Northern District of Texas
Press releases recorded for this federal judicial district.
Dallas Gang Member Sentenced to 252 Months in Federal Prison on Child Sex Trafficking ConvictionRead the Press Release
DALLAS — A Dallas man, Trenton McLemore, 29, who facilitated his 16-year-old girlfriend’s commercial sex acts, and pleaded guilty in July 2015 to one count of sex trafficking of children, was sentenced today to 252 months (21 years) in federal prison by U.S. District Judge Barbara M. G Lynn. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
McLemore, a documented Webb Chapel Crip gang member, has been in custody since his arrest by officers with the Irving Police Department in September 2013.
“Prosecuting human trafficking predators, like Trenton McLemore, is a top priority in north Texas and throughout the Department of Justice,” said U.S. Attorney Parker. “The close working relationships we have established through the North Texas Anti-Trafficking Taskforce have made prosecutions like this possible. That task force, made up of other federal agencies, as well as state and local officials, community service providers, and experts who are already involved in anti-trafficking initiatives, is committed to not only bringing those predators to justice, but to examining the causes of, and solutions to, this violent behavior. In this case, I particularly commend the excellent collaboration and investigative work of the Irving Police Department and HSI Dallas.”
“We are grateful to everyone who worked together in bringing Mr. McLemore to justice for his terrible crimes,” said Chief Larry Boyd of the Irving Police Department. “Their efforts to rescue an underage victim of sex trafficking and take an active sexual offender off the street are highly commendable.”
“For predators convicted of the horrendous crime of sex trafficking minors, there are severe consequences in the form of lengthy prison sentences and a lifetime stigma, as Mr. McLemore has learned firsthand,” said Katrina W. Berger, special agent in charge of HSI Dallas. “Homeland Security Investigations employs exhaustive investigative techniques, and routinely works with local, state, federal and international law enforcement to identify and pursue prosecution against these sex trafficking predators, and rescue their victims.”
According to documents filed in the case, McLemore met “Jane Doe” and her family when she was 11-years old. In July 2013, when Jane Doe was 16-years-old, she ran away from home to be with McLemore, and the two began living in motels.
On August 1, 2013, McLemore began facilitating Jane Doe’s commercial sex acts in several ways. He asked friends and family to rent rooms for them at a Super 8 Motel and a Motel 6 in the Dallas area for her to use with commercial sex customers. McLemore also provided Jane Doe a cell phone for her to use to communicate with commercial sex customers. McLemore often used that phone to communicate with Jane Doe’s customers, sometimes posing as her and texting her customers to arrange “dates” and then leaving the motel room shortly before the customer arrived.
McLemore also took sexually explicit photos of Jane Doe that he distributed via text message to potential customers. Often, McLemore would stay near the motel room to act as Jane Doe’s bodyguard while she engaged in the commercial sex acts, and he would return to the room shortly after the customer left to collect the proceeds.
In mid-September 2013, a detective with the Irving Police Department conducting an operation to identify possible victims of human trafficking found a commercial sex advertisement on Mocospace.com with photographs of a female who appeared to be underage. He contacted the number, and after exchanging several messages regarding a potential commercial sex act, they agreed to meet on September 19, 2013, in a specific room at a Super 8 Motel in Irving, Texas.
As McLemore left that room shortly before the “date,” he was seen texting at the same time the detective was receiving messages about the “date.” When the detective arrived and entered the motel room, Jane Doe agreed to engage in a commercial sex act with him. She was then placed in custody and law enforcement determined she was a 16-year-old runaway from Dallas.
McLemore had stayed nearby while that “date” occurred, and his personal items were later found inside that motel room. When law enforcement learned Jane Doe’s age, they arrested McLemore for compelling prostitution of a person under the age of 18 and human trafficking. He has been in custody since that time.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Dallas investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Jury Convicts Four in Pill Mill Operation Run by Plano AnesthesiologistRead the Press Release
DALLAS — Following a nine-day jury trial before Chief U.S. District Judge Jorge A. Solis, a federal jury has convicted a physician and three co-conspirators on felony offenses stemming from their operation of a pill mill and drug distribution conspiracy they ran in Dallas from January 2012 to early December 2013. The announcement was made this morning by U.S. Attorney John Parker of the Northern District of Texas.
Licensed anesthesiologist Theodore E. Okechuku, 59, of Plano, Texas; Emmanuel C. Iwuoha, 52, of Allen, Texas; Elechi N. Oti, 50, of Augusta, Georgia; and Kelvin L. Rutledge, 43, of Dallas; were each convicted late Friday on one count of conspiracy to unlawfully distribute a controlled substance. Okechuku was convicted of using, carrying and brandishing a firearm in relation to a drug trafficking crime. Okechuku was also convicted on conspiracy to use, carry, and brandish a firearm during and in relation to a drug trafficking crime.
Three co-conspirators, all from Dallas, pleaded guilty before trial. Ignatius O. Ezenagu, 57; David L. Reed, 44; and Jerry K. Reed, 45; each pleaded guilty to one count of conspiracy to unlawfully distribute a controlled substance. Ezenagu also pleaded guilty conspiracy to brandish a firearm in relation to a drug trafficking crime
The drug trafficking conspiracy count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The firearm conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, and each substantive firearm offense carries a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is set for January 26, 2016.
The government presented evidence at trial that Okechuku owned and operated, with the assistance of coconspirator Ezenagu, Medical Rehabilitation Clinic (MRC). MRC was initially located at 9304 Forest Lane in Dallas, and then later, the defendants moved MRC to 9205 Skillman Street in Dallas.
MRC operated as a “pill mill,” in that it functioned as a place to unlawfully obtain controlled substances, such as hydrocodone, and not as a medical facility. Okechuku and business manager Ezenagu charged cash only for office visits in exchange for unlawful hydrocodone prescriptions.
The coconspirator drug dealers, including David Reed and his brother Jerry Reed, along with Rutledge, recruited “patients,” often from homeless shelters, and drove them in groups to MRC. On a daily basis, these dealers brought multiple patients at a time to MRC. They would escort the patients into the clinic and coordinate their office visits with Ezenagu.
Often, dealers filled out patient information for the recruits they brought to the clinic. Dealers paid cash for the office visits of their patients, and handed the money to their patients before they entered the clinic, gave it to them in MRC’s waiting room, or paid the employees directly. MRC had a caged cash room where people would pay for the office visit with money provided by the dealers, by handing the money through an opening in the bars to a clinic employee. Large amounts of cash, often more than $5,000, passed through the clinic’s drug trafficking business on a daily basis.
Okechuku and Ezenagu conspired to employ armed security guards to protect the business, its employees, and the dealers. These armed security guards displayed and brandished various firearms on their waists for all to see in order to deter violence by the “patients” and to protect the illicit drug money from robbery.
Okechuku rarely saw patients, but delegated that task to licensed physician assistant and coconspirator Oti or to Emmanuel Iwuoha, who held no medical or nursing license in Texas, but acted as a doctor, using Okechuku’s signature and DEA prescription authority. In fact, at MRC, Okechuku, Oti, and Iwuoha were referred to as “Doctor,” regardless of medical license.
Oti, Iwuoha, and at times, Okechuku, would do little to no physical examination and prescribe controlled substances, including hydrocodone, a Schedule III controlled substance at the time. Patient visits were short and they would normally leave with a 30-day prescription (120 pills) or more of hydrocodone, along with other prescriptions. Okechuku, Oti, and Iwuoha diagnosed the majority of the patients with back pain, regardless of their true condition. Hydrocodone was prescribed regardless of a patient’s need, or lack thereof.
Once the patients received the prescriptions at MRC, the coconspirator dealers would drive the groups of patients to various pharmacies to get the prescriptions filled. The dealers would also furnish the money to pay for the narcotics. Sometimes, the dealers did not need the patients to pick up the prescriptions as some pharmacies gave the hydrocodone directly to the dealers. After the prescriptions were filled, the patients gave the pills to the dealers, who then sold the pills on the street for a profit.
The FBI, Dallas Police Department and Mesquite Police Department investigated. Assistant U.S. Attorneys Kate Pfeifle and Russ Fusco, and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
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Fort Worth Man Sentenced to 300 Months in Federal Prison on Crack Cocaine ConvictionRead the Press Release
FORT WORTH, Texas — Jeremy Warner, a Fort Worth man who pleaded guilty in July to one count of possession of cocaine base (crack cocaine) with the intent to distribute, was sentenced today by U.S. District Judge Reed C. O’Connor to 300 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Warner, 33, has been in custody since his arrest in May 2015 on a related federal criminal complaint.
According to the complaint filed in the case, when officers with the Fort Worth Police Department executed a search warrant at Warner’s residence on Illinois Avenue in Fort Worth in May 2015, Warner ran down the hallway and attempted to barricade himself in the master bathroom. After taking Warner into custody, officers began a systematic search of the residence. During the search, officers located a clear baggie containing approximately 95 grams of crack cocaine in plain view on the kitchen counter beside a digital scale. During a search of the master bathroom cabinets, officers located two large clear bags, one of which contained approximately 699 grams of crack cocaine and the second clear bag contained approximately 807 grams of powder cocaine. During the search of a hallway closet, officers located approximately $11,000.
Warner knowingly possessed the cocaine base with the intent to distribute it.
The Fort Worth Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Shawn Smith prosecuted.
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Federal Jury Convicts Rockwall, Texas, Man in Securities Fraud CaseRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Jane J. Boyle, a federal jury convicted 34-year-old Mark Lee Cleaton, of Rockwall, Texas, today on felony offenses stemming from an investment fraud scheme he ran, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury found Cleaton guilty on four counts of wire fraud. Each count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Judge Boyle remanded Cleaton into the custody of the U.S. Marshals pending sentencing, which is set for February 4, 2016.
Cleaton was the managing member of North American Capital, LLC, formerly located at 2001 Bryan Street, Suite 2125, in Dallas. Cleaton created a limited partnership, North American Capital Investment Fund, LP (NACIF), in August 2009. The government presented evidence at trial that from approximately August 2009 to July 2010, Cleaton solicited $350,000 in investments in NACIF from several individuals, promising to invest that money in short-term, high-yield real estate projects, when in reality, he misappropriated all the money for himself, spending none of it as promised.
Throughout the scheme, Cleaton provided false investment memoranda and marketing materials to potential investors concerning the investment opportunity. Some of that material falsely represented an audited “7 year performance” history of NACIF, when as Cleaton well knew, NACIF had not even existed for seven years or had any rate of return.
