Northern District of Texas
Press releases recorded for this federal judicial district.
Two Men Sentenced for Roles in Conspiracy to Conduct Fraudulent Credit Card Transactions at North Texas Sam’s ClubsRead the Press Release
DALLAS — Two men who conspired together to use counterfeit credit cards to make hundreds of thousands of dollars of purchases at various Sam’s Club store locations in North Texas and Missouri, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Yesterday, Leonel Martiatu, 29, was sentenced by U.S. District Judge Barbara M. G. Lynn to serve a total of 72 months in federal prison. Martiatu pleaded guilty in August 2014 to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
Co-conspirator Alian Gamboa, 20, who pleaded guilty to the same offenses, was sentenced last month by Judge Lynn to serve a total of 60 months in federal prison.
In addition, Judge Lynn ordered that Martiatu and Gamboa pay, jointly and severally, $340,497 in restitution. Both defendants have been in custody since their arrest in March on a related federal criminal complaint. Both have ties to Miami, Florida, according to detention orders entered in the case.
According to plea documents filed, from January 17, 2014, to approximately March 4, 2014, Martiatu and Gamboa conspired together and used counterfeit access devices encoded with credit card numbers – issued to others – to make purchases at Sam’s Club locations in and near Dallas and elsewhere, including Missouri. Together, the two obtained a total of $340,497 of things of value, affected interstate commerce, and acted with the intent to defraud the persons to whom the credit cards were issued.
According to the complaint filed in the case, on March 3, 2014, the defendants were located at a motel on N. Central Expressway in Dallas. The following day, a federal search warrant was executed at their room in the motel, and numerous items purchased from Sam’s Clubs were located.
The U.S. Secret Service investigated. Special Assistant U.S. Attorney Danial Gividen prosecuted.
Tarrant County Woman Sentenced to 27 Months in Federal Prison for Theft of Government FundsRead the Press Release
DALLAS — A Keller, Texas, woman who continued to collect a family member’s Social Security retirement insurance benefits even after that family member died, was sentenced this afternoon, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeani Mulligan, 43, was sentenced by U.S. District Judge Jane J. Boyle to serve 27 months in federal prison. Mulligan, who pleaded guilty in September 2014 to one count of theft of government funds, must also pay a total of $124,825 in restitution. At the conclusion of the hearing, Judge Boyle remanded Mulligan into federal custody.
According to documents filed in the case, Mulligan admitted that she received approximately $124,825 in Social Security benefits to which she was not entitled. Specifically, from approximately December 30, 2000, to February 2013, Mulligan received Title II Retirement Insurance benefits paid to her mother-in-law, to which she knew she was not entitled. Mulligan continued to receive these funds after her mother-in-law died on December 30, 2000.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Justice Department Reaches Settlement Agreement with First United Bank over Allegations of Discrimination on the Basis of National OriginRead the Press Release
WASHINGTON – The Justice Department announced today that First United Bank, of Dimmitt, Texas, will maintain uniform pricing policies, conduct employee training and pay $140,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the Northern District of Texas. The complaint alleges that First United Bank charged higher prices on unsecured consumer loans made to Hispanic borrowers in violation of the Equal Credit Opportunity Act (ECOA).
“The Civil Rights Division is committed to ensuring that lenders price all types of loans based on appropriate credit factors and not based on prohibited factors such as national origin,” said Acting Assistant Attorney General Vanita Gupta for the Justice Department’s Civil Rights Division. “We commend First United Bank for implementing a system of loan pricing that provides objective guidance to the bank’s employees.”
The lawsuit originated from a referral by the Federal Deposit Insurance Corporation (FDIC) to the Civil Rights Division. First United Bank is a member of the FDIC.
Under the settlement, First United Bank will pay a total of $140,000 to compensate hundreds of victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. First United Bank will also maintain its revised pricing policies to ensure that the price charged for its loans is set in a non-discriminatory manner consistent with the requirements of ECOA. The agreement also prohibits the bank from discriminating on the basis of national origin in any aspect of a credit transaction.
“This district is committed to ensuring banks and other lending institutions do not discriminate against borrowers on the basis of national origin,” said Acting U.S. Attorney John Parker for the Northern District of Texas. “I join the Acting Assistant Attorney General in recognizing First United Bank’s cooperation in accomplishing this settlement that will compensate hundreds of victims of this discrimination.”
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 Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 36 lending matters under the Fair Housing Act, ECOA 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 subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publication.
The Civil Rights Division and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement 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 .
A copy of the complaint and proposed order, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department website at www.justice.gov/fairhousing.
Man Sentenced to Serve A Total of Five Years in Federal Prison in Swatting CaseRead the Press Release
DALLAS — Jason Allen Neff, 34, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 60 months in federal prison and ordered to pay $79,440 in restitution, following his guilty plea in a “swatting” case last summer, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Swatting refers to falsely reporting an emergency to a police department to cause a Special Weapons and Tactics (SWAT) response to a physical address, or making a false report to elicit an emergency response by other first responders to a specific physical address.
Neff has been in custody since FBI special agents arrested him in April 2011 on charges outlined in a related criminal complaint filed in the Northern District of Texas in September 2010.
Neff, also known as “Crazy J,” is from Omaha, Nebraska, although he was living in Jackson, Missouri at the time of his arrest. Neff pleaded guilty to one count of aiding and abetting the conspiracy to use access devices to modify telecommunications instruments and to make unauthorized access to protected telecommunications computers and one count of obstruction by retaliating against a witness, victim or informant.
According to documents filed in the case, Neff, along with previously charged and convicted co-conspirators Guadalupe Martinez, Stuart Rosoff, Jason Trowbridge, Chad Ward, Matthew Weigman, Angela Roberson and others, were members of, and participated in, telephone chat/party lines in which they made, or facilitated the making of, swatting 911 calls. They concealed the true caller ID and made false reports of violent crimes to elicit a police SWAT response to the targeted members of the telephone chat/party line, their family members, and associated persons.[1]
Neff participated in multiple telephone party line chat groups (party lines) that conspirators and thousands of other callers frequented. Participants in these party lines generally used pseudonyms or nicknames to protect their identities, and they would often be rude and obnoxious to antagonize other party line participants, other conspirators and their families.
Neff, along with Martinez, Rosoff and Weigman, according to the indictment, were “phone phreakers,” using social engineering or subterfuge to acquire sensitive information from telephone service providers. That sensitive information enabled them to exploit telephone network computer service by obtaining subscriber information; altering billing information and service plans; redirecting, changing service charges, and discontinuing telephone service; monitoring or taping telephone lines; and obtaining telephone company security policies and procedures.
In May 2006, Neff obtained publicly available voter information about another party line member and provided it to co-conspirator Roberson so she could repeat the information in the party line. Neff knew the information could be used for harassment.
A few days later, Neff obtained identifying information about another party line member with whom co-conspirator Roberson was upset. Neff listened in on a three-way phone call made from a private room on the party line where co-conspirator Rosoff used information that Roberson provided in order to social engineer an SBC employee and obtain the caller’s current phone number and address. That information was verified and used to prompt a neighbor of the caller to respond to a false request for assistance.
In January 2007, Neff confronted a party line member, “SP,” about her providing what he claimed was misleading and inaccurate information to the FBI regarding his ownership of a party-line related website, which he did not own, and his being a member of the group that had previously swatted her. Neff threatened her on the party line, stating, “snitches get stitches.” Neff made the threats to intimidate SP and to retaliate against her for providing information about him to the FBI.
The FBI investigated the case. Assistant U.S. Attorney C.S. Heath prosecuted.
[1] Martinez sentenced in March 2008 to 30 months; Rosoff sentenced in May 2008 to 60 months; Trowbridge sentenced in May 2008 to 60 months; Ward sentenced in May 2008 to 60 months; Weigman sentenced in June 2009 to 135 months; and Roberson sentenced in July 2008 to 30 months.
Last Defendant Pleads Guilty in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Seven defendants charged with various offenses stemming from their respective roles in a methamphetamine distribution conspiracy have pleaded guilty, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Today, the last defendant charged in the case entered a guilty plea. Flor Angelica Bustillos, 26, of Phoenix, Arizona, pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of unlawful use of a communication facility. She faces a statutory maximum penalty of four years in federal prison and a $250,000 fine.
Last month, Gregorio Hernandez-Perez, 27, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a maximum statutory penalty of life imprisonment, a $10 million fine and a life term of supervised release.
According to plea documents filed in the case, on July 16, 2014 search warrants were executed at multiple locations in Lubbock County, including, Hernandez-Perez’s residence in Slaton, Texas, after law enforcement in Lubbock, Texas, seized 4.47 kilograms of methamphetamine attributable to Hernandez-Perez. During the execution of the search warrant, law enforcement seized surveillance cameras, drug ledgers, drug trafficking paraphernalia, wire transfer receipts, and a handgun. During the arrest of Hernandez-Perez, an additional handgun was found in his possession.
Each of the four below-listed defendants pleaded guilty in October 2014 to one count of possession with intent to distribute methamphetamine and aiding and abetting. Each faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Haylie Nicole Moreno, 26, of Lubbock
Jesus Adrian Murillo-Angulo, 21, of Lubbock
Michael Alvarado Garcia, 42, of Lubbock
Miguel Angel Ruiz-Cabanillas, 30, of Lubbock
Edward Adam Rodriguez, 23, of Lubbock, pleaded guilty on October 31, 2014, to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a statutory maximum penalty of life in federal prison and a $250,000 fine.
Natividad Gumaro Lopez-Guzman, 48, of Phoenix, pleaded guilty October 17, 2014, to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a statutory maximum penalty of life in federal prison and a $10 million fine.
Presentence investigation reports have been ordered for all defendants; sentencing dates will be set after the completion of those reports.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Lubbock County Sheriff’s Office, Lubbock Police Department, Texas Department of Public Safety, United States Border Patrol, Department of Homeland Security, and Maricopa County Sheriff’s Office investigated.
Assistant U.S. Attorney Justin Cunningham is prosecuting the case.
Defendants Sentenced in Cocaine Distribution Conspiracy CaseRead the Press Release
LUBBOCK, Texas — Nine defendants convicted for their respective roles in a large cocaine distribution conspiracy that operated in Lubbock, Odessa, and Borger, Texas, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The last defendant to be sentenced in the case, Javier Lopez Lujan, 47, most recently of Odessa, was sentenced this morning by U.S. District Judge Sam R. Cummings to 120 months in federal prison.
Other defendants were sentenced as follows:
Manuel Carrillo Ortiz, 38, 46 months
Martin Cardona Gutierrez, 46, 168 months
Refugio Navarrete Gutierrez, 34, 70 months
Efren Fabela Lopez, 34, 6 months
Jerardo Salcedo Garcia, 27, 37 months
Ismael Velasco, 36, 48 months
Israel Velasco, 36, 70 months
During the investigation, law enforcement seized approximately 15 kilograms of cocaine, $200,000.00 in drug proceeds, and 10 firearms in Lubbock, Odessa, and Borger.
