Northern District of Texas
Press releases recorded for this federal judicial district.
Allen, Texas, Man Admits Running A Multi-Million Dollar Oil and Gas Investment Fraud SchemeRead the Press Release
DALLAS — Brian J. Polito of Allen, Texas, appeared yesterday before Chief U.S. District Judge Jorge A. Solis and pleaded guilty to an information charging one count of mail fraud stemming from his operation of an oil and gas investment fraud scheme, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Polito faces a maximum statutory penalty of 20 years in federal prison and $250,000 fine, or twice any pecuniary gain to the defendant or loss to the victims. However, according to the plea agreement filed, if the Court accepts the plea, the maximum term of imprisonment is 96 months. Polito also agrees to the entry of a restitution order, forfeiture order, or both, as determined and imposed by the Court, of an amount equal to the victims’ losses (restitution) or the unlawful proceeds (forfeiture) from the scheme.
According to the factual resume filed in the case, Polito was the sole owner/operator of GC Resources, LLC, an oil and gas investment firm that was located on Preston Road in Dallas. Beginning in December 2011, Polito defrauded investors by selling interests in oil and gas projects in which GC Resources had no ownership or interest.
As part of the scheme, Polito researched “Company A” on the Texas Railroad Commission’s website and determined that Company A’s wells were producing. Polito then identified Company A’s drilling permits for wells that were going to be drilled in the future. Through GC Resources, Polito began soliciting investments into Company A’s projects even though GC Resources had no control or interest in the wells.
To convince investors to invest with GC Resources, Polito told investors that GC Resources owned the oil and gas drilling leases, when, in fact, it did not have any ownership or interest in the lease. Polito also misrepresented that GC Resources had an interest in Company A’s wells, when in reality, GC Resources had zero interest in Company A’s wells. Polito informed actual and potential investors that GC Resources had a contract with Company A, which was false. Polito even supplied investors with a document purporting to be a contract between Company A and GC Resources, but that document was fraudulent, as Polito had created it using Photoshop to forge signatures of Company A employees.
Polito paid investors of Company A projects with other fraudulently obtained funds in the manner of a Ponzi scheme.
Polito solicited investments by making cold calls to potential investors and sending prospective investors a packet of materials that included the forged Company Agreement and other documents. Polito deposited investors’ money in a GC Resources bank account to which he had sole control. Over the course of the scheme, Polito raised multiple millions from victim investors, all of which was used to fund a lavish lifestyle.
When investors asked to see the well site, Polito, or a salesperson working for him, would take investors to the actual well site, which was under the control of Company A, in an effort to further deceive investors and prolong his scheme. Polito even obtained production records from the Railroad Commission’s website for Company A wells and provided that information to investors, even though neither Polito or GC Resources had any interest whatsoever in Company A’s wells.
The government has engaged in significant efforts to secure assets for potential restitution to victims. Among other things, the government has recovered $664,000 from the liquidation of the net equity in the following vehicles: a 2014 Roll Royce Wraith, a 2015 McLaren 650S Coupe, a 2014 Lamborghini, a Aventador Anniversary Coupe, a 2015 BMW M4 Coupe, a 2014 Mercedes E63 Wagon, a 2014 Ferrari 458 Speciale, a 2014 Jeep Cherokee SRT8, and one bank account subject to the entry of restitution and/or forfeiture orders.
Last month, the Securities and Exchange Commission (SEC) also filed suit against Polito and GC Resources, LLC for defrauding investors through the sale of interests in oil and gas wells the company never owned.
The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Melissa A. Childs are prosecuting.
Mesquite Man Sentenced to 25 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 20-year-old Mesquite, Texas, man, Jeremiah Chayse Gardiner, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 25 years in federal prison following his guilty plea in October 2014 to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to plea documents filed in the case, an investigation into cybertips received on April 8, 2014, led a detective with the Mesquite Police Department to determine that Gardiner uploaded images of child pornography to a social networking application called Tumblr. On April 17, 2014, detectives with the Mesquite Police Department went to West Mesquite High School to speak with Gardiner and execute a search warrant on his cellphone.
Gardiner admitted uploading images of child pornography to Tumblr, and he further admitted inappropriately touching “Jane Doe #2,” when she was three-years- old. Based on those admissions, the detectives obtained and executed an arrest warrant and search warrant for Gardiner’s residence, and Gardiner was taken into custody.
An examination of Gardiner’s cell phone revealed several images of child pornography, taken with Gardiner’s phone, depicting “Jane Doe,” a two-year-old girl.
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 Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Federal Grand Jury Indicts Dallas Anesthesiologist on Health Care Fraud OffensesRead the Press Release
DALLAS — Dr. Richard Ferdinand Toussaint, Jr., a licensed anesthesiologist who allegedly ran a scheme to defraud health care benefit plans by submitting false and fraudulent claims, has been indicted by a federal grand jury in Dallas on 17 counts of health care fraud, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to the indictment, Toussaint, 57, provided anesthesia services personally and through a company he founded, Ascendant Anesthesia. From approximately 2009-2010, Toussaint practiced medicine at two Dallas hospitals - Forest Park Medical Center located on North Central Expressway and Doctors Hospital at White Rock Lake, located on North Buckner Boulevard.
The indictment alleges that during this time, Toussaint ran a scheme to defraud Blue Cross Blue Shield of Texas (BCBS), United Healthcare (UHC), and the Federal Employees Health Benefits Program (FEHBP) by submitting, or causing to be submitted, false and fraudulent claims for personally performing medical direction of anesthesia services for certified registered nurse anesthetists (CRNAs). Toussaint falsely represented he was “present for” these services when: 1) he was under anesthesia undergoing surgery himself; 2) he was flying on his private jet; 3) he was in another state; and 4) he was at another hospital several miles away. For example, Toussaint submitted or caused to be submitted several claims representing he was present for and medically directing six patients at two different hospitals and was medically directing two patients while under anesthesia himself.
The indictment further alleges that Toussaint also inflated the amount of time the procedures took and pre-signed patients’ medical records representing the services were provided before the procedures even took place. In addition to personally creating false medical records and inflating anesthesia procedure time, Toussaint directed others to do the same, representing he was present for procedures when he knew he was not.
As part of his approximate 18-month-long fraud scheme, Toussaint billed BCBS, UHC, and the FEHBP more than $8 million, of which at least $5 million was fraudulent.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the maximum statutory penalty for each count of health care fraud is 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The indictment also includes a forfeiture allegation that would require Toussaint, upon conviction, to forfeit proceeds obtained from his fraud scheme, including a 2010 and a 2012 Rolls Royce Ghost; a 2011 Mercedes ML350; a 2011 Bentley Mulsanne, a 2012 Bentley Continental GT and a 2016 Bentley Mulsanne; a 2012 McLaren MP4-12C and a 2015 McLaren 650S Spider; and any and all real property and any and all interests in aircraft.
The FBI; U.S. Department of Labor OIG; U.S. Department of Labor Employee Benefits Security Administration; U.S. Postal Service OIG; U.S. Department of Defense, OIG, Defense Criminal Investigative Service; U.S. Office of Personnel Management OIG; U.S. Department of Health and Human Services, Food and Drug Administration, Office of Criminal Investigation; and Internal Revenue Service Criminal Investigation are investigating. Assistant U.S. Attorneys Brandon McCarthy and Andrew Wirmani are prosecuting.
Gas Pipe, Inc. Smoke Shop Owner, Key Personnel and Store Managers Indicted for Roles in Massive Synthetic Drug Distribution ConspiracyRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted 32 defendants, including Gas Pipe, Inc., its owner, his daughter, and numerous managers, on felony charges stemming from their involvement in a massive synthetic drug distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
“I commend the Drug Enforcement Administration, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service for their work in conducting this long and thorough investigation,” said Acting U.S. Attorney Parker. “This indictment is just another step in our continued effort to protect the citizens of this community from being harmed by the dangerous synthetic drugs that continue to be marketed as ‘legal’ alternatives to illicit drugs.”
“Due to the significant public dangers associated with synthetic drugs, and in this case synthetic cannabinoids, DEA, in coordination with our state and local partners, have made this a law enforcement priority,” said Acting Special Agent in Charge Calvin C. Bond of the DEA in Dallas. “We will continue to coordinate investigative activities with our law enforcement partners in an effort to dismantle organizations responsible for manufacturing and trafficking these dangerous synthetic drugs.”
The indictment supersedes an earlier indictment returned in the case. Six defendants, including Lawrence Shahwan, 39, of Lewisville, Texas, were charged in that indictment and other charging documents with various felony offenses related to the distribution of synthetic cannabis and/or marijuana. All of those defendants have pleaded guilty. One defendant, Justin Laney, was sentenced to 41 months in federal prison. Defendants William Venable, Jason Bond, Craig Starnes and Brody Jones are set for sentencing at various dates in the upcoming months. Shahwan is scheduled to be sentenced in August 2015. According to plea documents filed in his case, if the court agrees, he faces a 156-month federal prison sentence and the forfeiture of over $3 million in property.
The indictment that was unsealed this afternoon charges each of the below-listed defendants with one count of conspiracy to defraud the United States:
Gas Pipe, Inc.
Amy Lynn, Inc.
Gerald Shults, a/k/a “Jerry,” 68
Amy Herrig, 39
Rolando Rojas, a/k/a “Ro,” 40
Ryan Yarbro, 40
John Ben Lincoln, 55
Christopher Ramirez, 32
Daniel Caillier, 48
Kendall Silva, 33
Elizabeth Walker, 36
Bridgett Payrot, 27
Jason Lyon, 42
Joshua Campbell, 32
Mick Clark, 49
Brandon Schubert, 29
Jackie Randall-King, 48
Holly Patterson, 38
Brad Bader, 29
Travis Lovin, 31
Jennifer Dunn, 38
Patrick Shanahan, 31
Carolyn Settlemire, 46
Tom Scott, 68
Rapids Camp Lodge, Inc.
Ridglea Complex Management, Inc.
The majority of these defendants either self-surrendered this week or were arrested today, and most have made their initial appearance in federal court.
In addition to conspiracy, the indictment charges Gas Pipe, Inc. (Gas Pipe), Amy Lynn, Inc. (Amy Lynn), Gerald Shults, Amy Herrig, and Ryan Yarbro each with one count of conspiracy to distribute a controlled substance, one count of distribution of a controlled substance near a public playground and one count of conspiracy to distribute a controlled substance analogue.
Gas Pipe, Amy Lynn, Gerald Shults and Amy Herrig are also each charged with eight counts of maintaining a drug involved premise and aiding and abetting; one count of maintaining drug-involved premises in or near a public playground; and three counts of importing a controlled substance analogue and aiding and abetting.
Gas Pipe, Amy Lynn, Gerald Shults, Amy Herrig, Carolyn Settlemire, Rapid Camp Lodge, Inc., and Ridglea Complex Management, Inc. are also each charged with one count of conspiracy to commit money laundering.
According to the indictment, Shults owned Gas Pipe and Amy Lynn, which maintained locations in Austin, Arlington, Dallas, Fort Worth, Garland and Plano, Texas, and in Albuquerque, New Mexico. Gas Pipe and Amy Lynn sold millions of dollars in products commonly referred to as “spice” in the “designer” or synthetic drug market. “Spice” is a common street term referring to a smokeable organic plant substance that has been combined with a synthetic cannabinoid. The synthetic cannabinoids contained in the “spice” they distributed was typically considered either Schedule I controlled substances or controlled substance analogues. To perpetuate an illusion of legality surrounding their “spice” distribution, Gas Pipe and Amy Lynn marketed and sold these products to the general public throughout Texas and New Mexico as “herbal incense,” “potpourri,” or “aroma therapy products, claiming these products were “not for human consumption.”
According to the Drug Enforcement Administration (DEA), synthetic cannabinoids are a family of compounds that are functionally (biologically) similar to the delta9-tetrahydrocannabinol (THC), the main psychoactive component in marijuana. Synthetic cannabinoids are being abused for their psychoactive actions and serious public health and safety issues are associated with this abuse. Synthetic cannabinoids, however, are not organic but are chemicals created in a laboratory. There is an incorrect assumption that these products are safe. Physiological effects include increased heart rate and increase of blood pressure, seizures, agitation, vomiting, hallucinations, violence toward police/paramedics, inability to breathe and psychotic episodes.
In addition to being Shults’ daughter, Amy Herrig was known as “the lady who [ran] the Gas Pipe.” Rojas was Gas Pipe’s General Manager and was in charge when Herrig and Shults were not available. Yarbro served as the buyer for Amy Lynn and Gas Pipe, and he was in charge of Amy Lynn’s manufacturing of “spice.” Lincoln, Ramirez and Caillier served as area managers of various Gas Pipe retail locations and Silva, Walker, Payrot, Lyon, Campbell, Clark, Schubert, Randall-King, Patterson, Bader, Lovin, Dunn and Shanahan served as store managers. Settlemire was the office manager, and Scott served as the general contractor for Gas Pipe’s and Amy Lynn’s building projects. Scott also provided supplies to manufacture and produce the “spice” Gas Pipe and Amy Lynn distributed.
