Northern District of Texas
Press releases recorded for this federal judicial district.
Dallas Man Known as “Baja Bandit” Admits 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, has pleaded guilty to federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Michael Dewayne Cleveland, 31, pleaded guilty this morning, before U.S. Magistrate Judge David L. Horan, 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.
Cleveland faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine for each robbery conviction. For the first firearm conviction, he faces seven years in federal prison, because he brandished the weapon, which will run consecutively to all other charges. For the second firearm conviction, he faces 25 years in federal prison that will also run consecutively to all other charges. Sentencing is set for October 15, 2014, before U.S. District Judge Ed Kindeade.
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, and Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Parker County, Texas, Man Pleads Guilty to Federal Kidnapping ChargeRead the Press Release
FORT WORTH, Texas — The Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Northern District of Texas, and the FBI Dallas Division announced that Brice Johnson, 19, of Springtown, Texas, pleaded guilty today in federal court to kidnapping a young gay man after inviting the victim to his home and brutally assaulting him.
Johnson admitted in plea documents that in the early morning hours of Sept. 2, 2013, he connected with the adult male victim, identified as A.K., through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s web page indicated he was not gay. During their chat communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address, and they 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. Johnson then locked the victim into the trunk of his own car and drove the car to a family friend’s house. Individuals at the home repeatedly warned Johnson that they would call the police if he didn’t take A.K. to the hospital. Johnson eventually transported A.K. to an Emergency Medical Services (EMS) station in Springtown.
A.K. suffered multiple skull and facial fractures from the beating, causing him to be hospitalized for ten days at Harris Methodist Hospital in Fort Worth. Johnson admitted that he saved A.K.’s cell phone number using a gay slur as a contact name.
During the plea hearing this morning, before U.S. District Judge Reed C. O’Connor, 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.
Sentencing has been set for Nov. 17, 2014. Johnson faces a maximum statutory penalty of up to life in prison and a $250,000 fine
“This was a senseless act of brutal violence that has no place in a civilized society,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We are hopeful that today’s guilty plea brings some sense of justice for the victim and makes clear that the Department of Justice is committed to using every tool available to vindicate the rights of victims of violent crimes. The department will continue to work with our state, local and federal law enforcement partners to vigorously investigate hate crimes allegations throughout the country.”
“Violent crimes of this nature will not be tolerated, and I commend the victim for his continued cooperation in the investigation and prosecution of this reprehensible conduct,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“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 Diego Rodriguez, Special Agent in Charge of FBI Dallas Division.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Serial Bank Robber Sentenced to 198 Months in Federal PrisonRead the Press Release
Previously Dubbed "T Shirt Bandit," Defendant Committed Four Bank Robberies After Serving Federal Prison Sentence for 18 Bank Robberies Committed in 2006
DALLAS — A serial bank robber, who was on supervised release after serving a federal prison sentence for committing 18 bank robberies in Dallas in 2006, was sentenced today for committing four more bank robberies in 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
William Clark Perschman, 51, most recently of Addison, Texas, was sentenced by U.S. District Judge Jane J. Boyle to a total of 198 months in federal prison. Perschman admitted committing these bank robberies:
July 17, 2013 Woodforest National Bank
3770 Belt Line Road, Addison
August 3, 2013 Capital One Bank
3790 Belt Line Road, Addison
August 14, 2013 Green Bank
16771 Dallas Parkway, Addison
August 31, 2013 Capital One Bank
17561 Dallas Parkway, DallasIn most of the bank robberies, Perschman wore a long-sleeved shirt and either a t-shirt or towel draped over his head to disguise his identity. In each robbery, he presented a demand note to a teller.
Perschman was released from federal custody in February 2011, after serving a 63-month federal prison sentence for robbing 18 banks in Dallas in 2006. He was serving a three-year term of supervised release that would have ended in February 2014.
The FBI, Addison Police Department and Dallas Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Dallas Man Sentenced to 24 Months in Federal Prison for Committing Financial Aid Fraud at Local Community CollegesRead the Press Release
Defendant Commits Offense While Waiting to Report to Federal Prison on Separate Conviction
DALLAS — A Dallas man who used family members’ personal identifiers and photos to apply for admission to, and receive financial aid from, certain institutions and colleges was sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Desmond Ladell Johnson, 35, was sentenced by U.S. District Judge Jane J. Boyle to 24 months in federal prison and ordered to pay $22,442.00 in restitution. Johnson pleaded guilty in October 2013 to one count of financial aid fraud. He must surrender to the Bureau of Prisons in late August 2014.