The investigation was conducted by the Lubbock County Sheriff’s Office, Ector County Sheriff’s Office, Midland Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the U.S. Border Patrol.
Assistant U.S. Attorney Justin Cunningham prosecuted.
Dallas Man Known as Baja Bandit Sentenced to 35 Years in Federal Prison for Committing Armed Robberies of Local Insurance BusinessesRead the Press Release
DALLAS — A Dallas man, who admitted committing the armed robberies of insurance companies in Dallas last year, received a lengthy federal prison sentence today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Michael Dewayne Cleveland, 31, was sentenced this morning by U.S. District Judge Ed Kinkeade to 420 months (35 years) in federal prison. Cleveland pleaded guilty in June 2014 to four of seven counts charged in an indictment returned by a federal grand jury in Dallas in December 2013. Specifically, Cleveland pleaded guilty to two count of interference with commerce by robbery and two counts of carrying or possessing a firearm during and in relation to a crime of violence.
According to plea documents filed in the case, Cleveland admitted entering a Baja Insurance company office in Dallas on September 3, 2013, approaching an employee with a gun drawn and demanding money. He admitted stating, “Tell me where it’s at or I’m gonna kill you.” The employee, in fear for her life, pointed to a desk drawer. Cleveland, later dubbed the “Baja Bandit,” took the money from the drawer and left the location.
Cleveland also admitted entering a State Farm Insurance company office in Dallas on September 18, 2013, pulling out a gun, pointing it at employees and demanding money. Two employees, in fear for their lives, complied with Cleveland’s demands. Cleveland took money and credit cards from the business and fled.
Baja Insurance lost money as a direct result of the robbery, temporarily closed its office and lost several employees who feared for their safety. The State Farm office also lost money as a direct result of the robbery, temporarily closed its office and the branch made less in overall monthly proceeds. The robberies had a direct effect on both company’s revenue and commerce.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated the case. Assistant U.S. Attorney Taly Haffar prosecuted.
North Texas Man Sentenced to 87 Months in Federal Prison for Role in Stolen Identity Refund Fraud (SIRF) ConspiracyRead the Press Release
DALLAS — A North Texas man who pleaded guilty to his role in a stolen identity refund fraud conspiracy was sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Tonderai Sakupwanya was sentenced to 87 months in federal prison and ordered to pay more than $2.6 million in restitution. Sakupwanya, who is in custody, pleaded guilty in May 2014 to one count of theft of public funds.
Co-defendant Reminico Zhangazha, also in custody, pleaded guilty to the same offense and is awaiting sentencing. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could be ordered.
The plea agreements with the government note that the defendants will forfeit the following property seized by law enforcement in May 2012 during the investigation of this case: $10,613 cash seized from Zhangazha’s vehicle; $93,513 cash from Villa Piana Luxury Apartments on Noel Road in Dallas; and $4,500 from a residence on Spring Mountain in Plano, Texas.
According to the factual resumes filed in the case, Zhangazha and Sakupwanya engaged in a scheme to defraud the Internal Revenue Service (IRS) by obtaining stolen tax refunds that were generated by e-filing false and fraudulent income tax returns. They rented private mailboxes in the names of aliases by using forged United Kingdom passports. They then established bank accounts using the alias names and mailing addresses acquired at the private mailboxes. During the course of the scheme, Zhangazha used the aliases of “Martin V. Masters” and “Roy Daniel Black.” Sakupwanya used the aliases of “Webster G. Rice,” “Floyd Robbins,” and “Floyd Roberts,” during the scheme, according to the factual resume.
According to the factual resumes, the Forms 1040 directed the IRS to electronically deposit the refunds into bank accounts the defendants established. Alternatively, the Forms 1040 directed refunds to be issued by a treasury check and mailed to an address under the control of the defendants. The income tax returns also directed refunds to accounts established at a third-party financial services company, such as EPS Financial, that would enable them to issue a check containing the tax refund. These third party checks and the treasury checks were deposited into bank accounts the defendants established. After the checks were deposited, or the tax refunds were electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes note that the cash, mentioned above, which was seized from the defendants during the investigation, was obtained by them as a result of their scheme.
The case was investigated by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Dallas County Man Sentenced to 108 Months in Federal Prison for Role in Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of DeSoto, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 108 months in federal prison and ordered to pay $4,973,046 in restitution for his role in a staged accident fraud scheme, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in March 2014 to one count of mail fraud and one count of engaging in illegal monetary transactions. According to the plea agreement in the case, Nelson agreed to forfeit several vehicles, a motor home, a boat and trailer and real estate in Duncanville and Cooper, Texas.
According to the factual resume filed in the case, beginning in 2005 and continuing through 2012, Nelson engaged in a scheme to defraud automobile insurance companies by fabricating and submitting false and fraudulent claims for damage to technical equipment damaged in fictitious road accidents.
As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they inadvertently damaged a piece of equipment. Typically, the individual would falsely report that while driving, he or she had either rear-ended a trailer pulling equipment, or swerved to avoid something in the road and collided with equipment on the side of the road. Nelson would instruct the individual on how to make the telephone call to the insurance company.
Nelson then prepared and submitted the claims for property damage in the name of a “DBA” he created. The claim would include a photo of the equipment and a fictitious repair estimate that Nelson prepared. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” . The claimed repair expenses would usually be from $16,000 to $19,000.
Nelson opened private mailboxes in states including Minnesota, Missouri, Washington, Arizona, Connecticut and Louisiana to receive the insurance checks. The mailboxes were opened under an assumed business name that Nelson used as the owner of the damaged equipment in the claims. Nelson also used the addresses of two warehouses on Explorer Street in Dallas, and directed that mail received at the private mailboxes be forwarded to one of those two addresses.
The cumulative total of the insurance claims prepared and submitted to insurance companies by Nelson from 2005 to 2012 totaled approximately $5 million.
This investigation was brought to the attention of federal law enforcement by the National Insurance Crime Bureau (NICB) and Farmers Insurance Group, Special Investigations. The FBI, Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Christopher Stokes prosecuted.
Convicted Dallas Lawyer Pleads Guilty to Additional Mail Fraud ChargeRead the Press Release
DALLAS — Andrew Lee Siegel, a Dallas attorney, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to Count Two of a Superseding Information charging mail fraud, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In July 2014, Siegel pleaded guilty to one count of felony criminal infringement of a copyright – Count One of the Superseding Information.
Siegel, 54, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, or twice any pecuniary gain to the defendant or loss to the victim, on the mail fraud conviction and five years and a $250,000 fine on the criminal infringement conviction. Restitution may be ordered. Siegel remains on bond pending sentencing, which is set for April 22, 2015, before U.S. District Judge Ed Kinkeade.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2 million of common stock shares by Dynasty. In June 2013, Siegel became the registered agent and manager of Vanguard Spirits, LLC, which was established for the purpose of distilling, branding and marketing “Vanguard Vodka.”
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
On June 24, 2013, Siegel fraudulently disbursed $210,000 from a client’s (EP) escrow account to use as part of a legal settlement payment to owners of Dynasty Spirits. Those owners were the victims in Siegel’s infringement conviction. Siegel continued to fraudulently disburse funds from EP’s escrow account through November 2014.
On May 21, 2014, Siegel reimbursed EP by fraudulently and secretly disbursing $285,310 of Vanguard Spirits investor funds. Siegel concealed this fraudulent disbursement of Vanguard investor funds from Vanguard investors and management.
When Siegel pleaded guilty to Count One in July 2014, he made no admission or reference to his fraudulent disbursement of funds from both EP’s escrow account and from Vanguard Spirits’ investor funds.
The FBI is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Chiropractor Sentenced in Health Care Fraud CaseRead the Press Release
FORT WORTH, Texas — A local chiropractor, who was convicted at trial on felony offenses stemming from his involvement in a health care fraud case, was sentenced this morning, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
Dr. Abbas Zahedi, 49, of Carrollton, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to serve 145 months in federal prison and ordered to pay approximately $2.4 million in restitution. He was convicted at trial in June 2014 on all counts of a superseding indictment charging one count of conspiracy to commit health care fraud, five counts of health care fraud and four counts of aggravated identity theft. Dr. Zahedi, who has been in custody since his conviction, owned and operated DFW Rehab & Diagnostics.
Five other defendants convicted in the case have also been sentenced.
Reginald Guy, 44, of Arlington, Texas, was sentenced to serve 156 months in federal prison and ordered to pay approximately $2.4 million in restitution. He was convicted at trial on the same offenses as Dr. Zahedi. Guy was a factory worker in Arlington, and from approximately 2003 until November 2009, when his employment was terminated, he served as a union representative.
Guy used that union position to recruit and refer his co-workers to DFW Rehab & Diagnostics, which was operated from the office of Metroplex DFW Sports Rehab Center in Arlington, and then later from a stand-alone location in Grand Prairie, Texas. In exchange for monthly kickbacks, work excuse notes and a variety of prizes, the workers agreed to allow their insurance companies to be billed for services they did not receive.
From 2009 to 2012, Dr. Zahedi, Guy, and their four codefendants conspired to submit health insurance claims to Blue Cross Blue Shield of Texas (BCBS) and other insurers for services not rendered. These four coconspirators, James Sterns, Tina Perkins, Donna Harris and Gregory Wattron, cooperated with the government in the investigation and testified against Zahedi and Guy at their trial.
Sterns, 50, of DeSoto, Texas, was sentenced to 10 months in federal prison and ordered to pay approximately $2.2 million in restitution. Sterns owned and operated Metroplex. In early 2010, Sterns hired Guy to be the office manager of Metroplex, where he worked in that position to mid-2011, shortly before the clinic closed. In March or April 2011, Dr. Zahedi hired Guy to work as a consultant at the clinic’s Grand Prairie location. After Guy began working for Dr. Zahedi, Guy helped transfer patients and patient information to Dr. Zahedi, and the fraudulent referral and billing scheme continued.
Perkins, 43, of Dallas, was sentenced to 10 months in federal prison and was ordered to pay approximately $2.4 million in restitution. Perkins worked as the biller and office consultant for Dr. Zahedi and was responsible for submitting claims to insurance companies.
Perkins’ sister-in-law, Donna Harris, 43 of Haltom City, Texas, was sentenced to eight months in federal prison and was ordered to pay approximately $2 million in restitution. Harris permitted the clinic, in exchange for cash payments, to submit claims to BCBS for services purportedly performed by Dr. Zahedi and Wattron, when in fact she received no treatment. Then, in early 2011, Dr. Zahedi hired Harris to be the office manager at the Grand Prairie location. There, she continued to allow Dr. Zahedi to submit claims under her name to BCBS for services that were not performed. Harris also permitted Dr. Zahedi to submit claims to BCBS for Harris’ immediate and extended family members for services they did not receive.
