Northern District of Texas
Press releases recorded for this federal judicial district.
Frisco Man Sentenced to 10 Years in Federal Prison for the Attempted Enticement of A MinorRead the Press Release
DALLAS, Texas — Matthew Jarmon, 24, of Frisco, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in December 2014 to one count of attempted enticement of a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to the factual resume filed in the case, in June 2014, Jarmon used his computer to engage in a number of sexually explicit “chat” conversations with a minor under the age of 17. Jarmon made plans to meet the minor and to engage in sexual activity with the minor. Upon arriving at the pre-arranged location on June 18, 2014, Jarmon was arrested by law enforcement.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Garland Police Department and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
Eight Arrested for Role in Timeshare Telemarketing Fraud Scheme That Targeted Individuals Age 55 and OlderRead the Press Release
www.postalinspectorsurvey.com/haffar
DALLAS — Eight residents of Florida were arrested or self-surrendered over the past few days on charges outlined in a federal indictment returned by a grand jury in Dallas last month and unsealed last week. The allegations in the indictment stem from the operation of a telemarketing fraud scheme that targeted persons over the age of 55. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
The eight-count indictment charges each of the below-listed defendants with one count of conspiracy to commit mail fraud, wire fraud, bank fraud and telemarketing fraud and seven substantive counts of mail fraud, telemarketing fraud, and aiding and abetting. Each defendant made his initial appearance last week before various U.S. Magistrate Judges in the Southern and Middle Districts of Florida. The eight defendants who appeared were released on various bond conditions, and most were ordered to appear for arraignment in the Northern District of Texas on March 30, 2015, at 2:00 p.m.
Max Joseph Chilson, 36, of Lake Mary, Florida.
Gunner Dell Jenkins, 36, of Orlando, Florida.
Antonio Enrique Martinez, 43, of Kissimmee, Florida.
Richard Mendez, 44, of Kissimmee, Florida.
Victor Sanchez, 45, of Hollywood, Florida.
Angelina Laboy Smith, 37, of Orlando, Florida.
Harold Eugene Smith, a/k/a H.E. Smith, 72, of Kissimmee, Florida.
Jonathon Edward Warren, 32, of Winter Garden, Florida.
The indictment alleges that from at least March 2009 to March 2011, the above defendants conspired together and with others to commit mail, wire, bank and telemarketing fraud in connection with a telemarketing scheme that targeted and victimized persons over the age of 55 in the U.S. and in Canada. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. They misrepresented the existence of a buyer for their timeshare and solicited money from them to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with their credit cards, personal checks, bank checks, or through electronic check conversion.
As part of the conspiracy, the defendants also instituted a bogus telephone verification process to make follow-up phone calls to the targeted timeshare owners to give them the false impression they were dealing with entities that would protect their money and property, and to trick them into making recorded statements that no sale had been promised by the telemarketers.
Further, the defendants falsely represented their companies were global leaders in connecting timeshares to buyers, sellers, and renters; their companies were full-service timeshare resale companies and vacation rental agencies with more than 30 years of experience in timeshares; bona fide buyers were interested in purchasing the owner’s properties and offers exceeded the original amount paid for the properties; buyers had already paid money into an escrow account, been approved by a lender, and were ready to close; the timeshare owner would receive all the funds from the purchase within 45 to 90 days; and that the timeshare owners must pay a one-time fee to cover the title search and other closing costs before the sale could close.
After obtaining money from the timeshare owners, the defendants, in order to lull the timeshare owners and cause them to not question, investigate or report the status of the transaction, made additional false and fraudulent statements to the timeshare owners, including advising them they were protected under established telemarketing laws and could cancel their contract and request a refund by mailing written notification within seven days of receiving the contract and advising them they could phone or send correspondence to Resorts Condos Management in Irving, Texas, — which, unbeknownst to the owners was in fact, a boiler room.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of 30 years in federal prison, a mandatory 10-year penalty and a $1 million fine. Each of the seven remaining substantive counts carries a maximum statutory penalty of 20 years in federal prison, a mandatory 10-year penalty and up to a $250,000 fine. Restitution could also be ordered.
Information for Timeshare Owners Affected by the Scheme:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below company names, please go to www.postalinspectorsurvey.com/haffar and complete the questionnaire:
Resorts Condos Management;
Timeshare Goldline;
JAMS Management;
Vision Ventures Inc.;
Timeshare Services Today;
Vacation Equity Marketing, Inc.;
Maximum Properties;
Universal Processing Services of Wisconsin, LLC, also known as Newtek Merchant Solutions;
HES Merchant Services, Inc.;
Interval Equity Marketing, Inc.;
Vacations And Resorts; and
Visionary Investments, LLC.The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these businesses. To access the questionnaire, please go to www.postalinspectorsurvey.com/haffar and input the user name timeshare and the password uspis.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies are available to you through civil litigation or other federal or state agencies.
2. On or after March 30, 2015, you may access the websites for the U.S. Attorney’s Office for the Northern District of Texas http://www.justice.gov/usao/txn/to obtain more information on the case or the court proceedings.
3. If you have any questions related to this matter that are not addressed at the above website, you may contact the government on or after March 30, 2015, at the e-mail address [email protected].
The U.S. Postal Inspection Service is investigating this fraud. The Orlando Police Department provided substantial assistance in the investigation and apprehension of the defendants. Assistant U.S. Attorney C.S. Heath is prosecuting.
Garland Man Sentenced to 96 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A Garland, Texas, man, Jonathan Ramirez, 26, was sentenced this week by U.S. District Judge Ed Kinkeade to 96 months in federal prison, following his guilty plea in November 2014 to one count of receipt of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, in June 2014, a Task Force Officer with the FBI, working online in an undercover capacity investigating the distribution of child pornography and the sexual exploitation of children, learned that a specific IP address, later linked to Ramirez, had made 78 files of child pornography available for sharing. Based in part on that discovery, the following month, law enforcement with the FBI Dallas Child Exploitation Task Force and the Garland Police Department executed a federal search warrant at Ramirez’s home. Agents seized an external hard drive and other media belonging to Ramirez. A review of the evidence revealed that the hard drive contained several child pornography videos.
Ramirez admitting using ARES P2P file sharing network to view and download images and videos of child pornography that he would then move to an external hard drive. He admitted that he had more than 175 videos and 50 images of child pornography on his computer and external hard drive.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Dallas Child Exploitation Task Force and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Former SSA Employee Sentenced to 21 Months in Federal Prison for Role in Conspiracy to Defraud the SSARead the Press Release
DALLAS — A former employee of the Social Security Administration (SSA) was sentenced this morning for his role in a conspiracy to defraud the SSA, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Carwin Shaw, 33, of Arlington, Texas, was sentenced to 21 months in federal prison and ordered to pay $78,165 in restitution. He pleaded guilty in December 2014 to one count of conspiracy to commit theft of government funds. He must surrender to the Bureau of Prisons on April 28, 2015.
Shaw, along with co-defendants Amanda Johnson, 35, April Harvey, 36, and Lanusha Lemmons, 25, all of Arlington, were each indicted in May 2014 on one count of conspiracy to defraud the U.S. and one count of theft of government funds. Lemmons pleaded guilty to her role and was sentenced earlier this month to a two-year term of probation. A trial date of April 27, 2015, is set for defendants Johnson and Harvey.
According to documents filed in the case, Shaw, who worked as a Service Representative in the SSA’s Mid-Cities Field Office, located in Grand Prairie, Texas, had access to the SSA’s electronic databases. He admitted that he made agreements with co-conspirators to illegally obtain SSA funds by manipulating SSA’s electronic databases to achieve multiple objectives.
In some instances, for example, he manipulated the verified income attributed to Supplemental Security Income beneficiaries that resulted in the issuance of larger payments than authorized, the issuance of payments when none were due, and the removal of legitimate overpayments posted to beneficiary’s record. Shaw further admitted using the SSA’s electronic systems that interface with the U.S. Treasury Department to issue duplicate checks to beneficiaries when only one check was due. Shaw would cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then access the system and waive the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor or otherwise incompetent Social Security beneficiary.
The loss to the SSA as a result of all of Shaw’s relevant conduct is approximately $78,165.
The case was investigated by the SSA’s Office of the Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
Dallas Woman Sentenced to 27 Months in Federal Prison for Committing Financial Aid FraudRead the Press Release
DALLAS — A Dallas woman who was convicted following a bench trial last year on all six counts of an indictment charging financial aid fraud, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Sussette Sheree Timmons, 42, was sentenced by U.S. District Judge Barbara M. G. Lynn to 27 months in federal prison and ordered to pay $20,000 in restitution to the U.S. Department of Education.
“It’s bad enough to lie about your identity or income to obtain financial aid”, said Acting U.S. Attorney Parker, “but Ms. Timmons’ fraud is particularly egregious because she never even intended to attend school. Abuses like this of the federal student aid system must not be tolerated for the sake of the many individuals who truly need aid for education, and for the sake of taxpayers. I commend the investigative efforts of the Department of Education’s Office of Inspector General in identifying this fraud.”
The government presented evidence at trial that Timmons applied for admission to, and received financial aid from several universities/colleges, e.g., New Mexico State University, Western New Mexico University, Ashford University, Northern New Mexico College, Coconino Community College, and Pima County Community College, to fund her education at the institutions.
As part of her scheme to defraud these institutions and the U.S. Department of Education, Timmons never intended to use the disbursed funds for education, but instead intended to embezzle, misapply, steal and use the funds for her own personal use. Timmons also failed or refused to refund the financial aid funds when required to do so.
In total, the amount of funds that Timmons embezzled, misapplied, stole or obtained by fraud, false statement or forgery, or failed to refund, was $64,115.
The U.S. Department of Education Office of Inspector General investigated. Assistant U.S. Attorney P.J. Meitl prosecuted.
Tax Return Preparer Sentenced to Three Years in Federal Prison for Preparing False Tax ReturnsRead the Press Release
DALLAS — A defendant who admitted to a federal felony offense stemming from his preparation of false tax returns was sentenced yesterday, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Kenny Iroegbu was sentenced by U.S. District Judge Jorge A. Solis to 36 months in federal prison and ordered to pay $323,046 in restitution to the IRS. Iroegbu pleaded guilty in December 2014 to one count of aiding and assisting in the preparation of a false income tax return.
According to the factual resume filed, Iroegbu operated his own tax return preparation business, doing business as Homequest Vision Tax Service and Homequest Tax Service. Prior to starting his own tax preparation business in 2005, Iroegbu worked as an intern at Lynks Tax Service in Greenville, Texas.
The factual resume also states that Iroegbu prepared tax year 2005 and tax year 2006 returns out of an office located at 3030 LBJ Freeway, Suite 700, in Dallas; he prepared 2007 returns at an office located at 601 West Parker Road, Suite 103, in Plano, Texas.
The method employed by Iroegbu, according to the factual resume, included filing a client’s tax return using a false IRS Schedule F, Profit or Loss from Farming or a false IRS Schedule C, Profit or Loss from Business. Iroegbu would include the false Schedule on the client’s return and typically claim a loss if the client had Form W-2 wages or claim a net profit if the client did not have any Form W-2 wages. This gave the appearance to the IRS that the taxpayer was generating income.
In addition, according to the factual resume, Iroegbu would then put a false refundable fuel credit from taxes paid on un-dyed diesel fuel used on a farm, or for taxes paid on gasoline used for taxes paid on un-dyed diesel fuel used on a farm, or for taxes paid on gasoline used for other nontaxable use. These fuel credits were refundable regardless of whether the taxpayer had a tax liability or was due a refund before considering the fuel credit. Iroegbu claimed fuel credits on IRS Form 4136, Credit for Federal Tax Paid on Fuels.
