Northern District of Texas
Press releases recorded for this federal judicial district.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
FORT WORTH, Texas — Three defendants who admitted to felony offenses stemming from their role in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth (DFW) area since 2013, were sentenced yesterday to substantial prison sentences by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Samuel Hebert, 32, was sentenced to 240 months in federal prison. Joseph Sutton, also 32, was sentenced to 140 months in federal prison, and Steven Villegas, also 32, was sentenced to 120 months in federal prison. Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. All three are from the DFW area.
According to documents filed in the case, since 2013, Hebert supplied ounce and multi-ounce quantities of methamphetamine to others on consignment. Sutton and Villegas received ounce and multi-ounce quantities of methamphetamine on consignment and in turn distributed it to various customers in the Fort Worth and North Richland Hills, Texas, areas, returning to their suppliers for additional methamphetamine.
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.
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Abilene Man Sentenced to Serve 50 Years in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
ABILENE, Texas — Paul Joseph Koestle, 33, of Abilene, Texas, was sentenced this morning by Chief U.S. District Judge Jorge A. Solis to serve a total of 50 years in federal prison, following his guilty plea in August 2015 to two felony child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Koestle, who has been in custody, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. Judge Solis sentenced him to the statutory maximum sentence of 360 months on the production count and 240 months on the receipt count, to run consecutively.
According to documents filed in the case, earlier this year the Abilene Police Department (APD) began investigating Koestle based on information they received from the National Center for Missing and Exploited Children (NCMEC) indicating he had uploaded an image of child pornography to a Google account. The APD executed a search warrant at his home in late April 2015.
Koestle, who was home during the execution of the warrant, admitted to downloading child pornography and producing child pornography of a minor child, “Jane Doe.” A forensic evaluation of electronic equipment seized from his residence pursuant to the search revealed hundreds of images of child pornography located on a cellphone, a laptop computer and hard drive. In addition, multiple images of “Jane Doe” engaging in sexually explicit conduct were found.
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 Abilene Police Department investigated. Assistant U.S. Attorney Myria Boehm was in charge of the prosecution.
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Abilene Man Sentenced to 108 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — David Scott Fikani, 62, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 108 months in federal prison, following his guilty plea in July 2015 to an indictment charging one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Fikani has been in federal custody since September 2015 when U.S. Magistrate Judge E. Scott Frost determined he violated certain terms of his pretrial release and ordered him detained.
According to plea documents filed in the case, Fikani used the computer at his residence to search the Internet for images and videos depicting minors engaging in sexually explicit conduct. In the course of these searches, Fikani located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
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 Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Fort Worth Couple Sentenced for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Two defendants who pleaded guilty in August to felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy were sentenced this morning, by U.S. District Judge Reed C. O’Connor, to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Gabriel Farias-Lopez, 37, who pleaded guilty to one count of conspiracy to possess methamphetamine with the intent to distribute, was sentenced to 210 months in federal prison. Co-defendant Kimberly Robles-Rueda, 20, who pleaded guilty to one count of conspiracy to commit money laundering, was sentenced to 84 months in federal prison.
According to documents filed in the case, Farias-Lopez received kilogram-quantities of methamphetamine from a source in Mexico that he subsequently distributed in the Dallas – Fort Worth, Texas, area. Robles-Rueda collected the drug proceeds for the methamphetamine that Farias-Lopez distributed. She also received instructions from a person in Mexico as to how to wire or otherwise return the drug proceeds to the person in Mexico. The instructions she received usually involved depositing or wiring money into various bank accounts in $1,000-increments. Then, Robles-Rueda or another person would wire or transfer the money to bank accounts in Mexico.
Pursuant to a traffic stop conducted by law enforcement in Fort Worth on June 23, 2015, Farias-Lopez and Robles-Rueda were found to be in possession of approximately four kilograms of methamphetamine ice, and Robles-Rueda had nearly $8,000 cash in her purse. Then, during the subsequent execution of a search warrant at their shared home on Travis Avenue in Fort Worth, law enforcement found liquid methamphetamine and methamphetamine ice, with a combined weight of approximately three kilograms, and $25,000 in cash.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Serial Armed Robbers Known as “Bulls Cap Bandits” Plead Guilty to Federal ChargesRead the Press Release
DALLAS — Three Dallas men have pleaded guilty to their roles in committing several violent armed robberies in Dallas last year, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Cedric Ray Jones, 26, pleaded guilty, before U.S. District Judge Jane J. Boyle, to one count of conspiracy to interfere with commerce by robbery, two counts of using, carry, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, and three counts of interference with commerce by robbery. Last week, his brother, Damien Antoine Jones, 31, pleaded guilty to the same offenses. In mid-November, Savalas Christopher Love, 30, pleaded guilty to the conspiracy count and one firearm count.
The FBI dubbed the robbers the “Bulls Cap Bandits,” as Cedric and Damien Jones wore Chicago Bulls caps during the robberies.
According to documents filed in the case, from approximately March 7, 2014, through June 17, 2014, the defendants conspired together to commit these armed robberies:
March 7, 2014 Cash Plus Pawn
and 9103 East R.L. Thornton Freeway, Dallas
June 12, 2014May 28, 2014 AutoZone
10418 Garland Road, DallasJune 2, 2014 AutoZone
2842 South Buckner Blvd., DallasJune 17, 2014 AutoZone
9711 Plano Road, DallasDuring each of the robberies, Cedric and Damien Jones wore disguises and brandished firearms. In the March 7, 2014, robbery of Cash Plus Pawn, they stole cash and two semi-automatic rifles, and then fled on foot.
In the May 28, 2014, and June 2, 2014, AutoZone robberies, Cedric and Damien Jones entered the store, brandishing the semi-automatic rifles, while Love remained in the vehicle as the “getaway driver.” The three fled in Love’s vehicle.
On June 12, 2014, Cedric and Damien Jones, Love, and another individual traveled to the Cash Plus Pawn store on East R.L. Thornton Freeway in Dallas, in Love’s vehicle, with the specific intent to commit robbery. Upon arriving in the parking lot, Damien Jones and the other individual exited the vehicle and approached the store’s entrance with firearms, but abandoned the robbery when confronted by a store employee. They fled in Love’s vehicle.
In the June 17, 2014, AutoZone robbery, Cedric and Damien Jones traveled together in Love’s vehicle to the store with the intent to commit robbery. Love traveled separately to the location. Love “cased” the store and reported the absence of security personnel to Damien Jones. Cedric and Damien Jones then entered the store, brandishing semi-automatic rifles, and then fled the robbery in their vehicle. During a subsequent chase with law enforcement, Cedric Jones operated the vehicle in a manner to avoid apprehension and created a substantial risk to other motorists on the roads. During the pursuit, shots were fired in the direction of the pursuing officers to further avoid apprehension.
The conspiracy count and each of the interference with commerce by robbery counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The first firearm conviction carries a mandatory sentence of not less than seven years and up to life in federal prison, to be served consecutively to any other term of imprisonment. The subsequent firearm offense carries a mandatory term of not less than 25 years and up to life in federal prison, to be served consecutively to any other term of imprisonment. The defendants’ sentencing dates are scheduled in March 2016.
The case is being investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
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Northern District of Texas U.S. Attorney's Office Collects Nearly $17 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
DALLAS — U.S. Attorney John Parker announced today that the Northern District of Texas collected $16,843,994 in criminal and civil actions in the fiscal year (FY) ending Sept. 30, 2015. Of this amount, $13,517,578 was collected in criminal actions and $3,326,415 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $577,658 in cases pursued jointly with these offices. Of this amount, $152,634 was collected in criminal actions and $425,024 was collected in civil actions.
Attorney General Loretta E. Lynch also announced today that the Justice Department collected $23.1 billion in civil and criminal actions in FY 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“These numbers illustrate that this office’s vigorous prosecutions, criminal and civil, do not end at sentencing or judgment, said U.S. Attorney Parker. “We have a continuing obligation to aggressively pursue the recovery of ill-gotten funds for both victims of crime and the federal treasury, and our efforts in this regard will remain robust.”
Substantial collections in the District in FY 2015 included:
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$1.77 million, almost 75% of the total funds embezzled by defendant returned to his former employer within 60 days of sentencing in U.S. v. Daniel Mangini;
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$1.54 million recovered through garnishment of multiple retirement accounts, life insurance policies, and payoff of lien on homestead in U.S. v. Michael Wolf, a workers’ compensation health care fraud case;
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$780,000 collected through the garnishment of multiple bank accounts, lease payments, and lawsuit settlement proceeds to enforce a $1.7 million civil judgment the U.S. Department of Labor obtained against the defendants on behalf of dozens of disabled men forced to work for years under deplorable conditions in U.S. v. Kenneth Henry and Hill Country Farms;
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$605,000 recovered through foreclosure of liens on real property and garnishment of multiple accounts in U.S. v. Glen McDonald, a counterfeiting and trafficking in contraband case;
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$383,000 in payments toward a $705,000 civil consent judgment in U.S. v. Wilma Aguilera, a False Claims Act case regarding a contract with the Department of Defense; and
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$226,000 recovered through foreclosure of lien on homestead to satisfy restitution imposed against husband and wife in U.S. v. Kenneth and Leah Brown, an insurance fraud conspiracy
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Texas, working with partner agencies and divisions, collected $12,544,766 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Former U.S. Congressional Staffer Pleads Guilty to Receiving Child PornographyRead the Press Release
WASHINGTON – A former congressional staffer pleaded guilty yesterday to one count of receiving child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.
James Maines Jr., 54, of Mesquite, Texas, pleaded guilty before U.S. Magistrate Judge David L. Horan of the Northern District of Texas in Dallas to one count of knowingly receiving child pornography. Maines is scheduled to be sentenced on March 16, 2016, before U.S. District Court Judge Ed Kinkeade of the Northern District of Texas.
In connection with his guilty plea, Maines admitted that in November 2012, he attempted to forward five child exploitation images from his email account to his U.S. House of Representatives email account. Maines also admitted that he had received these and other child exploitation images via the Internet. Forensic analysis of Maines’s computer revealed a number of child exploitation images, some of which Maines had downloaded as early as 2004.
