Northern District of Texas
Press releases recorded for this federal judicial district.
Meth Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two Texas men and a woman from Florida have been sentenced to lengthy federal prison terms for their roles in a methamphetamine distribution conspiracy that operated in North Texas for approximately two years, announced U.S. Attorney John Parker of the Northern District of Texas.
James Gatlin, 40, of Garland, Texas, was sentenced on Friday afternoon by U.S. District Judge John McBryde to 320 months in federal prison. Matthew Ryan Thompson, 44, of Mineral Wells, Texas, was sentenced to 420 months. Celeste Monette Blair, 45, of Jacksonville, Florida, was sentenced to 360 months. Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
Five other defendants convicted in the case were recently sentenced to prison terms ranging from 250 to 480 months. The last defendant, Ismael Rico, 32, of Dallas, Texas, is scheduled to be sentenced later this month.
Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, Gatlin, Thompson and Blair admitted receiving multi-ounce quantities of methamphetamine from others in the conspiracy that they distributed to others.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
# # #
Two Convicted Felons Sentenced to More than 115 Years Each in Federal Prison Following Federal Jury Convictions on Hobbs Act and Firearms OffensesRead the Press Release
DALLAS — Two convicted felons from the Dallas area who were convicted by a federal jury at trial in July 2015 on an array of federal charges stemming from their armed robberies of several fast-food restaurants in the Dallas area in early 2014, were each sentenced today by U.S. District Judge David C. Godbey to more than 115 years in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesse Lee Bell, 33, of Duncanville, Texas, and Deundrae Lyndell Miller, 24, of Mesquite, Texas, were each sentenced to serve a total of 1384 months in federal prison and pay more than $8000 in restitution. Each was convicted on four counts of interference with commerce by robbery, one count of attempted interference with commerce by robbery; five counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, and one count of being a felon in possession of a firearm.
The defendants committed the following armed robberies in North Texas:
June 2, 2014 Whataburger, 501 E. Highway 67, Duncanville
June 4, 2014 Whataburger, 961 W. Beltline Rd., DeSoto
June 7, 2014 Whataburger, 3200 N. Town East Blvd., Mesquite
June 19, 2014 Jack-In-The-Box, 1020 W. Davis, Dallas
June 24, 2014 Whataburger, 2943 N. Galloway Avenue, Mesquite
In addition, the defendants, both convicted felons, each possessed a firearm on June 24, 2014.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Duncanville, DeSoto, Mesquite and Dallas Police Departments investigated.
Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller and Assistant U.S. Attorneys Andrew Wirmani and John Kull prosecuted.
# # #
Federal Indictment Charges 12 in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Twelve defendants have been charged in a federal indictment, partially unsealed on Friday, with felony offenses stemming from their role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Eleven defendants, all from the Lubbock, Texas, area, were arrested last Thursday in a joint operation by the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Texas Department of Public Safety, the Lubbock County Sheriff’s Office and the Lubbock Police Department. Those arrested made their initial appearances Friday afternoon before U.S. Magistrate Judge E. Scott Frost, and most remain in federal custody. Three defendants are set for detention hearings, and one defendant remains a fugitive.
In connection with the takedown, law enforcement seized approximately one kilogram of methamphetamine, 13 firearms, ammunition and several items of stolen property.
The indictment charges each of the following defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine:
Isabel Soto, 28
Veronica Sanchez Lopez, 37
Monty Fred Humble, 35
Martin Leonard Lomas, 34
Michael Brent Watson, 33
Joe Louis Lara, 29
Cruz Lee Betancur, 32
Richard Luke Elam, 49
Jonathon Christopher Chapa, 33
Christopher Ray Lovington, 29
Erica Dominguez, 36In addition, most of the defendants are charged with at least one substantive count of distribution and possession with intent to distribute methamphetamine and aiding and abetting. Defendant Joe Louis Lara is also charged with two firearms offenses – one count of possession of firearms in furtherance of a drug trafficking crime and aiding and abetting and one count of being a convicted felon in possession of firearms and aiding and abetting.
The indictment alleges that the defendants conspired with, among others, three recently-convicted/sentenced defendants who were sent by the Sinaloa Cartel, an international drug trafficking, money laundering, and organized crime syndicate, to Lubbock to facilitate the distribution of methamphetamine in Lubbock for the cartel. Each of these three below-listed defendants pleaded guilty last year to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting and was sentenced last month as follows:
Juan Carlos Pinales, 23, sentenced to 151 months in federal prison
Ramon Osvaldo Escobar-Robles, 25, sentenced to 78 months in federal prison
Jesus Mario Moreno-Perez, 24, sentenced to 120 months in federal prisonA federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries a maximum statutory penalty ranging from 20 years to life in federal prison and a $1 million to $10 million dollar fine. The other drug counts carry a maximum statutory penalty ranging from 20 years to life imprisonment. One firearm count carries a statutory penalty of not less than five years or more than life in federal prison and a $250,000 fine. The other firearm count carries a statutory penalty of not more than 10 years in federal prison and a $250,000 fine
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
# # #
Two Sentenced in Pill Mill CaseRead the Press Release
DALLAS — Two defendants who pleaded guilty to their roles in a pill mill operation they were involved in during parts of 2013-2014 have been sentenced.
U.S. Attorney John Parker announced that Shane Barron, 27, of Austin, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 37 months in federal prison, following his guilty plea in October 2015 to one count of unlawful use of a communication facility. Last Friday, January 22, co-defendant Tonya Sue Griggs, 34, of Dallas, was also sentenced by Judge Fitzwater to 37 months in federal prison. She pleaded guilty in August 2015 to the same offense.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Barron and Griggs, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies. Many of those defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the Barron case, on February 18, 2014, co-conspirator Cornelius Robinson told Barron, on a phone call, that he found a bottle of 154 pills in his kitchen cabinet that he had forgotten he had. Robinson told Barron that finding the pills was like finding free money. Barron estimated that the pills were worth $2,000, but the co-conspirator said $3,000. Barron then knew that the pills were 30 mg oxycodone and that the then-going rate for one 30 mg oxycodone pill was approximately $20. Barron admits he intended to obtain some of these oxycodone pills from Robinson to distribute to his own customers and admits that he used a cell phone to facilitate the conspiracy to distribute oxycodone. Robinson pleaded guilty in October 2015 to one count of conspiracy to distribute a controlled substance and is scheduled to be sentenced in April 2015. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the Griggs case, in a phone call on October 30, 2013, another co-conspirator instructed Griggs to recruit six new individuals to pose as patients to obtain prescriptions for hydrocodone from a clinic. The co-conspirator told Griggs he would pay her $15 per recruit. The next day, Griggs sent the co-conspirator a text stating she had six recruits, but three left before going to the clinic. Another co-conspirator picked up Griggs’ three recruits and transported them to McAllen Medical Clinic to obtain prescriptions.
Last week, however, a physician, Dr. Richard Andrews, 63, of Dallas, and pharmacists, Ndufola Kigham, 44, of Arlington, Texas, and Kumi Frimpong, 55, of Grand Prairie, Texas, were arrested on charges outlined in a superseding indictment that charged them with offenses related to their roles in the conspiracy. They are on bond; trial is set for June 2016. All three were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and pharmacists Kigham and Frimpong from dispensing controlled substances. Also, Kigham surrendered her stock of controlled substances that she had at her pharmacy to DEA.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters is prosecuting.
# # #
Mesquite Man Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Robert Bruce Lloyd, 76, of Mesquite, Texas, was sentenced this afternoon by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison, following his guilty plea in July 2015 to one count of receipt of child pornography. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
Lloyd has been in custody since his arrest in January 2015 on a related federal criminal complaint.
According to documents filed in the case, the FBI learned that a specific IP address, later identified as Lloyd’s, was downloading and sharing files indicative of child pornography. In January 2015, FBI special agents executed a search warrant at Lloyd’s residence and seized his computer and other media. A forensic analysis located more than 1000 images and videos of child pornography on Lloyd’s computer and other media. Lloyd admitted that he received and possessed images that included bondage and sadistic acts involving minors.
According to information presented during today’s sentencing hearing, Lloyd admitted that he had collected child pornography for 30 years. Judge Fitzwater noted that the child pornography was some of the worst he had ever seen, with some depicting sadistic acts done to children as young as three months old.
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 investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
# # #
Former Credit Union Employee Sentenced to 30 Months in Federal Prison and Ordered to Pay Nearly $800,000 in Restitution for Embezzling Funds from Pantex Federal Credit UnionRead the Press Release
AMARILLO, Texas — Dorothy Stegall Barnes, a/k/a “Dorothy Stegall Newman,” of Fritch, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 30 months in federal prison following her guilty plea in September 2015 to one count of embezzlement from a federally insured credit union, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Robinson also ordered that Barnes, 57, pay $797,336 in restitution. She must surrender to the Bureau of Prisons by February 15, 2016.
According to documents filed in the case, Barnes, who worked as the Assistant Vice-President of Teller Operations of the Pantex Federal Credit Union (PFCU) in Borger, Texas, admitted embezzling approximately $826,000 from the credit union.