Wattron, 56, of Grapevine, Texas, was sentenced to six months in federal prison and was ordered to pay approximately $1.3 million in restitution. He worked as an occupational therapist at the clinic from approximately 2008 until August 2011. Wattron agreed to allow Sterns and Dr. Zahedi bill insurance companies for occupational therapy that he did not perform.
The FBI and the Office of Personnel Management - Office of Inspector General investigated. Assistant U.S. Attorney Nancy Larson and Special Assistant U.S. Attorney Douglas Brasher prosecuted the case.
Chiropractor Sentenced in Health Care Fraud CaseRead the Press Release
FORT WORTH, Texas — A local chiropractor, who was convicted at trial on felony offenses stemming from his involvement in a health care fraud case, was sentenced this morning, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
Dr. Abbas Zahedi, 49, of Carrollton, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to serve 145 months in federal prison and ordered to pay approximately $2.4 million in restitution. He was convicted at trial in June 2014 on all counts of a superseding indictment charging one count of conspiracy to commit health care fraud, five counts of health care fraud and four counts of aggravated identity theft. Dr. Zahedi, who has been in custody since his conviction, owned and operated DFW Rehab & Diagnostics.
Five other defendants convicted in the case have also been sentenced.
Reginald Guy, 44, of Arlington, Texas, was sentenced to serve 156 months in federal prison and ordered to pay approximately $2.4 million in restitution. He was convicted at trial on the same offenses as Dr. Zahedi. Guy was a factory worker in Arlington, and from approximately 2003 until November 2009, when his employment was terminated, he served as a union representative.
Guy used that union position to recruit and refer his co-workers to DFW Rehab & Diagnostics, which was operated from the office of Metroplex DFW Sports Rehab Center in Arlington, and then later from a stand-alone location in Grand Prairie, Texas. In exchange for monthly kickbacks, work excuse notes and a variety of prizes, the workers agreed to allow their insurance companies to be billed for services they did not receive.
From 2009 to 2012, Dr. Zahedi, Guy, and their four codefendants conspired to submit health insurance claims to Blue Cross Blue Shield of Texas (BCBS) and other insurers for services not rendered. These four coconspirators, James Sterns, Tina Perkins, Donna Harris and Gregory Wattron, cooperated with the government in the investigation and testified against Zahedi and Guy at their trial.
Sterns, 50, of DeSoto, Texas, was sentenced to 10 months in federal prison and ordered to pay approximately $2.2 million in restitution. Sterns owned and operated Metroplex. In early 2010, Sterns hired Guy to be the office manager of Metroplex, where he worked in that position to mid-2011, shortly before the clinic closed. In March or April 2011, Dr. Zahedi hired Guy to work as a consultant at the clinic’s Grand Prairie location. After Guy began working for Dr. Zahedi, Guy helped transfer patients and patient information to Dr. Zahedi, and the fraudulent referral and billing scheme continued.
Perkins, 43, of Dallas, was sentenced to 10 months in federal prison and was ordered to pay approximately $2.4 million in restitution. Perkins worked as the biller and office consultant for Dr. Zahedi and was responsible for submitting claims to insurance companies.
Perkins’ sister-in-law, Donna Harris, 43 of Haltom City, Texas, was sentenced to eight months in federal prison and was ordered to pay approximately $2 million in restitution. Harris permitted the clinic, in exchange for cash payments, to submit claims to BCBS for services purportedly performed by Dr. Zahedi and Wattron, when in fact she received no treatment. Then, in early 2011, Dr. Zahedi hired Harris to be the office manager at the Grand Prairie location. There, she continued to allow Dr. Zahedi to submit claims under her name to BCBS for services that were not performed. Harris also permitted Dr. Zahedi to submit claims to BCBS for Harris’ immediate and extended family members for services they did not receive.
Wattron, 56, of Grapevine, Texas, was sentenced to six months in federal prison and was ordered to pay approximately $1.3 million in restitution. He worked as an occupational therapist at the clinic from approximately 2008 until August 2011. Wattron agreed to allow Sterns and Dr. Zahedi bill insurance companies for occupational therapy that he did not perform.
The FBI and the Office of Personnel Management - Office of Inspector General investigated. Assistant U.S. Attorney Nancy Larson and Special Assistant U.S. Attorney Douglas Brasher prosecuted the case.
U.S. Attorney for Northern District of Texas Announces ResignationRead the Press Release
DALLAS, Texas —Sarah R. Saldaña has announced her resignation as United States Attorney for the Northern District of Texas, effective immediately. She was nominated by President Barack Obama to be Assistant Secretary of the U.S. Department of Homeland Security on August 28, 2014 and was confirmed by the United States Senate on December 16, 2014. The President signed her commission last Thursday, December 18, and the Honorable Chief District Judge Jorge Solis administered the oath of office to her this afternoon.
“I am overwhelmed by the outpouring of good wishes and kind remarks from the North Texas law enforcement and citizen community,” Saldaña said. “I have never had a greater privilege than to serve this community as United States Attorney. And at this particular time, when the perils faced by law enforcement are heightened even beyond that which they face every day, I offer my utmost gratitude and admiration for the extraordinary service provided by police departments, sheriff’s offices, and all state and federal officers everywhere, particularly those with whom I have served side-by-side for the last 10 years in the 100 counties of this district.”
Saldaña has served as United States Attorney for the Northern District of Texas since September 29, 2011. Prior to that appointment, she served as Deputy Criminal Chief of the District’s Major Fraud/Public Corruption Section, having joined the office in 2004. As United States Attorney, Saldaña has directed some of the most high-profile and successful prosecutions in the country. Moreover, faced with significant challenges during her tenure, including hiring freezes, an unprecedented sixteen-day government shutdown, and new Department of Justice policies aimed at managing limited resources on the most important federal law enforcement priorities, Saldaña’s office actually increased the number of cases prosecuted by 51% from 2011 to 2014.
Most recently, Saldaña served on the Attorney General’s Advisory Committee as one of 17 United States Attorneys appointed by the AG to advise him on policy, management and operational issues affecting the Department of Justice.
From 1985 to 1999, Saldaña was an Attorney at Haynes and Boone, LLP and Baker Botts LLP. She clerked for Judge Harold Barefoot Sanders in U.S. District Court for the Northern District of Texas from 1984 to 1985. From 1974 to 1981, she worked for several federal agencies including the Equal Employment Opportunity Commission, the Department of Labor, and the Department of Housing and Urban Development. She received her J.D. from Southern Methodist University and her B.A. from Texas A&I University.
Upon Saldaña’s departure, First Assistant United States Attorney John R. Parker will be appointed Acting United States Attorney until a new United States Attorney is selected.
The United States Attorney’s Office for the Northern District of Texas has prosecutive responsibility over 100 counties in the northern and western areas of Texas, encompassing nearly 96,000 square miles and a population in excess of seven million. The District is headquartered in Dallas and has staffed offices in Fort Worth, Lubbock, Abilene, and Amarillo, Texas.
Former Youth Minister Indicted on Child Pornography ChargesRead the Press Release
DALLAS — A former youth minister in Garland, Texas, was indicted by a federal grand jury in Dallas yesterday on child pornography offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Derek Hutter, 37, was charged with one count of attempted production of child pornography and one count of receipt of child pornography. He was arrested on those charges and entered a plea of not guilty before U.S. Magistrate Judge Paul D. Stickney on December 18, 2014.
Hutter worked as a youth minister at the South Garland Baptist Church.
The indictment alleges that on approximately August 14, 2014, Hutter sent an email to Jane Doe #1, a minor girl, requesting she take sexually explicit photos of herself and text them to him. The indictment further alleges that on approximately September 14, 2014, Hutter received images of child pornography on his email account.
An indictment is an accusation by a federal grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the attempted production count is not less than 15 or more than 30 years in federal prison and not less than five or more than 20 years on the receipt count. In addition, each count carries a maximum statutory fine of $250,000 and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS) and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Lubbock Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 54-year-old Lubbock man appeared in federal court today and pleaded guilty to one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roberto Garcia, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Garcia used a computer at his residence to, among other things, search for images and videos of child pornography. In the course of his searches, Garcia located, downloaded and viewed numerous images and videos constituting child pornography. He saved the material onto the computer’s hard disk drive. Some of the numerous images of child pornography that Garcia saved involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Department of Homeland Security, Homeland Security Investigations, investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Lubbock County Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 27-year-old Shallowater, Texas, man appeared in federal court today and pleaded guilty to one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Michael Wayne Brown, who is in custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Brown was taken into custody last month during the investigation of the case, and remains in custody pending sentencing.
According to documents filed in the case, Brown owned various telephones and electronic devices, and he stored pornographic images on some of them, including an 8GB Sandisk memory card. On that memory card, Brown stored numerous images of child pornography, some of which involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Dallas-Based Physician and Home Health Agency Nursing Director Sentenced in $3 Million Medicare Fraud ConspiracyRead the Press Release
DALLAS – A physician and a home health agency manager were sentenced today for their roles in a $3 million Medicare fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were sentenced today by U.S. District Judge Ed Knikeade to 120 months and 48 months respectively, in federal prison. In May 2014, Megwa and Eghobor were each convicted on one count of conspiracy to commit health care fraud. In addition, Mega was convicted on three counts of health care fraud and four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The home health care convictions related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile, 56, of Irving, Texas, pleaded guilty in 2013 to conspiracy to commit health care fraud and is scheduled to be sentenced on January 14 2015.
From approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mindy Sauter and Michael Elliott of the Northern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Convicted Fraudster Indicted for 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, was indicted yesterday for failing to self-surrender to the Bureau of Prisons to serve that sentence, announced U.S. Attorney Sarah R. Saldaña.
Michael David Carroll, 39, 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.
Carroll was sentenced on March 17, 2014, by U.S. District Judge David C. Godbey to 70 months in federal prison and ordered to pay more than $1.4 million in restitution. He was ordered to report to federal prison before 11:00 a.m. on Monday, May 14 2014, to begin serving that sentence.
According to the indictment, 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. Carroll, however, failed to surrender for service of sentence. On September 17, 2014, Judge Godbey ordered that an arrest warrant be issued for Carroll.
If convicted, the maximum statutory penalty for this offense is 10 years in federal prison and a $250,000 fine. The provisions of 18 U.S.C. § 3146 require that any term of imprisonment imposed on Carroll for failure to surrender for service of sentence must be served consecutively to his 70-month sentence of imprisonment for investor fraud ordered by Judge Godbey in March of 2014.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis is prosecuting.