Assistant U.S. Attorney Camille Sparks of the Northern District of Texas and Trial Attorney Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting this case. The FBI’s Dallas Field Office investigated the case with the assistance of the FBI’s Washington, D.C., Field Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former U.S. Congressional Staffer Pleads Guilty to Receiving Child PornographyRead the Press Release
A former congressional staffer pleaded guilty yesterday to one count of receiving child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.
James Maines Jr., 54, of Mesquite, Texas, pleaded guilty before U.S. Magistrate Judge David L. Horan of the Northern District of Texas in Dallas to one count of knowingly receiving child pornography. Maines is scheduled to be sentenced on March 16, 2016, before U.S. District Court Judge Ed Kinkeade of the Northern District of Texas.
In connection with his guilty plea, Maines admitted that in November 2012, he attempted to forward five child exploitation images from his email account to his U.S. House of Representatives email account. Maines also admitted that he had received these and other child exploitation images via the Internet. Forensic analysis of Maines’s computer revealed a number of child exploitation images, some of which Maines had downloaded as early as 2004.
Assistant U.S. Attorney Camille Sparks of the Northern District of Texas and Trial Attorney Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting this case. The FBI’s Dallas Field Office investigated the case with the assistance of the FBI’s Washington, D.C., Field Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Energy Company Landman Sentenced to 63 Months in Federal Prison and Ordered to Pay More Than $1 Million in Restitution for Running Oil and Gas Mail Fraud SchemeRead the Press Release
FORT WORTH, Texas — A 33-year-old energy company landman who admitted running a scheme to defraud his employer, XTO Energy, of more than $1 million, was sentenced this morning, announced U.S. Attorney John Parker of the Northern District of Texas.
Steven E. Fisackerly, 33, of Spring, Texas, was sentenced by U.S. District Judge Terry R. Means to 63 months in federal prison and ordered to pay $1,005,131.00 in restitution. Fisackerly pleaded guilty in May 2015 to an information charging one count of mail fraud. He must surrender to the Bureau of Prisons on January 4, 2016.
According to documents filed in the case, from September 2008 until March 2012, Fisackerly worked in the Fort Worth offices of XTO Energy, Inc. as a landman assigned to the Marcellus Shale wells in West Virginia. A landman is primarily responsible for all surface and mineral land-related matters for his assigned area. Among other things, a landman drafts, negotiates, and administers oil and gas leases, amendments, unit designations, assignments, domestic gas use agreements, surface leases, damage agreements, purchase and sale agreements, and similar documents, all related to oil and gas exploration. Landmen have access to and use computer systems specific to XTO, which XTO uses to map oil and gas leases, track costs related to oil and gas bonus payments, and access oil and gas leases.
Fisackerly admits that beginning in January 2009 and ending in approximately January 2011, he devised and ran a scheme to defraud XTO. He used his knowledge of XTO’s oil and gas lease process, his access to previously approved oil and gas leases and reports, XTO computer systems, Harrison County, West Virginia’s online document inquiry public records data base, and his knowledge of XTO’s oil and gas interests in West Virginia to generate bogus oil and gas leases. He also altered/falsified existing information to generate bogus documents.
In January 2009, Fisackerly selected an XTO oil and gas lease packet from a legitimate landowner, J.G. Fisackerly altered that oil and gas lease packet to show that another individual, E.C., was the landowner. Fisackerly prepared and organized the false oil and gas lease documentation under E.C.’s name and routed the lease packet to management for approval. Once approved, XTO issued bonus check for $180,402.50 to E.C. that Fisackerly obtained. That check was deposited into a bank account controlled by E.C., and E.C. wrote two personal checks, totaling $130,000, to Fisackerly from that account.
Fisackerly also created a sham company, Parallel Interests, LLC, using LegalZoom. He listed himself as the 100 percent member, stating in the formation questionnaire that the reason for creating the company was for mineral interests. Fisackerly also opened a bank account at Bank of America in December 2010 that listed Parallel Interests, LLC on the signature card and named Fisackerly as the only signer on the account.
Fisackerly also created false oil and gas leases and lease packets in the name of Paul Hinkle, President of Parallel Interests, LLC, and executed the documents with a forged notary stamp. He created fraudulent deeds and Harrison County Clerk reference numbers for supporting documentation and provided a nonexistent Post Office Box as the mailing address for the bonus checks. He organized the fraudulent documentation and approved the order of payments. He then obtained additional management approvals and routed the lease packets to XTO’s Land Department, where bonus checks for Parallel Interests, LLC were issued. From there, the bonus checks were routed back to Fisackerly, who then deposited them into the Parallel Interests, LLC Bank of America account he controlled.
During the course of the scheme, Fisackerly engaged in approximately nine fraudulent transactions, causing XTO to issue checks totaling $1,005,131.00
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Nancy Larson was in charge of the prosecution.
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Dallas Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
DALLAS — A Dallas man, Andrew Berko, 45, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison following his guilty plea in May 2015 to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Berko has been in custody since his arrest in April 2015 on a related federal criminal complaint.
According to documents filed in the case, the investigation began when a detective with the Sherman Police Department, who was investigating the sharing of child pornography on a file-sharing network called BitTorrent, identified 27 files matched to a law enforcement database as files containing child pornography. The files were linked to an IP address later identified as Berko’s.
Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Berko’s residence on March 31, 2015. A forensic analysis of his computer they seized revealed 8190 images and 860 videos of child pornography, including more than 800 images and videos of infants and toddlers. Some of the images and videos he collected depicted sadistic and/or violent content.
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.”
ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorneys Camille Sparks and Lori Walker prosecuted.
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Tax Preparers Plead Guilty to Federal Offenses in Separate CasesRead the Press Release
DALLAS — Two tax preparers who operated tax preparation businesses in Irving, Texas, and Duncanville, Texas, recently pleaded guilty to federal offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
In one case, Hector Gerardo Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared. Nunez faces a maximum statutory penalty of three years in federal prison as well as a fine and restitution. Sentencing is set for March 10, 2016, before U.S. District Judge Jane J. Boyle.
In the other case, Sherene Warren pleaded guilty to the same offense as well as to one count of theft of government money. According to the factual resume filed in her case, Warren was the owner and manager of the tax preparation business Fast Tax Services that was located on N. Cedar Ridge Drive in Duncanville and then later on W. Wheatland Road in Duncanville. Warren falsified, according to the factual resume, line items on clients’ tax returns to obtain larger refunds. She also admitted receiving approximately $121,701 in 2010, $218,517 in 2011 and $360,491 in 2012 in fees/bonuses for preparing the tax returns. Warren further admitted that she did not disclose any Fast Tax Services’ income on her 2010 tax returns, and that she did not file a tax return in 2011 or 2012.
Warren also submitted false and fraudulent information about her income and employment to the Dallas Housing Authority in connection with receipt of Section 8 housing benefits, admitting that she stole approximately $28,786 in housing assistance to which she was not entitled. Each year, the factual resume goes on to state, Warren submitted false and fraudulent documents to the Dallas Housing Authority showing she had no income, when, as she well knew, she received substantial income from the operation of Fast Tax Service.
Warren faces a maximum statutory penalty of three years in federal prison on the tax conviction and five years on the theft of government money conviction, as well as fines and restitution. Warren was also charged with stealing disability benefits and, according to the plea agreement filed, while she did not plead to that offense, she has agreed to pay restitution of an amount proven at sentencing to the IRS, the U.S. Department of Housing and Urban Development (HUD) and the Social Security Administration (SSA). Sentencing is set for March 17, 2016, before U.S. District Judge Reed C. O’Connor.
IRS Criminal Investigation is investigating both cases. HUD Office of Inspector General and the SSA Office of Inspector General are also investigating the Warren case.
Assistant U.S. Attorney Christopher Stokes is prosecuting the Nunez case, and Assistant U.S. Attorney Nicholas Bunch is prosecuting the Warren case.
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Allen, Texas, Man Sentenced to 84 Months in Federal Prison and Ordered to Pay More Than $8.7 Million in Restitution for Running an Oil and Gas Investment Fraud SchemeRead the Press Release
DALLAS — Brian J. Polito of Allen, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 84 months in federal prison and ordered to pay $8,768,351 in restitution following his guilty plea in May 2015 to an information charging one count of mail fraud stemming from his operation of an oil and gas investment fraud scheme. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Polito must surrender to the Bureau of Prisons on January 6, 2016.
Polito was the sole owner/operator of GC Resources, LLC, an oil and gas investment firm that was located on Preston Road in Dallas. Beginning in December 2011, Polito defrauded investors by selling interests in oil and gas projects in which GC Resources had no ownership or interest.
As part of the scheme, Polito researched “Company A” on the Texas Railroad Commission’s website and determined that Company A’s wells were producing. Polito then identified Company A’s drilling permits for wells that were going to be drilled in the future. Through GC Resources, Polito began soliciting investments into Company A’s projects even though GC Resources had no control or interest in the wells.
To convince investors to invest with GC Resources, Polito told investors that GC Resources owned the oil and gas drilling leases, when, in fact, it did not have any ownership or interest in the lease. Polito also misrepresented that GC Resources had an interest in Company A’s wells, when in reality, GC Resources had zero interest in Company A’s wells. Polito informed actual and potential investors that GC Resources had a contract with Company A, which was false. Polito even supplied investors with a document purporting to be a contract between Company A and GC Resources, but that document was fraudulent, as Polito had created it using Photoshop to forge signatures of Company A employees.
Polito paid investors of Company A projects with other fraudulently obtained funds in the manner of a Ponzi scheme.
Polito solicited investments by making cold calls to potential investors and sending prospective investors a packet of materials that included the forged Company Agreement and other documents. Polito deposited investors’ money in a GC Resources bank account to which he had sole control. Over the course of the scheme, Polito raised multiple millions from victim investors, all of which was used to fund a lavish lifestyle.