In October 2014, Barnes advised the credit union’s President that a teller had suddenly quit. At the President’s request, she counted the teller’s vault and advised him that the vault was short $380,000. The vault was recounted, and the shortage was determined not to be a clerical error. An audit was conducted, and during the auditing process, the auditor identified a transaction traced to Barnes in which she transferred $826,000 to her teller vault. Barnes admitted taking the $826,000 over a number of years, but denied any involvement in the missing $380,000. She admitted embezzling money from PFCU in different ways and said she avoided detection by making various transactions to make her teller vault balance. PFCU officials located copies of the PFCU checks Barnes issued to pay her bills and other expenses between approximately 1996 and November 2010.
The FBI and Borger Police Department investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Dallas Man Sentenced to 216 Months in Federal Prison on Firearms and Drug Distribution ConvictionsRead the Press Release
DALLAS — Kerry Lynn Lewis, Jr., 26, of Dallas, who pleaded guilty last year to firearm and drug offenses, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 216 in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Lewis pleaded guilty in September 2015 to one count of being a felon in possession of a firearm, one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to plea documents filed in the case, in February 2014, officers with the Dallas Police Department executed a search warrant at a residence on McBroom Street in Dallas, where Lewis was exiting the residence’s side door as the officers arrived. During the search, officers found three firearms, one of which, a Ruger 9 millimeter pistol, was recovered from inside a wall in the guesthouse. Officers also recovered marijuana from the kitchen and Lewis’s bedroom in the main house and two bags of cocaine from the guesthouse. One of the firearms was reported stolen out of Dallas and one was reported stolen out of Mesquite, Texas. A forensic analysis of the drugs concluded it was a mixture or substance containing cocaine, with a net weight of 5.9 grams.
Prior to the date of the execution of that search warrant, Lewis had several felony convictions in Dallas County: 1) On March 10, 1998, Lewis was convicted and sentenced to two-years confinement for Unlawful Possession of a Cocaine; 2) On January 18, 2007, Lewis was convicted and sentenced to seven-months confinement for Unlawful Delivery of Cocaine; 3) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Delivery of a Controlled Substance; 4) On August 17, 2012, Lewis was convicted and sentenced to 30 days confinement for Unlawful Possession of Marijuana; 5) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Unlawful Possession of a Firearm by a Felon; and 6) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Retaliation.
Lewis also admitted that he possessed a Sig Sauer, Model P226, 9-millimeter pistol, a Keltec, Model P11, 9-millimeter pistol, and a Ruger, Model SR9c, 9-millimeter pistol in furtherance of a drug trafficking crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated.
# # #
Three Men Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Three North Texas men were sentenced this morning by U.S. District Judge Reed C. O’Connor to lengthy federal prison terms for their respective roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Winfred Morgan Trammel, 39, of Breckenridge, Texas, was sentenced to 262 months in federal prison. Co-conspirators Larry Hawkins, 59, of Wichita Falls, Texas, and Jackie Lynn Watters, 50, of Fort Worth, Texas, were each sentenced to 180 months in federal prison. Trammell was convicted at trial in September 2015 on one count of conspiracy to possess with the intent to distribute methamphetamine. Hawkins and Watters each pleaded guilty in October 2015 to the same offense.
At trial, the jury found that from before July 2014 to approximately June 2015, Trammel and others conspired together to possess with intent to distribute 50 grams or more of methamphetamine. According to plea documents filed in the case, since approximately 2014, Hawkins received more than 50 grams of methamphetamine from others charged in the indictment and distributed it to his customers in the Wichita Falls, Texas, area. Since approximately 2014, Watters assisted others in their distribution of methamphetamine by acting as a lookout or collecting drug proceeds.
A total of 29 defendants were charged in the case; 28 have been convicted, and most of those have been sentenced. Earlier this month, co-defendants Matthew Rutledge, 33, and Joel Prickett, 37, were sentenced to 324 months, and 160 months, respectively, in federal prison for their roles in the conspiracy.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
# # #
Meth Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two North Texas men have been sentenced to lengthy federal prison terms for their roles in a methamphetamine distribution conspiracy that operated in North Texas for approximately two years, announced U.S. Attorney John Parker of the Northern District of Texas.
Eric Summers, 40, of Arlington, Texas, and David Godinez, 35, of Balch Springs, Texas, were sentenced on Friday by U.S. District Judge John McBryde to 360 months and 250 months, respectively, in federal prison. Summers’ sentence is to be served concurrently with pending state cases.
Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, since approximately 2012, Summers and Godinez received methamphetamine from co-conspirators and distributed it to others. All nine individuals charged in the conspiracy have pleaded guilty; five have been sentenced to federal prison sentences ranging from 250 months to 480 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
# # #
First Defendant to be Sentenced in Methamphetamine Distribution Conspiracy is Sentenced to 292 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — The first defendant to be sentenced for his role in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, was sentenced this morning by U.S. District Judge Reed C. O’Connor to a lengthy federal prison term, announced U.S. Attorney John Parker of the Northern District of Texas.
James Anthony Streadwick, 54, of Wichita Falls, was sentenced to 292 months in federal prison. He pleaded guilty in October 2015 to one count of conspiracy to distribute five grams or more of methamphetamine. Eleven of the 13 defendants charged in the case have pleaded guilty to that offense; two defendants remain fugitives. Each defendant faces a statutory penalty of at least five years and up to 40 years in federal prison and $5 million fine. Sentencing hearings are set for February 22, 2016.
According to documents filed in Streadwick’s case, between September 2014 and December 3, 2014, Streadwick received quantities of methamphetamine from supply sources in Dallas and Wichita Falls, typically obtaining the methamphetamine in multi-ounce quantities. He then sold quantities of methamphetamine to customers in Wichita Falls.
Streadwick further admitted that on December 3, 2014, when a search warrant was executed at his residence, law enforcement seized digital scales, small plastic bags, notes that reflected drug-trafficking transactions, firearms and quantities of methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted the case.
# # #
Convicted Sex Offender Sentenced to 180 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — Erick Fernando Duarte, 59, of Garland, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 180 months in federal prison, following his guilty plea in August 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Duarte has been in federal custody since his arrest in May 2015.
According to documents filed in the case, in April 2014, a detective with the Garland Police Department received information from the National Center for Missing and Exploited Children (NCMEC) that child pornography had been uploaded to an AOL account by a specific AOL email user. Based on this, subscriber information, and information reported on his updated sex offender registry, Duarte was identified as the user.
A search warrant was secured and executed for Duarte’s residence and cell phone. A review of his cell phone and other media revealed that he had more than 1200 images of child pornography, including images of prepubescent children involved in sex acts, on his cell phone. Duarte admits that some of the images depicted sadistic and/or violent content.
Duarte was convicted in the 265th Judicial District Court of Dallas County, Texas, in October 1995, for the felony assault of Sexual Assault of a Child.
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.
# # #
Man Sentenced to 21 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
LUBBOCK, Texas — Joe Coleman, 47, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 21 months in federal prison, following his guilty plea in September 2015 to one count of failing to register as a sex offender, announced U.S. Attorney John Parker of the Northern District of Texas.
Coleman was sentenced on November 30, 2000, to 21 months in prison after he was convicted of Criminal Sexual Conduct in the Second Degree, in Anoka County, Minnesota. The conviction related to a sexual offense against a 10-year-old female. Coleman was released from prison on October 24, 2001, but thereafter was incarcerated during his conditional release period and served time in prison until June 23, 2009.
In 2009, Coleman came to Texas, and he has been residing in the Lubbock area since that time. He has also been employed in Lubbock for much of the time and was employed in Lubbock at the time of his arrest on July 23, 2015.
Based on this conviction, Coleman was a sex offender under the Sex Offender Registration and Notification Act (SORNA) and was required to register as a sex offender under state and federal law. Coleman, however, never registered in Texas as a sex offender, as required by the SORNA and he never appeared in person in any jurisdiction in which he was required to register to inform that jurisdiction of the changes in his status, as required, after he moved to Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated the case and Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Former Police Officer Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Brian Kelley of Quinlan, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, to be followed by a lifetime of supervised release, for possessing child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Kelley, 41, pleaded guilty in January 2015 to a superseding information charging one count of possession of child pornography. Today, Judge Fitzwater remanded him into federal custody.
According to documents filed in the case, Kelley admitted that in September 2013, he possessed a flash drive that contained still images and a video depicting a minor female engaged in sexually explicit conduct.
Kelley most recently worked as a UT Southwestern Police Officer. Prior to that, he was a deputy sheriff with the Hunt County Sheriff’s Office.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Flower Mound Police Department and the Texas Rangers investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Former Amarillo Resident Sentenced to 10 Years in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 10 years in federal prison following his guilty plea in November 2015 to one count of attempted sex trafficking of a child, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Ragsdale admitted that from approximately March 30, 2015 to April 3, 2015, he attempted to recruit a 15-year-old girl to engage in commercial sex acts.
The investigation began when a Task Force Officer (TFO) with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) learned that a particular individual, later identified as Ragsdale, was using Facebook to recruit and entice teenage females for prostitution. In March 2015, the TFO set up an undercover Facebook account representing himself as a 15-year-old female, “A.M.,” and the two exchanged messages about A.M. working as a prostitute, with Ragsdale claiming, “you can make 2500 in a week if you really put the work into it.” Ragsdale sent A.M. his phone number and the two discussed a meeting; however, the conversation ended without any arrangements being made.