The factual resume notes that Iroegbu prepared and electronically filed on behalf of his clients 66 tax year 2006 returns and 59 tax year 2007 returns claiming $1,294,749 in fuel credits of which $361,294 in false refunds was used by the IRS to offset any tax owed on the return. The remaining amount was paid to the taxpayers. Twenty-four fraudulent returns examined claimed refunds for Iroegbu’s clients totaling $237,996. The actual amount paid out by the government on these 24 claims totaled $126,582.49.
IRS Criminal Investigation investigated. Assistant U.S. Attorney Joseph M. Revesz prosecuted.
Man Sentenced to Serve A Total of Five Years in Federal Prison for Theft of Public Funds and Aggravated ID TheftRead the Press Release
DALLAS — A man who admitted to federal felony offenses stemming from his conspiracy to obtain tax refunds by filing fraudulent tax returns using stolen names and Social Security information was sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Roberto Boris Fernandez was sentenced by U.S. District Judge Ed Kinkeade to a total of 60 months in federal prison and ordered to pay $466,405 in restitution to the IRS. Fernandez pleaded guilty in November 2014 to one count of conspiracy to commit theft of public funds and one count of aggravated identity theft. Specifically, Judge Kinkeade sentenced him to 36 months on the conspiracy conviction and 24 months on the identity theft conviction, to run consecutively.
According to the factual resume filed, during January 2012, Fernandez conspired with others to engage in a scheme to obtain tax refunds by electronically filing fraudulent income tax returns using stolen names and social security information. The returns falsely represented that the taxpayers were entitled to a refund because of a falsely created Earned Income Credit. The returns were filed through Turbo Tax, an online tax preparation service, and directed the IRS to deposit the refunds onto Turbo Tax debit cards that were mailed to coconspirators’ addresses. Fernandez and the coconspirators used the debit cards at automatic teller machines (ATMs) to withdraw cash.
In fact, according to the factual resume filed, for several hours during the evening and early morning hours of January 30-31, 2012, Fernandez and another co-conspirator traveled in a limousine Fernandez had rented to conduct multiple withdrawals from the Turbo Tax debit cards at various ATMs. However, the Little Elm Police Department stopped the limousine for a traffic violation. At the time, Fernandez was the sole passenger. While searching the limousine, officers seized Fernandez’s backpack, a cell phone, an air card, several Turbo Tax envelopes and debit cards, $8,295 in cash, and ATM receipts. Inside the backpack, officers found handwritten personal identifying information (PII) for approximately 200 individuals, together with notations as to refund amounts, personal identification numbers (PINs), and dates on which refunds were expected. Eight additional unopened Turbo Tax envelopes containing Turbo Tax debit cards issued in third party names were also found in the backpack.
IRS Criminal Investigation, according to the factual resume, identified 84 fraudulent income tax returns for the 2011 tax year with refund claims totaling $435,219 that were associated with the debit cards and identifying information located in the backpack.
IRS Criminal Investigation investigated. Assistant U.S. Attorney Christopher Stokes prosecuted the case.
Federal Grand Jury Indicts Three on Felony Offenses Related to December 2014 Armored Car Heist in AmarilloRead the Press Release
AMARILLO, Texas — A federal grand jury in Amarillo, Texas, returned an eight-count indictment this afternoon charging three men with various felony offenses stemming from an alleged heist of money from an armored car last year in Amarillo, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Trent Michael Cook, 24, Britt Michael Gresham, 24, and Brian Keith Hodge, 43, are each charged with one count of conspiracy to interfere with commerce by robbery, one count of attempting to interfere with commerce by robbery, and one count of possessing firearms in furtherance of a violent crime. Cook and Gresham are each charged with one count of conspiracy to commit bank theft, and Cook is charged with three counts and Gresham with one count, of bank theft. Hodge is charged with one count of being an accessory after the fact. Hodge is Cook’s father.
All three defendants are in custody and each is expected to make his initial appearance in federal courts sometime next week.
According to the indictment, as part of the conspiracy, Cook purchased firearms to use in a plan to rob the vault of Rochester Armored in Amarillo. The plan involved Cook using his status as an employee of Rochester Armored to gain access to the company vault containing millions of dollars in U.S. currency so that the three defendants could commit the armed robbery of Rochester Armored, using the firearms to threaten force, violence and fear of injury against Rochester Armored employees. Cook and Gresham purchased a van to load and transport bags of U.S. currency taken from Rochester Armored. Hodge attempted to obtain a location in Colorado for the defendants to hide after the robbery. The indictment further alleges that on December 22, 2014, Cook and Gresham took money from an armored car belonging to Rochester Armored.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive count of attempting to interfere with commerce by robbery each carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory five-year penalty and a $250,000 fine. The conspiracy to commit bank theft count and the accessory after the fact count each carry a maximum statutory penalty of five years in federal prison and a $250,000 fine. Each of the bank theft counts carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Amarillo Police Department, the Colorado Springs Police Department, the Potter County District Attorney’s Office and the FBI were the investigating agencies. Assistant U.S. Attorney Tim Hammer is in charge of the prosecution.
North Richland Hills Man Sentenced to 36 Months in Federal Prison for Preparing and Submitting False Income Tax Returns That Resulted in over A $1 Million Loss to IRSRead the Press Release
DALLAS — A defendant who admitted causing false income tax returns to be filed with the Internal Revenue Service (IRS) was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Michael Lloyd Moody was sentenced by U.S. District Judge Barbara M. G. Lynn to 36 months in federal prison and ordered to pay restitution to the IRS.
Moody was indicted in March 2013 on 16 counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. He pleaded guilty in December 2013 to two of those counts. He was on pretrial release until October 2013 when the Court found he had violated its terms and conditions and remanded him into custody.
According to the factual resume filed in the case, from 2009 through 2010, Moody prepared U.S. Individual Income Tax Returns, Form 1040, along with supporting schedules, at his residence in North Richland Hills, Texas. After meeting his customers, Moody would deliver the completed returns to Universal Tax, located at 415 East Airport Freeway in Irving, Texas, to be electronically filed with the IRS. Universal Tax was assigned an Electronic Filing Identification Number (EFIN) by the IRS authorizing the electronic filing of tax returns.
Moody admits, according to the factual resume, that he inserted false or inflated deductions and credits to produce fraudulent refunds for the IRS to pay.
As an example noted in the factual resume, in one instance, on approximately March 1, 2010, Moody prepared and caused to be filed an individual tax return for a particular individual. In preparing the Form 1040, Moody knowingly, and with the intent to deceive the IRS, included $37,044 as a Schedule C business loss and $2,349 on Form 8863 as an education credit due the individual. In reality, however, this individual did not own a Schedule C business, nor did he incur education expenses for the education credit. Due to the false deduction and credit inserted by Moody, the refund was inflated and resulted in a loss to the government of $7,906.
The investigation was conducted by IRS Criminal Investigation.
Assistant U.S. Attorney Chris Stokes prosecuted.
ID Theft Conspiracy Leader Sentenced to 16 Years in Federal Prison and Ordered to Pay $88,131 in RestitutionRead the Press Release
DALLAS — A Cedar Hill, Texas man, who was convicted at trial on various federal felony offenses stemming from an identity (ID) theft conspiracy he ran in the metroplex from October 2009 to July 2013, was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Anthony Minor, 28, was sentenced by U.S. District Judge Sam A. Lindsay to 16 years in federal prison and ordered to pay $88,131 in restitution. A federal jury convicted Minor in September 2014 on one count of conspiracy to commit bank fraud, five counts of bank fraud, one count of using or trafficking in an unauthorized access device, and two counts of aggravated identification theft.
Minor is the last defendant convicted in the conspiracy to be sentenced. Other defendants pleaded guilty to the conspiracy charge. Minor’s girlfriend, Tilisha Morrison, 25, of Dallas, was sentenced to 48 months in federal prison and ordered to pay $88,131 in restitution. Katrina Thomas, 41, of Garland, Texas, was also sentenced to 48 months in federal prison, and she was ordered to pay $76,831 in restitution. Defendants Kario Butler, 29, of Mansfield, Texas; Cyrus Pritchett, 25, of Dallas; and Jamilah Karriem, 21, of Dallas and Desoto, Texas, were sentenced to time served. One defendant, Karen Mendoza, 44, most recently of Dallas, remains a fugitive.
Minor was the leader of the conspiracy. The government presented evidence at trial that he stole identities in a variety of ways, including purchasing them from a group of safe robbers and recruiting a Federal National Mortgage Association (Fannie Mae) employee, Katrina Thomas, to steal more than 1000 identities from her Fannie Mae workstation. Once the IDs were in hand, Minor and Morrison accessed the victims’ bank accounts and performed hundreds of account take-overs. As part of the conspiracy, they recruited their co-conspirators to walk into banks and withdraw cash.
Law enforcement caught Minor and arrested him at the W Hotel in Dallas. Law enforcement found numerous stolen and fake IDs, counterfeit checks, a laptop computer containing a template for the Texas Department of Public Safety Temporary Driver License, a printer, and a $900 bottle of Dom Pérignon champagne he had just ordered from room service using one of the stolen credit cards. He had rented the room using another’s identification.
Minor and the conspirators stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
The U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General investigated the case.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor prosecuted.
Convicted Fraudster Pleads Guilty in Federal Court to Failing to Surrender for Service of SentenceRead the Press Release
DALLAS — A Irving, Texas, man, who was sentenced to serve 70 months in federal prison in an investor fraud case, pleaded guilty this morning to the federal offense of failing to surrender to serve that sentence, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Michael David Carroll, 39, faces a maximum statutory penalty of 10 years in federal prison, to be served consecutively to the sentence imposed on his prior conviction. He also faces up to a $250,000 fine. Sentencing is set for June 29, 2015, before U.S. District Judge David C. Godbey. By law, any sentence Carroll receives for this new offense must be served consecutively to the 70 month sentence Carroll is already serving.
Carroll pleaded guilty in April 2013 to one count of wire fraud stemming from his role as a registered agent, director and incorporator of The Salad Bowl Franchise Corporation. Carroll ran a scheme to defraud potential investors, and to obtain money and property under false and fraudulent pretenses, by fraudulently inducing investors to purchase a “Salad Bowl” franchise from him.
On March 17, 2014, U.S. District David C. Godbey sentenced Carroll to 70 months in federal prison and ordered to pay more than $1.4 million in restitution. Judge Godbey ordered Carroll to report to federal prison before 11:00 a.m. on Monday, May 19, 2014, to begin serving that sentence.
On April 18, 2014, the Court granted a defense request to delay Carroll’s report date and set a new report date of July 15, 2014. Again, on July 14, 2014, the Court granted another defense request to delay Carroll’s report date and set a new report date of no later than 2:00 p.m. on Monday, September 15, 2014. However, Carroll disobeyed Judge Godbey’s court order when he willfully failed to surrender for service of sentence. On September 17, 2014, Judge Godbey ordered that an arrest warrant be issued for Carroll.
That same day, a special agent with the FBI informed Carroll that he was a fugitive with an outstanding arrest warrant. The agent instructed Carroll to immediately surrender to the FBI office in Dallas. Rather than surrender as ordered, Carroll advised the FBI agent that he would drive to the designated prison facility and surrender the next morning. On September 18, 2014, Carroll finally surrendered to the designated federal prison facility.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis is prosecuting.