Wichita Falls Man Sentenced to 63 Months in Federal Prison for Using Stolen Personal Identity Information and Fabricated Documents to Defraud the IRS of Tax RevenueRead the Press Release
WICHITA FALLS, Texas — A local man was sentenced today to 63 months in federal prison and ordered to pay approximately $114,000 in restitution to the Internal Revenue Service (IRS), for using stolen personal identity information and fabricated documents to defraud the IRS of tax revenue, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Bobby J. Hicks, Jr., who has been in custody since his arrest in June 2014, pleaded guilty in August 2014 to one count of wire fraud. According to information presented in today’s hearing, Hicks is 49-years-old, and according to information presented at his earlier detention hearing, he is most recently a resident of Wichita Falls, Texas.
Hicks ran his scheme, according to the factual resume, from 2009 through approximately mid-February 2011. During that time, according to the document, Hicks submitted 15 fraudulent returns, eleven of which were submitted electronically. The total refund amount claimed in the 15 fraudulent returns was $1,541,424. The total amount of refunds actually issued by the IRS was $198,394.44, of which $114,396.44 was actually transferred.
In one instance, according to the factual resume, in January 2010, Hicks submitted a Form 1040EZ income tax return, claiming a $138,806 refund, in the name of another individual whom Hick had met in 2009 in Wichita Falls and had hired to do day labor. In connection with that labor, the individual had provided Hicks his social security number, but he did not authorize Hicks to use it or to submit a tax return in his name.
It was noted in Hicks’ detention hearing earlier this year, that as part of his scheme, he stole the identities of family members, including the identity of his deceased mother.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Brandon McCarthy prosecuted.
Pimp Arrested by DPS in Wilbarger County Is Sentenced to 41 Months in Federal Prison for Transporting A Woman from Wyoming and Colorado to Texas to Engage in ProstitutionRead the Press Release
WICHITA FALLS, Texas — A man who admitted transporting a woman from Wyoming and Colorado to Texas to engage in prostitution was sentenced this morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Matthew Ross Cummings, 24, most recently of Aurora, Colorado, was sentenced to 41 months in federal prison by U.S. District Judge Reed C. O’Conner. One week before his trial was to begin, Cumming pleaded guilty to an indictment charging one count of transportation of an individual to engage in prostitution.
According to documents filed in the case, on March 20, 2013, a Trooper with the Texas Department of Public Safety (DPS) initiated a traffic stop of a Budget rental truck travelling eastbound on Highway 287 in Wilbarger County. The Trooper also noticed that the rental truck was travelling in unison with a silver Chevrolet sedan. The driver of the rental truck was identified as Cummings. He was arrested after controlled substances were found in the passenger and storage areas of the truck.
An iPad located in the rental truck contained a journal written by a female who indicated in the journal that she was a prostitute and Cummings was her pimp. When confronted, Cummings admitted he was a pimp and made all the money. He also admitted that the Budget truck was rented on March 19, 2013 in Denver, Colorado, and was due to be returned to Budget in Houston, Texas on March 25, 2013.
Another DPS Trooper located the silver sedan travelling east in Clay County, Texas. After a traffic stop, the female passenger said she was travelling with Cummings and the car she was travelling in belonged to Cummings, who was driving a Budget rental truck. She confirmed that she wrote the journal that law enforcement found on the iPad. She advised that she had worked as a prostitute for Cummings for approximately one year and that she gave Cummings all of the money she earned.
The female said that she and Cummings went on trips to make money. Cummings admitted that on February 6, 2013, he checked into a hotel in Casper, Wyoming, and that same day, created an online advertisement for the female’s prostitution services in Casper. That advertisement was renewed/modified approximately 10 times from February 6 – February 10, 2013. The female’s prostitution services were offered in Casper as recently as March 17, 2013.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
Irving, Texas, Man Sentenced to 132 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — An Irving, Texas, man was sentenced this morning by U.S. District Judge Sam A. Lindsay to 132 months in federal prison on a child pornography conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
Benito Agramon Castro, 50, pleaded guilty in February 2014 to one count of possession of prepubescent child pornography. He has been in custody since his arrest in December 2013.
According to documents filed in the case, an officer with the Plano Police Department, working online in an undercover capacity to identify persons participating in the distribution of child pornography and the sexual exploitation of children through peer-to-peer file sharing, identified a specific IP address that was making images of child pornography available for sharing. That IP address made approximately 559 files available for download to the undercover officer. The majority of the file names were indicative of child pornography.
The investigation revealed that the IP address belonged to Castro. A federal search warrant was executed at Castro’s residence on December 11, 2013, and child pornography was found on his computer as well as on a flash drive and on compact discs. Castro admitted that some of the images and videos he possessed depicted sadistic and/or violent content and some of the files depicted infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Plano Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
San Angelo Man Sentenced to 327 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
LUBBOCK, Texas — A San Angelo, Texas, resident who was arrested in March 2014 following a traffic trop in San Angelo, was sentenced last week by U.S. District Judge Sam R. Cummings to 327 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Steve Cuellar Zuniga, 48, pleaded guilty in July 2014 to one count of possession with intent to distribute 500 grams or more of methamphetamine.
According to the factual resume filed in the case, on March 12, 2014, an officer with the San Angelo Police Department conducted a traffic stop of an extended cab pickup truck at the intersection of Howard and Guadalupe Streets in San Angelo. Zuniga, the passenger in that vehicle was arrested on outstanding city arrest warrants.
When placing Zuniga under arrest, the officer asked Zuniga if he had needles or items that would injure him. Zuniga replied, “It’s all bagged up.” The officer located a plastic bag containing 29 gross grams of suspected methamphetamine in Zuniga’s right front pants pocket. A search of the pickup truck yielded 738 gross grams of suspected methamphetamine and a Smith and Wesson .40 caliber semi-automatic pistol.
Subsequent examination by the Texas Department of Public Safety (DPS) Crime lab revealed Zuniga possessed 646 net grams of methamphetamine – a quantity consistent with distribution, as opposed to personal use.
The San Angelo Police Department, Texas DPS and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Lubbock Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 43-year-old Lubbock, Texas, resident appeared in federal court yesterday and pleaded guilty to one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Eduardo Cantillo, who is in custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Investigation into Drug Activity at Northwest Dallas Club Results in Federal Indictments and Arrests of 12 Defendants on Conspiracy and Drug Distribution ChargesRead the Press Release
DALLAS — An investigation that began early this summer by the Dallas Police Department into drug activity at a club in northwest Dallas has resulted in seven federal indictments, which were returned by a federal grand jury last week and unsealed today, charging 15 individuals with conspiracy and drug distribution offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Twelve of the 15 defendants charged federally were arrested at various locations in North Texas, including at and near the club, which is known as Eternal Eden Afterhours, located at the Jaguars Club on Reeder Road. Firearms and drugs were seized during the arrests.
Defendants indicted are listed below; those marked with an “*” are in custody:
*Jose Antonio Canelo, a/k/a “Tony,” 31
*Joshua Lawrence Saddler, a/k/a “Cowboy,” 25
Canelo and Saddler are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Canelo and Saddler conspired together and with others to possess with the intent to distribute and to distribute a mixture or substances containing cocaine, a Schedule II controlled substance.
*Hunter Lee Foster, 23
Rosa Aidee Gomez Salinas, a/k/a “Jade,” 21
Foster and Salinas are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Foster and Salinas conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 3,4-methylenedioxy-N-ethylcathinone (ethylone), a positional isomer of butylone, a Schedule I controlled substance.
*Doniel Dominique Hall, 25
*Charles Michael Scott, a/k/a “T Scott,” and “Carlos,” 24
*Debahni Nora Gorandinary, 19
Shelby Jean Hunter Owen, 19
Hall, Scott, Gorandinary and Owen are each charged with two counts of conspiracy to distribute a controlled substance. In addition, Hall is charged with one count of possession with intent to distribute a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime. If convicted, conspiracy count one carries a maximum statutory penalty of 20 years in federal prison and a $1 million. Conspiracy count two carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine. The possession with intent to distribute count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The firearm count carries a maximum statutory penalty of seven years in federal prison and a $250,000 fine. This indictment alleges that beginning on approximately August 1, 2014, the four defendants conspired together and with others to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of ethylone, a positional isomer of butylone, a Schedule I controlled substance and a mixture or substance containing a detectable amount of Alprazolam, a Schedule IV controlled substance. It further alleges that on November 4, 2014, Hall possessed, with intent to distribute, methamphetamine and possessed a firearm in relation to and in furtherance of the drug trafficking crime.
*Jorge Luis Rios, Jr., 31
*Jose Manuel Hernandez, 23
Rios and Hernandez are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Rios and Hernandez conspired together and with each other to possess with intent to distribute and to distribute a mixture of substance containing a detectable amount of cocaine, a Schedule II controlled substance.
*Rachel L. Lucero, 27
Lucero is charged with one count of conspiracy to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. If convicted, the conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million and the possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Lucero conspired with others to possess with the intent to distribute methamphetamine, a Schedule II controlled substance. It further alleges that on October 17, 2014, Lucero possessed methamphetamine with the intent to distribute.
India Small, 28
*Karina Shcherb, 22
Small and Shcherb are each charged with one count of conspiracy to distribute heroin. In addition, Small is charged with two, and Shcherb with one, counts of possession with intent to distribute heroin. If convicted on the conspiracy count, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Each drug possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Small and Shcherb conspired together and with others to distribute heroin. It further alleges that on August 22, 2014 and August 29, 2014, Small possessed heroin with the intent to distribute it. It also alleges that on August 22, 2014, Shcherb possessed heroin with the intent to distribute it.
*Christopher Chance Valdez, 20
*Bridget Elyse Tolle, 19
Valdez and Tolle are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Valdez and Tolle conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 25C-NBOMe and 25I- NBOMe, a Schedule I controlled substance, which is commonly known as N-bomb, Smiles, 25I, and 25C.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The Dallas Police Department Narcotics and Homicide Unit investigated.
Assistant U.S. Attorney Phelesa Guy is prosecuting.
Dallas Woman Who Stole A Registered Nurse’s Identity and Used That Identity to Fraudulently Obtain Employment at Eight Metroplex Hospice Companies Faces up to 15 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas woman who stole the identity of a registered nurse and used that identity to work at several Dallas-Fort Worth (DFW) area hospice companies, appeared in court this morning before U.S. Magistrate Judge David L. Horan, and pleaded guilty to a federal offense stemming from that conduct, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jada Necole Antoine, 33, pleaded guilty to one count of fraud in connection with means of identification. She faces a maximum statutory penalty of 15 years in federal prison, a $250,000 fine and restitution. Antoine has been in custody since her arrest this past summer in Georgia on a related criminal complaint filed in May 2014 in the Northern District of Texas. She is scheduled to be sentenced on March 16, 2015.