On April 1, 2015, A.M. received a private message on his undercover Facebook account from “Deswan Newsome,” a defendant in a related case. Newsome and A.M. exchanged messages about A.M. engaging in prostitution, and A.M. advised Newsome that she was 15-years-old.
On April 2, 2015, an Amarillo Police Department officer, posing as A.M., made a phone call to Newsome, who answered, but turned the call over to a female who provided more details about prostitution to A.M. A.M. advised the female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and agreed to meet at a convenience store in Amarillo so A.M. could engage in prostitution. When Newsome arrived at the location he was identified and arrested. He admitted talking to A.M. on Facebook and said that he was going to have someone else teach her how to perform sex acts, and that he’d get 60 percent of the money she made for performing the commercial sex acts.
Newsome, 19, of Amarillo, pleaded guilty in July 2015 to one count of attempted sex trafficking of a child. He was sentenced in September to serve 135 months in federal prison.
The Amarillo Police Department and ICE HSI investigated. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
###
Federal Jury Convicts Corporate Executive for Lying to Federal Agents During Public Corruption Investigation Involving Dallas County CommissionerRead the Press Release
DALLAS — Following a nearly three-day trial in federal court in Austin, Texas before U.S. District Judge Sam Sparks, a federal jury convicted a corporate executive for lying to Special Agents of the Federal Bureau of Investigation in the public corruption investigation of Dallas County Commissioner John Wiley Price and others, announced 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.
Helena Tantillo, 59, of Austin, was an executive at BearingPoint when the firm won a contract in 2005 to digitize Dallas County records. The jury’s verdict today found Tantillo guilty on all counts of the indictment returned by an Austin federal grand jury in June 2015, which charged her with two counts of making false statements to law enforcement. She faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count, and will remain on bond pending sentencing, set for April 22, 2016, in Austin.
The evidence at trial showed 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 are conducting the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are handling the prosecution.
# # #
Dallas County Woman Sentenced to 57 Months in Federal Prison for Defrauding MedicaidRead the Press Release
DALLAS – Brenda Ward, 48, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 57 months in federal prison and ordered to pay $887,809 in restitution to Medicaid, following her guilty plea in July 2015 to one count of health care fraud. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
Judge Fitzwater ordered Ward to surrender to the Bureau of Prisons on March 8, 2016.
According to documents filed in the case, Ward, who was President and CEO of H.E.L.P.-Ing. Communities, Inc. (HCI), obtained a Medicaid group number for HCI and used that number, together with individual Medicaid provider numbers of licensed counselors and Medicaid recipient information, to submit fraudulent claims to Medicaid.
Ward, who is neither a psychotherapist nor a mental health provider, submitted claims for individual, family, and group psychotherapy sessions that were not performed. As part of her fraud scheme, Ward used the Medicaid provider numbers of four licensed counselors, without their knowledge and consent, to submit claims under the HCI group number for services that they did not perform. Ward also used the Medicaid provider information of a fifth licensed counselor who worked for her to submit claims for psychotherapy services that both predated and postdated the counselor’s actual employment with her, as well as claims for services that the counselor did not provide during the counselor’s employment. Ward used the identification of more than 290 Medicaid recipients, most of whom were minor children, in her scheme.
Ward admits that from January 1, 2009, through February 9, 2015, she personally submitted fraudulent claims to Medicaid and to Medicaid Managed Care Organizations, through HCI, totaling approximately $1,639,923; Ward was paid approximately $887,809 for these claims.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Assistant U.S. Attorney Douglas Brasher prosecuted.
# # #
Amarillo Man Sentenced to 240 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
AMARILLO, Texas — Alexander Jimenez, III, of Amarillo, Texas, was sentenced today by U.S. District Judge Mary Lou Robinson to 240 months (20 years) in federal prison following his guilty plea in August 2015 to one count of receiving a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Following the sentencing, Judge Robinson remanded Jimenez, 28, into custody.
According to documents filed in the case, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Amarillo Police Department began the investigation after APD received information that an individual, later identified as Jimenez, had uploaded images of child pornography.
In early February 2014, a search warrant was executed at Jimenez’s residence and a laptop computer, located in Jimenez’s bedroom, was seized. A forensic analysis of that computer revealed that it contained approximately 4,389 images, and 291 videos, of child pornography.
Jimenez admitted using the computer to receive, trade and view child pornography. He admitted sharing more than 1,000 files of child pornography on the Internet.
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.”
Assistant U.S. Attorney Joshua Frausto prosecuted the case.
# # #
Local Doctor and Pharmacist Arrested in Pill Mill InvestigationRead the Press Release
DALLAS — A local doctor and pharmacist were arrested yesterday morning on federal charges stemming from their respective roles in a conspiracy to distribute controlled substances illegally, including oxycodone and hydrocodone, in a pill mill operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Special agents with the Drug Enforcement Administration arrested Dr. Richard Andrews, 63, of Dallas; Muhammad Faridi, 39, of Murphy, Texas; Adrian Banks, 22, of Dallas; and pharmacist Ndufola Kigham, 44, of Arlington, Texas. Each is charged in a just-unsealed second superseding indictment with one count of conspiracy to distribute a controlled substance.
Each made his initial appearance yesterday afternoon in federal court in Dallas. After agreeing to surrender their DEA registration numbers, Dr. Andrews and pharmacist Kigham were released on bond. Surrendering their registration numbers prevents Dr. Andrews from issuing prescriptions for controlled substances and pharmacist Kigham from dispensing controlled substances. Faridi and Banks were detained pending hearings set for tomorrow, Friday, January 22, at 1:00 p.m.
This indictment also charges Brandon Dunbar, 32, of Houston; Kumi Frimpong, 55, of Grand Prairie, Texas; and Lee Robertson, 31, presently in state custody in Louisiana; with the same offense. In addition, Banks, Dunbar and Robertson are also each charged with one count and Frimpong with two counts, of unlawful use of a communication facility.
Numerous other defendants were charged in the conspiracy in previous indictments. Five have pleaded guilty, and the remainder are set for trial on June 16, 2016.
According to the second superseding indictment, returned earlier this month by a grand jury in Dallas, Andrews is a doctor of osteopathy and co-owner and supervising physician of McAllen Medical Clinic, located on South Hampton in Dallas. Frimpong and Kigham are licensed pharmacists. Frimpong is the owner, operator, and pharmacist in charge of Cornerstone Pharmacy, located on Bolton Boone in Desoto, Texas. Kigham is the owner, operator, and pharmacist in charge of GenPharm Pharmacy, located on Wheatland Road in Desoto.
The indictment alleges that from approximately January 2013 through July 2014, Andrews, Banks, Dunbar, Faridi, Frimpong, Kigham, Robertson, and others previously charged in the indictment, conspired to possess with intent to distribute, distribute, and cause to be distributed, oxycodone, a Schedule II controlled substance, and hydrocodone, a Schedule III controlled substance, without a legitimate medical purpose and not in the usual course of professional practice.
As part of the conspiracy, individuals who were homeless, or of limited means, were recruited to pose as patients at certain medical clinics to obtain prescriptions for oxycodone and hydrocodone and fill those prescriptions at designated pharmacies. The recruits were typically paid a fee, such as $30. Recruiters would organize the recruits so that another individual would pick them up and transport them to and from the clinics. The drivers or the script ringleader would typically pay the recruiters a small fee, such as $15, for each person they recruited. Drivers or script ringleaders would coach recruits on what to say inside the clinic to obtain the specified prescription. Drivers or script ringleaders paid for the recruits’ clinic visits.
Further, the indictment alleges as part of the conspiracy, that specific clinics attempted to minimize the possibility of detection by law enforcement by limiting patients to recruits accompanied by known and trusted drivers, and the clinics attempted to maximize their profits by providing the prescriptions sought by the script ringleaders, such as 30mg oxycodone. The clinics provided the oxycodone prescriptions by hiring medical practitioners willing to write them even though the clinic owners, managers, and practitioners knew they were not issued for a legitimate medical purpose in the usual course of professional practice. To avoid detection by law enforcement, clinic owners and managers, script ringleaders, drivers, and recruits, concealed and assisted others in concealing the illicitly issued nature of the prescriptions, the quantities of controlled substances obtained and distributed and the amount of the drug proceeds.
The driver or script ringleader transported the recruits and prescriptions, or just the prescriptions, to designated pharmacies to be filled and paid for the prescriptions. Drivers would then deliver the controlled substances to the script ringleaders who distributed and dispensed, and possessed with intent to distribute and dispense, oxycodone and hydrocodone.
Dr. Andrews wrote and issued prescriptions for 30mg oxycodone pills without conducting medical exams, and for which he knew there was not legitimate medical purpose and outside the usual course of professional practice. Faridi ensured script ringleaders had access to McAllen and could obtain the prescriptions they sought. Faridi also filled out prescriptions for 30mg oxycodone pills and obtained Andrews’s signature on them.
The indictment also alleges that between January 2013 and July 2014:
Dr. Andrews and Faridi distributed and caused to be distributed at least 150,000 30mg oxycodone pills by issuing prescriptions knowing that the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice;
Frimpong distributed and dispensed from Cornerstone Pharmacy at least 40,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice; and
Kigham distributed and dispensed from GenPharm Pharmacy at least 70,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice.
An indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for the conspiracy offense is 20 years in federal prison and a $1 million fine. The statutory maximum penalty for each of the unlawful use of a communication facility counts is four years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit approximately $20,000 seized by the Drug Enforcement Administration.
The Drug Enforcement Administration is conducting the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
# # #
Dallas Securities Broker Sentenced to 36 Months in Federal Prison on Securities Fraud ConvictionRead the Press Release
DALLAS — Wade Lawrence, 43, of Dallas, a securities broker, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 36 months in federal prison, following his guilty plea in September 2015 to a felony Information charging one count of securities fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lynn also ordered that Lawrence pay $1,542,966 in restitution and forfeit $126,074 in proceeds traceable to the offense, in the form of a money judgment, representing the proceeds from the sale of his residence. He was ordered to surrender to the Bureau of Prisons on March 15, 2016.
According to documents filed in the case, from June 2008 through July 2011, Lawrence worked as a securities broker by Oppenheimer & Co. Inc., in Dallas and was active in conducting trades in his customer brokerage accounts. In 2010 and 2011, Lawrence began to lose significant amounts of money, both in his clients’ trading accounts and his individual trading account. In August 2011, Lawrence moved to Southwest Securities in Dallas, where his trading losses continued.
Beginning in January 2012 and continuing through September 2013, Lawrence engaged in a scheme to defraud to obtain funds from individuals, with whom many he had longstanding personal and business relationships and who trusted him. He falsely offered for sale various investments, including real estate ventures and securities outside the brokerage accounts at Southwest Securities. He also offered interests in what he represented were a high-risk investment in options on the Volatility Index (VIX) on the Chicago Board Options Exchange.
Lawrence also solicited funds from several individuals by falsely representing they would be invested in a duplex. He falsely represented to other investors that their money would be invested in various securities such as in Facebook and Southwest Securities.
Lawrence represented to investors that their investments would return anywhere from 20 to 100 percent, and that it was possible to double their investment. In each case, he directed the investor to mail or wire-transfer funds to his personal account at Wells Fargo Bank, instead of a Southwest Securities account, giving various explanations for this, including that he was trying to start his own VIX fund and needed to establish a history for the fund.
Lawrence, however, only invested some of the investors’ money as represented. Instead, he spent several hundred thousand dollars of the proceeds for personal living expenses, including travel, mortgage payments on his Dallas residence, and a $10,000 piece of jewelry. In total, Lawrence obtained approximately $2,124,000 from the scheme. He returned approximately $581,034 to some of the investors.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
# # #
Registered Nurse Co-Owner of Ultimate Care Home Health Services, Inc. Sentenced to 10 Years in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — A 52-year-old registered nurse and home health company owner from Cedar Hill, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Patricia Akamnonu was sentenced by U.S. District Judge Sam A. Lindsay to the statutory maximum sentence of 10 years in federal prison. She pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. Patricia Akamnonu, along with her husband, Cyprian (Cy) Akamnonu, owned Ultimate Care Home Health Services, Inc. (Ultimate). Cy Akamnonu pleaded guilty to the same offense and is currently serving a 10-year federal prison sentence. Both were ordered to pay approximately $25 million in restitution.
According to the filed factual resume, Patricia Akamnonu maintained a valid Medicare group provider number for Ultimate in order to submit Medicare claims for home health services that were medically unnecessary or that were not provided to Medicare beneficiaries.
In her capacity as co-owner and head of nursing for Ultimate, Patricia Akamnonu attended at least one meeting where she and co-defendants Dr. Jacques Roy, Teri Sivils and Cy Akamnonu discussed recruiting additional Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. This meeting also included a discussion about illegal patient recruiting being performed by co-defendants James Veasey and Cynthia Stiger.
As part of the conspiracy, Ultimate exchanged paperwork with Medistat Group Associates, P.A. (Medistat) that was controlled by Dr. Roy for these beneficiaries. These documents were then executed under Dr. Roy’s signature, certifying the patient was under his care. Several of the documents used to certify home health care for these individuals are signed under the name of Patricia Akamnonu.
Over the course of a five-year period, from January 2006 through November 2011, more than 78% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $43 million to Medicare for skilled nursing services for these beneficiaries.
Of the seven defendants who were charged in the $375 million health care fraud scheme led by Dr. Roy, three defendants have now pleaded guilty. Teri Sivils, 47, of Midlothian, Texas, who was Medistat’s office manager, pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine; sentencing is currently set for March 7, 2016.
A March 7, 2016, trial date has also been set for the remaining defendants, Dr. Roy, Cynthia Stiger, 51, of Dallas, Wilbert James Veasey, Jr., 63, of Dallas, and Charity Eleda, R.N., 54, of Rowlett, Texas,
The case is being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit 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 and Special Assistant U.S. Attorney Nicole Dana are prosecuting.
# # #
Lubbock, Texas, Woman Sentenced to 6 Months in Federal Prison for Making False Statements to U.S. MarshalsRead the Press Release
LUBBOCK, Texas — Maria Guadalupe Baltazar, 37, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 6 months in federal prison, following her guilty plea in September 2015 to one count of making a false statement to a government agency, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Baltazar admitted to lying to U.S. Marshals about the whereabouts of a multi-time convicted felon. On June 26, 2015 federal agents learned of a felon sentenced to a term of incarceration of 235 months who was mistakenly released from custody and who had fled the area. Baltazar was subsequently questioned about the whereabouts of this man, and was untruthful with U.S. Marshals about her knowledge as to the man’s whereabouts and about her involvement. Baltazar must surrender to the Bureau of Prisons on February 19, 2016.
United States Marshals investigated the case. Assistant U.S. Attorney Myria Boehm of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
# # #
Amarillo Men Sentenced to Lengthy Federal Prison Sentences for Trafficking Large Quantity of Liquid MethamphetamineRead the Press Release
AMARILLO, Texas — Two Amarillo, Texas, men, who admitted trafficking a large quantity of liquid methamphetamine, have been sentenced by U.S. District Judge Mary Lou Robinson to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Damian Erik Alcala, 37, was sentenced to 324 months in federal prison to run consecutively to the 37-month sentence he received for his supervised release revocation. In mid- December 2105, Richard Madrigal, 42, was sentenced to 262 months in federal prison to run consecutively to the 12-month sentence he received for his supervised release revocation. Each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine. Both have been in federal custody since their arrest last summer on a related federal criminal complaint.
According to documents filed in the case, law enforcement learned that a green Chevy Blazer, with Chihuahua registration, was to arrive in Amarillo from El Paso, Texas, and that the vehicle was transporting a methamphetamine solution concealed in its fuel tank. On July 17, 2015, law enforcement observed Alcala, driving a white Toyota Camry, and Madrigal, driving a green Chevy Blazer, arrive at a residence on Houston Street in Amarillo. Shortly thereafter, both left the residence in the white Camry. Several minutes later, they returned to the residence and Madrigal left in the white Camry. When officers with the Amarillo Police Department arrived to secure the residence, Alcala fled on foot. Officers with the Amarillo Police Department apprehended Madrigal and brought him back to the residence.
During the subsequent execution of a search warrant at the residence, law enforcement found three Tupperware containers containing crystal methamphetamine in the kitchen. Two semi-automatic pistols were also found in the residence.
When law enforcement searched the green Chevy Blazer that was parked in the garage, they removed its fuel tank and extracted approximately 84 pounds of liquid methamphetamine from the fuel tank.
The Drug Enforcement Administration, the Amarillo Police Department, the Federal Bureau of Investigation and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Three Methamphetamine Distributors Sentenced to Lengthy Federal Prison TermsRead the Press Release
FORT WORTH, Texas — Three methamphetamine distributors were sentenced today to lengthy federal prison sentences, announced U.S. Attorney John R. Parker of the Northern District of Texas.
U.S. District Judge John McBryde sentenced Angela Cupit, 41, to 360 months in federal prison, Shawn Travis Cathey, 44, to 360 months in federal prison, and Phillip Schenck, 41, to 480 months in federal prison. Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
Each of the six below-listed co-defendants also pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and have sentencing dates scheduled for later this month. Each faces a statutory penalty of not less than 5 years and up to 40 years’ imprisonment in federal prison and a $5 million fine.
Eric Summers, 40, of Arlington, Texas
James Gatlin, 40, of Garland, Texas
David Godinez, 35, of Dallas, Texas
Ismael Rico, 32, of Dallas, Texas
Matthew Ryan Thompson, 44, of Mineral Wells, Texas
Celeste Monte Blair, 45, of Jacksonville, Florida
Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, and the Texas Department of Public Safety were in charge of the investigation.
Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
# # #
Mexico Man Sentenced to 240 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS, Texas — Alvaro Valencia-Sanchez, 29, from Apatzingan, Michoacan, Mexico, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 240 months in federal prison following his guilty plea in July 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Valencia-Sanchez’s co-defendant in the case, Francisco Landa-Bravo, 41, also from Apatzingan, Michoacan, Mexico, pleaded guilty in August 2015 to the same offense. He was sentenced to 121 months in federal prison.