At the hearing, it was noted that Johnson committed the instant crimes while on pre-sentence release for another conviction in the Northern District of Texas. Johnson pleaded guilty to one count of theft of government property on May 19, 2009, and in November 2009, he was sentenced to serve 46 months in federal prison for that offense. He was ordered to surrender to the Bureau of Prisons exactly two months later, on January 19, 2010, which he did, to begin serving that sentence. It was during that two-month period that Johnson committed the financial aid fraud crimes.
According to documents filed in the case, between May 2009 and January 2010, Johnson used the personal identifiers, including social security numbers, dates of birth and photo identifications of several family members, including his brother, stepbrother and father, to apply for admission to, and financial aid from the Dallas County Community College District and Trinity Valley Community College (TVCC). Those family members had no knowledge that Johnson was using this information or receiving disbursed funds.
When an address was required or requested on applications and forms, Johnson would typically list an address where he resided, or over which he had control, as opposed to the correct address for the relevant family member. When a telephone number or email address was required, Johnson would typically list a telephone number and email address over which he had control, as opposed to the correct telephone number or email address for the relevant family member. Johnson also obtained a student identification card at TVCC under his brother’s name, but which contained Johnson’s picture.
Using this scheme, Johnson stole $25,429.00 that he used for non-educational purposes.
The U.S. Department of Education investigated the case. Assistant U.S. Attorney P. J. Meitl prosecuted.
Man Who Enticed A Minor to Engage in Sexual Activity Is Sentenced to 300 Months in Federal PrisonRead the Press Release
DALLAS — A man who travelled from the Pacific-Northwest to Dallas to engage in sexual activity with a minor, was sentenced today in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Phillip Amisano-Camillo, 43, a resident of Canada, was sentenced to 300 months (25 years) in federal prison, to be followed by a 10-year term of supervised release, by U.S. District Judge Jorge A. Solis. Amisano-Camillo pleaded guilty on Friday, August 16, 2013, to one count of enticement of a minor. His trial, on a two-count indictment charging not only enticement, but also one count of traveling with intent to engage in sexual acts with a minor, was scheduled to begin the following Monday. Today, per the plea agreement, the Court dismissed the traveling count.
According to documents filed in the case, Camillo admitted he met “John Doe” in an Internet chat room in April 2012. In the days and weeks after he met John Doe, whom he knew was a 14-year-old minor, Camillo “chatted” online with him via Skype. Camillo admitted that in May 2012, he traveled from Washington State to Dallas to meet John Doe for a sexual encounter. Camillo also admits that before and during his time in the Dallas/Fort Worth area, he enticed and persuaded John Doe to sneak out of his home and meet him to engage in unlawful sexual activity. Camillo admits that he took John Doe to a local hotel and engaged in sexual activity with him.
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 Irving Police Department investigated. Assistant U.S. Attorneys Lisa J. Miller and Aisha Saleem prosecuted.
Man Sentenced to 14 Years in Federal Prison for Laundering Monetary Proceeds from Sex TraffickingRead the Press Release
DALLAS — At a hearing concluding late Friday afternoon, Chief U.S. District Judge Sidney A. Fitzwater sentenced Duc Luu, a naturalized U.S. citizen from Vietnam, to 14 years in federal prison for laundering monetary proceeds from sex trafficking, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the hearing, Chief Judge Fitzwater noted the horrific nature of the crime and added that he was incapable of capturing its heinousness in words. Chief Judge Fitzwater also ordered Luu to pay $16,766 in restitution to the victim.
“I commend the dedication and hard work of law enforcement, not only in their persistence in investigating this case, but in their efforts to locate and rescue victims who may be unable to seek help themselves,” said U.S. Attorney Saldaña. “This district remains vigilant in our efforts to vigorously and aggressively prosecute human traffickers and hold them accountable for their crimes.”
Luu, 50, was indicted in August 2011, while he was living in Vietnam, on one count of sex trafficking by force, fraud or coercion and two counts of money laundering. According to documents filed in the case, Luu travelled to Vietnam on his U.S. passport, but shortly after his indictment, the U.S. initiated efforts to arrest and extradite him. Ultimately, the U.S. Department of State revoked Luu’s passport and Vietnam expelled him. Luu was then arrested and returned to the Northern District of Texas, where he made his initial appearance in federal court on the charges in September 2012.
