Northern District of Texas
Press releases recorded for this federal judicial district.
Cedar Hill, Texas, Man Faces up to Five Years in Federal Prison for Making a False Statement in a Bankruptcy Petition FilingRead the Press Release
DALLAS — Haywood Bernard Hall, 34, of Cedar Hill, Texas, appeared in federal court today before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to one count of making a false statement under penalty of perjury in a filing in a bankruptcy petition, announced U.S. Attorney John Parker of the Northern District of Texas.
Hall, who remains on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 9, 2016, before Chief U.S. District Judge Barbara M. G. Lynn.
According to documents filed in the case, in November 2010, Hall filed a second voluntary bankruptcy petition in U.S. Bankruptcy Court in the Northern District of Texas. In that petition, Hall knowingly and fraudulently made a material false statement, under the penalty of perjury, by causing a “Statement of Social Security,” (Form B21) to be filed that falsely represented his assigned Social Security number.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Hall is the 15th defendant convicted since July 2014 as part of that initiative.
Social Security Administration, Office of the Inspector General investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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U.S. Attorney’s Office Hosts Mock Trial Academy for Fifth Graders from Gabe Allen Elementary School in West DallasRead the Press Release
DALLAS — The U.S. Attorney’s Office for the Northern District of Texas’s Mock Trial Academy, conducted as part of the District’s ongoing Crime Prevention and Community Outreach component of the Justice Department’s Smart on Crime initiative, concluded this week with fifth grade students from Gabe Allen Elementary School in West Dallas participating in a mock trial held in a federal courtroom in Dallas.
“Establishing a positive relationship with today’s youth is vital to the prevention of crime and violence in our communities,” said U.S. Attorney John Parker of the Northern District of Texas. “Through this Mock Trial Academy, these students directly interacted with professionals in law and law enforcement, gaining not only an insider’s perspective of our legal system, but an opportunity to explore career opportunities in law enforcement and criminal justice.”
Approximately 30 fifth-graders met with representatives from the U.S. Attorney’s Office throughout the academy to learn about our criminal justice system. The students were guided through the trial process and had an opportunity to further develop their listening, problem solving, and communication skills.
All of the participants in this week’s mock trial were students who played the roles of judge, court security officers, lawyers, witnesses and jurors in the case of U.S. v. Mary Witch, in which defendant Witch was accused of kidnapping Hansel and Gretel. The court was brought to order by the young judge and young bailiffs ensured courtroom procedures were followed. After hearing the evidence presented, the group of 12 young jurors, who had not heard about the case prior to trial, had the opportunity to deliberate, decide on a verdict, and present that verdict to the court.
Following the mock trial, a graduation ceremony, where the students were presented certificates and junior U.S. Attorney badges, and a reception were held in the U.S. Attorney’s Office.
Smart on Crime, a DOJ initiative announced in 2013, acknowledges that while aggressive enforcement of federal criminal statutes remains necessary, we cannot arrest and incarcerate our way to becoming a safer nation. To be effective, federal efforts must also focus on other components of criminal justice, like crime prevention and reentry. In fact, during last month’s Smart on Crime’s National Reentry Week in north Texas, the District sponsored and coordinated several events to raise awareness of the importance of reentry work.
More information about Smart on Crime may be found here. Information regarding Reentry efforts in the Northern District of Texas may be found here and resources regarding the Department’s Reentry efforts may be found here.
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Former Employee at a Lubbock Counseling Center is Sentenced on Health Care Fraud ConvictionRead the Press Release
LUBBOCK, Texas — A 36-year-old woman from Lubbock, Texas, Paula McNeal, who pleaded guilty in January 2016 to one count of health care fraud, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 18 months in federal prison and ordered to pay $104,088 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
McNeal, aka Paula Quigley and Paula Walker, was ordered to surrender to the Bureau of Prisons on June 24, 2016.
According to documents filed in the case, McNeal worked at New Hope Christian Counseling (NHCC) in Lubbock, and her duties included billing, submitting bills to Medicaid for services provided, receiving and opening mail, posting income, adjustments and receipts to counselors’ accounts, and making bank deposits.
From approximately December 7, 2010, to August 8, 2013, McNeal falsely and fraudulently billed Medicaid for services that were not provided, using the group billing number for NHCC and the individual provider identifier for one of the counselors. As a result, Medicaid mailed approximately $104,088.45 in checks to NHCC to which NHCC was not entitled and which McNeal appropriated for her own personal use.
McNeal submitted bills for extra claims to Medicaid for NHCC existing clients and their siblings. These clients and their siblings received no services from NHCC. McNeal also billed for unserved children whose Medicaid numbers were available to her. She misappropriated more than 100 checks and deposited them into one of three personal bank accounts.
The case was investigated by the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant U.S. Attorney Paulina Jacobo was in charge of the prosecution.
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Dallas Man Faces up to 20 Years in Federal Prison on Wire Fraud ConvictionRead the Press Release
DALLAS — Kevin Kenard Howard of Dallas appeared in federal court today, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to one count of wire fraud stemming from his work with Ellis Wamsley, IV and the FAIM Economic Development Corporation, announced U.S. Attorney John Parker of the Northern District of Texas.
Howard, 34, faces a maximum statutory penalty of 20 years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant, and restitution. He will remain on bond pending sentencing, which is set for September 1, 2016, before U.S. District Judge Jane J. Boyle.
Ellis Wamsley, IV, of Grand Prairie, Texas, a co-defendant in the case, has filed plea papers and is scheduled to plead guilty on May 24, 2016, to one count of engaging in a monetary transaction with property derived from specified unlawful activity and aiding and abetting.
According to documents filed in the case, Wamsley formed FAIM in 2003, and in 2010, as its CEO, hired Howard to work as a financial consultant to assist in recruiting investors for FAIM. In summer 2010, while trying to recruit these investors to supply additional cash revenue for FAIM, Howard and Wamsley recruited “M.R.,” the owner/operator of “Company R,” in Flower Mound, Texas. They advised M.R. that a proposed joint venture between FAIM and Company R would generate funding for FAIM economic development projects in the southern sector of Dallas and throughout the U.S.
In August 2010, M.R. wired $2 million to a FAIM brokerage account at Charles Schwab. Approximately one month later, Wamsley transferred $1,791,703 in Company R’s investment funds from that account to a FAIM Merrill Lynch brokerage account that he had established and to which M.R. did not have access.
Wamsley told Howard that Howard would be FAIM’s primary point of contact with M.R. After the first few trades, the joint venture began to lose money. Wamsley told Howard to hide the investment losses from M.F. Howard agreed to, and did, lie to M.R. about the trading losses and the true balance of the investment account.
Howard knowingly participated in the fraud scheme by sending lulling emails to M.R. that contained false information about the true balance and value of the account. In November 2010, Howard sent an email to M.R. falsely assuring M.R. that profits in the investment account had increased. In December 2010, Howard sent an email to M.R. in which he falsely represented that the account balance was $2,436,611. In January 2011, Howard sent another email saying the total account balance was $2,500,000. In fact, from October 2010 to August 2011, Howard, at Wamsley’s instruction, sent several emails to M.R. with the specific intent to deceive, mislead and confuse M.R. about the account’s true balance. Wamsley and Howard also concealed that fact that Wamsley was diverting some of the funds in the account for his own personal benefit and use.
For instance, from October 2010 through April 2012, Wamsley fraudulently transferred more than $1.7 million of Company R investment funds to FAIM’s business accounts, and he unlawfully spent those funds for his, Howard’s and others’ personal benefits. For example, in November 2010, Wamsley used $40,024 in Company R investment funds to purchase a 2008 Cadillac Escalade for Howard; $41,764 of investment funds to purchase a 2008 Cadillac Escalade for a family member; and $125,477 in investment funds to purchase a 2007 Aston Martin for himself. Wamsley also used more than $200,000 in investment funds to host a Super Bowl fund-raising event in 2011.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 13th defendant convicted since July 2014 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Licensed Professional Counselors Sentenced for Roles in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers’ Compensation ProgramRead the Press Release
DALLAS — Two licensed professional counselors from the Dallas-Fort Worth metroplex who pleaded guilty to their respective roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million, were sentenced this week, announced U.S. Attorney John Parker of the Northern District of Texas.
The lead defendant charged in the case, licensed professional counselor Larry Washington, 63, of Desoto, Texas, was sentenced on Monday to 78 months in federal prison and ordered to pay approximately $7.7 million in restitution. He pleaded guilty in January 2016 to one count of conspiracy to commit health care fraud and must surrender to the Bureau of Prisons on July 19, 2016. Washington ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion.
Another licensed professional counselor, Henrietta Price, 51, of Cedar Hill, Texas, was sentenced on Monday to six months home confinement, three years of probation and was ordered to pay $199,796.93 in restitution. She, too, pleaded guilty to one count of conspiracy to commit health care fraud. Price provided counseling services at Mind Spa, Inc. and also treated patients at her own company, Lifeline Counseling.
Through his businesses, Washington provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Twenty-one claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee were charged in the scheme. All but two defendants have pleaded guilty to their respective roles 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 government anticipates that as a result of the convictions, it will also prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
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 Jennifer Bray and Nicola Dana are in charge of the prosecution.
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Fort Worth Man Faces Five Years in Federal Prison for Making a False Statement in a Bankruptcy CaseRead the Press Release
DALLAS — A Fort Worth man, Alton Alexis, appeared Friday afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to an Information charging one count of making a false statement under penalty of perjury, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexis, 58, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for September 2, 2016, before Judge Fitzwater.
According to documents filed in the case, in January 2010, Alexis, on behalf of borrower NSAA Investment Group, signed a promissory note with One World Bank for a loan of approximately $3,744,050 to finance the construction of a movie theatre restaurant. From early 2010 through early 2011, Alexis caused more than $2 million in loan proceeds to be disbursed from One World Bank to accounts in the name of BBA Construction Company and/or NSAA Investment Group. Alexis later submitted three fictitious invoices to One World Bank which caused at least $245,000 of those loan proceeds to be fraudulently diverted to bank accounts he controlled. Alexis then used these diverted loan proceeds to pay his personal debts.
In May 2011, Alexis made a material false statement in a bankruptcy case, In re Alton Alexis and Althea Lynette Alexis, filed in the Northern District of Texas, when he filed an Amended Statement of Financial Affairs that falsely represented he had truthfully disclosed all income received in the two years immediately preceding the commencement of the case. Instead of truthfully disclosing all income, Alexis fraudulently concealed the $245,000 of income, in the form of fraudulently diverted loan proceeds, he received in 2010.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 12th defendant convicted since July 2014 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Dallas Neighbors Sentenced on ID Theft and Fraud Conspiracy ConvictionsRead the Press Release
DALLAS — Two Dallas residents have been sentenced for their roles in an ID theft and mail and wire fraud scheme they ran in 2011 and 2012, announced U.S. Attorney John Parker of the Northern District of Texas.
Christain Cowan Felder, 33, was sentenced by U.S. District Judge Jane J. Boyle on Friday afternoon to serve a total of 75 months in federal prison. Last month, her co-conspirator and neighbor, Lawonka King, 41, was sentenced by Judge Boyle to serve a total of 65 months in federal prison. Judge Boyle ordered each to pay $227,240 in restitution, jointly and severally. Each pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of aggravated identity theft.
According to documents filed in the case, from approximately September 2011 through November 2012, King worked at New York Life Insurance Company where she processed policy applications submitted by the company’s field agents. Those applications contained personal identifying information of the New York Life customers and often financial information, such as bank account information.
During that time, Felder and King conspired with each other and others to misappropriate that information and use it to fraudulently acquire goods and money for their mutual benefit. King provided Felder with policy applications and other customer paperwork, and Felder would use that information to print counterfeit checks drawn on the identity victim’s bank account. Felder then would take the counterfeit checks to Wal-Mart stores where other co-conspirators were employed as cashiers. To cash the counterfeit checks, the co-conspirators scanned the counterfeit checks, often several at once, through a TeleCheck terminal. Felder would then obtain Wal-Mart gift cards and share the proceeds with King and other co-conspirators.
