million restitution owed to the U.S. Department of Housing and Urban Development (HUD), in the U.S. v. Lonnie Brantley and Steve Holmes housing fraud case;
- $500,000 paid in full at sentencing in the U.S. v. Daniel Bergin securities fraud case;
- $324,750 in restitution to the National Credit Union Association in the U.S. v. Theresa Portillo bank fraud case; and
- $276,400 in restitution paid in full to the Internal Revenue Service (IRS) in the U.S. v. Bettye Blount tax fraud case
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including HUD, the U.S. Department of Health and Human Services, the IRS, Small Business Administration, and U.S. Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Texas, working with partner agencies and divisions, collected $10,695,313 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Human Trafficking Institute’s 2016 Training Held TodayRead the Press Release
DALLAS – The North Texas Anti-Trafficking Team (NTATT), led by the U.S. Attorney’s Office for the Northern District of Texas, sponsored a day-long training session today, “Investigating Beneath the Surface,” which was held at the Mac Bernd Professional Development Center in Arlington, Texas, announced U.S. Attorney John Parker of the Northern District of Texas, who provided opening remarks at the event.
Nearly 220 attendees from law enforcement and non-government agencies who provide victim services attended the training.
Highlights of the training included presentations by experts on these topics: 1) Pimping: The New Game in Town; 2) Little Girls Lost: Trial of a “John”; 3) State and Federal Trafficking Laws; 4) A panel on Services to Trafficked Persons; 5) Tools and Tactics for Labor Trafficking Investigations; 6) A Case Study on H2A Agricultural Visas and Labor Trafficking; and 7) Understanding and Treating Trauma Bonds in Victims of Human Sex Trafficking.
The U.S. Attorney’s Office for the Northern District of Texas launched the NTATT in 2006 to combat human trafficking in the Dallas/Fort Worth metroplex and surrounding counties. The NTATT is comprised of federal, state, and local law enforcement agencies. The NTATT has also partnered with non-government agencies to provide necessary services for victims of human trafficking.
The goal of the NTATT is to work with law enforcement and private agencies to discover and rescue victims of human trafficking while identifying and prosecuting offenders. This goal is achieved through heightened law enforcement and victim service presence in the community, operations to identify victims and traffickers, providing training for law enforcement officers, and outreach awareness campaigns in the community.
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Federal Grand Jury Indicts Colleyville Businessman on Mail Fraud Stemming from Ponzi Oil and Gas Fraud SchemeRead the Press Release
FORT WORTH, Texas — A Colleyville, Texas, businessman, James VanBlaricum, who operated an oil and gas exploration company, was indicted today by a federal grand jury in Fort Worth, Texas, on one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
VanBlaricum, 77, has been in custody since his arrest in mid-August 2016 by U.S. Postal Inspectors on a related federal criminal complaint. In ordering the detention, U.S. Magistrate Judge Jeffrey L. Cureton noted that VanBlaricum’s extensive travel and ties to numerous foreign countries made him a risk of flight or nonappearance unless detained.
According to the complaint, Signal Oil and Gas Company (SOG) was incorporated by VanBlaricum in 2000; he was the registered agent and sole incorporator. The Land Lease Program (LLP) was one of several oil and gas investment programs offered for purchase to SOG investors. Texas Energy Management and Texas Energy Mutual (TEM) are the names of SOG’s follow-on companies that VanBlaricum and other coconspirators began operating in 2008. SOG initially operated from an Airport Freeway address in Fort Worth, but in 2004, it also began receiving mail at a commercial mail receiving agency on Northwest Highway in Grapevine, Texas. The name on this mail box was changed in November 2010 to TEM.
The investigation began when the U.S. Postal Inspection Service was contacted by the Texas State Securities Board (TSSB) after it began receiving complaints about VanBlaricum related to various programs he promoted and misrepresentations made to them by SOG salespeople. One of the main complaints was lack of investment payments. In fact, an investigation disclosed that from January 21, 2006, through January 31, 2009, 53 victims of a mail fraud scheme involving SOG’s LLP were identified with investments totaling $2,633,090.
According to the indictment, VanBlaricum formed SOG and TEM, ostensibly for the purpose of investing in mineral leases, and oil and gas production and earning a profit from those investments. The indictment alleges that he ran the fraud scheme from approximately January 2007 to August 2016, from his residence and home office located on Sapphire Circle in Colleyville, where many of the acts and transactions alleged in the indictment took place. VanBlaricum raised millions of dollars from investors by various means, including selling securities in the form of limited partnerships interests in “programs” offered by COG and TEM.
VanBlaricum employed sales agents who worked on his behalf to raise money, including selling securities in the form of limited partnership interests in “programs” offered by SOG and TEM. Both personally and through investors, VanBlaricum deceived investors and potential investors by misrepresenting material facts. For example, he represented that investors would earn an “assured” rate of return on their initial investment, and they would receive a full refund of their initial investment amount after a defined period of time. He also represented that he intended to use a certain percentage of investors’ money to purchase mineral leases, and oil and gas well projects, when in fact, he intended to spend a substantially smaller percentage on the leases and oil and gas well projects and use a substantial part of investors’ money for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and paying his personal expenses as well as personal expenses for family members, friends, and business associates.
VanBlaricum also represented that he had purchased certain assets, or was in the process of purchasing them, when in fact, he had not purchased the assets and was not in the process of purchasing them. He also represented that the oil and gas well projects were productive and profitable, when in fact, most were “dry holes,” produced oil for a short period of time, or had not been drilled.
When VanBlaricum made promises about the use of investor funds, he failed to state that he had made the same promises to other investors and then used those investors’ funds for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and payment of personal expenses for VanBlaricum and his family, friends, and business associates.
According to the indictment, VanBlaricum also identified himself to investors using a false name. VanBlaricum deposited investors’ funds into, and withdrew and expended investors’ funds, from accounts he controlled in the names of entities he controlled. He caused funds to be transferred to, withdrawn from, and deposited into various accounts to create the appearance of business operations and revenue that he knew did not exist. He also caused “lulling” payments to be paid to investors, ostensibly as returns on investment, when he knew the funds came from other investors rather than from business operations.
VanBlaricum, according to the indictment, secretly, and without authorization, took and spend money entrusted to him by investors for advertising; vacations and international travel; escort and dating services; rent payments; automobile purchases; and payroll and commissions for employees and sales agents.
The indictment includes a forfeiture allegation that would require VanBlaricum, upon conviction, to forfeit a money judgment in the amount constituting the proceeds traceable to the offense. He will also be required to forfeit 10 vehicles, two $25,000 surety bonds, and proceeds in eight Frost Bank and Chase Bank accounts.
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 mail fraud is 20 years in federal prison and a $250,000 fine.
The investigation is being led by the U.S. Postal Inspection Service with assistance from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Douglas A. Allen is in charge of the prosecution.
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Businessman Pleads Guilty to More Than $4.6 Million Wire Fraud SchemeRead the Press Release
DALLAS — Wesley Michael Woodyard, 65, most recently of Dallas, appeared in federal court this afternoon and pleaded guilty, before U.S. District Judge Sidney A. Fitzwater, to one count of wire fraud stemming from his scheme to defraud Ace European Insurance Company (ACE) of more than $4.6 million from approximately 2002 through 2013. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Woodyard, who has been in custody since his arrest in June 2016, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He could also be ordered to pay restitution. Sentencing is set for March 24, 2017.
According to documents filed in the case, from 1993 through 2015, Woodyard was the sole owner and operator of Ringler Associates of North Texas, Incorporated (RANT). From approximately 2002 through 2013, Woodyard devised and engaged in a fraud scheme in which he engaged in a pattern of deceitful conduct and false representations to fraudulently induce representatives of Ace European Insurance Company (ACE), a large insurance company located in London, England, to send approximately $4,674,258 to bank accounts that Woodyard controlled. ACE initially sent these funds to companies acting as a third party administrator; they then transferred the ACE funds to Woodyard.
Woodyard concealed his theft of ACE funds from the Ringler Insurance Agency (RIA). The fraud scheme allowed Woodyard to fraudulently retain commission funds earned by RIA. Woodyard repeatedly stole ACE funds, totaling approximately $4,674,258, that were wired from London. ACE intended Woodyard to honestly use these funds to purchase annuities for the benefit of many insurance claimants. However, as charged in the indictment, as part of the scheme to defraud ACE, Woodyard caused ACE to make 11 wire transfers to banks in the United States; these funds were later wired to bank accounts in Texas.
Woodyard falsely represented to ACE, as well as to third party administrators Roger Rich and Company and Vanbreda International, that he intended to lawfully use all funds received from ACE to purchase several life insurance annuity contracts from Metropolitan Life, Incorporated or some other legitimate insurance company. Woodyard caused ACE funds to be sent from Roger Rich and Company and Vanbreda directly to RANT, rather than to the annuity provider, thus denying RIA its earned commission for the transaction.
Woodyard fraudulently concealed from ACE and others that he unlawfully used the majority of ACE funds of his own personal financial benefit. He admitted he concealed the theft because he knew that ACE would never agree to send him approximately $4,674,258 in ACE funds if ACE knew he intended to steal the funds.
Out of the $4,674,258 in funds Woodyard fraudulently obtained, Woodyard paid out approximately $857,626 to beneficiaries, resulting in a net financial gain to Woodyard of $3,816,632.
The Federal Bureau of Investigation is in charge of the investigation. The prosecution is being handled by Assistant U.S. Attorney David Jarvis.
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Serial Armed Robber Sentenced to 25 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Kevin Howard, who admitted that he and his accomplice, Jerry Ware, committed the armed robberies of five 7-Eleven/RaceTrac stores in Dallas in October 2014, was sentenced yesterday by U.S. District Judge Ed Kinkeade to serve 300 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Howard, 24, pleaded guilty in April 2016 to one count of using, carrying, brandishing and discharging a firearm during or in relation to a crime of violence. Co-defendant Ware, 28, also of Dallas, pleaded guilty in July 2015 to two counts of the same offense.
According to documents filed in the case, the two committed five armed robberies in Dallas on October 24, 2014, and into the early morning hours of October 25, 2014, at the following locations:
October 24, 2014, 11:51 p.m. 7-Eleven store 2223 S. Beckley
October 25, 2014, 12:10 a.m. RaceTrac store 8124 Forest Lane
October 25, 2014, 12:35 a.m. 7-Eleven store 9320 Skillman
October 25, 2014, 12:50 a.m. 7-Eleven store 10340 Forest Lane
October 25, 2014, 1:20 a.m. 7-Eleven store 14801 Coit Road
All of these five robberies were committed in essentially the same manner, including Ware’s use and brandishing of the silver loaded firearm to threaten and force the store clerks to comply with his demands, while Howard stayed in the car as the getaway driver.
Howard also admitted that after this robbery spree, on October 28, 2014, he, on his own, committed the armed robbery of a 7-Eleven store at 10340 Forest Lane – the same store he and Ware robbed on October 25, 2014. Howard entered the store, brandished a loaded firearm, and demanded the cash-register money from the clerk. Minutes after the robbery, officers with the Dallas Police Department identified and arrested him. Inside the car, pursuant to a search warrant, law enforcement found the clothing Howard used in the robbery and the firearm, a loaded, chrome-colored Jimenez Arms, Model JA Nine, 9mm pistol.
The case was investigated by the Federal Bureau of Investigation and the Dallas Police Department. Criminal Chief Assistant U.S. Attorney Lisa J. Dunn prosecuted the case.
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GNC Enters into Agreement with Department of Justice to Improve its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Gnc Enters into Agreement with Department of Justice to Improve Its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
WASHINGTON - The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
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Convicted Search Engine Optimizer Indicted for Retaliating Against Former VictimRead the Press Release
DALLAS, Texas — Less than one year after being sentenced to 37 months in federal prison for attempting to extort 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, former search engine optimizer William Laurence Stanley, 53, was indicted this week for retaliating against the principle victim in the 2014 case. The indictment was announced today by U.S. Attorney John Parker of the Northern District of Texas.
This week’s indictment alleges that from approximately September 6 through September 28, 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 and derogatory comments and reviews online about the victim Company from the 2014 case.
Stanley’s conviction in the above-referenced case, stemmed from his and his sister, Lynn Faust’s online and telephone threats from 2013 through 2014 to ruin the reputation of the victim Company because of his pretense that the victim Company refused to pay him approximately $30,000. 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 caused 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, after serving the majority of his imprisonment term, 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.
On approximately September 21, 2016, according to the affidavit filed with the criminal complaint, Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also allegedly encouraged others to duplicate the negative content in as many places as possible. The investigation revealed, among other things, that Stanley created the derogatory blogs while he was on home confinement in Angleton.