Cleaton instructed each investor to wire funds into a checking account over which he had sole signatory authority. By the time he received the first investor’s funds, he had been locked out of his office in Bryan Tower for non-payment of two months’ rent. Cleaton immediately spent the investors’ money within weeks on personal expenses and unrelated business ventures, including credit card bills, trips to Hawaii, cash withdrawals, a used car business, and a high-end car audio/stereo store. He also intentionally failed to disclose to subsequent investors that he had already raised and spent prior investors’ money. Additionally, he made lulling payments to one victim investor from a later investor’s funds.
The FBI investigated the case. Assistant U.S. Attorney Nick Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are prosecuting.
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Convicted Felon from Tarrant County Sentenced to 300 Months in Federal Prison on Methamphetamine Distribution Conspiracy ConvictionRead the Press Release
FORT WORTH, Texas — A convicted felon from Tarrant County who pleaded guilty this summer to his role in a methamphetamine distribution conspiracy was sentenced yesterday in federal court in Fort Worth, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Jerry Curry, 47, of Haltom City, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to 300 months (25 years) in federal prison. Curry pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. He has been in federal custody since his arrest in June 2015 on an indictment that charged him and 27 others with various offenses stemming from their roles in a methamphetamine distribution conspiracy. Most of the defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the case, since approximately 2014, Curry and other co-defendants received ounce and multi-ounce quantities of methamphetamine on consignment from a supplier co-defendant. In turn, Curry and the others distributed methamphetamine to various customers in the Fort Worth area, returning to this supplier for additional methamphetamine.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Justice Department Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolsRead the Press Release
DALLAS — U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to the Arlington Police Department to create, and in some cases protect, 15 law enforcement positions in the Department. More than $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including this $1,875,000 funding for the Arlington Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community-policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
"I’m grateful to the Attorney General not only for choosing one of the largest, and most community-focused police departments in the Northern District of Texas to receive this funding, but for recognizing the importance of continuing to support law enforcement agencies as they develop creative and innovative ways to deal with community and public safety issues,” said U.S. Attorney John Parker of the Northern District of Texas.
Will D. Johnson, Chief of the Arlington Police Department, said, “Our partnership with the COPS Office is instrumental in advancing public safety in our community. Arlington is honored to be selected for the COPS Hiring Program. This grant is a positive investment and will allow us to hire 15 additional police officers.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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Iraqi-Born US Citizen Admits Making False Statement to FBIRead the Press Release
DALLAS – A Mesquite, Texas man, Bilal Abood, 37, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding indictment charging one count of making a false statement to a federal agency, announced Assistant Attorney General for National Security John P. Carlin, 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.
Abood faces a maximum statutory penalty of eight years in federal prison and a $250,000 fine. He has been in federal custody since his arrest in May 2015 by special agents with the FBI on a related criminal complaint. A sentencing date was not set.
According to plea documents filed in the case, Abood admits that on March 29, 2013, he attempted to depart the U.S. at Dallas Fort Worth International Airport, but was not allowed to board the international flight. While at the airport, FBI special agents asked Abood about his planned travel, and he stated he was merely planning to travel to Iraq to visit family. During a subsequent interview, Abood admitted to FBI special agents that his intent on March 29, 2013, was to travel to Syria to fight the regime of Bashar Al Assad.
On approximately April 29, 2013, Abood left the U.S. through Mexico and traveled through various countries into Syria. On September 16, 2013, Abood returned to the U.S. and admitted to FBI special agents that he had traveled to Syria, but he denied supporting any terrorist groups.
A search warrant was executed on Abood’s computer on July 9, 2014. A review of that computer revealed that on approximately June 19, 2014, Abood stated, while using his Twitter handle @ibnalislaam, “I pledge obedience to the Caliphate Abu Bakr al-Baghdadi.” Abood stipulated that Abu Bakr al-Baghdadi is the self-proclaimed leader of ISIL and was designated as a Specially Designated Global Terrorist on October 4, 2011, and remains so to date.
Abood admits that on April 14, 2015, FBI special agents advised him that lying to a federal agent is a crime. He further stipulates that on that date, he falsely told FBI special agents that he had never pledged allegiance to Abu Bakr-al-Baghdadi. He also stipulates that he was aware the FBI special agents were investigating a matter that they suspected could involve international terrorism.
The FBI’s Dallas Division is investigating the case. The prosecution is being handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.
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Grand Prairie Man Admits Role in Counterfeit Goods Trafficking ConspiracyRead the Press Release
DALLAS — A 31-year-old, Grand Prairie, Texas, man, Evan Patterson, pleaded guilty today in federal court before U.S. Magistrate Judge Irma C. Ramirez to his role in a conspiracy to traffic counterfeit goods, announced U.S. Attorney John Parker of the Northern District of Texas.
Patterson, who remains on bond, pleaded guilty to one count of conspiracy to traffic in counterfeit goods. He faces a maximum statutory sentence of five years in federal prison and a $250,000 fine. Sentencing is set for February 16, 2016, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, from approximately January 2010 through December 2013, Patterson and a co-defendant conspired together to knowingly and intentionally traffic in goods they knew bore counterfeit marks. The marks on these goods were spurious and identical, or indistinguishable from trademarks registered for those goods in the U.S. Patent and Trademark Office.
Patterson and his co-defendant imported and sold clothing, apparel, and accessories manufactured by unauthorized suppliers in China that replicated the authentic brand name goods bearing the counterfeit marks of Nike, Ugg, Beats, Burberry, Cartier, Chanel, Christian Dior, Carolina Herrera, New Era, Oakley, Michael Kors, North Face, National Football League, Coach, Gucci, National Basketball Association, Major League Baseball, Ray Ban, Prada, Ralph Lauren, Versace, Vera Wang, White Diamonds, Tory Burch, Armani, True Religion, Rolex, Lacoste, Fendi, Dolce & Gabbana, Hermes, and Louis Vuitton.
Patterson and his co-defendant displayed and sold the counterfeit goods to customers at a showroom and warehouse located on W. Pioneer Parkway in Grand Prairie. They also established and maintained at least 17 websites where customers could order and pay for the goods online. Orders for the goods were directed to suppliers in China, who would then ship the items directly to customers in the U.S.
On June 6, 2013, Patterson sold an undercover federal agent one Louis Vuitton handbag, one Louis Vuitton wallet, one Michael Kors handbag, one Buffalo Bills jersey, one Dallas Cowboys jersey, and one Texas Rangers jersey, all bearing counterfeit marks, for a total of $200.
In November 2013, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), executed a federal search warrant at the showroom and seized approximately 750 counterfeit items, including sports jerseys, Nike sports shoes, Ugg boots, and designer handbags, wallets, belts, watches, sunglasses and perfumes, all bearing counterfeit trademarks. Industry representatives confirmed the seized items were counterfeit and the combined estimated Manufacturers Suggested Retail Price (MSRP) was $200,000.
ICE HSI is investigating the case. Assistant U.S. Attorney Christopher Stokes is prosecuting.
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Lubbock Man Sentenced to 15 Years in Federal Prison for Posing as a Female “Modeling Agent" to Lure Teen and Take Sexually Explicit Photos of HerRead the Press Release
LUBBOCK, Texas — Amadeo Cruz Torres, 24, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 15 years in federal prison, following his guilty plea in June 2015 to one count of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Torres has been in custody since his arrest in June 2014.
According to documents filed in the case, Torres met the teenage minor, “Jane Doe,” at South Plains Mall in Lubbock on June 17, 2014, after he had been communicating with her online, via Facebook, about the possibility of modeling. Torres first represented himself to be a female modeling agent named “Amber.”
The teenage victim’s mother took Jane Doe to the mall to meet the supposed modeling scout. Jane Doe was advised that she would be meeting with “Shane,” the defendant. Jane Doe was advised to meet with Torres without a parent or friend to minimize distractions.
After meeting with Jane Doe in the mall’s food court, Torres took her to a family restroom and locked the door. He took a video of her while he instructed her to engage in various poses. Eventually, Torres directed her to disrobe completely so that he could film a nude video. At one point during the “modeling session,” Torres convinced her to let him touch her in a sexually explicit manner to verify that she was not hiding drugs.
Torres was arrested the following day at South Plains Mall where he had gone to meet another minor female. Officers seized his video camera, cell phone and tablet computer.
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 Lubbock Police Department and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Convicted Felon Sentenced to Serve 270 Months in Federal Prison on Drug and Firearms ConvictionsRead the Press Release
FORT WORTH, Texas — A convicted felon who was convicted at trial this summer on drug and firearms offenses was sentenced today by U.S. District Judge John McBryde to serve a total of 270 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Martin Jacob Steinberg, 43, was convicted at trial on one count of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm.
The government presented evidence at trial that an officer with the Willow Park Police Department found Steinberg behind an office building in Willow Park, Texas, in late January 2015. He was wearing one pistol and carrying another one in his hand. One of his pockets was stuffed with cash and another was stuffed with methamphetamine. Steinberg was also carrying a cooler that contained several pounds of marijuana, three scales, hundreds of dealer baggies, 80 syringes, glass pipes, more than 85 grams of methamphetamine, his mail and his birth certificate. After a brief struggle, Steinberg was handcuffed and taken into custody.
Among Steinberg’s previous convictions is a 2001 drug conviction in U.S. District Court in New Mexico for which he received a 151-month sentence.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Willow Park Police Department and the Hudson Oaks Police Department investigated the case. Assistant U.S. Attorney Chris Wolfe and Special Assistant U.S. Attorney Dan Cole prosecuted.
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Cisco Man Sentenced to Two Years in Federal Prison for Possessing Child PornRead the Press Release
LUBBOCK, Texas — A 43-year-old Cisco, Texas, man, Robert Jarold Eckhart, was sentenced this morning by U.S. District Judge Sam R. Cummings two years in federal prison, following his guilty plea in June 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Eckhart was ordered to report to the designated prison facility on November 13, 2015.
According to documents filed in the case, Eckhart used his Apple iPod 4 to communicate with other persons over the internet and communicate with several persons about adult pornography and child pornography. Eckhart advised that his interests included younger males, and as a result, he received numerous images of minor males engaged in sexually explicit conduct. Between May 2011 and May 2012 Eckhart knowingly possessed his iPod knowing that it contained numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated the case and Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Big Spring Man Sentenced to Five Years in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Gilberto Ray Hinojos, 23, of Big Spring, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to five years in federal prison following his guilty plea in June 2015 to one count of attempted receipt of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas. Hinojos has been in custody since August, when his pretrial bond was revoked.