Felder also used the personal identifying information King provided to establish at least nine online accounts at EBay and 11 at PayPal to acquire household items and jewelry. Felder completed 337 online transactions using those accounts, and many of the items purchased were delivered to the defendants’ addresses by Federal Express.
On November 21, 2012, officers with the Lancaster Police Department executed a search warrant at Felder’s residence and seized 118 New York Life policy applications that King had given her. In addition, more than 200 counterfeit checks, bearing the personal identifying information of New York Life clients, were found. Blank check stock was located in a printer’s feeder.
On November 30, 2012, officers with the Lancaster Police Department executed a search warrant at King’s residence and located 14 New York Life policy applications hidden under the cushion of a sofa. Law enforcement also located Wal-Mart gift cards, bank statements and credit cards in names other than King.
The Lancaster Police Department and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Chris Stokes was in charge of the prosecution.
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Dallas Area Man Sentenced to 10 Years in Federal Prison on Multiple Child Pornography ConvictionsRead the Press Release
DALLAS — A Dallas area man, Jamie Jack Collins, 40, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 10 years in federal prison, following his guilty plea in October 2015 to an indictment charging two counts of receipt of child pornography and one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on approximately April 28, 2014, Collins “chatted” with another person using the social media application, “Kik,” and during that chat, the person with whom he was chatting sent Collins images of child pornography. On approximately May 24, 2014, Collins again used Kik to “chat” with another person, and that person also sent Collins images of child pornography.
On August 15, 2014, according to documents filed in the case, Collins allowed law enforcement to review his cell phone for the presence of child pornography. Law enforcement located images of child pornography involving prepubescent minors on his phone.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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Two Mexican Citizens Face Mandatory Life in Federal Prison After Jury Convicts Them on Federal Charges Related to May 2013 Murder of a Southlake, Texas, ManRead the Press Release
FORT WORTH, Texas — After a trial lasting more than two-weeks, a federal jury has convicted two Mexican citizens on federal charges related to the murder of Southlake, Texas, resident, Juan Jesus Guerrero Chapa, at Southlake Town Square on May 22, 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” 59, and his cousin, Jose Luis Cepeda-Cortes, 60, were each convicted 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. Cepeda-Cortes was also convicted on one count of tampering with documents or proceedings, which carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
Another defendant charged in the superseding indictment, Ledezma-Cepeda’s son, Jesus Gerardo Ledezma-Campano, 32, pleaded guilty prior to trial to one count of interstate stalking. He is also a Mexican citizen and testified for the government at trial.
All three defendants are scheduled to be sentenced on September 22, 2016, by U.S. District Judge Terry R. Means, who is presiding over the case.
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.
The government presented evidence during trial that 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 that as a result of that travel, Mr. Chapa was killed. In addition, the government presented evidence that Ledezma-Cepeda, Cepeda-Cortes and others conspired to travel from Mexico and elsewhere to Southlake and elsewhere, with the intent to murder Mr. Chapa. Further, the government presented evidence that from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence related to the investigation that was on his computer.
The defendants, according to evidence presented at trial, 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.
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 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.
The government presented further evidence that after the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill Mr. Chapa. One of them was the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
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, U.S. 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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Timeshare Telemarketing Fraudster Sentenced to 97 Months in Federal PrisonRead the Press Release
DALLAS — A Florida man who was convicted for his role in a resort timeshare telemarketing scheme that victimized at least 5000 individuals, many of whom were over age 55, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Rani F. Khoury, 41, of Apopka, Florida, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 97 months in federal prison, following his guilty plea in July 2015 to one count of conspiracy to commit mail fraud and wire fraud. Judge Fitzwater also ordered Khoury to pay $1,583,252.28 in restitution and forfeit real estate in Orlando, Florida, as well as a 2010 Mercedes Benz.
Ten defendants were charged in the case; all were convicted, and seven have now been sentenced. For instance, earlier this year, Fabien C. Fleifel, 45, of Winter Springs, Florida, who was convicted at trial last summer on one count of conspiracy to commit mail fraud, wire fraud, and bank fraud; 19 counts of mail fraud telemarketing; and six counts of wire fraud telemarketing, was sentenced to 14 years in federal prison and ordered to pay more than $1.3 million in restitution jointly and severally with co-defendants.
Khoury conspired with others to make unsolicited interstate telephone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. Khoury and others opened bank accounts and entered into merchant account agreements to process and collect funds raised in the scheme, and they set up phony mailing addresses to collect funds mailed in by timeshare owners. Khoury also hired and trained telemarketers to work in boiler rooms he set up. These telemarketers were instructed to call timeshare owners using scripted sales pitches that falsely represented, for example, that a bona fide buyer was interested in buying their property, that the buyer had paid money into an escrow account, and that the buyer was ready to close on the property. The telemarketers falsely advised timeshare owners that they would receive all the funds from the sale within days, they must pay a one-time fee to cover the title search and other closing costs, and they would be refunded all fees paid if the sale did not close within 90 days.
After the conspirators obtained money from the timeshare owners, they made additional false and fraudulent statements to lull them and to keep them from investigating the transactions, complaining to law enforcement, or requesting charge backs to their credit cards.
During Khoury’s participation in the conspiracy, victims incurred approximately $10,887,684 in losses.
The case was investigated by the U.S. Postal Inspection Service and the Orlando Police Department. Assistant U.S. Attorneys C.S. Heath and Joseph M. Revesz are prosecuting.
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Dallas County Man Sentenced to 90 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A Hutchins, Texas, man, Servando Vega Cervantes, 25, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 90 years in federal prison, following his guilty plea in February 2015 to an indictment charging three counts of production of child pornography involving four victims, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Hutchins Police Department contacted the FBI in May 2014 regarding questionable online communication between an 11-year-old victim, “John Doe #1,” and the Facebook user profile of “Laura Ortiz.” The victim’s mother believed the user of the Ortiz profile was actually an adult male and not a 13-year-old female as described in chat conversations between John Doe #1 and Ortiz. The investigation revealed that the user profile “Laura Ortiz” belonged to Cervantes. The investigation also revealed that John Doe #1 knew Cervantes as “Jordan,” an alias Cervantes used.
According to the factual resume filed in the case and testimony presented at today’s sentencing hearing, Cervantes enticed 11-year-old John Doe #1 to engage in sexually explicit conduct, and Cervantes took photos of that conduct. Cervantes enticed another minor, under the age of 14, John Doe #2, to engage in sexually explicit conduct and Cervantes also took photos of that conduct. Cervantes also asked John Doe #2 to send sexually explicit photos to “Laura Ortiz.” John Doe #3, a 15-year-old boy, sent sexually explicit photos to Cervantes, upon Cervantes’ repeated requests. Cervantes also had sexually explicit photos of another prepubescent boy, John Doe #4, whom he met on Facebook, on a thumb drive.
Cervantes had sexual contact with two of the four victim John Does.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force and the Hutchins Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Abilene Woman Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
ABILENE, Texas — A 25-year-old woman from Abilene, Texas, Misty Dawn Kelley, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 years in federal prison, following her guilty plea in February 2016 to an indictment charging one count of production of child pornography and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in July 2014, Kelley met an individual, she knew as “Randy,” on an online adult webcam site. In November 2014, “Randy” began sending sexually explicit pictures of his one to two-year-old daughter to Kelley. Kelley continued to communicate with “Randy” on Kik and Skype, and in early July 2015, during a conversation with “Randy” on Kik, Kelley asked him to perform an act of sexual abuse on his daughter and send her a picture of it. “Randy” immediately sent Kelley a picture of his daughter, depicting the result of his actions.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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Southco Enterprises, Inc. of Sherman, Texas, Admits Unlawfully Storing Hazardous WasteRead the Press Release
DALLAS — The President and Chief Executive Officer of Southco Enterprises, Inc. of Sherman, Texas, James Alexander, appeared in federal court in Dallas this week and entered a guilty plea on behalf of the corporation to a one-count Information charging treating, storing or disposing of hazardous waste without a permit, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, Southco Enterprises, Inc. operated several waste transportation vehicles in the Dallas area that were stored at facilities including Al-Kel Chemical, located on Goode Road in Hutchins, Texas. In approximately December 2007, Al-Kel Alliance, Inc., (Al-Kel) received a Notice of Violation from the Texas Commission on Environmental Quality for storing numerous 55-gallon drums and 350-gallon totes that contained unknown chemicals. The Notice of Violation also noted two stationery “box trailers” with totes and fiber pack drums. TCEQ instructed Al-Kel to evaluate all the containers, including the contents of the two trailers, conduct an adequate waste determination, and ship the waste to the appropriate facility.
From approximately October 1, 2010, through August 1, 2011, accumulated hazardous wastes were again stored on several “box trailers” owned by Southco and located at the Al-Kel facility. Southco knew the accumulated hazardous waste in the “box trailers” must be disposed of at an appropriate facility.
If the Court agrees to the terms of the plea agreement, the maximum possible sentence imposed includes a $400 mandatory special assessment and $250,000 in monetary penalties. The $250,000 in penalties consists of a $150,000 criminal fine payable to the U.S. District Clerk, $50,000 payable to the Southern Environmental Enforcement Network Training Fund in Birmingham, Alabama, and $50,000 payable to Hutchins Fire and Rescue. The payments to Hutchins Fire and Rescue are to be specifically used to acquire, purchase, lease, contract for, maintain, calibrate, test, transport, stage or store specialized equipment and gear used exclusively for actions related to spills, leaks, emissions or release of toxic or hazardous materials constituting, or possibly leading to, environmental pollution in North Texas.
In addition, if the plea agreement is accepted by the Court, Southco Enterprises, Inc. may be subject to suspension and disbarment at the discretion of the U.S. Environmental Protection Agency. Sentencing is set for June 1, 2016, before U.S. District Judge Ed Kinkeade
The case is being investigated by the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality. Deputy Criminal Chief Assistant U.S. Attorney Lisa J. Dunn and Assistant U.S. Attorney Errin Martin are prosecuting the case.
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ABT Member Sentenced to Life in Federal Prison on Methamphetamine Trafficking Conspiracy and Firearm ConvictionsRead the Press Release
DALLAS — Convicted Aryan Brotherhood of Texas member Casey Rose, 36, of Mesquite, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to life in federal prison, following his conviction at trial in September 2015 on conspiracy, drug trafficking and firearm charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Rose on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession of methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm. Judge Boyle sentenced him to life in federal prison on the conspiracy conviction, 240 months on the possession conviction and 120 months on the firearm conviction, all to run concurrently.
Rose has been in custody since his arrest in mid-November 2014 following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID). During that operation, 37 individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014. Of those arrested, each defendant pleaded guilty, except Rose, who elected to go to trial. One defendant remains a fugitive.
In November 2015, during the second phase of that investigation, an additional 54 individuals, members and associates of various white supremacist organizations, were charged with federal offenses stemming from their roles in the same drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to November 2015. Most of these defendants have pleaded guilty and are awaiting sentencing.
Rose was a member of the Aryan Brotherhood of Texas (ABT). Many of the defendants were members of, or associated with white supremacist organizations, such as the ABT, the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures.
The government presented evidence at trial that Rose purchased and distributed methamphetamine throughout the Dallas metroplex and used violence in obtaining large quantities of methamphetamine. The trial also included expert testimony regarding the formation, history, and mission of the ABT.
The DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit led the investigation. Officer and agents from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) also provided assistance in the investigation.
Assistant U.S. Attorney P. J. Meitl is in charge of prosecuting the nearly 100 defendants charged in these two cases.