Fort Worth Selected as One of the First Six Pilot Sites for the National Initiative for Building Community Trust and JusticeRead the Press Release
FORT WORTH, Texas – As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve and protect, Attorney General Eric Holder announced Birmingham, Alabama; Fort Worth, Texas; Gary, Indiana; Minneapolis, Minnesota; Pittsburgh, Pennsylvania; and Stockton, California, are the first six cities to host pilot sites for the National Initiative for Building Community Trust and Justice. As part of a larger effort, the National Initiative team will work with each pilot site to assess the police-community relationship as well as develop a detailed site-specific plan that will enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded.
“This National Initiative is a multi-faceted approach to enhance community trust and help strengthen the relationship between law enforcement and the communities they serve,” said John Parker, Acting U.S. Attorney for the Northern District of Texas. “I join Fort Worth Police Chief Rhonda Robertson and Mayor Betsy Price in embracing this strategy.”
“The Fort Worth Police Department is honored to be selected as one of the six pilot sites for this groundbreaking study,” said Chief of Police Rhonda Robertson. “Upon learning about the project, we immediately realized the opportunity it would present to strengthen our existing community partnerships and to develop new relationships built upon trust within the community. Fort Worth is already an excellent place to live, work, and visit; and we believe our participation in the National Initiative for Building Community Trust and Justice will make it even better.”
“We’re pleased that Fort Worth was chosen as one of the six pilot sites for this national initiative,” said Mayor Betsy Price. “Fort Worth historically has an excellent track record of encouraging diversity as a city. This study will be a valuable tool to open the discussion on equitable treatment in major cities across the nation, including Fort Worth. This study gives us a tool to strengthen our partnership with the justice system and to continue building relationships in the community.”
Attorney General Holder also announced that the Department of Justice is providing additional training and technical assistance to police departments and communities that are not pilot sites. Through the Office of Justice Program’s Diagnostic Center (www.OJPDiagnosticCenter.org), police departments and community groups can request training, peer mentoring, expert consultation and other types of assistance on implicit bias, procedural justice and racial reconciliation. Additionally, the initiative launched a new online clearinghouse that includes up-to-date information about what works to build trust between citizens and law enforcement. The clearinghouse can be found at www.trustandjustice.org.
The Justice Department established the National Initiative for Building Community Trust and Justice as part President Obama’s groundbreaking launch of the My Brother’s Keeper initiative, which seeks to create opportunities for all young people in this country—regardless of their background—to improve their lives and reach their full potential.
“The Department of Justice is committed to using innovative strategies to enhance procedural justice, reduce bias and support reconciliation in communities where trust has been eroded,” said Attorney General Holder. “By helping to develop programs that serve their own diverse experiences and environments, these selected cities will serve on the leading edge of our effort to confront pressing issues in communities around the country.”
“Restoring trust where it has eroded is one of the defining public safety challenges of our day,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “Trust-building is the responsibility of the police and the community, and the National Initiative’s goal is to build the bridge that will define a new era in public safety.”
The three-year grant has been awarded to a consortium of national law enforcement experts from John Jay College of Criminal Justice, Yale Law School, the Center for Policing Equity at UCLA and the Urban Institute. The initiative is guided by a board of advisors that includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative simultaneously addresses the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative complements and is advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.
Former Denton High School Teacher Sentenced to Serve A Total of 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A former teacher at Denton High School, Gregory Bogomol, 39, was sentenced today on child pornography production convictions, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Bogomol, who pleaded guilty in October 2014 to an indictment charging two counts of production of child pornography, was sentenced by U.S. District Judge Terry R. Means to 360 months in federal prison for each count, to run consecutively, for a total of 720 months in federal prison.
According to documents filed in the case, the investigation began when U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was contacted by the parents of a 15-year-old male victim regarding an individual who solicited a nude photograph of the minor through a smartphone application.
Specifically, according to the factual resume, Bogomol used social media applications such as KIK, Grindr, and Pinger to initiate conversations with underage males. Bogomol posed as a minor female and sent nude images of females to entice the boys to produce sexually explicit pictures.
After Bogomol received an image from the minor male, Bogomol would make additional explicit demands. If the minor male did not comply with his demands, Bogomol would threaten to send sexually explicit pictures of the boy to the boy’s friends via social media applications.
On approximately April 20, 2014, Bogomol coerced one minor victim to send a sexually explicit image of himself. A few days later, Bogomol coerced another minor victim to send a sexually explicit image of himself.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated. Assistant U.S. Attorney A. Saleem prosecuted.
Dallas-Area Residents Charged with Conspiracy, Drug Trafficking and Firearms OffensesRead the Press Release
DALLAS — Ten Dallas-area residents have been charged with various federal offenses to include conspiracy, drug trafficking, and firearms offenses, including assault on federal agents, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Several of the defendants, charged in an indictment and in complaints, were arrested following a law enforcement operation on February 10, 2015. During that operation, at a residence in Grand Prairie, Texas, one of the defendants fired an AK-47 at two special agents with the FBI.
The charges are the result of the continuing investigation of the violent drug trafficking organization (DTO) known as the “Goon Squad,” which operated in Dallas. The Goon Squad consisted of numerous individuals, including defendant Jose Pedro Maya. In June 2014, the FBI arrested 10 members/associates of the Goon Squad and those cases are pending in this district. Shortly after those arrests, Maya fled to Mexico, but returned to the U.S. in September 2014. At some point in 2014, Maya split from the Goon Squad and began leading his own drug trafficking organization, the Maya DTO.
Defendants charged include:
Jose Pedro Maya, a/k/a “Little Maya,” 21, of Grand Prairie
Santiago Reynozo, a/k/a “Santiago Reynosa” and “Pelon,” 21, of Dallas
Baltazar Moreno, a/k/a “Chalan,” 39, of Dallas
Adrian Reynozo, a/k/a “Adrian Reynoso,” 22, of Dallas
Rogelio Lira, a/k/a “Primo,” 25, of Dallas
Guillermo Perez, 18, of Grand Prairie
Emmitt Herrera, Jr., 46, of Grand Prairie
Diego Moreno, 21, of Dallas
Jessie Amaya, 19, of Grand Prairie
Oracio Ferrer Reza, 34 of Mesquite, Texas
Maya is related to Santiago Reynoza and Adrian Reynozo, who are brothers.
The original indictment alleged the Maya DTO distributed methamphetamine and cocaine in the Dallas area; it also possessed and trafficked in firearms. Like the Goon Squad, it targeted individuals believed to be drug dealers for burglary, robbery, or other acts of violence as those individuals were likely to possess large quantities of illegal narcotics, cash or firearms and would not likely report any offenses by the Maya DTO because of their own unlawful activities.
Defendants Maya, Santiago Reynozo, Baltazar Moreno, Adrian Reynozo and Lira are each charged with one count of conspiracy to possess with intent to distribute a controlled substance — methamphetamine and cocaine. As part of the conspiracy, Moreno cooked methamphetamine and provided it to Maya and the other conspirators. Santiago Reynoza, Moreno, Adrian Reynozo and Lira sold the illegal narcotics outside of the Los Campadres Billiards in Dallas. Maya provided the methamphetamine for these individuals to sell, and he received a portion of the sales proceeds. Maya also sold firearms in furtherance of his drug trafficking activities, and all five defendants possessed firearms in furtherance of their drug trafficking activities.
Each of these five defendants is also charged with one count of using, carrying, or brandishing a firearm during or in relation to a drug trafficking crime; Adrian Reynozo is also charged with being an illegal alien in possession of a firearm.
In another indictment, Perez and Herrera are each charged with one count of assault on a federal officer, one count of conspiracy to possess with intent to distribute methamphetamine, and one count of conspiracy to possess with the intent to distribute heroin. In addition, Perez is charged with two counts and Herrera with one count of using carrying, brandishing and discharging a firearm during and in relation to a crime of violence. Herrera is also charged with one count of being a felon in possession of a firearm.
Defendants Diego Moreno and Reza each pleaded guilty this week to Informations charging one count of possession of methamphetamine with intent to distribute. Defendant Lira pleaded guilty to a superseding Information charging the same offense. Defendant Amaya pleaded guilty to an Information charging possession with intent to distribute cocaine. Each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
A trial date of April 20, 2015, is set for the remaining defendants.
According to documents filed in the cases, as law enforcement officers were executing an arrest warrant for Maya at his residence in Grand Prairie, Perez, who was a guest at the residence, grabbed an assault rifle and fired two rounds in the direction of the front door where law enforcement personnel were located. Law enforcement personnel had clearly identified themselves as law enforcement, both visually and orally.
Herrera was also in the residence at the time. He was in the kitchen where law enforcement observed a large quantity of methamphetamine and the water faucet turned on in what appeared to be an attempt to wash the methamphetamine down the sink.
A federal indictment is an accusation by a grand jury. If convicted, however, the statutory maximum penalty for the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. Each firearm conviction carries a statutory penalty of not less than five years in federal prison and up to a $250,000 fine, and the alien in possession conviction carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The assault on a federal officer offense carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The FBI and Dallas Police Department are investigating. Assistant U.S. Attorney P.J. Meitl is prosecuting.
*******media Advisory*******Read the Press Release
FORT WORTH TO JOIN NATIONAL EFFORT TO BUILD TRUST AND RECONCILIATION BETWEEN LAW ENFORCEMENT AND COMMUNITIES THEY SERVE
Attorney General Holder to Convene My Brother’s Keeper Roundtable with Students and Officers to Announce Six Regional Sites for the National Initiative for Building Community Trust and Justice
FORT WORTH, Texas – As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve, tomorrow, THURSDAY, MARCH 12, 2015 at 2:00 p.m. CDT, Attorney General Eric Holder will announce the first six pilot sites for the National Initiative for Building Community Trust and Justice.
The National Initiative for Building Community Trust and Justice, first announced in April 2014, is a $4.75 million partnership between the Department of Justice and criminal justice experts that will invest in training, evidence-based strategies, policy development and research to combat distrust and mend bonds between law enforcement and the community.
Attorney General Holder will announce the six Building Community Trust pilot sites after a My Brother’s Keeper roundtable discussion at the Department of Justice with law enforcement officers and students. This announcement comes on the heels of the Attorney General’s multi-state Building Community Trust tour held over the last several months.
WHO: Attorney General Eric Holder Assistant Attorney General Karol V. Mason of the Office of Justice Programs
WHEN: THURSDAY, MARCH 12, 2015 2:00 p.m. CDT
WHERE: U.S. Department of Justice 950 Pennsylvania Avenue, N.W. Washington, DC 20530. PHOTO SPRAY AT THE BOTTOM (Media Access: 2:30 p.m. EDT//Media Gather Time: 3:00 p.m. EDT//Department of Justice Visitor’s Center on Constitution Avenue between 9th and 10th Streets.)
Background on the National Initiative for Building Community Trust:
The initiative, which is an ongoing partnership with the Justice Department, will provide training to law enforcement and communities on bias reduction, procedural fairness, and reconciliation, and will apply evidence-based strategies in six pilot sites around the country. It will also establish a clearinghouse where information, research and technical assistance are readily accessible for law enforcement, criminal justice practitioners and community leaders.
The three-year grant has been awarded to a consortium of national law enforcement experts led by John Jay College of Criminal Justice. Yale Law School, the Center for Policing Equity at UCLA and the Urban Institute make up the rest of the consortium. The initiative will be guided by a board of advisors which includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative will simultaneously address the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation.