The affidavit further notes that as a result of the recent derogatory online postings, the victim Company has suffered a significant loss of revenue, with the potential for additional loss of revenue so long as the postings remain online.
Stanley has been held in custody on the complaint filed on October 20, 2016, since he completed his previous BOP sentence on November 4, 2016. Following a detention hearing held on December 2, 2016, U.S. Magistrate Judge David L. Horan ordered that Stanley remain in custody. Judge Horan found there was no condition or combination of conditions that would reasonably assure Stanley’s appearance as required. He noted that Stanley has a house and family in Romania, and he has expressed an interest in returning there. A family member also told law enforcement that he would definitely flee the country if released from custody.
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, Stanley faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The FBI is investigating the case. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Last of Three Defendants Convicted for Role in Murder of Southlake, Texas, Man is SentencedRead the Press Release
FORT WORTH, Texas —The last of three defendants convicted for their respective roles in the May 2013 murder of Juan Jesus Guerrero Chapa in Southlake, Texas, Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” was sentenced this morning by Senior U.S. District Judge Terry R. Means to two life sentences to be run concurrently in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ledezma-Cepeda, 60, was convicted at trial in May 2016 on one count of interstate stalking and one count of conspiracy to commit murder for hire.
Last week, co-defendant Jose Luis Cepeda-Cortes, 60, was sentenced by Judge Means to serve two life sentences plus 240 months to run concurrently. He was convicted at the May 2016 trial on one count of interstate stalking, one count of conspiracy to commit murder for hire, and one count of tampering with documents or proceedings.
Ledezma-Cepeda’s son, co-defendant Jesus Gerardo Ledezma-Campano, 33, was sentenced in August 2016 to 240 months in federal prison. He pleaded guilty earlier this year to one count of interstate stalking and testified for the government at trial.
All three defendants are Mexican citizens; Cepeda-Cortes was legally in the U.S.
“The sentences in this case reflect the horrific and heinous nature of the defendants’ crimes,” said U.S. Attorney Parker. “These three men methodically hunted down their intended victim through several states, in and out of Mexico, and over several months for the sole purpose of facilitating his execution. On the day of the murder, once they ensured the gunman knew the victim’s location, Ledezma-Cepeda and Ledezma-Campano stood callously by while the victim was shot multiple times in broad daylight, with the victim’s wife and dozens of shoppers nearby.”
“The successful investigation and prosecution of this violent crime is an example of the great relationship between the Southlake Police Department and our federal partners,” said Southlake Police Chief James Brandon. “Our residents and the residents of North Texas should take comfort in the fact that we will utilize every resource at our disposal to bring criminals to justice.”
“The FBI is committed to fighting cartel violence in North Texas,” said Dallas FBI Special Agent in Charge Thomas M. Class, Sr. “The exhaustive investigative work by law enforcement in this case was reflected by the lengthy prison sentences handed down to the defendants.”
“The sentencing of this defendant, as well as the other two defendants in this sophisticated organization, demonstrates the partnership between local, state, and federal law enforcement,” said the DEA Dallas Field Division’s Special Agent in Charge Clyde E. Shelley, Jr. “We will not tolerate cartel violence in our community, and we will fight until justice is served for the victims of such heinous crimes.”
On May 22, 2013, at approximately 6:47 p.m., Juan Jesus Guerrero Chapa was ambushed and shot multiple times with a 9mm pistol while seated in his Range Rover that was parked at Southlake Town Square. A Toyota Sequoia pulled up behind the Range Rover, a gunman got out of that vehicle, walked up to the Range Rover, and fired several times through the window at Mr. Chapa, who died at the scene. Nearby, Mr. Chapa’s wife was not harmed.
According to evidence presented at trial and documents filed in the case, from approximately March 1, 2011, until May 22, 2013, the three defendants traveled in interstate and foreign commerce from Mexico to Southlake, and elsewhere, with the intent to kill, injure, harass and intimidate Mr. Chapa, and as a result of that travel, Mr. Chapa was killed. In addition, from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence on his computer related to the investigation.
The defendants were acting on orders from a man in Mexico, Rodolfo Villarreal Hernandez, known as “El Gato,” or “the Cat,” who wanted Mr. Chapa killed as revenge for his father’s murder. Over the course of the conspiracy, Ledezma-Campano and Ledezma-Cortes received money from Ledezma-Cepeda to pay for their expenses. Ledezma-Cepeda was paid by “El Gato.”
Ledezma-Cepeda asked his son, Ledezma-Campano, to assist in the search. Ledezma-Campano used his skill with electronic devices to assist in the search, and he created email accounts for Ledezma-Cepeda and “El Gato” to communicate with each other.
The defendants exchanged information via email to locate Mr. Chapa – exchanging personal information about Mr. Chapa and his family as well as information regarding vehicles associated with them and photographs of the Chapa residence in Southlake.
The defendants used various means to locate and track Mr. Chapa and members of his family. Cepeda-Cortes purchased surveillance cameras that were placed in various locations in Mr. Chapa’s neighborhood. In addition, while in the area, the defendants purchased and rented several vehicles that allowed them to frequently change vehicles and use non-descript rental vehicles to avoid detection by Mr. Chapa and his family. They placed automobile tracking devices not only on their own vehicles, but on vehicles owned and operated by Mr. Chapa and his relatives, including the Range Rover Mr. Chapa was in when he was murdered.
After the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill him. Ledezma-Campano met the two, whom he identified as “Clorox” and “Captain,” and concluded they were sent to kill Mr. Chapa. One of the men was, in fact, the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
On the day of the murder, Ledezma-Campano and Ledezma-Cepeda followed the victim around Southlake, and that afternoon, while the victim’s Range Rover was parked in a Walmart parking lot, Ledezma-Campano and Ledezma-Cepeda switched the tracking device on the Range Rover.
At approximately 6:00 p.m. on May 22, 2013, Mr. Chapa and his wife drove to Southlake Town Square. Ledezma-Campano and Ledezma-Cepeda, who had been parked near Chapa’s home, followed them. Mr. Chapa parked in his regular parking spot near a yogurt store, and Ledezma-Campano and Ledezma-Cepeda parked directly across from them and used binoculars to watch them.
As they waited, Ledezma-Cepeda was in regular contact, via Blackberry Messenger, with “El Gato.” Ledezma-Campano saw “Clorox” and “Captain” drive by in a Toyota Sequoia. Ledezma-Campano went into a coffee shop in Town Square and while inside he heard a commotion outside. He returned to Ledezma-Cepeda who told him “they shot him”
Ledezma-Campano and Ledezma-Cepeda waited several minutes as law enforcement responded before leaving the scene. “El Gato” told both of them to stop using the tracking device they carried in their vehicle. The next morning, they returned the rental car and drove directly into Mexico, along the way destroying the phones they had used.
The investigation was led by the FBI and the Drug Enforcement Administration, with assistance from the Southlake Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, US. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Texas Department of Public Safety, Tarrant County Sheriff’s Office, Tarrant County District Attorney’s Office, Fort Worth Police Department and Grapevine Police Department.
Assistant U.S. Attorneys Joshua Burgess and Aisha Saleem prosecuted the case.
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Five Plead Guilty to Kidnapping, Cocaine and Heroin Distribution, and/or Firearm Offenses in Case Where Numerous Shots Were Fired at Ennis Police Officer During High Speed PursuitRead the Press Release
DALLAS — Five defendants have pleaded guilty to kidnapping, cocaine and heroin distribution, and/or firearm offenses in a case related to the attempted kidnapping of an individual because of an unpaid drug debt. Today, Melissa Trevino, 23, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of conspiracy to commit kidnapping. She is the last of five defendants to enter guilty pleas in the case. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Trevino, faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for March 23, 2017.
Four other defendants charged in the case also recently pleaded guilty. One remaining defendant charged in the case, Jonathan Benitez, remains a fugitive.
Javier Martinez, 24, of Lancaster, Texas, pleaded guilty on November 15, 2016, to several felony offenses: one count each of conspiracy to commit kidnapping; possession with intent to distribute cocaine; possession with intent to distribute heroin; using, carrying, and brandishing a firearm during or in relation to a crime of violence; and possession of a firearm in furtherance of a drug trafficking crime. While Martinez faces a statutory maximum sentence of life in federal prison and a $2.75 million fine, if the Court accepts the plea agreement between the government and the defendant, Martinez should receive a total sentence of 40 years in federal prison. Sentencing is set for March 2, 2017.
Maria Guadalupe Bello, 22, pleaded guilty on November 1, 2016, to one count of conspiracy to possesses heroin with the intent to distribute it. She faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 16, 2017.
Jose Cardenas Aguirre, 25, pleaded guilty on October 25, 2016, to one count of conspiracy to commit kidnapping. He faces a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for February 9, 2017.
Indolfo Martinez, 47, who is Javier Martinez’s father, pleaded guilty on October 18, 2016, to one count of possession of cocaine with the intent to distribute. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for February 2, 2017.
According to documents filed in the case, on July 12, 2016, Javier Martinez, along with co-defendants Jose Cardenas Aguirre and Melissa Trevino, planned to kidnap another individual because of an unpaid drug debt involving cocaine. During the planned kidnapping, Javier Martinez and Aguirre wore ballistic vests and black camouflage clothing. The kidnapping was unsuccessful, and as Javier 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, Javier Martinez, using an AR-156 style rifle, fired numerous shots at a police officer. Javier Martinez led, supervised, and organized this planned kidnapping. Trevino also worked with Javier Martinez in selling illegal narcotics.
Between December 2015, and continuing to July 2016, Javier Martinez conspired to possess with intent to distribute cocaine and heroin. On February 5, 2016, Javier Martinez possessed a firearm in furtherance of these drug trafficking crimes.
Indolfo Martinez was his son’s cocaine supplier. In July 2016, Indolfo Martinez met with an individual and offered to sell that individual a kilogram of cocaine for $28,300. In the same conversation, Indolfo Martinez offered to sell three kilogram of cocaine to that individual for a reduced price of $28,000 per kilogram. During that conversation, Indolfo Martinez instructed this other individual, the purported cocaine purchaser, to use the code phrase, “horses with saddles,” when referencing cocaine.
In addition, according to the factual resume, on January 7, 2016, Javier Martinez sold another individual one ounce of heroin and offered to sell that same individual one kilogram of heroin for $40,000. During that same conversation, Javier Martinez offered to sell the same individual an AK-47 for $7,000 and an AR-15 rifle for $1,500. On April 11, 2016, Javier Martinez and Bello, who were involved in a romantic relationship since October 2015 and had lived together since January 2016, sold three ounces of heroin and two AR-15’s to another individual; these drug and gun sales took place at Javier Martinez’s residence.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former American Airlines Employee Sentenced to 72 months in Federal Prison for Role in Conspiracy to Transport, or Assist in Transporting, a Substance Represented to be Cocaine on Flights from DFW Airport as Part of an Undercover Law Enforcement OperationRead the Press Release
DALLAS — A former American Airlines employee who admitted to her role in transporting a substance that was represented to be cocaine on flights from Dallas-Fort Worth International Airport (DFW) was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Janelle Isaacs, 42, was sentenced by U.S. District Judge Jane J. Boyle to 72 months in federal prison following her guilty plea in June 2016 to one count of conspiracy to possess with intent to distribute and distribute at least five kilograms or more of cocaine. Isaacs has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas the previous month.
That superseding indictment charged Janelle Isaacs, Funaki Falahola, 35, Moniteveti Katoa, 53, Molitoni Katoa, 34, with the cocaine distribution conspiracy offense. All four defendants pleaded guilty to the offense. In September 2016, Moniteveti Katoa was sentenced to 188 months and Molitoni Katoa was sentenced to 90 months in federal prison. In November 2016, Funaki Falahola was sentenced to 240 months in federal prison.
According to documents filed in the case, the four used their positions of employment at DFW, or contacted a person or persons who had a position or positions of employment at DFW, to bypass security in order to transport kilogram quantities of a substance that was represented to be cocaine, in what they did not know was an undercover law enforcement operation. As part of the conspiracy, that ran from approximately April 18, 2013, through July 14, 2015, the substance that was represented to be cocaine was transported on commercial airlines flying from DFW to destinations in Las Vegas, Nevada; Newark, New Jersey; Phoenix, Arizona; Chicago, Illinois; Wichita Kansas; and San Francisco, California.
Isaacs admits she became suspicious that Moniteveti Katoa, her husband, was transporting some sort of controlled substance via commercial airlines around 2013 when he asked her if she could provide him information on where law enforcement officers were seated on airplanes. Despite Isaacs’ suspicion she admits to helping Moniteveti Katoa with his flight arrangements and air travel.