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Dallas Man Sentenced to More Than 17 Years in Federal Prison for Role in Takeover-Style Robbery of AT&T Store in Grand PrairieRead the Press Release
DALLAS — The ring-leader of a group of individuals who were involved in the January 2015 take-over style robbery of an AT&T store in Grand Prairie, Texas, was sentenced yesterday to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Luther Elder, 30, of Dallas, was sentenced to 210 months in federal prison by U.S. District Judge David C. Godbey, following his guilty plea in December 2015 to one count of interference with commerce by robbery and aiding and abetting. Elder was also ordered to pay $13,854 in restitution.
According to documents filed in the case, on January 23, 2015, Elder recruited co-defendants Chambrezia Johnson, 26, and Anthony Poe, 22, as well as another unknown individual, to assist him and co-defendant Brandon Walker, 29, in robbing an AT&T store in Grand Prairie. Upon picking up Johnson and Poe and the unknown individual, Elder and Walker drove the group to a Wal-Mart in Grand Prairie, where Elder purchased a duffel bag and an “air gun” that was intended to be used in the robbery.
After arriving at the AT&T store, Johnson and Walker entered the store to scout it out and determine how many people were in the store. They left and advised Elder, who then instructed Poe and the unknown individual to rob the store and for Johnson to stay in the back of the store as a potential getaway driver.
At approximately 1:23 p.m., Poe entered the store carrying the “air gun” while the unknown individual entered and brandished what appeared to be a firearm. Poe and the unknown individual ordered all of the employees to the back of the store and the unknown individual struck an 81-year-old customer on the side of the head, because she was not complying fast enough with his demands, and then drug her to the rear of the store by her neck. Poe and the unknown individual demanded cash and cell phones from the victims, fled the store, and were picked up by Elder and Walker. Elder and Walker than dropped off Poe and the unknown individual at a motel before being arrested as they were in route to sell the stolen phones.
Defendants Walker, Poe and Johnson, all Dallas residents, have each pleaded guilty to one count of interference with commerce by robbery and aiding and abetting; each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine on that conviction. Poe also pleaded guilty to one count of possession with intent to distribute at least 28 grams of crack cocaine. On that conviction, Poe faces a statutory penalty of not less than five or more than 40 years in federal prison. Sentencing dates are set for later this month and in June 2015.
The case was investigated by the Grand Prairie Police Department, the Dallas Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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“Pimp” Pleads Guilty in Federal CourtRead the Press Release
DALLAS — Kenneth Richardson, 33, of Dallas, pleaded guilty Friday afternoon, before U.S. District Judge Sidney A. Fitzwater, to one count of using a facility of interstate commerce in aid of a racketeering enterprise, stemming from his operation of a prostitution “ring,” announced U.S. Attorney John Parker of the Northern District of Texas.
Richardson has been in custody since his arrest in November 2015 on an indictment charging him with that offense. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 19, 2016.
According to plea papers filed in his case, from approximately July 2014 to mid-August 2015, Richardson engaged in a prostitution enterprise in various hotels in Dallas, including the Crowne Plaza located off of Interstate 35. During this time, Richardson was employed as a U.S. military contractor, and his duties included assisting new military recruits as they began processing into the military. As part of his job, Richardson had access to numerous hotel rooms at that hotel each day.
Richardson recruited several women to work for him in his prostitution enterprise and used a cell phone and hotel rooms to promote, manage, and facilitate their involvement in commercial sex acts. On more than one occasion, Richardson provided the women with hotel rooms at the Crowne Plaza to which he had access by virtue of his employment and at no cost to himself or the women. Richardson used a cell phone to communicate with these women regarding their prostitution activities, and he received payments from the women that they earned from engaging in those commercial sex acts.
The FBI is in charge of the investigation. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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U.S. Attorney’s Office Focuses on Reducing Barriers to Reentry and Employment During Employment SummitRead the Press Release
DALLAS — This afternoon, as part of its efforts during National Reentry Week, the U.S. Attorney’s Office for the Northern District of Texas hosted an Employer Summit, entitled “Employers Investing in Community Prosperity,” in Arlington, Texas, to highlight the benefits of hiring the formerly incarcerated, announced U.S. Attorney John Parker of the Northern District of Texas.
“Finding a job even without a conviction can be challenging, but for those being released from prison, it can be almost impossible,” said U.S. Attorney Parker. “Regardless of the severity of their crime, recently released individuals often find that their past criminal record can be tantamount to a life sentence of low wages, underemployment, and poverty. We all have a vested interest in ensuring that those who are genuinely motivated to rebuild their lives after release have the tools and legitimate opportunities to do so.”
As part of National Reentry Week, the Administration has taken a series of steps to reform the federal approach to reentry by addressing barriers to reentry, supporting state and local efforts to do the same, and engaging the private sector to provide individuals who have earned a second chance the opportunity to participate in the American economy.
At this afternoon’s Employer Summit, representatives from the U.S. Attorney’s Office, the Department of Labor, the Texas Offender Reentry Initiative, and the Texas Workforce Investment Council provided information to employers to assist them in navigating the hiring process for the formerly incarcerated. Information was also furnished about the steps that federal, state, and local governments are taking to reduce barriers to employment for formerly incarcerated individuals, as well as information concerning the benefits, such as available tax incentives, of hiring the formerly incarcerated.
Just today, President Obama signed a Presidential Memorandum establishing the Federal Interagency Reentry Council to lead the Government’s work on the rehabilitation and reintegration of individuals returning to their communities from prisons and jails. For five years, the Attorney General has successfully led the Cabinet-level working group; this memorandum will build on that success and ensure the federal government will continue this important work.
The Administration is taking specific steps to reduce barriers to employment for formerly incarcerated individual. As brief examples:
- The Office of Personnel Management (OPM) is publishing a proposed rule that would prohibit federal agencies from asking questions about criminal and credit history to applicants for jobs in the competitive service and the career senior executive service, until a conditional offer of employment has been made.
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The Presidential Memorandum directs all agencies to review their procedures for conducting a suitability determination for a job applicant with a criminal record.
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The Presidential Memorandum directs all agencies with discretion to grant or deny occupational licenses to ensure that a criminal record is not an automatic disqualifier.
Today’s Employer Summit concluded a busy National Reentry Week in north Texas in which the U.S. Attorney’s Office sponsored and coordinated several events to raise awareness of the importance of reentry work. On Monday, U.S. Attorney Parker welcomed approximately 300 attendees at the 2016 Reentry Symposium in Dallas, and on Tuesday, staff members from the U.S. Attorney’s Office joined Bureau of Prisons (BOP) staff at Federal Correctional Institute (FCI) Fort Worth to participate in a Reentry Simulation that offered FCI inmates an opportunity to experience, first-hand, what it is like to be a newly-released offender. On Wednesday, the U.S. Attorney’s Office participated in a Reentry Information Fair at the Federal Medical Center (FMC) Carswell in Fort Worth, where representatives from area service providers and community groups provided information and resources to assist inmates in overcoming reentry barriers they may encounter in employment, medical care, public assistance, identification and housing. On Wednesday evening in Dallas, and on Thursday evening in Fort Worth, hundreds of recently-released state parolees/probationers attended the U.S. Attorney’s Office Project Safe Neighborhood (PSN) Probation/Parole Reentry Sessions. At each of these monthly sessions, staff from the U.S. Attorney’s Office, and others from local, state and federal law enforcement, emphasize federal firearms laws and ensure attendees are aware of available social services.
Earlier this week, Attorney General Loretta E. Lynch announced new reforms to strengthen the BOP, including the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the BOP.
More information about Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
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- The Office of Personnel Management (OPM) is publishing a proposed rule that would prohibit federal agencies from asking questions about criminal and credit history to applicants for jobs in the competitive service and the career senior executive service, until a conditional offer of employment has been made.
"Pimp" Pleads Guilty in Child Sex Trafficking CaseRead the Press Release
DALLAS — Edric Norvell Robinson, Sr., 45, of Dallas, pleaded guilty this week, before U.S. Magistrate Judge Paul D. Stickney, to one count of sex trafficking of children as charged in an indictment returned by a federal grand jury in Dallas in September 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Robinson, who remains in federal custody, faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. Sentencing is set for August 10, 2016, before U.S. District Judge Ed Kinkeade.
According to documents filed in his case, from approximately April 7, 2014, through August 19, 2014, Robinson knowingly recruited, enticed, harbored and transported a minor female, whom he caused to engage in a commercial sex act.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology-
facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety, both members of the North Texas Anti-Trafficking Taskforce (NTATT), investigated the case. Assistant U.S. Attorneys Cara Foos Pierce is in charge of the prosecution.
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U.S. Attorney’s Office Spearheads Reentry Efforts During National Reentry WeekRead the Press Release
FORT WORTH/DALLAS — As part of National Reentry Week, the U.S. Attorney’s Office for the Northern District of Texas hosted two events yesterday related to the Department of Justice’s efforts to make our criminal justice system more fair, more efficient and more effective at reducing recidivism and helping formerly incarcerated individuals contribute to their communities.
“Supporting successful reentry is an essential part of this District’s mission to promote public safety,” said U.S. Attorney Parker. “The bottom line is that removing the barriers to employment, housing and education for those returning from prison reduces crime and makes our neighborhoods safer places to live. Supporting them in their desire to be productive and law-abiding citizens is vital.”
The Department is also raising awareness of the importance of reentry strategies that both increase public safety and fulfill our nation’s commitment to the promise of individual redemption.
Yesterday afternoon, the U.S. Attorney’s Office participated in a Reentry Information Fair at the Federal Medical Center (FMC) Carswell in Fort Worth, Texas. Representatives from area service providers and community groups were on hand to provide information and resources to assist inmates in overcoming reentry barriers they may encounter in employment, medical care, public assistance, identification and housing. The U.S. Attorney’s Office also gave inmates nearing release a copy of its just-published Reentry Resource Directory.
Yesterday evening, the U.S. Attorney’s Office hosted its monthly Project Safe Neighborhood (PSN) Probation/Parole Reentry Session in Dallas; approximately 300 recently-released state parolees and probationers attended. The monthly sessions are designed to emphasize the coordinated efforts of local, state and federal law enforcement concerning federal gun laws and to ensure attendees know about social service resources that are available to assist them as they integrate back into society. The Office will host a similar session this evening in Fort Worth.
During the week of April 24-30, 2016, designated as National Reentry Week by the Department of Justice, the U.S. Attorney’s office is sponsoring and coordinating several events designed to raise awareness about the importance of reentry work. On Monday, U.S. Attorney Parker welcomed approximately 300 attendees at the 2016 Reentry Symposium in Dallas, and on Tuesday, staff members from the U.S. Attorney’s Office joined Bureau of Prisons (BOP) staff at Federal Correctional Institute (FCI) Fort Worth to participate in a Reentry Simulation that offered FCI inmates an opportunity to experience, first-hand, one month in the life of a newly-released offender.
Earlier this week, Attorney General Loretta E. Lynch announced new reforms to strengthen the BOP, including the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the BOP.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council, which has been to reduce policy barriers to successful reentry, opening up opportunities in education, job placement, housing, healthcare, and a host of other areas critical to successful reintegration.
More information on Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
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Dallas Man Sentenced to 10 Years in Federal Prison in Enticement CaseRead the Press Release
DALLAS — Jack Marty Taylor, 60, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 120 months in federal prison, following his conviction at trial in November 2015 on one count of attempted enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Taylor has been in federal custody since his conviction.
On September 16, 2014, Taylor posted a Backpage advertisement entitled, “Sugar Dad looking for his son – 50.” Taylor stated he was looking for a younger guy for companionship and stated, “You must be 18-30ish…I’m looking for companionship and love.” In return for that, Taylor offered to “give you a nice, safe place to live, 3 meals a day, spending money, clothing, shoes, etc.”
On September 17, 2014, at 12:33 p.m., a detective with the Garland Police Department, posing as a 14-year-old boy, responded to the advertisement via email. Several emails transpired in which Taylor suggested they communicate via text messaging. As the text messaging began, Taylor asked more about the boy’s age, confirmed he was a minor, where he lived, and what school he attended. Taylor almost immediately began to text the boy about meeting and what they would do when they met. Taylor exchanged numerous text messages with the boy, including sexually explicit text messages, throughout the day.