According to documents filed in the case, on May 14, 2015, Hinojos responded to an online classified ad posted by the Texas Department of Public Safety identifying themselves as a 13-year-old female. Hinojos attempted to receive sexually explicit images of this person and made further arrangements to meet her at a restaurant on 19th Street in Lubbock. Hinojos arrived at the location and was arrested.
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 Texas Department of Public Safety and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Former Youth Minister Sentenced to 264 Months in Federal Prison on Child Enticement ConvictionRead the Press Release
DALLAS — A former youth minister in Garland, Texas, Derek Hutter, 38, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 264 months in federal prison, following his guilty plea in June 2015 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Hutter has been in custody since his arrest in December 2014.
According to plea documents filed in the case, Hutter worked as a youth minister at the South Garland Baptist Church. He used the Internet, his cell phone and email, as well as person-to-person contact at youth group, to communicate with Jane Doe, a minor girl in his youth group. During these conversations, he convinced Jane Doe to have a sexual relationship with him. Hutter sexually assaulted Jane Doe on several occasions between January 1, 2014, through approximately September 15, 2014.
In addition, according to the filed factual resume, Hutter emailed Jane Doe and asked that she send him explicit and lewd photos of herself.
Hutter admitted that he knew Jane Doe was between 13 and 14-years old.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Sachse Police Department, the Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Former Correctional Officer at FCI Fort Worth Faces up to 15 Years in Federal Prison After Pleading Guilty to Sexual Abuse with a WardRead the Press Release
FORT WORTH, Texas — A former correctional officer at the Federal Bureau of Prisons (BOP) Federal Correctional Institute (FCI) Fort Worth pleaded guilty this morning in federal court to one count of sexual abuse with a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
Rudy Ramon, 54, of Grand Prairie, Texas, entered his plea before U.S. Magistrate Judge Jeffrey L. Cureton. He faces a maximum statutory penalty of 15 years in federal prison and a $250,000 fine. Ramon will remain on bond pending sentencing, which is set for February 18, 2016, before U.S. District Judge Terry R. Means.
According to documents filed in the case, on the first or second Sunday of November 2014, Ramon engaged in a sex act with an individual who was an inmate assigned to FCI Fort Worth. At the time of the sex act, the inmate was under the custodial, supervisory, or disciplinary authority of Ramon, a BOP Correctional Officer.
The Department of Justice Office of the Inspector General is conducting the investigation. Assistant U.S. Attorney Brian Poe is prosecuting.
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Seagoville Inmate Who Possessed a Coloring Book Containing Obscene Visual Representations of the Sexual Abuse of Children is Sentenced to 10 Years in Federal PrisonRead the Press Release
DALLAS — An inmate who admitted possessing obscene visual representations of the sexual abuse of children while he was incarcerated at Seagoville Federal Correctional Institute (FCI) was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Danny Borgos, 27, formerly of Nyack, New York, was sentenced by U.S. District Judge David C. Godbey to 10 years in federal prison. He was in Seagoville FCI serving a federal prison sentence for a federal conviction in the Southern District of New York for receiving, distributing and possessing child pornography.
According to documents filed in the case, on October 9, 2014, a Bureau of Prisons (BOP) guard found Borgos with a paginated series of drawings, consisting of 37 pages in a comic or coloring book-style format, depicting obscene representations of minors engaged in sexually explicit conduct. Borgos admitted the depictions belonged to him
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, with assistance from the BOP, investigated. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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Alleged Murder for Hire Suspect Faces Federal Firearm ChargeRead the Press Release
DALLAS — A federal criminal complaint was filed on Friday, October, 3, 2015, and unsealed today, that charges Kristopher Ledell Love, 31, of Memphis, Tennessee, with possession of a firearm by a convicted felon, announced U.S. Attorney John Parker of the Northern District of Texas.
Love was arrested last week on a state capital murder charge for the September 2, 2015, murder of dentist Kendra Hatcher in the parking garage of her apartment building in Dallas. He is expected to make his initial appearance in federal court tomorrow, before U.S. Magistrate Judge Irma C. Ramirez, at 2:00 p.m.
According to the complaint, Love was convicted in 2005 for aggravated robbery in Shelby County, Tennessee, and sentenced to eight years in prison.
The investigation revealed, according to the complaint, that two individuals conspired together, and with others, including the shooter, who was identified as “Kris” LNU, to rob Dr. Hatcher in the parking garage of 1700 Cedar Springs Road. An individual was paid cash to drive the individual who ultimately shot and killed the victim to and from the parking garage where the murder took place. “Kris” LNU hid in the back of the vehicle so that a surveillance camera could not record him when the vehicle entered the parking garage. The vehicle’s driver and “Kris” LNU waited for several minutes until the driver observed Dr. Hatcher drive in and park. “Kris” LNU exited the vehicle. The driver heard a gunshot. “Kris” LNU returned to the vehicle a short time later, with two purses in his hand. The driver then drove them out of the garage and dropped “Kris” LNU off at an intersection in Dallas.
Further investigation revealed that “Kris” LNU is Kristopher Ledell Love. Law enforcement located Love in Dallas on Thursday, October 1, 2015. The vehicle he was driving was towed and subsequently searched, pursuant to a state search warrant. Law enforcement located and seized a Smith & Wesson .40 caliber pistol under the front seat of the vehicle. Love is a person prohibited from possessing a firearm because of his 2005 felony conviction in Shelby County, Tennessee.
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 10 years in federal prison and a $250,000 fine.
The FBI, Dallas Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are conducting the ongoing investigation. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert is in charge of the prosecution.
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Ten Charged in Cocaine and Crack Cocaine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Ten defendants have been charged in a federal indictment with felony offenses stemming from their role in a cocaine and crack cocaine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Most of the defendants, from the Lubbock, Texas, area were arrested last week in a joint operation led by the Texas Department of Public Safety, with assistance from the Drug Enforcement Administration, the U.S. Marshals Service, the Lubbock and Terry County Sheriff’s Offices, the Lubbock Police Department, and the Hockley, Lamb, and Lubbock County District Attorney’s Offices. The U.S. Marshals Service arrested Tabatha Williams in Fort Myers, Florida. Two defendants, Joshua Cubit and Mackie Washington, were in state custody on unrelated charges.
Some detention hearings are set for Wednesday, October 7, 2015. A November 2, 2015, trial date, before U.S. District Judge Sam R. Cummings, has been set.
The 24-count indictment, just unsealed, charges each of the following with one count of conspiracy to possess with intent to distribute controlled substances:
Timothy Paul Adame, 28
Jaime Lee Escalante, 33
Jerry Don Watley, II, 37
Joshua Deshawn Cubit, 27
Freddrick Lamont Huey, 33
Tyrone Bernard Williams, 32
Dianne M. Winn, 40
Mackie Lee Washington, Sr., 58
Tabatha Roxana Williams, 44
Juan Bernard Ledesma, 27In addition, Adame is charged with one count of distribution and possession with intent to distribute 28 grams or more of cocaine base; one count of possession with intent to distribute 500 grams or more of cocaine; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Watley is also charged with one count of distribution and possession with intent to distribute cocaine; nine counts of distribution and possession with intent to distribute cocaine base; one count of possession with intent to distribute 280 grams or more of cocaine base; and one count of possession with intent to distribute cocaine.
Huey is also charged with two counts of distribution and possession with intent to distribute cocaine base.
Tyrone Williams is also charged with one count of possession with intent to distribute cocaine.
Winn is also charged with one count of distribution and possession with intent to distribute cocaine and one count of possession with intent to distribute cocaine base.
Washington is also charged with one count of possession with intent to distribute cocaine base.
Tabatha Williams is also charged with three counts of distribution and possession with intent to distribute cocaine base and one count of possession with intent to distribute cocaine base.
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 conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The other drug counts carry a maximum statutory penalty ranging from 20 years to life imprisonment. The firearm count carries a statutory penalty of not less than five years or more than life in federal prison and a $250,000 fine.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Lubbock Man Who Admitted Possessing Child Pornography Involving a Prepubescent Child is Sentenced to 121 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Michael Dennis Powers, 47, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea June 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings remanded Powers, who had been on bond, into custody.
According to documents filed in the case, Powers admitted using a computer at his residence to, among other things, search the Internet for child pornography. In the course of searching for this material, Powers located, downloaded, and viewed numerous files containing child pornography. Powers knew that some of those files were produced using prepubescent minors engaging in sexually explicit conduct. On April 9, 2015, Powers was in possession of three computer disks containing the child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Guardian Industries Corp. to Cut Harmful Air Pollution at Flat Glass Manufacturing Plant in TexasRead the Press Release
DALLAS —The Department of Justice and the Environmental Protection Agency (EPA) have announced a settlement with Guardian Industries Corp. that will resolve alleged violations of the Clean Air Act at Guardian’s flat glass manufacturing facilities throughout the U.S. One of those facilities is located in Corsicana, Texas, noted U.S. Attorney John Parker of the Northern District of Texas.
Under the proposed settlement, Guardian will invest more than $70 million to control emissions of nitrogen oxide (NOX), sulfur dioxide (SO2), particulate matter (PM) and sulfuric acid mist (H2SO4) from all of its flat glass manufacturing facilities. Guardian will also fund an environmental mitigation project valued at $150,000 to reduce particulate matter pollution in the San Joaquin Valley in California and pay a civil penalty of $312,000.
Guardian has operated its flat glass manufacturing facility in Corsicana since 1980. The EPA alleged that major facility modifications undertaken by the company beginning in 1993 led to a production increase at the Corsicana facility, and consequently, significant net emissions increases of air pollutants that occurred without Guardian obtaining the required Clean Air Act permits and without complying with the Act’s requirements regarding the installation of pollution control technology, emission limits, monitoring, record-keeping, and reporting.
“We commend Guardian Industries for its commitment to reduce emissions of harmful air pollutants from its Corsicana facility and others it operates in the United States,” said U.S. Attorney Parker. “By requiring phased-in pollution control and emissions monitoring equipment at Guardian’s Corsicana facility, this agreement appropriately balances the promotion of manufacturing and the protection of clean air for all Texas residents.”
“This settlement is a great example of a cooperative, company-wide effort to reduce air pollution and will mean cleaner air for communities across the country, where glass manufacturing is currently a significant source of the air pollutants that cause serious lung and heart problems,” said Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We are also particularly grateful to the states of Iowa and New York, as well as the San Joaquin Valley Air Pollution Control District, all of whom were active partners in achieving this important outcome for the American people.”
“Air pollution from flat glass facilities can impact communities hundreds of miles away, which is why today’s announcement is so crucial to address pollution at the source and protect public health,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “By investing in pollution control equipment and funding a mitigation project that will protect the health of low-income residents, Guardian is setting an example for the flat glass industry for how to control harmful air emissions at its facilities.”