Moniteveti Katoa asked Isaacs to perform a “dry run” with a legal substance called “kava” so that she could build up her courage to cross a bag that contained what she believed to be cocaine. Isaacs performed at least one dry run in order to prepare her to bypass security.
On December 8, 2014, Moniteveti Katoa went to DFW Airport and met with Isaacs. Isaacs took a backpack that was provided by Moniteveti Katoa towards the TSA checkpoint, walked towards the employee portal, bypassed security, and then later provided that same backpack to Moniteveti Katoa so that he could fly, what she and Moniteveti Katoa believed was 3 kilograms of something illegal, to a destination in Kansas and deliver it for payment.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Defendant Sentenced to Two Life Sentences for Role in May 2013 Murder of Southlake, Texas, ManRead the Press Release
FORT WORTH, Texas —Jose Luis Cepeda Cortes, 60, one of the Mexican citizens convicted for his role in the May 2013 murder of Juan Jesus Guerrero Chapa in Southlake, Texas, was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Cepeda Cortes was sentenced by Senior U.S. District Judge Terry R. Means to two life sentences plus 240 months to run concurrent. Cepeda Cortes was convicted at trial in May 2016 on one count of interstate stalking, one count of conspiracy to commit murder for hire and one count of tampering with documents or proceedings.
Co-defendant Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” 60, also a Mexican citizen, was also convicted at trial in May 2016 on one count of interstate stalking and one count of conspiracy to commit murder for hire. Each offense carries a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is scheduled for December 6, 2016.
Ledezma-Cepeda’s son, Jesus Gerardo Ledezma-Campano, 33, was sentenced by Senior U.S. District Judge Terry R. Means to 20 years in federal prison on August 18, 2016. Ledezma-Campano pleaded guilty in March 2016 to one count of interstate stalking and testified for the government at trial.
On May 22, 2013, at approximately 6:47 p.m., Juan Jesus Guerrero Chapa was ambushed and shot multiple times with a 9mm pistol while seated in his Range Rover that was parked at Southlake Town Square. A Toyota Sequoia pulled up behind the Range Rover, a gunman got out of that vehicle, walked up to the Range Rover, and fired several times through the window at Mr. Chapa, who died at the scene. Nearby, Mr. Chapa’s wife was not harmed.
According to evidence presented at trial and documents filed in the case, from approximately March 1, 2011, until May 22, 2013, the three defendants traveled in interstate and foreign commerce from Mexico to Southlake, and elsewhere, with the intent to kill, injure, harass and intimidate Mr. Chapa, and as a result of that travel, Mr. Chapa was killed. In addition, from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence on his computer related to the investigation.
The defendants were acting on orders from a man in Mexico, Rodolfo Villarreal Hernandez, known as “El Gato,” or “the Cat,” who wanted Mr. Chapa killed as revenge for his father’s murder. Over the course of the conspiracy, Ledezma-Campano and Ledezma-Cortes received money from Ledezma-Cepeda to pay for their expenses. Ledezma-Cepeda was paid by “El Gato.”
Ledezma-Cepeda asked his son, Ledezma-Campano, to assist in the search. Ledezma-Campano used his skill with electronic devices to assist in the search, and he created email accounts for Ledezma-Cepeda and “El Gato” to communicate with each other.
The defendants exchanged information via email to locate Mr. Chapa – exchanging personal information about Mr. Chapa and his family as well as information regarding vehicles associated with them and photographs of the Chapa residence in Southlake.
The defendants used various means to locate and track Mr. Chapa and members of his family. Cepeda-Cortes purchased surveillance cameras that were placed in various locations in Mr. Chapa’s neighborhood. In addition, while in the area, the defendants purchased and rented several vehicles that allowed them to frequently change vehicles and use non-descript rental vehicles to avoid detection by Mr. Chapa and his family. They placed automobile tracking devices not only on their own vehicles, but on vehicles owned and operated by Mr. Chapa and his relatives, including the Range Rover Mr. Chapa was in when he was murdered.
After the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill him. Ledezma-Campano met the two, whom he identified as “Clorox” and “Captain,” and concluded they were sent to kill Mr. Chapa. One of the men was, in fact, the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
On the day of the murder, Ledezma-Campano and Ledezma-Cepeda followed the victim around Southlake, and that afternoon, while the victim’s Range Rover was parked in a Walmart parking lot, Ledezma-Campano and Ledezma-Cepeda switched the tracking device on the Range Rover.
At approximately 6:00 p.m. on May 22, 2013, Mr. Chapa and his wife drove to Southlake Town Square. Ledezma-Campano and Ledezma-Cepeda, who had been parked near Chapa’s home, followed them. Mr. Chapa parked in his regular parking spot near a yogurt store, and Ledezma-Campano and Ledezma-Cepeda parked directly across from them and used binoculars to watch them.
As they waited, Ledezma-Cepeda was in regular contact, via Blackberry Messenger, with “El Gato.” Ledezma-Campano saw “Clorox” and “Captain” drive by in a Toyota Sequoia. Ledezma-Campano went into a coffee shop in Town Square and while inside he heard a commotion outside. He returned to Ledezma-Cepeda who told him “they shot him”
Ledezma-Campano and Ledezma-Cepeda waited several minutes as law enforcement responded before leaving the scene. “El Gato” told both of them to stop using the tracking device they carried in their vehicle. The next morning, they returned the rental car and drove directly into Mexico, along the way destroying the phones they had used.
The investigation was led by the FBI and the Drug Enforcement Administration, with assistance from the Southlake Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, US. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Texas Department of Public Safety, Tarrant County Sheriff’s Office, Tarrant County District Attorney’s Office, Fort Worth Police Department and Grapevine Police Department.
Assistant U.S. Attorneys Joshua Burgess and Aisha Saleem are prosecuting the case.
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Lubbock Defendants Affiliated with Crips Criminal Street Gang Plead Guilty to Roles in Cocaine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Today, Dequan Deshawn Willard, 22, of Lubbock, Texas, appeared before U.S. Magistrate Judge D. Gordon Bryant and pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney John Parker of the Northern District of Texas. Willard faces a statutory penalty of not less than five years or more than 40 years in federal prison and a $4 million fine for the conspiracy charge and a statutory penalty of no less than five years and up to life and a $250,000 fine for the firearm charge.
Yesterday, three co-conspirators: William Emmanuel Spence, 27, Jasmine Jamal Spence, 28, and Antonio Deon Ray Montgomery, 21—all brothers—each pleaded guilty before Judge Bryant to one count of conspiracy to distribute and possess with intent to distribute cocaine and cocaine base. All three defendants face a statutory penalty of not less than five years or more than 40 years in federal prison and a $4 million fine.
Judge Bryant ordered presentence reports for each of the defendants with sentencing dates to be set after the completion of those reports.
According to documents filed in the case, the defendants are either confirmed or suspected members of the Crips criminal street gang in Lubbock.
As part of a joint investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), and the Lubbock County Sheriff’s Office, law enforcement executed a search warrant at a residence on East 1st Place Street in Lubbock on June 16, 2016, where officers had made a controlled purchase from co-defendant Dequan Willard a few days earlier. Willard was present during the search in which officers recovered approximately 40 grams of cocaine base.
In September 2016, officers conducted several controlled purchases of cocaine base from Jasmine and William Spence. On October 4, 2016, officers executed search warrants at four residences in Lubbock related to the investigation.
Antonio Montgomery was arrested at a residence on East Cornell and he directed officers to where the cocaine base was kept in the house and officers recovered approximately 110 grams of cocaine base. Montgomery advised the residence belonged to William Spence. Officers also found items associated with the production and sale of cocaine base as well as a loaded firearm.
William Spence was located at a residence on 40th Street. He had $1,379 in cash on his person and $15,020 in cash in a shoe box in the garage. Officers also located a case matching the firearm found at the East Cornell location.
Officers also searched a location on Knoxville Street in Lubbock known to be the residence of Dequan Willard and William Spence. Dequan Willard was arrested at the residence and a loaded firearm was located in the bed where he had been sleeping. In a shoe box with the name “Tucc”—Willard’s street name—written on the side, officers found approximately 427 grams of cocaine. Officers also found another bag in the residence that contained 427 grams of cocaine and also located $8,900 cash in William Spence’s bedroom. Inside of a red pickup truck parked at the residence, officers recovered an additional 84 grams of cocaine; Willard had been observed driving this pickup and his mail was found in the truck. Officers also located an additional 997 grams of cocaine in a Chevrolet Impala at the residence. Inside the vehicle, officers located documents belonging to William Spence and photos depicting both William and Jasmine Spence.
Jasmine Spence was arrested at a residence on 69th Street, where officers located approximately 40 grams of cocaine base in a kitchen drawer and an additional eight grams of cocaine base in sock in Jasmine Spence’s bedroom. Officers also discovered $7,410 in cash in the residence as well as a loaded handgun.
ICE, HSI, and the Lubbock County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Former Executive with Non-Profit that Provides Head Start Services in Dallas Admits to Embezzlement SchemeRead the Press Release
DALLAS — Evetta Galloway Griffin, 49, of Grand Prairie appeared this morning before U.S. District Judge Jane J. Boyle and pleaded guilty to theft or bribery concerning programs receiving Federal funds. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Griffin faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. According to the plea agreement, Griffin agrees to restitution arising from her conduct to victims or the community. Sentencing is set for March 16, 2017.
According to documents filed in the case, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.
Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.
As part of the scheme, Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.
The case was investigated by the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). First Assistant U.S. Attorney Chad Meacham is in charge of the prosecution.
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Executives, Surgeons, Physicians, and Others Affiliated with Forest Park Medical Center (FPMC) in Dallas Indicted in Massive ConspiracyRead the Press Release
DALLAS — Founders and investors of the physician-owned Forest Park Medical Center (FPMC) in Dallas, other executives at the hospital, and physicians, surgeons, and others affiliated with the hospital, have been charged in a federal indictment, returned by a grand jury in Dallas last month and unsealed today, with various felony offenses stemming from their payment and/or receipt of approximately $40 million in bribes and kickbacks for referring certain patients to FPMC. The announcement was made this afternoon by U.S. Attorney John Parker of the Northern District of Texas.
FPMC was an out-of-network hospital. According to the indictment, the referred patients were primarily ones with high reimbursing out-of-network private insurance benefits or benefits under certain federally-funded programs. FPMC’s owners, managers, and employees also attempted to sell patients with lower reimbursing insurance coverage, namely unwitting Medicare and Medicaid beneficiaries, to other facilities in exchange for cash. As a result of the bribes, kickbacks, and other inducements, from 2009 to 2013, FPMC billed such patients’ insurance plans and programs well over half of a billion dollars and collected over $200 million in paid claims.
The below-listed defendants are charged in the indictment:
Alan Andrew Beauchamp, 64, of Dallas
Richard Ferdinand Toussaint, Jr., 58, of Dallas
Wade Neal Barker, 51, of Dallas
Wilton McPherson Burt, 61, of Costa Rica
Andrea Kay Smith, 37, of Rockwall, Texas
Carli Adele Hempel, 40, of Plano, Texas
Kelly Wade Loter, 48, of Dallas
Jackson Jacob, 53, of Murphy, Texas
Douglas Sung Won, 45, of Dallas
Michael Bassem Rimlawi, 45, of Dallas
David Daesung Kim, 54, of Southlake, Texas
William Daniel Nicholson IV, 46, of Dallas
Shawn Mark Henry, 46, of Fort Worth, Texas
Mrugeshkumar Kumar Shah, 42, of Garland, Texas
Gerald Peter Foox, 69, of Tyler, Texas
Frank Gonzales Jr., 41, of Midland, Texas
Israel Ortiz, 49, of Dallas
Iris Kathleen Forrest, 56, of Dallas
Andrew Jonathan Hillman, 40, of Dallas
Semyon Narosov, 51, of Dallas
Royce Vaughn Bicklein, 44, of San Antonio, Texas
“Medical providers who enrich themselves through bribes and kickbacks are not only perverting our critical health care system, but they are committing a serious crime,” said U.S. Attorney John Parker. “Massive, multi-faceted schemes such as this one, built on illegal financial relationships, drive up the cost of healthcare for everyone and must be stopped.”“The charges announced today show that the government will not tolerate corrupt practices by medical providers motivated by greed,” said Dallas FBI Special Agent in Charge Thomas M. Class, Sr. “The FBI will continue to work with our law enforcement partners to identify those who manipulate and defraud our healthcare system and to seek their prosecution.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal health care programs,” said Special Agent in Charge Janice M. Flores of the DCIS Southwest Field Office. “Fraud and abuse by healthcare providers poses a significant threat to the viability of government health care programs, and today’s arrests demonstrate the commitment of DCIS and it partners in rooting out health care fraud and to hold those accountable for their actions.”