When investors asked to see the well site, Polito, or a salesperson working for him, would take investors to the actual well site, which was under the control of Company A, in an effort to further deceive investors and prolong his scheme. Polito even obtained production records from the Railroad Commission’s website for Company A wells and provided that information to investors, even though neither Polito or GC Resources had any interest whatsoever in Company A’s wells.
According to evidence introduced at sentencing, Polito spent a significant portion of the investors’ money on luxury automobiles. At one time, Polito had the following vehicles: (1) a 2014 50th Anniversary Aventador Lamborghini Coupe; (2) a 2014 50th Anniversary Lamborghini Gallardo; (3) a 2014 Gallardo Squadra Lamborghini Corse; (4) a 2014 Porsche Panamera S E-Hybrid; (5) a 2014 Porsche 911 Turbo S; (6) a 2014 Porsche Cayenne Turbo S; (7) a 2014 Jeep Grand Cherokee SRT8; (8) a 2014 Mercedes-Benz SLS AMG Black Series; (9) a 2014 Nissan GR-R; (10) a 2014 McLaren 12C Spider; and (12) a 2014 Ferrari F12.
The government has engaged in significant efforts to secure assets for potential restitution to victims. Among other things, the government has recovered $664,000 from the liquidation of the net equity in the following vehicles: a 2014 Roll Royce Wraith, a 2015 McLaren 650S Coupe, a 2014 Lamborghini, a Aventador Anniversary Coupe, a 2015 BMW M4 Coupe, a 2014 Mercedes E63 Wagon, a 2014 Ferrari 458 Speciale, a 2014 Jeep Cherokee SRT8, and one bank account subject to the entry of restitution and/or forfeiture orders. In addition, as detailed in the Bill of Particulars filed with the Court, the government seized and will forfeit 64 luxury watches from various manufacturers, including Zenith, Tag Heuer, Rolex, Hyt, Hublot Geneve, Lumirror Panerai, Breitling, among others. The government also coordinated the sale of Polito’s residence in Allen, Texas, recovering an additional $656,923.89 in net proceeds.
The Securities and Exchange Commission (SEC) filed suit against Polito and GC Resources, LLC in April 2015 for defrauding investors through the sale of interests in oil and gas wells the company never owned. A partial judgment has been issued in that case that permanently enjoins him from further violations of the securities laws and permanently bars him from participating in the purchase, offer, or sale of any oil-and-gas related securities offering.
The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Melissa A. Childs prosecuted.
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Two Sentenced to Lengthy Federal Prison Sentences for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — U.S. District Judge Reed C. O’Connor sentenced two defendants to lengthy federal prison sentences today for their respective roles in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth area since 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Andres Silva, 36, was sentenced to 210 months and Melissa Slade, 40, was sentenced to 240 months in federal prison. Each pleaded guilty in July 2015 to one count of conspiracy to possess with the intent to distribute methamphetamine.
According to documents filed in the case, since 2013, Silva supplied methamphetamine to various distributors. Slade received quantities of methamphetamine on consignment and in turn distributed it to various customers in the North Richland Hills, Haltom City and Fort Worth areas.
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.
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Parker County Man Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Gary Howard, 35, most recently of Weatherford, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to 240 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Howard pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute at least 50 grams of methamphetamine.
According to documents filed in the case, since 2014, Howard and other co-defendants received multi-ounce and pound quantities of methamphetamine on consignment. In turn, Howard distributed the methamphetamine to various customers in the Dallas, Fort Worth and North Richland Hills, Texas areas, returning to his supplier 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.
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Mesquite Woman Sentenced to 132 Months in Federal Prison and Ordered to Pay $2,294,442 in Restitution in Stolen-Identity Tax Refund CaseRead the Press Release
DALLAS — Yolanda Lavell Kaiser was sentenced today by U.S. District Judge Barbara M. G. Lynn to 132 months in federal prison and ordered to pay $2,294,442 in restitution to the Internal Revenue Service (IRS) following her guilty plea in April 2015 to one count of wire fraud stemming from a stolen-identity tax refund scheme she ran. At sentencing today, Judge Lynn noted Kaiser’s lengthy criminal history as one of the reasons for the sentencing, pointing specifically to Kaiser’s 2004 federal conviction in the Northern District of Texas for aiding or assisting in the preparation of false tax returns. Judge Lynn also found Kaiser’s offense caused substantial financial hardship to many of the more than 1,300 identity-theft victims in the case. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to factual resume filed in the case, from approximately September 2013 through August 2014, Kaiser prepared and electronically filed, over interstate wires, fraudulent tax returns using the name, Social Security Number, and other means of identification of actual persons, without lawful authority, to fraudulently obtain U.S. federal tax refunds. She prepared and filed tax returns through a tax preparation business known as Right 1 Tax Services, which was located on North Galloway in Mesquite and later on Estate Lane in Dallas.
Kaiser obtained and possessed, according to the factual resume, means of identification of other individuals, without their knowledge or consent, and obtained prepaid debit cards issued in the names of those other individuals. Using others’ identification, she filed and caused to be filed false federal income tax returns to requesting tax refund and directing those refunds be deposited on prepaid debit cards associated with unique account numbers. Kaiser made cash withdrawals of refunds deposited into accounts, including making withdrawals with prepaid debit cards.
As an example, in February 2014, Kaiser electronically filed a false federal tax return in the name of W.F. and obtained a $5,098 refund, according to the factual resume. The return was false and fraudulent because Kaiser did not have authorization to file a return on behalf of W.F. and because the information contained on the return was materially false, including false information about W.F.’s W-2 wages. Because of the fraudulent return, the IRS deposited a $5,098 refund onto an Advent Financial Instant Issue Debit Card that Kaiser then used to make cash withdrawals from ATMs.
IRS Criminal Investigation, with assistance from the Mesquite Police Department and the Dallas County District Attorney’s Office, investigated. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
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Armed Carjackers Plead Guilty in Federal CourtRead the Press Release
DALLAS — Two Dallas residents have pleaded guilty to federal felony offenses stemming from their roles in the armed carjacking of two individuals earlier this year, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Monica Renee Metcalf, 23, appeared before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of carjacking and aiding and abetting and one count of using, carrying, and brandishing a firearm in furtherance of a crime of violence and aiding and abetting. She faces a statutory penalty of up to 15 years in federal prison and a $250,000 fine on the carjacking count and up to life in federal prison on the firearm count.
Last week, Felipe Pinon, 27, pleaded guilty to the same offenses. His plea agreement contains a provision that, if the Court accepts that plea, the parties agree that a sentence of 360 months is the appropriate custody disposition of the case.
According to documents filed in the case, on January 18, 2015, Metcalf approached an individual (Victim 1) at a gas station near the 3300 block of Webb Chapel Extension in Dallas and asked Victim 1 for a ride. Metcalf directed Victim 1 to drive her to an apartment complex across the street, and when they arrived there, Pinon approached the vehicle and spoke with Metcalf. Metcalf then asked Victim 1 to give Pinon a ride as well, but Victim 1 refused. Pinon then brandished a handgun and pointed it at Victim 1 and demanded that Victim 1 give him everything he had. Pinon and Metcalf ordered Victim 1 out of the vehicle and drove away in it.
The next day, Metcalf approached and briefly spoke with an individual (Victim 2) who was seated in his vehicle near the 300 block of S. Seagoville Road in Dallas. As Metcalf walked away from Victim 2, Pinon approached Victim 2. Pinon brandished a handgun and ordered Victim 2 to get out of the vehicle. Then, Pinon, Metcalf, and another individual drove away in Victim 2’s vehicle.
The Dallas Police Department and the FBI investigated. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Wichita Falls Man Sentenced to Nearly 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Edwin Romine, 36, of Wichita Falls, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to serve 235 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Romine pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute at least 50 grams of methamphetamine.
According to documents filed in the case, from July 2012 to his incarceration in state prison in late August 2014, Romine obtained, helped other obtain, and distributed methamphetamine in the Wichita Falls area.
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.
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San Angelo Man Sentenced to 235 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Justin Benedict Morales, 41, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 235 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 plea documents filed in the case, in November 2014, Morales used the Internet to send at least eight images of prepubescent child pornography via the online instant messaging client, Yahoo Messenger. Morales used several Yahoo IDs to transport and trade images and videos of child pornography. His laptop computer and hard disk drive were seized when special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Attorney General’s Internet Crimes Against Children (ICAC) Task Force, and the San Angelo Police Department, executed a search warrant at his residence in May 2015.
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.”
ICE HSI, the Texas Attorney General’s Internet Crimes Against Children Task Force, and the San Angelo Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Plano Man Sentenced to 33 Months in Federal Prison for Role in Scheme to Obtain and Use Stolen Identieis to Steal Federal Income Tax RefundsRead the Press Release
DALLAS — A Plano, Texas, man who admitted his role in a stolen identity tax refund scheme was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Benjamin Kinyua, who is a resident of Plano, according to the court’s order setting conditions of his release, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 33 months in federal prison and ordered to pay $480,643 in restitution. Kinyua pleaded guilty to one count of theft of federal funds and aiding and abetting.
Two others charged and convicted in the case have also been sentenced. Thomas Nganga Muya is currently serving a 27-month federal prison sentence and Harry Fabrice Cheickh Amont is currently serving a 30-month federal prison sentence.
According to Kinyua’s filed factual resume, from 2012 through May 17, 2013, Kinyua regularly acquired and then cashed U.S. Treasury checks, as well as third-party tax refund checks that he knew had either been stolen or obtained by fraud. Mostly, Kinyua cashed the checks at a check-cashing business in Dallas County. From February 2013 through May 17, 2013, Kinyua also presented and participated in the presentation of 16 checks to undercover agents of the Internal Revenue Service Criminal Investigation (IRS-CI), who were posing as persons willing to pay cash for stolen tax refund checks. The factual resume outlines the fencing of a $595,901 stolen IRS refund check.
IRS-CI investigated the case. Assistant U.S. Attorney Chris Stokes was in charge of the prosecution.