The settlement resolves allegations that Guardian violated the Clean Air Act and state air pollution control plans when it made major modifications to its flat glass furnaces that significantly increased harmful air emissions. This settlement is part of EPA’s ongoing National Enforcement Initiative addressing Clean Air Act New Source Review and Prevention of Significant Deterioration program violations and is the agency’s first settlement involving the flat glass manufacturing sector. Flat glass, also known as float glass, is used as windows for office buildings and homes as well as for automobile windshields.
The $150,000 mitigation project with the San Joaquin Air Pollution Control District will provide incentives to low-income residents living in the San Joaquin Valley to replace or retrofit inefficient, higher-polluting wood-burning appliances with cleaner-burning, more energy-efficient appliances. The San Joaquin Valley is an area with poor air quality.
EPA expects that the pollution controls required by the settlement will reduce harmful emissions by 7,300 tons per year, including approximately 6,400 tons per year of NOx, 550 tons per year of SO2, 200 tons per year of PM and 140 tons of H2SO4. The mitigation project in California will yield additional reductions of PM. These emissions reductions will result in significant human health and environmental benefits for communities. In addition to the Corsicana plant, Guardian’s flat glass manufacturing facilities are also located in Kingsburg, California, DeWitt, Iowa, Carleton, Michigan, Geneva, New York, Floreffe, Pennsylvania, and Richburg, South Carolina.
SO2 and NOX have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Once airborne, these pollutants can also convert into particulate matter. PM, especially the fine particles, can travel deep into a person’s lungs causing severe respiratory impacts, such as coughing, decreased lung function, and chronic bronchitis. Fine PM is also associated with cardiovascular impacts and even premature death. H2SO4 irritates the skin, eyes, nose and throat and lungs, and exposure to high concentrations can lead to more severe health impacts.
The states of Iowa and New York actively participated in the settlement and will each receive $78,000 of the total penalty. The United States will receive $156,000. The San Joaquin Valley Air Pollution Control District also actively participated in the settlement.
The proposed consent decree was lodged Tuesday in U.S. District Court for the Eastern District of Michigan and is subject to a 30-day public comment period and final court approval.
For more information on the settlement and to read the proposed settlement, visit http://www2.epa.gov/enforcement/guardian-industries-corp-clean-air-act-settlement.
For more information on the settlement or to read a copy of the consent decree, visit
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Family Members Arrested on Federal ChargesRead the Press Release
DALLAS — Four members of an Arlington, Texas, family were arrested earlier this week on charges outlined in a federal criminal complaint, unsealed late yesterday, stemming from their alleged conspiracy to defraud the Social Security Administration (SSA) by feigning mental illnesses to fraudulently collect Social Security benefits, announced U.S. Attorney John Parker of the Northern District of Texas.
Charged in the criminal complaint are Doreen Mitchell, 53, and her two sons, Michael Mitchell, 29, and Sonny Mitchell, 27, and her cousin, John Mitchell, a/k/a “Patrick Rena,” 58. Each defendant made an initial appearance in federal court before U.S. Magistrate Judge Paul Stickney, who ordered that all four remain in custody pending detention hearings set for tomorrow, Friday, October 2, 2015, and Monday, October 5, 2015.
According to the complaint, beginning in 1978 and continuing through the present, Doreen Mitchell, John Mitchell, Michael Mitchel and Sonny Mitchell conspired together to conceal, or fail to disclose, the true activity level and medical condition of Doreen Mitchell, Michael Mitchell and Sonny Mitchell, which would have affected each person’s continued entitlement to Supplemental Security Income (SSI) payments. This was done to secure benefits in a greater amount or quantity than was due or when no such benefit was authorized.
The SSA’s ability to determine an applicant’s medical and financial eligibility for the SSI program is directly dependent upon the SSA’s access to accurate and current information regarding that applicant. If an applicant is initially found to be eligible, and therefore becomes an SSI recipient, the SSA’s ability to determine that recipient’s continuing eligibility, and the correct monthly benefit due that recipient, is directly dependent upon the SSA’s ongoing access to accurate and current information regarding that recipient. The SSA requires disabled SSI recipients to advise the SSA of any improvements in their medical condition, their return to work of any kind, and any changes in their income, resources, address, living arrangements, family size or composition, or family income or resources.
Over the 37-year period beginning in 1978 and continuing to the present, SSA paid and continues to pay SSI benefits each month to Doreen Mitchell, Michael Mitchell and Sonny Mitchell. As of August 31, 2015, the SSA has paid approximately $461,913 in benefits based on the representation that these three individuals were disabled.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 day to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for this offense as charged is five years in federal prison and a $250,000 fine.
The SSA’s Office of the Inspector General/Cooperative Disability Investigations Unit is investigating. Special Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.
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Former Credit Union Employee Admits Embezzling Funds from Pantex Federal Credit UnionRead the Press Release
AMARILLO, Texas — Dorothy Stegall Barnes, a/k/a “Dorothy Stegall Newman,” 56, appeared in federal court today and pleaded guilty to one count of embezzlement from a federally insured credit union, announced John Parker, United States Attorney for the Northern District of Texas.
Barnes, faces a maximum statutory penalty of 30 years in federal prison, a $1 million fine and a 5 years of supervised release. U.S. Magistrate District Judge Clinton Averitte ordered a presentence investigation report with a sentencing date of December 8, 2015.
The indictment alleges that from approximately September 1996 through December 2010, Barnes, the Assistant Vice-President of Teller Operations at the Pantex Federal Credit Union, embezzled approximately $826,000 from the credit union.
The FBI and Borger Police Department investigated. Assistant U.S. Attorney Tim Hammer is prosecuting.
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Federal Jury Convicts Man in Computer Intrusion CaseRead the Press Release
DALLAS — Following a week-long trial before U.S. District Judge Jane J. Boyle, a federal jury has convicted a Spring, Texas, man, who worked as an Information Technology (IT) engineer for a Dallas-headquartered law firm, on felony offenses stemming from his unauthorized access to the firm’s computer network, announced U.S. Attorney John Parker of the Northern District of Texas.
Anastasio N. Laoutaris, 40, was convicted on two counts of knowingly accessing a computer network without authorization and intentionally issuing commands and codes that caused damage to the network. After the verdict, Judge Boyle remanded him into the custody of the U.S. Marshal.
Laoutaris faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count. A sentencing date was not set.
The government presented evidence at trial that Laoutaris, who was an IT engineer for Locke Lord LLP from 2006 to August 2011, accessed the firm’s computer network without authorization on December 1, 2011, and December 5, 2011, and on both occasions, issued instructions and commands that caused significant damage to the network, including deleting or disabling hundreds of user accounts, desktop and laptop accounts, and user e-mail accounts
The law firm, Locke Lord LLP, has offices throughout the U.S. and the world; its headquarters is located in Dallas.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorneys Paul Yanowitch and Nick Bunch are prosecuting.
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Employment Staffing Agency Owner Sentenced to 24 Months in Federal Prison for Failure to Pay over Payroll TaxesRead the Press Release
DALLAS — A local man who admitted failing to pay over payroll taxes for tax years 2008 through 2012 was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Luis Morales was sentenced by U.S. District Judge Terry R. Means to 24 months in federal prison and order to pay approximately $209,000 in restitution. Morales pleaded guilty in January 2015 to an information charging one count of failure to pay over payroll taxes.
According to the factual resume filed in the case, in June 2008, Morales formed A Staffing Solution, LLC and was listed as the organizer, registered agent and sole manager with the State of Texas. A Staffing was a temporary employment agency in the Dallas/Fort Worth area, and was operated by Morales until the end of January 2010. In January 2010, Morales formed Morales Employment Services (“MES”). MES operated with the same employees and clients that had previously been with A Staffing.
In March 2010, according to the factual resume, Morales, with the assistance of Manuel Chavez, formed MES & Company (“MES & Co.”). MES & Co. operated with the same employees and clients that had previously been with A Staffing and later MES. Chavez pleaded guilty to a separate information in February 2015 and was previously sentenced to serve 36 months probation and pay $142,320.71 in restitution.
Morales admitted that for tax years 2008 through 2012, according to the factual resume, he deducted and collected from the total taxable wages of his employees federal income, social security and Medicare taxes. Morales further admitted that he willfully failed to truthfully account for and pay over to the Internal Revenue Service all of the federal income, social security and Medicare taxes withheld. Morales used the retained withheld taxes for personal use.
The investigation was conducted by IRS Criminal Investigation.
Assistant U.S. Attorney Brian Poe prosecuted.
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Dallas Woman Sentenced to 15 Months in Federal Prison for Lying in Bankruptcy FilingsRead the Press Release
DALLAS — A Dallas woman who was convicted at trial earlier this year on felony offenses stemming from the filing of false bankruptcy documents, was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Julie Grant, a/k/a Juliana Jacobs Grant, Juliana Okwue Jacobs Grant, and Juliana Okwuenu, 50, was sentenced to serve 15 months in federal prison by U.S. District Judge Sam A. Lindsay. She must surrender to the Bureau of Prisons on December 1, 2015.
Grant, using two different Social Security Numbers, filed voluntary bankruptcy petitions on October 3, 2008, March 2, 2009, July 6, 2009, December 16, 2009, and August 9, 2011. In some of the petitions, Grant was represented by counsel, and in some, she acted pro se (without counsel.)
In the August 9, 2011, petition, Grant fraudulently concealed two bankruptcy cases she filed in the Northern District of Texas in October 2008 and March 2009. Grant also falsely stated in the December 16, 2009, petition and the August 9, 2011, petition, that she had only used one Social Security Number, when, in fact, she had used at least one other Social Security Number in other bankruptcy petitions that she knew she was obligated to disclose.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative within the Northern District of Texas. As another example, in late January 2015, a Waxahachie, Texas, man, James Derek Howard, was sentenced to one year and one day in federal prison and was ordered to pay restitution after he pleaded guilty to a bankruptcy fraud offense.
Since May 2013, 13 debtors have been charged with various bankruptcy-related criminal offenses. To date, seven of these defendants have been sentenced, one defendant is pending sentencing, three defendants have filed documents in U.S. District Court indicating they intend to plead guilty, and two defendants are awaiting trial.
The Office of the Inspector General, Social Security Administration investigated. Assistant U.S. Attorney David Jarvis prosecuted.