The indictment alleges that the defendants conspired together to introduce or deliver an adulterated or misbranded drug into interstate commerce with the intent to defraud or mislead. As part of the conspiracy, the defendants purchased, possessed, packaged, labeled, marketed, distributed and sold substances containing synthetic cannabinoids such as, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, THJ-2201 and AB-FUBINACA. The defendants purchased prepackaged “spice” from manufacturers and those “spice” products were delivered to the Gas Pipe and Amy Lynn warehouse located at 5800 Maple in Dallas, prior to being distributed to each of the Gas Pipe retail locations. These “spice” products would ultimately be marketed, distributed and sold, labeled as “herbal incense,” “potpourri,” or “aroma therapy products” under brand names such as, “Headhunter,” “Black Label,” “Scentsi Star,” “Assassin Revolution,” “Afghan Ice,” “No More Mr. Nice Guy,” “Sour D,” “iBlown,” “Venom,” “WTF,” “Apollo 13,” “Trinity,” “Alien,” and “Plur.” Each of these products was labeled “not for human consumption” and many stated “100% synthetic cannabinoid free” even though each of these products contained a synthetic cannabinoid that the defendants intended for human consumption as a drug. In fact, the indictment details 34 undercover purchases of “spice,” from November 2013 through May 6, 2014, from the various Gas Pipe retail locations.
The indictment alleges that Gas Pipe, Amy Lynn, Shults, Herrig and Yarbro conspired together and with others to manufacture and distribute AB-FUBINACA, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, and THJ-2201, and, on March 11, 2014, they distributed the AB-FUBINACA within 1,000 feet of a public playground.
Gas Pipe, Amy Lynn, Shults, Herrig, Yarbro and Settlemire allegedly purchased, from a company in Denmark, Schedule I controlled substance analogue, THJ-2201, that was imported into the United States from Denmark or China.
The conspiracy to commit money laundering count alleges that Gas Pipe, Amy Lynn, Shults, Herrig, Settlemire, Rapids Camp Lodge, Inc., and Ridglea Complex Management Inc. conspired to commit money laundering by transferring earned proceeds from multiple Wells Fargo bank accounts to various financial accounts at UBS Financial Services. They also used the proceeds to purchase various materials, equipment and real property to facilitate the continuation of the manufacturing and distribution of “spice.” They concealed the source and nature of their proceeds by purchasing assets through a seemingly unrelated and different business entity, and they comingled proceeds from the conspiracy with legitimately earned assets in an effort to conceal the true source and nature of the criminal derived funds.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The offenses charged in the indictment carrying maximum sentences ranging from five to 40 years for each count and fines up to $2 million.
The indictment also includes forfeiture notices that will require some of the defendants, upon conviction, to forfeit proceeds of their criminal activity to the government, as well as real estate located in Arlington, Clifton, Dallas, Austin, Garland, Fort Worth, and Highland Park, Texas; several parcels of real estate in Alaska; five aircraft; a fishing boat; and approximately $16,258,500 in funds the government has already seized.
The DEA, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service investigated. Assistant U.S. Attorneys Brian Poe, Errin Martin, and John J. de la Garza are handling the prosecution.
Dallas Man Recruited to Pass Forged Prescriptions Is SentencedRead the Press Release
LUBBOCK, Texas — A Dallas man, man who, along with his three co-defendants, pleaded guilty to their roles in a hydrocodone and alprazolam distribution conspiracy, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Lee Santrell Boston, 35, was sentenced today by U.S. District Judge Sam R. Cummings to six months in federal prison. Boston, who has been in custody since his arrest, along with co-defendants John Conte Smith, a/k/a “Leo,” 35, of Balch Springs, Texas, and Dallas residents, Crystal Nicole Burks, 30, and Keith Deon Noel, 36, each pleaded guilty in November 2014 to one count of conspiracy to distribute and possess with intent to distribute hydrocodone and alprazolam. Smith was sentenced to 46 months, Burks was sentenced to 24 months, and Noel was sentenced to 10 months in federal prison.
According to plea documents filed in the case, from approximately February 2014 to July 2014, in the Abilene, Lubbock, and Dallas Divisions of the Northern District of Texas, Smith, Burks, Noel, and Boston conspired together, and with others, to distribute and possess with intent to distribute hydrocodone, a Schedule III, and alprazolam, a Schedule IV, controlled substance.
Smith provided others in the conspiracy prescriptions on genuine prescription forms from medical facilities with the names of actual physicians at those facilities, but with fictitious patient names. Other co-conspirators then took the prescriptions to pharmacies to have them filled, eventually taking the controlled substances back to Smith who kept some for himself and sold the remainder.
On February 2, 2014, Burks’ boyfriend was arrested for passing forged prescriptions for her. After his arrest, Burks began passing the forged prescriptions, or using others to pass them, for Smith in the Dallas-Fort Worth area. In May 2014, Smith directed Burks to pass forged prescriptions in the Lubbock and Abilene areas, and Burks had her brother-in-law, Noel, drive her on the trip. Before they left Dallas, Burks and Noel went to a location near downtown Dallas and recruited a homeless person, Boston, to go with them. The three left Dallas and drove to Lubbock on May 20, 2014.
The next day, Burks and Noel drove Boston to several pharmacies in Lubbock where he passed forged prescriptions that Burks had given him and paid for the prescriptions with money she had given him. Boston turned over the filled prescriptions and the change to Burks.
Burks, Noel and Boston drove to Abilene the next day, May 22, 2014, where, after passing forged prescriptions, they were arrested by officers with the Abilene Police Department. Inside Burks’ purse were pill bottles containing hydrocodone and Alprazolam, as well as prepared prescription forms that had not yet been passed. Prepared, but unpassed, prescription forms were found in other places in the car. John Conte Smith’s fingerprint was found on one of the unpassed prescription forms.
A search warrant was executed at Smith’s home on July 2, 2014, and law enforcement located filled prescriptions for hydrocodone and alprazolam for persons other than Smith, as well as prepared prescription forms in other people’s names that had not yet been passed. Officers also found a 9mm semiautomatic pistol and ammunition in the nightstand by Smith’s bed.
The FBI and the Abilene Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Armed, Violent, Jewelry Store Robber Sentenced to 594 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man, who, along with his co-conspirator admitted committing the armed robberies of several jewelry stores in the Dallas-Fort Worth (DFW) area, was sentenced this morning to a lengthy federal prison sentence, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Michael Demon Jackson, 37, of Dallas, was sentenced to serve a total of 594 months in federal prison by U.S. District Judge Sidney A. Fitzwater. He pleaded guilty in November 2014 to one count of conspiracy to interfere with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
A co-conspirator, Mark D. Whitfield, 36, of Mesquite, Texas, is scheduled to be sentenced on June 5, 2015. He pleaded guilty in September 2014 to the conspiracy count and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, from approximately October 18, 2013, to May 22, 2014, Jackson and Whitfield conspired to rob, and did rob, the below-listed jewelry stores located in shopping malls in the DFW area, of more than $400,000 of jewelry:
October 18, 2013 and February 4, 2014 - Marquise Jewelers in Valley View Mall, 13331 Preston Road, Dallas
February 24, 2014 - Classic Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas
April 29, 2014 - Gianni’s Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas
May 20, 2014 - Benson’s Jewelers in The Parks at Arlington Mall, 3811 South Cooper Street, Arlington, Texas
During each of the two Marquise Jewelers robberies, Whitfield distracted a store employee by pretending to be interested in buying jewelry and asking the store employee to show him merchandise in the display cases. Once the employee was distracted and the display case opened, Jackson went around the counter and, in one robbery, held a firearm to the employee’s head and threatened to kill her, and in the other robbery, pushed the employee to the floor, held a firearm to her head and, again, threatened to kill her.
During each of the other three robberies, the defendants committed and threatened physical violence with a firearm.
The FBI investigated the case. Assistant U.S. Attorney Lisa Miller prosecuted.
Arlington, Texas, Woman Sentenced to 33 Months in Federal Prison for Stealing Social Security and VA Benefits Belonging to Her Deceased ParentsRead the Press Release
DALLAS — An Arlington, Texas, woman, who admitted stealing retirement insurance benefits and veterans’ benefits from her deceased parents, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Latasha Smith, a/k/a Latasha Matthews, 34, was sentenced by U.S. District Judge John McBryde to 33 months in federal prison and ordered to pay a total of $143,403 in restitution to the Social Security Administration (SSA) and the Department of Veterans Affairs (VA). Judge McBryde ordered that she surrender to the Bureau of Prisons on June 5, 2015.
According to documents filed in the case, Smith’s father, Paul Smith, died in December 1989, and at the time of his death, he was receiving SSA Title II Retirement Insurance benefits under the name of Barney Smith, an alias identity with a different Social Security number. Although the SSA was notified that Paul Smith died, it did not recognize Barney Smith as an alias identity, and it continued to pay benefits to Barney Smith.
From December 1989 through December 2008, Mary Smith, Paul/Barney Smith’s wife, received and used these Social Security benefits for her personal use. As Paul Smith’s surviving spouse, she also applied for and was approved to receive VA Dependency and Indemnity Compensation benefits. While Mary Smith’s use of the SSA benefits constituted theft, she was a legitimate recipient of the VA benefits.
When Mary Smith died in December 2008, she was no longer entitled to any additional VA benefits. The SSA benefits she had been receiving were directly deposited into a joint bank account held by Barney and Mary Smith. The VA benefits were directly deposited into a joint bank account held by Paul and Mary Smith.
Latasha Smith had access to both accounts after her mother’s death. She admitted that she transferred the SSA funds into the account holding the VA funds and then subsequently cashed checks written to her, or her husband, drawn on that account and also used an ATM card to electronically withdraw funds from the account.
The SSA’s Office of the Inspector General, with assistance from the VA’s Office of Inspector General investigated. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Iraqi-born U.S. Citizen Arrested for Making False Statement to the FBIRead the Press Release
DALLAS – A Mesquite, Texas, man was arrested earlier today by the FBI on a criminal complaint charging him with making a false statement to the FBI, announced Assistant Attorney General for National Security John P. Carlin, Acting 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.
Bilal Abood, 37, an Iraqi-born naturalized U.S. citizen who migrated to the United States in 2009, made his initial appearance in federal court in Dallas this afternoon. Abood will remain in custody pending a probable cause and detention hearing set for May 15, 2015.
According to the complaint, on March 29, 2013, Abood attempted to depart the United States from Dallas Fort Worth International Airport, but was not allowed to board the flight. While at the airport, FBI agents asked Abood about his planned travel, and he initially advised agents that he was merely planning to travel to Iraq to visit family. During a subsequent interview, agents asked Abood again about his attempted travel — specifically asking if he intended to go to Syria to fight, and Abood stated that was not his intent. Later in that interview, however, Abood admitted that his intent on March 29, 2013, was to go to Syria to fight against the Assad regime, claiming he wanted to fight with the Free Syrian Army (FSA).
On approximately April 29, 2013, Abood left the United States through Mexico and traveled through various countries in order to get to Turkey. Upon Abood’s return to the United States on Sept. 16, 2013, the FBI interviewed him again. In that interview, Abood admitted traveling to Syria through Turkey, and claimed that he went there to fight with the FSA and that he had stayed in an FSA camp. Abood stated that he became frustrated with a lack of action and wanted to return to the United States. He denied ever providing financial support to al-Nusrah Front (ANF), the Islamic State of Iraq and the Levant (ISIL) or any other terrorist organization.
A review of Abood’s computer on July 9, 2014, pursuant to a federal search warrant, revealed Abood pledged an oath to Abu Bakr al-Baghdadi, the leader of ISIL, on June 19, 2014. The search warrant also revealed that Abood had been on the internet viewing ISIL atrocities such as beheadings, and had used his twitter account to tweet and retweet information on al-Baghdadi.
On April 14, 2015, FBI agents went to Abood’s residence to return his computer that was seized in the 2014 search warrant. Abood admitted that he knew it was a crime to lie to an FBI agent, and Abood denied to the agents that he had ever pledged allegiance to al-Baghdadi.
The maximum statutory penalty for the offense charged in the complaint is eight years in federal prison and a $250,000 fine.
A complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The matter is being investigated by FBI’s Dallas Division. 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.
Fort Worth Woman and Daughter-in-Law Tax Return Preparers Sentenced on Conspiracy and Tax ConvictionsRead the Press Release
FORT WORTH, Texas — Two Fort Worth, Texas, tax preparers who were convicted at trial in November 2014 on 34 counts of a superseding indictment charging conspiracy and other tax offenses, were sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ramona C. Johnson was sentenced to 170 months in federal prison by U.S. District Judge John McBryde and Nekia N. Everson was sentenced to 95 months in federal prison. Both must surrender to the Bureau of Prisons by June 5, 2015.