According to documents filed in the case, on May 26, 2015, law enforcement officers conducted a controlled buy and purchased five kilograms of methamphetamine from the codefendant Francisco Landa-Bravo. The agents then searched the home belonging to Alvaro Valencia-Sanchez after it was identified as a “stash house” and found another 35 kilograms of methamphetamine, a clandestine laboratory, two firearms, and $68,441.
The Drug Enforcement Administration, Allen Police Department, Garland Police Department, and Rockwall Police Department investigated the case. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
# # #
Inmate Sentenced to Serve an Additional 77 Months in Federal Prison for Mailing Threat Letter to Federal JudgeRead the Press Release
LUBBOCK, Texas — An inmate in state custody on unrelated offenses, Dillon Alex Steele, was sentenced today by Senior U.S. District Judge Sam R. Cummings to serve an additional 77- month sentence in federal prison for mailing a threatening letter to a federal judge last year, announced U.S. Attorney John Parker of the Northern District of Texas.
Steele, 31, pleaded guilty in September 2015 to one count of mailing threatening communications.
According to the factual resume filed in the case, on April 11, 2014, an employee in the Amarillo, Texas, office of U.S. District Judge Mary Lou Robinson received a letter from Steele that was addressed to Judge Robinson and postmarked the previous day. In the letter, the writer stated, in part, “…I’m gonna kill everyone at the courthouse, and the federal building, I’m gonna blow everything up sky high, may-be after nothing but death and destruction someone will listen then!”
Steele admitted he wrote the letter but that he did not intend to carry out his threats, but just call Judge Robinson’s attention to perceived civil rights violations at the Potter County Jail. Steele’s DNA and fingerprints were on the letter and envelope.
The FBI investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
# # #
Crockett County, Texas, Man Sentenced to 210 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Felipe Martinez Ramirez, 48, of Ozona, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 210 months in federal prison, following his guilty plea in September 2015 to one count of producing child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Ramirez enticed a minor female to engage in sexually explicit conduct with him at a residence in Ozona, and he used a cell phone to record that conduct reflected in a bathroom mirror.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Crockett County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Fort Worth Men Sentenced to Lengthy Federal Prison Sentences for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Two Fort Worth, Texas, area men were sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve lengthy federal prison sentences for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Matthew Rutledge, 33, was sentenced to 324 months in federal prison, and Joel Prickett, 37, was sentenced to 160 months in federal prison. Each pleaded guilty last year to one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
According to documents filed in the case, since approximately 2014, Rutledge and Prickett distributed methamphetamine to others. A total of 29 defendants were charged in that case; 28 have been convicted, and most of those have been sentenced.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
# # #
Fort Worth Man Sentenced to 210 Months in Federal Prison for Distributing Child PornographyRead the Press Release
FORT WORTH, Texas — Erick Mayorga, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 210 months in federal prison, following his guilty plea in June 2015 to one count of distribution of a visual depiction of a minor engaged in sexually explicit conduct. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Mayorga, 36, has been in custody since his arrest in May 2015 on a related federal criminal complaint.
According to documents filed in the case, FBI special agents received information that the subject of a separate child pornography investigation had received child pornography via email from a specific hotmail.com email user, later determined to be Mayorga. A search warrant was executed at Mayorga’s residence in early May 2015, and Mayorga admitted that he used his email account to distribute child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated and Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Dallas Man Sentenced to Serve a Total of 326 Months in Federal Prison for Sex Trafficking a Developmentally Disabled Teenage GirlRead the Press Release
DALLAS — Kenneth Laray White, 26, of Dallas, was sentenced this morning by U.S. District Judge David C. Godbey to serve a total of 326 months in federal prison on felony convictions stemming from a plan to recruit a developmentally disabled teenage girl to engage in commercial sex acts, announced U.S. Attorney John Parker of the Northern District of Texas.
Kenneth White pleaded guilty in March 2015 to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one count of being a felon in possession of a firearm. Kenneth White’s brother, Damion Kentrell White, 24, who was also charged, pleaded guilty to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one count of illegal receipt of a firearm by a person under indictment. Damion White is scheduled to be sentenced later this month.
A February 2016 trial date is currently set for the other defendant charged in the case, their cousin, Mecose Mendale Shorter, 31, also of Dallas, who is also alleged to have participated in the scheme to traffic the victim.
According to documents filed in the case, Kenneth and Damion White knew the victim since she was 15 years old. When she was 18 years old, they devised a plan to recruit her to engage in commercial sex acts for them by taking advantage of her diminished mental capacity. In late June 2013, Damion White established a friendship with the victim, and then, in early July of 2013, he used false pretenses to convince her to leave her home with him.
Later that night, Kenneth and Damion White drove the victim to a motel in Dallas where Damion White had rented a room. Kenneth White used his cell phone to take provocative photos of the victim that they later used in advertisements they posted on backpage.com. They deprived her of food and prevented her from leaving the room to encourage her to engage in commercial sex acts for them. Kenneth White had sex with the victim, and the victim eventually engaged in commercial sex acts and provided the money she earned to Kenneth White. Kenneth and Damion White used the Internet and a cell phone to coordinate the victim’s commercial sex acts with potential customers.
Later, Kenneth and Damion White moved the victim to another motel in Dallas where they continued to compel her to engage in commercial acts during the latter part of July 2013. Officers with the Dallas Police Department rescued the victim from this motel on July 22, 2013.
Kenneth and Damion White were arrested on federal sex trafficking charges on February 25, 2014. Kenneth White was found at his girlfriend’s apartment, and during a protective sweep of the apartment, agents located a Romar/Cugir 7.62 caliber rifle, along with three extended magazines under the mattress in the master bedroom. Damion White admitted that he had possessed firearms recently, including the firearm that Kenneth White was caught with that day. Damion White further admitted that he had been under indictment for a felony marijuana case for quite some time.
Today is National Human Trafficking Awareness Day. Join us in fighting modern-day slavery: http://go.usa.gov/cnADj and learn how to recognize the signs: http://go.usa.gov/cnADH
The North Texas Trafficking Taskforce, including the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department, investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
# # #
Three Methamphetamine Distributors for Sinaloa Cartel Sentenced to Lengthy Federal Prison TermsRead the Press Release
LUBBOCK, Texas — Three men who were sent by the Sinaloa Cartel to Lubbock, Texas, to distribute methamphetamine for the cartel were sentenced this morning to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Senior U.S. District Judge Sam R. Cummings sentenced Juan Carlos Pinales, 23, to 151 months in federal prison, Ramon Osvaldo Escobar-Robles, 25, to 78 months in federal prison, and Jesus Mario Moreno-Perez, 24, to 120 months in federal prison. Each pleaded guilty last year to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting. Escobar-Robles and Moreno-Perez are in the U.S. illegally.
According to documents filed in the case, a joint investigation by the FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety (DPS), the Lubbock County Sheriff’s Office and the Lubbock Police Department revealed that the Sinaloa cartel had sent three individuals to Lubbock to distribute methamphetamine for the cartel. In June 2015, a search warrant was executed at their residence on Birch Avenue in Lubbock.
At the time the warrant was executed, the three defendants were home. The search by law enforcement yielded several containers or bags of suspected methamphetamine in the attic, to include: two red Tupperware containers that contained a total of approximately 5.06 pounds of suspected methamphetamine, 19 clear plastic bags that contained a total of approximately 1.42 pounds of suspected methamphetamine, two clear plastic bags that contained a total of approximately 17.2 grams of suspected methamphetamine, and one clear plastic bag that contained approximately 31.2 grams of suspected methamphetamine; as well as a black pouch that contained approximately $3,783 in cash; numerous cell phones; money transfer receipts; and a spiral notebook that contained writings consistent with a drug ledger, showing amounts distributed to and owed by various persons.
A DPS crime laboratory analysis confirmed that the substance in the two red Tupperware containers was, in fact, methamphetamine with a net weight of 1,797.92 grams and a purity level of at least 91.7%. All three defendants admitted they jointly possessed the methamphetamine found in the attic.
Assistant U.S. Attorney Jeffrey Haag prosecuted the case.
# # #
Lubbock Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Jacob Seth Thornton, 29, of Lubbock, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in September 2015 to one count of receiving a visual depiction of a minor engaged in sexually explicit conduct. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings ordered Thornton to surrender to the Bureau of Prisons on February 12.
According to plea documents filed in his case, Thornton kept a laptop at his residence that he used to, among other things, search the Internet for images and videos depicting minors engaged in sexually explicit conduct. Thornton used peer-to-peer file sharing software to receive the seven images described in the indictment, as well as many others.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
# # #
Wichita Falls Man Sentenced to Statutory Maximum of 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Joshua Antonio Ramirez, a Wichita Falls, Texas, man who admitted his role in a methamphetamine distribution conspiracy, was sentenced Monday to the statutory maximum sentence of 20 years in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ramirez, 30, pleaded guilty in September 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. His co-defendant, Doty Lee Standridge, 31, also of Wichita Falls, pleaded guilty to the same offense and was sentenced in October 2015 to 110 months in federal prison.
According to documents filed in the case, between February and August 2013, Ramirez supplied quantities of methamphetamine – ranging from1/4 ounce to one pound – to numerous individuals in the Wichita Falls area, including Standridge. Ramirez received and distributed the methamphetamine in the Wichita Falls area and elsewhere.