Luu pleaded guilty in August 2013 to two counts of money laundering. According to the stipulated facts in the factual resume, in October 2008, Luu caused $12,000 to be wire-transferred from a bank in Texas to a bank in Vietnam, knowing that the funds had been derived from sex trafficking. Again, in July 2009, Luu caused $26,000 to be wire-transferred from a bank in Texas to the same bank in Vietnam, knowing that these funds also were derived from sex trafficking. Luu was the sender and beneficiary of both wire transfers.
The victim testified at the sentencing hearing regarding the depraved acts of the defendant in recruiting, grooming, manipulating, exploiting and subjecting her to a fraud of the most serious nature.
“Individuals such as Mr. Luu, who use money laundering to conceal the true source of their money run the risk of federal prosecution and imprisonment,” said R. Damon Rowe, Special Agent in
Charge of the IRS-CI Dallas Field Office. “IRS Criminal Investigation is committed to unraveling money laundering schemes and assisting our law enforcement partners to ensure that the type of criminal conduct engaged in by Mr. Luu is not ignored. Mr. Luu’s sentence is a reminder to criminals that money laundering schemes will be vigorously investigated and prosecuted.”“Even a harsh prison sentence seems inconsequential compared to the horrors visited on the victim in this case,” said Special Agent in Charge David Marwell of HSI Dallas. “Nonetheless this is a stern warning to criminals who flee justice that Homeland Security Investigations will continue to use our unique authorities and international partnerships to bring criminals to justice, no matter how far they run or in what country they hide.”
IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Department of State and the Garland Police Department investigated. Assistant U.S. Attorney Errin Martin prosecuted.
Roommates Sentenced on Conspiracy Convictions Stemming from A Tax Refund Fraud SchemeRead the Press Release
DALLAS — A local man was sentenced yesterday afternoon, by U.S. District Judge Jane J. Boyle, to 45 months in federal prison and ordered to pay approximately $52,000 in restitution on a conspiracy conviction stemming from his role in a tax refund fraud scheme, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Elijah Meskano pleaded guilty in May 2013 to a superseding information charging one count of conspiracy to commit theft of public funds. Following the hearing yesterday, Judge Boyle remanded him into the custody of the U.S. Marshal.
According to a complaint filed in Meskano’s case, he and Cephas Msipa were roommates in Plano, Texas. Msipa, who has been in federal custody since his arrest on an indictment in November 2012, pleaded guilty to the same offense and was sentenced in February 2014 to 46 months in federal prison and ordered to pay more than $118,000 in restitution. The Court stated during his sentencing hearing that Msipa will be deported to Zimbabwe after he serves his prison sentence.
According to the factual resume filed in Msipa’s case, Msipa admitted that from January 5, 2012, until June 2012, he was involved in a conspiracy to obtain tax refunds generated through the submission of fraudulent tax returns. For his part in the conspiracy, Msipa used a false name to open bank accounts in order to receive the refunds from the fraudulently filed tax returns.
Msipa used a forged United Kingdom passport to establish a private mailbox at a postal store on Preston Road in Dallas. Thereafter, according to the factual resume, Msipa used this false name, and the address of the mailbox, to open three accounts at Bank of America and two accounts at Chase Bank.
Meskano, according to the factual resume filed in his case, from December 22, 2011 through November 29, 2012, also opened bank accounts using a false name to receive refunds from fraudulently filed tax returns.
According to the factual resume filed in Meskano’s case, from January through November 2012, the co-conspirators electronically filed 192 fraudulent tax returns using stolen identities and false income information that directed the IRS to deposit refunds into one of six bank accounts Meskano opened.
IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Christopher Stokes prosecuted.
Former Correctional Officers at Big Spring Correctional Center Plead Guilty to Federal ChargesRead the Press Release
Defendants on Duty When an Inmate Commits Suicide
ABILENE, Texas — Former Correctional Officers at Big Spring Correctional Center (BSCC), in Big Spring, Texas, have pleaded guilty to federal charges stemming from a Department of Justice (DOJ) Office of the Inspector General (OIG) investigation that was initiated when an inmate committed suicide in the facility two years ago while they were on duty, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Frederick Hernandez, 45, of Big Spring, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of making false statements and aiding and abetting. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Last Friday, Christopher Moore, 42, of Dallas, pleaded guilty to one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report for each defendant with a sentencing date to be set after the completion of those reports.