According to evidence presented at trial, Ramona C. Johnson managed/operated a tax preparation business in Fort Worth that was known, among other names, as Tax Office One. Johnson’s daughter-in-law, Nekia N. Everson, was a return preparer for the business, according to evidence presented at trial.
Johnson and Everson were each convicted on one count of conspiracy to aid and assist in the preparation and presentation of a false tax return. Johnson was also convicted on 26 counts of aiding and assisting in the preparation of a false tax return and two counts of filing false tax returns. Everson was also convicted on five counts of aiding and assisting in the preparation and presentation of a false tax return.
The government presented evidence at trial that Johnson and Everson, and those working with them, prepared and filed false and fraudulent tax returns that included various false and fraudulent schedules, deductions, exemptions, and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. As a result of the larger refunds, Johnson and Everson were able to charge higher fees for preparing returns, build client loyalty, and increase business through client referrals.
In some instances, Johnson and Everson, and those working with them, created false and fraudulent Schedule C (reporting business losses/profits) and Schedule A (reporting itemized deductions) forms to accompany the taxpayer’s Form 1040. The taxpayers would often be asked about their personal expenses, such as those incurred commuting to and from work, cell phone, automobile, clothes, etc., and then the information would be fraudulently listed on the Schedule C as business expenses or unreimbursed employee expenses on Schedule A. On some returns, Johnson and Everson would completely fabricate a Schedule C business, including income and expense items. For some taxpayers, Johnson would create a false and fraudulent Schedule C reflecting the taxpayers had a profit from a nonexistent business. This false profit, together with claimed dependents (both fraudulent and actual), would be used to claim the taxpayer was entitled to an earned income tax credit.
In other instances, according to evidence presented at trial, Johnson and Everson would include false dependent exemptions on tax returns for some clients. Johnson, or someone working with her, would acquire various personal identities, the names and social security numbers of individuals with no connection to the taxpayer to use as false dependents on tax returns prepared for clients. When included on the tax return, the false dependents would increase the number of exemptions, increase the deduction for exemptions, and often, entitle the taxpayer to an earned income tax credit.
In addition, the government presented evidence that for calendar years 2009 and 2010, Johnson filed tax returns in which she reported total income of $2,850 and $16,906, respectively, when she well knew that the income amount was understated in that it did not include income she received for her work preparing tax returns.
Between January 2008 and October 2011, according to evidence presented at trial, Johnson’s tax preparation business collected more than $1.9 million in tax preparation fees from clients.
IRS Criminal Investigation investigated. Assistant U.S. Attorneys Mark Nichols and Chris Wolfe prosecuted.
Three Dallas Residents Indicted on Bankruptcy-Related ChargesRead the Press Release
DALLAS — A federal grand jury in Dallas returned two unrelated indictments last week charging three Dallas residents with felony offenses stemming from filed bankruptcy petitions, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In one indictment, Diana Yamille Hernandez, 41, is charged with one count of misrepresentation of a Social Security number and one count of making false statements under penalty of perjury. Her co-defendant, Erica Soria, a/k/a “Erica Soria Fisher, 39, is charged with one count of making false statements.
According to that indictment, in August 2011, Hernandez retained a law firm, identified in the bankruptcy petition as the Allmand Law Firm of Dallas, to help her file for bankruptcy. Soria, an employee of that firm, assisted Hernandez in preparing and processing the bankruptcy documents. Hernandez told Soria that she was using a false Social Security number and possessed a fraudulent Social Security card. Both Hernandez and Soria concealed the existence of this false Social Security number in documents filed with by the law firm with the bankruptcy court.
Hernandez made her initial appearance in federal court this afternoon; Soria made her initial appearance on Friday. U.S. Magistrate Judge Renee Harris Toliver released both on bond.
In a separate, unrelated indictment, Al Hakeem Muhammad, II, 26, is charged with one count of misrepresentation of a Social Security number. The indictment alleges that he used a Social Security number that he knew was not his when he completed a credit application to obtain a lease on an apartment located in Victory Park in Dallas.
That indictment stems from a federal criminal complaint filed last month against Muhammad. According to that complaint, Muhammad also stated on that credit application that he had never filed for bankruptcy protection, when, in fact, Muhammad personally filed for bankruptcy in May 2013 in the Eastern District of Texas and in July 2012, October 2012, and January 2013 in the Northern District of Texas. In addition, according to that complaint, in March 2015, Muhammad also made a false statement, under penalty of perjury, in relation to a bankruptcy filing he made when he misstated on that filing that the current value of real estate he owned in Detroit, Michigan, was $77,000, when it fact, in 2014, it was valued for tax purposes at $10,200. He also falsely testified to that in an April 2015 bankruptcy hearing.
Muhammad made his initial appearance in federal court on the complaint on April 28. His arraignment is set for May 26, 2014.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. The maximum statutory penalty for each of the offenses charged in these two indictments is five years in federal prison and a $250,000 fine.
These cases represent felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. Since February 2013, 12 defendants have been charged with various felony offenses. Six defendants have entered guilty pleas and five have been sentenced. One defendant is set for trial, and one defendant remains in fugitive status with outstanding arrest warrants.
The FBI investigated the Muhammad case, and the Social Security Administration Office of the Inspector General investigated the Hernandez/Soria case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Lubbock County Man Sentenced to 108 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 27-year-old Shallowater, Texas, man, Michael Wayne Brown, was sentenced today by U.S. District Judge Sam R. Cummings to 108 months in federal prison and a 20-year term of supervised release, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, Brown owned various telephones and electronic devices, and he stored pornographic images on some of them, including an 8GB Sandisk memory card. On that memory card, Brown stored numerous images of child pornography, some of which involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department’s Internet Crimes Against Children (ICAC) Task Force and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Dallas Physician and His Employee Arrested for Alleged $5.2 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – A physician who ran a medical house call service business in Dallas, and an employee of that business were arrested this morning on charges related to their alleged participation in a $5.2 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John R. Parker of the Northern District of Texas, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Dallas Regional Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Thomas M. Class, Sr. of the FBI’s Dallas Division and Special Agent in Charge Max Eamiguel of the U.S. Postal Service’s Office of the Inspector General’s (USPS-OIG) Southern Area Field Office made the announcement.
Hector Molina, M.D., 51, of Irving, Texas, and Blanca Mata, 46, of Forney, Texas, were charged with one count of conspiracy to commit health care fraud. In addition, Molina was charged with eight counts of health care fraud, and Mata was charged with four counts of health care fraud. Both defendants made their initial appearances before U.S. Magistrate Judge Renée Harris Toliver of the Northern District of Texas earlier today and were released on bond.
According to allegations in the indictment, Molina owned and operated Molina Medical Housecall Services in Dallas, and Mata was an employee of that business. The indictment alleges that from approximately June 2012 through January 2015, Molina and Mata conspired to defraud Medicare by billing for home visits performed by Mata, who was not a physician, as if Molina had performed the home visits. Additionally, the indictment alleges that Molina billed for home visits performed in the Dallas area while he was out of the country.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by HHS-OIG, the Texas Attorney General’s MFCU, the FBI and USPS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas. The case is being prosecuted by Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Dallas Home Builder Sentenced to 24 Months in Federal Prison and Ordered to Pay More Than $250,000 in Restitution for Defrauding Insurance CompaniesRead the Press Release
DALLAS — A residential homebuilder, who operated under the name of Park Cities Development, Inc., was sentenced yesterday by U.S. District Judge Barbara M. G. Lynn, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Edward Adrian Abraham, 56, most recently of Dallas, was sentenced to 24 months in federal prison and ordered to pay $252,078 in restitution. He pleaded guilty in April 2014 to one count of wire fraud, and he has been in custody since his arrest on related charges outlined in a federal indictment returned by a grand jury in Dallas in January 2014.
According to documents filed in the case, from February 2009 through at least July 2009, Abraham devised and executed a scheme to defraud insurance companies in connection with fraudulent insurance claims based on false claims of building materials allegedly stolen from two residential job sites in Dallas - one on Amherst Avenue and one on Drane Drive.
As part of his scheme, Abraham filed false police reports to support the fraudulent insurance claims, and he caused false and fraudulent invoices to be fabricated and faxed to insurance companies to support the claims. Abraham admitted that no building materials were stolen from either location. Because of the false and fraudulent invoices, he received $247,078 in proceeds from the insurance companies.
The FBI investigated the case. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Former DISD Employee and Co-Conspirator Sentenced for Roles in Mail Fraud ConspiracyRead the Press Release
DALLAS — A former employee with the Dallas Independent School District (DISD) and her co-conspirator, who each pleaded guilty to one count of conspiracy to commit mail fraud, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Maricella Reed, 41, who was employed by the DISD as a data specialist in the worker’s compensation section of the district’s Risk Management Department, was sentenced in March by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison.
Today, Judge Fitzwater sentenced Reed’s co-conspirator, Adrian Bevelle, 32, to 39 months in federal prison. They were ordered to pay, jointly and severally, more than $161,000 in restitution. Reed is currently serving her sentence; Bevelle must surrender to the Bureau of Prisons on June 16, 2015.
According to documents filed in the case, from May 2009 to May 2011, Reed used her position to cause unauthorized payments be issued to Bevelle. Bevelle was not a DISD employee nor was he a worker’s compensation claimant; he was not entitled to any benefits from the DISD worker’s compensation program.
Reed altered information sent to Accounts Payable, substituting Bevelle’s name in place of legitimate claimants and adding Bevelle’s name and payment amounts to the list of legitimate claimants. Reed also created and submitted payment voucher forms for Bevelle in various amounts. Based on the information Reed provided, Accounts Payable issued checks to Bevelle and mailed the checks to him at various addresses in Dallas and Irving. Bevelle received, endorsed and cashed the checks at various locations.
The U.S. Postal Inspection Service investigated. Special Assistant U.S. Attorneys Dan Gividen and Michelle Allen-McCoy prosecuted.
Pipe Line Company’s Project Coordinator at Roscoe, Texas, Facility Pleads Guilty to Wire FraudRead the Press Release
LUBBOCK, Texas — A 55 year-old Roscoe, Texas, man appeared in federal court today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to a felony offense stemming from a fraudulent invoicing scheme he ran while working at Chevron Pipe Line Company, announced, John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gerald Allen Williams pleaded guilty to a criminal information charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Judge Koenig ordered that he remain on bond pending sentencing, a date for which was not set.
According to documents filed in the case, Williams worked as a Project Coordinator at Chevron Pipe Line Company’s Roscoe, Texas, facility. He was responsible for ensuring the completion of several construction and maintenance projects.
E.D. Walton Construction Company (EDW) out of Snyder, Texas, was a Chevron contractor that performed various construction and maintenance projects for Chevron.
Sometime around 2006-2007, according to plea documents filed, Williams approached EDW about a fraudulent invoicing scheme. EDW would create fictitious invoices and submit them to Chevron through the Arriba System, Chevron’s system for receiving and paying invoices. Williams would approve the fictitious invoices for payment, and the fictitious invoices would be processed for payment to EDW. Once EDW received payment for the fictitious invoices, it would pay Williams, in cash, the exact amount of the fictitious invoice. EDW did not receive any of the proceeds from the fictitious invoicing; Williams received all the proceeds. The scheme continued until approximately December 2011.
Williams admitted that he knowingly devised or intended to devise the scheme to defraud Chevron of money by means of false and fraudulent invoices. He further admitted he acted with the specific intent to deceive or cheat Chevron into thinking that EDW had completed various construction and maintenance projects for Chevron, when in fact, Williams knew EDW had not completed those projects.
The FBI investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Garland Man Sentenced to 168 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Mark Stamps, of Garland, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 168 months in federal prison on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Stamps, 54, pleaded guilty in May 2014 to a felony information charging one count of transporting and shipping child pornography. He has been in custody since his arrest in April 2014.
The investigation began when a detective with the Sherman, Texas, Police Department, identified a computer that appeared to be sharing child pornography. In fact, the detective was able to obtain a list from the shared folder that contained at least 90 files of known or suspected child pornography.
Further investigation revealed that the computer belonged to Stamps, and based on this information, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stamps’ residence on April 10, 2014. Special agents located child pornography videos on an external hard drive.
Stamps admitted that at the time of the search, he knowingly had more than 2500 child pornography images and videos on his computer and other media. Some of those images and videos depicted sadistic and/or violent content, and some of the files depicted 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.”
ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Equity Trader Sentenced to 30 Months in Federal Prison and Ordered to Disgorge More Than $3.5 Million in Illegal Profits on Securities Fraud ConvictionRead the Press Release
DALLAS — Daniel Lutz Bergin, 42, of Dallas, was sentenced Friday afternoon by U.S. District Judge Barbara M. G. Lynn to 30 months in federal prison following his guilty plea in July 2014 to one count of securities fraud, announced Acting U.S. Attorney John Parker of the Northern District of Texas. Bergin was also ordered to pay a money judgment of $1,384,603 and a $500,000 fine with additional disgorgement in a companion case brought by the Securities and Exchange Commission of approximately $1.7 million—resulting in total monetary remedies in the case that exceed $3.5 million. Judge Lynn ordered that Bergin surrender to the Bureau of Prisons on or before June 23, 2015.