Between September 17, 2014, and February 4, 2015, Taylor suggested meeting the boy in person 40 times, and each time the boy avoided meeting Taylor. In fact, after just three hours of emails and texts with the boy, and after repeatedly suggesting that the two meet, Taylor texted, “I was scared of you at first. I thought maybe you were a cop.” On February 4, 2015, the day Taylor and the boy were set to meet, Taylor again asked him if he was a cop. Taylor indicated he had experience in these types of matters and advised, “That’s an important thing to ask when you’re meeting someone for the first time.” Law enforcement arrested Taylor on February 4, 2015, at the agreed meeting location.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology-
facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.For more information regarding the National Strategy to Combat Child Exploitation, Prevention and Interdiction, please visit: https://www.justice.gov/psc/national-strategy-child-exploitation-prevention-and-interdiction.
The Garland Police Department and the FBI investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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U.S. Attorney’s Office Spreads Anti-Drug/Anti-Gang Message During Reading Program for Kindergarten Students at a Dallas Elementary SchoolRead the Press Release
DALLAS — Representatives from the U.S. Attorney’s Office for the Northern District of Texas were welcomed today at Gabe Allen Elementary School in west Dallas, where they were invited to read to kindergartners.
As part of the District’s crime prevention and community outreach activities, U.S. Attorney’s Office representatives took the Justice Department’s anti-drug/anti-gang messaging to kindergarten classes at the school using the Rotary Club of Dallas’s “I Like Me” book program. Today, each student received a personalized “I Like Me” book that encourages them to be good and take the right paths in life, such as saying no to drugs and gangs – making it a perfect tool for law enforcement personnel to use to interact positively with children.
Each personalized book features that student as a central character in the book, as well as the names of the student’s two best friends, their teacher, and their school. Personalizing the book enhances the student’s self-esteem, helps develop a joy of reading, and overcomes the disinterest some students experience due to their inability to relate to the people in other stories. Since 1993, over half a million children around the world have participated in the “I Like Me” program.
This program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live.
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U.S. Attorney for the Northern District of Texas Launches Prescription Drug Abuse Prevention Public Service AnnouncementRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced the release today of a public service announcement (PSA) that addresses the dangers of prescription drug abuse and recommends ways parents can keep their children safe.
The announcement is made in advance of this year’s National Prescription Drug Take-Back Day this Saturday, April 30, 2016. Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs, while educating the public about the dangers of misusing medications.
According to the Centers for Disease Control, 46 people die each day from an overdose of prescription painkillers in the United States. The rate of prescription painkiller overdoses has more than quadrupled since 1999 and is now the leading cause of injury death, causing more deaths than motor vehicle traffic accidents annually.
Teens and young adults, who mistakenly believe prescription drugs are safer than illicit drugs, are abusing pills at an alarming rate. One in four teens has misused or abused a prescription drug at least once in their lifetime, a 33 percent increase since 2008.
The increase in the use of prescription drugs has also led to an explosion of heroin abuse. The recent national heroin abuse rate is 19 times higher among those who reported prior use of prescription pain relievers than among those who did not report such use. And four out of every five people who try heroin for the first time admit to having abused prescription pain relievers first.
Prescription drug abuse prevention has long been a priority of the Administration. For more information regarding the Administration’s efforts see this White House Fact Sheet.
The PSA provides tips on how parents can dispose of prescription drugs safely, since the home medicine cabinet is the number-one source of prescription pills for teens and young adults. On Take-Back Day, collection sites will be open from 10:00 a.m. to 2:00 p.m. Click here to locate a collection site near you.
The PSA may be found here. Media requesting a high resolution version may contact the U.S. Attorney’s Office of Public Affairs at [email protected] or 214-659-8600.
# # #U.S. Attorney’s Office Participates in Reentry Simulation at FCI Fort WorthRead the Press Release
FORT WORTH, Texas — As part of events sponsored by the U.S. Attorney’s Office for the Northern District of Texas during National Reentry Week, staff members from the U.S. Attorney’s Office joined Bureau of Prisons (BOP) staff at Federal Correctional Institute (FCI) Fort Worth today to participate in a Reentry Simulation that provided FCI inmates an opportunity to experience, first-hand, one month in the life of a newly-released offender, announced U.S. Attorney John Parker of the Northern District of Texas.
The Department of Justice has taken major steps toward reducing recidivism and helping formerly-incarcerated individuals contribute to their communities. An important part of that commitment is preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing obstacles to successful reentry that too many returning citizens encounter.
“Regardless of how motivated they may be, formerly incarcerated individuals face serious and complex obstacles to successful reentry,” said U.S. Attorney Parker. “This reentry simulation was invaluable in highlighting and addressing those obstacles and offering real-life ways to overcome them.”
In addition to participating in the simulation, U.S. Attorney Office staff members provided a training session to the reentering population regarding firearm laws and potential criminal liabilities so they may make wise choices after their release from prison.
Inmates participating in the simulation were given a packet containing mock information about an imaginary individual who was just released from incarceration, whose identity they would assume for the exercise. The packet contained information about that imaginary individual’s criminal background, education level as well as their financial, housing and employment situation. Then, during four 15-minute sessions, with each session representing one week of the month, participants engaged in various scenarios with staff from the U.S. Attorney’s Office and BOP who role-played representatives from community organizations, such as financial institutions, health clinics, social services, court services and law enforcement.
The Department of Justice designated the week of April 24-30, 2016, as National Reentry Week. During this week, U.S. Attorney Offices are coordinating reentry events designed to raise awareness about the importance of reentry work. With more than 600,000 individuals each year returning to neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycling through local jails, addressing the challenges they face is a fundamental and vital task.
Yesterday, the Department of Justice announced new reforms to strengthen the Bureau of Prisons, including the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the BOP.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council, which has been to reduce policy barriers to successful reentry, opening up opportunities in education, job placement, housing, healthcare, and a host of other areas critical to successful reintegration. The Department is also raising awareness of the importance of reentry strategies that both increase public safety and fulfill our nation’s commitment to the promise of individual redemption.
More information on Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
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Dallas Man Sentenced to 15 Years in Federal Prison for Possessing Methamphetamine and GHB with Intent to DistributeRead the Press Release
DALLAS — Roger Harry Olson, II, has been sentenced by U.S. District Judge David C. Godbey to serve a total of 15 years in federal prison following his guilty plea in October 2015 to an indictment charging two federal felony drug offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Olson, 43, of Dallas, pleaded guilty to two counts of possession with intent to distribute a controlled substance. According to the factual resume filed in the case, in May 2014, a detective with the Garland Police Department, two detectives with the Garland and Dallas Police Departments, assigned as task force officers with the Drug Enforcement Administration (DEA) and other law enforcement officers executed a search warrant for Olson’s car. The same date, Officers searched Olson’s apartment and found approximately 50 grams of methamphetamine as well as a mixture containing gamma hydroxybutyric, commonly known as GHB or the “Date-Rape” drug. Olson admitted he possessed the methamphetamine and the GHB with the intent to distribute it.
According to information presented at Olson’s sentencing hearing, the evidence showed that Olson had three prior California convictions involving “possession for sale” of methamphetamine and GHB, and he was on Texas probation for possession of methamphetamine when he was arrested in May 2014 for the instant drug offenses. Because of Olson’s prior convictions, the government filed an information enhancing the penalties for Olson’s possession with the intent to distribute methamphetamine, subjecting Olson to a statutory period of imprisonment of 10 years to Life. The court also ordered that Olson’s federal sentence run consecutive to any term of imprisonment resulting from the revocation of his probated state sentence.
The Garland Police Department and the DEA investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay was in charge of the prosecution.
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Convicted Husband and Wife Sentenced to Additional Time in Federal Prison After Admitting They Interfered with the Government's Seizure of Their PropertyRead the Press Release
DALLAS — A previously-convicted husband and wife from Dallas, who admitted selling property the government had planned to seize in connection with a marijuana trafficking and money laundering investigation, have been sentenced to serve additional time in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Griselda Hernandez, 36, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 15 months in federal prison, with seven of those months to be served consecutive to the current 57-month federal sentence she is presently serving following her guilty plea in 2013 to one count of money laundering stemming from her role in the marijuana trafficking conspiracy.
On Thursday, her husband, Andres Hernandez, Jr., a/k/a “Gordo,” 36, was also sentenced by Judge Lindsay to 15 months in federal prison with seven of those months to be served consecutive to the current 300-month sentence he is presently serving after pleading guilty in 2013 to one count of conspiracy to distribute 100 kilograms or more of marijuana and one count of money laundering.
Andres and Griselda Hernandez each pleaded guilty last year to one count of destruction or removal of property to prevent seizure.
Andres and Griselda Hernandez were initially indicted in October 2012, along with 16 other individuals, for their roles in a marijuana distribution conspiracy. According to documents filed in that case, Andres Hernandez admitted that on multiple occasions between January 2011 and the date of his arrest on November 1, 2012, he received and routinely distributed multi-pound quantities of marijuana from his residence. Griselda Hernandez admitted delivering $28,854 in cash, proceeds from illegal drug sales, to a straw buyer to purchase a 10-acre property in Barry, Texas, in Navarro County. The straw buyer paid off the loan on the property and deeded it over to the Hernandez’s that same day. Griselda Hernandez admitted she was aware that her husband was selling and distributing drugs from their residence in Dallas and that she occasionally assisted him by collecting drug proceeds.
The October 2012 indictment contained a forfeiture notice that informed Andres and Griselda Hernandez that the government would seek forfeiture from them of the Barry, Texas property that had been purchased with illegal drug sales proceeds. The Hernandez’s agreed with and consented to the forfeiture. In September 2013, Judge Lindsay entered a preliminary order of forfeiture concerning the property, directing the U.S. Marshals Service to seize and hold the property.
Nevertheless, in October 2013, Andres and Griselda Hernandez sold the property for $20,000 and signed a warranty deed transferring the property title to the buyers. The Hernandez’s admitted they knowingly transferred title to the property to others to prevent and impair the government’s lawful authority to take that property into its custody and control.
The United States Marshals Service and Internal Revenue Service Criminal Investigation investigated the case. Criminal Chief Assistant U.S. Attorney Chad Meacham was in charge of the prosecution.
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U.S. Attorney Presents Opening Remarks at 2016 Reentry SymposiumRead the Press Release
DALLAS — On the first day of National Reentry Week, U.S. Attorney John Parker of the Northern District of Texas, presented opening remarks this morning at the 2016 Reentry Symposium held at the Belo Mansion in Dallas. More than 300 stakeholders, government representatives, community leaders and reentry service providers attended the day-long symposium that was hosted by Unlocking Doors, a Texas Reentry Network.
“Supporting successful reentry is an essential part of this District’s mission to promote public safety, and I’m delighted to have had the opportunity, on this first day of National Reentry Week, to address the hundreds attending today’s symposium,” said U.S. Attorney Parker. “The bottom line is that removing the barriers to employment, housing and education for those trying to return from prison reduces crime and makes our neighborhoods safer places to live.”
As part of this Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated this week, April 24-30, 2016, as National Reentry Week. During this week, U.S. Attorney Offices are coordinating reentry events designed to raise awareness about the importance of reentry work. With more than 600,000 individuals each year returning to neighborhoods after serving time in federal and state prisons, and another 1.4 million individuals cycling through local jails, addressing the challenges they face is a fundamental and vital task. Whether an arrest occurred recently or long ago, individuals with criminal records, and particularly recently-incarcerated individuals, face serious and complex obstacles to successful reentry.
The Department has been working through the Federal Interagency Reentry Council to reduce policy barriers to successful reentry, opening up opportunities in education, job placement, housing, healthcare, and a host of other areas critical to successful reintegration. The Department is also raising awareness of the importance of reentry strategies that both increase public safety and fulfill our nation’s commitment to the promise of individual redemption.