According to plea documents filed in the case, from August 22 - 23, 2012, Hernandez and Moore were assigned to the Flight Line Unit in the Special Housing Unit (SHU) at BSCC; Hernandez was the Officer in Charge. Part of their duties included making mandatory 30-minute safety checks of each cell and conducting six mandatory formal inmate counts during a 24-hour period, beginning at 12:01 a.m., 3:00 a.m., 5:00 a.m., 10:00 a.m., 4:00 p.m. and 10:00 p.m. Each Correctional Officer is further required to certify that the mandatory 30-minute safety check of each cell and the mandatory formal inmate counts were made.
An inmate housed in the Flight Line Unit committed suicide during the 8:00 p.m., to 8:00 a.m. shift on August 22 - 23, 2012, and was discovered during the morning feeding on August 23, 2012.
Hernandez admitted that he completed, signed and submitted to the Department of Justice, as required by law, the “SHU Control Log” forms indicating that formal counts of inmates had been performed from 12:01 a.m. to 5:10 a.m., on August 22 – 23, 2012. Hernandez further admitted he knew the logs were not correct and were false in that the formal counts of inmates were not conducted.
Moore admitted he knew Correctional Officers at BSCC submitted forms to the Department of Justice, as required by law, indicating that safety check rounds were conducted, when, in fact, he knew they had not been conducted. He further admitted that he concealed this fact and failed to advise an authority.
In related cases, two other defendants, James McKinnon, 22, and Jamie Navarette Salgado, 24, each pleaded guilty in September 2013; McKinnon pleaded guilty to one count of misprision of a felony and Salgado pleaded guilty to one count of making false statements and aiding and abetting. In December 2013, McKinnon was sentenced to six months in federal prison and ordered to pay a $500.00 fine. He is presently serving his prison time. McKinnon and Salgado also worked as Correctional Officers assigned to the Flight Line Unit in the SHU at BSCC. Salgado admitted making false entries on logs and falsely indicating he had conducted safety rounds. McKinnon admitted that he knew entries on the logs were incorrect and that he failed to advise an authority.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo is prosecuting.
Wichita Falls Man Sentenced to 151 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
Defendant is the Last of 39 Convicted in Case to be Sentenced
WICHITA FALLS, Texas— A Wichita Falls, Texas, man, Stuart Ray Mitchell, 40, who pleaded guilty in January 2014 to one count of conspiring to possess with intent to distribute and to distribute methamphetamine, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 151 months in federal prison. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Mitchell admitted that on multiple occasions between November 2011 and August 2012, he distributed quantities of methamphetamine, and received payments for it, from customers in the Wichita Falls area. Mitchell’s sources of methamphetamine included co-conspirator Steve Ysasaga, who supplied Mitchell quantities of at least one ounce of methamphetamine at a time. Mitchell distributed quantities of methamphetamine to various individuals in Wichita Falls, and he made payment for the methamphetamine he received from Ysasaga to both Ysasaga and co-defendant Kimberly Williams. Mitchell admits he possessed with intent to distribute at least 50 grams of methamphetamine during the conspiracy.
Ysasaga, 41, of Arlington, Texas, was sentenced in late February 2014 to 240 months in federal prison. Kimberly Williams, 27, was sentenced to 72 months in federal prison in July 2013.
With Mitchell’s sentencing yesterday, all 39 defendants charged in this conspiracy have entered guilty pleas and have been sentenced. Federal prison sentences have ranged from 24 months to 300 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department investigated this Organized Crime and Drug Enforcement Task Force (OCDETF) case. Assistant U.S. Attorney Mary F. Walters prosecuted.
Wichita Falls Man Sentenced to 110 Months for Possessing Methamphetamine He Intended to DistributeRead the Press Release
WICHITA FALLS, Texas— Leonardo L. Sanchez, of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 110 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sanchez, 37, has been in custody since his arrest in June 2013 on a related federal criminal complaint.
According to plea documents filed in the case, on October 25, 2012, when officers with the Wichita Falls Police Department executed a narcotics search warrant at his home, officers found two semi-automatic pistols in a safe. In Sanchez’s truck, officers located a tube of caulk that contained two small plastic bags containing additional small plastic bags of methamphetamine. Sanchez admitted he possessed this methamphetamine and intended to distribute it later.
The Texas Department of Public Safety, the Wichita Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated; Assistant U.S. Attorney Mary F. Walters prosecuted.