According to plea documents filed in the case and the evidence presented at sentencing, Bergin was an equity trader at Cushing MLP Asset Management, LP (Cushing), a registered investment advisor located on Preston Road in Dallas. Cushing had approximately $2.5 billion in discretionary assets under management. Cushing provided advisory and portfolio management services to institutional clients, including high net worth individuals, investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and state/municipal government entities.
Beginning in at least January 2010 and continuing until his termination on May 23, 2013, Bergin devised and executed a “front-running” scheme in which he misused “inside” or “material, non-public” information when placing trades in a personal brokerage account held in the name of his wife. Bergin’s front-running scheme involved (a) obtaining material, non-public information from his employer concerning large orders to purchase or sell securities for its advisory clients; and (b) subsequently executing trades in the same securities, prior to the execution of the larger customer orders, in anticipation of the movement in price that the large trade was likely to cause. The government’s evidence at sentencing identified 696 transactions in which Bergin traded in energy MLP securities at the same time as Cushing traded in the same securities. Over the course of the scheme, Bergin’s profits from the illegal trading exceeded $3 million.
In furtherance of the scheme, Bergin made false statements and material omissions to Cushing, in violation of Cushing’s Code of Ethics in connection with the front-running trades. In particular, although Bergin disclosed certain personal brokerage accounts held in his name at Fidelity and Scottrade, Bergin failed to disclose brokerage accounts maintained at Fidelity in the name of his wife. After Bergin’s and his wife’s Fidelity accounts were closed by Fidelity, Bergin opened E*TRADE accounts in his wife’s name, which were not disclosed to Cushing as required, and which he continued to use to make unlawful front-running trades.
The evidence at sentencing also established that Bergin made false statements to the SEC in connection with his personal trading, and then continued engaging in illegal front-running trades up until the date of his termination.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated with assistance from the Fort Worth Regional Office of the Securities and Exchange Commission. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Two Dallas Roommates Each Sentenced to 21 Months in Federal Prison for Conspiring to Obstruct Justice and Lying to Exonerate Another Roommate Facing A Federal Firearm OffenseRead the Press Release
DALLAS — Two women who pleaded guilty in November 2014 to federal felony offenses stemming from their conspiracy to obstruct justice to exonerate a fellow roommate, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Daisy Emerson, 24, and Ofelia Nunez, 19, were each sentenced on Wednesday by U.S. District Judge Barbara M. G. Lynn to 21 months in federal prison. Each pleaded guilty to one count of conspiracy to obstruct an official proceeding and one count of making a false declaration before a court.
According to documents filed in the case, Emerson and Nunez’s roommate, convicted felon Chaddrick Darrion Ashley, 25, was arrested on March 26, 2014, for possession of a firearm by a felon. Shortly after his arrest, Emerson conspired with Ashley and Nunez to come up with a strategy to exonerate Ashley. They agreed that Nunez would execute a false affidavit claiming she, not Ashley, owned the gun, and that Nunez had mistakenly left her gun in the car.
Nunez executed that false affidavit, and just days before Ashley’s trial on that offense in federal court, she executed a second affidavit affirming those facts. Both she and Emerson falsely testified in Ashley’s federal trial on the firearm offense in September 2014 to corruptly obstruct and influence those official proceedings. Nunez falsely testified as to several facts about events on the day of Ashley’s arrest, and Emerson falsely testified, denying any involvement in producing the false affidavit. The goal of their conspiracy was, through false affidavits and false testimony at trial, to have the jury acquit Ashley.
Ashley’s trial ended in a mistrial. Approximately one month later, however, a federal grand jury returned a superseding indictment charging Ashley with one count of conspiracy to obstruct justice and one count of possession of a firearm by a convicted felon. He pleaded guilty to the conspiracy count, admitting he helped Emerson and Nunez execute a false affidavit and encouraged them to testify falsely at his trial. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He is scheduled to be sentenced on July 1, 2015.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Brothers Convicted in Synthetic Drug Distribution Conspiracy Sentenced to Lengthy Federal Prison TermsRead the Press Release
DALLAS — Two brothers who were convicted by a federal jury in Dallas in October 2014 on multiple felony offenses stemming from their operation of a dangerous, designer synthetic drug trafficking organization, were sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Barry Bays, 44, was sentenced by U.S. District Judge Jane J. Boyle to 425 months in federal prison, and Judge Boyle sentenced his brother, Jerad Coleman, 28, to 188 months in federal prison. In addition, Bays and Coleman were ordered to forfeit: a residence on Tillman Road in Fort Wayne, Indiana, $437,000 in funds seized by the government during the investigation, and multiple vehicles and a motorcycle. In addition, the defendants were ordered to pay a personal money judgment of approximately $7.3 million, which constituted the proceeds obtained during the course of the conspiracy.
Residents of Fort Wayne, Bays and Coleman were convicted on all counts of a fourth superseding indictment returned by a federal grand jury in July 2014. The charges stemmed from the Drug Enforcement Administration’s (DEA) Project Synergy that targeted these synthetic drug trafficking organizations.
Bays and Coleman were each convicted on one count of conspiracy to defraud the U.S. Food and Drug Administration (FDA); one count of conspiracy to commit mail fraud; and one count of conspiracy to distribute a controlled substance analogue. In addition, Bays was also convicted on one count of possessing a firearm in furtherance of a drug trafficking crime and one count of using a communication facility to facilitate a drug felony.
Seven other defendants charged in the case have pleaded guilty to their respective roles and have been sentenced as follows:
Samuel Madeley, 23, of Denton, Texas, 57 months
David Muise, 23, of Londonderry, New Hampshire, 36 months
Holden Bownds, 23, of Denton, Texas, 90 months
Aaron Parrish, 31, of Fort Wayne, Indiana, 51 months
Jennie Miller, 41, of Fort Wayne, Indiana, 12 months and one day
Brandon Zerler, 26, of Fort Wayne, Indiana 60 months
Defendant Kyle Boyer, 31, of Fort Wayne, Indiana, is scheduled to be sentenced on June 11, 2015.
Bays owned Little Arm, Inc., that did business as B&B Distribution (B&B) in Fort Wayne and then later in Defiance, Ohio. B&B sold products marketed as “incense,” “potpourri,” “air freshener,” or “aroma therapy products,” which claimed to be “not for human consumption,” to businesses in at least 38 states. Coleman served as a corporate officer for B&B and held various positions within the business.
During the conspiracy, Bays, Coleman and others conspired together to defraud the FDA by introducing or delivering an adulterated or misbranded drug into interstate commerce with the intent to defraud or mislead. As part of the conspiracy, Bays, Coleman and others possessed, packaged, labeled, marketed, distributed and sold substances containing various synthetic cannabinoids throughout the U.S. Synthetic cannabinoids are defined as “drugs” under the Federal Food, Drug, and Cosmetic Act (FDCA).
After acquiring the synthetic cannabinoids, Bays and B&B had them mixed with a green leafy (smokable) plant material to create a product commonly referred to as “spice.” That substance was then packaged and labeled with brand names such as “B2 Da Bomb,” “V8,” “Roses,” and “Street Legal.” The products were then sold to customers throughout the U.S. as “incense,” “potpourri,” “air freshener,” or “aroma therapy products,” and “not for human consumption,” when in fact, they were intended for human consumption as a drug.
Bays had contracted with Muise for Muise to create multiple YouTube videos, reviewing Bays’ “spice” products. Muise’s reviews documented the intended use of Bays’ products as drugs.
Madeley and Bownds collaborated and collectively brokered the sale of Scheduled I controlled substance analogues. They solicited customers via the internet and knew the chemicals they were brokering were being used to produce “spice” intended for human consumption. Madeley and Bownds made multiple sales to Bays and B&B, where he made his own brands of synthetic “spice” and distributed it to various “smoke shops” and convenience stores throughout the U.S.
The DEA led the investigation with assistance from the Fort Wayne Police Department, Indiana State Police, and the Denton County Sheriff’s Office. Assistant U.S. Attorneys Brian Poe and Brandon McCarthy prosecuted.
Former Tutoring Company Owners Who Admitted Defrauding Dallas and Fort Worth Independent School Districts Are SentencedRead the Press Release
DALLAS — Two individuals who ran a tutoring business from offices in Hurst, Texas, and pleaded guilty to federal offenses stemming from their fraudulent operation of that business, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flori Mati, aka “Florine Shaw,” and David Mbugua, were each sentenced to 60 months in federal prison by U.S. District Judge Barbara M. G. Lynn. In addition, Judge Lynn ordered each to pay, jointly and severally, $1,613,733 in restitution. Each pleaded guilty in October 2014 to one count of conspiracy to make false, fictitious or fraudulent claims. After their arrests in March 2014, the Court determined they were flight risks and ordered them to remain in federal custody.
Under the No Child Left Behind Act of 2001, federal funds were distributed to state educational agencies, which in turn distributed them to school districts in the form of sub-grants. School districts used a portion of these federal dollars to fund a Supplemental Education Services (SES) program. That SES program provided extra academic assistance, such as tutoring, for eligible students at no cost. Tutoring providers billed the local school districts for the hours of tutoring provided and the school district paid for the tutoring with federal grant money.
For the 2011-2012 and 2012-2013 school years, the Dallas Independent School District (DISD) and the Fort Worth Independent School District (FWISD) each received sub-grants and offered an SES program to eligible students at eligible schools.
From 2011 through the beginning of August 2012, Mati, a former DISD teacher, and Mbugua formed four tutoring companies: Wise Links, LLC; Diverse Links, Inc.; Boost Academy and Avenue Academy. They operated all four entities as one business from offices located on West Bedford Euless Road in Hurst. Beginning in September 2011 and continuing through the end of May 2013, Mati and Mbugua contracted with DISD and FWISD, as well as other school districts in Texas, to provide tutoring services under the SES program.
Mati and Mbugua formed these four separate companies to hide their true ownership and mislead the Texas Education Agency into believing they were unrelated companies, and thus, obtain more SES business than a single company could obtain from the various school districts.
They also obtained as many student names as possible. Mati obtained student identifying information by using her online teacher access to the DISD network. Mati, Mbugua and their employees would also go door-to-door with gifts and prizes to induce students to sign up for their tutoring services, regardless of the students’ intent to attend. Mati, Mbugua and their empoyees would then use student information to mass enroll students, via the Internet, from their residence, their Hurst offices and even from Kenya. They falsified documentation supporting their fraudulent claims by inducing students to sign attendance logs for tutoring sessions they did not receive. They even recruited a friend and her children to complete false and forged attendance sheets.
During the course of their conspiracy, Mati, Mbugua and others submitted false claims to DISD, FWISD and other school districts in Texas, for tutoring services under the SES program that were not provided to students. They billed DISD $2,730,389, and they were paid $1,523,079. They billed FWISD $1,430,687, and they were paid $1,003,318. Approximately 75% of the total amounts billed – approximately $3,120,807 – was for services not provided. Mati and Mbugua wired some of the proceeds they received from these false claims to Kenya, beyond the reach of U.S. authorities.
The FBI and U.S. Department of Education – Office of Inspector General investigated. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.
Three Sentenced for Roles in Bribery Scheme at Big Spring Correctional CenterRead the Press Release
LUBBOCK, Texas — A former employee at Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility for an inmate, the inmate, and another individual involved in the scheme, were sentenced this morning by U.S. District Judge Sam R. Cummings, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Eva Bermea, 42, of Big Spring, Texas, was sentenced to 36 months’ probation, with eight of those months to be served in home confinement. Bermea pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting. She worked as a Recreational Specialist at BSCC.
Jonas Cruz, 34, an inmate at BSCC, was sentenced to 24 months in federal prison, to be served consecutively to the 211-month federal sentence he is currently serving following a guilty plea in January 2004 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in connection with a drug crime. Cruz also pleaded guilty on December 30, 2014, to one count of bribery of public officials and aiding and abetting.
Bermea’s friend, Kami Nicole Bennett, 32, of Big Spring, was sentenced to one year of probation. She pleaded guilty to a superseding information charging one count of misprision of a felony on December 30, 2014.
According to documents filed in the case, the investigation began in January 2014 when the Department of Justice Office of Inspector General (OIG) received information that Bermea was suspected of smuggling contraband into the prison for inmate Cruz.
The investigation revealed that Cruz had developed a close friendly relationship with Bermea, and in September 2013, they began to discuss smuggling contraband into the prison for Cruz to sell to other inmates. From September 13, 2013, to December 21, 2013, Bermea smuggled tobacco products and creatine into BSCC on three occasions for Cruz, who paid her $1,500. Cruz admitted he recruited his bother to receive the payments made to him by other inmates for the contraband. This brother would then send the money to Bennett, whom Bermea had recruited to assist in packaging the contraband to be smuggled, and to facilitate receiving and retrieving the money for smuggled contraband.
The Department of Justice OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted the case.