“I would like to acknowledge and thank our OIG criminal investigators, and their law enforcement partners, for their tireless efforts in pursuing this case,” said OPM Deputy Inspector General Norbert E. Vint. “Their fine work protects the Federal Employees Health Benefits Program from those who would manipulate the health care system in order to steal taxpayer dollars.”
"An important mission of the Office of Inspector General is to investigate allegations relating to fraud involving the Federal Employees' Compensation Act. We will continue to work with out law enforcement partners to investigate these types of allegations," stated Steven Grell, Special Agent-in-Charge of the Dallas Regional Office of the United States Department of labor, Office of Inspector General.
"The allegations against the defendants in this indictment indicate that patient trust was broken by the payments of kickbacks and bribes used to induce surgeons to use their hospital to perform services," said Special Agent in Charge Tamera Cantu. "IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue corporate owners and managers that use their company to violate laws, including healthcare regulations."
FPMC was founded by Beauchamp, Toussaint, Barker, Burt, and others as an out-of-network hospital; as such, it was free to set its own prices for services and was generally reimbursed at substantially higher rates than in-network providers. FPMC’s strategy was to maximize profit for physician investors by refusing to join the networks of insurance plans for a period of time after its formation, allowing its owners and managers to enrich themselves through out-of-network billing and reimbursement.
Toussaint and Barker co-owned FPMC; Beauchamp and Burt managed it. Beauchamp was FPMC’s Chief Operating Officer and was an investor in FPMC. Toussaint, an anesthesiologist, was the President of FPMC’s board of directors. Barker, a bariatric surgeon, was on FPMC’s board of directors. Burt was a Managing Partner of FPMC and was also an investor in FPMC.
FPMC’s referral coordinator, Smith, owned a shell entity known as Unique Healthcare that the coconspirators created to funnel bribe and kickback payments to surgeons in exchange for those individuals referring patients to FPMC. Smith tracked surgeries and referrals so surgeons and referral sources could receive “credit.” Another FPMC employee, Hempel, was FPMC’s Director of Bariatric Services; she led efforts to sell Medicare and Medicaid referrals from certain coconspirators to a non-FPMC facility.
Jacob owned a shell entity known as Adelaide Business Solutions that he and others used to funnel bribe and kickback payments to surgeons, primary care physicians, chiropractors, lawyers, worker’s compensation preauthorization specialists, and others in exchange for those individuals referring patients to FPMC or to surgeons who used the hospital’s facilities to perform certain medical procedures, including surgeries. Another company, Entity A, co-owned by Toussaint and Barker, was a commercial real estate group that provided commercial real estate services to FPMC and was used by the coconspirators as a conduit for bribe and kickback payments. Loter owned an advertising agency that received bribe and kickback payments on behalf of physicians.
According to the indictment, two bariatric surgeons, Kim and Nicholson, investors in FPMC, received $4,595,000 and $3,400,000, respectively, in bribe and kickback payments in exchange for referring their patients to FPMC. Three spinal surgeons, Won, Rimlawi, and Henry, also received bribe and kickback payments in exchange for referring their patients to FPMC. The indictment alleges that Won received $7,000,000 and Rimlawi received $3,800,000 in bribe and kickback payments. Henry was also an investor in FPMC. The surgeons spent the vast majority of the bribe payments marketing their personal medical practices, which benefitted them financially, or on personal expenses, such as cars, diamonds, and payments to family members.
Other physicians who received bribe and kickback payments in exchange for referring patients to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital include Shah, a pain management doctor; Gonzales, a chiropractor who received approximately $385,000 in bribes and kickbacks; and Foox, who owned an orthopedic clinic in Tyler, Texas, and received approximately $500,000 in bribes and kickbacks.
Forrest, a worker’s compensation preauthorization specialist, received approximately $450,000 in bribe and kickback payments in exchange for referring patients, including those she was preauthorizing, to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital. Bicklein was a worker’s compensation lawyer who received approximately $100,000 in bribe and kickback payments in exchange for referring patients, including his clients, to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital.
Ortiz owned a clinic that received approximately $1,100,000 in bribe and kickback payments for referring its patients to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital,
Collectively, Hillman and Narosov controlled a hospital consulting company, and they received approximately $190,000 in bribe and kickback payments in exchange for referring patient to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital.
According to the indictment, as part of the conspiracy, certain coconspirators also paid bribes and kickbacks of $500 per month to approximately 40 primary care physicians and practices to refer patients to the hospital or to surgeons associated with the hospital. In addition to paying surgeons and primary care physicians, certain coconspirators also paid a host of others, including FECA beneficiaries, workers’ compensation preauthorization specialists, lawyers, businesses, runners, and chiropractors. Certain coconspirators also “rented” space in doctors’ and chiropractors’ offices in outlying cities, including Foox’s clinic in Tyler, and clinics in Midland and Odessa, Texas, in exchange for patients being referred to FPMC or to surgeons who performed medical procedures at the hospital.
The bribes and kickbacks resulted in victim plans and programs being billed well over half of a billion dollars, including more than $10 million to the Department of Defense healthcare program TRICARE, more than $25 million to the Department of Labor FECA healthcare program, and more than $60 million to the federal employees’ and retirees’ OPM FEHBP healthcare program, and FPMC collecting more than $200 million in tainted and unlawful claims.
Each of the 21 defendants is charged with one count of conspiracy to pay and receive health care bribes and kickbacks; the maximum statutory penalty upon conviction is five years in federal prison and a $250,000 fine.
Beauchamp is charged with 10 counts of offering or paying and soliciting or receiving illegal remuneration, in violation of the federal Anti-Kickback Statute, and aiding and abetting. Toussaint, Barker, and Burt are each charged with five counts of this offense. Jacob is charged with eight, Shah with three, Rimlawi with two, and Won, Kim, Nicholson, Gonzales, and Forrest each with one count of this offense. The maximum statutory penalty upon conviction is five years in federal prison and a $25,000 fine.
Beauchamp is also charged with seven counts of violating the federal Travel Act and aiding and abetting. Jacob is also charged with six counts of this offense; Toussaint, Barker, Burt, and Jacob are also each charged with four counts of this offense; Foox is also charged with two counts of this offense; and Won, Kim, Nicholson, Henry, and Gonzales are also each charged with one count. The maximum statutory penalty upon conviction is five years in federal prison and a $250,000 fine.
Beauchamp, Toussaint, Barker, and Burt are also each charged with two counts of conspiracy to commit money laundering. Jacob and Henry are also each charged with one count of this offense. The maximum statutory penalty upon conviction is 20 years in federal prison and a $250,000 fine.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property, real or personal, which constitutes or is derived from proceeds traceable to the offenses. Restitution could also be ordered.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
The case was investigated by the FBI, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.
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Louisiana Man Sentenced to 30 months in Federal Prison for Role in Wire Fraud ConspiracyRead the Press Release
DALLAS — Leonard James McMorris, of Rayville, Louisiana, was sentenced this morning by Chief U.S. District Judge Barbara M. G. Lynn to 30 months in federal prison and ordered to pay $1,417,903 in restitution, following his guilty plea in March 2016 to his role in a conspiracy to commit wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
McMorris, 50, and co-conspirator, Constance Marie Kelly, 53, were indicted in February 2009 on the conspiracy and several substantive counts of wire fraud. McMorris was eventually arrested in the Western District of Louisiana in August 2015, and has remained in custody since his arrest. Kelly was never arrested and remains a fugitive.
According to plea documents filed in his case, from approximately 2002 to 2007, McMorris and Kelly conspired to commit an extensive fraudulent scheme. During this period, Kelly worked for LandAmerica American Title Company (American Title), a title insurance agent engaged in title insurance transactions for real estate closings. As part of her duties, she had access to funds deposited in the American Title escrow account at Compass Bank.
At various times in 2006 and 2007, as part of the scheme McMorris opened several business bank accounts at banks in Texas, including Bank of America, N.A., Bank One, N.A., Bank of Texas, N.A., and Compass Bank. During the conspiracy, Kelly used at least 11 checks and 51 wire transfers to fraudulently disburse approximately $1,417,904 of American Title escrow funds into several bank accounts in Texas that McMorris controlled. Kelly concealed from American Title that she made these unauthorized and fraudulent transfers to McMorris.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Last Defendant Pleads Guilty to Gang Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Diwone Nobles, a/k/a “Pooh,” 32, appeared before U.S. District Judge Reed C. O’Connor earlier this week and pleaded guilty to a child sex trafficking conspiracy, after jury selection began announced U.S. Attorney John Parker of the Northern District of Texas.
Nobles, who acted as a pimp, faces a minimum statutory penalty of 10 years and a maximum statutory penalty of life in federal prison, lifetime sex offender registration, lifetime supervised release and a $250,000 fine. Sentencing is set for March 20, 2017.
A total of nine defendants were charged in the case, all of whom are members of affiliates of the Polywood Crips in Ft. Worth. Five defendants were charged in the indictment with Nobles: Chad Johnson, a/k/a “Ocho Hood Fame,” 24, Audry Lane, a/k/a “Spud,” 29, Deon Bonner, a/k/a “Spanish Fly,” 26, Stanley Johnson, a/k/a “Pee Wee,” 24, and Katelyn Michelle Ward, a/k/a “KD,” 24. Audry Lane, Bonner and Stanley Johnson each pleaded guilty to one count of conspiracy to commit child sex trafficking. Chad Johnson pleaded guilty to one count of sex trafficking of children, and Ward pleaded guilty of using a facility of interstate commerce in aid of a racketeering enterprise. Last month, three others involved in the conspiracy, Alvin Lane, a/k/a “Spank,” 34, Serrah Arnold, 28, and Jessica Arnold, 23, who were charged in a felony Information pleaded guilty. Alvin Lane pleaded guilty to one count of conspiracy to commit sex trafficking of children; Serrah and Jessica Arnold each pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise.
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 numerous minor and adult females.
Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane, Katelyn 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, Katelyn 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 Katelyn 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 Deon 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 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, ICE HSI and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Tax Return Preparer Sentenced to Three Years in Federal PrisonRead the Press Release
DALLAS — Kevin Troy Jernigan, who owned a tax preparation business in Dallas, was sentenced today by U.S. District Judge David C. Godbey to 36 months in federal prison and ordered to pay more than $112,000 in restitution, following his guilty plea in July 2016 to one count of aiding or assisting in the preparation or presentation of a false or fraudulent individual income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Jernigan was taken into custody when he entered his guilty plea to the tax offense because of committing multiple violations of his pretrial release.
According to the factual resume filed in the case, since 2007, Jernigan was the owner and a return preparer at The Parks 11 located in Dallas. During tax years 2007 through 2012, Jernigan prepared and filed more than 1,300 tax returns that contained false and inflated deductions and credits which were intended to produce a fraudulently inflated refund to be paid by the IRS. The fraudulently income tax returns caused a tax loss of approximately $2,250,780 to the United States Treasury.
The factual resume further states that in January 2010, Jernigan prepared and filed with the IRS a 2009 tax return on behalf of taxpayer, “CJ.” In preparing and electronically filing that tax return, Jernigan included $27,019 as a Schedule C business loss. Jernigan knew CJ had not incurred the business loss reflected. As a result of the false deduction inserted by Jernigan, the refund was fraudulently inflated to $5,819 and resulted in a tax loss in the amount of $6,432.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Christopher Stokes was in charge of the prosecution.
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Five Affiliated with Physician Home Visit and Health Care Companies in Dallas Plead Guilty in Health Care Fraud ConspiracyRead the Press Release
DALLAS – A Dallas woman who was among those charged last year as part of a nationwide sweep led by the Medicare Fraud Strike Force for her alleged participation in Medicare fraud schemes pleaded guilty today, announced U.S. Attorney John Parker of the Northern District of Texas.
Myrna S. Parcon, a/k/a “Merna Parcon,” 63, pleaded guilty to one count of conspiracy to commit health care fraud. She faces a statutory penalty of up to 10 years in federal prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victim. Restitution may also be ordered. In addition, according to the plea agreement, she will be excluded from Medicare, Medicaid and all federal health care programs.