According to documents filed in the case, Antoine, who was not licensed as a physician, registered nurse, or other health care provider, stole a registered nurse’s driver’s license and social security card, and used that victim’s driver’s license, social security number, and other means of identification to obtain employment at eight different hospice companies in the DFW area, including Heart to Heart Hospice of Texas, Odyssey Healthcare GP, LLC, Community Hospice of Texas, Elysian Hospice, Hospice Pharmacy Solutions, New Century Hospice, Keystone Custom Care Hospice, and Silverado Senior Living Hospice.
Having fraudulently obtained employment as a registered nurse at Heart to Heart and Odyssey, Antoine had direct responsibility for patient care. She submitted documents to Heart to Heart and Odyssey that falsely indicated that care was provided to patients under her supervision by a registered nurse, namely the registered nurse whose identification she had stolen.
Antoine’s false statements, theft of the victim’s identity, and other fraudulent activity caused Heart to Heart, Odyssey and other hospice agencies to submit false claims for, and obtain reimbursement from, Medicare and Medicaid for hospice services provided to Medicare beneficiaries and Medicaid clients. From approximately January 2009 through April 20, 2012, approximately $2.3 million in hospice claims were submitted to Medicare for services purportedly performed by Antoine while she was impersonating the victim registered nurse.
Antoine received compensation of $5,077 from Heart to Heart and $49,851 from Odyssey.
The FBI, Department of Health and Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
Three Receive Lengthy Sentences for Roles in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Following their guilty pleas earlier this year, three members of a cocaine distribution conspiracy have been sentenced to lengthy federal prison sentences, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, U.S. District Judge John McBryde sentenced Sergio Castillo-Guerra, 28, and Juan Rangel, 44, to 210 months and 240 months, respectively, in federal prison. Last week, Judge McBryde sentenced the other defendant convicted in the case, Mario Morones-Ramirez, 29, to 168 months in federal prison. Each defendant pleaded guilty to one count of conspiracy to possess and distribute cocaine, a Schedule II controlled substance.
According to documents filed in the case, law enforcement learned that Sergio Castillo-Guerra would be traveling from Mexico to the Fort Worth area in May 2014, and that he already had eight kilograms of cocaine for sale that was stashed in a ranch house in the area. On May 21, 2014, law enforcement established surveillance at a restaurant in Fort Worth and observed Castillo-Guerra, travelling with two other men, arrive in a van bearing Coahuila, Mexico, handicap license plates. Castillo-Guerra called co-conspirator Rangel, who agreed to deliver kilograms of cocaine to the restaurant for delivery. Rangel called co-conspirator Morones-Ramirez and instructed him to deliver the eight kilograms of cocaine to the restaurant.
A short time later, Morones-Ramirez arrived at the restaurant in a red Ford pick-up truck. He, Castillo-Guerra, Rangel, and a witness met at the back of truck and discussed the sale. The witness was shown eight kilograms of cocaine contained in a black trash bag in the bed of the truck. Shortly thereafter, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested the three defendants and the cocaine was seized.
Rangel advised agents that he rented a “ranchito” near Alvarado, Texas, that was used as a stash house for his boss who resided in Muzquiz, Coahuila, Mexico. Special agents searched the “ranchito,” in Venus, Texas and found an additional nine kilograms of cocaine, more than $300,000 in cash, a loaded pistol with an additional loaded magazine, drug distribution ledgers and a money-counting machine.
ATF investigated. Assistant U.S. Attorney J. Michael Worley prosecuted.
Social Security Administration (SSA) Employee Admits Role in Conspiracy to Defraud the SSARead the Press Release
DALLAS — A former employee of the Social Security Administration (SSA) appeared in federal court in Dallas this morning and pleaded guilty, before Chief U.S. District Judge Sidney A. Fitzwater, to his role in a conspiracy to defraud the SSA, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lead defendant Carwin Shaw, 33, of Arlington, Texas, pleaded guilty to one count of conspiracy to commit theft of government funds. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. He will remain on bond pending sentencing, which is set for March 20, 2015, before Chief Judge Fitzwater.
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 late last month to her role in the conspiracy and is scheduled to be sentenced on March 13, 2015. Johnson and Harvey are set for trial on January 12, 2015.
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.
Lubbock Man Sentenced to 87 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Scott Brandon Hutcheson, 37, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison following his guilty plea in August 2014 to one count of transportation of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Cummings remanded Hutcheson into custody at the conclusion of the hearing.
According to the factual resume filed in the case, in January 2014, Hutcheson used his computer to send an image of child pornography to the wife of a childhood classmate of his. The image depicted the recipient’s son, age four or five, eating an ice cream cone. The image, however, had been modified to make it appear the child was engaged in sexually explicit conduct. The child’s name was also displayed across the top of the image. Hutcheson sent the image, under the name of a third party, with the message:
A friend of mine asked me to send you this, and to inform you that it has been re-blogged onto NAMBLA (North American Boy Love Association) sponsored websites. He said that you would understand that filth is an aesthetic.
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 the Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force and the FBI. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Frisco Man Pleads Guilty to Attempted Enticement of A MinorRead the Press Release
DALLAS, Texas — Matthew Jarmon, 24, of Frisco, Texas, pleaded guilty today before U.S. Magistrate Judge Paul D. Stickney to one count of attempted enticement of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jarmon faces a statutory penalty of not less than ten years and a maximum term of life in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Sentencing is scheduled for March 9, 2015.
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 years old. Jarmon made plans to meet the minor and to engage in sexual activity. 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 case was investigated by the Garland Police Department and the United States Secret Service. Assistant U.S. Attorney Camille Sparks is prosecuting.
Former Auto Leasing Company Owner Sentenced to Two Years in Federal Prison on Bank Fraud ConvictionRead the Press Release
DALLAS — The former owner and president of Curry Auto Leasing (CAL) in Dallas, who pleaded guilty in July 2014 to an information charging one count of bank fraud, was sentenced yesterday, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Mark Hood, 47, of Rockwall, Texas, was sentenced by U.S. District Judge David C. Godbey to 24 months in federal prison and ordered to pay approximately $1,170,620 in restitution. He must surrender to the Bureau of Prisons in January 2015.
CAL, located on Montfort Drive in Dallas, facilitated auto leases for individual and corporate clients by obtaining funding for the vehicles from various financial institutions. CAL served as the intermediary between the customer and the financial institutions, obtaining funding for the leases for the customer and then servicing the leases on behalf of the financial institutions.
According to documents filed in the case, beginning as early as September 2007 and continuing through at least October 2010, Hood knowingly executed a scheme to defraud the financial institutions by making false representations and promises concerning the auto leases and loans.
Hood’s scheme to defraud had two parts: (1) “double pledging” lease agreements with multiple financial institutions; and (2) providing a false guarantee to the financial institutions that CAL would provide a clear title to financed vehicles, knowing that clear titles could not be provided.
After obtaining financing from the originating financial institution to acquire one or more vehicles to be leased by CAL customers, on occasion, CAL through Hood, sought and secured subsequent funding for the same vehicle(s) from a second or new financial institution. At times, the secondary funding occurred at or about the time of the expiration of the original lease and/or for reducing the monthly cost to the customer. In some instances, however, the secondary funding occurred a few months after the original lease was funded by the original bank, without disclosure of the original lease to the secondary funding institution. At the time of the secondary financing, CAL, through Hood, represented to that financial institution that the funds paid through this financing would be paid timely to the original financial intuition so that a clear title could be obtained and provided. Hood knew this statement was false.
The U.S. Secret Service, the Federal Deposit Insurance Corporation and the FBI investigated. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Dallas Man Faces up to 20 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27-year-old Irving, Texas, man appeared in federal court this morning, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Frank Olivarez, Jr., who is in federal custody, faces a statutory penalty of not less than five or more than 20 years in federal prison, up to a $250,000 fine and a lifetime of supervised release. Sentencing is set for May 4, 2015, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, in February 2014, a task force officer with the FBI, who was conducting an investigation into the sharing of child pornography on a BitTorrent file-sharing network, identified a computer that was sharing files containing child pornography. The task force officer downloaded 695 image and video files from Olivarez, 648 of which were child pornography.
The FBI then secured a search warrant that they executed at Olivarez’s home. Olivarez admitted using BitTorrent software to download and view child pornography. Agents seized computer media from the home and further forensic analysis revealed that 33 images depicted the sexual exploitation of infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Child Exploitation Task Force investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
North Texas U.S. Attorneys Office Helps Collect More Than $17 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $13,130,113.54 in criminal and civil actions in Fiscal Year 2014. Of this amount, $9,419,602.42 was collected in criminal actions and $3,710,511.12 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,991,303.62 in cases pursued jointly with these offices. Of this amount, $101,976.45 was collected in criminal actions and $3,889,327.17 was collected in civil actions.
The District has also been successful seizing proceeds of crime for asset forfeiture. For the first three quarters of FY 2014, working with partner agencies and divisions, the office collected more than $35 million in asset forfeiture actions.
“This District is dedicated not only to protecting the public, but to recovering funds for victims of federal crimes and the federal treasury,” said U.S. Attorney Saldaña. “These statistics show this office’s commitment to recover ill-gotten gains from those who violate federal criminal and civil laws so that funds can be restored to crime victims and a variety of law enforcement programs can be funded.”
Substantial collections in the District in FY 2014 include:
• $1 million in forfeited assets restored as restitution, and disbursed to hundreds of victims in U.S. v. Gregory Rand, et al., an oil and gas investment fraud case;
• $1.125 million civil settlement paid by Kwik Industries, Inc., for falsified loan applications a former employee made to the Small Business Administration (SBA), plus $176,000 recovered from the former employee was disbursed to the SBA and other lenders who were victims in U.S. v. Janice Stallons, after the Fifth Circuit affirmed the garnishment of her accounts;
• $525,000 in fines paid by defendants in U.S. v. Califco, LLC and Jonathan Shokrian, for shoddy asbestos removal from a shopping center in Irving, Texas;
• $340,000 garnished from multiple bank and retirement accounts of Cyprian Akamnonu, the first convicted defendant in the massive health care fraud case, U.S. v. Jacques Roy, et al.;
• $300,000 in restitution to 39 victims of convicted securities fraudster Jason Kosova; and
• $255,000 garnished from the business of Travis Atterberry on a 17-year-old bank fraud judgment. .