Mesquite, Texas, Drug Trafficker Sentenced to 330 Months in Federal PrisonRead the Press Release
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DALLAS — A man who was found with a large amount of methamphetamine in his house in Mesquite, Texas, last year, was sentenced today by U.S. District Judge Sidney A. Fitzwater to a lengthy federal prison term, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jose Farias Lopez, 24, was sentenced to 330 months in federal prison. He pleaded guilty in October 2014 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance.
Farias Lopez was also ordered to forfeit $36,257 in cash proceeds from the distribution of the methamphetamine, two semi-automatic handguns and assorted ammunition, and a 2011 Mazda SUV.
According to documents filed in the case, Farias Lopez was at a house on April 23, 2014, when law enforcement officers executed a search warrant at the residence. Law enforcement located 875,922 gross grams (approximately 875 kilograms) of methamphetamine in the house. Farias Lopez admitted that his role in the conspiracy was to assist in the packaging and preparation of the methamphetamine for distribution. Farias Lopez admitted he conspired with co-defendant Lino Robles Alvarez, and others, and that it was their intention to distribute the methamphetamine at the residence. Robles Alvarez remains a fugitive.
According to the Drug Enforcement Administration (DEA), this seizure was one of the largest methamphetamine seizures ever in the United States.
The DEA, Dallas Police Department, Garland Police Department, and Mesquite Police Department investigated. Assistant U.S. Attorney George Leal prosecuted the case, and Assistant U.S. Attorney John De La Garza handled the forfeiture.
Abilene Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
ABILENE, Texas —Rockey Koonce, 39, of Stamford, Texas, appeared yesterday in federal court in Abilene and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to one count of receipt of child pornography. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Koonce, who is on bond, faces a statutory penalty of not less than five, nor more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Koonce used a laptop computer at his residence, connected to the Internet, to search for images and videos depicting minors engaged in sexually explicit conduct. In May 2014, Koonce knowingly received a video file depicting a prepubescent female, under age 18, engaged in sexually explicit conduct. Koonce received the video through the use of peer-to-peer file sharing software.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation (FBI), the Wichita Falls Police Department, and the Stamford Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Man Sentenced to 72 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
WICHITA FALLS, Texas — Viviano Nuncio, an Oklahoma man, who was arrested in Wichita Falls, Texas, last year for failing to register as a sex offender, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 72 months in federal prison, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Viviano Nuncio, 50, was arrested on July 30, 2014, and he pleaded guilty in November 2014 to one count of failure to register as a sex offender. The 72-month sentence was an upward departure from the U.S. Sentencing Guidelines.
According to documents filed in the case, Nuncio was convicted in Tillman County, Oklahoma, in December 2005 for lewd molestation, and he was sentenced to 15 years in the Oklahoma Department of Corrections, with all but the first eight years suspended. As a result of this conviction, Nuncio was advised of his requirement to register as a sex offender by the sentencing judge. Nuncio registered as a sex offender upon his release from prison on March 28, 2012. The last time he registered, however, was on September 10, 2013, in Garfield County, Oklahoma.
Nuncio admitted he had moved in with his sister in Wichita Falls the day before Thanksgiving, November 27, 2013. When he was arrested, he admitted he knew he had a duty to register in Texas, but stated that he did not because he was afraid of getting arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Brownwood, Texas, Man Admits Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Lawrence Noll, 40, of Brownwood, Texas, appeared today in federal court before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Noll, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Noll used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Noll located, downloaded, and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Wilbarger County Man Sentenced to 40 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
WICHITA FALLS, Texas — A Wilbarger County man, who possessed methamphetamine with the intent to distribute it, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to a lengthy federal prison term, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Benny Dennis, 54, of Electra, Texas, was sentenced to 40 years in federal prison at a sentencing hearing held yesterday in federal court in Wichita Falls, Texas. Dennis pleaded guilty on September 30, 2014, to one count of possession with intent to distribute and distribution of five grams or more or methamphetamine.
According to documents filed in the case, on March 6, 2014, at the direction of law enforcement, an individual called Dennis to set up a meeting to pay for methamphetamine that Dennis had “fronted” him and to obtain additional methamphetamine from Dennis. The two met at a house on North Wilbarger Street in Electra. During the meeting, the individual paid Dennis $1,500 cash for one ounce of methamphetamine that Dennis had “fronted” him a few days earlier, and Dennis agreed to “front” the individual an additional ounce of methamphetamine. Dennis advised he had to go to a house on East Lincoln Street in Electra to get the methamphetamine. The individual and Dennis travelled separately to that location and met there a little while later. Dennis gave the individual a clear plastic bag of a clear, crystal-like substance. That substance, which was later tested by a Texas Department of Public Safety laboratory, was, in fact, 27.98 net grams of methamphetamine and had a purity level of 95%, which exceeds five actual grams of methamphetamine.
The Texas Department of Public Safety, the Wichita County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted.
Heroin Distributor Allegedly Connected to the Overdose Death of A Dallas Teenager Is Arrested in Orange County, California, Following High Speed ChaseRead the Press Release
DALLAS — A 36-year-old Dallas man, who is charged in a federal criminal complaint that was unsealed today with a felony drug offense stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Lashley, is in federal custody following a high speed chase through Orange County, California, yesterday. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jimison Coleman, a/k/a “Jaymo,” was arrested by officers with the Buena Park Police Department on the federal complaint filed in the Northern District of Texas on March 4, 2015. The complaint charges Coleman with conspiracy to possess with the intent to distribute heroin. It is expected that the U.S. Marshals Service will transport Coleman to the District within the next few weeks to face the charge.
In a related case, Cierra Allyn Rounds, 27, of Dallas, pleaded guilty on March 24, 2014, to the same offense stemming from her role in Ms. Ashley’s overdose death. She remains in custody pending sentencing set for September 8, 2015.
Rounds, and her two co-defendants, Glen William Brunton, 28, and Kathryn Grace Dirks, 25, were each charged in a three-count indictment, returned by a federal grand jury in Dallas in September 2014, with one count of conspiracy to possess with intent to distribute a controlled substance (heroin); one count of possession of a controlled substance with intent to distribute, the use of said substance resulting in the death and serious bodily injury of Rian Lashley; and one count of distribution of a controlled substance (heroin), the use of said substance resulting in the death and serious bodily injury of Rian Lashley.
Brunton has filed plea papers indicating his intention to plead guilty. That plea is set for May 5, 2015, before U.S. District Judge Sam A. Lindsay. Dirks remains a fugitive.
According to plea documents filed in Rounds’ case and the criminal complaint charging Coleman, during the early morning hours of March 25, 2014, Rounds and Brunton traveled from a residence in Dallas to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Rounds and Brunton joined Dirks, Coleman (a local heroin distributor who was involved with Dirks) and Lashley at a booth, and the group ate breakfast together. While sitting in the booth, Rounds and the others became aware that Lashley possessed a large sum of money, approximately $3,000, a cell phone and an iPad.
Rounds admitted that later that morning, in the IHOP parking lot, Coleman delivered five baggies of “China White” heroin to Brunton and that Brunton subsequently distributed the heroin to Lashley in exchange for $100 cash. Rounds and the others learned through conversations with Lashley that she had never used heroin prior to that day. After acquiring the heroin, Rounds, Dirks and Lashley left the IHOP in Lashley’s vehicle, and they traveled to a residence in Dallas where Rounds was living. Coleman and Brunton departed the IHOP in a separate vehicle.
While traveling to the Dallas residence, Rounds used Lashley's cell phone to send a series of text messages to Coleman, including their proximity to the residence and a text message advising Coleman that “…I figured ud want me on this money.” Rounds admitted that when she sent this message to Coleman she was notifying him that she understood that she was to attempt to steal the money Lashley possessed and turn it over to him. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to Coleman asking if she should take Lashley and Dirks inside. Coleman responded with a text message that read, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and to keep her there.
Once inside the residence, Rounds and Dirks, aided and abetted by each other, and at Lashley’s request, took possession of the heroin that was originally supplied by Coleman and used a syringe to inject heroin into Lashley three times. Shortly before those heroin injections were administered, Rounds sent a text message to Coleman stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow Rounds to steal the money that Lashley possessed.
According to the affidavit in Coleman’s case, Dirks turned over a portion or all of Lashley’s money to Coleman later that evening at a hotel in Dallas.
Rounds admitted that later that afternoon, Lashley began showing signs of distress, and she and Dirks placed Lashley in a bathtub of ice water in an attempt to reverse the effects of the heroin. After Lashley was removed from the tub, Lashley was placed on a couch and appeared to go to sleep.
Lashley died later that evening as a direct result of the heroin that was administered to her. An autopsy performed at the Southwestern Institute of Forensic Sciences on March 26, 2014, concluded that Lashley died as a result of the toxic effects of heroin.
A federal 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 U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not more than 20 years in federal prison and a $1 million fine.
The Dallas Police Department, the FBI, the U.S. Marshals Service and the Buena Park Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.
Former Dallas Police Department Vice Detective Sentenced on Obstruction ConvictionsRead the Press Release
DALLAS — A former detective with the Dallas Police Department (DPD), who was convicted at trial last year on three counts of an indictment charging obstruction of official proceedings and obstruction of the due administration of justice, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jose Luis Bedoy, 41, was sentenced to 18 months in federal prison and fined $25,000 by U.S. District Judge Barbara M. G. Lynn. He was ordered to surrender to the Bureau of Prisons on July 7, 2015.
Bedoy worked in DPD’s Vice Unit from November 28, 2007 through July 2013. The government presented evidence at trial that in early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at that establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. A relationship ensued between the two and they began communicating, with Bedoy giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2009 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
When the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, it enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened on April 25, 2013, however, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. In subsequent interviews they conducted, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” later identified as Bedoy, had “tipped off” the business weeks earlier about the pending raid.
On multiple occasions, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit, including Bedoy, and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution.
As a result of Bedoy’s conduct, FBI and federal grand jury investigations were initiated. After learning of the investigation, Bedoy obstructed the federal grand jury proceeding by telling the female to move, to never give her real name if she is pulled over by law enforcement, to not let the FBI into her apartment to talk to her, and to change her cell phone so that there would be no link between them. Bedoy also lied to law enforcement about his contacts with the female and whether he provided her with sensitive law enforcement information.
The FBI and the DPD’s Public Integrity Unit investigated. Assistant U.S. Attorneys Errin Martin and P.J. Meitl prosecuted.
Former Dallas County Probation Employee Pleads Guilty to Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — A Dallas woman, who worked for the Dallas County Department of Criminal Justice, pleaded guilty in federal court today to a drug distribution conspiracy offense, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Selena Ball, 30, of DeSoto, Texas, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of conspiring to possess with intent to distribute a controlled substance (cocaine). She faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine, and she will remain on bond pending sentencing, which is set for July 30, 2015.
Ball and 10 co-defendants were charged in a November 2014 indictment with various felony offenses, including conspiracy, drug trafficking, kidnapping, firearms offenses, witness intimidation/tampering, and records destruction, stemming from their involvement in a violent drug trafficking operation (DTO) that operated in South Dallas and the Dallas County Jail.
From September 23, 2013, to May 27, 2014, Ball was a Pretrial Bond/Electronic Monitoring Officer for the Dallas County Department of Criminal Justice. As part of her duties, she was assigned to monitor an inmate, co-defendant Patrick D. Lenard, 33.
Ball and Lenard were involved in a romantic relationship despite her position and despite the conflict this relationship created. Lenard convinced Ball to alter, modify or fail to report violations of his conditions of release. For example, Lenard was required to limit his travel to certain areas within Dallas to avoid contact with co-conspirators. Part of Ball’s responsibility was to review and identify locations Lenard visited as reflected in the GPS records from his monitoring bracelet. Ball, however, failed to report violations of these conditions by Lenard. In fact, Lenard violated his conditions of release by approaching, confronting and attempting to intimidate coconspirators and witnesses to a kidnaping.
From November 26, 2012, to approximately November 18, 2014, Lenard conducted and managed drug-trafficking activities form his jail cell in the Dallas County Jail. During that time, he called his co-conspirators, including Ball. On multiple occasions, Lenard and Ball had phone conversations regarding illegal narcotics transactions and money obtained from those transactions. Lenard instructed Ball to hide the drug proceeds, and in one conversation, Ball actively counted the drug proceeds. On some of the phone calls, other individuals were conferenced in and Lenard, Ball and the other individual would discuss illegal naracotics transactions and money obtained from those transactions.
Lenard, and another one of his girlfriends, Lashundra Rogers, 35, of Mesquite, Texas, are set for trial on July 13, 2015.
Other defendants charged in the conspiracy, including Juaquai Gregg, Joshua Smart, Shuntocqua Shine, Brandon Florence, a/k/a “Beetlejuice,” Christina Staton, Rory Minafee and Bonner Ray Tutson have pleaded guilty to their respective roles and are awaiting sentencing.
Another defendant, Rodney Wynn, 34, of Kaufman, Texas, was added to the State of Texas’s most wanted list in September 2014 and remains a fugitive.