Last week, two of Parcon’s co-defendants, Oliva A. Padilla, 57, of Garland, Texas, and Ben P. Gaines, 56, of Plano, Texas, pleaded guilty to a conspiracy count, and each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Co-defendants Ransome N. Etindi, 56, of, Waxahachie, Texas, pleaded guilty earlier this year to conspiracy to commit health care fraud; he faces a maximum statutory penalty of 10 years in federal prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victim. Lita S. Dejesus, 70, of Allen, Texas, pleaded guilty to a conspiracy count and faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The one defendant charged in the case who has not pleaded guilty, Noble U. Ezukanma, 57, a physician from Fort Worth, Texas, is set to go to trial in January 2017, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, from approximately January 2009 through June 9, 2013, Parcon and the other five defendants conspired to defraud Medicare by making materially false and fraudulent representations and promises in connection with health care services, namely physician house call visits and home health care.
Parcon owned US Physician Home Visits (USPHV) and managed its operations. USPHV, located on Viceroy Drive in Dallas, provided physician home visits to Medicare beneficiaries. It also certified and recertified Medicare beneficiaries for home health services, and it provided medication to Medicare beneficiaries. It became a credentialed Medicare provider in May 2009.
Ezukanma was a medical doctor for USPHV, had an ownership interest in USPHV, and provided his Medicare number to USPHV to use to bill Medicare. Etindi was also a medical doctor for USPHV, served as its medical director, and also provided his Medicare number to USPHV to use to bill Medicare. Dejesus held herself out to Medicare as the owner of USPHV and served various roles, including office manager. Gaines formed a home health agency known as A Good Homehealth, a/k/a “Be Good Healthcare, Inc.,” in 2007, A Good Homehealth, which was located in the same office as USPHV, applied for a Medicare number. Parcon purchased A Good Homehealth through a straw buyer, and both Parcon and Gaines concealed Parcon’s ownership from Medicare.
Parcon and Padilla formed another home health care company known as Essence Home Health, a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas, and in December 2002, Padilla applied for a Medicare number for Essence. Parcon, Padilla, Dejesus and Gaines concealed from Medicare that Parcon exercised control over USPHV, A Good Homehealth and Essence Home Health. While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies. Had Medicare known about the improper relationship and true nature of the businesses, that is, the companies shared almost all of their beneficiaries, these companies would not have been allowed to enroll in the program and bill for services.
Once USPHV established a new patient and Ezukanma, Etindi or others conducted a home visit, USPHV, at the direction of Ezukanma, Parcon and Dejesus submitted billings for fraudulent claims for services not rendered.
USPHV submitted claims as if Ezukanma provided the services to Medicare beneficiaries, regardless of who actually performed the service; this caused Medicare to pay a higher reimbursement rate. Then, beginning in January 2013, the majority of claims for USPHV were submitted as if Etindi provided the services, regardless of who actually did perform the services. Ezukanma, Parcon and Dejesus submitted reimbursement claims for physician home visits that falsely represented to Medicare that Ezukanma and Etindi conducted comprehensive patient exams and prolonged service patient exams, when they did not. At the defendants’ directions, the majority of the claims fraudulently claimed that Ezukanma or Etindi spent a minimum of 90 minutes of face-to-face time with a patient, when in fact, most visits took a total of 15-20 minutes.
Ezukanma and Etindi signed Medicare Form 485s certifying the Medicare beneficiaries for home health services even if the beneficiary was ineligible to receive the benefits. They also signed and certified Form 485s regardless of the homebound status of the patient and often without any knowledge of the patient or the patient’s medical condition.
More than 97% of USPHV’s Medicare patients received home health care – whether they needed it or not. As a result of these false Form 485 certifications, Medicare paid more than $40 million in fraudulent home health services.
The investigation is being conducted by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Katherine Pfeifle is in charge of the prosecution.
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Dallas Man Who Admitted Role in AAFES Jewelry Theft Scheme is Sentenced to 17 Months in Federal prisonRead the Press Release
DALLAS — Arthur Lee Hightower, II, a Dallas man who was on the lam for more than seven months following his indictment in May 2015 for his role in a jewelry theft scheme that targeted the Army and Air Force Exchange Services (AAFES), was sentenced today, following his guilty plea in February 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Hightower II, 56, was sentenced to 17 months in federal prison by U.S. District Judge Sam A. Lindsay. He was also ordered to pay $47,740 in restitution.
In May 2015, Hightower and his former wife, Jessie Faye Hightower, a/k/a “Jessie Faye Lewis,” 55, of Balch Springs, Texas, and their two sons, Arthur Lee Hightower III, 34, of Lancaster, Texas, and Travoine Lee Hightower, 31, of Dallas, were charged in a federal indictment with felony offenses stemming from a scheme which began with Hightower II stealing 70 wedding ring sets valued at nearly $100,000 from AAFES. Jessie Fay Hightower and Arthur Lee Hightower III each pleaded guilty to one count of conspiracy to receive stolen government property (stolen ring sets) and were sentenced to 18-month and 24-month terms of probation, respectively. Travoine Lee Hightower pleaded guilty to one count of receiving stolen government property and was sentenced to a one-year term of probation.
According to plea documents filed in the case, Hightower II worked as a truck driver, and part of his duties included delivering AAFES merchandise to the AAFES offices in Dallas. On approximately October 3, 2014, Hightower II, who was responsible for safeguarding the merchandise, did not deliver all of the AAFES merchandise instead, he stole approximately 70 wedding ring sets from AAFES.
Hightower II admitted he gave several of the wedding ring sets to his co-defendant family members so they could pawn the stolen jewelry to obtain cash.
The case was investigated by agents of the Defense Criminal Investigative Service and the Air Force Office of Special Investigations. Assistant U.S. Attorney David Jarvis prosecuted.
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Dallas Man Sentenced to 60 Months in Federal Prison for Role in Enterprise That Promoted Prostitution at Various Hotels in DallasRead the Press Release
DALLAS — Mecose Mendale Shorter, 32, was sentenced today by U.S. District Judge David C. Godbey to 60 months in federal prison for engaging in an enterprise that promoted prostitution at various hotels in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Shorter pleaded guilty to one count of using a facility of interstate commerce in aid or a racketeering enterprise. Shorter’s co-defendants, Kenneth Laray White, 27, and his brother, Damion Kentrell White, 25, were sentenced earlier this year to 326 months and 240 months, respectively, in federal prison. Each pleaded guilty to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one firearm offense.
According to documents filed in the case, from approximately July 4, 2013, to July 22, 2013, Mecose Shorter, Damion White, and Kenneth White engaged in an enterprise that promoted prostitution in various hotels in Dallas. In early July 2013, Damion and Kenneth White recruited a mentally challenged 18-year-old girl to work for them in the prostitution enterprise. While Shorter had contact with the 18-year-old girl on various occasions, during this time period, he was engaged in the unlawful activity of promoting prostitution of another female, Jane Doe.
Shorter admitted he used facilities of interstate or foreign commerce, namely a cell phone and hotel rooms, with the intent to promote, manage, establish, carry on, and/or facilitate Jane Doe’s involvement in commercial sex acts. Shorter further admitted he received payments from Jane Doe for engaging in commercial sex acts.
Damion and Kenneth White knew their victim since she was 15 years old. When she was age 18, they devised a plan to recruit her to engage in commercial sex acts for them by taking advantage of her diminished mental capacity. In late June 2013, Damion White established a friendship with the victim, and then, in early July of 2013, he used false pretenses to convince her to leave her home with him.
That night, Kenneth and Damion White drove the victim to a motel in Dallas where Damion White had rented a room. Kenneth White used his cell phone to take provocative photos of the victim that they later used in advertisements they posted on backpage.com. They deprived her of food and prevented her from leaving the room to encourage her to engage in commercial sex acts for them. Kenneth White had sex with the victim, and the victim eventually engaged in commercial sex acts and provided the money she earned to Kenneth White. Kenneth and Damion White used the Internet and a cell phone to coordinate the victim’s commercial sex acts with potential customers.
Later, Kenneth and Damion White moved the victim to another motel in Dallas where they continued to compel her to engage in commercial acts during the latter part of July 2013. Officers with the Dallas Police Department rescued the victim from this motel on July 22, 2013.
The North Texas Trafficking Taskforce, including the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department, investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted the case.
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Serial Armed Robber Sentenced to 20 Years in Federal Prison for His Role in Four Armed RobberiesRead the Press Release
DALLAS —Devonte Aaron Dillard, 24, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 240 months in federal prison for his role in committing several violent armed robberies in Dallas in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Dillard pleaded guilty in July 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence. Judge Lindsay sentenced him to 120 months on each of the two counts, to run consecutively.
Three of Dillard’s codefendants in the case, Colby Cole Ditto, 21, Tatiana Renee Sallie, 20, and Trenton Kyle Sirkel, 21, have pleaded guilty to their respective roles in the conspiracy and are awaiting sentencing. Lead defendant Michael Deshun Holland, Jr., 22, is currently set to go to trial February 6, 2017, before Judge Lindsay.
According to documents filed in the case, the five defendants discussed and planned with each other, among other thing, the robberies of convenience stores located in Mesquite and Garland, Texas.
On April 17, 2015, while Sallie waited in the car, Dillard and Holland entered the Chevron Food Mart on Highway 80 in Mesquite and brandished a firearm. Dillard shot the store employee while he and Holland robbed the store.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered the 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered the 7-Eleven store on Gus Thomasson Road in Mesquite, brandished a firearm, struck an employee in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland, brandished a firearm, assaulted a store employee, and robbed the store.
The case was investigated by Mesquite Police Department, Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie Hoxie and Keith Robinson are in charge of the prosecution.
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Kidnapper Who Planned to Sell Victim into Sex Slavery is Sentenced to 204 Months in Federal PrisonRead the Press Release
DALLAS — Gregory Steven Hunt, a/k/a “K.C.,” of Dallas, was sentenced on Friday to 204 months in federal prison, following his guilty plea in April 2015 to one count of kidnapping, announced U.S. Attorney John Parker of the Northern District of Texas.
Hunt, 44, and his co-defendant, Steric Paul Mitchell, 46, planned to kidnap a female victim and sell her into sex slavery. Mitchell was convicted, after a nearly two-week trial in August 2015, on one count of conspiracy to commit kidnapping and one count of kidnapping. His sentencing date is pending.
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. introduced the victim to Hunt, who paid R.E. the $100 and then drove 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, raped her, and told her he planned to sell her into sexual slavery. He held her overnight at that location. Later, he 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 Man Pleads Guilty to Running Fraudulent Investment Companies and Obstructing Securities and Exchange Commission InvestigationRead the Press Release
A San Angelo, Texas, man pleaded guilty today to fraud and obstruction of justice charges in connection with two investment companies he ran that defrauded investors out of approximately $900,000 over a four-year period.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John R. Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Office made the announcement.
Stanley Jonathan Fortenberry, 50, pleaded guilty to two counts of mail fraud and one count of obstructing an official proceeding before U.S. Magistrate Judge D. Gordon Bryant Jr. of the Northern District of Texas. Sentencing will be scheduled at a later date.
As part of his guilty plea, Fortenberry admitted that he ran an investment company called Premier Investment Fund (Premier), which raised funds from investors for social media projects run by another company with ties to the country music industry. Fortenberry misled investors about the profitability of the company and about the destination of the investors’ funds. Fortenberry admitted that he diverted approximately half of investors’ funds into his own pocket and to pay the expenses of his fundraising operation.
Fortenberry also admitted that, from 2013 to 2014, he ran Wattenberg Energy Partners (Wattenberg), which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry admitted that he set up the company in his son’s name because he was then under investigation by the Securities and Exchange Commission (SEC) for misusing the Premier investors’ funds. He used a network of salespeople to solicit individuals over the phone to invest in drilling projects. Fortenberry admitted that he spent the vast majority of the funds on himself and the company’s fundraising operation. In October 2014, at an administrative hearing with the SEC, Fortenberry falsely denied having control of or working for Wattenberg.
Fortenberry admitted that the total loss to victims of both schemes was $887,311.
As part of the department’s investigation into Wattenberg, Peter Szondy, 70, and Stanley Stephen Fortenberry, 24, both pleaded guilty and admitted to committing fraud while working for Wattenberg.
The FBI’s Dallas Office investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case. The SEC has provided substantial assistance in this case and referred this matter to the department.