In addition to presenting a comprehensive overview of reentry in Texas – from incarceration to the community, the Unlocking Doors Texas Reentry Symposium featured speakers who addressed topics such as the effects of ban-the-box/defer-the-box, expungement and non-disclosure on employment; homelessness; and combatting the implications of juveniles being incarcerated as adults.
More information on Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
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Federal Grand Jury Indicts Businessman in More Than $4.6 Million Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted Wesley Michael Woodyard, believed to be most recently a resident of Dallas, on wire fraud and related charges stemming from his scheme to defraud Ace European Insurance Company (ACE) of more than $4.6 million from approximately 2002 through 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Woodyard with six counts of wire fraud and four counts of engaging in a monetary transaction with property derived from specified unlawful activity. The indictment was returned last week. A warrant has been issued for Woodyard’s arrest.
According to the indictment, Woodyard, 65, owned and operated Ringler Associates of North Texas, Incorporated (RANT). From approximately 1993 through 2015, RANT contracted with Ringler Insurance Agency to act as its agent to sell annuities provided by insurance underwriters whose products were offered for sale through Ringler Insurance Agency.
Ringler Associates, Incorporated (RAI) acted as a parent company for Ringler Insurance Agency and other subsidiaries conducting insurance business on behalf of RAI.
RANT settled insurance claims primarily by selling structured settlements (through annuities) offered for sale through Ringler Insurance Agency. The beneficiaries of these annuities were frequently victims of long term disability related injuries and/or death related to employment. While a policy beneficiary could choose to take a lump sum payment from the insurance company, usually the beneficiary agreed to be compensated through a structured settlement. The annuity would pay the beneficiary a set amount either monthly, quarterly or annually, for an extended period of time, often for the life of the beneficiary. Annuities usually offered the most cost-effective means for an insurance company to pay out a structured settlement. RANT sold annuities available on the open market through Ringler Insurance Agency
A large insurance company located in London, Ace European (ACE), was part of the Lloyd’s of London Insurance Syndicate (Lloyd’s). ACE used primarily two companies – Roger Rich and Company (Roger Rich) and Vanbreda International - to serve as third-party administrators to adjudicate and administer beneficiary claims against ACE; in turn, Roger Rich and Vanbreda used RANT to arrange for the purchase of several annuities on its behalf. All the beneficiaries of the ACE European insurance policies referenced in this indictment were United Nations employees who were injured or killed in connection with their employment.
Rather than follow normal procedures and instruct Roger Rich and Vanbreda to send funds directly to an insurance company (in this case, MetLife) to purchase the annuity contract for the named beneficiary, the indictment alleges that Woodyard told both Roger Rich and Vanbreda to send the funds directly to him, falsely representing to them that he would use all ACE funds to purchase the annuity policy on the open market. When Woodyard gained unlawful access and control to all ACE funds in this manner, Woodyard was also able to completely bypass the normal role of the insurance company (MetLife). When Woodyard unlawfully removed MetLife from the process, Woodyard also prevented MetLife from properly paying any commissions to the Ringler Insurance Agency. During the course of this scheme, Woodyard fraudulently retained all commissions earned by the Ringler Insurance Agency. During the course of the entire scheme, Woodyard repeatedly stole ACE funds wired from London, totaling approximately $4,674,258.00.
Woodyard, according to the indictment, continued to conceal his theft of ACE funds, by making periodic “lulling payments” to beneficiaries entitled to receive regular annuity payments. Woodyard gave beneficiaries the false impression that the source of the payments was an insurance company. From October 2004 to June 2014, Woodyard made a total of approximately $857,626 in such payments to several beneficiaries in an effort to avoid early detection of his scheme. Woodyard’s net financial gain as a result of his fraud is approximately $3,816,632.00
The indictment alleges that Woodyard used the majority of ACE funds for his own personal financial benefit, including paying for personal living expenses, gambling habits, travel expenses, and the purchase of four vehicles, including three Mercedes Benz and one Corvette, as alleged in Counts seven through ten of the indictment.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the maximum statutory penalty for each count of wire fraud is 20 years in federal prison and a $250,000 fine. Each count of engaging in a monetary transaction with property derived from specified unlawful activity is 10 years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit the proceeds obtained as a result of the offense. Restitution could also be ordered.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Cocaine Dealer Sentenced to 168 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Alondo Wheeler, a/k/a “Lil Dude,” has been sentenced by U.S. District Judge Sidney A. Fitzwater to serve 168 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to distribute cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Wheeler, 35, was one of 16 defendants arrested in late May 2015 as part of a joint law enforcement operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI-Violent Gang Safe Streets Task Force, that targeted members of a cocaine and crack cocaine distribution conspiracy, as alleged in an indictment returned by a federal grand jury in Dallas on May 20, 2015.
Twenty-one defendants were charged in that indictment. To date, 12 have pleaded guilty and are awaiting sentencing.
According to documents filed in the case, Wheeler admitted that on several occasions between January 2013 and May 20, 2015, he possessed with the intent to distribute and distributed cocaine base in the Dallas area, working with co-defendants to obtain the crack. In addition, during the conspiracy, Wheeler admitted to possessing with the intent to distribute and/or distributing 106 grams of crack cocaine and 56.7 grams of cocaine.
Assistant U.S. Attorney Phelesa Guy is in charge of the prosecution.
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Grand Prairie Man Sentenced to More Than 17 Years in Federal Prison on Enticement of a Minor ConvictionRead the Press Release
DALLAS — Michael Joseph Carr, 25, of Grand Prairie, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to serve 210 months (17.5 years) in federal prison, following his guilty plea in December 2015 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Carr has been in federal custody since his arrest in May 2015 on a related federal criminal complaint.
According to documents filed in the case, on March 24, 2015, officers with the Grand Prairie Police Department responded to a call regarding a 15-year-old female who was missing from her guardian’s residence. While driving through the neighborhood, officers observed a suspicious vehicle parked at a church on Tamara Lane in Grand Prairie. Two individuals occupied the rear passenger area. The male occupant, later identified as Carr, opened the door and immediately began apologizing. The other occupant was identified as the missing girl, Jane Doe, who stated she and Carr met on an online social media website.
A subsequent search of Jane Doe’s mobile device revealed that she was using the Kik instant messaging application to engage in sexually explicit communications with another Kik user, later identified as Carr. Carr admits that he used the Internet, Kik and his cell phone to entice Jane Doe to engage in sexual activity with him.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 Project Safe Childhood (PSC) cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
For more information regarding the National Strategy to Combat Child Exploitation, Prevention and Interdiction, please visit: https://www.justice.gov/psc/national-strategy-child-exploitation-prevention-and-interdiction.
The Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Corporate Executive Sentenced to Six Months in Federal Prison and Fined $5,000Read the Press Release
DALLAS — Helen Tantillo, 59, of Austin, Texas, was sentenced today by U.S. District Judge Sam Sparks of the Western District of Texas to serve six months in federal prison, to be followed by a three-year term of supervised release, and pay a $5,000 fine. Tantillo was convicted in January 2016 in federal court in Austin on an indictment charging two counts of lying to Special Agents of the Federal Bureau of Investigation in the public corruption investigation of Dallas County Commissioner John Wiley Price and others. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney Richard L. Durbin, Jr., of the Western District of Texas.
Tantillo was an executive at BearingPoint when the firm won a contract in 2005 to digitize Dallas County records. She will remain on bond; no reporting date was set.
At trial, the jury found that Tantillo lied in an interview with the FBI in June 2014, when she falsely claimed that a temporary $10,000 increase in Christian Campbell’s consulting fees was to make a charitable donation to the favorite charity of another Dallas County Commissioner. Contrary to her false statement, Tantillo knew that the increase was at least, in part, in order to pay Kathy Nealy.
The jury also determined that Tantillo told a second lie to FBI agents in that same interview when she claimed that, after an earlier interview with FBI agents, she called her former BearingPoint supervisor, who supposedly reminded her that the charitable donation was the reason for Campbell’s increased monthly payment. Phone records and other evidence at trial demonstrated that this call never happened.
The FBI and Internal Revenue Service Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller prosecuted the case.
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Fugitive Remains in Federal Custody on Federal Charge Following Arrest by DSS and USMSRead the Press Release
FORT WORTH, Texas — A fugitive wanted for various offenses, including most recently, making a false statement on a passport application, remains in federal custody following a detention hearing held yesterday in federal court before U.S. Magistrate Judge Jeffrey L. Cureton, announced U.S. Attorney John Parker of the Northern District of Texas.
Avniel Awan Anthony, 40, a U.S. citizen and former resident of Arlington, Texas, was taken into custody on April 14, 2016, by the Diplomatic Security Service (DSS) and the U.S. Marshals Service (USMS). Anthony remains in federal custody on a federal criminal complaint filed last month in the Northern District of Texas that charges him with willfully and knowingly making a false statement in a passport application.
The criminal complaint alleges that in October 2013, Anthony willfully and knowingly made a false statement in an application for a passport, when he knowingly falsely stated his name was “Dominic Dewayne Wilson” on the passport application he submitted at the U.S. Post Office located on E. Bardin Road in Arlington.
According to information contained in the complaint’s affidavit, as well as information presented at yesterday’s hearing, Anthony was a DSS fugitive wanted for passport fraud, identity theft, evading the police, and being a felon in possession of a firearm. Anthony changed his identity and fled to Playa de Carmen, Mexico, where he remained a fugitive until DSS located him in March 2016.
DSS and the USMS coordinated with the Playa de Carmen Tourist Police and Mexican immigration officials to locate, arrest, and return Anthony to the U.S. to face charges. Yesterday, Judge Cureton found that Anthony was a flight risk and danger to the community and ordered that he remain in federal custody.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment.
The maximum statutory penalty, upon conviction, for willfully and knowingly making a false statement in a passport application is 10 years in federal prison and a $250,000 fine. A defendant is entitled to the presumption of innocence until proven guilty.
The DSS is the security and law enforcement arm of the U.S. Department of State with agents located in more than 160 countries worldwide. DSS and the USMS work together to locate and return U.S. fugitives from abroad.
Assistant U.S. Attorney J. Michael Worley is in charge of the prosecution.
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Armed Carjacker Sentenced to 30 Years in Federal PrisonRead the Press Release
DALLAS — Felipe Pinon, 28, of Dallas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 30 years in federal prison, following his guilty plea in November 2015 to felony offenses stemming from his role in the armed carjacking of two people last year in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Pinon pleaded guilty to one count of carjacking and aiding and abetting and one count of using, carrying, and brandishing a firearm in furtherance of a crime of violence and aiding and abetting.
Pinon’s co-defendant in the case, Monica Renee Metcalf, 22, also of Dallas, pleaded guilty in November 2015 to the same offenses. She faces a statutory penalty of up to 15 years in federal prison and a $250,000 fine on the carjacking count and up to life in federal prison on the firearm count. She is scheduled to be sentenced by Judge Lindsay on July 25, 2016.
According to documents filed in the case, on January 18, 2015, Metcalf approached an individual (Victim 1) at a gas station near the 3300 block of Webb Chapel Extension in Dallas and asked Victim 1 for a ride. Metcalf directed Victim 1 to drive her to an apartment complex across the street, and when they arrived there, Pinon approached the vehicle and spoke with Metcalf. Metcalf then asked Victim 1 to give Pinon a ride as well, but Victim 1 refused. Pinon then brandished a handgun and pointed it at Victim 1 and demanded that Victim 1 give him everything he had. Pinon and Metcalf ordered Victim 1 out of the vehicle and drove away in it.
The next day, Metcalf approached and briefly spoke with an individual (Victim 2) who was seated in his vehicle near the 300 block of S. Seagoville Road in Dallas. As Metcalf walked away from Victim 2, Pinon approached Victim 2. Pinon brandished a handgun and ordered Victim 2 to get out of the vehicle. Then, Pinon, Metcalf, and another individual drove away in Victim 2’s vehicle.