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In Second Phase of Investigation, Law Enforcement Arrests 52 Additional Members and Associates of Various White Supremacist OrganizationsRead the Press Release
DALLAS — Following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) and the Dallas Police Department Criminal Intelligence Unit, 54 individuals, members and associates of various white supremacist organizations, have been charged with federal offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to November 2015. U.S. Attorney John Parker of the Northern District of Texas made the announcement today. Two of the 54 defendants remain fugitives.
This second phase of the investigation follows a related operation in 2014 in which 37 members and associates of various white supremacist organizations were arrested and charged with similar federal offenses, stemming from their role in a methamphetamine distribution conspiracy. All of those defendants were convicted; one remains a fugitive.
Defendants, all Texas residents, who are charged in this superseding indictment and who are in custody include:
Ramon Aguilar, III, aka “Nelson,” 26, of Dallas
Christopher Alexander, aka “Bear,” 43, of Dallas
William Lee Benham, 32, of Mesquite
Eric Scott Benson, aka “ESB,” 29, of Mesquite
Ronnie Mikel Brown, 39, of Dallas
Jonas Carrera, 36, of Dallas
Hugo Ivan Castaneda, aka “Takua,” 25, of Dallas
John Anthony Chavez Jr., aka “BJ,” 27, of Dallas
Justo Salvador Chavez Jr., aka “Junior,” 39, of Dallas
Micah Torrence Dees, 26, of Sherman
Abraham Dimas Jr., 41, of Dallas
Tina Wynette Easley, aka “Tina Wynette Fields” aka “Big Tina,” 43, of Seagoville
Crissy Lynn Evans, 28, of Richardson
Taylor Maxlynn Fletcher, 26, of Point
Joe Lee Foard, Jr., 46, of Denison
Michael William Getsinger, 30, of Rockwall
Alejandro Gonzalez, 20, of Dallas
Quincy John Goodson, aka “Kidd,” 34, of Scurry
Michael Thor Guinn, 28, of Jacksonville
Tommy Dare Hancock, aka “Big Tom,” 49, of Beaumont
David Lesley Holt, 54, of Mesquite
David Wayne Holt, 28, of Dallas
Brennan Nicole House, 22, of Sherman
Desirae Ann Houser, 24, of Princeton
Beau James Jarnagin, aka “Beau Jamey,” 39, of Dallas
Jeff Jeremy Johnston, aka “Slowpoke,” 42, of Mesquite
Kory Wade Kloecker, aka “Crawl,” 32, of Mesquite
Jimmy David Lance, 54, of Dallas
Samantha Ladell Largent, 25, of Cumby
Blake Allen Long-Rockey, 27, of Dallas
Ricardo Garcia Medina, 31, of Dallas
Benjamin Matthew Melton, 31, of Mesquite
Craig Don Mueller, 34, of Dallas
Brian Casey Mullins, 35, of Rockwall
Stacy Wayne Myers, 48, of Dallas
James Marshall Nation, 39, of Cumby
Wendy Renee Neal, 37, of Princeton
Mackenzie Nelson, 31, of Greenville
Raymond Anthony Nichols, aka “Ant,” 35, of Mesquite
Shanna Lynn Palmer, 32, of Seagoville
Christian Perez, 23, of Dallas
Francisco Manuel Radamez-Nava, aka “Ghost,” 31, of Mesquite
Jorge Ramirez, aka “Gucci,” “Jorge Ramirez-Martinez,” and “Jorge Alejandro” 31, of Mesquite
Bruce Chance Rash, aka “Chaos,” 37, of Dallas
John James Rumfield, 34, of Dallas
Jackie Lemonds Segura, 32, of Dallas
Brandon Kyle Smith, 31, of Mineola
Alicia Gale Tambourine, aka “Slimm,” 31, of Balch Springs
Jamie Lynn Tucker, 49, of Dallas
Troy Anthony Wallace, 46, of Mesquite
Roger Wayne Whitworth Jr., aka “Peanut,” 42, of Mesquite
John Fitzgerald Yates, aka “Po Boy,” 51, of Tyler (deceased)
This just-unsealed superseding indictment charges all of the above-listed defendants, with the exception of Benjamin Matthew Melton and Jorge Ramirez, with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and one substantive count of possession of methamphetamine with the intent to distribute. Ronnie Mikel Brown, Tina Wynette Easley, Michael Thor Guinn, Tommy Dare Hancock, David Wayne Holt, Jeff Jeremy Johnston, and Benjamin Matthew Melton are also each charged with one count of felon in possession of a firearm. Jorge Ramirez is charged with one count of being an illegal alien in possession of a firearm.
According to the superseding indictment, the defendants were members of, associated with, or performed drug transactions with, various white supremacists organizations or individuals including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “White Knights,” and the “Peckerwoods,” and they engaged in a conspiracy to distribute methamphetamine and other illegal narcotics throughout North Texas and elsewhere. Certain defendants used firearms to further their drug trafficking activities.
Despite their differences, the ABT, Aryan Circle, and White Knights gangs, along with the Peckerwoods, often collaborated with each other and with Mexican gangs and cartels for purposes of drug distribution or other illegal ventures. Peckerwood is a term used to describe an individual who, although not a member, shared a white supremacist ideology or aligned his or herself with these white supremacist gangs.
Up to 20 of the above-listed defendants were members or close associates of the ABT. Up to eight were members or close associates of the Aryan Circle. One was a member of the White Knights and one was a Peckerwood. Two were members of the La Familia drug cartel. Some of the defendants had familial relationships, some were engaged in romantic relationships, and some resided together, as outlined in the indictment.
The indictment alleges that from approximately January 2013 to November 2015, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants arranged for the acquisition of methamphetamine and its distribution and delivery. They used stash houses or other locations to store the methamphetamine and acted as intermediaries and brokers to negotiate the acquisition, price, delivery and payment for the quantities of methamphetamine.
Each of the co-conspirators was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, 40 pounds of methamphetamine and 22 firearms were seized.
A 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 statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each substantive count of possession of methamphetamine is 20years in federal prison. The maximum statutory penalty for being a felon in possession of a firearm or for being an illegal alien in possession of a firearm is 10 years in federal prison. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit all real or personal property derived from the proceeds of their offense.
The investigation is being led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Collin County Sheriff’s Office, the Mesquite, Sherman, Denison and Sulphur Springs Police Departments and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney P. J. Meitl is prosecuting.
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Dallas Man Sentenced to 176 Months in Federal Prison for Armed Bank RobberyRead the Press Release
DALLAS — A Dallas man, Kenneth Dale Bruce, 40, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 176 months in federal prison for committing an armed bank robbery in the Dallas-Fort Worth metroplex in October 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
On October 23, 2014, Bruce robbed the Bank of America branch located at 3324 Gus Thomasson Road in Mesquite, Texas. The next day, Bruce robbed a branch of Comerica Bank, located at 11155 Garland Road in Dallas, and during that robbery, he brandished a firearm.
According to documents filed in the case, after committing the armed bank robbery in Mesquite, Bruce drove off in a tan pickup truck. Officers with the Dallas Police Department located the pickup truck in a parking lot approximately three blocks from the bank, and they saw Bruce drive past them in a dark-colored Ford Explorer. Officers attempted to perform a felony stop, but Bruce sped up and attempted to elude officers until he wrecked the vehicle. The bank’s money and the firearm were recovered at the accident scene.
The Federal Bureau of Investigation and the Dallas and Garland Police Departments investigated. Assistant U.S. Attorney John Kull prosecuted.
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Brownwood, Texas, Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Michael Thomas Franks, 44, of Brownwood, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in August 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas. Franks was remanded into custody
According to plea documents filed in the case, Franks used computers at his residence to search the Internet for images and videos of child pornography. In the course of his searches, Franks located, downloaded, and viewed numerous images and videos of child pornography. He also transferred some of the child pornography from his computer to a computer disk that bore the handwritten label, “Pictures Videos,” which contained one or more images of prepubescent 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.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Customs and Border Protection’s (US CBP) Office of Air and Marine, and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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70-Year-Old Lubbock Man Sentenced to 24 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — John Everette Murdock, 70, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 24 months in federal prison, following his guilty plea in August 2015 to an indictment charging one count of access with intent to view child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
As noted in today’s sentencing hearing, Murdock, an ex-Marine, suffered injuries while serving in the line of duty in Vietnam. He must surrender to the Bureau of Prisons on December 31, 2015.
According to plea documents filed in the case, Murdock used a computer to access, with intent to view, various images of child pornography. He used file-sharing software to search for material that was likely to result in his access to child pornography, which he would view and then delete. Law enforcement seized that computer and hard drive during the execution of a search warrant at his residence in late August 2014.
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 (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Local Immigration Lawyer Sentenced to 24 Months in Federal Prison on Aggravated Identity Theft ConvictionRead the Press Release
DALLAS — Sherin Thawer, a Dallas attorney, was sentenced today by U.S. District Judge Jane J. Boyle to 24 months in federal prison, following her guilty plea in August 2015 to a federal felony offense stemming from her work in representing aliens, that is, non-U.S. citizens, before the U.S. Department of Homeland Security (DHS), U.S. Citizen and Immigration Service (USCIS), announced U.S. Attorney John Parker of the Northern District of Texas.
Thawer, 45, pleaded guilty to one count of aggravated identity theft. She was initially on pre-trial release following her arrest on an indictment in February 2015; however, she has been in custody since June 15, 2015, when the Court revoked her pre-trial release after finding she violated its conditions by continuing to practice immigration law.
According to documents filed in the case, Thawer represented aliens before USCIS when they were applying for various types of visas to enter or remain in the U.S., including through a U Nonimmigrant Status or U-Visa. To be eligible for a U-Visa, the alien must have been a victim of a certain crime, suffered mental or physical abuse because of the crime, and helped law enforcement in the investigation and/or prosecution of the crime. In addition to the U-Visa application, applicants must submit a Law Enforcement Certification form completed and signed by the certifying official for the law enforcement agency that investigated and/or prosecuted the crime for which the alien was a victim.