The initiative will complement and be advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.
Federal Grand Jury Indicts Rockwall Man on Prepubescent Child Pornography OffensesRead the Press Release
DALLAS — Christian C. Winchel, 48, of Rockwall, Texas, was indicted yesterday by a federal grand jury in Dallas on multiple federal child pornography offenses involving prepubescent child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Winchel with one count of production of child pornography, one count of transporting and shipping child pornography, and two counts of possession of prepubescent child pornography. Winchel has been in custody since his arrest on a related federal criminal complaint in early February 2015.
According to documents filed in the case, on February 4, 2015, special agents with FBI’s Dallas Child Exploitation Task Force executed a federal search warrant at Winchel’s home. Law enforcement located and forensically reviewed multiple files of child pornography, including images of prepubescent child pornography.
Count one of the indictment alleges that on July 23, 2014, Winchel used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. Count two of the indictment alleges that on February 1, 2013, Winchel transported images and videos of child pornography from Indiana to Texas. Counts three and four of the indictment allege that on February 4, 2015, Winchel possessed images of prepubescent child pornography on an external hard drive and on a thumb drive.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison. The statutory penalty for the transportation count is not less than five years and up to 20 years in federal prison. Each of the possession counts carries a maximum statutory penalty of 20 years in federal prison. In addition, each count carries up to a $250,000 fine and up to a lifetime of supervised release.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Anyone who knows of someone who may have been victimized in this case is asked to contact the FBI at 972-559-5000.
The FBI’s Dallas Child Exploitation Task Force is conducting the investigation. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Dallas Man Faces up to 10 Years in Federal Prison for Transporting Woman from Oklahoma to Texas to Engage in ProstitutionRead the Press Release
DALLAS — Justin Dishon Brathwaite, 27, of Dallas, Texas, appeared in federal court today before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of transportation of individuals to engage in prostitution, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brathwaite, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing is set for June 17, 2015, before U.S. District Judge Barbara M. G. Lynn.
According to documents filed in the case, in early May 2012, Brathwaite called 19-year-old “Jane Doe,” after seeing her on Backpage.com in Oklahoma City. Jane Doe and Brathwaite spoke on the phone for about two weeks, and Brathwaite invited her to come to Dallas to live with him. He promised to take care of her if she moved to Dallas to be with him and told her she should stop engaging in commercial sex acts. Jane Doe agreed to the move.
On May 12, 2012, Brathwaite drove from Dallas to Oklahoma City, picked up Jane Doe and returned to Dallas. Once they arrived in Dallas, Brathwaite told her she needed to begin immediately to make money for him, or he would drop her off somewhere and leave her. Jane Doe eventually agreed to work at a strip club and engage in commercial sex acts. Brathwaite posted ads featuring her on Backpage.com, and he made Jane Doe give him all of the proceeds from her commercial sex acts. Brathwaite took Jane Doe to various cities in Texas, including Denton, Killeen, Houston and Austin.
On June 12, 2012, the Dallas Police Department’s vice unit encountered Jane Doe in a hotel room in Dallas and arrested her for prostitution. The investigation led to Brathwaite’s involvement in her commercial sex acts.
The FBI investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Mesquite Resident Indicted on Wire Fraud and Aggravated ID Theft Charges in Stolen Identity Refund Fraud (SIRF) CaseRead the Press Release
DALLAS — A federal grand jury in Dallas has returned an indictment charging Yolanda Lavell Kaiser with nine counts of wire fraud and two counts of aggravated identity theft, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Special agents with Internal Revenue Service (IRS) Criminal Investigation (CI) arrested Kaiser on those charges, and she made her initial appearance in federal court on February 12, 2015. Following a detention hearing held yesterday before U.S. Magistrate Judge Irma C. Ramirez, she was released on bond with conditions, including 24-hour home incarceration with electronic monitoring. In addition, Kaiser was ordered not to engage in the filing of any tax returns for anyone other than herself, not to possess any personal identification information for any person other than herself and any dependent, and not use a computer while charges are pending. According to the order setting those conditions, Kaiser is a resident of Mesquite, Texas.
According to the indictment, Kaiser prepared and filed tax returns through a tax preparation business known as Right 1 Tax Services, which, between September 2013 and April 2014, maintained an office on North Galloway in Mesquite. Subsequently, Right 1 Tax Service moved its office to Estate Lane in Dallas.
The indictment alleges that from September 2013 through August 2014, Kaiser prepared and filed fraudulent tax returns using the name, Social Security Number, and other means of identification of others, without their knowledge or consent. Using that information, she would obtain and possess prepaid debit cards issued in the names of those individuals, also without their knowledge or consent.
According to the indictment, using the identification of others, without their knowledge or consent, Kaiser filed false federal income tax returns to request tax refunds and direct the tax refunds to be deposited on prepaid debit cards. Kaiser then made cash withdrawals of refunds deposited into accounts, including making withdraws at ATMs with the prepaid debit cards.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the penalty for each count of wire fraud is 20 years in federal prison and a $250,000 fine. Each count of aggravated identity theft carries, upon conviction, a mandatory two-year sentence.
IRSCI, with assistance from the Mesquite Police Department and the Dallas County District Attorney’s Office, is investigating. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
Dallas Man Sentenced to 300 Months in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Christopher Washington, 49, who admitted committing the armed robberies of businesses in the Dallas area in 2012-2013, was sentenced today by U.S. District Judge Jane J. Boyle to 300 months (25 years) in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In August 2014, Washington pleaded guilty to two counts of interference with commerce by robbery and one count of carrying and brandishing a firearm during and in relation to a crime of violence.
In September 2014, co-defendant Darren Lewis, 45, was sentenced to 324 months in federal prison. He pleaded guilty to three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on October 30, 2012, Lewis entered a Hampton Inn and Suites in Desoto, Texas, inquired about room rates, looked around the lobby, and then left the hotel. Immediately afterwards, Washington entered the lobby and requested a room. He then pulled out a firearm, pointed it at the desk clerk, and demanded cash. Fearing for her life, the clerk complied. Washington then left the hotel and got into a waiting Ford expedition, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied, and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On January 28, 2013, Lewis entered a 7-Eleven store in Dallas, grabbed a candy bar from a shelf and then pulled out a silver handgun, pointed it at the clerk, and demanded money from the cash register. In fear for his life, the clerk complied. Lewis then fled the store and drove away in a maroon Ford Expedition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dallas, Duncanville, Desoto, and Cedar Hill Police Departments investigated the case. Assistant U.S. Attorney Taly Haffar prosecuted.
Justice Department Reaches Settlement with Santander Consumer USA to Resolve Allegations Concerning over 1,100 Illegal Car Repossessions Against Service MembersRead the Press Release
WASHINGTON – Santander Consumer USA Inc. has agreed to pay at least $9.35 million to resolve a lawsuit by the Department of Justice alleging that the motor vehicle lender violated the Servicemembers Civil Relief Act (SCRA), the Justice Department announced today. The complaint and the settlement, which is subject to court approval, were filed today in the U.S. District Court for the Northern District of Texas.
The settlement covers the improper repossessions of 1,112 motor vehicles between January 2008 and February 2013. The proposed consent order represents the largest settlement for illegal automobile repossessions ever obtained by the United States under the SCRA.
“This is a just resolution that will provide service members with financial relief and help repair their bad credit caused by Santander’s improper repossessions and fee collections with respect to more than 1,100 cars,” said Acting Associate Attorney General Stuart Delery. “The Department of Justice will continue devoting time and resources to protect our service members and their families from such unjust actions and hold bad actors accountable."
“Those who answer this nation’s call to duty understandably have much on their minds while they are in military service,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Whether their car will be seized and sold at auction should not be an additional worry. We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it is owned by a service member.”
The SCRA protects service members against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the service member took out the loan, and made a payment, before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the service member, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the service member. By failing to obtain court orders before repossessing motor vehicles owned by protected service members, Santander prevented service members from obtaining a court’s review of whether their repossessions should be delayed or adjusted in light of their military service.
The lawsuit alleges that Santander initiated and completed 760 repossessions, without court orders, of motor vehicles owned by SCRA-protected service members. The agreement requires Santander to pay $10,000 plus compensation for any lost equity (with interest) to each of these service members. The lawsuit also alleges that Santander sought to collect fees arising from an additional 352 repossessions that unrelated motor vehicle lenders had conducted in violation of the SCRA before Santander acquired the loans. The agreement requires Santander to pay $5,000 to each of these service members. Santander also must repair the credit of all affected service members.
“The SCRA is an important protection for the men and women serving our country in the armed forces, and this settlement not only will rectify the past improper repossessions of service members’ vehicles, but will work to prevent such improper repossessions in the future,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
For future repossessions, the settlement requires Santander to check the Defense Department’s automated database to see if a car’s owner is in military service prior to conducting a repossession.
The Department of Justice first learned of Santander’s repossession practices through a referral from the U.S. Army’s Legal Assistance Program. The referral involved a claim that Santander illegally repossessed the car of a service member, U.S. Army Specialist Joshua Davis, in the middle of the night, after having been informed that he was at basic training. The department also opened its investigation after learning that Santander used an arbitration clause included in its loan documents to prevent a second service member from pursuing systematic relief through a class action lawsuit he filed alleging that Santander had repossessed service members’ vehicles in violation of the SCRA.
As part of its investigation, the United States has already identified Santander’s illegal repossessions, and efforts to collect unlawful repossession fees, occurring between January 2008 and February 2013. Service members identified based on that investigation will be contacted by an independent settlement administrator later this year. The settlement also requires Santander to conduct a review and provide compensation for any additional unlawful repossessions that may have occurred since February 2013. All service members who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the Department of Justice.
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 37 lending matters under the Fair Housing Act, the Equal Credit Opportunity Act, and the Servicemembers Civil Relief Act. The settlements in these matters provide for over $1.2 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress on ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.
The Civil Rights Division is a member of the Financial Fraud Enforcement Task Force. President Obama established this task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
The Civil Rights Division is the component within the Department of Justice authorized to enforce the SCRA. This federal law provides protections for active duty service members in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about SCRA enforcement by the Justice Department, please visit www.servicemembers.gov or call 1-800-896-7743, Mailbox 91.
Local Immigration Lawyer Arrested on Federal ChargesRead the Press Release
DALLAS — A Dallas attorney was arrested this morning on felony charges, outlined in a federal indictment returned by a grand jury earlier this week and unsealed today, stemming from her work in representing aliens, that is, non-U.S. citizens, before the U.S. Department of Homeland Security (DHS), U.S. Citizen and Immigration Service (USCIS), announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Sherin Thawer, 45, was arrested by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at her residence in Coppell, Texas. She made her initial appearance today before U.S. Magistrate Judge Stickney, who released her on conditions.
The seven-count indictment charges Thawer with one count of conspiracy to commit fraud in connection with immigration documents; one count of mail fraud; one count of transfer or use of the means of identification of another person; and four counts of aggravated identity theft.
According to the indictment, Thawer represented aliens before USCIS when they were applying for various types of visas to enter or remain in the U.S., including through obtaining U Nonimmigrant Status, also known as a U-Visa. To be eligible for a U-Visa, the alien must have been a victim of a certain crime, suffered mental or physical abuse as a result of the crime, and helped law enforcement in the investigation and/or prosecution of the crime. In addition to the U-Visa application, applicants are to submit a Law Enforcement Certification form completed and signed by the certifying official for the law enforcement agency that investigated and/or prosecuted the crime for which the alien was a victim.