The investigation is being led by the Texas Department of Public Safety (DPS), the Drug Enforcement Administration, the FBI and the Dallas Police Department.
Assistant U.S. Attorneys Errin Martin and P. J. Meitl are prosecuting.
Dallas Woman Who Stole Nearly $65,000 from Three Federal Agencies and Fled to Kentucky Where She Continued Her Thefts Is Sentenced to Serve A Total of 78 Months in Federal PrisonRead the Press Release
DALLAS — A 31-year-old woman, who stole nearly $65,000 from several federal programs, and in some instances, stole others’ identities to commit the thefts, was sentenced today, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.
Shakira Wells, who was a Dallas resident when she committed many of the offenses, was sentenced by U.S. District Judge Sam A. Lindsay to serve a total of 78 months in federal prison and ordered to pay $64,845 in restitution. Wells pleaded guilty in July 2014 to a superseding information charging one count of theft of government funds and one count of aggravated identity theft. She has been in custody since her arrest in December 2013 on charges outlined in a federal indictment returned by a grand jury in Dallas in July 2013.
According to documents filed in the case, from November 2011 through October 2012, Wells stole Social Security Administration Title II Auxiliary Insurance benefits paid to her for the use of three minor children. These children, however, were in the care and custody of other relatives while Wells received their benefits and converted the funds to her own use.
In or around the same time, Wells also received and improperly converted funds from the Supplemental Nutrition Assistance Program (SNAP) for these three children who were in the care and custody of other relatives.
Again, during the same approximate period, Wells also fraudulently received Federal Family Educational Loan Program (FFELP) funds and Pell Grants from the Department of Education in the name of S.C. Wells applied for and received those funds using S.C.’s identity, but converted the funds to her own use.
Following these offenses, Wells relocated to Lexington, Kentucky, and while there, she assumed other identities. In October 2013, Wells completed a rental application for residents and occupants, with the intent to deceive, by falsely representing the Social Security Number assigned to C.E., was in fact Wells’ Social Security Number. During a search of the apartment rented to her using C.E.’s identity, agents found evidence that Wells had assumed other identities and obtained student loans using those identities.
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped is a big part of our mission,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Southwestern Regional Office. “I'm proud of the work of OIG agents and our law enforcement colleagues in holding Ms. Wells accountable for her criminal actions.”
The investigation was conducted by the U.S. Department of Education Office of Inspector General; Social Security Administration Office of the Inspector General; and the Office of Inspector General, Texas Health and Human Services. Special Assistant U.S. Attorney Nicole Dana prosecuted.
CPA and Former CFO of Service King LLC Is Sentenced to 36 Months in Federal Prison for Embezzling from EmployerRead the Press Release
DALLAS — A local Certified Public Accountant (CPA) was sentenced yesterday afternoon on a mail fraud conviction stemming from his embezzlement of funds from his employer, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Daniel L. Mangini, 61, of Southlake, Texas, was sentenced to 36 months in federal prison and ordered to pay $2,459,218.44 in restitution, which includes the victim’s attorney’s fees, investigative costs, and prejudgment interest, by U.S. District Judge Barbara M. G. Lynn. He must surrender to the Bureau of Prisons by May 5, 2015.
Mangini has also agreed to forfeit his Destin, Florida, residence to the government. While Mangini’s CPA license is not currently active, he agreed he will not oppose any disciplinary action by the Texas State Board of Accountancy related to or concerning his offense, nor practice in the financial sector or in the field of accounting.
According to documents filed in the case and evidence presented at sentencing, Mangini was the Chief Financial Officer at Service King LLC as well as the personal CPA to Service King’s owner, Edward Lennox. Starting in or about January 2006 and continuing until his resignation from Service King in February 2012, Mangini embezzled funds from Lennox. In particular, Mangini accessed Lennox’s computerized accounting system and printed or wrote unauthorized checks which were payable to Mangini’s personal creditors or himself from Lennox’s bank accounts. Mangini sent unauthorized checks for payment to his creditors through the U.S. Postal Service and initiated interstate wire transfers to move embezzled funds between financial entities for his own benefit and to conceal the true source of the proceeds. As a particular example, Mangini admitted in January 2012, he wrote a $40,000 check payable to American Express from one of Lennox’s accounts. Mangini admits the check was not authorized and that the money was embezzled from Lennox. To conceal the scheme, Mangini backdated the check by one year in Lennox’s records. The evidence at sentencing established that over the course of the scheme, Mangini embezzled more than $2 million from the victim.
The evidence at sentencing also established that Mangini made false representations in the course of obtaining a mortgage to purchase in part a luxury beachfront property in Destin, Florida. Through the use of civil forfeiture in the related case of United States v. 4662 Destiny Way, Destin, Florida, Case No. 3:14-CV-2134-P (N.D. Texas), and prejudgment remedies of the Federal Debt Collection Procedures Act in the criminal case to preserve assets before Mangini’s sentencing, the government secured $1.765 million for the victim. Prior to sentencing, the government collected more than $1.65 million from the sale of luxury real estate and goods, which will be immediately disbursed to the victim as restitution. Further, the government has restricted an additional $100,000 in financial and retirement accounts held by garnishees pending final orders.
The FBI investigated. Assistant U.S. Attorneys Melissa Childs and J. Nicholas Bunch prosecuted.
Three Floydada Men Face Federal Drug Distribution Conspiracy ChargesRead the Press Release
LUBBOCK, Texas — Three residents of Floydada, Texas, who were arrested on Friday by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made their initial appearances in federal court this afternoon on drug distribution conspiracy charges outlined in a federal complaint that was just unsealed, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Victor Alaniz, 34, Michael Alaniz, 32, and Jonathan Molina, 22, each appeared this afternoon before U.S. Magistrate Judge Nancy M. Koenig, who ordered that they remain in custody pending further hearings set for Wednesday, April 15, 2015.
On April 9, 2015, law enforcement obtained a federal search warrant for 508 W. Lee Street and 510 W. Lee Street in Floydada. Victor Alaniz and a 9mm semi-automatic pistol were located inside 508 W. Lee Street.
Law enforcement located Michael Alaniz and Jonathan Molina inside 510 W. Lee Street. A search of that residence yielded approximately 54 grams of methamphetamine, approximately 25 grams of cocaine, and approximately 30 grams of cocaine base. Additionally, digital scales, plastic bags and writing consistent with a drug ledger were located in the residence. Jonathan Molina had nearly six grams of cocaine in his pocket.
A federal criminal 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 U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not more than 20 years in federal prison and a $1 million fine.
The ATF and the Floydada County Sheriff’s Office are investigating. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Lubbock Man Sentenced to 87 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 55-year-old Lubbock man, who admitted possessing prepubescent child pornography, was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Roberto Garcia was sentenced by U.S. District Judge Sam R. Cummings to 87 months in federal prison. Garcia, who has been on bond, was ordered to surrender to the Bureau of Prisons on May 15, 2015.
According to plea documents filed in the case, Garcia used a computer at his residence to, among other things, search for images and videos of child pornography. In the course of his searches, Garcia located, downloaded and viewed numerous images and videos constituting child pornography. He saved the material onto the computer’s hard disk drive. Some of the numerous images of child pornography that Garcia saved involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Carrollton, Texas, Man Who Worked as A Long-Haul Truck Driver, Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old long haul truck driver, who most recently resided in Carrollton, Texas, was sentenced this morning on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
James Marshall Thomas was sentenced by U.S. District Judge Sidney A. Fitzwater to 20 years in federal prison to be followed by a lifetime of supervised release. Thomas pleaded guilty in November 2014 to one count of transportation of child pornography; he has been in custody since his arrest in September 2014.
According to documents filed in the case, the National Center for Missing and Exploited Children received a cybertip in June 2012 that an individual, later identified as Thomas, had emailed images of child pornography to another specific email address. While a federal search warrant was being drafted, FBI special agents discovered that Thomas had moved out of his apartment in Carrollton and that he worked as a cross-country truck driver.
Approximately two years later, FBI special agents located Thomas at a freight delivery destination. He gave them permission to search his laptop computer where agents discovered that he had responded to an advertisement on Craigslist by stating, in part, “pedo perv here.” They also discovered child pornography on the laptop and seized it, as well as a thumb drive.
A forensic analysis revealed that Thomas had searched for child pornography using various search terms indicative of raping young boys. In addition, Skype artifacts were also located that included chat logs of other like-minded individuals discussing the rape of young boys. Thomas also used Skype to receive and transport files of child pornography on multiple occasions. The analysis further revealed that Thomas had accessed several child pornography videos of prepubescent children. In all, approximately 400 images and 28 videos of child pornography, including sadistic acts involving minors, were located on his computer and thumb drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Lubbock Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 58-year-old Lubbock, Texas, man, who admitted possessing child pornography, was sentenced this morning, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Rassie Cleveland Martin was sentenced to 78 months in federal prison by U.S. District Judge Sam R. Cummings. Martin must surrender to the Bureau of Prisons by May 15, 2015.
According to plea documents filed in the case, Martin used a desktop computer at his residence to search the Internet for images and videos of child pornography. He searched with the intent of locating material depicting minors engaging in sexually explicit conduct, and in the course of searching for this material, located, downloaded, and viewed numerous images and videos constituting child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Instructor at Big Spring Correctional Center Sentenced to Six Months in Federal Prison and Remanded into CustodyRead the Press Release
LUBBOCK, Texas — A former instructor at the Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility, selling it, and then lying about it to federal investigators, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ronald Craig Maxwell, 44, of Big Spring, Texas, was sentenced to six months in federal prison this morning by U.S. District Judge Sam R. Cummings. Maxwell pleaded guilty in October 2014 to an Information charging one count of making false statements and aiding and abetting. Judge Cummings remanded Maxwell to the custody of the U.S. Marshal following this morning’s hearing.
In a related case, BSCC inmate, Lorenzo Salgado, 53, pleaded guilty to one count of misprision of a felony and was sentenced last month to serve six months in prison on the conviction. Salgado admitted he concealed the fact that Maxwell smuggled contraband in to him.
According to documents filed in the cases, on July 31, 2013, BSCC officials conducted a search of Maxwell’s office in the prison and discovered 30 packs of tobacco. Maxwell was a contract teacher from Howard College who taught at BSCC. Salgado was one of his students.
On August 2, 2013, Special Agents with the Office of the Inspector General (OIG), Investigations Division, Department of Justice, interviewed Maxwell, who denied that he had smuggled any contraband into the prison or received any money, or anything else, from inmates or family or friends of inmates. Instead, Maxwell stated that he had smuggled tobacco out of the BSCC when bags of what he believed to be marijuana or tobacco dropped from the ceiling into his office at the prison.
Further investigation revealed that several inmates had established a relationship with Maxwell, and that he was smuggling contraband to them in exchange for money. Maxwell eventually confessed that he had intentionally provided a false statement to the OIG Special Agents, and he admitted that he had indeed smuggled tobacco and alcohol into the BSCC for inmate Salgado. He further stated that he had smuggled alcohol and approximately 150-200 bags of Buglar tobacco, and he was paid at least $4,500 for the contraband.
The Department of Justice Office OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Dallas Woman Faces up to 15 Years in Federal Prison After Jury Finds She Lied in Bankruptcy FilingsRead the Press Release
DALLAS — Following a two-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted a Dallas woman on three felony offenses stemming from bankruptcy petitions she filed, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Julie Grant, a/k/a Juliana Jacobs Grant, Juliana Okwue Jacobs Grant and Juliana Okwuenu, 49, was convicted on three counts of making false statements under penalty of perjury. Each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Grant, who was placed on electronic monitoring, is scheduled to be sentenced by Judge Lindsay on September 21, 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.)
The government presented evidence that 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 recent Bankruptcy Fraud Initiative within the Northern District of Texas. As an 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, nine debtors have been charged in the district with various felony offenses, and to date, seven of these defendants have been convicted. One defendant is awaiting trial and one defendant remains a fugitive.
The Office of the Inspector General, Social Security Administration investigated. Assistant U.S. Attorney David Jarvis prosecuted.
Convicted Sex Predator Sentenced to 180 Years in Federal PrisonRead the Press Release
DALLAS — Timothy Rinehart, 36, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to serve a total of 180 years in federal prison, following his guilty plea in August 2014 to a superseding indictment charging a multitude of child pornography offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, Judge Boyle sentenced Rinehart to the maximum statutory sentence for each of his counts of conviction. Rinehart pleaded guilty to one count of production of child pornography, one count of attempted transportation of child pornography, one count of transportation of child pornography, two counts of possession of child pornography, and one count of a registered sex offender committing a felony offense involving a minor.
A convicted sex offender, Rinehart was sentenced to 51 months in federal prison in August 2006, after pleading guilty to one count of possession of child pornography in the Eastern District of Texas.