On approximately March 21, 2012, Thawer, without authority, knowingly used the name and badge number of a specific police officer to complete the Law Enforcement Certification form that was submitted with a U-Visa application. She knew the officer had not completed the form and that his signature on the form was forged.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Irving Police Department, and USCIS investigated. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley prosecuted.
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Armed Robbers Face Life in Federal Prison After Federal Jury Convicts Them on Hobbs Act and Firearms OffensesRead the Press Release
DALLAS — Two north Texas men were convicted late this morning by a federal jury on an array of federal charges stemming from their armed robberies of several Murphy Oil gas/convenience stores in the Dallas-Fort Worth metroplex in June 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Andre Levon Glover, 21, and Maurice Lamont Davis, 28, both of Fort Worth, Texas, were each convicted on one count of conspiracy to interfere with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. In addition, Glover was convicted on four counts, and Davis on two counts, of interference with commerce by robbery. Davis was also convicted on one count of being a felon in possession of a firearm.
The government presented evidence at trial that the defendants committed armed robberies of Murphy Oil USA stores located at: 170 N. Interstate 35E in Lancaster, Texas, on June 16, 2014; 3102 W. Wheatland Road in Dallas on June 21, 2014; 950 N. Walnut Creek Drive in Mansfield, Texas, on June 22, 2014; and 100 Walton Way in Midlothian, Texas, also on June 22, 2014. They used a sawed-off shotgun to rob these stores at gunpoint and steal thousands of dollars of cigarettes from each of the locations and nearly $10,000 in cash from one of the locations. After the last robbery, they led police on a high-speed chase before being arrested.
Each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine for the conspiracy conviction and each robbery conviction. Each of the firearm offenses carries a maximum statutory penalty of life in federal prison and a $250,000 fine. The felon in possession count carries a statutory maximum sentence of 10 years in federal prison and a $250,000 fine.
Sentencing is set for March 17, 2016, before U.S. District Judge Reed C. O’Connor.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alvarado, Dallas, Lancaster, Mansfield, and Midlothian Police Departments investigated the case.
Assistant U.S. Attorneys John Kull and Brian McKay are in charge of the prosecution.
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USPlabs and Corporate Officers IndictedRead the Press Release
DALLAS — An 11-count indictment has been unsealed today against USPlabs LLC, a Dallas firm that formerly manufactured highly popular workout and weight loss supplements. The indictment charges USPlabs, S.K. Laboratories Inc. and their operators with a variety of charges related to the sale of those products. The announcement was made today at a news conference in Washington, D.C. in which officials announced a nationwide sweep of dietary supplement makers and marketers.
Jacobo Geissler, 39, of University Park, Texas, the CEO of USPlabs; Jonathan Doyle, 37, of Dallas, the president of USPlabs; Matthew Hebert, 37, of Dallas, responsible for product packaging design at USPlabs; Kenneth Miles, 69, of Panama City, Florida, the quality assurance executive in charge of compliance at USPlabs; S.K. Laboratories, Inc.; Sitesh Patel, 32, of Irvine, California, the vice president of S.K. Laboratories; and Cyril Willson, 34, of Gretna, Nebraska, a consultant to USPlabs, are charged with various counts associated with the unlawful sale of dietary supplements. Additionally, USPlabs, Geissler, Doyle and Hebert are charged with obstruction of a Food and Drug Administration (FDA) proceeding and conspiracy to commit money laundering.
All defendants, with the exception of Doyle and Miles were arrested earlier today. Along with the arrests, FDA and Internal Revenue Service (IRS) Criminal Investigation (CI) special agents seized assets in dozens of investment accounts, real estate in Dallas County, and a number of luxury and sports cars.
The indictment alleges that USPlabs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USPlabs told some of its retailers and wholesalers that it used natural plant extracts in products called Jack3d and OxyElite Pro, when in fact it was using a synthetic stimulant manufactured in a Chinese chemical factory.
The indictment also alleges that the defendants sold some of their products without determining whether they would be safe to use. To the contrary, as the indictment notes, the defendants knew of studies that linked the products to liver toxicity.
The indictment further alleges that USPlabs and its principals told FDA in October 2013 that it would stop distribution of OxyElite Pro, once the product had been implicated in an outbreak of liver injuries. The indictment alleges that, despite this promise, USPlabs engaged in a surreptitious, all-hands-on-deck effort to sell as much OxyElite Pro as it could as quickly as possible. It was sold at dietary supplement stores across the nation.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
Upon conviction, however, the maximum statutory penalties are: conspiracy to commit wire fraud and each wire fraud count – 20 years and a $250,000 fine; conspiracy to commit money laundering – 20 years and a $500,000 fine, or twice the value of property involved in the transaction; obstruction of an agency proceeding and conspiracy to introduce misbranded food – five years and a $250,000 fine; introduction of adulterated food into interstate commerce with an intent to defraud and mislead – three years and a $10,000 fine; and introduction of misbranded food into interstate commerce and the introduction of adulterated dietary supplement into interstate commerce – one year and a $10,000 fine.
The FDA and IRS CI investigated the case. Assistant U.S. Attorneys Errin Martin and P. J. Meitl of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch are in charge of the prosecution.
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28 Charged in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers' Compensation ProgramRead the Press Release
DALLAS — Twenty-eight defendants, from the Dallas-Fort Worth metroplex, have been charged with various crimes related to their roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
The criminal felony Information filed today charges 21 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee in the scheme. Signed plea papers were filed today for each of the 28 defendants indicating their intent to plead guilty. Arraignment dates have not yet been set for those pleas.
“These charges are the result of a two-year investigation led by special agents with the U.S. Postal Service Office of Inspector General and the Department of Labor Office of Inspector General,” said U.S. Attorney Parker. “Their dogged determination and skilled investigative techniques were crucial in exposing and dissecting this sprawling corruption scheme. This office will continue to vigorously pursue those who fraudulently obtain benefits at the expense of those who have a legitimate need.”
According to the filed Information and plea papers, the 28 below-listed defendants, and others yet uncharged, engaged in a complex and sprawling health care fraud scheme designed to improperly siphon and steal money from DOL’s OWCP:
Larry Washington, 63, of Desoto
Dr. Robert Mandell, 72, of Plano
Ifeyani “Tim” Egbuchunam, 60, of Plano
Henrietta Price, 51, of Cedar Hill
David Banda, 33, of Duncanville
Willie Atkins, 71, of Lancaster
Perry Rowell, 55, of Garland
McArthur Baker, 68, of Dallas
Doris Berry, 52, of Dallas
Byron Bonds, 43, of Mesquite
Michael Bowen, 58, of Dallas
Patricia Brown, 62, of Benbrook
Calandra Cumby, 44, of Dallas
Tonya Evans, 51, of Dallas
Darrell Glasco, 50, of Dallas
Regina Howard, 61, of Desoto
Willard Johnson, 64, of Desoto
Palante McClain, 47, of Cedar Hill
Rhonda McCoy, 47, of Arlington
Vontril McClemore, 61, of Carrollton
Regina Mitchell, 58, of Dallas
Wanda Proctor, 62, of Duncanville
Rhonda Sanders, 50, of Dallas
Clarinda Scott, 56, of Arlington
Patricia Skinner, 59, of Desoto
Janyce Ingram, 53, of Desoto
Brenda Hall, 65, of Dallas
Cassandra Sims, 60, of Dallas
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services. As a result of the guilty pleas associated with the Information, the government anticipates that it will prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
Larry Washington was a licensed professional counselor and ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Washington also billed for services that he allegedly provided to patients in Dallas when he was traveling and not even present in Dallas. He also billed for services he allegedly provided to patients while he was in the hospital during that time for his own medical treatment. Washington also asked claimants to falsify medical documentation, indicating they had received services on days when, in fact, they had not. Upon completion and submission of the forms, the claimants received $100 for each of the forms they completed.
Dr. Robert Mandell was a licensed psychologist with more than 35 years of experience in treating patients. He is also the President, CEO, Clinical Director, and part owner of AAA Mental Health, LLC, which maintained offices in Richardson, Texas. He prepared fraudulent psychological reports to be submitted to OWCP. These psychological reports were crucial to the scheme because for claimants to receive the proper upgrades and certifications, they needed a diagnosis and certification related to their mental state as it related to their physical injury. In many, the alleged mental aspect of the injury is what caused a lengthy delay to return to work.
Henrietta Price and Willie J. Atkins were licensed professional counselors and provided counseling services at Mind Spa, Inc. Price also treated patients under her own company, Lifeline Counseling. Atkins ran his own practice, Atkins Counseling Center.
Perry Rowell was a Senior Claims Examiner at the OWCP. With more than 22 years of federal government service, Rowell was assigned to the Dallas District Office. For years, he accepted monthly cash bribes, totaling $24,000, from Ifeanyi “Tim” Egbuchunam, a former DOL claims examiner who represented claimants before the OWCP. In return, Rowell expedited payments and decisions and immediately responded to Egbuchunam’s telephone calls about technical case status questions.
Defendant David Banda worked at Mind Spa, Inc. in February 2009 and served as an office administrator and biller for Washington’s businesses; he reported directly to Washington.
Washington, Mandell, Price, Banda and Atkins are each charged with one count of conspiracy to commit health care fraud. That offense, upon conviction, carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
Egbuchunam is charged with one count of bribery of a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Rowell is charged with one count of bribery received by a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Baker, Berry, Bonds, Bowen, Brown, Cumby, Evans, Glasco, Howard, Johnson, McClain, McCoy, McClemore, Mitchell, Proctor, Sanders, Scott, Skinner, Ingram, Hall and Sims are also each charged with making a false statement or fraud to obtain federal employees’ compensation. That offense, upon conviction, carries a maximum statutory penalty of one year in federal prison and a $250,000 fine.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are in charge of the prosecution.