The case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney Mary Walters prosecuted.
# # #
Wichita Falls Man Sentenced to 189 Months in Federal Prison on Methamphetamine ConvictionsRead the Press Release
WICHITA FALLS, Texas — A Wichita Falls man, Matthew Taylor Lawrence, 25, has been sentenced by U.S. District Judge Reed C. O’Connor to 189 months in federal prison, following his guilty plea in August 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, on May 9, 2015, at approximately 7:30 p.m., officers with the Wichita Falls Police Department, in a marked patrol car, attempted to stop Lawrence, who was driving a motorcycle and exceeding the speed limit. Lawrence pulled into a driveway, left the motorcycle and fled on foot. As he was running away, officers saw him drop a firearm in the front yard of a nearby residence. Officers caught up with Lawrence and took him into custody. He had a small backpack that contained approximately 212 grams of methamphetamine contained in four plastic bags. Officers also later recovered the Glock 9mm caliber pistol that Lawrence had dropped.
The Wichita Falls County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted.
# # #
Cocaine Trafficker Sentenced to 18 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Jesus Garcia, 42, has been sentenced by U.S. District Judge Sam A. Lindsay to 218 months in federal prison for his role in a cocaine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Garcia pleaded guilty in 2014 to one count of conspiracy to possess with intent to distribute cocaine base. A total of 19 defendants were charged in the conspiracy; most have been convicted and sentenced to prison terms ranging from 18 months to 20 years in federal prison.
According to documents filed in the case, during the course of the investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) intercepted telephone calls of several of the conspirators, including Garcia. Garcia admits that on numerous occasions he used various cell phones to contact co-conspirators to coordinate the distribution of quantities of crack and powder cocaine. Garcia is responsible for the distribution of 1,054.64 grams of crack cocaine and 3,022.48 grams of powder cocaine during the course of the conspiracy.
ICE HSI and the Dallas Police Department’s Gang Unit investigated. Assistant U.S. Attorney Cara Pierce prosecuted.
# # #
Search Engine Optimizer Sentenced to More than Three Years in Federal Prison for Extorting Money from a Local Merger and Acquisitions FirmRead the Press Release
DALLAS, Texas — William Stanley, 53, a/k/a “William Laurence,” “Bill Stanley,” “William Davis,” “William Harris,” and “William L. Stanley,” was sentenced yesterday by U.S. District Judge David C. Godbey to 37 months in federal prison for attempting to extort money from a business in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas. The court also ordered Stanley to pay $174,888 in restitution to a dozen identified victims of Stanley’s extortive conduct, including the Dallas-based firm, GE.
Stanley and his sister, Lynn Faust, a/k/a “Lynn Michaels,” were indicted in 2014, and Stanley pleaded guilty last month to one count of Hobbs Act – Extortion. Faust, 55, who was arrested in Sweden in May 2014, pleaded guilty in July 2015 to a Superseding Information charging one count of receiving the proceeds of extortion and aiding and abetting. She faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Her sentencing is set for February 1, 2016, before Judge Godbey.
Stanley, although a U.S. citizen, most recently resided in Romania with his wife, a Romanian national. In 2013, he traveled several times between Europe and the United States. On March 3, 2014, he was arrested on a related federal criminal complaint at George Bush Intercontinental Airport in Houston, where he arrived on a flight from Europe. He has been in custody since that time.
Faust assisted Stanley in operating his search engine optimization (SEO) company. A legitimate SEO business engages in standard practices such as optimizing the underlying HTML code on a website for certain keywords that a search engine indexer, (e.g., a web crawler for Google, Bing, etc.) would associate with a given search query. An illegitimate SEO business engages in deceptive tactics to affect search engine rankings and the volume of results. Such deceptive tactics include creating fraudulent reviews (good or bad), creating fictitious websites, or hiding text on websites.
While Stanley engaged in some legitimate SEO work, he also engaged in illegitimate and illegal SEO activities. Stanley also extorted individuals and companies by threatening to engage in the illegitimate SEO work, that being posting fraudulent comments and creating negative reviews online, if the victim did not pay him a certain sum of money.
In November 2009, GE entered into a contract with Stanley for SEO services and reputation management. Stanley was hired because of his ability to improve a firm’s online reputation through search results. After approximately one year, however, GE sought to terminate its relationship with Stanley after it determined he had acted outside of his contracted duties. Stanley also created websites that had the ability to damage GE’s reputation by associating GE with a scam. Stanley demanded additional payments to end his contractual relationship with GE and to surrender the administrator rights to the websites to GE. From November 2010 through January 2011, GE paid Stanley a total of $80,000 to terminate the relationship.
Posing as “William Davis” and “William Laurence,” Stanley transmitted threatening communications, via email and telephone, from foreign countries to GE in the Northern District of Texas. Those communications threatened to post comments on the Internet wrongfully disparaging GE’s reputation, if GE did not send money to Stanley.
Because of Stanley’s threats to harm GE’s reputation through negative Internet posts that would adversely affect GE’s ability to conduct business if it failed to send money, GE responded to the wrongful inducement by sending four payments totaling $29,556 by MoneyGram to Stanley in Brasov, Romania.
According to the factual resume, the government could readily prove that Stanley’s extortive conduct caused GE to make the above payments and to lose revenue. The extortive conduct also affected interstate commerce. In addition, the government contended that it could readily prove that Stanley engaged in similar extortionate conduct with approximately 40 to 45 victims (including GE).
The FBI investigated the case and Assistant U.S. Attorney C.S. Heath prosecuted.
# # #
Former Youth Minister Sentenced to Serve 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
WICHITA FALLS, Texas — Ryan Anthony Winner of Olney, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 720 months (60 years) in federal prison, following his guilty plea in September 2015 to two counts of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Winner, 34, has been in custody since his arrest in July 2015 on a related federal complaint.
According to documents filed in the case, the investigation began when law enforcement learned that an individual, later identified as Winner, had created albums containing images of a minor male on a website that is used by persons interested in exchanging child pornography in order to meet and become child pornography trading partners.
On July 16, 2015, law enforcement executed a search warrant at two residences in Olney – one belonging to Winner and the other to his father. Law enforcement seized Winner’s laptop and identified several files depicting a nude, prepubescent minor male victim, whom Winner admitted he had taken on a camping trip where he and the minor male victim had gone “skinny dipping.” A forensic analysis of the laptop revealed the existence of another file, a still image of the same minor victim engaged in sexually explicit conduct with an adult male. That image appears to have been taken at the church where Winner worked as a youth minister.
Winner admitted that in late May 2015, he used a laptop computer to produce a video of a minor male whom he had enticed to engage in sexually explicit conduct. He also admitted that in August 2014, he used a laptop computer and a digital camera to produce a visual depiction of the same minor male engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety investigated. Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Dallas-Based Home Heath Company Owners and Nurses Charged for Roles in $13.4 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – The co-owners of a home health company in Dallas and two nurse employees were charged in an indictment unsealed yesterday for their alleged participation in a $13.4 million health care fraud scheme involving fraudulent claims for home health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas, Special Agent in Charge CJ Porter of the Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Patience Okoroji, 57, Usani Ewah, 58, Kingsley Nwanguma, 45, all of Dallas County, Texas, and Joy Ogwuegbu, 39, of Collin County, Texas, were each charged with one count of conspiracy to commit health care fraud. In addition, Okoroji and Ewah are each charged with five counts of health care fraud; Nwanguma is charged with three counts of health care fraud and Ogwuegbu is charged with four counts of health care fraud.
Ewah, Nwanguma and Ogwuegbu were arrested yesterday and made their initial appearances before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. Okoroji was also arrested yesterday and will have her initial appearance today.
Okoroji and Ewah co-owned Timely Home Health Services Inc. (Timely), where Okoroji was also an administrator and licensed vocational nurse and Ewah was the director of nursing and a registered nurse. Nwanguma was a licensed vocational nurse working for Timely and Ogwuegbu was a registered nurse working for Timely.
The indictment alleges that from approximately January 2007 to September 2015, the defendants conspired to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the allegations, Okoroji and Ewah would in some cases pay recruiters, including Nwanguma, to recruit beneficiaries for home health services, regardless of whether the beneficiaries needed home health care. Okoroji, Ewah and Ogwuegbu allegedly prepared or caused to be prepared fraudulent Medicare documents that made it appear that the beneficiaries qualified for home health services. These documents were used by doctors to certify Medicare beneficiaries for home health care.
The indictment alleges that during the scheme, Okoroji and Ewah billed Medicare approximately $13,434,550 based on false and fraudulent claims for home health services.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG, FBI and the Texas Attorney General’s MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Texas. Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
# # #
Search Engine Optimizer Admits Extorting Money from a Local Merger and Acquisitions FirmRead the Press Release
DALLAS, Texas — A man, who, along with his sister, was indicted last year on felony offenses stemming from their attempts to extort money from a business in Dallas, pleaded guilty in federal court today, announced John Parker, U.S. Attorney for the Northern District of Texas.