In April 2012, Rinehart used John Doe, a four-year-old male minor, to engage in sexually explicit conduct and then used his cell phone to take photos of that conduct. In late May 2012, Rinehart used his computer, the Internet and peer-to-peer file sharing to share images of minor boys engaged in sexually explicit conduct. In early May 2013, Rinehart again used peer-to-peer file sharing to share images of minors engaging in sexually explicit conduct. On October 5, 2012, Rinehart possessed a cell phone and an external hard drive that each contained images of minors involved in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Federal Jury Convicts Colleyville, Texas Man in Nearly $4 Million Wind Farm Investment ScamRead the Press Release
DALLAS — Following a seven-day trial before U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted David Lyman Spalding of Colleyville, Texas, on all counts of a superseding indictment charging various offenses related to a wind farm investment scam he ran, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, the jury convicted Spalding, 62, on two counts of wire fraud, one count of mail fraud, two counts of making false testimony under oath in a bankruptcy proceeding and one count of making a false statement in a bankruptcy case. Each of the fraud counts carries a maximum statutory sentence of 20 years in federal prison and a $250,000 fine; every other count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, Spalding could be ordered to forfeit a money judgment in the amount of the fraud as well as his residence located on Spring Garden Drive in Colleyville. He will remain on bond pending sentencing, which is set for July 29, 2015, before Judge Lynn.
The government presented evidence at trial that from at least 2003 and continuing through approximately April 2011, Spalding raised approximately $3.7 million from 97 investors in 11 states. Spalding made false representations to get investors to invest in promissory notes issued by Wind Plus, Inc. and Baseload Energy LLC and diverted the funds for his own benefit, to include purchasing real estate and extensive international travel not related to either Wind Plus or Baseload.
When Spalding filed bankruptcy in November 2009 for Wind Plus Inc. and Wind Plus Holdings Inc., he continued to solicit investors for Baseload energy, promising that funds would be used to build infrastructure for renewable energy projects. He also represented that the changes in management were for business purposes when in fact the staff had quit Wind Plus because they were not paid. As part of his fraud, Spalding also represented that investors would be repaid their investments, within varying timeframes from 60 days to one year, when in fact, Spalding did not repay investors within any of the specified timeframes.
The government presented additional evidence that in the Wind Plus bankruptcy case, Spalding falsely testified under oath about the number of individuals who were note holders as well as the amount of distributions and withdrawals he had taken.
The FBI investigated. Assistant U.S. Attorney Chris Stokes and Special Assistant U.S. Attorney Dan Gividen are prosecuting.
Abilene Man Admits Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Charles Coci, 26, of Abilene, Texas, appeared today in federal court before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Coci, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Coci used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Coci located, downloaded and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the U.S. Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Woman Who Had More Than 160 Pounds of Marijuana in Rental Car Is Sentenced to 24 Months in Federal Prison on Federal Drug Distribution ConvictionRead the Press Release
LUBBOCK, Texas — A woman who was found to have more than 160 pounds of marijuana in her rental car on Christmas Day 2013, was sentenced today by U.S. District Judge Sam R. Cummings to 24 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Christini Lynn Brashear, 45, of Rocklin, California, pleaded guilty in November 2014 to an indictment charging one count of possession with intent to distribute marijuana. Today, Judge Cummings ordered that she surrender to the Bureau of Prisons on May 8, 2015.
According to documents filed in the case, on December 25, 2013, the Abilene Police Department received multiple calls regarding a small sport utility vehicle that was on Interstate 20 traveling east at approximately five miles per hour. Officers located the vehicle and found it parked on the shoulder of the highway with Brashear asleep at the wheel. Officers called for emergency medical assistance for Brashear and advised her she was being taken to the hospital. She consented to an officer driving her car to the hospital to avoid having it towed, and she admitted using and possessing methamphetamine, which she turned over to the officers.
The officer driving Brashear’s vehicle noticed a strong odor of marijuana coming from inside the vehicle and later confirmed that the smell was coming from several duffle bags in the back that contained approximately 166 pounds of marijuana, individually bagged in one-pound clear plastic bags. The vehicle also contained multiple cell phones, two road atlases, and a note pad with hand-written directions to Houston, Texas. Rental papers for the vehicle show that it was rented to Brashear in Sacramento, California, on December 22, 2013, and it was due back to that location on December 26, 2013.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Dallas County Man Sentenced to 46 Months in Federal Prison for Role in Hydrocodone and Alprazolam Distribution Conspiracy That Operated in Abilene, Lubbock and DallasRead the Press Release
LUBBOCK, Texas — A Balch Springs, Texas, man who, along with his three co-defendants, pleaded guilty to their roles in a hydrocodone and alprazolam distribution conspiracy, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
John Conte Smith, a/k/a “Leo,” 35, of Balch Springs, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 46 months in federal prison. Smith, who has been in custody since his arrest, along with Dallas residents, Crystal Nicole Burks, 30; Keith Deon Noel, 36; and Lee Santrell Boston, 35; each pleaded guilty, in November 2014 to one count of conspiracy to distribute and possess with intent to distribute hydrocodone and alprazolam.
According to plea documents filed in the case, from approximately February 2014 to July 2014, in the Abilene, Lubbock, and Dallas Divisions of the Northern District of Texas, Smith, Burks, Noel, and Boston conspired together, and with others, to distribute and possess with intent to distribute hydrocodone, a Schedule III, and alprazolam, a Schedule IV, controlled substance.
Smith provided others in the conspiracy prescriptions on genuine prescription forms from medical facilities with the names of actual physicians at those facilities, but with fictitious patient names. Other co-conspirators then took the prescriptions to pharmacies to have them filled, eventually taking the controlled substances back to Smith who kept some for himself and sold the remainder.
On February 2, 2014, Burks’ boyfriend was arrested for passing forged prescriptions for her. After his arrest, Burks began passing the forged prescriptions, or using others to pass them, for Smith in the Dallas area. In May 2014, Smith directed Burks to pass forged prescriptions in the Lubbock and Abilene areas, and Burks had her brother-in-law, Noel, drive her on the trip. Before they left Dallas, Burks and Noel went to a location near downtown Dallas and recruited a homeless person, Boston, to go with them. The three left Dallas and drove to Lubbock on May 20, 2014.
The next day, Burks and Noel drove Boston to several pharmacies in Lubbock where he passed forged prescriptions that Burks had given him and paid for the prescriptions with money she had given him. Boston turned over the filled prescriptions and the change to Burks.
Burks, Noel and Boston drove to Abilene the next day, May 22, 2014, where, after passing forged prescriptions, they were arrested by officers with the Abilene Police Department.
A search warrant was executed at Smith’s home on July 2, 2014, and law enforcement located filled prescriptions for hydrocodone and alprazolam for persons other than Smith, as well as prepared prescription forms in other people’s names that had not yet been passed. Officers also found a 9mm semiautomatic pistol and ammunition in the nightstand by Smith’s bed.
Burks and Noel are scheduled to be sentenced on April 17, 2015. Boston is scheduled to be sentenced on May 15, 2015.
The FBI and the Abilene Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Defendant Sentenced to Serve 48 Months in Federal Prison and Pay Millions in Restitution for Violating the CAN-SPAM ActRead the Press Release
DALLAS —Milos Vujanic, 34, who was convicted for his role in what U.S. District Judge Sidney A. Fitzwater previously called “a massive, complicated, multi-year scheme to defraud a large number of victims,” was sentenced this week to 48 months in federal prison and ordered to pay approximately $17.3 million in restitution. Acting U.S. Attorney John Parker, of the Northern District of Texas, made the announcement today.
Vujanic pleaded guilty in December 2014 to a superseding information charging one count of fraud and related activity in connection with electronic mail (CAN-SPAM Act).
A citizen of Serbia, Vujanic was arrested in May 2012, in Paris, France. After a lengthy extradition process, Vujanic first appeared in the U.S. District Court in the Northern District of Texas in April 2014.
Nineteen defendants were originally charged in this massive telecommunications fraud conspiracy. Two of the defendants, Nathan Todd Shafer, 32, of Irving, Texas, and Matthew Norman Simpson, 26, of Red Oak, Texas, were convicted in December 2011 following a 10-week trial before Judge Fitzwater.
Simpson was sentenced to 40 years in federal prison and ordered to pay restitution of approximately $17.6 million and a forfeiture money judgment of the same amount. In addition, the Court also forfeited specific assets such as precious metal certificates worth approximately $3 million and additional cash and computer equipment worth an additional $2 million. Simpson was convicted on one count of conspiracy to commit wire fraud and mail fraud, one count of fraud and related activity in connection with electronic mail, one count of obstruction through destruction of evidence and one count of false registration of a domain name. Additionally, shortly after Simpson’s conviction at trial, the Court entered an order finding that Simpson committed perjury during his testimony.
Shafer, who was convicted on one count of conspiracy to commit wire fraud and mail fraud, was sentenced to nine years in federal prison and ordered to pay approximately $3.3 million in restitution as well as a forfeiture money judgment of the same amount.
Michael Blaine Faulkner, of Southlake, Texas, was sentenced to 30 years in federal prison and ordered to pay approximately $18.2 million in restitution, a forfeiture money judgment of the same amount, and forfeit a host of computer equipment. Faulkner pleaded guilty in October 2011 to one count of conspiracy to commit wire and mail fraud and one count of obstruction through hiding assets. His wife, Chasity Lynn Faulkner, who also pleaded guilty in October 2011 to one count of conspiracy to commit electronic mail, postal mail and wire fraud, and was sentenced to 60 months in federal prison.
According to documents filed in the case Michael and Chasity Faulkner fled to Mexico in 2009 after they learned of the FBI’s investigation into their activities. They lived in Mexico, under assumed aliases, until January 2010 when they were arrested and returned to the U.S. to face charges.
One defendant remains a fugitive and is believed to be living outside of the U.S. Two defendants were acquitted at trial. Of the remaining defendants, all have pleaded guilty and been sentenced.
In March and April 2009, the FBI executed numerous search and seizure warrants at locations including the Faulkner’s residence in Southlake, Faulkner’s business known as Crydon located at 1950 Stemmons Freeway in Dallas, Matthew Simpson’s residence, a business operated by Simpson known as Core IP located at 2323 Bryant Street in Dallas, and at other related businesses.
During trial, the government presented evidence that Shafer, Simpson and their coconspirators conspired to defraud various telecommunications companies including AT&T; Verizon; XO Communications; Excel Communications; Waymark Communications; Bandwidth.com; CommPartners; the lessors of properties at 2020 Live Oak, 2323 Bryan Street and 1950 Stemmons Freeway in Dallas; leasing companies and creditors, including Wells Fargo and AT&T Capital Services; credit reporting agencies; and various other service providers, such as power companies, insurance companies, air-conditioning companies, and web site developers and others for goods and services amounting to more than $20 million.
The conspirators also made false representations to obtain goods, such as computers and telecommunications equipment and infrastructure, to include racks to hold computer equipment, generators to provide power for the equipment, and office space to install the equipment, as well as services related to the operation and use of computers and telecommunications. The conspirators created, purchased and used shell companies to hide the identity of the owners or operators of the companies, or the relationships between the companies. The conspirators paid persons including homeless persons for the use of their identities to “act” as the officers, directors or managers of the shell companies. They also used P.O. Boxes, commercial remailer services, shell offices, apartments or other physical locations to hide owners’ or operators’ identities or the relationships between the companies. They assumed other identities to hide true ownership of the shell companies and made materially false representations to their victims, by mail, fax, telephone, email or other communications, to obtain goods and services from them. In addition, the coconspirators ran a data center that provided a safe haven for those engaged in the sending of SPAM, hiding the senders’ information from law enforcement and other regulators. Vujanic worked for Faulkner and he assisted in the SPAM fraud by 1) ensuring the networking equipment and computers were operational, 2) setting up the telephone systems in the office; 3) providing false information to creditors; 4) providing false information to regulators such as ARIN (American Registry of Internet Numbers); and 5) providing false information to customers and suppliers.
The case was investigated by the FBI, with assistance from the Texas Workforce Commission, the Texas Secretary of State, the Dallas Police Department, the Southlake Police Department, Dallas Sheriff’s Office, Ellis County Sheriff’s Office, the Duncanville Police Department, the Longview Police Department, the New Orleans Police Department, the American Registry for Internet Numbers (ARIN), the Federal Trade Commission, the Federal Communication Commission and various state public utility commissions.
Department of Justice Announces Investigation of the Dallas County Truancy Court and Juvenile District CourtsRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened an investigation of Dallas County, Texas’s Truancy Court and Juvenile District Courts. The investigation will focus on whether the courts provide constitutionally required due process to all children charged with the criminal offense of failure to attend school, including whether those protections apply to children whom the county charges with contempt. The investigation will also focus on whether the courts provide meaningful access to the judicial process for children with disabilities.
“Failure to attend school” is a criminal charge under Texas law that is the equivalent of the juvenile status offense of “truancy.” Based on the department’s preliminary review, it believes that the county prosecuted approximately 20,000 failure to attend school cases in 2014.