Last month, Attorney General Eric Holder announced that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Man Admits Robbing Two Banks in Amarillo in One WeekRead the Press Release
LUBBOCK, Texas — Jon-Michael Murray, 30, most recently of Arizona, pleaded guilty this afternoon before U.S. District Judge Mary Lou Robinson to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Murray, who remains in federal custody, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, Murray admitted committing the August 27, 2014, robbery of the Wells Fargo Bank located at 1838 S. Georgia Street in Amarillo and the September 2, 2014, robbery of the Wells Fargo Bank located at 200 S. Washington Street in Amarillo. Murray claimed he committed the robberies because he was short of money after moving to Amarillo and trying to care for his family.
He committed both robberies during the early afternoon hours. He entered each bank, wearing a dark cap and sunglasses, and in each robbery, he presented a threatening demand note to a teller. On one of the notes, he wrote, “Put all the money in the bag and nobody gets hurt I know where you work so be smart.” A hangman, smiley face, stitches, and a tombstone with the letters “RIP” were also drawn on the note. During each robbery, a teller gave him cash and afterwards, he fled on foot. Video surveillance from both robberies showed the robber to be the same person. Video surveillance from nearby businesses showed that following the August 27 robbery, he later drove a silver minivan with no front license plate and no visible registration or inspection stickers in the front windshield.
The day after the September 2 robbery, however, an officer with the Amarillo Police Department spotted and stopped what appeared to be the silver mini-van from the August 27 robbery. Murray was the driver of the vehicle. Officers then searched his vehicle and residence and additional evidence, including clothing worn during the robberies and cash taken from the banks, was found.
The FBI and the Amarillo Police Department investigated. Assistant U.S. Attorneys Tim Hammer and Joshua Frausto are prosecuting.
Lubbock Man Faces up to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 57-year-old Lubbock, Texas, resident appeared in federal court yesterday and pleaded guilty to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Rassie Cleveland Martin, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Martin used a desktop computer at his residence to search the Internet for images and videos of child pornography. He searched with the intent of locating material depicting minors engaging in sexually explicit conduct, and in the course of searching for this material, located, downloaded, and viewed numerous images and videos constituting child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Amarillo Men Admit Aiming Laser Pointer at DPS HelicopterRead the Press Release
AMARILLO, Texas — Two residents of Amarillo, Texas, Matthew George Dodgen and Christopher Anthony Cantrell, appeared in federal court this afternoon and pleaded guilty before U.S. District Judge Mary Lou Robinson to an indictment charging each with one count of aiming a laser pointer at an aircraft and aiding and abetting, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for January 21, 2015, before Judge Robinson. Dodgen remains on bond and Cantrell is in custody.
According to documents filed in the cases, on June 1, 2014, at approximately 12:56 a.m., a Texas Department of Public Safety (DPS) helicopter was hit with a green, ground-based laser while flying over Amarillo. The DPS pilot and co-pilot traced the laser’s origin to two subjects, later identified as Dodgen, 35, and Cantrell, 34, standing near a van parked at a residence near SW 12th and Washington Street.
The helicopter’s camera recorded Dodgen and Cantrell as they ran to their van and drove away. Officers with the Amarillo Police Department, who had been called to assist, quickly located and stopped the vehicle. Dodgen was the driver and Cantrell was the passenger. A laser was located on the floorboard between Cantrell’s feet.
Both men admitted pointing the laser at the helicopter. The laser’s light hit the pilot’s eyes directly for a split second, and he had to divert his eyes to avoid another direct hit from the laser. It affected his vision for approximately 20 seconds.
The FBI led the investigation with assistance from the Texas DPS and the Amarillo Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting.
Former Parkland Hospital Employee Admits Stealing Patient Information to Market His Home Health Agency in Garland, TexasRead the Press Release
DALLAS — A former employee at Parkland Hospital in Dallas appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Renée Harris Toliver, to a federal felony offense stemming from his theft of patient information from the hospital, announced U.S. Attorney Sarah R. Saldaña.
Viju Mathew, 49, of Garland, Texas, pleaded guilty to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft). He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing before U.S. District Judge Jane J. Boyle.
According to plea documents filed in the case, as a registration specialist at Parkland Hospital, Mathew entered patient information into Parkland’s computer system. Mathew used his position to obtain confidential patient information, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers.
Mathew admitted that he knowingly removed the confidential information intending to use it to gain an economic benefit by contacting prospective patients for his home health care business.
The FBI, Department of Health and Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Brian Portugal is in charge of the prosecution.
Former Carrollton, Texas, Man Who Worked as A Long-Haul Truck Driver, Faces up to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old long haul truck driver who most recently resided in Carrollton, Texas, appeared in federal court this morning and pleaded guilty to one count of transportation of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
James Marshall Thomas, who has been in federal custody since his arrest in September 2014, faces a statutory maximum sentence of not less than five years and up to 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. He is scheduled to be sentenced on March 13, 2015, before Chief U.S. District Judge Sidney A. Fitzwater.
According to documents filed in the case, the National Center for Missing and Exploited Children received a Cybertip in June 2012 that an individual, later identified as Thomas, had emailed images of child pornography to another specific email address. While a federal search warrant was being drafted, FBI special agents discovered that he had moved out of his apartment in Carrollton and that he worked as a cross-country truck driver.
Approximately two years later, FBI special agents located Thomas at a freight delivery destination. He gave them permission to search his laptop computer where agents discovered that he had responded to an advertisement on Craigslist by stating, in part, “pedo perv here.” They also discovered child pornography on the laptop and seized it, as well as a thumb drive.
A forensic analysis revealed that Thomas had searched for child pornography using various search terms indicative of raping young boys. In addition, Skype artifacts were also located that included chat logs of other like-minded individuals discussing the rape of young boys. Thomas also used Skype to receive and transport files of child pornography on multiple occasions. The analysis further revealed that Thomas had accessed several child pornography videos of prepubescent children. In all, approximately 400 images and 28 videos of child pornography, including sadistic acts involving minors, were located on his computer and thumb drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI is investigating. Assistant U.S. Attorney Camille Sparks is prosecuting.
Dallas Man Pleads Guilty to Drug and Child Obscenity OffensesRead the Press Release
DALLAS — A 40-year-old Dallas man appeared in federal court today and pleaded guilty, before U.S. Magistrate Judge Renée Harris Toliver, to three federal felony offenses in an investigation that began in January 2014 after law enforcement learned he was claiming packages containing anabolic steroids from a postal center in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Defendant Nicholas Todd Freed was arrested by a Task Force Officer with Homeland Security Investigations (HSI) on January 28, 2014, as he was attempting to claim a package containing anabolic steroids at the Deep Ellum Postal Center in Dallas. Pursuant to the arrest, law enforcement discovered Freed possessed a counterfeit U.S. Marshals Service (USMS) credential and badge. Freed was charged in a federal criminal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a USMS seal. Later, the investigation revealed that Freed also possessed numerous thumb drives containing images of minors engaging in obscene, sexually explicit conduct.
This morning, Freed pleaded guilty to a three-count superseding information charging one count of attempted possession with intent to distribute a controlled substance, one count of possession of a document-making implement with intent that it be used in the production of false documents, and one count of possession of obscene visual representations of the sexual abuse of children. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the controlled substance and obscenity conviction and a maximum statutory penalty of 15 years in federal prison and a $250,000 fine on the conviction for possessing the document-making implement. Sentencing is set for April 20, 2015, before U.S. District Judge Sam A. Lindsay.
In early January 2014, U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S. Postal Service Express Mail parcel, arriving from Singapore, as suspicious. The parcel contained approximately 1087 grams of an oily liquid, later determined to contain an anabolic steroid, and it was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, which is the address of the Deep Ellum Postal Center. CBP notified HSI in Dallas of the parcel and its contents.
The ensuing investigation determined that the account for the rental box at the postal center was opened with fictitious information, and the box frequently received similar packages. On January 28, 2014, when the HSI task force officer approached Freed who was at the postal center to pick up the package, he discovered Freed was carrying a USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector.
Later that day during a consensual search at Freed’s residence, law enforcement seized computers and computer equipment as well as other items Freed used to make false government identification documents, including laminating materials, blank plastic cards the size of a driver license, pages of magnetic strips for the backs of identification cards, ink consistent with the Texas seal on state licenses and identifications cards, a laminating press, hologram materials of official government seals, pages of names and identities used in the production of the false identifications, and head shots.
Upon further examination of the seized thumb drives, special agents discovered visual depictions of minors, including prepubescent minors, engaging in obscene, sexually explicit conduct.
U.S. Immigration and Customs Enforcement’s HSI , CBP, and the Balch Springs and Dallas Police Departments investigated. Assistant U.S. Attorney Keith Robinson is prosecuting.
Tax Return Preparers Convicted at Trial on Conspiracy and Tax OffensesRead the Press Release
FORT WORTH, Texas — Two Fort Worth, Texas, tax preparers were convicted at trial on all 34 counts of a superseding indictment charging conspiracy and other tax offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to evidence presented at trial, Ramona C. Johnson managed/operated a tax preparation business in Fort Worth that was known, among other names, as Tax Office One. Johnson’s daughter-in-law, Nekia N. Everson, was a return preparer for the business.
Johnson and Everson were each convicted on Wednesday on one count of conspiracy to aid and assist in the preparation and presentation of a false tax return. Johnson was also convicted on 26 counts of aiding and assisting in the preparation of a false tax return and two counts of filing false tax returns. Everson was also convicted on five counts of aiding and assisting in the preparation and presentation of a false tax return.
The government presented evidence that Johnson and Everson, and those working with them, prepared and filed false and fraudulent tax returns that included various false and fraudulent schedules, deductions, exemptions, and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. As a result of the larger refunds, Johnson and Everson were able to charge higher fees for preparing returns, build client loyalty, and increase business through client referrals.
In some instances, Johnson and Everson, and those working with them, created false and fraudulent Schedule C (reporting business losses/profits) and Schedule A (reporting itemized deductions) forms to accompany the taxpayer’s Form 1040. The taxpayers would often be asked about their personal expenses, such as those incurred commuting to and from work, cell phone, automobile, clothes, etc., and then the information would be fraudulently listed on the Schedule C as business expenses or unreimbursed employee expenses on Schedule A. On some returns, Johnson and Everson would completely fabricate a Schedule C business, including income and expense items. For some taxpayers, Johnson would create a false and fraudulent Schedule C reflecting the taxpayers had a profit from a nonexistent business. This false profit, together with claimed dependents (both fraudulent and actual), would be used to claim the taxpayer was entitled to an earned income tax credit.
In other instances, according to evidence presented at trial, Johnson and those working with her would include false dependent exemptions on tax returns for some clients. Johnson, or someone working with her, would acquire various personal identities, the names and social security numbers of individuals with no connection to the taxpayer to use as false dependents on tax returns prepared for clients. When included on the tax return, the false dependents would increase the number of exemptions, increase the deduction for exemptions, and often, entitle the taxpayer to an earned income tax credit..