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Federal Jury Convicts Brothers in Visa Fraud CaseRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted two brothers on felony offenses stemming from a conspiracy they ran, from approximately March 2005 to February 2011, to commit visa fraud to secure a low-cost workforce at their information technology consulting company headquartered in Carrollton, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Atul Nanda, 46, and his brother, Jiten “Jay” Nanda, 44, were each convicted on one count of conspiracy to commit visa fraud, one count of conspiracy to harbor illegal aliens, and four counts of wire fraud. The conspiracy to commit visa fraud count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. The conspiracy to harbor illegal aliens count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each wire fraud count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Both men were allowed to remain on bond, pending a detention hearing on Friday, November 13, 2015. A sentencing date was not set.
Dibon Solutions is an information technology consulting company located on Chenault Drive in Carrollton; it is a family operation created by the Nanda family. Atul and Jiten Nanda created, established and ran the corporation that they used to commit fraud through the H1-B visa program.
The H-1B visa program allows businesses in the U.S., such as Dibon, to temporarily employ foreign workers with specialized or technical expertise in a particular field such as accounting, engineering or computer science.
The government presented evidence at trial that as part of their scheme, the Nanda brothers recruited foreign workers with expertise who wanted to work in the U.S. They sponsored the workers’ H-1B visa with the stated purpose of working at Dibon headquarters in Carrolton, but, in fact, did not have an actual position at the time they were recruited and knew the workers would ultimately provide consulting services to third-party companies located throughout the U.S. Contrary to representations made by the conspirators to the workers (and the government), Jay and Atul Nanda directed that the workers only be paid for time spent working at a third-party company and only if the third-party company actually first paid Dibon for the workers’ services. Additionally, in Dibon’s visa paperwork, the conspirators falsely represented that the workers had full-time positions and were paid an annual salary, as required by regulation to secure the visas.
This scheme, according to evidence presented at trial, provided the conspirators with a labor pool of inexpensive, skilled foreign workers who could be used on an “as needed” basis. The scheme was profitable because it required minimal overhead and Dibon could charge significant hourly rates for a computer consultant’s services. Thus, the Nandas, as Dibon’s owners, earned a substantial profit margin when a consultant was assigned to a project and incurred few costs when a worker was without billable work. This scheme is known as “benching.” Dibon actively recruited H-1B workers for the “bench.”
The government presented further evidence that the Nandas required the H-1B visa candidates to pay the processing fees that the law requires to be paid by the company. The evidence at trial showed that the Nandas attempted to hide this by having the H-1B candidates pay the fees directly to Dibon either with cash or a check written to “Dibon Training Center.”
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the U.S. Department of State.
Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorney Paul Yanowitch prosecuted.
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Former Dallas County Probation Employee Sentenced to 97 Months in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Selena Ball, 30, of Desoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 97 months in federal prison, following her guilty plea in April 2015 to one count of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Ball, who was remanded into federal custody following her sentencing, was a Pretrial Bond/Electronic Monitoring Officer for the Dallas County Department of Criminal Justice. As part of her duties, she was assigned to monitor an inmate, co-defendant Patrick D. Lenard, 33.
The Court noted Ball’s abuse of trust as a member of the Dallas County Probation Department, and the Department’s director testified as to the devastating effect the case had on her department.
Ball and 10 co-defendants, including Lenard, were charged in a November 2014 indictment with various felony offenses, including conspiracy, drug trafficking, kidnapping, firearms offenses, witness intimidation/tampering, and records destruction, stemming from their involvement in a violent drug trafficking operation (DTO) that operated in South Dallas and the Dallas County Jail. One of the co-defendants, Rodney Wynn, 34, of Kaufman, Texas, who was on the State of Texas’s most wanted list, was apprehended and is set for trial in January 2016. The remaining defendants have all pleaded guilty. To date, seven have been sentenced, receiving sentences ranging from 46 months to 210 months in federal prison.
According to documents filed in the case, Ball and Lenard were involved in a romantic relationship despite her position and despite the conflict this relationship created. Lenard convinced Ball to alter, modify or fail to report violations of his conditions of release. For example, Lenard was required to limit his travel to certain areas within Dallas to avoid contact with co-conspirators. Part of Ball’s responsibility was to review and identify locations Lenard visited as reflected in the GPS records from his monitoring bracelet. Ball, however, failed to report violations of these conditions by Lenard. In fact, Lenard violated his conditions of release by approaching, confronting and attempting to intimidate coconspirators and witnesses to a kidnaping.
From November 26, 2012, to approximately November 18, 2014, Lenard conducted and managed drug-trafficking activities form his jail cell in the Dallas County Jail. During that time, he called his co-conspirators, including Ball. On multiple occasions, Lenard and Ball had phone conversations regarding illegal narcotics transactions and money obtained from those transactions. Lenard instructed Ball to hide the drug proceeds, and in one conversation, Ball actively counted the drug proceeds. On some of the phone calls, other individuals were conferenced in and Lenard, Ball and the other individual would discuss illegal naracotics transactions and money obtained from those transactions.
The Texas Department of Public Safety (DPS), the Drug Enforcement Administration, the FBI and the Dallas Police Department led the investigation.
Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorneys Errin Martin and P. J. Meitl are prosecuting the case.
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Federal Jury Convicts Dallas Man on Child Pornography ChargeRead the Press Release
DALLAS — Following a one and one-half day trial before U.S. District Judge Jane J. Boyle, and less than three hours of deliberation, a federal jury has convicted 60-year-old Jack Marty Taylor, of Dallas, on one count of attempted enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Taylor, who had been on bond, was remanded into federal custody after the verdict. He faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. A sentencing date was not set.
The government presented evidence at trial that on September 16, 2014, Taylor posted a Backpage advertisement entitled, “Sugar Dad looking for his son – 50.” Taylor stated he was looking for a younger guy for companionship and stated, “You must be 18-30ish…I’m looking for companionship and love.” In return for that, Taylor offered to “give you a nice, safe place to live, 3 meals a day, spending money, clothing, shoes, etc.”
On September 17, 2014, at 12:33 p.m., a detective with the Garland Police Department, posing as a 14-year-old boy, responded to the advertisement via email. Several emails transpired in which Taylor suggested they communicate via text messaging. As the text messaging began, Taylor asked more about the boy’s age, confirmed he was a minor, where he lived, and what school he attended. Taylor almost immediately began to text the boy about meeting and what they would do when they met. Taylor exchanged numerous text messages with the boy, including sexually explicit text messages, throughout the day.
The government presented further evidence that between September 17, 2014, and February 4, 2015, Taylor suggested meeting the boy in person 40 times, and each time the boy avoided meeting Taylor. In fact, after just three hours of emails and texts with the boy, and after repeatedly suggesting that the two meet, Taylor texted, “I was scared of you at first. I thought maybe you were a cop.” On February 4, 2015, the day Taylor and the boy were set to meet, Taylor again asked him if he was a cop. Taylor indicated he had experience in these types of matters and advised, “That’s an important thing to ask when you’re meeting someone for the first time.” Law enforcement arrested Taylor on February 4, 2015, at the agreed meeting location.
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. Special Assistant U.S. Attorney Lara Burns and Assistant U.S. Attorney Camille Sparks are in charge of the prosecution.
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Defendants Convicted in Methamphetamine Conspiracy Sentenced to Lengthy Federal Prison TermsRead the Press Release
FORT WORTH, Texas — Four defendants who pleaded guilty this summer to their respective roles in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth area, and elsewhere, have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge John McBryde sentenced the four on Friday as follows: Humberto Macedo, 27, of Dallas, 360 months; Fernando Perez, a/k/a “Fernando Perez-Reynoso,” 22, of Mexico, 240 months; Guadalupe Macedo, 23, of Dallas, 240 months; and Ariceli Munoz, 27, formerly of South Carolina, 48 months.
Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, from approximately April 1, 2014 to March 3, 2015, the four defendants knowingly and intentionally conspired to possess with intent to distribute at least 50 grams of methamphetamine.
During the conspiracy, Humberto Macedo distributed more than 45 kilograms of methamphetamine. Perez acted as Humberto Macedo’s primary runner. Guadalupe Macedo purchased more than 1.5 kilograms of methamphetamine from Humberto Macedo. Munoz assisted Humberto Macedo by counting money from the drug transactions and brokering methamphetamine transactions.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Joshua Burgess prosecuted.
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Methamphetamine Supplier Sentenced to Maximum Statutory Penalty of 20 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Corey Duane Bowles, 43, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 240 months (20 years) in federal prison, the statutory maximum penalty, for possessing methamphetamine with the intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Bowles pleaded guilty in July 2015 to an indictment charging the offense.
According to documents filed in the case, Bowles admitted that on March 6, 2015, he knowingly and intentionally possessed, with the intent to distribute, methamphetamine when he sold methamphetamine in an undercover operation in Fort Worth.
The Drug Enforcement Administration, the Weatherford/Parker County Special Crimes Unit, and the Weatherford Police Department investigated the case. Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
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Fort Worth Woman Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Rachel Adams, 30, of Fort Worth and Weatherford, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve 240 months (20 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Adams pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute at least 50 grams of methamphetamine.
According to documents filed in the case, since approximately 2014, Adams received multi-ounce and pound quantities of methamphetamine from a coconspirator. Other coconspirators received multi-ounce and pound quantities of methamphetamine on consignment form Adams. In turn, Adams and others distributed methamphetamine to various customers in the Benbrook, Fort Worth, Arlington, and Wichita Falls, Texas areas.
Adams’ sentence is to be served concurrently with any sentence she may receive in related cases pending in Tarrant County.
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 Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Former Archer County Justice of the Peace Faces up to 10 Years in Federal Prison for Stealing County FundsRead the Press Release
WICHITA FALLS, Texas — Joseph Charles Boyle, the former Justice of the Peace for Precinct 2 in Holliday, Texas, appeared in federal court this afternoon, before U.S. Magistrate Judge Robert K. Roach, and pleaded guilty to a felony Information charging one count of theft concerning programs receiving federal funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyle, 63, of Holliday, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. He could also be ordered to pay restitution. He will remain on bond pending sentencing, which is set for March 14, 2016, before U.S. District Judge Reed C. O’Connor.