William Stanley, 53, a/k/a “William Laurence,” “Bill Stanley,” “William Davis,” “William Harris,” and “William L. Stanley,” pleaded guilty today to one count of Hobbs Act – Extortion. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for January 4, 2016, before U.S. District Judge David C. Godbey.
Stanley, a U.S. citizen, most recently resided in Romania with his wife, a Romanian national. In 2013, he traveled several times between Europe and the United States. On March 3, 2014, he was arrested on a related federal criminal complaint at George Bush Intercontinental Airport in Houston, where he arrived on a flight from Europe. He has been in custody since that time.
Stanley’s sister, Lynn Faust, a/k/a “Lynn Michaels,” 55, was arrested in Sweden in May 2014. Ms. Faust was extradited and appeared in court in the Northern District of Texas on October 16, 2014. On October 21, 2014, the government withdrew its motion to detain, and the Court released Faust on conditions of release. She pleaded guilty in July 2015 to a Superseding Information charging one count of receiving the proceeds of extortion and aiding and abetting. She faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Her sentencing is set for February 1, 2016, before Judge Godbey.
Faust assisted Stanley in operating his search engine optimization (SEO) company. A legitimate SEO business engages in standard practices such as optimizing the underlying HTML code on a website for certain keywords that a search engine indexer, (e.g., a web crawler for Google, Bing, etc.) would associate with a given search query. An illegitimate SEO business engages in deceptive tactics to affect search engine rankings and the volume of results. Such deceptive tactics include creating fraudulent reviews (good or bad), creating fictitious websites, or hiding text on websites.
While Stanley engaged in some legitimate SEO work, he also engaged in illegitimate and illegal SEO activities. Stanley also extorted individuals and companies by threatening to engage in the illegitimate SEO work, that being posting fraudulent comments and creating negative reviews online, if the victim did not pay him a certain sum of money.
In November 2009, a Dallas-based firm, GE, entered into a contract with Stanley for SEO services and reputation management. Stanley was hired because of his ability to improve a firm’s online reputation through search results. After approximately one year, however, GE sought to terminate its relationship with Stanley after it determined he had acted outside of his contracted duties. Stanley also created websites that had the ability to damage GE’s reputation by associating GE with a scam. Stanley demanded additional payments to end his contractual relationship with GE and to surrender the administrator rights to the websites to GE. From November 2010 through January 2011, GE paid Stanley a total of $80,000 to terminate the relationship.
Posing as “William Davis” and “William Laurence,” Stanley transmitted threatening communications, via email and telephone, from foreign countries to GE in the Northern District of Texas. Those communications threatened to post comments on the Internet wrongfully disparaging GE’s reputation, if GE did not send money to Stanley.
Because of Stanley’s threats to harm GE’s reputation through negative Internet posts that would adversely affect GE’s ability to conduct business if it failed to send money, GE responded to the wrongful inducement by sending four payments totaling $29,556 by MoneyGram to Stanley in Brasov, Romania.
According to the stipulated facts outlined in the factual resume, the government can readily prove that Stanley’s extortive conduct caused GE to make the above payments and to lose revenue. The extortive conduct also affected interstate commerce. In addition, the government contends that as of May 2014, it could readily prove that Stanley engaged in similar extortionate conduct with approximately 40 to 45 victims (including GE). The government contends the loss attributed to Stanley was over $230,000.00.
The FBI is investigating. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
# # #
Dallas-Based Home Health Company Owners and Nurses Charged for Roles in $13.4 Million Medicare Fraud SchemeRead the Press Release
The co-owners of a home health company in Dallas and two nurse employees were charged in an indictment unsealed yesterday for their alleged participation in a $13.4 million health care fraud scheme involving fraudulent claims for home health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas, Special Agent in Charge CJ Porter of the Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Patience Okoroji, 57, Usani Ewah, 58, Kingsley Nwanguma, 45, all of Dallas County, Texas, and Joy Ogwuegbu, 39, of Collin County, Texas, were each charged with one count of conspiracy to commit health care fraud. In addition, Okoroji and Ewah are each charged with five counts of health care fraud; Nwanguma is charged with three counts of health care fraud and Ogwuegbu is charged with four counts of health care fraud.
Ewah, Nwanguma and Ogwuegbu were arrested yesterday and made their initial appearances before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. Okoroji was also arrested yesterday and will have her initial appearance today.
Okoroji and Ewah co-owned Timely Home Health Services Inc. (Timely), where Okoroji was also an administrator and licensed vocational nurse and Ewah was the director of nursing and a registered nurse. Nwanguma was a licensed vocational nurse working for Timely and Ogwuegbu was a registered nurse working for Timely.
The indictment alleges that from approximately January 2007 to September 2015, the defendants conspired to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the allegations, Okoroji and Ewah would in some cases pay recruiters, including Nwanguma, to recruit beneficiaries for home health services, regardless of whether the beneficiaries needed home health care. Okoroji, Ewah and Ogwuegbu allegedly prepared or caused to be prepared fraudulent Medicare documents that made it appear that the beneficiaries qualified for home health services. These documents were used by doctors to certify Medicare beneficiaries for home health care.
The indictment alleges that during the scheme, Okoroji and Ewah billed Medicare approximately $13,434,550 based on false and fraudulent claims for home health services.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG, FBI and the Texas Attorney General’s MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Texas. Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Timely Indictment
Convicted Sex Offender Sentenced to 30 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Michael Brendan O’Connor, 36, of Dallas, was sentenced Friday, by U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
O’Connor has been in custody since his arrest in May 2014.
According to documents filed in the case, the investigation began in May 2014 when an officer with the Nebraska State Patrol, working online in an undercover capacity and posing as a 31-year-old female whose interests included incest and molesting her young children, was contacted by an individual, later identified as O’Connor, who expressed similar interests. O’Connor, in very sexually explicit communications, indicated, among other things, that he was “attracted to girls 3 to 10 and 8 is the magic age for me physically.” In a later communication, O’Connor detailed an incident where he molested a young child while he was on break at a restaurant where he worked. On May 13, 2014, O’Connor sent the undercover officer a zip file containing several images of child pornography.
On May 29, 2014, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at O’Connor’s residence. More than 950 images of child pornography, some depicting infants and toddlers, were located on O’Connor’s homebuilt computer. He admitted downloading, possessing and transporting images of child pornography.
O’Connor was convicted of sexual assault of a child in Collin County in 2010 and possession of child pornography in Dallas County in 2009.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Rowlett Man Sentenced to Serve 60 Months in Federal Prison for Mailing More Than 400 Hoax White Powder LettersRead the Press Release
DALLAS — A Rowlett, Texas, man, who admitted mailing hundreds of white-powder hoax letters, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Departing upward from the U.S. Sentencing Guidelines, U.S. District Judge Sidney A. Fitzwater sentenced Hong Minh Truong, 67, to serve a total of 60 months in federal prison. Truong pleaded guilty in July 2015 to an indictment charging five counts of false information and hoaxes. He has been in custody since July 28, 2014.
At the sentencing hearing, Judge Fitzwater noted that Truong’s conduct was significant and dangerous and involved more than 400 threatening letters in multiple batches over more than a five-year period. Truong’s conduct cost emergency and investigative responders more than $2.8 million, which does not include economic losses to businesses, schools and government offices.
According to the factual resume filed in the case, since December 2008, Truong mailed more than 400 hoax letters from the North Texas area to cities across the U.S. and to U.S. Embassies abroad. The initial letters, sent out on December 4, 2008, had a “Dallas, Texas” postmark and contained a white-powder substance. More than 15 batches of hoax letters were sent from the Dallas area from December 2008 to the present. In all but two batches of letters, a white-powder substance was included in the envelope.
The substance contained in the more than 400 letters in this case did not contain Anthrax; however, substantial governmental resources were expended in the response and investigation. Although each response was unique, every response involved multiple agencies dispatching personnel and equipment.
Truong mailed some of the hoax letters to more than 100 elementary schools and daycare centers, including the Mi Escuelita Preschool Crossover, in Dallas; Lockheed Martin Aeronautics in Fort Worth, Texas; the Empire State Building, in New York City; Fenway High School in Boston, Massachusetts; and the Dallas Morning News in Plano, Texas.
The U.S. Postal Inspection Service and the FBI investigated. Assistant U.S. Attorney Errin Martin prosecuted.
# # #
Man Sentenced to 15 Months in Federal Prison and Ordered to Pay Nearly $150,000 in Restitution to IRS on Identity Theft ConvictionRead the Press Release
DALLAS — A man who admitted committing identity theft was sentenced this week by U.S. District Judge Sam A. Lindsay, announced U.S. Attorney John Parker of the Northern District of Texas.
Uche Victor Harrison Onyewulotu was sentenced on Monday to 15 months in federal prison and ordered to pay $141,469 in restitution to the Internal Revenue Service (IRS). He pleaded guilty in July 2015 to an indictment charging one count of identity theft – possession in and affecting interstate commerce of means of identification of another with intent to commit a crime.
According to the factual resume and complaint filed in the case, over the course of two years, an individual, identified as Chijioke Augustin Obiora, a Nigerian national, sold undercover agents 13 U.S. Treasury checks, stolen and obtained by fraud, with a total value of $115,702.
On April 28, 2014, according to the factual resume, Obiora attempted to fly to Lagos, Nigeria, from Dallas-Fort Worth airport, where he was arrested. Onyewulotu accompanied Obiora at the airport and was detained.