The Dallas Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Brian Poe and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are prosecuting the case.
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Former Law Firm IT Engineer Convicted in Computer Intrusion Case is Sentenced to 115 Months in Federal PrisonRead the Press Release
DALLAS — A former Information Technology (IT) engineer for a Dallas-headquartered law firm, who was convicted at trial in September 2015 on felony offenses stemming from his unauthorized access to the firm’s computer network, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Anastasio N. Laoutaris, 41, of Spring, Texas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 115 months in federal prison and ordered to pay $1,697,000 in restitution. The jury convicted Laoutaris on two counts of knowingly accessing a computer network without authorization and intentionally issuing commands and codes that caused damage to the network. Laoutaris was remanded into federal custody following that verdict.
Laoutaris, who was an IT engineer for Locke Lord LLP from 2006 to August 2011, accessed the firm’s computer network without authorization on December 1, 2011, and December 5, 2011, and on both occasions, issued instructions and commands that caused significant damage to the network, including deleting or disabling hundreds of user accounts, desktop and laptop accounts, and user e-mail accounts
The law firm, Locke Lord LLP, has offices throughout the U.S. and the world; its headquarters is located in Dallas. The U.S. Attorney’s Office wishes to thank them for their support and cooperation throughout the investigation and prosecution.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Paul Yanowitch and Nick Bunch prosecuted.
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“Pimp” and “John” Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Luis Rivera, 19, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea in October 2015 to one count of conspiracy to commit sex trafficking of children, announced U.S. Attorney John Parker of the Northern District of Texas.
Last month, Rivera’s co-defendant, Brady Rodriguez-Cruz, a/k/a Marcos Antonio Rodriguez-Mejia, 33, also of Irving, was sentenced by Judge Boyle to 293 months in federal prison. He was convicted at trial in November 2015 on one count of conspiracy to commit sex trafficking of children, and he pleaded guilty before trial to one count of possession of counterfeit documents.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” From approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left. A portion of that money was then used to buy some fast food for the minor girls.
Additionally, on August 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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U.S. Attorney for the Northern District of Texas Launches Prescription Drug Abuse Prevention Public Service AnnouncementRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced the release today of a public service announcement (PSA) that addresses the dangers of prescription drug abuse and recommends ways parents can keep their children safe.
The announcement is made in advance of this year’s National Prescription Drug Take-Back Day on Saturday, April 30, 2016. Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs, while educating the public about the dangers of misusing medications.
According to the Centers for Disease Control, 46 people die each day from an overdose of prescription painkillers in the United States. The rate of prescription painkiller overdoses has more than quadrupled since 1999 and is now the leading cause of injury death, causing more deaths than motor vehicle traffic accidents annually.
Teens and young adults, who mistakenly believe prescription drugs are safer than illicit drugs, are abusing pills at an alarming rate. One in four teens has misused or abused a prescription drug at least once in their lifetime, a 33 percent increase since 2008.
The increase in the use of prescription drugs has also led to an explosion of heroin abuse. The recent national heroin abuse rate is 19 times higher among those who reported prior use of prescription pain relievers than among those who did not report such use. And four out of every five people who try heroin for the first time admit to having abused prescription pain relievers first.
Prescription drug abuse prevention has long been a priority of the Administration. For more information regarding the Administration’s efforts see this White House Fact Sheet.
The PSA released today provides tips on how parents can dispose of prescription drugs safely, since the home medicine cabinet is the number-one source of prescription pills for teens and young adults. On Take-Back Day, collection sites will be open from 10:00 a.m. to 2:00 p.m. Click here to locate a collection site near you.
The PSA may be found here. Media requesting a high resolution version may contact the U.S. Attorney’s Office of Public Affairs at [email protected] or 214-659-8600.
# # #Dallas Doctor and Three Dallas-Area Home Health Agency Owners Convicted for Running Large-Scale, Sophisticated Health Care Fraud SchemeRead the Press Release
DALLAS – Following a six-week-long trial before U.S. District Judge Sam A. Lindsay and less than two days of deliberation, this afternoon a federal jury convicted a Dallas physician and three owners of home health agencies on various felony offenses, including conspiracy to commit health care fraud, stemming from their participation in a nearly $375 million health care fraud scheme involving fraudulent claims for home health services, announced U.S. Attorney John Parker of the Northern District of Texas.
Jacques Roy, M.D., 58, of Rockwall, Texas; Cynthia Stiger, 53, of Dallas; Wilbert James Veasey, Jr., 64, of Dallas; and Charity Eleda, R.N., 55, of Rowlett, Texas, were each convicted on one count of conspiracy to commit health care fraud. In addition, Roy was convicted on eight, Veasey on three and Eleda on four counts of health care fraud. Roy was also convicted on two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Eleda was also convicted on three counts of making false statements for use in determining rights of benefit and payment by Medicare.
“This office will continue to use the most sophisticated techniques available to aggressively prosecute those who, through their fraud, drive up the costs of health care to consumers and tax payers alike,” said U.S. Attorney Parker. “I applaud the tremendous cooperation among the investigative agencies that brought us to this point.”
Each conspiracy and health care fraud count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The obstruction of justice count and each false statement count carry a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencings are set for this fall.
Dr. Roy, who has been in federal custody since his arrest on February 28, 2012, on an indictment that was announced at a press conference in Dallas shortly after it was unsealed that same day, owned/operated Medistat Group Associates, P.A., an association of health care providers who provided home health certifications and performed patient home visits. Stiger and Veasey, who owned/operated Apple of Your Eye Healthcare Services, Inc., and Eleda, who owned/operated Charry Home Care Services, Inc., were also arrested on charges in that indictment, but were released on bond.
Three other defendants charged in the case, Cyprian Akamnonu and his registered nurse wife, Patricia Akamnonu, both of Cedar Hill, Texas, and Teri Sivils, of Midlothian, Texas, each pleaded guilty before trial to one count of conspiracy to commit health care fraud. Cyprian and Patricia Akamnonu, who owned Ultimate Care Home Health Services, Inc., are each currently serving a ten-year federal prison sentence. They were also ordered to pay $25 million in restitution. Sivils, who was the office manager at Medistat, pleaded guilty in April 2015, and is scheduled to be sentenced in June 2016.
The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled: Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.
As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services. Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates. Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary. Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy or another physician working under his direction at Medistat.
Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary. That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing. This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.
Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary. Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries. Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.
The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies. Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries.
Regarding Dr. Roy’s conviction for obstruction of justice, the government presented evidence that when the Centers for Medicare and Medicaid Services (CMS) suspended Dr. Roy and Medistat from receiving Medicare payments after June 2, 2011, because of suspected fraud, Dr. Roy sought an “end-run” around the suspension through the use of another company, Medcare House Calls. Dr. Roy directed the medical providers he employed to be re-credentialed and to bill Medicare under Medcare House Calls, instead of Medistat. Nonetheless, the money that Medicare paid was circumvented back to Medistat and Dr. Roy.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorney P.J. Meitl, Special Assistant U.S. Attorney Nicole Dana and Criminal Chief Assistant U.S. Attorney Chad Meacham prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for more than $7 billion. In addition, HHS CMS, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), please visit: www.stopmedicarefraud.gov.
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14 Convicted in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a one-day trial yesterday before U.S. District Judge John McBryde, a federal jury convicted Cleto Tarin, 52, most recently of the Dallas-Fort Worth area, and Hector Saldivar, 33, of Wichita Falls, Texas, each on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Tarin and Salvidar each face a statutory penalty of not less than five years or more than 40 years in federal prison and up to a $5 million fine. They are scheduled to be sentenced by Judge McBryde in August 2016.
With these two convictions yesterday, all 14 defendants charged in an indictment with conspiracy to possess with the intent to distribute methamphetamine that was returned by a federal grand jury in Fort Worth on February 10, 2016, have been convicted.
Three defendants, Miguel Antonio Martinez, 31, Marcus Caldwell, 32, and Bobbie Frie, Jr., 30, each pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. They each face a statutory penalty of not less than five years or more than 40 years in federal prison and up to a $5 million fine.
Seven defendants, David Sheppard, 40, Kendra Ward, 27, Eric Overstreet, 27, Robert Baggott, 45, Cecil Hindman, 51, Oscar Melanson, 31, and Jonathan Morris, 31, each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Two defendants, Susan Williams, 29, and Raymondo Acuna, 31, each pleaded guilty to one substantive count of possession with intent to distribute methamphetamine, as charged in superseding informations. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Sentencing dates for the 12 defendants who pleaded guilty are set in July and August 2016.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Falls Police Department conducted the investigation.
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Former Archer County Justice of the Peace Sentenced to 24 Months in Federal Prison for Stealing County FundsRead the Press Release
WICHITA FALLS, Texas — Joseph Charles Boyle, 64, the former Justice of the Peace for Precinct 2 in Holliday, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 24 months in federal prison, the top end of the U.S. Sentencing Guidelines, following his guilty plea in November 2015 to a felony Information charging one count of theft concerning programs receiving federal funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyle was also ordered to pay $133,333.33 in restitution, the total amount of money he stole, embezzled and obtained by fraud from Archer County. Judge O’Connor remanded Boyle to federal custody following this morning’s sentencing hearing.
Boyle resigned his position as Justice of the Peace the day before he entered a guilty plea. In late August 2015, he retired from the Texas Department of Criminal Justice, where he worked as a correctional officer at the James V. Allred Unit in Iowa Park, Texas
According to documents filed in the case, Boyle served in his elected position in Archer County, Texas, since January 2003. As Justice of the Peace, Boyle was authorized to impose fines and assess fees on individuals cited with a variety of violations, such as minor in possession of alcohol, speeding, illegal passing, driving without a valid license, and other traffic violations.
From approximately January 1, 2013, through May 5, 2015, on numerous occasions, Boyle stole, embezzled, and obtained by fraud, funds that he collected as payment of fees, fines and penalties, and failed to turn that money over to its rightful owner, Archer County.
Boyle told individuals who had been cited with a violation that the fine was a certain amount, obtained payment from the individual in that amount, and provided the individual with a receipt in that amount. Boyle, however, then kept a portion of the individual’s payment and falsely reported to Archer County that the fine assessed, and the amount received as payment of the fine, was less than the amount he had actually assessed and received.
To help facilitate his theft, Boyle often requested that individuals pay their fines in cash. Frequently, he kept a portion of the cash the individual paid, and then purchased a money order to make the payment to Archer County, all in an effort to disguise the fact that he had been paid in cash.
The FBI and the Texas Rangers investigated the case. Assistant U.S. Attorney Douglas Brasher was in charge of the prosecution.
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Dallas Woman Sentenced to 18 Months in Federal Prison for Structuring TransactionsRead the Press Release
DALLAS — Linda Nell Fantroy, 65, of Dallas, was sentenced this morning by U.S. District Judge David C. Godbey to 18 months in federal prison, following her guilty plea in December 2015 to one count of structuring transactions to evade reporting requirements, announced U.S. Attorney John Parker of the Northern District of Texas.
Fantroy was ordered to surrender to the Bureau of Prisons on June 6, 2016.
The law requires any financial institution that engages with a customer in a currency transaction, such as a deposit or withdrawal, of more than $10,000, to report the transaction to the Internal Revenue Service (IRS). According to the factual resume filed in the case, from January 2010 to late October 2013, Fantroy structured currency deposits to avoid the $10,000 currency reporting requirements. During this time, she made approximately 111 cash deposits totaling more than $580,000. Each of those deposits was made with the intent to avoid the currency reporting requirements, and she violated this law as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
In a related civil action filed in the Northern District of Texas (3:14-CV-3265) , Senior U.S. District Judge A. Joe Fish entered a final judgment of forfeiture in January 2015, noting the government had probable cause to seize seven properties in the Dallas metroplex area that Fantroy owned.