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San Angelo, Texas, Psychiatrist Admits Committing Health Care FraudRead the Press Release
AMARILLO, Texas — A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, pleaded guilty last week to one count of health care fraud stemming from a scheme he ran to defraud Medicare and Medicaid by submitting claims for services not rendered in the manner billed, including submitting claims for services allegedly rendered after patients’ deaths. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Gross faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. In addition, according to the plea agreement filed in the case, he agrees to pay $1,832,869 in restitution to the U.S., representing all overpayments made to Gross from health care providers during the scheme. Gross has been in federal custody since his arrest in mid-October 2014 on related charges outlined in a federal indictment.
According to documents filed in the case, beginning in January 2009 and continuing until approximately June 20, 2014, Gross filed, and caused to be filed, claims against Medicare, Medicaid, and other health insurance carriers, for payment for services that were never rendered and services that were billed using inappropriate CPT codes.
Gross regularly submitted claims for services rendered to nursing home residents in and around San Angelo and he also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services provided to foster care children in Brownwood, Texas.
As part of his scheme, Gross filed claims against Medicare, Medicaid, and other health insurance carriers for services for nursing home patients on dates he did not actually render services to patients. In those instances, the patients may have died or been discharged before Gross allegedly visited them in the nursing home.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General are investigating. Assistant U.S. Attorney Ann Cruce-Haag and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams are prosecuting. Assistant U.S. Attorney Megan Fahey is handling the forfeiture.
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Amarillo Men Face Lengthy Federal Prison Terms After Admitting They Trafficked Large Quantity of Liquid MethamphetamineRead the Press Release
AMARILLO, Texas — Richard Madrigal, 42, and Damian Erik Alcala, 37, both of Amarillo, Texas, appeared this morning in federal court before U.S. District Judge Mary Lou Robinson and each pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Each has been in federal custody since his arrest this summer on a related federal criminal complaint. Each faces a statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine. A sentencing date was not set.
According to documents filed in the case, law enforcement learned that a green Chevy Blazer, with Chihuahua registration, was to arrive in Amarillo from El Paso, Texas, and that the vehicle was transporting a methamphetamine solution concealed in its fuel tank. On July 17, 2015, law enforcement observed Alcala, driving a white Toyota Camry, and Madrigal, driving a green Chevy Blazer, arrive at a residence on Houston Street in Amarillo. Shortly thereafter, both left the residence in the white Camry. Several minutes later, they returned to the residence and Madrigal left in the white Camry. When officers with the Amarillo Police Department arrived to secure the residence, Alcala fled on foot. Officers with the Amarillo Police Department apprehended Madrigal and brought him back to the residence.
During the subsequent execution of a search warrant at the residence, law enforcement found three Tupperware containers containing crystal methamphetamine in the kitchen. Two semi-automatic pistols were also found in the residence.
When law enforcement searched the green Chevy Blazer that was parked in the garage, they removed its fuel tank and extracted approximately 84 pounds of liquid methamphetamine from the fuel tank.
The Drug Enforcement Administration, the Amarillo Police Department, the Federal Bureau of Investigation and the Texas Department of Public Safety are investigating. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Rockwall Man Admits Producing, Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Christian C. Winchel, 49, of Rockwall, Texas, appeared today before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to multiple child pornography offenses involving prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Winchel pleaded guilty to one count of production of child pornography; one count of transporting and shipping child pornography; and one count of possession of prepubescent child pornography. He faces a maximum statutory penalty of 70 years in federal prison and a $750,000 fine. Winchel has been in custody since his arrest on a related federal criminal complaint in early February 2015. Sentencing is set for January 15, 2016, before Judge Fitzwater.
Winchell admitted he has downloaded child pornography since approximately 1994. He thought he would be able to trade child pornography with others if he produced his own material. He had access to an 18-month-old child, and took sexually explicit photos of himself with the child. He also admitted using a spy cam to capture minor girls using the bathroom when they were in his home and a nanny cam to capture minor girls in various stages of undress in his home.
Winchell moved to Rockwall from Indiana in 2013, transporting the videos he had recorded of minor girls from Indiana to Texas. He admitted that when children visited for sleepovers at his home in Rockwall, he filmed himself engaging in sexually explicit activity while in proximity of the minor children who were asleep.
Law enforcement executed a search warrant at his home in February 2015 and seized several media items. The investigation revealed that as of August 20, 2015, there were 2700 images and videos of child pornography contained on the media examined. Through this forensic analysis, law enforcement has determined that some of the images and a video, involving an eight-year-old minor victim, were produced just over one year ago, in late July 2014. Law enforcement has found evidence that Winchel produced child pornography and images and videos of five minor victims.
Anyone who knows of someone who may have been victimized in this case is asked to contact the FBI at 972-559-5000.
The FBI’s Dallas Child Exploitation Task Force is conducting the investigation. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Federal Grand Jury Indicts Nigerian Man for Role in “Business Email Compromise” Scheme That Caused Attempted $1.3 Million Loss to U.S. CompaniesRead the Press Release
DALLAS — A Nigerian citizen in the U.S. on a student visa has been charged in a federal indictment, returned late today, with one count of conspiracy to commit wire fraud stemming from his role in what has become known as a “Business Email Compromise” scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Amechi Colvis Amuegbunam, 28, of Lagos, Nigeria, was arrested late last month on a related federal criminal complaint, filed earlier this year in the Northern District of Texas, when he entered the U.S. in Baltimore, Maryland. He made his initial appearance before a U.S. Magistrate Judge in federal court in the District of Maryland on August 25, 2015, and was detained. It is expected that he will make an appearance in federal court in Dallas this week.
The indictment alleges that from November 2013 through August 2015, Amuegbunam and other individuals, sent, and caused to be sent, fraudulent emails to companies in the Northern District of Texas and elsewhere, containing material misrepresentations that caused the companies to wire transfer funds as instructed on a pdf document that was attached to the email. According to the complaint, Amuegbunam is responsible for more than a $1.3 million attempted loss, and a $615,550 actual loss, to U.S. companies, including Wells Fargo and JP Morgan Chase.
The FBI, according to the complaint, is investigating an extensive money laundering and wire fraud scheme primarily operated by individuals in Nigeria, and assisted by individuals in the U.S., who are exploiting open source information and using social engineering techniques to steal millions of dollars from U.S. corporations and individuals. The scheme has become so common that the term, “Business Email Compromise” scheme, was coined, and on August 25, 2015, the FBI issued a Public Service Announcement regarding the scheme.
The investigation of this particular BEC scheme began when two companies in the Dallas/Fort Worth area reported to the FBI Dallas office that they had received targeted spear phishing emails. These emails appeared to be a forwarded message, allegedly from a top executive at the company, sent to an employee in the company’s accounting department who had authority to make financial transfers for the company. Although the emails appeared to be coming from a company executive, the messages were actually coming from a false email account fraudulently created to look like a legitimate company email account. A fraudulent domain name was used that contained one small difference from the true company’s email address – such as transposed letters. After complying with the spear phishing email instructions to transfer funds, the companies became victims of the BEC scheme, each losing approximately $100,000. The investigation traced the creation of some of the pdfs to Amuegbunam.
The FBI’s Internet Crime Complaint Center (IC3) has been tracking this scheme and to date, perpetrators of the scheme have victimized more than 7000 businesses based in the U.S. and more than 1000 foreign-based businesses. The total loss to the U.S. victims is approximately $747 million.
Additional information about the BEC scheme may be found in a Fraud Alert issued by the Financial Services Information Sharing and Analysis Center (FS-ISAC), the FBI, and the U.S. Secret Service. The FBI urges any business who believes it was victimized by the BEC scheme to contact them at 972-559-5000.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy to commit wire fraud offense carries a maximum statutory penalty of 30 years in federal prison and a $1 million fine. Restitution may be ordered.
The FBI is conducting the ongoing investigation and Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Dallas Man Indicted for Aiming a Laser Pointer at an AircraftRead the Press Release
DALLAS —A federal grand jury has indicted Orlando Jose Chapa, 37, of Dallas on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Special agents with the FBI arrested Chapa yesterday. He made his initial appearance in federal court this afternoon before U.S. Magistrate Judge Paul D. Stickney, who released him on bond.
According to the indictment, 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.
A federal indictment is an accusation by a grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for this offense is five years in federal prison and a $250,000 fine.
The FBI, Texas DPS and the Dallas Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
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Dallas Attorney and Four Family Members Indicted in $22 Million Fraud ConspiracyRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment late yesterday charging Dallas attorney Tshombe Anderson and four family members with one count of conspiracy to commit mail fraud stemming from a scheme they ran from July 2011 to September 2015 to fraudulently obtain more than $22 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Tshombe Anderson, 52, and his sister Lydia Bankhead, 61, have been in custody since their arrest in late August 2015, on a related federal criminal complaint.
In addition to Tshombe Anderson, this indictment charges his wife Brenda Anderson, 45, his sister-in-law Janet Anderson, 41, and his niece Lydia Taylor, 28, with one count of conspiracy to commit mail fraud. It is expected that all five defendants will make their initial appearance in federal court in Dallas in the coming weeks.
Tshombe Anderson worked as an attorney with a law office located in Dallas. He formed a Durable Medical Equipment (DME) company in 2010 called Best First Administration DME of Austin, LLC (BFA), which listed him as one of the company’s managers. Then, in 2013, he formed two more DME companies, Union Medical Supplies & Equipment, LLC (UMSE) and Sky Care Medical Supplies & Equipment, LLC (SMSE).
Brenda Anderson managed BFA, and in 2010, she enrolled BFA as a provider with OWCP through Affiliated Computer Services. In February 2010, Brenda Anderson, through BFA, acted as the in-house DME provider for Union Treatment Center (Union). Both Tshombe and Brenda Anderson were fired from Union in May 2011.
Bankhead was a UMSE manager and enrolled the company as a provider with OWCP through Affiliated Computer Services.
Janet Anderson was a manager of SMSE and enrolled the company as a provider with OWCP through Affiliated Computer Services.
Lydia Taylor, at Tshombe Anderson’s suggestion, sought out and obtained a position as a volunteer intern in OWCP’s Dallas office. After obtaining this position and gaining access to OWCP’s system, Taylor would look up claim numbers and provide information to her co-conspirators.
The indictment alleges that the purpose of the conspiracy was for the five defendants, through BFA, UMSE, and SMSE, to unlawfully enrich themselves by submitting, and causing the submission of, payment of fraudulent claims to OWCP that (a) falsely represented that the DME was requested; (b) falsely represented that the DME was necessary; and (c) falsely represented that the DME had to be provided. They obtained more than $22 million through this scheme.