The indictment alleges that beginning in approximately March 2012 and continuing until September 2014, Thawer submitted fraudulently completed and forged Law Enforcement Certification forms to USCIS to obtain U-Visas for the aliens she represented. These Law Enforcement Certification forms, containing the names and badge numbers of police officers, were completed without the knowledge or authorization of the police officers, and the signatures purporting to be those of the named officers were forged.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for the conspiracy charge is ten years in federal prison and a $250,000 fine. The statutory maximum for the transfer or use of the means of identification of another person charge is fifteen years in federal prison and a $250,000 fine, per count. The statutory maximum penalty for the mail fraud count is 20 years in federal prison and a $250,000 fine. Each of the aggravated identity theft counts carries a statutory penalty of a mandatory two years in federal prison and a $250,000 fine.
ICE HSI, the Irving Police Department, and USCIS are investigating. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley are prosecuting.
Convicted Tarrant County Tax Preparers Sentenced to Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — A husband and wife who were convicted at trial on multiple felony offenses stemming from their operation of a tax return preparation business in Tarrant County, were sentenced this morning by U.S. District Judge John McBryde, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jacqueline Morrison and Gladstone Morrison, who operated Jacqueline Morrison & Associates (JMA) on North Collins in Arlington, Texas, and on James Street in Fort Worth, Texas, were each sentenced to serve 187 months in federal prison. In addition, Judge McBryde ordered them to pay nearly $18 million in restitution.
Specifically, in October 2014, a federal jury convicted Jacqueline and Gladstone Morrison each on one count of conspiracy to aid and assist in the preparation and presentation of false and fraudulent tax returns. Jacqueline Gladstone was also convicted on 13 counts and Gladstone Morrison on 12 counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns. Jacqueline was convicted on three counts and Gladstone on four counts of wire fraud.
Gladstone Morrison has been in custody since the conviction. Judge McBryde ordered Jacqueline Morrison to surrender to the Bureau of Prisons on March 13, 2015.
“This office is committed to working with IRS Criminal Investigation to pursue criminals who rob the U.S. Treasury by perpetrating tax fraud schemes,” said Acting U.S. Attorney Parker. “The aggressive prosecution of these individuals is vital to maintaining public confidence in our tax system.”
R. Damon Rowe, Special Agent in Charge of the Dallas Office of IRS Criminal Investigation said, “Most Certified Public Accountants strive for the highest ethical standards; Jacqueline Morrison, however, is one CPA who did not. She and her husband, Gladstone, abused the trust their clients placed in them and their company, Jacqueline Morrison & Associates. With today’s sentences, the Morrison’s are now being held accountable for their corrupt actions.”
The government presented evidence that the Morrison’s conspired to willfully aid and assist in and advise the preparation and presentation to the IRS of false and fraudulent individual income tax returns. Many of the tax returns were false and fraudulent because to increase client refunds, the returns claimed Schedule C business losses from income for which the Morrisons knew the taxpayers were not entitled. The Morrisons and JMA tax return preparers, who the Morrisons trained, would use the substantial losses reported on the false Schedules C to offset wage income, resulting in clients recovering all or most of their tax withholding. The Morrisons benefitted from this practice by charging higher fees for additional schedules, creating client loyalty and increasing their business through client referrals.
As part of the conspiracy, the Morrisons, according to evidence presented, developed a series of forms for the client to sign at the time the return was prepared. These forms were intended to protect the Morrisons by placing all the responsibility for any false information on the client, no matter how transparently implausible or unsubstantiated the information on the return.
During the time of the conspiracy, the Morrisons collected more than $2 million in fees from clients. They also attempted to profit by using JMA’s fraud to build a large client list, which they then leveraged into a lucrative franchise agreement with Express Tax Services, a subsidiary of H&R Block. However, after they entered the franchise agreement, the IRS terminated the Morrisons’ Electronic Filing Identification Numbers (EFINs) because of their fraudulent activities. To conceal that fact and perpetuate the continuation of the franchise agreement, the Morrisons provided Express Tax Services EFINs that belonged to a business associate.
Regarding the wire fraud offenses that occurred during the time of the conspiracy, the government presented evidence that the franchise agreement provided for the payment of $750,000 from Express Tax to the Morrisons. To secure the agreement, the Morrisons falsely represented to Express Tax that JMA was not under investigation, when in fact, they well knew JMA was the subject of a federal criminal investigation by IRS-Criminal Investigation.
Unbeknownst to Express Tax, the Morrisons entered into a separate agreement to sell JMA to an individual named V.H. Gladstone Morrison misled V.H. about the true nature of JMA’s relationship with Express Tax by telling V.H. that the arrangement was nothing more than a “co-branding” or “co-marketing” agreement.” Gladstone Morrison also tried to prevent Express Tax from learning they had executed an agreement to sell JMA to V.H. by falsely telling Express Tax that V.H. was only the Morrison’ office manager. By entering into parallel agreements with separate entities — Express Tax and V.H., the Morrisons received payments from both entities for the same asset.
When the Morrison’s agreements with both Express Tax and V.H. fell apart, they again tried to profit by selling JMA to RealTex Ventures LLC, owned by “D.A.” for $425,000. Again, the Morrisons represented that JMA was not under investigation, when it was.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorneys Douglas Allen and Chris Wolfe prosecuted.
Hurst, Texas, Man Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — A Hurst, Texas, man appeared in federal court this morning and pleaded guilty to an indictment charging child pornography offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, Randy Ray Wesson, 29, pleaded guilty, before U.S. Magistrate Judge Jeffrey L. Cureton, to one count of possession of child pornography and one count of receipt of child pornography. He faces a maximum statutory sentence on the possession count of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. On the receipt count, he faces a statutory sentence of not less than five years and not more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. However, according to the plea agreement filed, if the Court accepts this plea agreement, the parties agree that the appropriate punishment in this case is no more than 30 years in federal prison. Sentencing is set for June 25, 2015, before U.S. District Judge Terry R. Means.
Wesson has been in custody since his arrest in November 2014 on related charges outlined in a federal criminal complaint.
According to the complaint, the investigation began when a detective with the Hurst Police Department received information form the Dallas Police Department’s Internet Crimes Against Children (ICAC) unit regarding a Cybertip received from the National Center for Missing and Exploited Children (NCMEC). That referral indicated that a particular Instagram member had uploaded an image of child pornography through their server on June 7, 2014. The investigation revealed that Wesson was the owner of that account.
Officers with the Hurst Police Department executed a state search warrant at Wesson’s home on November 18, 2014, in an effort to search for and seize evidence of child pornography. Wesson was present during the search. A forensic examination revealed that Wesson’s desktop computer contained files visually depicting minors, including a prepubescent minor, engaged in sexually explicit conduct.
In addition, according to the filed factual resume, on February 9, 2014, Wesson used the Internet and Instagram to receive visual depictions of minors engaged in sexually explicit conduct.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Hurst Police Department are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Former Garland, Texas, Man Admits Aiming A Laser Pointer at HelicopterRead the Press Release
DALLAS — A former resident of Garland, Texas, appeared in federal court this morning, before U.S. Magistrate Judge Irma C. Ramirez, and admitted aiming a laser pointer at a helicopter, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Steven Alexander Chavez, Jr., 23, pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for June 3, 2015, before Chief U.S. District Judge Jorge A. Solis.
According to documents filed in the case, in August 2013, Chavez knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Chavez aimed the laser at the helicopter from the backyard of a friend, while the helicopter was flying overhead.
A few days later, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland. Following his initial court appearance, he was released on bond.
The FBI, Texas DPS and Garland Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
Johnson County Man Sentenced to 27 Months in Federal Prison on Obscenity ConvictionRead the Press Release
LUBBOCK, Texas — Christopher Wayne Howard, 26, of Joshua, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 27 months in federal prison, following his guilty plea in October 2014 to one count of transferring obscene material to a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Judge Cummings ordered Howard to surrender to the Federal Bureau of Prisons to commence service of his sentence on March 20, 2015.
According to documents filed in the case, in March 2014, Howard engaged in a series of online and telephone texting communications with “Jane Doe,” a person he knew to be a 13-year-old-female. During the communications, Howard often turned the subject to sexually explicit matters. On March 13, 2014, Howard chatted with “Jane Doe” and used an online application to send her an obscene, sexually explicit photograph of an adult male.
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 San Angelo Police Department’s Special Operations Division investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Indicted Lewisville, Texas, Resident to Remain in Federal CustodyRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment last week, that was unsealed today, charging a Lewisville, Texas, man with offenses stemming from his theft of others’ personal identifying information to steal income tax refunds, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Defendant John Bash made his initial appearance in federal court today, before U.S. Magistrate Judge Paul D. Stickney, who ordered him detained. During the hearing, it was revealed that Bash, who was arrested by special agents with the Internal Revenue Service (IRS) Criminal Investigation (CI) at his residence in Lewisville, is 30-years-old.
The indictment charges Bash with two counts of conspiracy to commit theft of federal public money and two counts of aggravated identity theft.
It alleges that beginning in January 2012, Bash conspired to steal federal public money, that is, income tax returns. As part of the conspiracy, according to the indictment, Bash would obtain the personal identifying information of third persons, including their names, Social Security Numbers and dates of birth. Then, Bash would prepare and submit false federal income tax returns to the IRS using that information. Bash prepared the false income tax returns to include false income and withholding information in a way that would result in a claim for a refund. He filed the returns requesting the refunds either be mailed in the form of a check to an address controlled by a conspirator or loaded onto debit cards acquired by a conspirator.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the penalty for each count of conspiracy to commit theft of federal public money is 10 years in federal prison and a $250,000 fine. Each count of aggravated identity theft carries, upon conviction, a mandatory two-year sentence.
IRSCI is investigating. Assistant U.S. Attorney Aaron Wiley is in charge of the prosecution.
Wingate, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Larry Richie Fields, 45, of Wingate, Texas, appeared today in federal court before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of transportation of child pornography. Fields, who has been in federal custody since his arrest in January on related charges, faces a maximum statutory penalty of not less than five years and up to 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, on October 25, 2014, Fields used the Internet to transport two images of child pornography using an online social networking service. Over a period of years, beginning no later than 2012, Fields used various social networking services and online storage services to post and store images depicting minors engaging in sexually explicit conduct. Fields used multiple usernames to trade, collect, transport, and receive child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Dallas Internet Crimes Against Children (ICAC) Task Force; the Texas Department of Public Safety, Criminal Investigations Division; the Taylor County Sheriff’s Office; and the San Angelo Police Department, Special Operations Division. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Dallas County Man Admits Producing Producing Child PornographyRead the Press Release
DALLAS — A Hutchins, Texas, man, Servando Vega Cervantes, 24, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to an indictment charging three counts of production of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.
Cervantes faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, for each count. Each count also carries up to a $250,000 fine and up to a lifetime of supervised release. Cervantes has been in custody since his arrest in November 2014 on a related federal complaint. He is scheduled to be sentenced on May 28, 2015, by U.S. District Judge Jane J. Boyle.
According to documents filed in the case, the Hutchins Police Department contacted the FBI in May 2014 regarding questionable online communication between an 11-year-old victim, “John Doe #1,” and the Facebook user profile of “Laura Ortiz.” The victim’s mother believed the user of the Ortiz profile was actually an adult male and not a 13-year-old female as described in chat conversations between John Doe #1 and Ortiz. The investigation revealed that the user profile “Laura Ortiz” belonged to Cervantes. The investigation also revealed that John Doe #1 knew Cervantes as “Jordan,” an alias Cervantes used.