SORNA Offender Sentenced to 48 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — Joseph Higgins, 35, most recently of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 48 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Higgins was convicted in the Circuit Court for the State of Oregon for Union County in June 2000 of rape and sodomy and was sentenced to 75 months on each count, to run concurrently. He was also required to register as a sex offender, a requirement that he acknowledged when he was released from custody in May 2012. On November 9, 2012, Higgins registered as a sex offender with the LaGrande Police Department in Oregon.
In January 2012, Higgins moved to Texas. He failed to advise the State of Oregon of the move and he failed to register in Texas as a sex offender, as required by the Sex Offender Registration Notification Act (SORNA). The Wichita Falls Police Department issued an arrest warrant for Higgins on May 15, 2013, charging him with failing to comply with registration requirements, and he was arrested the following day.
Higgins admitted he knew he was a sex offender, and he knew of his duty to register. He admitted he had been convicted of raping a 13-year-old victim.
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 Wichita Falls Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Tampa Contractor Sentenced to Four Years in Federal Prison for Defrauding Hundreds of Investors in Connection with Home Solutions of America, Inc. StockRead the Press Release
Brian Marshall Taken Into Custody Immediately Following Sentencing
DALLAS — Businessman Brian Marshall, 50, of Tampa, Fla., was sentenced today by U.S. District Judge Barbara M. G. Lynn to four years in federal prison for defrauding investors in connection with the sale of Home Solutions of America, Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Marshall was remanded immediately to custody following the sentencing hearing.
Marshall pleaded guilty on November 18, 2013, the day his trial was to begin in federal court in Dallas, to one count of securities and commodities fraud.
Marshall was a vice-president and a member of the board of Home Solutions of America, Inc., a NASDAQ-traded company that was based in Dallas before it relocated to New Orleans, Louisiana in July 2008. Home Solutions was in the business of construction and restoration, including new construction and restoration following natural disasters such as hurricanes. Home Solutions conducted some of its business through its largest subsidiary, Fireline Restoration, Inc., which was based in Tampa. Marshall was the president of Fireline. Frank J. Fradella of Covington, Louisiana, who was the CEO of Home Solutions, pleaded guilty to securities fraud in the Eastern District of Louisiana and is scheduled to be sentenced on September 24, 2014.
In filed plea documents, Marshall admitted that between December 2006 and August 15, 2007, he ran a scheme to defraud public investors by fabricating false and fictitious revenue, operating income and costs in connection with a series of construction contracts in Tampa. Marshall caused Fireline to enter into construction contracts with private companies that he wholly or partially owned, including a $4 million contract for the construction of his personal residence.
Marshall admitted that he also caused Fireline to record revenue and income from the construction contracts that were false, because little, if any, work had actually been performed. Even though Marshall knew that the revenue, costs and income on the construction projects were false, he caused Home Solutions to report it to public investors in Home Solutions’ 2Q 2007 10-Q.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
The FBI, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission, conducted the investigation. Assistant U.S. Attorneys J. Nicholas Bunch and Andrew Wirmani prosecuted.
Local Chemical Engineer Indicted on Federal Charges in Trade Secrets CaseRead the Press Release
DALLAS — A Ph.D. chemical engineer from Terrell, Texas, Dr. Mattias Tezock, self-surrendered to special agents of the FBI this morning on felony offenses outlined in a federal indictment returned last week by the grand jury, stemming from his use of trade secrets stolen from his former employer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dr. Tezock is charged with four counts of unauthorized possession of stolen trade secrets. He made his initial appearance is federal court this afternoon in Dallas and was released on bond.
From April 12, 2004, to September 30, 2005, Tezock was employed as a chemical engineer at Voltaix, LLC, a multinational corporation, headquartered in North Branch, New Jersey, which manufactures specialty chemicals for the semiconductor and solar energy industries. Over approximately 25 years and at great expense, according to the indictment, Voltaix developed a specific, industry-leading and exacting secret and confidential scientific method to make and purify germane to specifications required by its customers. In particular, Voltaix developed a particular secret and confidential recipe that it uses to manufacture high-purity germane, as required by its customers. It has taken reasonable measure to keep this information secret and confidential and it derives economic value from it not being known to, or readily ascertainable through proper means, by the public.