In addition, the government presented evidence that for calendar years 2009 and 2010, Johnson filed tax returns in which she reported total income of $2,850 and $16,906, respectively, when she well knew that the income amount was understated in that it did not include income she received for her work preparing tax returns.
Between January 2008 and October 2011, according to evidence presented at trial, Johnson’s tax preparation business collected more than $1.9 million in tax preparation fees from clients.
The conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Each of the remaining counts carries a maximum statutory penalty of three years in federal prison and a $250,000 fine. In addition, restitution could be ordered. Both Johnson and Everson will remain on bond pending sentencing, which is set for March 6, 2015, before U.S. District Judge John McBryde.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Mark Nichols and Chris Wolfe are prosecuting.
Lake Charles Mechanic Sentenced to 24 Months in Federal Prison on Obscenity ConvictionRead the Press Release
LUBBOCK, Texas — A former mechanic from Lake Charles, Louisiana, Nicholas W. Schofield, 26, was sentenced today by U.S. District Judge Sam R. Cummings to 24 months in federal prison, following his guilty plea in July 2014 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Cummings ordered Schofield, who has been on bond, to surrender to the Bureau of Prisons on January 25, 2015.
According to documents filed in the case, in November 2013, a minor female, “Jane Doe,” from San Angelo, Texas, began texting with a person she did not know, who purported to be an 18-year-old mechanic from Louisiana named “Nick.” In fact, Nick was defendant Schofield. They engaged in numerous texting communications until February 2014, when Jane Doe’s communications were assumed by an undercover special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In the course of his communications with the undercover agent, Schofield sent various sexually explicit images and videos, all the while believing he was communicating with 15-year-old Jane Doe. According to the factual resume filed, the video Schofield sent to the minor is obscene, in that it appeals to a prurient interest in sex, depicts a sexually explicit act and is patently offensive and, taken as a whole, lacks serious literary, artistic, political or scientific value.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the San Angelo Police Department, Special Operations Section, investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Hurst, Texas, Man Charged with Federal Child Pornography OffenseRead the Press Release
FORT WORTH, Texas — A Hurst, Texas, man is in federal custody, charged in a federal criminal complaint with transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldana.
Randy Way Wesson, 28, made his initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton in federal court in Fort Worth today, and he was ordered detained, pending a detention and preliminary hearing set for Tuesday, November 25, 2014, at 11:00 a.m. before Judge Cureton.
According to the complaint filed in the matter, 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 preliminary examination of Wesson’s desktop computer revealed numerous images of child pornography.
Anyone who may have been victimized related to this case should contact the toll-free tip line to Homeland Security Investigations (HSI) at 1-866-347-2423.
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 five or more than 20 years in federal prison, a $250,000 fine and 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.”
U.S. Immigration and Customs Enforcement’s (ICE) HSI and the Hurst Police Department are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Four in Metroplex Indicted for Stealing Social Security Benefits Belonging to Deceased IndividualsRead the Press Release
DALLAS — A federal grand jury returned four unrelated indictments this week, each charging an individual from the Dallas-Fort Worth metroplex with a federal felony offense stemming from their theft of Social Security benefits, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the below-listed defendants is charged with at least one count of theft of government funds. Each was arrested, appeared before a U.S. Magistrate Judge, and was released on bond.
Robert Scoggins, 57, of Carrollton, Texas, is alleged to have stolen approximately $47,548 in Social Security benefits paid to his deceased wife, to which he knew he was not entitled.
James Glen Williams, 47, of Dallas, Texas, is alleged to have stolen approximately $77,886 in Retirement Insurance benefits paid to his deceased mother, to which he knew he was not entitled.
Latasha Smith, a/k/a Latasha Matthews, 34, of Arlington, Texas, is alleged to have stolen approximately $49,065 in Retirement Insurance benefits paid to her deceased father and $84,029 in Veterans’ Affairs benefits paid to her deceased mother, to which she knew she was not entitled.
Roy Dan Ramos, 41, of Grand Prairie, Texas, is alleged to have stolen more than $1,000 in Retirement Insurance benefits paid to his deceased grandmother, to which he knew he was not entitled. He is also charged with concealing that information in a 2011 bankruptcy filing.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for the offense of theft of government funds is 10 years in federal prison and a $250,000 fine. The maximum statutory penalty for making a false statement in a bankruptcy filing is five years in federal prison and a $250,000 fine.
The investigation is being conducted by the Social Security Administration’s Office of the Inspector General, with assistance from the Department of Veterans’ Affairs Office of Inspector General. Special Assistant U.S. Attorney Nicole Dana is prosecuting.
Federal Grand Jury Indicts Members of Violent South Dallas DTO on Conspiracy, Drug Trafficking, Firearm, Kidnapping, Witness Intimidation/Tampering and Destruction of RecordsRead the Press Release
DALLAS — An 10-count indictment was returned by a federal grand jury in Dallas this week that charges 11 men and women from the Dallas area with various conspiracy, drug trafficking, kidnapping, firearm, witness intimidation/tampering, and records destruction charges stemming from their involvement in a violent drug trafficking operation (DTO) that operated out of the Pleasant Grove area of South Dallas and the Dallas County Jail. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Defendants charged and in custody are:
• Patrick D. Lenard, 33, of Pleasant Grove, South Dallas. For significant periods since November 26, 2012, Lenard was incarcerated at Dallas County Jail.
• Juaquai Gregg, of Dallas. Between approximately November 12, 2012, and March 31, 2014, Gregg was incarcerated at Dallas County Jail.
• Joshua Smart, 26, of Dallas. Between approximately December 3, 2012, to November 4, 2014, Smart was incarcerated at Dallas County Jail.
• Shuntocqua Shine, 33, of Dallas. Between approximately November 13, 2012, to November 20, 2012, Shine was incarcerated at Dallas County Jail. She also managed and operated the Groveside Tobacco Gallery on N. Jim Miller Road in Dallas.
• Brandon Florence, a/k/a “Beetlejuice,” 30, of Dallas
• Lashundra Rogers, 35, of Mesquite, Texas. She was one of Lenard’s girlfriends.
• Selena Ball, 29, of Desoto, Texas. From September 23, 2013, to May 27, 2013, Ball worked as an Electronic Monitoring Officer for the Dallas County Community Supervision and Corrections Department, and was assigned to monitor Lenard. She was also one of Lenard’s girlfriends.
• Rory Minafee, 26, of Dallas
• Bonner Ray Tutson, 50, of Dallas
Two additional defendants, Rodney Wynn, 34, of Kaufman, Texas, and Christina Staton, 38, of Dallas, are also charged in the indictment. Wynn was added to the State of Texas’s most wanted list in September 2014 and remains a fugitive. Staton, who, according to the indictment is referred to by the derogatory term “Fatass,” is also a fugitive.
The indictment alleges that Lenard conspired with his 10 codefendants, and others, to run the DTO from approximately July 12, 2012, to November 4, 2014. The DTO trafficked in large quantities of cocaine, heroin and marijuana. In furtherance of its drug-trafficking activities, the Lenard DTO also engaged in violent acts, including kidnapping, assault, beatings, and torture, towards, and of, individuals whom Lenard believed had defied or crossed the Lenard DTO, including his own family members. In addition, the indictment alleges the Lenard DTO intimidated and bribed individuals whom the DTO believed might assist law enforcement in investigating and prosecuting it. The Lenard DTO also took actions to subvert and manipulate state investigative and legal proceedings against the organization.
Count one of the indictment alleges that in November 2012, Lenard, Wynn, Gregg, Smart and Shine conspired to kidnap, and kidnapped, “Victim A.” They captured and assaulted Victim A at gunpoint. Once captured, they took Victim A to an apartment where Victim A was beaten and tortured in an effort to locate cash and other things of value they believed Victim A had taken from the Lenard DTO. Lenard had offered Shine $10,000 to locate Victim A. If convicted on this count, each faces a maximum statutory penalty of life in federal prison and a $250,000 fine.
Count two of the indictment charges Lenard, Wynn, Gregg, Smart and Shine with using, carrying, and brandishing a firearm during or in relation to the kidnapping. If convicted on this count, each faces a statutory penalty of not less than seven years in federal prison and a $250,000 fine.
Count three of the indictment charges Lenard, Wynn, Gregg, Smart and Shine with kidnapping Victim A. If convicted on this count, each faces a maximum statutory penalty of life in federal prison and a $250,000 fine.
Count four of the indictment charges all 11 defendants with conspiracy to possess with intent to distribute five kilograms or more of cocaine, one kilogram or more of heroin, and marijuana. It alleges that from July 12, 2012, to November 4, 2014, the Lenard DTO maintained stash houses for illegal narcotics, negotiated and discussed drug transactions over their cell phones and from phones maintained at the Dallas County Jail; used violence and threats of violence to enforce the Lenard DTO’s goals; recruited and convinced individuals who were responsible for reporting illegal activities to alter, modify, and fail to report those activities; and obstructed or attempted to obstruct the investigation and prosecution of members of the Lenard DTO.
Lenard admitted in a state court proceeding that he and Ball were engaged in a romantic relationship despite her position and the clear conflict. Lenard convinced her to alter, modify, or fail to report violations of Lenard’s conditions of release. Ball purposefully failed to report violations of those conditions by Lenard, who had violated them by approaching, confronting, and attempting to intimidate coconspirators and witnesses to the above-mentioned kidnapping.
If convicted on this count, each faces a statutory penalty of not less than 10 years and up to life in federal prison and a millions in fines.
Count five of the indictment charges Lenard, Florence, Staton, Rogers and Ball with conspiring to intimidate, threaten, corruptly persuade, and engage in misleading conduct toward Victim A to ignore a federal grand jury subpoena and by intimidating Victim A with regard to Victim A’s cooperation with law enforcement. If convicted on this count, each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
Count six of the indictment charges Lenard, Florence, Staton, Rogers and Ball with conspiring to tamper with a witness, victim or informant by intimidation, threats, corrupt persuasion or misleading conduct. They attempted to convince Victim A to ignore a federal grand jury subpoena and paid money to Victim A to leave the State of Texas. If convicted on this count, each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
Count seven of the indictment charges Ball with destruction, alteration or falsification of records. It alleges that she knowingly altered, destroyed, concealed, covered up, falsified or made a false entry in electronic monitoring records with the intent to impede, obstruct and influence an investigation. If convicted on this count, Ball faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
Count eight charges Minafee with one count of possession of cocaine with intent to distribute. If convicted on this count, Minafee faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Count nine charges Minafee with possessing a firearm in furtherance of a drug trafficking crime. If convicted on this count, Minafee faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Count ten charges Tutson with possession of marijuana with intent to distribute. If convicted on this count, Tutson faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The ongoing investigation is being led by the Texas Department of Public Safety (DPS), the Drug Enforcement Administration, the FBI and the Dallas Police Department.