In May 2014, Cervantes enticed John Doe #1 to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct. In December 2013, Cervantes enticed another minor, under the age of 14, John Doe #2, to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct.
Cervantes admitted he had sexual contact with other minors.
Anyone who may have been victimized in this case is asked to contact the FBI at 972-559-5000.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Dallas Child Exploitation Task Force and the Hutchins Police Department are conducting the investigation. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Defendants Sentenced in Drug Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Two defendants, who pleaded guilty in June 2014 to their respective roles in a crack cocaine/cocaine powder distribution conspiracy that operated in Wichita Falls and McAllen, Texas, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas..
Yesterday, U.S. District Judge Reed C. O’Connor sentenced Rodolfo Trevino, 34, of Wichita Falls, to a 97-month term of imprisonment. Trevino pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine base and one count of money laundering. Judge O’Connor also ordered that Trevino forfeit a residence located in the University Park subdivision in Wichita Falls, a Land Rover Range Rover, a Hummer H2, a firearm and assorted ammunition.
In mid-December 2014, Judge O’Connor sentenced co-defendant Rene Villastrigo, Jr., 34, also of Wichita Falls, to 30 months in federal prison. He pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Beginning sometime in 2012 and continuing to April 18, 2014, Trevino and Villastrigo conspired together and with Senobio Ortiz, Jr., of McAllen Texas, and others, to possess with the intent to distribute cocaine and cocaine base. Ortiz has pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine, and he is scheduled to be sentenced in April 2015.
According to court documents, Trevino traveled frequently to McAllen, where he recruited Ortiz to regularly transport cocaine and marijuana from McAllen to Wichita Falls. Trevino also recruited Villastrigo to rent a residence in Wichita Falls to store and repackage the cocaine and marijuana for distribution. Trevino used this residence to convert the powder cocaine into crack cocaine.
Trevino deposited the drug proceeds he acquired into bank accounts in Wichita Falls and withdrew those deposits in the McAllen area, intending for these financial transactions to conceal his drug trafficking activity.
On April 18, 2014, law enforcement executed a search warrant at a residence in Wichita Falls where Trevino and Villastrigo manufactured crack cocaine. Both Trevino and Villastrigo were present at the time, and officers found approximately 250 grams of cocaine base and eight packages of marijuana, each weighing more than one pound. Officers found a firearm during a search of Trevino’s girlfriend’s home, and they found ammunition for the firearm at Trevino’s home.
The FBI’s Safe Streets Task Force (SSTF), Wichita Falls Police Department, and Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted the criminal case, and Assistant U.S. Attorney John de la Garza prosecuted the forfeitures.
Nine Arrested During Online Solicitation Investigation Face Federal ChargesRead the Press Release
AMARILLO, Texas — Nine men who were arrested this past weekend during a multi-agency investigation into online solicitation now face federal charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Each of the following defendants has been charged in a separate federal complaint, just unsealed, with attempted enticement of a child. Each made his initial appearance in federal court yesterday before U.S. Magistrate Judge Clinton E. Averitte.
Aaron Joe Davis, 38
Jeffery Robert Abraham, 31
Kolby Shelb Kemp, 21
Mario Simental, 27
Brad Eugene Sharber, 44
Daniel Lee Garcia, 37
Robert James Tidwell, 20
Charles Alexander Diaz, 20
Kyle Andrew Adair, 22
All are residents of Amarillo, Texas, with the exception of defendant Tidwell, who is a Pampa, Texas, resident.
According to the complaints filed, at some time during the period January 29, 2015, and Jan 31, 2015, the defendants communicated via email and/or text messaging with an individual they believed to be 14 years-of-age. In all but one case, the defendant believed the 14-year-old was female. In at least one incident, the defendant sent a sexually explicit photograph to the individual they believed to be 14-years-old. In all instances, a meeting time and place was arranged, and in all but two instances, the defendant was arrested at the location. Defendant Davis was arrested after fleeing and leading officers and agents on a vehicle pursuit through Amarillo. Defendant Garcia was arrested after leading officers and agents on a brief foot chase.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty for the offense as charged is not less than 10 years and up to life in federal prison, a $250,000 fine and up to a lifetime of supervised release. The government has 30 days to present the case to a federal grand jury for indictment.
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 Texas Department of Public Safety, the Amarillo Police Department, Randall County Sheriff’s Department, Potter County Sheriff’s Department, West Texas A&M Police Department, Canyon Police Department, the Amarillo and Randall County District Attorney’s Offices, and the U.S. Marshals Service are investigating. Assistant U.S. Attorneys Joshua Frausto and Tim Hammer are in charge of the prosecution.
Defendant Sentenced to 10 Years in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
AMARILLO, Texas — Hugo Gomez-Barrientos, most recently of Hereford, Texas, was sentenced this week by U.S. District Judge Mary Lou Robinson to 120 months in federal prison on a methamphetamine distribution conviction, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gomez-Barrientos, 46, pleaded guilty in November 2014 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since his arrest at his residence on September 25, 2014, after the return of that indictment.
According to documents filed in the case, on May 7, 2013, Gomez-Barrientos agreed to meet with an undercover Drug Enforcement Administration (DEA) Task Force Officer (TFO), at a convenience store in Hereford, and sell him a quarter pound of methamphetamine for $3,750 and front him an additional quarter pound to be paid for later. Gomez-Barrientos changed the meeting place from the convenience store to a cattle truck wash.
After the undercover TFO arrived at the cattle truck wash, Gomez-Barrientos walked up to his vehicle and the sale took place. The undercover TFO advised he would pay him the balance owed for the additional quarter pound of methamphetamine on the next buy.
Approximately one month later, on June 5, 2013, the undercover TFO called Gomez-Barrientos to discuss the remaining balance he owned. They agreed to meet at Gomez-Barrientos’s ranch. The undercover TFO advised that the prior amount of methamphetamine was short of the quarter pound and the undercover TFO and Gomez-Barrientos agreed that the undercover TFO would pay $3,000 for it.
The DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety (DPS) investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
Dallas Man Faces up to Life in Federal Prison for Sex Trafficking A 17-Year-Old RunawayRead the Press Release
DALLAS — A Dallas man who met a 17-year-old female on the Internet, convinced her to leave her foster home and go to Texas with him where he facilitated her engagement in commercial sex acts, pleaded guilty yesterday in federal court, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ladestro Douglas, a/k/a “Derek Douglas,” 35, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit sex trafficking of children. Douglas faces a maximum statutory sentence of life in federal prison. Sentencing is set for June 3, 2015.
According to documents filed in the case, in May 2012, Douglas contacted 17-year-old “Jane Doe #1” on the Internet and began communicating with her. He convinced her to leave her foster home in Alabama and travel with him to Texas. When they arrived in Texas, Douglas facilitated Jane Doe #1 engaging in commercial sex acts. He took provocative photos of her for use on commercial sex websites; posted her on Backpage.com and other similar commercial sex websites; provided her with contraceptives to use with customers; and drove her to various cities to engage in commercial sex acts. Jane Doe #1 gave Douglas all of the money she earned.
In June 22, 2012, officers with the Dallas Police Department responded to a disturbance call at a local hotel. In the parking lot, they encountered Jane Doe #1, who explained that she had gotten in an altercation with her pimp, Douglas. Officers learned Jane Doe #1 was a 17-year-old runaway from Alabama, and they arrested Douglas. Douglas admitted that he knew she was age 17 and that she had been engaging in commercial sex acts throughout Texas. Afterwards, Jane Doe #1 lost contact with Douglas for several months, but after she turned 18, they reunited and Douglas continued to facilitate her commercial sex acts.
In December 2013, Jane Doe #1 and another woman were in Odessa, Texas, working at Douglas’s direction. They encountered 16-year-old Jane Doe #2 walking down the street, offered her a ride and she joined them. Jane Doe #1 contacted Douglas about Jane Doe #2 and he travelled to Odessa to meet her.
Douglas, Jane Doe #1 and Jane Doe #2 traveled back to Dallas on a bus, and after they arrived, Jane Doe #1 began facilitating Jane Doe #2’s engaging in commercial sex acts. They took provocative photos of her and posted her ad on Backpage.com. Jane Doe #1, at Douglas’s direction, contacted certain customers to see if they wanted to pay to have sex with Jane Doe #2. Jane Doe #1 rode in the car with Jane Doe #2 to her commercial sex transactions, but she did not go into the room where they occurred. Jane Doe #2 gave all of the money she earned to Douglas.
Ultimately, in late December 2013, Jane Doe #2 told Douglas she wanted to go home for the Christmas holidays, and he allowed her to leave.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Search Engine Optimizer Admits Extorting Money from A Local Merger and Acquisitions FirmRead the Press Release
DALLAS, Texas — A man, who, along with his sister, was indicted last year on felony offenses stemming from their attempts to extort money from a business in Dallas, pleaded guilty in federal court today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
William Stanley, 52, a/k/a “William Laurence,” “Bill Stanley,” “William Davis,” “William Harris,” and “William L. Stanley,” pleaded guilty today to one count of Hobbs Act – Extortion. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. However, according to the plea agreement, if the Court accepts Stanley’s plea, the parties agree that the appropriate term of imprisonment in the case is a maximum of 36 months. Sentencing was set for June 1, 2015, at 9:00 am.
William Stanley, a U.S. citizen, most recently resided in Romania with his wife, a Romanian national. In 2013, he traveled several times between Europe and the United States. On March 3, 2014, he was arrested on a related federal criminal complaint at George Bush Intercontinental Airport in Houston, where he arrived on a flight from Europe.
Stanley’s sister, Lynn Faust, a/k/a “Lynn Michaels,” 54, was arrested in Sweden in May 2014. Ms. Faust was extradited and appeared in Court in the Northern District of Texas on October 16, 2014. On October 21, 2014, the government withdrew its motion to detain, and the Court released Faust on conditions of release. She is charged with one count of transmitting threats in interstate and foreign commerce and one count of Hobbs Act – Extortion. She has filed a motion to continue her trial date.
Faust assisted Stanley operate his search engine optimization (SEO) company. A legitimate SEO business engages in standard practices such as optimizing the underlying HTML code on a website for certain keywords that a search engine indexer, (e.g., q web crawler for Google, Bing, etc.) would associate with a given search query. An illegitimate SEO business engages in deceptive tactics to affect search engine rankings and the volume of results. Such deceptive tactics include creating fraudulent reviews (good or bad), creating fictitious websites, or hiding text on websites.
While Stanley engaged in some legitimate SEO work, he also engaged in illegitimate and illegal SEO activities. Stanley also extorted individuals and companies by threatening to engage in the illegitimate SEO work, that being posting fraudulent comments and creating negative reviews online, if the victim did not pay him a certain sum of money.
In November 2009, Generational Equity (GE), a Dallas-based merger and acquisitions firm, entered into a contract with Stanley for SEO services and reputation management. Stanley was hired because of his ability to improve a firm’s online reputation through search results. After approximately one year, however, GE sought to terminate its relationship with Stanley after it determined he had acted outside of his contracted duties. Stanley also created websites that had the ability to damage GE’s reputation by associating GE with a scam. Stanley demanded additional payments to end his contractual relationship with GE and to surrender the administrator rights to the websites to GE. From November 2010 through January 2011, GE paid Stanley a total of $80,000 to terminate the relationship.