The Fraud Section plays a pivotal role in the department’s fight against white collar crime around the country. Today’s guilty plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Dallas Man Sentenced to 240 months in Federal Prison for Role in Conspiracy to Transport, or Assist in Transporting, a Substance Represented to be Cocaine on Flights from DFW Airport as part of an Undercover Law Enforcement OperationRead the Press Release
DALLAS — A Dallas-area man who admitted to his role in transporting a substance that was represented to be cocaine on flights from Dallas-Fort Worth International Airport (DFW) was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Funaki Falahola, 35, was sentenced by U.S. District Judge Jane J. Boyle to 240 months in federal prison following his guilty plea in May 2016 to one count of conspiracy to possess with intent to distribute and distribute at least five kilograms or more of cocaine. Falahola has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas the previous month.
That superseding indictment charged Funaki Falahola and three others, Moniteveti Katoa, 53, Molitoni Katoa, 34, and Janelle Isaacs, 42, with the cocaine distribution conspiracy offense. All four defendants pleaded guilty to the offense. In September 2016, Moniteveti Katoa was sentenced to 188 months and Molitoni Katoa was sentenced to 90 months in federal prison. Janelle Isaacs is scheduled to be sentenced on December 1, 2016. The statutory penalty for the offense is not less than 10 years and up to life in federal prison and a $10 million fine.
Funaki Falahola told undercover officers he had family members that could transport controlled substances via commercial airline. Funaki Falahola introduced Moniteveti Katoa to agents as his Uncle and family leader. Molitoni Katoa was also introduced as Falahola’s cousin and a person that could smuggle controlled substances into the DFW airport through his job at the cargo area at the DFW airport. Moniteveti Katoa’s wife, Janelle Isaacs, worked for American Airlines.
According to documents filed in the case, the four used their positions of employment at DFW, or contacted a person or persons who had a position or positions of employment at DFW, to bypass security in order to transport kilogram quantities of a substance that was represented to be cocaine, in what they did not know was an undercover law enforcement operation. As part of the conspiracy, that ran from approximately April 18, 2013, through July 14, 2015, the substance that was represented to be cocaine was transported on commercial airlines flying from DFW to destinations in Las Vegas, Nevada; Newark, New Jersey; Phoenix, Arizona; Chicago, Illinois; Wichita Kansas; and San Francisco, California.
Falahola introduced Moniteveti Katoa to the undercover officer who was interested in smuggling cocaine from DFW Airport. He noted that Moniteveti Katoa had worked for American Airlines for 25 years and was a leader in the Tongan community. Falahola advised the undercover officers that they could transport the cocaine to major U.S. cities as well as to Hawaii and New Zealand. Moniteveti Katoa advised the undercover officer that he was willing to fly to locations in advance of smuggling the cocaine to conduct security checks. In fact, from September 2013 through May 2015, Moniteveti Katoa smuggled what he thought was cocaine on at least six flights from DFW Airport to Las Vegas, Newark, Chicago, Wichita, San Francisco, and Tempe, Arizona. Falahola was with Moniteveti Katoa on the Las Vegas trip.
In June 2013, Falahola and other defendants provided security in a drug protection arrangement for the sale of 20 kilograms of cocaine in Dallas. Falahola was paid $2800 for his protection services, and he paid the others out of this money.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Fourth Defendant Convicted in Scheme that Defrauded Software Company of More Than $16 Million Worth of Virtual CurrencyRead the Press Release
FORT WORTH, Texas – A Whittier, California, man was convicted today of wire fraud in connection with his involvement in a scheme to defraud a software company of more than $16 million, announced U.S. Attorney John Parker of the Northern District of Texas and Assistant Attorney General for the Criminal Division Leslie R. Caldwell.
Anthony Clark, 24, was convicted, following a three-day jury trial before U.S. District Judge Reed C. O’Connor, on an indictment charging one count of conspiracy to commit wire fraud. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Sentencing has been scheduled for February 27, 2017.
Evidence presented at trial showed that Clark and three co-conspirators defrauded software company Electronic Arts (EA). EA is the publisher of a video game called FIFA Football, in which players can earn “FIFA coins,” a virtual in-game currency generally earned based on the time users spend playing FIFA Football. Due to the popularity of FIFA Football, a secondary market has developed whereby FIFA coins can be exchanged for U.S. currency. Clark and his co-conspirators circumvented multiple security mechanisms created by EA in order to fraudulently obtain FIFA coins worth over $16 million. Specifically, Clark and his co-conspirators created software that fraudulently logged thousands of FIFA Football matches within a matter of seconds, and as a result, EA computers credited Clark and his co-conspirators with improperly earned FIFA coins. Clark and his co-conspirators subsequently exchanged their FIFA coins on the secondary market for over $16 million.
Co-conspirators Nick Castellucci, 24, of, New Jersey; Ricky Miller, 24, of Arlington, Texas; and Eaton Zveare, 24, of Lancaster, Virginia, previously pleaded guilty and await sentencing.
The FBI and Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorneys Brian Poe and C. Heath of the Northern District of Texas and Senior Counsel Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are in charge of the prosecution.
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Fourth Defendant Convicted in Scheme That Defrauded Software Company of over $16 Million Worth of Virtual CurrencyRead the Press Release
A Whittier, California man was convicted today of wire fraud in connection with his involvement in a scheme to defraud a software company of over $16 million, announced Assistant Attorney General for the Criminal Division Leslie R. Caldwell and U.S. Attorney John R. Parker of the Northern District of Texas.
Anthony Clark, 24, was convicted by a jury sitting in Fort Worth, Texas, of one count of conspiracy to commit wire fraud. Sentencing has been scheduled for February 27, 2017.
Evidence presented at trial showed that Clark and three co-conspirators defrauded software company Electronic Arts (EA). EA is the publisher of a video game called FIFA Football, in which players can earn “FIFA coins,” a virtual in-game currency generally earned based on the time users spend playing FIFA Football. Due to the popularity of FIFA Football, a secondary market has developed whereby FIFA coins can be exchanged for U.S. currency. Clark and his co-conspirators circumvented multiple security mechanisms created by EA in order to fraudulently obtain FIFA coins worth over $16 million. Specifically, Clark and his co-conspirators created software that fraudulently logged thousands of FIFA Football matches within a matter of seconds, and as a result, EA computers credited Clark and his co-conspirators with improperly earned FIFA coins. Clark and his co-conspirators subsequently exchanged their FIFA coins on the secondary market for over $16 million.
Co-conspirators Nick Castellucci, 24, of New Jersey; Ricky Miller, 24, of Arlington, Texas; and Eaton Zveare, 24, of Lancaster, Virginia, previously pleaded guilty and await sentencing.
The FBI and the Internal Revenue Service investigated the case. Senior Counsel Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Brian Poe and Candina Heath of the Northern District of Texas are prosecuting the case.
Federal Jury Convicts San Angelo Man for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
LUBBOCK, Texas — Late yesterday, following a one-day trial before Senior U.S. District Judge Sam R. Cummings, a federal jury convicted Richard Jasso, 39, of San Angelo, Texas, on one count of distribution and possession with intent to distribute 50 grams of more of methamphetamine and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence, without parole. A sentencing date was not set.
Jasso has been in custody since his arrest on July 13, 2016, when numerous defendants, most from the San Angelo area, were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. Twelve defendants, including the drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, were charged in an indictment with various felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo.
The government presented evidence at trial that Jasso delivered 54 net grams of pure methamphetamine to an individual working at the direction of the Drug Enforcement Administration. The buy took place in San Angelo.
With Jasso’s conviction, all 12 defendants charged in the indictment have been convicted and await sentencing. One defendant, Jesse Huerra, 31, was convicted at trial in San Angelo in September 2016 on methamphetamine distribution and firearm charges. He faces a mandatory life sentence.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Moore County Marijuana Trafficker Sentenced to 188 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — Guadalupe Reyes, a/k/a “Lupe,” 49, of Etter, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 188 months in federal prison, following his guilty plea in June 2016 to one count of conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
In addition, Reyes must forfeit to the government several parcels located in Moore County, Texas.
Co-defendant Marco Saucedo, 45, of Cactus, Texas, was sentenced in September 2016 to 48 months in federal prison following his guilty plea to one count of unlawful use of a communications facility.
According to documents filed in the case, in November 2014, officers with the Cactus Police Department responded to a weapon being discharged at a residence in Cactus that was owned by Guadalupe Reyes, and they determined that the individual who discharged the firearm was renting the property from Reyes. After obtaining consent to search, officers found more than $130,000 in cash inside the residence, which the resident advised was cash that he, at the direction of Reyes and Saucedo, brought back the previous week from Wichita and Topeka, Kansas.
The resident further disclosed he had been working for Reyes for several months, transporting large amounts of marijuana from Amarillo and Fritch, Texas, to other states, such as Kansas and Ohio. He would also transport large amounts of cash – proceeds from the sale of the marijuana – from those locations to the Cactus area, all at the direction of Reyes and Saucedo, who would pay him a set amount for each of the runs he made.
The resident indicated he had made approximately 10 trips to Wichita, Topeka, and Kansas City, Kansas, as well as to Toledo, Ohio, to deliver marijuana for Reyes, estimating that he had delivered approximately 8,000 pounds of marijuana while employed by Reyes. He further stated that on at least four occasions, he had returned with approximately $400,000 in cash for marijuana he had delivered. He further stated that Reyes instructed him to keep the money at the residence until it was retrieved by other, unnamed individuals. The individual also stated that both Reyes and Saucedo had directed him to only use pre-paid cell phones when communicating with them or the buyers.
In recorded conversations in November 2014, Reyes stated, among other things, that he was worried about law enforcement taking some of his properties.
This OCDETF case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Moore County Sheriff’s Office and the Cactus Police Department. Assistant U.S. Attorney Sean Long was in charge of the prosecution.
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Dallas County Man Who Fired Numerous Shots at Officer with Ennis Police Department During a High Speed Pursuit Pleads GuiltyRead the Press Release
DALLAS — A Lancaster, Texas, Man, Javier Martinez, 24, appeared this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to several felony offenses related to his involvement in an attempted kidnapping and then subsequently firing numerous shots at an officer with the Ennis Police Department during a high-speed pursuit, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Martinez pleaded guilty to one count each of conspiracy to commit kidnapping; possession with intent to distribute cocaine; possession with intent to distribute heroin; using, carrying, and brandishing a firearm during or in relation to a crime of violence; and possession of a firearm in furtherance of a drug trafficking crime. While Martinez faces a statutory maximum sentence of life in federal prison and a $2.75 million fine, if the Court accepts the plea agreement between the government and the defendant, Martinez should receive a total sentence of 40 years in federal prison. Sentencing is set for March 2, 2017, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, on July 12, 2016, Martinez, along with co-defendants Jose Cardenas Aguirre, 25, and Melissa Trevino, 23, 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. Martinez led, supervised, and organized this planned kidnapping.
A trial date of December 5, 2016, has been set for defendants Aguirre and Trevino. Three other defendants charged in the case have pleaded guilty and are awaiting sentencing.
Between December 2015, and continuing to July 2016, Martinez conspired to possess with intent to distribute cocaine and heroin. On February 5, 2016, Martinez possessed a firearm in furtherance of these drug trafficking crimes.
In addition, according to the factual resume, on January 7, 2016, Martinez sold another individual one ounce of heroin and offered to sell that same individual one kilogram of heroin for $40,000. During that same conversation, Martinez offered to sell the same individual an AK-47 for $7,000 and an AR-15 rifle for $1,500. On April 11, 2016, Martinez sold three ounces of heroin and two AR-15’s to another individual; these drug and gun sales took place at his residence.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Men Convicted at Trial for Interfering with a Flight Crew are SentencedRead the Press Release
AMARILLO, Texas — Two men who were convicted after an eight-day trial in June 2016 on the felony offense of interference with a flight crew and aiding and abetting were sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Jonathan Khalid Petras, 21, was sentenced by U.S. District Judge Sidney A. Fitzwater to seven months in federal prison, and Wisam Imad Shaker, 23, was sentenced to five months in federal prison. Judge Fitzwater also ordered them to pay $6,890 in restitution, jointly and severally. They must surrender to the Bureau of Prisons on January 3, 2017.
At trial, the government presented evidence that on August 31, 2015, the defendants, both residents of the San Diego area, were aboard Southwest Airlines flight 1522, from San Diego to Chicago. During that flight, the defendants, who were sitting together in two adjacent rows, repeatedly failed to comply with safety instructions, were loud and disruptive, screamed profanities at flight attendants when they were denied alcohol, and some of the men lunged and made other aggressive movements toward the flight attendants.
The flight was diverted to Rick Husband International Airport in Amarillo so law enforcement could remove the defendants from the flight.
The FBI, the Amarillo Police Department and the Rick Husband International Airport Police investigated the case. Assistant U.S. Attorneys Mark Penley, Joshua Frausto and Amy Burch prosecuted the case.