From July 2011 through September 21, 2015, more than 250 patient claim numbers have been used by at least one of the companies formed and managed by the defendants to bill OWCP. During this time, BFA, UMSE, and SMSE collectively billed OWCP more than 50,000 times and were paid more than $22 million because of the defendants falsely representing that the DME billed for was requested, necessary and provided.
A federal indictment is an accusation by a grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for conspiracy to commit mail fraud is 20 years in federal prison and a $250,000 fine.
The indictment also includes a forfeiture allegation that, upon conviction, would require the defendants to forfeit a money judgment in the amount of $32 million, representing the approximate amount of proceeds derived from the scheme to defraud, for which the defendants are jointly and severally responsible. In addition, the following property that was seized by federal agents on August 26, 2015, will be forfeited: $375,000 in cash seized from Tshombe and Brenda Anderson’s residence; $295,860 in cash seized from Lydia Bankhead’s residence; three vehicles including a 2014 Jeep, a 2014 Lexus, and a 2015 Mercedes; and a total of $8,383,075.00 seized from 25 bank accounts.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General are investigating. Assistant U.S. Attorney Aaron Wiley, Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorney Lea Carlisle are in charge of the prosecution.
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Wisconsin Woman Remains in Federal Custody on Complaint Alleging She Transported a Minor Child to Another State to Engage in Sexual ActivityRead the Press Release
DALLAS — A Janesville, Wisconsin woman, Jennifer Lynn Dougherty, remains in federal custody on a federal criminal complaint alleging she transported a minor child from Texas to Wisconsin to engage in sexual activity, announced U.S. Attorney John Parker of the Northern District of Texas.
A detention hearing is scheduled for Wednesday, September 23, at 2:00 p.m. before U.S. Magistrate Judge Paul D. Stickney.
According to the affidavit filed with the criminal complaint, after being notified early last week of a missing minor child by the child’s parents, the Garland Police Department contacted the National Crime Information Center (NCIC) and entered the victim into the database as a missing juvenile. A review of the minor child’s X-Box 360 gaming system by detectives with the Garland Police Department revealed recent chat communications, sexual in nature, with a particular user, later identified as Dougherty.
On Wednesday, September 16, 2015, officers with the Dallas Police Department assigned to the Dallas Love Field airport, contacted NCIC advising they had located an individual matching the child’s description, in the company of an adult female, at the airport. Upon receipt of this information, officers with the Garland Police Department went to the Dallas Love Field airport and retrieved the missing child and adult female.
The investigation revealed Dougherty and the minor child met while playing online games. On September 12, 2015, Dougherty allegedly traveled from Wisconsin to Texas, picked up the minor child, and transported the child to Wisconsin, where she sexually assaulted the child.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than 10 years or up to life in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Garland Police Department are investigating. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Crime Stoppers’ Tip Leads to Arrest of Bank Robber on Federal ChargeRead the Press Release
DALLAS — A Dallas man has been charged in a federal criminal complaint with committing the September 3, 2015, robbery of a First Convenience Bank in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Following a detention hearing on Friday, September 18, 2015, U.S. Magistrate Judge David L. Horan ordered that Joshua Sefnathn Chavez, 23, remain in federal custody on the charge.
According to the complaint, the First Convenience Bank, located inside the Kroger store at 752 Wynnewood Shopping Center in Dallas, was robbed by a male suspect, later identified as Chavez. Chavez approached a teller’s counter and handed the teller a dark-colored bank bag, a folded piece of paper and a withdrawal slip. The teller opened the piece of paper that read, “This is a robbery no one gets hurt! Put all lose bills in bag! No trackers no dye packs. Gun in waist!”
In fear for her life, the teller removed cash from her cash drawer, placed it in the bag and handed the bag to Chavez, who then left the bank.
After further investigation, detectives with the Dallas Police Department (DPD) determined that the suspect in the First Convenience Bank robbery matched the description of an individual who robbed a Chase Bank in Dallas two days earlier. The DPD issued a press release to the local media and to social media asking for the public’s help in identifying the individual who robbed these banks. Crime Stoppers received a tip that identified the suspect as Chavez.
A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of this bank robbery, however, Chavez faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
The FBI and the DPD are investigating. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
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Amarillo Man Who Robbed Amarillo National Bank is Sentenced to Serve Total of 212 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man, William Eugene Boyd, 51, who pleaded guilty in July 2015 to one count of bank robbery, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyd was sentenced to 188 months in federal prison for the bank robbery. In addition, Judge Robinson sentenced him to an additional 24 months in federal prison, to run consecutively, for committing this bank robbery while on supervised release on another bank robbery conviction in the Amarillo Division of the Northern District of Texas.
According to documents filed in the case, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the cash.
After providing surveillance photographs to the media that were broadcast to the public, Amarillo Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto prosecuted.
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Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Eight North Texas residents who were convicted for their respective roles in a methamphetamine distribution conspiracy that operated in North Texas and elsewhere have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Irineo Ramos, 32, was sentenced by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison. He pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Four co-defendants also pleaded guilty to that offense and were sentenced earlier as follows:
Juan Carlos Cruz, a/k/a Cruzito, 28, 120 months in federal prison
Carlos Wences Castaneda, a/k/a Chaco, 38, 235 months in federal prison
Pablo Ramirez Gallegos, a/k/a Primo, 28, 44 months in federal prison
Ismael Perez, a/k/a Gordo, 26, 41 months in federal prison
Bernardo Rodriguez Martinez, a/k/a Pamo, 27, and Martin Rodriguez Martinez, a/k/a Chivo, 34, each pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine and conspiracy to commit money laundering. Each was sentenced to 240 months in federal prison.
Monica Lemus, 32, was sentenced to 27 months in federal prison for conspiracy to commit money laundering.
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation involved multiple undercover methamphetamine purchases and the seizure of approximately $77,000 in U.S. currency, 18 firearms, 12 kilograms of Ice, 1.5 gallon liquid Ice, 537.7 grams of heroin and three conversion labs.
Bernardo Rodriguez Martinez and Martin Rodriguez Martinez used individuals to deposit money from the methamphetamine sales into various bank accounts in the U.S. In fact, from May 3, 2013, to September 9, 2013, approximately $296,321 in drug proceeds was deposited into various accounts in the Dallas area. Some of the money was sent to Mexico, via wire transfers and couriers, to ensure the supply of methamphetamine continued.
The FBI, IRS Criminal Investigation, Dallas Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Drug Enforcement Administration investigated. Assistant U.S. Attorney George Leal prosecuted.
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Amarillo Man Sentenced to 135 Months in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — An Amarillo man, Deswan Newsome, 19, who pleaded guilty in July 2015 to an indictment charging one count of attempted sex trafficking of a child was sentenced today by U.S. District Judge Mary Lou Robinson to 135 months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to plea documents filed in the case, Newsome 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 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 the individual claiming, “You can make 2500 in a week if you really put the work into it.” The individual 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, the TFO (A.M.) received a private message on his undercover Facebook account from “Deswan Newsome,” later identified as defendant Newsome. 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 then turned the call over to a female who provided more details about prostitution to A.M. A.M. advised this female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and arranged 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 taken into custody. Newsome 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.
The Amarillo Police Department and HSI investigated. Assistant U.S. Attorneys Timothy Hammer and Joshua Frausto prosecuted.
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Federal Jury Convicts Mesquite, Texas, Man on Methamphetamine Trafficking Conspiracy and Firearm ChargesRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Jane J. Boyle, late this afternoon a federal jury convicted Aryan Brotherhood of Texas member Casey Rose, 36, of Mesquite, Texas, on conspiracy, drug trafficking and firearm charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Rose on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession of methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm. The conspiracy count carries a maximum statutory penalty of life in federal prison; the substantive possession count carries a maximum statutory penalty of 20 years in federal prison; and the felon in possession count carries a maximum statutory penalty of 10 years in federal prison. Sentencing has not yet been set.
Rose has been in custody since his arrest in mid-November 2014 following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID). During that operation, 37 individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014. Of those arrested, each defendant has pled guilty except Rose, who elected to go to trial. One defendant remains a fugitive.
Rose was a member of the Aryan Brotherhood of Texas (ABT). Many of the defendants were members of, or associated with white supremacist organizations, such as the ABT, the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures.
The government presented evidence at trial that Rose purchased and distributed methamphetamine throughout the Dallas metroplex and used violence in obtaining large quantities of methamphetamine. The trial also included expert testimony regarding the formation, history, and mission of the ABT.
The DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit led the investigation. Officers and agents from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation.
Assistant U.S. Attorney P. J. Meitl is prosecuting.
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Former Collin Street Bakery Executive and Wife SentencedRead the Press Release
DALLAS — Sandy Jenkins, a former executive at the Collin Street Bakery (“the Bakery”) in Corsicana, Texas, and his wife, Kay Jenkins, were sentenced today on felony convictions stemming from Sandy Jenkins’s embezzlement of approximately $16 million from the Bakery, announced U.S. Attorney John Parker of the Northern District of Texas.
Sandy Jenkins was sentenced by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison. Judge Kinkeade sentenced Kay Jenkins to five years’ probation. Kay Jenkins was further ordered to complete 100 hours of community service and to submit a formal apology in writing to the Bakery.
Sandy Jenkins, 66, served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. After the Bakery discovered the fraud, he was terminated on June 21, 2013. He pleaded guilty in May 2014 to one count of mail fraud, one count of conspiracy to commit money laundering, and one count of making a false statement to a financial institution. Kay Jenkins, 64, of Corsicana, pleaded guilty in May 2015 to one count of conspiracy to commit money laundering.
According to documents filed in the case and evidence proffered at the sentencing hearing, beginning at least as early as December 2004, and continuing until his termination from the Bakery, Sandy Jenkins engaged in a massive scheme to defraud the Bakery. During that time, he embezzled more than $16 million from the Bakery, and he and his wife, Kay Jenkins, used that money to bank-roll a lavish lifestyle. The government introduced evidence at sentencing identifying the 223 trips on private jets as well as the locations (primarily Santa Fe, New Mexico; Aspen, Colorado; and Napa, California, among other places), with a total cost that exceeded $3.3 million.