As part of his employment at Voltaix, Tezock signed and agreed to an “Employment and Non-Compete Agreement” and an “Employee Confidentiality Acknowledgement Form” when he joined the company, which prohibited him from improper disclosures of Voltaix’s confidential, proprietary and trade secret information. While he was employed at Voltaix, Tezock primarily worked on the pre-commissioning of Voltaix’s germane processing and manufacturing plant. Tezock’s employment was terminated as of September 30, 2005.
The indictment alleges that Tezock later moved to Terrell and opened Metaloid Precursors, Inc., a company set up to manufacture, produce, purify and sell the specialty gas, germane. According to the indictment, from September 30, 2005 until at least March 17, 2011, Tezock unlawfully possessed confidential, proprietary and trade secret information from Voltaix, and he attempted to convert, and did convert, that information for his economic benefit by developing, manufacturing, marketing and selling the germane. After his termination from Voltaix, Tezock almost immediately began taking steps to misappropriate Voltaix’s confidential, proprietary and trade secret recipes and process for manufacturing and purifying high-purity germane gas (GeH4), a hazardous chemical, by creating a competing business entity and attempting to steal business from Voltaix by actively soliciting at least one of Voltaix’s customers.
In addition, according to the indictment, during subsequent civil litigation brought by Voltaix, Tezock took steps to hide his possession of this trade secret information by deleting files or manipulating computer evidence in an attempt to prevent Voltaix from learning the scope and magnitude of his breach. He also provided false testimony about it under oath in a deposition in the civil litigation.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each count of theft of trade secrets carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require Tezock, if convicted, to forfeit to the government all proceeds traceable to the offense. Restitution could also be ordered.
The FBI is investigating the case. Assistant U.S. Attorneys J. Nicholas Bunch and Paul Yanowitch are prosecuting.
(Download Factual Basis)
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Are Sentenced for Roles in Conspiracy to Commit Health Care FraudRead the Press Release
DALLAS — Yesterday afternoon, two businessmen, Stanley Thaw, 72, of Frisco, Texas, and Michael Kincaid, 57, of Plano, Texas, who owned and operated hyperbaric oxygen therapy (HBOT) companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, were each sentenced to five years in federal prison by U.S. District Judge Jorge A. Solis for conspiring to commit health care fraud. In addition, Judge Solis ordered them to pay approximately $1.5 million in restitution, jointly and severally. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Each defendant pleaded guilty in July 2013 to one count of conspiracy to commit health care fraud, admitting they conspired together, and with others, to defraud Medicare by making false and fraudulent representations and promises in connection with payments of HBOT services and items. HBOT is a therapy used to assist in healing diabetic sores or amputations in an outpatient setting. HBOT is administered by placing the patient in a hyperbaric oxygen chamber to receive increased levels of oxygen; each session of HBOT is commonly referred to as a “dive,” and generally lasted between ninety minutes and two hours.
The HBOT companies employed physicians to attend and supervise HBOT sessions to ensure that a patient was medically appropriate for the HBOT on that particular day and also to treat any medical emergency that may occur. Stanley Thaw and Kincaid admitted that they defrauded Medicare by billing multiple times for the physician supervision and attendance of HBOT-related services, when, in fact, the physician only supervised and attended one session/dive that day.
Stanley Thaw and his co-conspirators were advised on multiple occasions that billing for multiple dive sessions was improper and that they had overbilled Medicare. They continued to direct fraudulent claims to Medicare and other health care programs through at least June 2011.
The case was investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General, the Office of Personnel Management - Office of Inspector General and the Texas Department of Public Safety. To learn more health care fraud, please visit: http://www.stopmedicarefraud.gov/.
Assistant U.S. Attorney P.J. Meitl prosecuted.
Law Enforcement Arrests Members of the Violent “Goon Squad” and Others on Drug Trafficking and Robbery Conspiracy ChargesRead the Press Release
Led by Two Brothers and Their Sister; Other Family Members Also Involved
DALLAS — Following a law enforcement operation yesterday by special agents with the FBI and officers with the Dallas Police Department, 10 defendants who are charged in a drug distribution and robbery conspiracy are in custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of Dallas FBI and Chief David O. Brown of the Dallas Police Department.