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Federal Jury Convicts Two Former Postal Employees in Scheme to Defraud Worker's Compensation ProgramRead the Press Release
DALLAS — Following a nearly one-week trial before U.S. District Judge Sam A. Lindsay, two former employees of the U.S. Postal Service were convicted on felony offenses stemming from their scheme to defraud the Department of Labor’s (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
McArthur Baker, 69, and Tonya Evans, 52, both of Dallas, were each convicted on one count of conspiracy to defraud the U.S. with respect to claims and one count of false statements or fraud to obtain federal employees’ compensation. The conspiracy count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The false statements or fraud count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Both will remain on bond pending sentencing, which is set for March 6, 2017.
The government presented evidence at trial that Baker and Evans engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation that was used by co-conspirators to defraud DOL’s OWCP. The government presented further evidence that Baker also falsified forms related to travel he purportedly made for medical services, and as a result, received funds from DOL to which he was not entitled.
Baker began working for the U.S. Postal Service in 1982; he was assigned to work as a mail handler equipment operator. Between 1984 and 2007, Baker filed eight different claims for disability, claiming he suffered from various injuries. As a result of these claims, Baker stopped working in approximately December 2007. He never returned to work but continued to receive disability compensation from December 2007 until at least October 2009. He received more than $68,000 in worker’s compensation payments. He retired from the U.S. Postal Service in October 2009 but he continued to receive disability medical care paid for through DOL, and he continues to be eligible for disability medical care.
Evans began working for the U.S. Postal Service in November 1985; she worked as a clerk primarily with the parcel post distribution machine. She filed disability claims in August 2001, August 2003, and August 2008 claiming that she suffered from various injuries. As a result of these claims, Evans was placed on worker’s compensation in 2001. She received more than $340,000 in worker’s compensation payments. In March 2010, she applied for disability retirement that was approved in October 2011.
Convicted co-conspirator, Larry Washington, was a licensed professional counselor and ran several businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy, and massage services. His patients were former postal and Veterans Administration employees who had suffered on-the-job injuries and were eligible to receive medical services and worker’s compensation related to those injuries. Earlier this year, Washington pleaded guilty to one count of conspiracy to commit health care fraud and was sentenced in May 2016 to 78 months in federal prison and ordered to pay $7.7 million in restitution.
To maintain and enhance his billings with OWCP, Washington asked claimants, including Baker and Evans, to falsify medical documentation, called “mood inventories,” that indicated they had received services on days they had not. Baker and Evans completed numerous mood inventory forms that contained false information about the days on which Baker and Evans received treatment from Washington or someone working for Washington. Baker and Evans received approximately $100 for each form they completed.
Over the course of the fraud, Baker received a total of $3,000 from Washington; Evans received $6,000.
As a result of Baker’s falsified documentation, Washington was able to fraudulently bill $105,125 from OWCP. As a result of Evans’ falsified documentation, Washington was able to bill $202,438 from OWCP.
The government presented further evidence that Baker submitted falsified documentation related to travel he purportedly made to receive medical services from Washington and others. He also requested reimbursement for twice the amount of mileage he would have received had he actually received the purported services. As a result, based on fraudulent travel forms he submitted, Baker received more than $3,000.
In addition to Baker and Evans, 20 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, a Postal employee detailed to the Postal Service Health Resource Management Office, and a medical provider’s employee were charged and convicted in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Nicole Dana and Jennifer Bray are in charge of the prosecution.
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Dallas Woman Sentenced to 150 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS — A Dallas woman, Manuela Esperanza Pavon, 35, was sentenced this morning by U.S. District Judge David C. Godbey to 150 months in federal prison, following her guilty plea in April 2016 to one count of conspiracy to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on November 10, 2015, Pavon, who admits that her license was suspended, was stopped by the Dallas County Sheriff’s Office for a traffic violation. The deputy advised her that he was going to tow her vehicle since she did not have a valid driver license.
During an inventory of her vehicle, the deputy located a purse on the front passenger floorboard area, and he asked if it belonged to Pavon. She said that it did. Inside the purse, the deputy located a plastic bag containing a crystal-like substance that later tested positive for one kilogram of methamphetamine. Pavon admitted she possessed the methamphetamine with the intent to distribute it.
The Drug Enforcement Administration and the Dallas County Sheriff’s Office investigated the case. Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution.
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Dallas Methamphetamine Traffickers SentencedRead the Press Release
DALLAS — Two Dallas men who were convicted on methamphetamine trafficking conspiracy charges were sentenced last week by Chief U.S. District Judge Barbara M. G. Lynn to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Mario Chavez-Bravo, a/k/a “Rafael Lua-Maguna” and “Mickey,” 27, was sentenced to 200 months in federal prison. Rafael Hurtado, a/k/a “Rafi,” and “Ralphie,” was sentenced to 135 months in federal prison. Each pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance.
Chavez-Bravo admitted that during the conspiracy, he possessed with the intent to distribute and/or distributed at least eight kilograms of methamphetamine. On February 9, 2015, Chavez-Bravo spoke to a male over his cell phone about turning over some drug proceeds (“about $300”) to the male. The next day, Chavez met with the male at the Texas Motel on West Davis Street in Dallas and delivered to him a box containing approximately $300,000 in cash drug proceeds. In fact, Chavez-Bravo admitted that during the conspiracy, he collected or delivered a total of $569,305 in drug proceeds.
Hurtado admitted that on several occasions during the conspiracy, he received quantities of methamphetamine from methamphetamine distributor, Tommy Rodriguez, and then distributed the drugs in exchange for payment. In fact, during the conspiracy, Hurtado possessed with the intent to distribute and/or distributed 11 kilograms of methamphetamine.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
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U.S. Attorney's Office and ATF Announce $500,000 PSN Federal Grant at Morning Press ConferenceRead the Press Release
FORT WORTH, Texas – John Parker, U.S. Attorney for the Northern District of Texas, and William Temple, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives Dallas Field Division, joined Ken Shetter, President of One Safe Place, and Joel Fitzgerald, Fort Worth Chief of Police, at a press conference this morning to announce a $500,000 federal grant that has been awarded to One Safe Place to implement the Project Safe Neighborhoods (PSN) initiative in two Fort Worth neighborhoods.
PSN is a nationwide commitment to reduce gang and gun crime in the U.S. by networking existing local programs that target gun and gang crime and providing these programs with additional tools for success. PSN’s strategic approach brings more “science” into criminal justice operations by leveraging innovative applications of analysis, technology and evidence-based practices to improve performance and effectiveness while containing costs.
The grant is one of only seven half-million dollar grants awarded by the Justice Department’s Office of Justice Programs Bureau of Justice Assistance and funded under the 2016 Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods initiative. This grant also addresses domestic violence, which, according to many statistics, is a major contributing factor for the increase in gun and violent crimes.
The funds from this grant will be specifically used in the Stop Six/Poly and the Las Vegas Trail Corridor in Fort Worth. Following this morning’s press conference, volunteers and neighborhood police officers with the Fort Worth Police Department will distribute door hangers in those neighborhoods. Each “Not on My Block” door hanger provides resources for reporting criminal activity, to include the Crime Stoppers anonymous tip line phone number.
“My office is committed to working side by side with the people who live in these neighborhoods, our partners at One Safe Place, and our partners in law enforcement to stop the destructive cycle of gun and gang violence that terrorizes our communities,” said U.S. Attorney Parker. “This grant funding significantly enhances that effort in Fort Worth by providing additional tools for success.”
“With the additional grant funding for One Safe Place, another great step in the holistic approach in tackling the gun and gang problem that plagues many cities is taking place here in Fort Worth,” SAC Temple said. “It is through community based organizations working with law enforcement at every level that this problem can be addressed and make life better for our citizens.”
“As longstanding partners with One Safe Place in the effort to reduce violent crime in Tarrant County, we are extremely pleased the DOJ chose to fund their efforts to reduce gang and gun violence,” said Chief Fitzgerald. “We are steadfast in our commitment to meaningful partnerships in the community to make Fort Worth the safest large city in America. This grant award will certainly bring us closer to that reality.”
“PSN has helped ensure a very effective collaboration between local, federal and community based partners, which has reduced gun and gang violence in Fort Worth,” said Mr. Shetter. “Funding under the 2016 PSN Program will allow us to take this partnership to the next level, build on the knowledge and best practices that have already been developed, and target resources on hot spots for gun and gang violence. We are particularly excited that the One Safe Place strategy addresses domestic violence as a significant contributor to gun and gang violence in the community.”
One Safe Place, in collaboration with partner agencies, will use the new grant to focus on targeted enforcement, prevention, community outreach, and reentry programs, with an emphasis on interrupting the cycle of violence in order for communities to sustain crime reduction.
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Pimps Face up to Life in Federal Prison After Pleading Guilty to Their Roles in a Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Four individuals, with ties to the Polywood Crips street gang in Fort Worth, Texas, have pleaded guilty to their respective roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Audry Lane, a/k/a “Spud,” 29, pleaded guilty before U.S. District Judge Reed C. O’Connor to one count of conspiracy to commit sex trafficking of children. Yesterday, Deon Bonner, a/k/a “Spanish Fly,” 26, pleaded guilty to the same offense and Chad Johnson, a/k/a “Ocho Hood Fame,” 24, pleaded guilty to one count of sex trafficking of children. In late October, Stanley Johnson, a/k/a “Pee Wee,” 24, pleaded guilty to one count of conspiracy to commit sex trafficking of children. Upon conviction, each count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
Two defendants, Diwone Nobles, a/k/a “Pooh,” 32, and Katelyn Micelle Ward, a/k/a “KD,” 24, are set for trial.
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 and Alvin Lane, a/k/a “Spank,” acted as pimps for the girls and women they trafficked. The 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, 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 Arnold and/or Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
Alvin Lane pleaded guilty last month to one count of conspiracy to commit sex trafficking of children. Serrah and Jessica Arnold each pleaded guilty last month to one count of use of a facility of interstate commerce in aid of a racketeering enterprise.
For instance, 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 Katelyn 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. Audry Lane knew she was age 17 when he began facilitating her commercial sex acts, and he kept the proceeds she earned. Various member of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Deon 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. Chad Johnson and Nobles eventually took both Jane Doe 1 and Jane Doe 2 to another hotel in Fort Worth where Chad Johnson continued to cause Jane Doe 2 to engage in commercial sex acts.
According to the complaint filed in the case, an adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, Alvin Lane, and Serrah Arnold. 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 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 six 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.
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, ICE HSI and the Fort Worth Police Department are investigating. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Media Advisory - Project Safe Neighborhoods Press Conference on Thursday, November 10, 2016 at 10:00 a.mRead the Press Release
Contact Information:
Ken Shetter, OSP – 817-502-7110 or 817-707-7824 (cell)
Lt. Kirk Driver, PSN Chair, FWPD – 817-996-0356 (cell)
Kathy Colvin, OUSA – 214-659-8600
SSA Scott Ragsdale, ATF – 469-227-4322
Announcing an award of $500,000, one of seven nationally, to One Safe Place for the implementation of the Project Safe Neighborhoods Initiative in two designated areas in Fort Worth, Texas.
A press conference is scheduled for Thursday, November 10th, at 10:00AM in the auditorium of One Safe Place located at 1100 Hemphill Street in Fort Worth. Details of how the multidisciplinary PSN Task Force works together, the outreach programs, and the results of the past PSN initiative will be available at the press conference. Members of the PSN Task Force representing 17 agencies participate in the operation of the PSN Project.
Participants in the Press Conference:
The Honorable John Parker, U.S. Attorney for the Northern District of Texas,
Bill Temple, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms
and Explosives, Chief Joel Fitzgerald, Fort Worth Chief of Police, Ken Shetter,
President, One Safe Place and other invited guests.
PrProject Safe Neighborhoods (PSN), a program of the Department of Justice, is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs and using data-driven targeted enforcement to address many of the causes of these crimes, such as family violence and repeat/returning offenders. The goal is to create safer neighborhoods by involving the communities in these efforts and identifying needed resources that include prevention and outreach, as well as, enforcement to sustain this reduction in crime.
Interview opportunities will be available
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Lubbock Women Plead Guilty to Roles in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Two women from Lubbock, Texas, Crystal Ann Alaniz and Arleen Theres Keithley, appeared yesterday afternoon before U.S. Magistrate Judge D. Gordon Bryant Jr., and pleaded guilty to their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Alaniz, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting; she faces a statutory sentence of not less than five years or more than 40 years in federal prison and a $5 million fine. Keithley, 36, pleaded guilty to one count of possession with intent to distribute methamphetamine and aiding and abetting; she faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Bryant ordered a presentence investigation report for each defendant with sentencing dates to be set after the completion of those reports.