According to the government’s Verified Complaint for Forfeiture in rem, filed in September 2014, each month, Fantroy, who was employed by the Dallas Independent School District (DISD), received direct payroll deposits from DISD and from the Texas Comptroller Teacher Retirement System of Texas. From January 2007 through November 2009, Fantroy had a total of 10 deposits totaling $6,270 into her Credit Union of Texas accounts.
However, beginning in December 2009, the currency deposits into Fantroy’s accounts increased dramatically. In fact, from December 2009 to August 31, 2013, more than $440,000 in currency, the source of which was unknown, was deposited into Fantroy’s accounts in 94 separate transactions, and each of those deposits was under the $10,000.01 Currency Transaction Report reporting threshold. The majority of structured funds deposited into her accounts during this time frame were used to purchase the seven above-mentioned residential properties that she was required to forfeit to the government.
IRS Criminal Investigation and the U.S. Department of Housing and Urban Development investigated the case. Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
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Ellis County Woman Sentenced to 105 Months in Federal Prison for Defrauding MedicaidRead the Press Release
DALLAS – An Ellis County woman who pleaded guilty last year to one count of health care fraud arising from her submission of false and fraudulent claims for counseling and psychotherapy services to Medicaid, on behalf of Medicaid beneficiaries, was sentenced this afternoon, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexis C. Norman, 44, of Midlothian, Texas, was sentenced by U.S. District Judge Jane J. Boyle to 105 months in federal prison and ordered to pay $2,969,045.97 in restitution to Medicaid. Judge Boyle remanded the defendant into custody at the conclusion of the hearing.
According to documents filed in the case, Norman was the CEO and Executive Director of Greater Southwest Group, Inc. (GSWG) and Ellis County Community Services (ECCS). She obtained Medicaid group numbers for GSWG and ECCS and used those numbers, together with individual Medicaid provider numbers of licensed counselors and Medicaid recipient information, to submit fraudulent claims to Medicaid.
Norman, who is neither a psychotherapist nor a mental health provider, submitted claims for individual and family psychotherapy sessions that were not performed. As part of her fraud scheme, Norman used the Medicaid provider information of licensed counselors who applied for positions as contract counselors at GSWG and ECCS, but who were never hired and never worked for Norman, GSWG, or ECCS. Norman also used the Medicaid provider numbers of licensed counselors, without their knowledge and consent, to submit claims under the GSWG and ECCS group numbers for services that they did not perform and for psychotherapy services that predated and postdated their actual employment with Norman. The indictment alleges that Norman used the identification of more than 500 Medicaid recipients, most of whom were minor children, in her scheme.
From December 2, 2009, through July 17, 2014, Norman submitted claims to Medicaid and to Medicaid Managed Care Organizations, through GSWG and ECCS, totaling approximately $5,502,724.88; Norman was paid approximately $2,596,045.97 for these claims. The defendant was also ordered to pay $373,000.00 in restitution for her participation in a fraud scheme involving the summer food service program funded by the United States Department of Agriculture.
The investigation of Norman led to the investigation of her friend, Brenda Ward, 48, of Cedar Hill, Texas, who was running a similar fraud scheme. Ward was President and CEO of H.E.L.P.-ing. Communities, Inc. (HCI). She was neither a psychotherapist nor a mental health provider, but she submitted fraudulent claims to Medicaid for individual, family and group psychotherapy sessions that were not performed. Ward was indicted in February 2015 and subsequently pleaded guilty to one count of healthcare fraud, admitting that from January 2009 through February 9, 2015, she submitted fraudulent claims to Medicaid and to Medicaid Managed Care Organizations, through HCI, totaling approximately $1,639,923, and was paid approximately $887,809 on those claims. She was sentenced earlier this year by U.S. District Judge Sidney A. Fitzwater to 57 months in federal prison and ordered to pay $887,809 in restitution to Medicaid.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General, the Texas Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Agriculture – Office of Inspector General investigated both the Norman and Ward cases, and Assistant U.S. Attorney Douglas Brasher prosecuted both cases.
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Oklahoma City Man Faces 10 Years in Federal Prison After Admitting He Transmitted Program or Code to a Protected ComputerRead the Press Release
DALLAS — Benjamin Earnest Nichols, 37, of Oklahoma City, appeared yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to an Information charging one count of knowingly causing the transmission of a program or code to a protected computer, announced U.S. Attorney John Parker of the Northern District of Texas.
Nichols, who is on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
Nichols admitted that on or before May 2010, he knowingly and purposefully launched a distributed denial of service (DDOS) attack against mcgrewsecurity.com, a domain name and webserver owned by RWM, in an attempt to cause damage to the protected computer system and deny service to mcgrewsecurity.com, causing loss during a one-year period of between $5,000 and $6,500.
According to documents filed in the case, a (now) convicted defendant, Jesse McGraw, a former contract security guard at the North Central Medical Plaza in Dallas, was arrested in June 2009 on a criminal complaint filed in the Northern District of Texas that charged him with accessing, without authorization, protected computers in a medical facility. McGraw was indicted in July 2009, and in May 2010, he pleaded guilty to two counts of transmission of malicious code. McGraw was sentenced in March 2011 to serve a total of 110 months in federal prison.
At the time of his criminal conduct, McGraw was the self-proclaimed leader of the Electronic Tribulation Army (ETA), a hacking group. Nichols and others were also members of the ETA. McGraw intended to cause the remotely-controlled medical center computers to participate in a DDOS attack on a rival hacker group.
After interacting with RWM on blogs and in chat rooms, Nichols got angry at RWM for posting what he considered to be false and disparaging remarks on the blog at mcgrewsecurity.com. Nichols then used various means to harass and mock RWM, including setting up a derogatory website for RWM, posting disparaging photo-shopped photographs of RWM, and ordering sex toys to be sent to RWM’s home. In addition, Nichols also created/repurposed a bot that used computer code to respond to certain keywords by transmitting random insults and profanity to RWM’s internet relay chat (IRC) channel.
The Federal Bureau of Investigation is conducting the investigation. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Dallas Check Cashing Business Owner Sentenced to 21 Months in Federal Prison for Role in Stolen Tax Refund SchemeRead the Press Release
DALLAS — A Dallas check cashing business owner, Obinna Njoku, who pleaded guilty to his role in a stolen tax refund scheme, has been sentenced by U.S. District Judge Sam A Lindsay to 21 months in federal prison and ordered to pay $309,679 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
Njoku pleaded guilty in August 2015 to a superseding information charging one count of conspiracy to launder monetary instruments. At Monday’s sentencing hearing, Judge Lindsay ordered Njoku to surrender to the Bureau of Prisons on May 10, 2016.
According to the factual resume filed in the case, Njoku was the sole director of All-Ways Insurance Group, LLC, and he owned and operated All-Ways Check Cashing, Inc., a money service business licensed in Texas and federally, as an agent of MoneyGram. In 2012, All-Ways had at least two locations in Dallas, including one on Forest Lane. Njoku was also the designated anti-money laundering compliance officer for All-Ways, in its agency for MoneyGram, and represented to MoneyGram that All-Ways had implemented an anti-money laundering compliance policy and would comply with all reporting and recordkeeping requirements.
From January through April 2012, according to the factual resume, Njoku was asked by several individuals to cash, through All-Ways, numerous checks purported to be federal income tax refunds issued to individuals in the Dallas area. The individuals asking Njoku to cash these checks brought “batches” of checks, often eight to 12 at a time, to Njoku at the Forest Lane All-Ways location. These “batches” often had consecutive check numbers, and each check was always for less than $10,000. The individuals who brought the checks to Njoku to cash were not the individuals to whom the checks were payable. The total amount of each “batch” of checks presented to Njoku, as well as the amount of cash released to the respective individual presenting the “batch” of checks, was usually well over $10,000.
Njoku believed, according to the factual resume, that the individuals asking for the checks to be cashed had prepared and filed federal income tax returns for the persons to whom the checks were issued, and those individuals had generated illegally inflated refund amounts. While he believed the checks were likely derived from criminal activity involving fraudulent federal tax returns, Njoku did not ask or seek any details. Instead, Njoku deliberately blinded himself to what he suspected was the source of the checks and deposited the checks into his All-Ways bank accounts at Comerica Bank. As his commission for cashing these checks, Njoku kept 25 to 35 percent of the overall amount of each check “batch” presented to him for cashing, which was much more than the usual three to five percent he collected from other check cashing customers.
The investigation by special agents with Internal Revenue Service Criminal Investigation revealed that the checks presented to Njoku for cashing resulted from fraudulently filed federal income tax returns, and the payees on those checks had their identities stolen by individuals who used their personal information to file fraudulent tax returns and fraudulently claim refunds. These fraudulent federal tax returns submitted in these victims’ names were electronically filed, used an incorrect address for the taxpayer, claimed a refund, and directed the refund to be processed as an e-Collect check. The total amount of the checks obtained through wire fraud and cashed by Njoku through All-Ways was at least $300,000, according to the factual resume.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney John J. de la Garza was in charge of the prosecution.
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Dallas Carjackers SentencedRead the Press Release
DALLAS — Donshay Jones, 24, of Dallas, was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 168 months (14 years) in federal prison, following his guilty plea to felony offenses stemming from the February 2014 armed carjacking of a young woman and her young child in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Jones pleaded guilty in November 2015 to one count of carjacking and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Jones’ co-defendant, Joshua Sutherland, 22, also of Dallas, pleaded guilty to one count of carjacking and was sentenced last year by Judge Kinkeade to 87 months in federal prison.
According to documents filed in the case, Jones and Sutherland were in an apartment building’s parking lot on Ledbetter Drive in Dallas on February 18, 2014. With Sutherland acting as the “look out,” Jones shoved the woman and her four-year-old son against a wall, pointed and held a firearm on them, and threatened to kill them both unless she turned over her valuables, including her car keys. After the woman pointed out her car to Jones, Jones searched her person, and then he and Sutherland got into her car and drove away.
The Dallas Police Department and the Federal Bureau of Investigation conducted the investigation. Deputy Criminal Chief Assistant U.S. Attorney Lisa J. Dunn prosecuted the case.
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Lubbock Man Sentenced to 27 Months in Federal Prison for Sending Obscene Material to Texas DPS Special Agent Posing Online as a 13-Year-Old FemaleRead the Press Release
LUBBOCK, Texas — A 30-year-old Lubbock, Texas, man, Justin Boyet Johnson, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 27 months in federal prison, following his guilty plea in January to an indictment charging one count of attempted transfer of obscene material to a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Johnson must surrender to the Bureau of Prisons on May 6, 2016.
According to documents filed in his case, on May 15, 2015, Johnson engaged in a series of communications, via texting and emailing, with a person he believed to be a 13-year-old girl who represented that she lived in Lubbock. This “girl,” who was actually a special agent with the Texas Department of Public Safety, acting in an undercover capacity, had posted an online advertisement stating she was bored and looking for something to do. Johnson expressed his sexual interest in the girl and emailed her a sexually explicit photograph of himself.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Justice Department Hosts Interagency Community Initiative in Dallas to Combat Religious DiscriminationRead the Press Release
DALLAS — The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Texas, in partnership with other federal agencies, hosted a community roundtable in Dallas last week that focused on religiously-motivated hate violence and hate crimes, protecting places of worship, and ways the federal government can improve its efforts in these critically important areas, announced U.S. Attorney John Parker of the Northern District of Texas.
“The diversity and tolerance of the north Texas area can be seen reflected in our many and varied faith-based communities,” said U.S. Attorney Parker. “The one thing we cannot, must not, tolerate, however, is hate directed at someone solely because they are different. It is particularly repugnant to our core values as Americans to victimize a person or group because of their faith. In fact, it is our shared duty to ensure that everyone, not just those who think like us, is free to worship as they choose and do so in peace.”
Approximately 35 representatives from Dallas - Fort Worth area faith-based community and civil rights organizations as well as several government agencies attended the roundtable that was facilitated by U.S. Attorney Parker. Enthusiastic dialogue during the roundtable will guide stakeholders in identifying next steps, as well as short and long-term goals.