Posing as “William Davis” and “William Laurence,” Stanley transmitted threatening communications, via email and telephone, from foreign countries to GE in the Northern District of Texas. Those communications threatened to post comments on the Internet wrongfully disparaging GE’s reputation, if GE did not send money to Stanley.
Because of Stanley’s threats to harm GE’s reputation through negative Internet posts that would adversely affect GE’s ability to conduct business if it failed to send money, GE responded to the wrongful inducement by sending four payments totaling $29,556 by MoneyGram to Stanley in Brasov, Romania.
According to the stipulated facts outlined in the factual resume, the government can readily prove that Stanley’s extortive conduct caused GE to make the above payments and to lose revenue. The extortive conduct also affected interstate commerce. In addition, the government contends that as of May 2014, it could readily prove that Stanley engaged in similar extortionate conduct with approximately 40 to 45 victims (including GE), and the loss associated with those victims and attributed to Stanley was approximately $186,690.
The FBI is investigating. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
Hunt County Man Admits Producing Child PornographyRead the Press Release
DALLAS — A 31-year-old Hunt County man appeared this morning in federal court, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to two counts of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Stephen Walker, most recently of Quinlan, Texas, faces a statutory penalty of not less than 15 years, and not more than 30 years in federal prison, a $250,000 fine and up to a lifetime of supervised release, on each count. He remains in custody. Sentencing is set for May 21, 2015, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, in September 2006, Walker enticed Jane Doe #2, a seven-year-old female child, to engage in sexually explicit conduct that he photographed.
Then, in November 2010, Walker enticed Jane Doe #1, a three-year-old female child, to engage in sexually explicit conduct that he video-recorded.
The investigation began in November 2014 when a memory card, containing images of child pornography, was turned in to the Marion County Sheriff’s Office. That memory card had been found at a deer lease in a hunting club in Marion County; the deer lease had been used by Walker.
A search warrant of the memory card revealed it contained multiple sexually explicit videos of prepubescent child pornography taken at a Walker’s previous residence in Rowlett.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rowlett Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Dallas, Texas, Man Sentenced to 188 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — An Dallas, Texas, man was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 188 months in federal prison and a lifetime of supervised release on a child pornography conviction, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.
Timothy Bullard, 35, pleaded guilty in August 2014 to one count of transporting and shipping child pornography.
According to documents filed in the case, on November 1, 2013 FBI agents executed a search warrant at Bullard’s home, they seized computers and computer-related items.
Bullard admitted he possessed well over 600 images and possibly 500 videos of child pornography all of which were available for trading. Bullard admits to using the internet and other computer software to share and make files containing child pornography available to other users. He indicated that he had been downloading child pornography since he was sixteen years old.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigations investigated. Assistant U.S. Attorney Lisa Miller prosecuted.
Mesquite Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 20-year-old Mesquite, Texas, man appeared in federal court today before Chief U.S. District Judge Jorge A. Solis and pleaded guilty to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeremiah Chayse Gardiner faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. Sentencing is set for May 20, 2015. Gardiner remains in federal custody.
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 is in charge of the prosecution.
Fort Worth Man Sentenced to 78 Months in Federal Prison for Running Oil and Gas Ponzi SchemeRead the Press Release
FORT WORTH, Texas — A Fort Worth man convicted for running a fraudulent oil and gas Ponzi scheme was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Jeffrey Watts, a/k/a “Jeff Watts,” 41, was sentenced by U.S. District Judge Terry R. Means to 78 months in federal prison and ordered to pay $4,636,643 in restitution. Watts has been in custody since his arrest in May 2014 in Eugene, Oregon, where he fled when his scheme began to unravel.
According to documents filed in the case, beginning in fall 2011 and continuing to December 2013, Watts engaged in a scheme to defraud involving oil and gas investments. He presented himself as the founder and principal of Blue Alpha Energy, falsely representing to investors that the company had invested in oil and gas well in Texas and was owned and/or operated by Arrowhead Productions, a legitimate, but unrelated company based in Fort Worth.
Watts established Blue Alpha Energy and a group of related sham entities to perpetrate his fraud scheme by leading investors to believe they were investing in oil and gas wells owned and/or operated by Arrowhead Productions. For example, Watts represented to investors that Arrowhead LG, LLC was an assumed name or “d/b/a” of Arrowhead Productions, and he possessed documents that bore the purported signature of the actual president of Arrowhead Productions, as the President of Arrowhead LG, LLC.
Watts falsely portrayed these sham entities as legitimate, third party lenders or investors in his alleged oil and gas interests, and he transferred investor funds between these accounts and the accounts of Blue Alpha Energy.
Watts falsely represented to investors that they would receive monthly distributions according to their ownership percentage in oil and gas wells owned and/or operated by Arrowhead Productions. He also duped his business partners and employees into believing his fraudulent representations, causing them to disseminate printed investment information that conveyed his misrepresentations. To further the scheme, Watts made monthly payments to investors in Blue Alpha Energy, using investor funds transferred between bank account of the sham entities he controlled.
Between 2011 and 2013, approximately $5.8 million in investments was raised from approximately 45 investors. However, in December 2013, several investors in Blue Alpha Energy learned Watts never had investment agreements with Arrowhead Productions and, in fact, funneled the investor funds into the sham business entities he controlled.
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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case.
Couple Sentenced for Stealing Mail in Roanoke, Southlake, and Keller, TexasRead the Press Release
DALLAS — A couple who admitted stealing mail from residential mailboxes in and around Roanoke, Southlake, and Keller, Texas, were sentenced this week, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
William Lee Maglicco, 28, was sentenced by U.S. District Judge Reed C. O’Connor to 30 months in federal prison. Erica Michele Gibson, 26, was sentenced to 41 months in federal prison. Each pleaded guilty in October 2014 to an indictment charging one count of possession of stolen mail. Each has been in custody since their arrest in August 2014 on charges outlined in a related criminal complaint.
According to documents filed in the case, in early 2014, individuals from Roanoke, Southlake, and Keller complained that mail was stolen from their residential mailboxes. One of the victims stated that an American Express card was mailed to him/her at his/her Southlake address, but it was never received. U.S. Postal Inspectors investigated and discovered that Maglicco and Gibson used this individual’s credit card at a Walmart store in Grapevine, Texas, in March 2014.
On April 11, 2014, law enforcement executed a search warrant at Maglicco’s residence in Watauga, Texas, and discovered hundreds of pieces of stolen mail, including credit/debit cards, bank statements, passports and tax information. Law enforcement also found mail at the location addressed to the above-reference victim.
Both Maglicco and Gibson confessed to stealing mail from residential mailboxes in and around Roanoke, Southlake, and Keller, and using the stolen credit/debit cards to purchase items. According to the affidavit filed with the complaint, Maglicco admitted he stole mail approximately two to three times per week with his girlfriend, Gibson. He stated he stole mail to fuel his and Gibson’s drug habit.
The U.S. Postal Inspection Service and the Roanoke, Southlake, and Keller Police Departments investigated. Assistant U.S. Attorney Chris Wolfe prosecuted.
Armed Home Invader/Carjacker Sentenced to 15 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man who admitted to his role in an armed home invasion and carjacking conspiracy was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Michael Wafer, 26, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 15 years in federal prison. Wafer pleaded guilty in May 2013 to an indictment charging one count each of conspiracy to commit carjacking; using, carrying, and brandishing a firearm during and in relation to a crime of violence; and carjacking.
Wafer’s four co-conspirators, Blake Robertson, 22; Jeremiah Walker, 22; Christopher Staton, 20; and Ladavid Sims, 20; have each pleaded guilty to the same offenses as Wafer and are scheduled to be sentenced by Judge Boyle within the next few months. Statutorily, the conspiracy count carries a maximum penalty of five years in federal prison; the firearm offense carries a penalty of not less than seven and up to life in federal prison; and the carjacking offense carries a maximum penalty of 15 years in federal prison. Each count also carries a maximum statutory fine of $250,000.
On December 30, 2013, the five defendants discussed, planned, and agreed to rob an individual, “M.J.,” who was an acquaintance of Walker’s, at M.J.’s house in Dallas, and then steal his vehicle. Officers with the Dallas Police Department identified these five defendants as suspects in the armed home invasion and carjacking of M.J. during the early morning hours of December 31, 2013. Just prior to that, they had attempted another armed robbery in North Dallas, during which the victim was shot.
When the five conspirators entered M.J’s house, they were carrying firearms and were willing to inflict serious injury upon M.J. if he failed to comply with their demands. The conspirators demanded money and jewelry from M.J., at gunpoint, and M.J. was struck in the head several times with a weapon. The conspirators also took the keys to M.J.’s vehicle and all five conspirators fled in that vehicle.
The Dallas Police Department and the FBI investigated. Assistant U.S. Attorney Lisa J. Miller is prosecuting.
Waxahachie Man Sentenced to Federal Prison for Illegally Disbursing Funds in Bankruptcy CaseRead the Press Release
DALLAS — A Waxahachie, Texas, man, James Derek Howard, was sentenced today by U.S. District Judge Ed Kinkeade to serve one year and one day in federal prison, following his guilty plea last year to a bankruptcy fraud offense. In addition, Judge Kinkeade ordered that Howard pay $13,283 in restitution to Southwest Securities, FSB. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Howard, 39, pleaded guilty on October 14, 2014, to one count of fraudulent transfer of property of the bankruptcy estate. He has been in federal custody since October 1, 2014, when a U.S. Magistrate Judge revoked his pretrial release based on a government motion to revoke his bond.
According to documents filed in the case, Howard filed a Chapter 11 bankruptcy petition for Waxahachie Heritage Partners, LLC in October 2011. Waxahachie was the named corporate debtor listed in the bankruptcy petition, and Howard signed the petition in his capacity as a member of Waxahachie Heritage Partners, LLC.
Howard was on the signature card of the Debtor in Possession (DIP) account and had access to all the funds in the account. Pursuant to Court order, Howard could only disburse funds from the DIP account with the Court’s prior authorization. From March 2011 through March 2012, the Bankruptcy Court conducted several hearings and issued several orders in an attempt to compel Howard to provide a full accounting to the Court for all funds in the DIP account. Howard admitted that in January 2012, without Court authorization, he knowingly fraudulently transferred $10,000 from the DIP account by writing a $10,000 check to himself.
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. From May 2013 to the present, nine debtors have been charged with various felony offenses. To date, five of these defendants have entered guilty pleas and have been sentenced, three defendants are set for trial and one charged defendant remains in fugitive status with an outstanding arrest warrant.
The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney David Jarvis prosecuted.
Former Funeral Home Owner Faces up to 20 Years in Federal Prison on Food Stamp Benefit Fraud ConvictionRead the Press Release
DALLAS — A Mansfield, Texas, woman appeared today in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of food stamp benefit fraud, announced John Parker, Acting U.S. Attorney for the Northern District of Texas
Rachel Hardy, 35, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine or twice the pecuniary gain to Hardy or loss to the victims, and restitution. Sentencing is set for May 13, 2015, before U.S. District Judge Barbara M. G. Lynn. Hardy remains on pre-trial release.
The U.S. Department of Agriculture’s (USDA) Food Stamp Program is known as the Supplemental Nutritional Assistance Program (SNAP). The Texas Health and Human Services Commission (THHSC) administers SNAP in Texas.
The investigation began in 2012 when the Southwest Region USDA, Office of the Inspector General, received a referral about an individual who was receiving SNAP benefits who had failed to disclose a change in household composition and income from the ownership of two businesses. That individual was later identified as Hardy.