Assistant U.S. Attorneys Errin Martin and P. J. Meitl are prosecuting.
Man Faces Seven Years in Federal Prison for Theft of Public Funds and Aggravated Identity TheftRead the Press Release
DALLAS — Roberto Boris Fernandez appeared before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to federal felony offenses stemming from his conspiracy to obtain tax refunds by filing fraudulent tax returns using stolen names and social security information, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Fernandez pleaded guilty to one count of conspiracy to commit theft of public funds and one count of aggravated identity theft. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on the conspiracy count and a mandatory consecutive two-year sentence and a $250,000 fine on the aggravated identity theft count. Sentencing is set for March 4, 2015, before U.S. District Judge Ed Kinkeade. Fernandez remains in custody.
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 Internal Revenue Service (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.
Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Dallas Man Sentenced to 192 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old Dallas resident, Jeffrey Wyatt Savell, II, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 192 months in federal prison on a child pornography conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Savell, who is in custody, pleaded guilty in March 2014 to one count of transporting and shipping child pornography.
According to documents filed in the case, the investigation began in April 2013 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working online in an undercover capacity, noticed that a computer with particular IP address traced to a location in Dallas was sharing more than 200 files, some with names indicative of child pornography.
After further investigation, a federal search warrant was obtained and executed at Savell’s residence in June 2013. Savell admitted using file-sharing networks to share files. He knew some of the videos depicted toddlers, but he was mostly interested in teens, primarily young boys.
A forensic examination of Savell’s laptop computers revealed more than 750 images and 250 videos of child pornography. That analysis also revealed that 14 of the files depicted sadism and/or masochism, and 22 files depicted infants or toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Dallas County Man Sentenced to 144 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — A Lancaster, Texas, man who admitted transporting and shipping child pornography was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Quincy Lamar Poole, 25, was sentenced by U.S. District Judge Barbara M. G. Lynn to 144 months in federal prison to be followed by a 5-year term of supervised release. Poole has been in custody since his arrest in July 2013 on a related federal criminal complaint.
According to plea documents filed in the case, when special agents with the FBI executed a search warrant at Poole’s home in Lancaster on July 16, 2013, they seized a laptop computer, a thumb drive and Poole’s cell phone. Email transmissions were located that showed Poole had sent two emails with a video of child pornography attached to each. In addition, five videos and one image of child pornography were located on his cell phone.
Poole admitted trading images and videos of child pornography with others he met through two Internet websites, according to the complaint filed in the case. He admitted downloading thousands of images of child pornography, adding that for the past 10 years he had an obsession with child pornography.
At today’s sentencing hearing, it was stipulated that law enforcement located more than 4000 images and 21 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated the case and Assistant U.S. Attorney Camille Sparks prosecuted.
Tarrant and Parker County Men Receive Lengthy Federal Prison Sentences for Roles in Cocaine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Six defendants who were convicted of federal felony offenses for their respective roles in a cocaine distribution conspiracy in North Texas have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Francisco Favela, 46, of Crowley, Texas, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 96 months in federal prison. Favela pleaded guilty to one count of conspiracy to possess a controlled substance with the intent to distribute (cocaine).
Two other coconspirators pleaded guilty to the same offense and have been sentenced. Jorge Villarreal-Flores, 30, of Weatherford, Texas, was sentenced to 87 months in federal prison and Ricky Johnson, 35, of Fort Worth, was sentenced to 108 months in federal prison.
Another coconspirator, Terrance Montgomery, 30, of Fort Worth, was convicted at trial in July 2014 on one count of conspiracy to possess with intent to distribute a controlled substance (cocaine) and one substantive count of possession with intent to distribute a controlled substance (cocaine). He was sentenced to 360 months in federal prison.
Two other codefendants, Eugenio Quintero, 42, of Fort Worth, and Miguel Angel Ayala, 39, of Weatherford, Texas, each pleaded guilty to one count of possession with intent to distribute a controlled substance (cocaine). Quintero was sentenced to 108 months in federal prison and Ayala was sentenced to 51 months in federal prison.
According to documents filed in the case, since approximately May 2013, Favela received cocaine from various Mexico-based cocaine suppliers – usually receiving several kilograms of cocaine every few weeks on consignment. When Favela received cocaine from a courier, Favela would give that same courier, or another courier, the money he owed for the previous cocaine shipment. Usually, Favela paid approximately $26,000 for each kilogram of cocaine.
Typically, once Favela received cocaine from Mexico, he personally distributed it, often on consignment, to others, including Montgomery, Johnson, Quintero and Ayala. When they received this cocaine, they would then pay Favela for their previous cocaine shipments.
On several occasions, Villarreal-Flores worked as a money-courier for Favela’s Mexico-based supplier, transporting drug proceeds from Favela in Fort Worth to Mexico. On February 15, 2014, Favela gave Villarreal-Flores approximately $150,000 in drug proceeds that was to be delivered to the Mexico-based supplier. Villarreal-Flores, however, was arrested in Hillsboro, Texas, before he could complete the journey to Mexico.
The investigation was conducted by the Drug Enforcement Administration (DEA) High Intensity Drug Trafficking Area (HIDTA) task force and Internal Revenue Service (IRS) Criminal Investigation. Assistant U.S. Attorney Shawn Smith prosecuted.
Garland Man Pleads Guilty to Child Pornography OffenseRead the Press Release
DALLAS — A Garland, Texas, man, Jonathan Ramirez, 26, appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldana.
Ramirez, who is in the U.S. illegally, faces a statutory penalty of not less than five years nor more than 20 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. Sentencing is set for March 4, 2015, before U.S. District Judge Ed Kinkeade.
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 is in charge of the prosecution.
Former Branch Manager at BBVA Compass Bank in Big Spring, Texas, Is Sentenced to 41 Months in Federal Prison on Bank Fraud ConvictionRead the Press Release
LUBBOCK, Texas — A former Branch Manager at BBVA Compass Bank in Big Spring, Texas, (BBVA Big Spring) was sentenced on Friday by U.S. District Judge Sam R. Cummings on a bank fraud conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lisa Lynette Barber, 49, of Amarillo, Texas, was sentenced to 41 months in federal prison and ordered to pay $1,095,540 in restitution. Barber pleaded guilty in July 2014 to one count of bank fraud. Judge Cummings ordered that she surrender to the Bureau of Prisons on Decemer 19, 2014.
According to documents filed in the case, Barber was employed by BBVA Big Spring as Branch Manager from 2008 to 2012. BBVA Big Spring acquired State National Bank in 2008 where Barber had worked from 1997 to 2008. Because of her position with BBVA Big Spring, Barber had full access to customers’ bank accounts.
Barber made withdrawals from BBVA Big Spring customers’ accounts without their knowledge, authority and permission, causing an approximate $1.1 million loss to BBVA Big Spring.
Barber executed her scheme by several means. She fraudulently used customers’ names and bank account numbers to initiate debit entries and withdrawals, which acted as formal requests for cashier’s checks payable to another financial institution. Sometimes she forged BBVA Big Spring employee bank tellers’ signatures on the cashier’s checks, which were then deposited into her personal banking account held at the Big Spring Community Federal Credit Union (BSCFCU).
Acting in a supervisory capacity, Barber withdrew money from customers’ accounts through her employee tellers. She submitted fraudulent withdrawal slips to BBVA Big Spring tellers to cause them to give Barber large amounts of cashier’s checks not belonging to her. Barber informed the tellers that she was conducting business and making transfers for her customers, and the tellers did not questions the legitimacy of those transactions because they trusted Barber was conducting the transactions at the customer’s request.
Barber victimized customers with whom she had a long-standing relationship, or customers she suspected would not immediately notice the unauthorized transactions. If customers noticed an improper transaction, they reported it directly to Barber who would immediately refund their accounts with money stolen from other customers’ accounts. This response served to confirm victims’ trust in Barber.
The FBI investigated the case. Assistant U.S. Attorney Chris Wolf prosecuted.
Parker County, Texas, Man Sentenced to 183 Months in Federal Prison for Violent Kidnapping of Gay ManRead the Press Release
WASHINGTON — The Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Northern District of Texas, and the FBI’s Dallas Division Office announced that Brice Johnson, 19, of Springtown, Texas, was sentenced today in federal court to 183 months imprisonment for kidnapping a young gay man after luring the victim to his home and brutally assaulting him because of his sexual orientation.
Johnson admitted in plea documents that, in the early morning hours of September 2, 2013, he connected with the adult male victim, identified as A.K., through the cell phone application for www.MeetMe.com A.K.’s www.MeetMe.com page indicated he was a gay man, while Johnson’s web page indicated he was not gay. During their online communications, Johnson said that he was interested in engaging in sexual activity with A.K. Johnson invited A.K. to his home, gave A.K. his cell phone number and address, and exchanged text messages planning their sexual encounter. Just a few minutes after A.K. arrived at the house, Johnson severely beat him and bound A.K.’s wrists with an electrical cord.
After the beating, Johnson locked the victim in the trunk of his own car and drove the car to a family friend’s house. Individuals at the home repeatedly warned Johnson that he had to take A.K. to the hospital or they would call the police. Johnson eventually transported A.K. to an Emergency Medical Services (EMS) station in Springtown. A.K. was found to have suffered multiple skull and facial fractures from the beating, which required the victim to be hospitalized for ten days. Johnson admitted that he saved A.K.’s cell phone number using a gay slur as the contact name.
During the plea hearing, Johnson admitted that he held and confined the victim against his will in order to conceal the violent assault and to remove A.K’s severely injured body from the home where Johnson was a long-term houseguest. At sentencing, U.S. District Judge Reed O’Connor found that the kidnapping was perpetrated by the defendant because of the victim’s sexual orientation.
“Using violence against another person because of his sexual orientation will not be condoned,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The department will continue to work with our state, local, and federal law enforcement partners to vigorously prosecute hate crimes.”
“Quite simply, hate crimes of any nature will not be tolerated,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. “Prosecutions under this law are important to ensure all people in our community know they have the full protection of the law. I commend not only the victim for his continued cooperation throughout this investigation, but our law enforcement partners including the FBI, the Springtown Police Department and the Parker County Sheriff’s Office, who worked tirelessly in this case to ensure our hate crime laws are strictly enforced.”
“The FBI is committed to thoroughly investigating violent crimes of this nature, and will continue to work with our local and state law enforcement partners to ensure justice for victims of these crimes,” said Special Agent in Charge Diego Rodriguez of the FBI’s Dallas Division Office.
The investigation was conducted by the FBI, the Springtown Police Department, and the Parker County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.