Co-defendant Jonathan Lovato, 33, of Lubbock, also pleaded guilty yesterday. Last week, co-defendants Juan Carlos Lara-Ochoa, 24, and Jose Alberto Cibrian, 41, pleaded guilty to their roles in the conspiracy.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking. Two additional plastic bags, containing suspected methamphetamine were found in Keithley’s bra. Two bundles of money, totaling nearly $2,000 were found in Keithley’s purse along with a digital scale that contained drug residue. Keithley also had $2,500 in small bills on her person.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The case is being investigated by the Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Lubbock Man Involved in Police Pursuit in Which Another Motorist was Struck and Killed Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Jonathan Lovato, 33, appeared yesterday afternoon before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to federal offenses stemming from his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lovato pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting, and one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a statutory penalty of not less than five years or more than 40 years in federal prison and a $5 million fine on the drug conviction and not less than five years and up to life and a $250,000 fine on the firearm conviction. Judge Bryant ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
On March 17, 2016, officers with the Lubbock Police Department conducted an undercover narcotics purchase from a hotel room in Lubbock and were watching the room to monitor traffic to and from the location while a search warrant was obtained. During this surveillance, officers saw the main target of the investigation, Lovato, arrive in a silver sedan and begin to take items from the hotel room. Lovato attempted to leave the hotel in his vehicle, and when officers tried to detain him, he sped away. He evaded officers for several blocks, driving in excess of the speed limit, against oncoming traffic, and through several traffic-controlled intersections without observing the traffic signals. Lovato’s vehicle was stopped when he struck several other vehicles as he drove against oncoming traffic into a busy street intersection. One of the individuals in a vehicle he struck sustained life-threatening injuries and later died.
As officers approached Lovato’s vehicle, they discovered he had a 9mm caliber pistol in his waistband. A package containing a substance, later verified as 118.13 grams of methamphetamine, was found in the glove box and five cell phones were found throughout the vehicle. Lovato admitted he possessed the firearm and admitted to selling methamphetamine.
The case is being investigated by the Lubbock Police Department, the Texas Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Dallas Man Sentenced to 20 Years in Federal Prison for Sex Trafficking a Developmentally Disabled Teenage GirlRead the Press Release
DALLAS — Damion Kentrell White, 24, of Dallas, was sentenced yesterday by U.S. District Judge David C. Godbey to 240 months in federal prison on felony convictions stemming from a plan to recruit a developmentally disabled teenage girl to engage in commercial sex acts, announced U.S. Attorney John Parker of the Northern District of Texas.
Damion White pleaded guilty to one count of using a facility of interstate commerce in aid or a racketeering enterprise and one count of illegal receipt of a firearm by a person under indictment.
His co-defendant brother, Kenneth Laray White, 27, was sentenced earlier this year to serve a total of 326 months in federal prison. Kenneth White pleaded guilty to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one count of being a felon in possession of a firearm.
Another defendant charged and convicted in the case, their cousin, Mecose Mendale Shorter, 32, also of Dallas, pleaded guilty in May to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and is scheduled to be sentenced on November 28, 2016.
According to documents filed in the case, from approximately July 4, 2013, to July 22, 2013, Damion White, Kenneth White and Mecose Shorter engaged in an enterprise that promoted prostitution in various hotels in Dallas. In early July 2013, Damion and Kenneth White recruited a mentally challenged 18-year-old girl to work for them in the prostitution enterprise; Shorter was engaged in the unlawful activity of promoting prostitution of another female.
Damion and Kenneth knew the victim since she was 15 years old. When she was 18 years old, they devised a plan to recruit her to engage in commercial sex acts for them by taking advantage of her diminished mental capacity. In late June 2013, Damion White established a friendship with the victim, and then, in early July of 2013, he used false pretenses to convince her to leave her home with him.
Later that night, Kenneth and Damion White drove the victim to a motel in Dallas where Damion White had rented a room. Kenneth White used his cell phone to take provocative photos of the victim that they later used in advertisements they posted on backpage.com. They deprived her of food and prevented her from leaving the room to encourage her to engage in commercial sex acts for them. Kenneth White had sex with the victim, and the victim eventually engaged in commercial sex acts and provided the money she earned to Kenneth White. Kenneth and Damion White used the Internet and a cell phone to coordinate the victim’s commercial sex acts with potential customers.
Later, Kenneth and Damion White moved the victim to another motel in Dallas where they continued to compel her to engage in commercial acts during the latter part of July 2013. Officers with the Dallas Police Department rescued the victim from this motel on July 22, 2013.
Kenneth and Damion White were arrested on federal sex trafficking charges on February 25, 2014. Kenneth White was found at his girlfriend’s apartment, and during a protective sweep of the apartment, agents located a Romar/Cugir 7.62 caliber rifle, along with three extended magazines under the mattress in the master bedroom. Damion White admitted that he had possessed firearms recently, including the firearm that Kenneth White was caught with that day. Damion White further admitted that he had been under indictment for a felony marijuana case for quite some time.
The North Texas Trafficking Taskforce, including the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department, investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
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Mine Inspector Admits Falsifying Mine Safety Inspection ReportsRead the Press Release
DALLAS — A Eustace, Texas, man who worked as an inspector for the U.S. Department of Labor’s (DOL) Mine Safety and Health Administration (MSHA) appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge David L. Horan to a federal offense related to his purposefully falsifying mine safety inspection reports with the intent to deceive the MSHA, announced U.S. Attorney John Parker of the Northern District of Texas.
Nathan Edward Welch, 35, pleaded guilty to an Information charging one count of making a false statement in an official writing. He faces a maximum statutory penalty of one year in federal prison and a $100,000 fine. According to the plea agreement, Welch agrees to resign/retire from MSHA within five calendar days of the date he enters his plea, and he agrees to not seek any future employment with the U.S. government. Sentencing is set for March 8, 2017, before Judge Horan.
According to documents filed in his case, from approximately June to July 2016, Welch stated in a MSHA report that he had completed an onsite inspection from July 6, 2016, to July 11, 2016, for the Dead River Ranch Materials Riesel Sand and Gravel Plant when he knew he had not conducted any such inspection and had never traveled to or met any representative of the Dead River Ranch Materials Mining Operation for an inspection.
In addition, Welch falsified at least three other inspection reports that claimed he performed inspections on the following dates at the following locations:
July 12, 2016 Big Sandy Sand Company North Pit and Mining Operation
Hawkins, TexasJune 1, 2016 Cedar Creek Stone Mine
Groesbeck, TexasJune 23, 2016- Trinity Lightweight Expanded Shale and Clay Plant
June 30, 2016 Streetman, TexasIn completing these falsified inspection reports, Welch used previously completed reports to create the falsified reports and hand-copied the field notes for these four locations from inspection reports that had been completed earlier in the year.
The case is being investigated by the DOL Office of Inspector General (OIG). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Dallas Man Who Committed the Armed Robberies of Two Convenience Stores in One Day is Sentenced to 384 Months in Federal Prison on Felony OffensesRead the Press Release
DALLAS — A Dallas man, Marcus Fulbright, 25, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 384 months in federal prison, following his guilty plea to felony offenses stemming from his armed robbery of two 7-Eleven stores in the Dallas area in 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulbright pleaded guilty in April 2016 to two counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on October 9, 2013, Fulbright entered the 7-Eleven located at 757 E. Beltline Road in DeSoto, Texas, at approximately 4:15 a.m. with the express intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk, and demanded money. Fulbright took money from the cash register and fled.
That same morning, just a few minutes later, at approximately 4:30 a.m., Fulbright entered the 7-Eleven located at 640 Pleasant Run in Lancaster, Texas, with the specific intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk and demanded money from the cash register. As the clerk struggled to open the cash register, another individual in the store rushed at Fulbright, and Fulbright then pointed his handgun at this individual and discharged a single shot at him.
The case was investigated by the Federal Bureau of Investigation and the Dallas, DeSoto and Lancaster Police Departments.
Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.
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Dallas Drug Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Santiago Veliz, 29, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to 140 months in federal prison following his guilty plea in May 2016 to a felony Information charging one count of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Veliz’s co-conspirator, Iran Zavala, also 29 and from Dallas, was sentenced by Judge Boyle in August 2016 to 235 months in federal prison after he pleaded guilty in April 2016 to the same offense.
According to documents filed in the case, beginning in approximately June 2015, Veliz, Zavala and others agreed to distribute methamphetamine. On approximately June 29, 2015, Zavala negotiated the sale of two kilograms of methamphetamine for $32,000 to a person he later learned was an undercover law enforcement officer.
A few days later, on July 2, 2015, Veliz and Zavala traveled to a gas station on N. Beltline Road in Grand Prairie, Texas, to distribute more than 50 grams of methamphetamine to a person Veliz believed to be one of Zavala’s customers. They had both the methamphetamine and a handgun belonging to Zavala in their pickup truck. However, prior to the drug transaction being completed, law enforcement in marked patrol cars attempted to pull over their vehicle. Rather than stop, Zavala fled in the truck at a high rate of speed, and during the chase, Zavala threw the methamphetamine out of the driver’s side window. The firearm was thrown out of the passenger side window.
At Zavala’s sentencing hearing, testimony was presented that Zavala intentionally drove his pickup truck at a high rate of speed toward an officer with the Grand Prairie Police Department who was attempting to lay a spike strip in the road to deflate the tires on Zavala’s fleeing vehicle. Zavala is charged in a pending Dallas County case with Aggravated Assault of a Public Servant.
The pursuit ended when Zavala drove his truck into Mountain Creek Lake where it collided with a sailboat near the boat ramp. Both Zavala and Veliz were arrested. The firearm, a 9-milimeter semi-automatic pistol, was recovered and ordered forfeited to the government.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
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Methamphetamine Distributors Plead GuiltyRead the Press Release
LUBBOCK, Texas — Two Littlefield, Texas, men, Juan Carlos Lara-Ochoa and Jose Alberto Cibrian, pleaded guilty this morning before U.S. Magistrate Judge D. Gordon Bryant Jr. to their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lara-Ochoa, 24, admitted that on June 1, 2016, he possessed with intent to distribute 50 grams or more of methamphetamine. He faces a statutory sentence of not less than 10 years and up to life in federal prison and a $10 million fine. Cibrian, 41, admitted that on March 4, 2016, he possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Judge Bryant ordered a presentence investigation report for each defendant with sentencing dates to be set after the completion of those reports.
Three additional defendants charged in the case, Jonathan Lovato, 33, Arleen Theres Keithley, 36, and Crystal Ann Alaniz, 32, are scheduled to enter guilty pleas on Monday, November 7, 2016.
According to documents filed in court, on June 1, 2016, officers with the Lubbock Police Department learned that Lara-Ochoa would be delivering about two pounds of methamphetamine to Christopher Paul Andrade in Lubbock. Law enforcement set up surveillance and followed Lara-Ochoa from Littlefield, Texas to the La Michoacana grocery on Clovis Highway in Lubbock. Lara-Ochoa parked in the grocery store’s parking lot, and a short time later, Andrade arrived and parked next to him. Andrade got into the front passenger seat of Lara-Ochoa’s vehicle, stayed for less than one minute, and then exited that vehicle, returning to his. Law enforcement followed Andrade as he drove out of the parking lot, and after a brief pursuit, detained Andrade and found approximately 444 grams of methamphetamine that he had attempted to discard during the pursuit. Andrade pleaded guilty in August 2016 to one count of possession with intent to distribute methamphetamine. He is scheduled to be sentenced on December 2, 2016, by Senior U.S. District Judge Sam R. Cummings.
Law enforcement observed Lara-Ochoa depart the parking lot and return to Littlefield, where they arrested him. They obtained a search warrant for his vehicle and located a hidden compartment under the front passenger’s seat that contained two separate packages of methamphetamine, weighing a total of 2,230 grams. One of those was packaged exactly the same as the methamphetamine Andrade had discarded. Officers also obtained a search warrant for Lara-Ochoa’s storage unit and found an additional 1,782 grams of methamphetamine and five firearms.
On March 4, 2016, officers with the Littlefield Police Department learned of a suspicious vehicle at a nearby RV park. Upon arrival, officers found Jose Alberto Cibrian passed out in the driver’s seat of that vehicle, with the engine running and the gear shift in the drive position. After removing him from the vehicle, officers found a plastic bag containing methamphetamine in the center console, a methamphetamine pipe, a digital scale and a firearm in a bag in the backseat. Cibrian admitted he had recently purchased the methamphetamine and the firearm.
The case is being investigated by the Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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