The investigation revealed that Hardy and her husband, who is the father of her youngest child, were married on February 14, 2010, in Las Vegas, Nevada. On April 8, 2010, Hardy submitted a SNAP benefits application, certifying she was a “single-parent-mother,” with no income, living in a household that consisted only of her children. Hardy’s application was approved, and she began receiving SNAP benefits.
On December 1, 2010, Hardy registered with Tarrant County as the owner operator of a tax refund and estate planning business called “Mighty Dollar Tax,” in Arlington, Texas. From April 8, 2010, through June 5, 2011, Hardy completed and submitted THHSC certifications reporting no income and claiming to live alone with her children.
On February 21, 2011, Hardy purchased a 2006 H2 Hummer for $26,000 and a 2008 Mercedes Benz CL S500 sedan for $41,700; she paid for each with a cashier’s check. At the time she purchased these vehicles, Hardy reported to THHSC that she was an unemployed, single-parent-mother living alone at home with her children.
On April 19, 2011, Hardy registered with Tarrant County as the owner operator of the Johnson Family Mortuary in Fort Worth, Texas. Again, on June 14, 2011, Hardy reported to THHSC that she was an unemployed single-parent-mother living alone at home with her children.
That same day, Hardy went to the Dallas County THHSC office where she completed and submitted a THHSC Application for Assistance Form. In doing so, she certified she was a “single-parent-mother” with no income living in a household that consisted only of her children.
On February 11, 2012, Hardy purchased a 2008 Land Rover Range Rover from Park Place Motors with a $53,000 cashier’s check. A few days later, on February 22, 2012, Hardy again certified to THHSC that she was an unemployed single-parent-mother living at home with her children.
The THHSC re-certifications and interviews revealed Hardy neither claimed a spouse nor any other income provided to her, or to anyone else in the household. Hardy admits that she failed to disclose material facts to THHSC and admits unlawfully receiving SNAP benefits to which she was not entitled.
The THHSC, OIG; USDA, OIG; U.S. Department of Housing and Urban Development, OIG; and U.S. Department of Education, OIG are investigating.
Assistant U.S. Attorney Aaron Wiley is in charge of the prosecution.
Convicted Sex Offender Faces up to 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 42-year-old Irving, Texas, man appeared this morning in federal court, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to an indictment charging one count of production of child pornography and one count of enhanced penalties for registered sex offenders, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Shannon Buck, who remains in federal custody, faces a maximum statutory penalty, for the two counts of conviction, of at least 35 years and up to 60 years of imprisonment. Each count also carries a maximum statutory penalty of a $250,000 fine and a lifetime of supervised release. Sentencing is set for May 13, 2015, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, in June 2014, Buck used Jane Doe, a real female under the age of 18, to engage in sexually explicit conduct, and then used his camera to record that conduct. In addition, Buck admitted that in February 2010, he pleaded guilty in the 195th District Court of Dallas County to two felony offenses of possession of child pornography, and he was sentenced to an eight-year period of deferred adjudication.
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 Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Phoenix Man Sentenced to 327 Months in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
LUBBOCK, Texas — Gregory James Flohr, 54, a former resident of Phoenix, Arizona, was sentenced today by U.S. District Judge Sam R. Cummings to 327 months in federal prison, following his guilty plea in August 2014 to one count of transportation of child pornography and one count of possession of child pornography. Today’s announcement was made by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flohr has been in custody since his arrest last summer on a related federal criminal complaint.
According to the factual resume filed in the case, when Flohr traveled from Arizona to Texas, he intentionally transported videos depicting a prepubescent female minor engaged in sexually explicit conduct. In addition, on the evening of July 2, 2014, Flohr knowingly possessed a Samsung cell phone that contained a child pornography video that had been transported from Arizona.
According to the complaint filed in the case, the investigation began on July 2, 2014, after Flohr entered a T-Mobile store in Lubbock, accompanied by “Jane Doe,” a female minor under age 12. Flohr purchased a new cell phone for himself and requested that the T-Mobile staff transfer data from his existing cell phone onto the newly purchased cell phone. This process involved Flohr telling the T-Mobile employee his Google Gmail account and password to facilitate the data transfer. During the data transfer, the employee noticed several images and videos of Flohr engaged in sexual contact with Jane Doe. After Flohr left the store, T-Mobile contacted the Lubbock Police Department to report the incident.
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 Internet Crimes Against Children (ICAC) Task Force, the Hockley County Sheriff’s Office, the Phoenix Police Department, Phoenix, Arizona, and the FBI, investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Dallas Man Sentenced to 63 Months in Federal Prison on Obscenity ConvictionRead the Press Release
DALLAS — A Dallas man who admitted committing a federal obscenity offense was sentenced today by U.S. District Judge Sidney A. Fitzwater, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jason Paul Roberts, 38, was sentenced to 63 months in federal prison after pleading guilty in October 2013 to one count of attempted transfer of obscene material to a minor. Roberts will be required to register as a sex offender. He has been in custody since his arrest in September 2012 on a related federal indictment.
According to documents filed in the case, on September 29, 2012, Roberts emailed a sexually explicit photo depicting a partially nude male to a minor girl whom he knew was under the age of 16.
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 Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Abilene Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Reymundo Alejandro Sanchez, 21, of Abilene, was sentenced today by U.S. District Judge Sam R. Cummings to 10 years in federal prison, following his guilty plea in October 2014 to one count of possession of child pornography. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to plea documents filed in the case, Sanchez used his cell phone to communicate with several persons using a mobile application called Kik, as well as through Facebook and other means. Many of those persons identified themselves to Sanchez as minors.
Sanchez engaged many of those persons in sexually oriented communication, which often included Sanchez sending one or more sexually explicit images of himself. In exchange, Sanchez sometimes received images or videos of minors engaged in sexually explicit conduct. One example of such child pornography was a video that Sanchez received on approximately April 30, 2014, which depicted a female minor, under age 18, engaged in sexually explicit conduct.
Sanchez’s pretrial release was revoked earlier this month when the Court found that he had violated conditions of his release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Abilene Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Yogurt Entrepreneur Sentenced to Five Years in Federal Prison for Intentionally Setting Fire to His Dallas BusinessRead the Press Release
DALLAS — A Dallas businessman was sentenced today for intentionally setting fire to his business, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Edgar Dalmiro Diaz, 56, was sentenced by U.S. District Judge Jane J. Boyle to 60 months in federal prison and ordered to pay $1,508,533 in restitution. Diaz pleaded guilty in January 2014 to an indictment charging one count of malicious use of explosive materials. At the conclusion of today’s hearing, Judge Boyle remanded Diaz into federal custody.
Diaz is the creator of “Three Happy Cows” yogurt. That business was located in northwest Dallas at 2750 Northhaven Drive.
According to documents filed in the case, in mid-March 2013, Diaz intentionally set fire to that building. At that time, businesses located in the building were engaged in activities that affected interstate commerce, and the fire Mr. Diaz set damaged the building and its contents.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Dallas Fire-Rescue investigated. Assistant U.S. Attorney Taly Haffar prosecuted.
Federal Grand Jury Indicts Hunt County Man on Felony Firearm OffenseRead the Press Release
DALLAS — A grand jury in Dallas has indicted a Hunt County, Texas, man on a federal firearm offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Lee Clinton Hobdy, 36, of Commerce, Texas, is charged with one count of being a convicted felon in possession of a firearm.
The indictment alleges that in late August 2014, Hobdy, a convicted felon, knowingly and unlawfully possessed a Glock, .45 caliber pistol.
Hobdy is currently in custody on related state charges. A date has not yet been set for him to make his initial appearance in federal court.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Hobdy faces a mandatory minimum 15-year sentence and a maximum sentence of life imprisonment.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Commerce Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Dallas Man Associated with Anonymous Hacking Group Sentenced to 63 Months in Federal PrisonRead the Press Release
DALLAS — Barrett Lancaster Brown, 33, who has been associated with the hacking group, Anonymous, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 63 months in federal prison and pay $890,250 in restitution, following his guilty pleas last year to three separate offenses. The announcement was made this afternoon by John Parker, Acting U.S. Attorney for the Northern District of Texas (NDTX).
In April 2014, Brown pleaded guilty to three separate offenses that essentially resolved all three criminal Indictments pending against him in the NDTX.
Pursuant to the plea agreements, Brown pleaded guilty to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant.
The Dallas office of the FBI investigated.
Grand Prairie, Texas, Real Estate Investor Sentenced to Federal Prison for Conspiring to Commit Wire FraudRead the Press Release
FORT WORTH, Texas — A local real estate investor, who operated Steelman Homes, was sentenced today for his role in a wire fraud conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Calvin Richard Ford, 45, most recently of Grand Prairie, Texas, was sentenced today by U.S. District Judge Terry R. Means to 37 months in federal prison and ordered to pay $433,849 in restitution to Fannie Mae and Freddie Mac. Ford pleaded guilty on June 18, 2014, to an Information charging one count of conspiracy to commit wire fraud. He must surrender to the Bureau of Prisons on February 9, 2015.
Ford admitted that he conspired to defraud Colorado Federal Savings Bank. According to documents filed in the case, Ford encouraged people to buy homes as investments, and he told these potential investors that he would arrange to have the homes they purchased rented and would make all of the necessary mortgage payments from the rental proceeds.
Ford purchased the homes and then sold them to investors at an inflated price. To ensure these investors could qualify for the loans they needed to purchase the homes from him, Ford gave them money from the sales proceeds that they could use as a down payment. This arrangement was intended to deceive lenders into believing the investors had sufficient assets to make a down payment. The arrangement, however, was not disclosed on the HUD-1 forms or loan applications.
After selling the homes to investors, Ford often failed to find renters and did not pay the mortgages as promised. Consequently, the mortgages went unpaid and homes went into foreclosure. Ford sold more than 80 properties to investors during the course of the scheme.
The Federal Housing Finance Agency – Office of Inspector General and the FBI investigated.
Fort Worth Chiropractor Sentenced in Heath Care Fraud CaseRead the Press Release
FORT WORTH, Texas — The owner/operator of a chiropractic clinic in Fort Worth, Texas, was sentenced this morning on a federal felony conviction stemming from her submission of false reimbursement claims to Medicare and Medicaid, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Melva Mitchell, 35, of Fort Worth, a licensed chiropractor, was sentenced by U.S. District Judge Reed C. O’Connor to 12 months and one day in federal prison and ordered to pay $126,048 in restitution to Medicare and Medicaid for making false statements relating to health care matters. Mitchell operated Best Choice Chiropractic and Wellness Center on Oakland Boulevard in Fort Worth. She must surrender to the Bureau of Prisons on February 24, 2015.
According to documents filed in the case, Mitchell submitted claims for reimbursement to Medicare and Medicaid for chiropractic services that were not performed. She obtained the Medicare and Medicaid provider information for other individuals who were licensed Occupational Therapists, and used those persons’ provider information to obtain payments from Medicare and Medicaid for occupational therapy services that were not provided or were not provided by requisitely licensed individuals. Mitchell paid one of the individuals whose provider information she used a portion of the Medicare and Medicaid reimbursements she received.
As one example of her false statements, Mitchell submitted claims to Medicare and Medicaid indicating that she performed 25 separate chiropractic manipulations in her office from March 8, 2011 to March 10, 2011. These claims were false and fraudulent because she was on vacation in Puerto Rico at the time.
The U.S. Department of Health and Human Services – Office of Inspector General, FBI, and Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Douglas Brasher prosecuted.