A guest at the roundtable, U.S. Attorney Barry Grissom of the District of Kansas, spoke about the April 2014 shooting deaths of three people outside Jewish facilities in Overland Park, Kansas, and the resulting aftermath. Grissom also spoke about the statement he made to Kansans after a series of crimes in the U.S. against Muslims and mosques followed the Paris and San Bernardino, California, terrorist attacks, asking them to not let fear drive them to hateful and divisive acts toward Muslims.
This roundtable is the second in a series of roundtables being held throughout the U.S. as part of the Department’s new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. This new initiative supplements the Department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes.
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Dallas Man is Sentenced to Serve a Total of 25 Years in Federal Prison on Drug and Firearm ConvictionsRead the Press Release
DALLAS — A Dallas man who was convicted at trial last year on all counts of a superseding indictment charging drug trafficking and firearm offenses was sentenced on Thursday to a lengthy federal prison term, announced U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney John M. Bales of the Eastern District of Texas.
Thomas Earl Wright, 34, was sentenced by U.S. District Judge Jane J. Boyle to serve a total of 300 months in federal prison. He was convicted, following a five-day trial in September 2015, on one count of possession with intent to distribute five kilograms or more of cocaine, one count of possession with intent to distribute marijuana, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of being a felon in possession of a firearm.
According to documents filed in the case and evidence presented at trial, officers with the Dallas Police Department responded to a welfare complaint about children coming and going from a narcotics stash house on Packard Street in Dallas. When officers arrived at the residence, they encountered Wright, with bundles of cash stuffed in his pockets, leaving the residence through its back door. When Wright’s co-defendant, Eric Tyrone Harris, opened the front door to the residence when officers knocked, officers noted a strong odor of marijuana emitting from the residence. A juvenile was at the front door with Harris, and officers removed the child from the residence and released him to a parent.
Law enforcement secured a search warrant and found multiple kilograms of cocaine located in a suitcase in a utility room, more than 100 pounds of marijuana in a bedroom closet and approximately $30,000 in cash — $3,000 in Wright’s pockets and $27,000 in cash beneath a mattress. In addition, they located three firearms in the residence.
Harris pleaded guilty in April 2015 to one count of possession with intent to distribute cocaine and was sentenced last month by Judge Boyle to 100 months in federal prison.
The Dallas Police Department, U.S. Secret Service, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Plano Police Department investigated. Assistant U.S. Attorney Errin Martin of the Northern District of Texas and Assistant U.S. Attorney Heather Rattan of the Eastern District of Texas prosecuted the case.
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Woman Who Took Minor Child She Met During Online X-Box 360 Gaming from Texas to Wisconsin to Engage in Sexual Activity is Sentenced to 10 Years in Federal PrisonRead the Press Release
DALLAS — A woman who pleaded guilty to federal offenses stemming from her taking a minor child, whom she met during online gaming, from Texas to Wisconsin, where she sexually assaulted him, was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Jennifer Lynn Dougherty, 34, was sentenced by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison. Dougherty pleaded guilty in December 2015 to an indictment charging two counts of traveling in interstate commerce – from Wisconsin to Texas – with the intent to engage in criminal sexual activity. She also pleaded guilty to one count of transportation of a minor in interstate commerce – from Texas to Wisconsin – with intent to engage in criminal sexual activity. She has been in custody since her arrest in September 2015 on a related federal criminal complaint.
According to the affidavit filed with that complaint, after being notified of a missing minor child by the child’s parents, the Garland Police Department contacted the National Crime Information Center (NCIC) and entered the victim into the database as a missing juvenile. A review of the minor child’s X-Box 360 gaming system by detectives with the Garland Police Department revealed recent chat communications, sexual in nature, with a particular user, later identified as Dougherty.
On Wednesday, September 16, 2015, officers with the Dallas Police Department assigned to the Dallas Love Field airport, contacted NCIC advising they had located an individual matching the child’s description, in the company of an adult female, at the airport. Upon receipt of this information, officers with the Garland Police Department went to the Dallas Love Field airport and retrieved the missing child and adult female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Garland Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Plano Anesthesiologist Convicted for Role in Pill Mill Operation is Sentenced to 25 Years in Federal PrisonRead the Press Release
DALLAS — Licensed anesthesiologist, Theodore E. Okechuku, 59, of Plano, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 300 months in federal prison following his conviction at trial in October 2015 on felony offenses stemming from his role in a pill mill and drug distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Also today, coconspirator Elechi N. Oti, 50, of Augusta, Georgia, who was convicted at trial with Okechuku, was sentenced by Judge Solis to 97 months in federal prison.
Okechuku and Oti were each convicted on one count of conspiracy to unlawfully distribute a controlled substance. Okechuku was also convicted of using, carrying, and brandishing a firearm during and in relation to a drug trafficking crime and conspiring to use, carry, and brandish a firearm during and in relation to a drug trafficking crime.
Two others convicted at trial for their roles in the conspiracy, Emmanuel C. Iwuoha, 52, of Allen, Texas, and Kelvin L. Rutledge, 43, of Dallas, are scheduled to be sentenced next month.
Three co-conspirators, all from Dallas, pleaded guilty before trial. Ignatius O. Ezenagu, 57; David L. Reed, 44; and Jerry K. Reed, 45; each pleaded guilty to one count of conspiracy to unlawfully distribute a controlled substance. Ezenagu, who also pleaded guilty to one count of brandishing a firearm in relation to a drug trafficking crime, was sentenced to serve a total of 70 months in federal prison. David and Jerry Reed are scheduled to be sentenced next month.
The government presented evidence at trial that Okechuku owned and operated, with the assistance of coconspirator Ezenagu, Medical Rehabilitation Clinic (MRC). MRC was initially located at 9304 Forest Lane in Dallas, and then later, the defendants moved MRC to 9205 Skillman Street in Dallas.
MRC operated as a “pill mill,” in that it functioned as a place to unlawfully obtain controlled substances, such as hydrocodone, and not as a medical facility. Okechuku and business manager Ezenagu charged cash only for office visits in exchange for unlawful hydrocodone prescriptions.
The coconspirator drug dealers, including David Reed and his brother Jerry Reed, along with Rutledge, recruited “patients,” often from homeless shelters, and drove them in groups to MRC. On a daily basis, these dealers brought multiple patients at a time to MRC. They would escort the patients into the clinic and coordinate their office visits with Ezenagu.
Often, dealers filled out patient information for the recruits they brought to the clinic. Dealers paid cash for the office visits of their patients, and handed the money to their patients before they entered the clinic, gave it to them in MRC’s waiting room, or paid the employees directly. MRC had a caged cash room where people would pay for the office visit with money provided by the dealers, by handing the money through an opening in the bars to a clinic employee. Large amounts of cash, often more than $5,000, passed through the clinic’s drug trafficking business on a daily basis.
Okechuku and Ezenagu conspired to employ armed security guards to protect the business, its employees, and the dealers. These armed security guards displayed and brandished various firearms on their waists for all to see in order to deter violence by the “patients” and to protect the illicit drug money from robbery.
Okechuku rarely saw patients, but delegated that task to licensed physician assistant and coconspirator Oti or to Emmanuel Iwuoha, who held no medical or nursing license in Texas, but acted as a doctor, using Okechuku’s signature and DEA prescription authority. In fact, at MRC, Okechuku, Oti, and Iwuoha were referred to as “Doctor,” regardless of medical license.
Oti, Iwuoha, and at times, Okechuku, would do little to no physical examination and prescribe controlled substances, including hydrocodone, a Schedule III controlled substance at the time. Patient visits were short and they would normally leave with a 30-day prescription (120 pills) or more of hydrocodone, along with other prescriptions. Okechuku, Oti, and Iwuoha diagnosed the majority of the patients with back pain, regardless of their true condition. Hydrocodone was prescribed regardless of a patient’s need, or lack thereof.
Once the patients received the prescriptions at MRC, the coconspirator dealers would drive the groups of patients to various pharmacies to get the prescriptions filled. The dealers would also furnish the money to pay for the narcotics. Sometimes, the dealers did not need the patients to pick up the prescriptions as some pharmacies gave the hydrocodone directly to the dealers. After the prescriptions were filled, the patients gave the pills to the dealers, who then sold the pills on the street for a profit.
The FBI, Dallas Police Department and Mesquite Police Department investigated. Assistant U.S. Attorneys Kate Pfeifle and Russ Fusco, and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
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Convicted Felon from Fort Worth is Sentenced to 10 Years in Federal Prison on Firearm ConvictionRead the Press Release
FORT WORTH, Texas — A multi-convicted felon, Roderick Johnson, 35, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge Reed O’Connor to 10 years in federal prison, following his conviction at trial in December 2015 on one count of being a felon in possession of a firearm, announced U.S. Attorney John Parker of the Northern District of Texas.
Johnson has been in custody since his arrest in June 2015 when officers with the Fort Worth Police Department responded to a report of a domestic disturbance at a motel room in Fort Worth. A search of that room, where Johnson was staying, revealed a .357 caliber pistol belonging to Johnson under the mattress. Johnson has been convicted of theft and controlled substances felony offenses in Tarrant County in 2004, 2005, 2009, 2011 and 2013.
The case was investigated by the Fort Worth Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Convicted Craigslist Fraudster Who Was on the Lam for Four Years is Sentenced to 84 Months in Federal PrisonRead the Press Release
DALLAS — Phillip Sean Anthony, 32, of Grand Prairie, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 84 months (seven years) in federal prison and ordered to pay restitution to his victims. The sentencing follows Anthony’s guilty plea in June 2015 to one count of mail fraud and one count of aggravated identity theft. The announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Anthony was indicted by a federal grand jury in Dallas in March 2011 on five counts of mail fraud and two counts of aggravated identity theft stemming from an identity theft scheme he ran from approximately mid-June 2008 to early December 2009 using Craigslist. He agreed to plead guilty to one count of mail fraud and one count of aggravated identity theft in plea papers that were filed in October 2011, but he failed to appear in court as ordered for his rearraignment on October 25, 2011.
Approximately four years later, Anthony was located in Irving, Texas, after absconding to California for three years. In February 2015, the government filed a motion for detention which was granted by U.S. Magistrate Judge Paul D. Stickney, who found that Anthony had violated the terms of his pretrial release. Judge Stickney further found that Anthony had been committing new crimes continuously since absconding in 2011 and had used more than 30 different names, which were stolen identities, had stolen more than $200,000 from his victims, and then after stealing the identities, sold them to others for additional money
According to plea documents, Anthony admitted that he placed dozens of false job postings on Craigslist for “customer service representative” and “reservation agent” positons with various airlines. He placed the ads on the local Craigslist site where the airline was based, including ads in Chicago for United Airlines; Orlando, Florida, for Air Tran Airways; and in New York City for JetBlue Airways. When contacted by prospective applicants, Anthony claimed to be a representative of the respective airline-employer. He explained the application process and then forwarded each applicant a job application that was on the respective company’s letterhead and appeared authentic.
Anthony admitted that he used the information that prospective applicants put on the applications he received, such as name, address, date of birth and Social Security number, to open accounts with various online wireless service and device providers, such as LetsTalk.com, Simplexity.com and Wirefly.com. He also purchased activated smartphones from these online retailers using these identities stolen from the job applications.
Anthony also purchased prepaid debit cards and registered them in the names of the stolen identities after loading a nominal amount of funds onto each card. He then used these debit cards to reserve hotel rooms throughout the country in the names of the stolen identities. He provided these hotel addresses as the residential address to the online phone retailer and instructed them to send the smartphones to that address. Once the phones were shipped, Anthony would call the hotel and cancel the reservation, explaining to the hotel representative that he was expecting a package and to forward it to his office in Irving. Anthony then sold the fraudulently-obtained phones for a fraction of their value.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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