Boyle resigned his position as Justice of the Peace yesterday. In late August 2015, he retired from the Texas Department of Criminal Justice, where he worked as a correctional officer at the James V. Allred Unit in Iowa Park, Texas
According to documents filed in the case, Boyle served in his elected position in Archer County, Texas, since January 2003. As Justice of the Peace, Boyle was authorized to impose fines and assess fees on individuals cited with a variety of violations, such as minor in possession of alcohol, speeding, illegal passing, driving without a valid license, and other traffic violations.
From approximately January 1, 2013, through May 5, 2015, on numerous occasions, Boyle stole, embezzled, and obtained by fraud, funds that he collected as payment of fees, fines and penalties, and failed to turn that money over to its rightful owner, Archer County.
Boyle told individuals who had been cited with a violation that the fine was a certain amount, obtained payment from the individual in that amount, and provided the individual with a receipt in that amount. Boyle, however, then kept a portion of the individual’s payment and falsely reported to Archer County that the fine assessed, and the amount received as payment of the fine, was less than the amount he had actually assessed and received.
To help facilitate his theft, Boyle often requested that individuals pay their fines in cash. Frequently, he kept a portion of the cash the individual paid, and then purchased a money order to make the payment to Archer County, all in an effort to disguise the fact that he had been paid in cash.
Boyle admitted that the total amount of money that he stole, embezzled and obtained by fraud from Archer County was more than $40,000.
The FBI investigated the case. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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Former Amarillo Resident Pleads Guilty to Attempted Child Sex Trafficking OffenseRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, pleaded guilty this afternoon before U.S. Magistrate Judge Clinton E. Averitte to one count of attempted sex trafficking of a child, announced U.S. Attorney John Parker of the Northern District of Texas.
Ragsdale, formerly of Amarillo, Texas, and most recently Dallas, faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. A sentencing date was not set.
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 is in charge of the prosecution.
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Convicted Former Parole Officer Sentenced for Accepting Money from a Parolee Under Her SupervisionRead the Press Release
DALLAS — Breanna Polk, 32, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to six months in federal prison, following her guilty plea in June 2015 to one count of honest services wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Polk, who has been on bond, must surrender to the Bureau of Prisons on January 6, 2016.
According to plea documents filed in the case, on August 2, 2007, a parolee with the Texas Department of Criminal Justice (TDCJ) reported to his parole officer, Polk, at the Garland, Texas, parole office. Polk advised the individual she planned to take a trip to Florida to celebrate her birthday. The parolee left approximately $500 on Polk’s desk. On at least two other occasions between August 2007 and March 2010, the same individual paid more than $500 to receive favorable treatment from Polk concerning the conditions of his parole.
In March 2010, the parolee absconded to Mexico to avoid DEA law enforcement in connection with his illegal drug distribution. The parolee paid Polk $2,000 to assist him in avoiding law enforcement by indicating he reported to parole, when he had not. Additionally, Polk agreed to check for any arrest warrants and notify the parolee if he had an active arrest warrant. On June 8, 2010, Polk conducted a search on a National Crime Information Center (NCIC) database to determine if the parolee had an active arrest warrant; Polk transmitted the search by means of a wire communication.
The FBI and the TDCJ – Office of the Inspector General investigated the case. Assistant U.S. Attorney Katherine Pfeifle was in charge of the prosecution.
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“Pimp” and “John” Convicted in Child Sex Trafficking Conspiracy Involving 12-Year-Old Female VictimRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Jane J. Boyle, a federal jury has convicted an Irving, Texas, man for his role in a conspiracy to commit sex trafficking of a female child. His co-defendant in the case pleaded guilty to his role in the conspiracy. U.S. Attorney John Parker of the Northern District of Texas made the announcement this afternoon.
The jury convicted Brady Rodriguez-Cruz, a/k/a Marcos Antonio Rodriguez-Mejia, 33, on one count of conspiracy to commit sex trafficking of children. He also pleaded guilty to one count of possession of counterfeit documents. On October 22, 2015, Luis Rivera, 19, also of Irving, pleaded guilty to one count of conspiracy to commit sex trafficking of children.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” The government presented evidence at trial that from approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left.
The government also presented evidence at trial that on January 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The conspiracy count carries a maximum statutory penalty of life in federal prison and a $250,000 fine. The counterfeit documents count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Rivera is scheduled to be sentenced by Judge Boyle on February 4, 2016, and Rodriguez-Cruz’s sentencing date has not been set.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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Eleven Defendants Plead Guilty to Roles in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Eleven defendants who were indicted in September for their roles in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, pleaded guilty last week before U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each below-listed defendant pleaded guilty to one count of conspiracy to distribute five grams or more of methamphetamine, a Schedule II controlled substance:
Mark Anthony Peysen, 54
Tamara Ann Beasley, 43
Clinton Ray Durham, 47
John Monroe Drullinger, Jr., a/k/a “Johnny D,” 53
Chad Edward Fluharty, 35
Juan Anthony Gabaldon, 31
Vincent Mark Hinson, 36
Curtis Lisle Shawver, 28
James Anthony Streadwick, 54
Michael David Thompson, 50
Cody Shane Walsh, 30Each defendant faces a statutory penalty of at least five years in federal prison and up to 40 years in federal prison and $5 million fine. Each defendant is scheduled to be sentenced on February 22, 2016.
According to documents filed in the case, from approximately March 2014 to August 12, 2015, these defendants conspired together, and with others, to possess with intent to distribute and distribute five grams or more of methamphetamine. They arranged to acquire the methamphetamine and used residences and other locations in the Northern District of Texas to package and distribute it to customers. They delivered and distributed, and coordinated the delivery and distribution of, quantities of methamphetamine. They also acted as intermediaries and brokers to negotiate the acquisition, price, sale and delivery of the methamphetamine, as well as the collection of payment for the 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 is in charge of the prosecution.
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Defendant Sentenced to Serve 30 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — A defendant who pleaded guilty this summer to an indictment charging one count of distribution of methamphetamine, was sentenced on Friday by U.S. District Judge John McBryde to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Milton Puentes, 34, was arrested in May 2015 in the Los Angeles area on the indictment filed in the Northern District of Texas. He made his initial appearance in federal court in Los Angeles and was released on bond. After he entered his guilty plea in U.S. District Court in Fort Worth on July 17, 2015, Judge McBryde remanded him into federal custody.
According to documents filed in the case, on April 4, 2013, Puentes shipped, or caused to be shipped, approximately one pound of methamphetamine from California to Fort Worth via UPS. The methamphetamine arrived the following day, and the Drug Enforcement Administration (DEA) intercepted it.
The DEA investigated the case, and Assistant U.S. Attorney Shawn Smith prosecuted it.
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Dallas Man Admits Aiming a Laser Pointer at an AircraftRead the Press Release
DALLAS — Orlando Jose Chapa, 37, of Dallas appeared before U.S. District Judge Reed C. O’Connor this morning and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Chapa, who will remain on bond pending sentencing, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. A sentencing date has not been set.
According to documents filed in the case, on or about May 30, 2015, in the Dallas Division of the Northern District of Texas, Chapa knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter and at the flight path of that aircraft. Chapa aimed the laser at the helicopter from his driveway as it was flying overhead.
The FBI, Texas DPS and the Dallas Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
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Wichita Falls Man Sentenced to 110 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
WICHITA FALLS, Texas — Doty Lee Standridge, 31, of Wichita Falls, Texas, was sentenced this week by U.S. District Judge Reed C. O’Connor to 110 months in federal prison following his guilty plea in June 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Standridge’s co-defendant in the case, Joshua Antonio Ramirez, 30, of Lawton, Oklahoma, pleaded guilty last month to the same offense and is scheduled to be sentenced on January 4, 2016. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the case, from approximately January 2013 until November 2014, Standridge obtained quantities of methamphetamine from suppliers, including Ramirez, and he distributed that methamphetamine in the Wichita Falls area and elsewhere.
The quantities of methamphetamine that Standridge obtained and distributed varied. He frequently obtained methamphetamine in one to two-ounce quantities and distributed one-eighth ounce (approximately 3.5 gram) and one-quarter ounce (approximately 7.0 gram) quantities.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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Federal Criminal Complaint Charges Crosby County Man in Extortion SchemeRead the Press Release
LUBBOCK, Texas — Shannon Dale Smith of Crosbyton, Texas, appeared this afternoon in federal court, before U.S. Magistrate Judge Nancy M. Koenig, on a federal criminal complaint stemming from his attempt to extort more than $500,000 from a Crosby County man, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith, 46, has been in custody since his arrest late Thursday evening, October 29, 2015. Judge Koenig will set a detention hearing at a later date, should one become necessary.
According to the affidavit filed with the complaint, on Tuesday morning, October 27, 2015, Crosbyton resident, Nathan Boardman, received a telephone message on his answering machine that said in a muffled voice: “We are watching you, there is a note on the north door.”
Boardman found the note that stated: “Follow these Instructions and no one will get Hurt. We Have a man watching your daughter. We Have a man watching your Grand daughter. We Have a man watching you and your wife. We are monitoring [sic] your home and cell phone. If you call the police, we will know and someone will be taken from you. If you choose not to participate, someone will be taken from you. You have till Thursday at 9pm to put $525,000 in cash and or gold coins in a bag, duffel style. we [sic] will call you with further instructions. We are watching you. Do what you’re told and no one will be Hurt”.
On the morning of October 29, Boardman received another threatening phone call in which an unknown male stated they had 14 hours to get the money. That evening, the unknown male called and left a message advising they’d better answer or if they didn’t, it would be the last thing they would do.
At approximately 8:00 p.m. that evening, the unknown male caller provided instructions to drop the extortion money. Approximately one hour later, law enforcement staged a delivery of the extortion money at the location indicated. Soon after the drop, a vehicle was observed in the vicinity, and two individuals were observed on foot. Law enforcement immediately confronted the two men, Shannon Dale Smith and a juvenile male, and detained them. At the time of his arrest, Smith had a semi-automatic pistol on his person.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is 20 years in federal prison and a $250,000 fine.