According to the factual resume, Onyewulotu admitted that he had assisted an individual in a scheme to file fraudulent U.S. federal income tax returns to obtain refunds. When Onyewulotu’s laptop was searched, pursuant to a federal search warrant, according to the factual resume, law enforcement found the means of identification of thousands of individuals, including names, ages, genders, dates of birth, Social Security account numbers, addresses and telephone numbers.
Obiora was prosecuted and convicted in the Eastern District of Texas, and according to the judgment filed in the case, was sentenced in October 2015 to serve 24 months in federal prison.
IRS Criminal Investigation, the U.S. Department of State Diplomatic Security Service, and the Texas Department of Public Safety and investigated. Assistant U.S. Attorney Joseph M. Revesz prosecuted.
# # #
Dallas Man Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 38-year-old Dallas resident, Rex Sistos, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison following his guilty plea to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Dallas Police Department’s Internet Crimes Against Children (ICAC) unit received information from the National Center for Missing and Exploited Children (NCMEC) in September 2013 that Facebook had advised that a particular Facebook user, later identified as Sistos, had uploaded content that Facebook considered child pornography. The investigation led to the execution of a search warrant at Sistos’s home in Dallas on October 23, 2013.
During the execution of that warrant, Sistos was home and agreed to speak with an ICAC detective. Sistos admitted he used his cell phone to send an image of child pornography to an adult female located in the Philippines. A forensic analysis of the cell phone confirmed that Sistos had Facebook accounts associated with the image Sistos transported on two different occasions. Other images and videos of child pornography were also located on his phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Dallas Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
San Angelo, Texas, Psychiatrist Sentenced to Serve 71 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
AMARILLO, Texas — A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, was sentenced yesterday by U.S. District Judge Mary Lou Robinson to 71 months in federal prison, fined $100,000 and ordered to pay $1,832,869 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
Gross pleaded guilty in September 2015 to one count of health care fraud stemming from a scheme he ran to defraud Medicare and Medicaid by submitting claims for services not rendered in the manner billed, including submitting claims for services allegedly rendered after patients’ deaths. He has been in federal custody since his arrest in mid-October 2014 on related charges outlined in a federal indictment. Gross also must forfeit nearly $2 million seized from various accounts.
According to documents filed in the case, beginning in January 2009 and continuing until approximately June 20, 2014, Gross filed, and caused to be filed, claims against Medicare, Medicaid, and other health insurance carriers, for payment for services that were never rendered and services that were billed using inappropriate CPT codes.
Gross regularly submitted claims for services rendered to nursing home residents in and around San Angelo and he also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services provided to foster care children in Brownwood, Texas.
As part of his scheme, Gross filed claims against Medicare, Medicaid, and other health insurance carriers for services for nursing home patients on dates he did not actually render services to patients. In those instances, the patients may have died or been discharged before Gross allegedly visited them in the nursing home.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General investigated. Assistant U.S. Attorney Ann Cruce-Haag and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted and Assistant U.S. Attorney Megan Fahey handled the forfeiture.
# # #
Fort Worth, Texas, Woman Sentenced to 10 Years in Federal Prison for Using Her Home to Conduct Methamphetamine TransactionsRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, woman, Shanda Brite, 28, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 120 months in federal prison, following her guilty plea in July 2015 to one count of maintaining a drug involved premise, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, since approximately 2014, Brite has allowed others, including two co-defendants, to conduct methamphetamine transactions at her house on Seal Cove in Fort Worth. In exchange, Brite received methamphetamine.
Other defendants in the case have also received lengthy federal prison sentences for their roles in the methamphetamine distribution conspiracy. Last week, Samuel Hebert was sentenced to 240 months, Joseph Sutton was sentenced to 140 months, and Steven Villegas was sentenced to 120 months, in federal prison. All three are from the Dallas-Fort Worth area.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
# # #
Fort Worth Residents Sentenced to Lengthy Federal Prison Sentences for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Three Fort Worth, Texas, residents have been sentenced by U.S. District Judge Reed C. O’Connor to lengthy federal prison sentences for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Michael Bentley, 34, Jessica Judge, 35, and Billy Bullitt, 45, were sentenced on Monday to 200 months, 180 months, and 121 months, respectively, in federal prison. Each pleaded guilty this past summer to one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
According to documents filed in the case, Bentley, Judge and Bullitt received ounce and multi-ounce quantities of methamphetamine on consignment from others, and in turn, they distributed it to customers in Wichita Falls, Texas, North Richland Hills, Texas, and Fort Worth returning to their suppliers for additional methamphetamine to distribute.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
# # #
Dublin, Texas, Man Sentenced to 10 Years in Federal Prison for Sending Obscene Photo of Himself to Undercover Officer Posing Online as 14-Year-Old-GirlRead the Press Release
DALLAS — Sethaniel Winston Hampsten, 24, of Dublin, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 10 years in federal prison, following his guilty plea in September to one count of transferring obscene material to a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, Hampsten used his cell phone and tablet to entice someone he thought was a 14-year-old girl to engage in sexual contact with him. He also admitted sending a sexually explicit, obscene photo of himself to the minor girl.
The investigation began in September 2014 when a detective with the Garland Police Department was conducting an undercover investigation online into advertisements placed on Craigslist. The detective established an undercover profile as a 14-year-old girl. Using this undercover profile, the detective responded to an ad Hampsten placed by stating she was almost 15 years old and a freshman. Within nine minutes, a man, later identified as Hampsten, responded, asking for a picture.
Over the course of four days, Hampsten and the detective chatted and Hampsten identified himself as a man in his 20’s named Seth. Sexually explicit chats continued, with Hampsten sending a sexually explicit obscene photo of himself, and the two planned to meet in the minor girl’s apartment in Garland, Texas. On the scheduled meet date, Hampsten drove from Dublin to Garland and parked in the apartment’s parking lot. When detectives approached him in his vehicle, he had a condom in his lap.
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 Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
# # #
Man Sentenced to 20 Years in Federal Prison for Sending Images of Child Pornography from His Computer While Visiting a Friend in Arlington, TexasRead the Press Release
FORT WORTH, Texas — Eric Miltonhall has been sentenced by U.S. District Judge John McBryde to serve 240 months in federal prison following his guilty plea in August 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, from approximately March 22, 2014, through April 16, 2014, Miltonhall, 40, of Missouri and most recently, Alabama, stayed with a friend who lived in Arlington, Texas. On approximately April 15, 2014, Miltonhall used his computer, which was connected to the internet there, to send communications via a software application called Kik. During that communication, Milton also transmitted images of child pornography.
According to other documents filed in the case, after obtaining a search warrant and conducting a forensic examination, officers and agents learned that prior to his arrival in Texas, Miltonhall had accessed and deleted thousands of images and videos of child pornography, many involving toddlers and infants. Miltonhall also used encrypted devices containing child pornography that he connected to his computer.
Miltonhall had worked in Missouri as a police officer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Arlington Police Department investigated. Assistant U.S. Attorney A. Saleem prosecuted.
# # #
Attorney and Stock Promoter Sentenced for Roles in Securities Fraud Conspiracy Involving ConnectAJet.comRead the Press Release
DALLAS — Attorney Martin Cantu, who was the CEO of Connect-a-Jet, and his co-defendant, stock promoter Jason Wynn, were sentenced today by U.S. District Judge Ed Kinkeade on felony convictions stemming from their roles in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced U.S. Attorney John Parker of the Northern District of Texas.
Cantu, 59, of San Antonio, Texas, was sentenced to 35 months in federal prison and was ordered to surrender his law license. Wynn, 33, of Lantana, Texas, was sentenced to serve a five-year term of probation. Judge Kinkeade ordered them to pay $423,938.66 in restitution. In addition, both defendants are subject to large SEC restitution orders; Wynn’s is nearly $11 million and Cantu’s is approximately $800,000.
Cantu was convicted at trial in May 2015 on both counts of an indictment charging one count of conspiracy to commit securities fraud and one count of securities fraud. Cantu, pleaded guilty in April 2015 to the conspiracy offense
Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.
From approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.
The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
Over the course of 15 days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.
# # #
Greenville, Texas, Man Sentenced to 10 Years in Federal Prison for Attempting to Entice an Individual he Believed to be a 15-Year-Old Female to Engage in Sexual ActivityRead the Press Release
DALLAS — Michael Henry Shahan, 32, of Greenville, Texas, was sentenced today by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in September 2015 to one count of attempted enticement of a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, in November 2015, an officer with the Hopkins County Sheriff’s Office who was working online in an undercover capacity posing as a 15-year-old female encountered an individual who was later identified as Shahan. During their ensuing chats over a two-month period, Shahan sent the girl, whom he knew was 15-years-old, sexually explicit nude photographs of himself and insisted he wanted to meet her and engage in sexual activity with her. Their mid-January 2015 planned meeting was thwarted when Shahan’s wife did not stay home from work as expected and make available what was then the couple’s only car. The officer obtained an arrest warrant and Shahan was arrested soon thereafter. Shahan had images of child pornography on his cell phone as well as numerous chats about the contents of traded child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Hopkins County Sheriff Office investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
# # #