The government also showed at sentencing that the Jenkins purchased 38 vehicles over the course of the scheme, including many Lexus automobiles, a Mercedes Benz, a Bentley, and a Porsche. According to evidence proffered at sentencing, Sandy Jenkins and Kay Jenkins purchased a new automobile every time they needed an oil change. The government further established at sentencing that the Jenkins spent over $11 million on a Black American Express card alone—roughly $98,000 per month over the course of the scheme—for a couple that had a legitimate income, through the Bakery, of approximately $50,000 per year. The evidence at sentencing also established that a significant portion of stolen funds (approximately $1.2 million) were spent at Neiman Marcus at Northpark in Dallas where Sandy Jenkins and Kay Jenkins had nicknames, “Fruitcake” and “Cupcake,” respectively. The government further proffered evidence at sentencing that the Jenkins stopped shopping at Neiman Marcus when Neiman’s ran out of things to sell them.
Based on the evidence at sentencing, the Court determined that the total loss as a result of Sandy Jenkins’s offense was $16,766,645.70. Through the efforts of law enforcement in this case, the government recovered approximately $4,000,000 in property and cash that will be turned over to the Bakery as partial restitution for the losses suffered in this case. That includes the following: (a) four vehicles, including a 2005 Lexus SC, a 2010 Mercedes Benz CL550, a 2013 GMC Yukon Denali, and a 2013 BMW X53 (having an approximate value of $150,000); (b) 532 luxury items, including 41 bracelets, 15 pairs of cufflinks, 21 pairs of earrings, 16 furs, 61 handbags, 45 necklaces, 9 sets of pearls, 55 rings, and 98 watches (having an approximate value of $3.5 million); $580,754.90 in cash; a wine collection (having an approximate value of $50,000.00); and a Steinway electronic piano (having a value of $58,500.00). As a result of the turnover of property, the Court ordered restitution jointly and severally for Sandy and Kay Jenkins in the amount of $12,697,921.79 to be paid to the Bakery.
The FBI conducted the investigation with assistance from the Corsicana Police Department and the Austin Police Department. Assistant U.S. Attorney J. Nicholas Bunch prosecuted the case and Deputy Criminal Chief Assistant U.S. Attorney Melissa Childs handled the forfeiture.
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Dallas Securities Broker Admits FraudRead the Press Release
DALLAS — Wade Lawrence, 43, of Dallas, a securities broker, appeared this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to a felony Information charging one count of securities fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Lawrence faces a maximum statutory penalty of five years in federal prison and a $250,000 fine or twice any pecuniary gain to the defendant or loss to the victims. In addition, Lawrence agrees to forfeit $1,542,966, in proceeds traceable to the offense, in the form of a money judgment and proceeds from the sale of his residence. Lawrence will remain on bond pending sentencing, a date for which was not set.
According to documents filed in the case, from June 2008 through July 2011, Lawrence worked as a securities broker by Oppenheimer & Co. Inc., in Dallas and was active in conducting trades in his customer brokerage accounts. In 2010 and 2011, Lawrence began to lose significant amounts of money, both in his clients’ trading accounts and his individual trading account. In August 2011, Lawrence moved to Southwest Securities in Dallas, where his trading losses continued.
Beginning in January 2012 and continuing through September 2013, Lawrence engaged in a scheme to defraud to obtain funds from individuals, with whom many he had longstanding personal and business relationships and who trusted him. He falsely offered for sale various investments, including real estate ventures and securities outside the brokerage accounts at Southwest Securities. He also offered interests in what he represented were a high-risk investment in options on the Volatility Index (VIX) on the Chicago Board Options Exchange.
Lawrence also solicited funds from several individuals by falsely representing they would be invested in a duplex. He falsely represented to other investors that their money would be invested in various securities such as in Facebook and Southwest Securities.
Lawrence represented to investors that their investments would return anywhere from 20 to 100 percent, and that it was possible to double their investment. In each case, he directed the investor to mail or wire-transfer funds to his personal account at Wells Fargo Bank, instead of a Southwest Securities account, giving various explanations for this, including that he was trying to start his own VIX fund and needed to establish a history for the fund.
Lawrence, however, only invested some of the investors’ money as represented. Instead, he spent several hundred thousand dollars of the proceeds for personal living expenses, including travel, mortgage payments on his Dallas residence, and a $10,000 piece of jewelry. In total, Lawrence obtained approximately $2,124,000 from the scheme. He returned approximately $581,034 to some of the investors.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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Mansfield Man Charged in Armed Robbery of Grandview BankRead the Press Release
DALLAS — A Mansfield, Texas, man has been charged in a federal criminal complaint with committing the takeover-style, armed robbery last week of the Grandview Bank in Grandview, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Michael Dwayne Bailey, 41, made his initial appearance this afternoon before U.S. Magistrate Judge David L. Horan, who ordered that he remain in custody pending a detention hearing set for Friday, September 18, 2015, at 2:00 p.m.
According to the complaint, on Thursday, September 10, 2015, at approximately noon, a man wearing a Texas Longhorns baseball cap, sunglasses, black leather jacket, dark glasses, and subsequently identified as the alleged robber, entered the Grandview Bank located at 105 East Criner Street. He approached a teller, who noticed he was wearing a dark bandana over the lower half of his face, pointed a handgun at the teller, and demanded money.
In fear for her life, the teller froze. The robber climbed on the counter and through the teller window and pointed the handgun directly at the teller’s face, and repeated his demand. Again, fearing for her life, the teller began withdrawing cash from her cash drawer, and the robber reached into the drawer and began grabbing money. The teller handed the money to the robber who took all of it and ran out of the bank. By this time, other bank employees had called 911. An observer saw the robber run to a red, two-door coupe with disabled veteran plates and notified law enforcement.
Acting on the tip, an officer with the Alvarado Police Officer caught up with the robber and activated his red and blue lights and siren, signaling the robber to stop, but the robber did not pull over. Instead, a high-speed pursuit ensued, and officers from several police agencies joined the Alvarado Police Department. They pursued the robber to the city of Mansfield, Texas, and during the pursuit, the robber drove on the wrong side of the road on I-35 and onto the shoulder before ultimately blowing a tire. Speeds even reached 150 miles per hour during the pursuit. The robber and a female passenger were both arrested.
At the time of his arrest, Bailey was wearing a Texas Longhorns ball cap, sunglasses, a black leather jacket and dark pants. The police also recovered the dark-colored bandanna. Knowing the robber was armed, officers searched the car and located a Smith & Wesson 9 millimeter handgun loaded with hollow-point ammunition.
The female passenger was identified as Bailey’s 19-year-old daughter. Officers located the exact amount of cash stolen in the robbery in her purse.
A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of this offense, however, Bailey faces up to 25 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
The FBI, Alvarado Police Department and Mansfield Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay is prosecuting.
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Lamesa, Texas, Insurance Agent Sentenced to 15 Months in Federal Prison for Making False Statements to USDA Federal Crop Insurance Corp.Read the Press Release
LUBBOCK, Texas — A Lamesa, Texas, man, Joel Thomas Napper, who did business as Agwest Insurance Agency, was sentenced on Friday by U.S. District Judge Sam R. Cummings to serve 15 months in federal prison, fined $4,000, and ordered to pay $124,246 in restitution to the U.S. Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC). The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Napper pleaded guilty in June 2015 to one count of making false statements to the USDA’s FCIC and Aiding and Abetting. He must surrender to the Bureau of Prisons on October 16, 2015.
According to documents filed in the case, Napper admitted that from approximately July 23, 2013, to August 26, 2013, he submitted false Acreage Reports (AR) on behalf of his policy holder clients, falsely representing that policy holders had timely signed the ARs enabling them to qualify for the FCIC program and receive federal crop insurance coverage, when, as Napper well know, the ARs were not timely signed and Napper forged them on behalf of his policyholder clients.
The investigation began in May 2014 after the USDA received information that Napper had made false statements by backdating ARs in order to provide multi-peril crop insurance coverage for his policyholders who were making claims on their 2013 cotton insurance policies. Napper admitted that he had forged signatures and backdated ARs for at least 10 policyholders. By transmitting the false statements, Napper caused a $124,246.00 sales commission paid to Agwest Insurance Agency.
The investigation was conducted by the USDA, Office of Inspector General and prosecuted by Assistant U.S. Attorney Paulina Jacobo.
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Lubbock Man Sentenced to 200 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeffrey William McCall, 42, was sentenced this morning by U.S. District Judge Sam R. Cummings to 200 months in federal prison, following his guilty plea in June 2015 to one count of production of child pornography, announced U.S. Attorney John R. Parker of the Northern District of Texas.
According to documents filed in the case, on April 7, 2015, McCall obtained a video of a minor female child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the child.
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 Lubbock Police Department’s Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Man Sentenced to 24 Months in Federal Prison for Carrying Out "Romance" Scam on Internet Dating SiteRead the Press Release
DALLAS — A Canadian resident who ran a “romance” scam on an Internet dating site that caused nearly $300,000 in losses to victims, including some in North Texas, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Oluwaseun Oyesanya, 25, was sentenced by U.S. District Judge Jane J. Boyle to 24 months in federal prison and ordered to pay $287,103 in restitution. He pleaded guilty in October 2014 to one count of conspiracy to commit wire fraud. A co-conspirator in the case, Olusegun Damiola Fajolu, 30, of Oklahoma City, pleaded guilty to the same offense earlier this month and is scheduled to be sentenced on December 17, 2015.
Oyesanya has been in custody since his arrest in March 2014 at the Minneapolis/St. Paul airport by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on a related federal complaint. Fajolu was arrested in Oklahoma City on a separate, but related, federal criminal complaint in April 2015.
According to documents filed in the case, beginning at least in late March 2012 and continuing to March 10, 2014, Oyesanya used the internet alias of “Trisha Jones” to carry out a “romance” scam on the internet dating website, tagged.com. Oyesanya created an online profile for “Trisha Jones,” and using that alias, befriended individuals on the site, and then cultivated a relationship through email and instant messages until an online romantic relationship blossomed.
After establishing the relationship, Oyesanya convinced his victims into believing “she” was in trouble in a foreign country and needed funds wired to “her” as soon as possible. Once the victims agreed to assist “Trisha,” in what they believed was “her” hour of need, Oyesanya directed the victims where to wire the funds.
Co-defendant Fajolu received the funds either directly from the victims or through another co-conspirator. Fajolu would then wire the funds to Oyesanya or to Oyesanya’s family members in various countries, including Nigeria, knowing these funds were the proceeds of a fraud being perpetrated by Oyesanya. For his assistance, Fajolu would keep approximately 30 percent of the funds he received from victims. In addition, according to the filed complaint, Fajolu and another individual purchased a vehicle in Burleson, Texas, with funds from the “romance” scam and had it shipped to Nigeria for Oyesanya.