“The Constitution’s guarantee of due process applies to every individual, regardless of age or disability,” said Attorney General Eric Holder. “This investigation continues the Justice Department’s focus on identifying and eliminating entryways to the school-to-prison pipeline, and illustrates the potential of federal civil rights law to protect the rights of vulnerable children facing life-altering circumstances. As the investigation moves forward, the Department of Justice will work to ensure that actions of Dallas County’s courts are appropriate; that our constitutional protections are respected; and that the children of Dallas County can receive the meaningful access to justice that all Americans deserve.”
“Ensuring that children’s rights under the Constitution and federal law are protected during the court process is a key step to dismantling the school-to-prison pipeline,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope to work cooperatively with the county in determining whether it has taken steps to ensure that its juvenile and criminal courts fully respect the rights of the children who come before them.”
“Ensuring that the children of Dallas County appearing before these courts are afforded the full protections afforded them under our constitution is essential to increasing the public’s confidence in the juvenile justice system,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data, as well as interviews of individuals knowledgeable about the courts’ processes.
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title II of the Americans with Disabilities Act. Section 14141 prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice. Title II of the Americans with Disabilities Act prohibits discrimination against a qualified individual with a disability in many contexts, including the administration of justice. The department has conducted similar investigations in other jurisdictions, and in 2012 obtained important reforms following its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 1-855-258-1433.
Lubbock Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 44 year-old Lubbock, Texas, resident, Eduardo Cantillo, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Arlington Woman in Custody and Charged with Bank RobberyRead the Press Release
FORT WORTH, Texas — An Arlington, Texas, woman, whom the FBI believes is the “Black Hoodie Bandit,” and responsible for a number of bank robberies in several Dallas/Fort Worth (DFW) metroplex cities since November 2014, has been arrested and charged in a federal criminal complaint with bank robbery. John Parker, Acting U.S. Attorney for the Northern District of Texas, and Thomas M. Class, Sr., Special Agent in Charge of FBI Dallas, made today’s announcement.
Dana Campbell, 37, was arrested on Monday, March 23, 2015, following a traffic stop by an officer with the Arlington Police Department who had determined she was wanted for several misdemeanor traffic warrants. A black jacket with a plaid lined hood was lying on the front passenger seat of her vehicle. A handwritten note that read, “This is a robbery. I don’t want to hurt anyone” was in one of the jacket’s pockets. Pursuant to a search warrant, detectives found dark sunglasses, black gloves, a black beanie hat with brim and a black leather purse with metal studs, and a note that read, “This is a robbery.” Officers also located a ledger in her vehicle with the dates and addresses of various banks in the DFW area that had been robbed within the past four months. All of the dates in the ledger correspond to actual bank robberies that occurred in the DFW area.
The “Black Hoodie Bandit” had been a suspect in 10 separate robberies, nine of which were at First Convenience Banks (FCB) and one at a Woodforest National Bank. At every robbery, she was described as a black female, short in stature and weighing approximately 150 lbs. In each robbery, she wore dark sunglasses, black gloves, back legging and white tennis shoes. She wore at least three different hooded jackets, two of which were black and the other gray. She always carried a purse and in one robbery, that purse was described as black with metal decorative studs on the outside.
FCB had placed posters with photos from the various robberies at the entrances of all their branches, and all FCB employees were on alert for a potential robbery.
On March 10, 2015, at approximately 1:30 p.m., a teller at the FCB inside the Kroger located at 2475 Ascension Blvd. in Arlington, noted the woman, later identified as Campbell, approach another teller station. The teller noted the woman was wearing a beanie cap, dark sunglasses, a black hooded jacket and black gloves. This teller’s customer looked at the robber, and then over to one of the large posters, and said, “Are you the one who has been robbing all the banks?” Before leaving the bank rapidly, the customer warned the tellers that they were about to be robbed. The robber then told one of the tellers to “give me all the money” and “hurry up.” The robber was given money from a cash drawer; she took it and fled the bank.
On March 23, 2015, at approximately 11:00 a.m., a woman matching the description of the “Black Hoodie Bandit” entered the Kroger store at 2210 S. Fielder Road in Arlington, where an FCB branch was located. Two FCB employees standing near the entrance greeting customers saw the woman and recognized her as the robber. The woman hurriedly walked past them, down an aisle and out of the store. Observers saw her walk to a gray sedan and drive away. Officers with the Arlington Police Department were able to stop the car, and Campbell was identified as the driver.
Campbell made her initial appearance in federal court in Fort Worth this morning before U.S. Magistrate Jeffrey L. Cureton. She will remain in federal custody pending a preliminary and detention hearing set for April 1, 2015.
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, Campbell 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 Arlington, Grand Prairie, Irving, Mansfield, McKinney and Mesquite Police Departments are investigating. Assistant U.S. Attorney John Bradford is in charge of the prosecution.
Twenty-Three Individuals Charged in A Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — An indictment returned by a federal grand jury in Dallas last month, and unsealed late yesterday, charges 23 individuals with offenses related to their participation in a prescription drug distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The defendants charged are:
Sina Athari, 24, of Houston, Texas
Shane Barron, 27, of Austin, Texas
Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio” and “Karrie,” 36, of Lafayette, Louisiana
Angela Moore Booth, 48, of Lafayette, Louisiana
Earl Cain, 53, of Houston, Texas
Glenda Cane, 46, of Houston, Texas
Lashavia Syneice Denson, a/k/a “Shae Denson” and “Shay Denson,” 26, of Houston, Texas
Jason Edgecombe, 38, of Houston, Texas
Darlene Viola Fortenberry, 69, of Houston, Texas
Bertha Alicia Garcia, 49, of Houston, Texas
Tony Sue Griggs, 34, of Dallas, Texas
William Hopkins, a/k/a “New York,” 53, of Dallas, Texas
Fahim Ahmed Khan, 57, of Houston, Texas
Candis O’Shaea Lewis, 29, of Dallas, Texas
Patrick Moore, a/k/a/ “Crowley,” 23, of Lafayette, Louisiana
Ivery Myers, 63, of Houston, Texas
Taneisha Nicole Nickerson, a/k/a “Nookie,” 28, of Houston, Texas
Cornelius Delshun Robinson, a/k/a “Tadow,” 36, of Houston, Texas
Shalisa Shaunta Robinson, a/k/a “Shalisa Speed,” 29, of Houston, Texas
Markii Josett Shular, 30, of Dallas, Texas
Tasmin Jamal Stewart, a/k/a “Taz,” 30, of Baton Rouge, Louisiana
Muhammad Taylor, 32 of Houston, Texas
Cy Viator, 32, of Houston, Texas
Twenty-one of the 23 defendants have been taken into custody in Texas and Louisiana. Each indicted defendant is charged with one count of conspiracy to distribute a controlled substance. Nineteen of the defendants are also charged with unlawful use of a communication facility.
The indictment alleges that from at least May 2013 through July 2014, these individuals participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid a fee to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies. The organizers, sometimes referred to as “script ring leaders,” paid the recruits, the costs of the clinic visits, and the costs to fill the prescriptions. The script ring leaders then obtained the pharmaceuticals and distributed them for profit in Dallas, Austin, Houston and Louisiana.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The maximum statutory penalty for the offense charged in Count 1 is 20 years in federal prison and a $1 million fine. The maximum statutory penalty for each of the offenses charged in Counts 2-27 is four years in federal prison and a $250,000 fine.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is prosecuting the case.
Female Bank Robber Faces Federal ChargeRead the Press Release
LUBBOCK, Texas — Starlene Delacruz, 31, of Lubbock, Texas, has been charged in a federal complaint with robbing the Prosperity Bank on University Avenue in Lubbock on Friday, March 13, 2015, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Delacruz, who is in custody, made her initial appearance in federal court this afternoon in Lubbock, before U.S. Magistrate Judge Nancy M. Koenig.
According to the complaint filed, on March 13, 2015, at approximately 10:30 a.m., the Prosperity Bank located at 8232 University Avenue in Lubbock was robbed by a female wearing a white knit shirt, blue jeans and sunglasses. The robber, later identified as Delacruz, approached one of the tellers and placed a straw woven purse on top of the counter. Delacruz then stated, “I don’t want to freak anybody out, but my dad is waiting and if we don’t fill this up with all your money, then there are bombs and this will all blow up.” In response, the teller placed funds from her till into Delacruz’s bag. Delacruz then left the bank.
Following the robbery, an image of the bank robber, taken from video surveillance at the bank, was released to the media. An employee of Damron Motorcycle Company, located on South Loop 289 in Lubbock saw the released image at approximately 4:45 p.m. that afternoon. At approximately 5:05 p.m., a woman entered the dealership, and an employee thought she matched the image of the individual who had robbed the bank that morning. The employee contacted the Lubbock Police Department who dispatched officers to the dealership, where Delacruz was arrested.
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, Delacruz faces a maximum statutory penalty of not more than 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 Lubbock Police Department are investigating. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Cedar Hill Man Sentenced to 72 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 32-year-old Cedar Hill, Texas man, Michael Stratton, who pleaded guilty in June 2014 to an Information charging one count of receipt of child pornography, was sentenced this morning by U.S. District Judge Ed Kinkeade to 72 months in federal prison. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Stratton was ordered to surrender to the Bureau of Prisons on April 22, 2015.
According to documents filed in the case, the investigation began in October 2013 while a detective with the Sherman, Texas, Police Department was investigating individuals using a specific file-sharing program and the internet to receive and distribute child pornography. The investigation linked Stratton to a computer that had made available to share images and videos of child pornography. Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stratton’s home and seized a laptop computer, camera, hard drives and a thumb drive.
Stratton admitted that he had been using the file-sharing network to view and download images and videos of child pornography since 2009. He further admitted that his collection was mostly of prepubescent children.
An analysis revealed more than 180 videos and 20 images of child pornography on Stratton’s computer, hard drives and thumb drive. Included in the collection were nine videos of sado-masochistic conduct and at least one depicting infants or 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.”
ICE HSI and the Sherman Police Department investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
Dallas Woman Admits Role in March 2014 Overdose Death of Dallas TeenagerRead the Press Release
DALLAS — A 27-year-old Dallas woman appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to a felony drug offense stemming from her role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Lashley, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Cierra Allyn Rounds pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance. She faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Rounds remains in custody pending sentencing, which is set for September 8, 2015, before U.S. District Judge Sam A. Lindsay.
A federal grand jury in Dallas returned a three count indictment in September 2014 charging Rounds and her two co-defendants, Glen William Brunton, 28, and Kathryn Grace Dirks, 25, each with one count of conspiracy to possess with intent to distribute a controlled substance (heroin); one count of possession of a controlled substance with intent to distribute, the use of said substance resulting in the death and serious bodily injury of Rian Lashley; and one count of distribution of a controlled substance (heroin), the use of said substance resulting in the death and serious bodily injury of Rian Lashley. Brunton is set for trial before Judge Lindsay on April 6, 2015; Dirks remains a fugitive.
According to plea documents filed in the case, during the early morning hours of March 25, 2014, Rounds and Brunton traveled from a residence in Dallas to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Rounds and Brunton joined Dirks, a local heroin distributor known as “J.C.,” and Lashley at a booth, and the group at breakfast together. While sitting in the booth, Rounds and the others became aware that Lashley possessed a large sum of money, approximately $3,000, a cell phone and an iPad.
Rounds admitted that later that morning, in the IHOP parking lot, J.C. delivered five baggies of “China White” heroin to Brunton and that Brunton subsequently distributed the heroin to Lashley in exchange for $100 cash. Rounds and the others learned through conversations with Lashley that she had never used heroin prior to that day. After acquiring the heroin, Rounds, Dirks and Lashley left the IHOP in Lashley’s vehicle, and they traveled to a residence in Dallas where Rounds was living. J.C. and Brunton departed the IHOP in a separate vehicle.
While traveling to the Dallas residence, Rounds used Lashley's cell phone to send a series of text messages to J.C., including their proximity to the residence and a text message advising J.C. that “…I figured ud want me on this money.” Rounds admitted that when she sent this message to J.C. she was notifying him that she understood that she was to attempt to steal the money Lashley possessed and turn it over to J.C. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to J.C. asking if she should take Lashley and Dirks inside. J.C. responded with a text message that read, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and to keep her there.
Once inside the residence, Rounds and Dirks, aided and abetted by each other, and at Lashley’s request, took possession of the heroin that was originally supplied by J.C. and used a syringe to inject heroin into Lashley. Shortly before that heroin injection was administered, Rounds sent a text message to J.C. stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow Rounds to steal the money that Lashley possessed.
Rounds admitted that later that afternoon, Lashley began showing signs of distress, and she and Dirks placed Lashley in a bathtub of ice water in an attempt to reverse the effects of the heroin. After Lashley was removed from the tub, Lashley was placed on a couch and appeared to go to sleep.
Lashley died later that evening as a direct result of the heroin that was administered to her. An autopsy performed at the Southwestern Institute of Forensic Sciences on March 26, 2014, concluded that Lashley died as a result of the toxic effects of heroin.
The Dallas Police Department and the FBI investigated this case. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.