The FBI, Texas Rangers, and Texas Department of Public Safety, Criminal Investigations Division are investigating. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Defendant Sentenced to Serve 30 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — A defendant who pleaded guilty this summer to an indictment charging one count of distribution of methamphetamine, was sentenced on Friday by U.S. District Judge John McBryde to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Milton Puentes, 34, was arrested in May 2015 in the Los Angeles area on the indictment filed in the Northern District of Texas. He made his initial appearance in federal court in Los Angeles and was released on bond. After he entered his guilty plea in U.S. District Court in Fort Worth on July 17, 2015, Judge McBryde remanded him into federal custody.
According to documents filed in the case, on April 4, 2013, Puentes shipped, or caused to be shipped, approximately one pound of methamphetamine from California to Fort Worth via UPS. The methamphetamine arrived the following day, and the Drug Enforcement Administration (DEA) intercepted it.
The DEA investigated the case, and Assistant U.S. Attorney Shawn Smith prosecuted it.
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Arlington Man Sentenced to 15 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — An Arlington, Texas, man, Steven Lass, 33, was sentenced today by U.S. District Judge David C. Godbey to 15 years in federal prison following his guilty plea in April 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in August 2014, an officer with the Midlothian Police Department conducted a traffic stop in Midlothian on a vehicle driven by Steven Lass. The officer noticed that Lass’s front passenger seat was missing. Several tools and electronic devices were found where the seat would be have been located; Lass indicated that the tools and devices were his.
Lass consented to a search of his vehicle. Two iPods that were found were searched, and several images of child pornography were located. A subsequent forensic analysis of the seized material by FBI special agents revealed more than 650 images of child pornography on Lass’s iPods and 1559 images of child pornography on a thumb drive.
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 Midlothian Police Department investigated. Assistant U.S. Attorneys Camille Sparks and Lori Walker prosecuted.
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Alaska Man Sentenced to 70 Months in Federal Prison on Cocaine ConvictionRead the Press Release
WICHITA FALLS, Texas — Kelly Breon Kea of Alaska, was sentenced this week by U.S. District Judge Reed C. O’Connor to 70 months in federal prison following his guilty plea in June 2015 to one count of possession with intent to distribute 500 grams or more of cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Kea, 55, has been in federal custody since his pre-trial release was revoked early last month.
According to documents filed in the case, on September 14, 2014, a Texas Department of Public Safety (DPS) trooper stopped Kea for a traffic violation on US-287 in Wichita Falls. Inside of the trunk of the car were several suitcases, and one of the suitcases contained two hard, brick-like items in its lining.
The trooper removed the items and saw they were two plastic-wrapped and taped bundles, and he suspected they contained compressed cocaine. In fact, the Texas DPS laboratory later confirmed that the substance was cocaine, equaling 2014.83 net grams.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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Carrollton, Texas, Man Sentenced to 84 Months in Federal Prison on Child Porn ConvictionRead the Press Release
DALLAS — A Carrollton, Texas, man, Jordan Michael Porter, 29, was sentenced this week by U.S. District Judge Sam A. Lindsay to 84 months in federal prison, following his guilty plea in February 2015 to one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Porter has been in custody since his arrest in July 2014 on a related federal indictment.
According to documents filed in the case, the investigation began when a parent found a photo of their 15-year-old minor female child kissing what looked to be a much older man. When questioned by the parent, the minor admitted she had met then 28-year-old Porter online a few weeks earlier. The parent notified the Garland Police Department.
The investigation revealed that the minor female had communicated with Porter via text, email and phone calls. They had video-chatted and had met on previous occasions and engaged in sexual activity.
An undercover officer took over the minor’s online account and in subsequent chats with Porter, they agreed to meet, at the usual place, on July 2, 2014. Porter was arrested when he arrived at the location.
Porter admitted he knew the girl was age 15. He admitted she sent lewd and lascivious photos of her partially clothed in a bathrobe, and that on three of the four occasions they met, they had engaged in sexual activity.
The matter 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. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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Tarrant County Men Sentenced for Running $2.4 Million Ponzi SchemeRead the Press Release
FORT WORTH, Texas — Two Tarrant County men were sentenced to lengthy federal prison sentences following their guilty pleas earlier this year to a conspiracy charge stemming from their operation of an investment Ponzi scheme they ran from 2004 through 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Kurtis Keith Lowe, 63, of Fort Worth, Texas, and Robert Allen Blackburn, 49, of Arlington, Texas, were each sentenced on Friday, by U.S. District Judge John McBryde, to 60 months in federal prison and ordered to pay $2,373, 462 in restitution, jointly and severally. Each must surrender to the Bureau of Prisons on November 13, 2015.
Both Lowe and Blackburn pleaded guilty in July 2015 to one count of conspiracy to commit mail fraud.
According to documents filed in the case, in 2004, Blackburn, a licensed insurance agent, convinced a victim to invest money in Omni Capital Management Trust (OCMT), an entity created merely as a convenience for Lowe, OCMT’s sole owner. Blackburn knew OCMT was not a functioning company. Lowe deposited the investor’s check into OCMT’s business bank account and gave the proceeds to Blackburn. Lowe and Blackburn repeated this procedure several times.
By 2007, Blackburn was regularly recruiting individuals to invest in OCMT using materially false representations about OCMT. In particular, Blackburn falsely represented that victims’ funds would be invested in an annuity fund, when in fact, he knew the money would not be invested at all.
To entice investors to make multiple investments, Lowe and Blackburn created more bogus companies, including Amwest Capital Management (AMWEST) and National Fidelity Management (NFM). Lowe also opened accounts at an out-of-state mail service, and established separate telephone numbers for each company, to make investors believe the bogus companies were legitimate.
When investors requested account statements or tax forms, Blackburn would advise Lowe how much the investor had deposited, and Lowe would generate forms that falsely showed the investors’ money had been invested and had, in fact, appreciated.
Between January 2007 and April 2014, Blackburn solicited more than $2.4 million from 21 different investors using false material representations. None of the money was invested.
The FBI investigated the case.
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Grand Prairie, Texas, Man Sentenced to Statutory Maximum of 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Vasni Molina, 30, of Grand Prairie, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to the statutory maximum sentence of 20 years in federal prison following his guilty plea to an information charging one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Molina has been in federal custody since he entered his guilty plea in June 2015.
According to documents filed in the case, an investigation by the FBI to identify individuals who used the Internet to distribute child pornography led to the identification of an IP address that was eventually linked to Molina. In February, an investigator downloaded 11 files from that IP address; nine of those files contained child pornography.
A federal search warrant was executed at Molina’s residence on March 30, 2015, and special agents with the FBI seized a laptop computer and computer media. Molina admitted he had used a file-sharing network to view and download images and videos of child pornography. He stated he had been viewing child pornography for more than three years and that approximately 75% of the 100 videos he had on his laptop would be child pornography. He admitted downloading hundreds of files of child pornography over the past three years.
A forensic analysis, however, located more than 800 videos of child pornography on Molina’s computer and other media. Molina admitted he received and possessed videos that included bondage and sadistic acts involving minors and that the majority of his child pornography collection was videos of prepubescent children.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Plano Police Department investigated, and Assistant U.S. Attorney Camille Sparks prosecuted.
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Former Amarillo Resident Indicted on Sex Trafficking and Obscenity ChargesRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, was charged in a federal indictment that was just unsealed with two counts of attempted sex trafficking of a child and one count of attempted transfer of obscene material to a child. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Ragsdale, formerly of Amarillo, Texas, and most recently Dallas, made his initial appearance in federal court late yesterday before U.S. Magistrate Judge Clinton E. Averitte, who ordered Ragsdale to remain in federal custody, pending a detention hearing set for Monday.
Count one of the indictment alleges that on December 31, 2014, Ragsdale attempted to recruit an individual, “J.B.,” knowing that “J.B.” was under 18 years of age and would be caused to engage in a commercial sex act.
Count two of the indictment alleges that on March 30, 2015, Ragsdale attempted to recruit another individual, “A.M.,” knowing that “A.M.” was under 18 years of age and would be caused to engage in a commercial sex act.
Count three of the indictment alleges that on March 30, 2015, Ragsdale used a cell phone and the Internet to transfer obscene matter to another individual who was under 16 years of age.
A 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 statutory penalty, per count, for attempted sex trafficking of a child is not less than 10 years or life in federal prison and a $250,000 fine. The maximum statutory penalty for attempted transfer of obscene material to a minor is 10 years in federal prison and a $250,000 fine.
The Amarillo Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Dallas Men Sentenced on Cocaine, Heroin and Firearms ConvictionsRead the Press Release
DALLAS — Two Dallas men have been sentenced to lengthy federal prison sentences following their guilty pleas to drug distribution and firearms offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Felix Medina, 32, was sentenced by U.S. District Judge Sam A. Lindsay on Monday to serve a total of 108 months in federal prison. Co-defendant Jesse Rodriguez, 36, received the same sentence in June 2015. Each defendant pleaded guilty to one count of conspiracy to distribute cocaine and heroin and one count of possessing a firearm in furtherance of that crime.
According to documents filed in the case, from November 1, 2013 through approximately February 21, 2014, Medina and Rodriguez conspired together and with others to distribute, and to possess with intent to distribute, cocaine and heroin in Dallas. During that same time, Medina and Rodriguez possessed numerous firearms in furtherance of the conspiracy.
Medina and Rodriguez had two residences on Angelina Drive in Dallas – each next door to the other – from which they would sell the cocaine and heroin, store it, store the drug proceeds, and possess firearms for their protection, and the protection of the drugs and drug sales proceeds.
When special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and local law enforcement executed a search of the residences in February 2014, they found, among other things, approximately 223 grams of suspected cocaine, more than $18,000 in cash, more than 5,000 rounds of ammunition, approximately 40 firearms, including the one Rodriguez was carrying in his pants’ waistband, video surveillance equipment, and equipment to facilitate communication between the two residences.
ATF investigated the case and Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.
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