ICE HSI investigated. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Firearms Trafficker Sentenced to 60 Months in Federal Prison on Firearms Conviction Stemming from Unlawful Manufacture of FirearmsRead the Press Release
DALLAS — A firearms trafficker, who pleaded guilty earlier this year to one count of aiding and abetting the unlawful manufacturing of firearms, was sentenced today by U.S. District Judge Barbara M. G. Lynn, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Maria Deleon, 57, of Camp Wood, Texas, was sentenced to 60 months in federal prison. He has been in custody since October 2014 on a related federal criminal complaint. Camp Wood is located in southwestern Real County
According to the factual resume filed in the case, between December 2010 and May 2011, Deleon entered into a criminal venture with others to manufacture firearms without a license and then sell those firearms to others. Specifically, Deleon purchased a number of AR-15 and AK firearm receivers that needed to be manufactured to become fully functional firearms suitable for resale. Deleon then communicated with two individuals whom he met at a gun show in North Texas, and he offered to pay them if they manufactured his firearms receivers into fully functional firearms. These two individuals agreed to do so, for varying prices depending on the type of firearm, although neither one had an ATF license to engage in the business of manufacturing firearms. On multiple occasions, however, Deleon paid these individuals to manufacture firearms. Deleon also purchased firearms from them.
Ultimately, Deleon sold the firearms to other individuals who, according to the criminal complaint, took them across the Mexican border. Deleon was involved in trafficking more than 600 firearms, 50 of which have been recovered, to date, in Mexico.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Cara Pierce prosecuted.
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Dallas County Men Receive Long Federal Prison Sentences for Committing 2014 Armed Robbery of Subway Restaurant in Richardson, TexasRead the Press Release
DALLAS — Two men who admitted committing the armed robbery of a Subway restaurant in Richardson, Texas, last year, have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Antonio Demond Douglas, 25, of Richardson, was sentenced by U.S. District Judge Barbara M. G. Lynn to serve a total of 125 months in federal prison. A few weeks ago, co-defendant Allen Leon Pleasant, 26, of Dallas, was sentenced to serve a total of 117 months in federal prison. Each pleaded guilty to one count of interference with commerce by robbery and one count of possessing, using and brandishing a firearm in furtherance of a crime of violence.
According to documents filed in the case, at approximately 7:00 p.m., on June 24, 2014, Douglas and Pleasant entered the Subway restaurant at 212 East Spring Valley Road in Richardson with the specific intent to commit robbery. Once inside, Douglas and Pleasant produced firearms, pointed them at a Subway employee and demanded money from the register. The employee, in fear for his life, removed cash from the register and placed it in a plastic bag Douglas provided.
During the course of the robbery, Douglas and Pleasant also robbed three customers inside the restaurant, taking personal items and money, and then they ran from the store. In a subsequent vehicular chase with law enforcement, Douglas and Pleasant operated their vehicle in a manner that created a substantial risk of death or serious bodily injury to other motorists.
The Richardson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Convicted Felon Sentenced to 96 Months in Federal PrisonRead the Press Release
DALLAS — Tevin Rashad Wright, a 27-year-old Grand Prairie, Texas, man with three prior felony convictions, has been sentenced to 96 months in federal prison, by U.S. District Judge Ed Kinkeade, following his guilty plea in May 2015 to one count of being a felon in possession of a firearm. U.S. Attorney John Parker of the Northern District of Texas made the announcement this afternoon.
The day after an August 2014 burglary of a residence in Grand Prairie, Texas, during which several firearms were stolen, the Grand Prairie Police Department’s investigation resulted in the arrest of Wright for the offense. Prior to the date of the robbery, Wright had been convicted of three felony offenses since 2008, all involving cocaine, in Dallas and Tarrant counties.
This case was prosecuted as part of the Project Safe Neighborhood initiative, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Northern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The Grand Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Moore County, Texas, Man Sentenced on Federal Obscenity ConvictionRead the Press Release
AMARILLO, Texas — Bassam Arif Al Zarkani, 33, of Dumas, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 27 months in federal prison, following his guilty plea in July 2015 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Al Zarkani has been in custody since his arrest in April 2015.
According to documents filed in the case, on approximately April 14, 2015, Al Zarkani sent a “friend request” to an undercover officer’s Facebook account, and the undercover officer accepted that friend request. Al Zarkani and the undercover officer exchanged messages and in response to Al Zarkani’s inquiry, the undercover officer responded, “single…no kids thank god…im 15.”
The conversation turned sexual in nature and Al Zarkani sent the undercover officer a sexually explicit photo of himself, and for almost two weeks, Al Zarkani and the undercover officer, whom Al Zarkani believed was a 15-year-old female, sent private messages to each other through Facebook. During the conversations, Al Zarkani warned the undercover officer to keep him a secret from her dad and not tell anyone about him until she is 18 years old. On April 28, 2015, a meeting site was established, and Al Zarkani traveled from Dumas to Amarillo, Texas, to meet the girl. He was arrested when he arrived at the 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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Amarillo Police Department and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Federal Jury Convicts Dallas Man on Drug and Firearm ChargesRead the Press Release
DALLAS — Following a five-day trial, a federal jury has convicted Thomas Earl Wright, 33, of Dallas, on all counts of a superseding indictment charging drug trafficking and firearm offenses, announced U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney John M. Bales of the Eastern District of Texas.
Specifically, Wright was convicted on one count of possession with intent to distribute five kilograms or more of cocaine, one count of possession with intent to distribute marijuana, one count of possessing a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm.
For the possession with intent to distribute cocaine conviction, a statutory maximum penalty of not less than 10 years and up to life in federal prison and a $1 million fine may be imposed. For the possession with intent to distribute marijuana conviction, a statutory maximum of five years in federal prison and a $250,000 fine may be imposed. The firearm possession conviction carries a statutory penalty of at least five years and not more than life in federal prison and a $250,000 fine. The felon in possession conviction carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Wright is scheduled to be sentenced on January 7, 2016, by U.S. District Judge Jane J. Boyle.
According to documents filed in the case and evidence presented at trial, officers with the Dallas Police Department responded to a welfare complaint about a children coming and going from a narcotics stash house on Packard Street in Dallas. When officers arrived at the residence, they encountered Wright leaving the residence, through its back door, with bundles of cash stuffed in his pockets. Wright’s co-defendant, Eric Tyrone Harris, opened the front door to the residence when officers knocked, and officers noted a strong odor of marijuana emitting from the residence through the front door. A juvenile was at the front door with Harris, and officers removed the child from the residence and released him to a parent.
Law enforcement secured a search warrant and found multiple kilograms of cocaine located in a suitcase in a utility room, more than 100 pounds of marijuana in a bedroom closet, and approximately $30,000 in cash — $3,000 in Wright’s pockets and $27,000 in cash beneath a mattress. In addition, they located three firearms in the residence.
Harris pleaded guilty in April 2015 to one count of possession with intent to distribute cocaine and is scheduled to be sentenced on October 1, 2015.
The Dallas Police Department, U.S. Secret Service, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Plano Police Department investigated. Assistant U.S. Attorney Errin Martin of the Northern District of Texas and Assistant U.S. Attorney Heather Rattan of the Eastern District of Texas are prosecuting the case.
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Dallas County Man Sentenced to 144 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27-year-old Irving, Texas, man, Frank Olivarez, Jr., who pleaded guilty in December 2014 to one count of transporting and shipping child pornography, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 144 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in February 2014, a task force officer with the FBI, who was conducting an investigation into the sharing of child pornography on a BitTorrent file-sharing network, identified a computer that was sharing files containing child pornography. The task force officer downloaded 695 image and video files from Olivarez, 648 of which were child pornography.
The FBI then secured a search warrant that they executed at Olivarez’s home. Olivarez admitted using BitTorrent software to download and view child pornography. Agents seized computer media from the home and further forensic analysis revealed that 33 images depicted the sexual exploitation of infants and toddlers.
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’s Child Exploitation Task Force investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Men Plead Guilty to Federal Child Pornography OffensesRead the Press Release
LUBBOCK, Texas — In unrelated cases, two defendants appeared in federal court this afternoon and pleaded guilty to federal child pornography offenses, announced John Parker, U.S. Attorney for the Northern District of Texas.
Felipe Martinez Ramirez, 47, of Ozona, Texas, pleaded guilty before U.S. Magistrate Judge Nancy M. Koenig to one count of producing child pornography. Ramirez, who has been in custody since his arrest this past July, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, Ramirez enticed a minor female to engage in sexually explicit conduct with him at a residence in Ozona, and he used a cell phone to record that conduct reflected in a bathroom mirror.
In the other case, Jacob Seth Thornton, 28, of Lubbock, pleaded guilty before Judge Koenig to one count of receiving a visual depiction of a minor engaging in sexually explicit conduct. He faces a statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. He remains on bond and a sentencing date was not set.
According to plea documents filed in his case, Thornton kept a laptop at his residence that he used, to among other things, search the Internet for images and videos depicting minors engaged in sexually explicit conduct. Thornton used peer-to-peer file sharing software to receive the seven images described in the indictment, as well as many others.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Crockett County Sheriff’s Office investigated the Ramirez case. ICE HSI and the Lubbock County Sheriff’s Office investigated the Thornton case. Assistant U.S. Attorney Steven M. Sucsy is in charge of prosecuting both cases.
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Federal Grand Jury Indicts Amarillo Man on Felony Tax OffensesRead the Press Release
AMARILLO, Texas — A federal grand jury returned an indictment last week charging Randy L. Edwards with three counts of making and subscribing a false return, statement, or other document, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Edwards made his initial appearance in federal court in Amarillo before U.S. Magistrate Judge Clinton E. Averitte.
The indictment alleges that Edwards, a resident of Amarillo, did willfully make, subscribe, and file tax year 2007, 2008 and 2009 Individual Income Tax Returns that failed to report his true income for each tax year.
In the return for tax year 2007, Edwards stated that tax year 2007 gross receipts income, specifically Schedule C, Line 1, was $702,104, when he well knew, that he failed to report all of his business gross receipts for that year totaling approximately $801,155.
In the return for tax year 2008, Edwards stated that tax year 2008 gross receipts income, specifically Schedule C, Line 1, was $835,604, when he well knew, that he failed to report all of his business gross receipts for that year totaling approximately $1,208,878.
In the return for tax year 2009, Edwards stated that tax year 2009 gross receipts income, specifically Schedule C, Line 1, was $728,861, when he well knew, that he failed to report all of his business gross receipts for that tax year totaling approximately $1,135,859.
A federal 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 penalty for each count is three years in federal prison and a $250,000 fine.
Internal Revenue Service Criminal Investigation is conducting the investigation. Assistant U.S. Attorney Tim Hammer is prosecuting the case.
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