Defendants indicted and in custody are:
- Cesar Ibarra, aka “Bling,” 39, of Mansfield, Texas
- Hilberto Ibarra, aka “Gilberto,” 29, of Mansfield, Texas
- Cesar Ibarra, Jr., aka “Chicho,” 21, of Dallas, Texas
- Lauro Reyes-Serrano, aka “Wicho” and “Gordo,” 29, of Dallas
- Nicholas Manriquez, 28, of Dallas, Texas
- Andres Garcia, aka “Mentiras,” 30, of Dallas, Texas
- Victor Anderson, aka “Old School,” 51, of Dallas, Texas
- Quinton Walker, 30, of Dallas, Texas
- Mark Anthony Nolasco, 22 of Dallas, Texas and Mansfield, Texas
One defendant named in the indictment, Elva Sofia Ibarra, 36, also of Dallas, has not been arrested. Another defendant, Felipe Gonzalez, 27, was arrested today on a related federal criminal complaint. The 10 arrested defendants made their initial appearances in federal court this afternoon and will remain in custody pending detention hearings scheduled for next week.
“This indictment and the arrests of these defendants represent the culmination of many months of diligent work by the FBI and the Dallas Police Department, and serves as an excellent example of the collaborative efforts of the federal government and local law enforcement to apprehend those individuals who are the most dangerous in our communities,” said U.S. Attorney Saldaña. “We believe this case will have a significant impact on the communities in which these criminals operated.”
“These arrests have resulted in a significant disruption of a criminal enterprise in the Dallas Division,” said Special Agent in Charge Rodriguez. “This joint investigation is a clear example of law enforcement’s commitment to remove the elements that pose significant social and criminal threats to our communities.”
“The Dallas Police Department was pleased to be involved in the investigation which led to the successful indictment and arrest of several members of the Goon Squad street gang,” said Chief Brown. “The arrests of these individuals is the culmination of a successful collaboration between the FBI, the US Attorney’s Office and our Department, as well as other members of the law enforcement community.”
The indictment alleges that Cesar Ibarra and his brother, Hilberto Ibarra, and their sister, Elva Sofia Ibarra (the Ibarra siblings) conspired with each other and others to commit illegal narcotics-trafficking offenses and criminal offenses in furtherance of their drug-trafficking activities, including the commission or planned commission of burglaries, robberies and other acts of violence. The Ibarra siblings and certain other co-conspirators called themselves the “Goon Squad,” and while Cesar and Hilberto Ibarra led the Goon Squad, the Ibarra siblings involved other family members, including Cesar Ibarra, Jr., in their cocaine, methamphetamine and marijuana trafficking activities.
According to the indictment, the Goon Squad targeted individuals known, or believed, to be drug dealers for burglary, robbery or other acts of violence, because those individuals were likely to possess large quantities of illegal narcotics, U.S. currency or firearms, and would not be likely to report any offenses by the Goon Squad.
The Goon Squad performed surveillance and reconnaissance on their potential victims. They also attempted to perform similar surveillance on members of law enforcement they believed were investigating their illicit activities by taking photographs and recording vehicle-specific information.
Count One of the indictment alleges that between November 2011 and June 3, 2014, these 10 defendants conspired to possess with intent to distribute 500 grams or more of methamphetamine, five kilograms or more of cocaine and marijuana.
Count Two of the indictment alleges that during the same time frame, defendants Cesar Ibarra, Hilberto Ibarra, Elva Sofia Ibarra, Lauro Reyes-Serrano and Victor Anderson conspired with each other and others to obstruct, delay and affect interstate commerce by robbery, in that the defendants and their co-conspirators conspired to unlawfully take and obtain controlled substances, firearms and cash from others, by actual or threatened force and violence. Cesar and Hilberto were the leaders and organizers of the robberies, or other acts of violence, and personally participated in such illegal activities.
A federal indictment is an accusation by a grand jury. A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each count of conspiracy to commit robbery affecting interstate and foreign commerce is 20 years in federal prison and a $250,000 fine.
Assistant U.S. Attorneys P. J. Meitl and Jason Schall are prosecuting.
(Download Factual Basis)
Former Correctional Officer and Inmate Sentenced in Contraband Smuggling CaseRead the Press Release
ABILENE, Texas — A former Correctional Officer at Big Spring Correctional Center (BSCC), Matthew Castaneda, 24, and an inmate at BSCC, Ferdinand Trinidad, 45, have been sentenced for offenses related to contraband smuggling at the facility, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Trinidad was sentenced by U.S. District Judge Sam R. Cummings to six months in federal prison. He pleaded guilty in February 2014 to one count of misprision of a felony. Castaneda, who pleaded guilty in January 2014 to one count of making false statements, was sentenced by Judge Cummings on May 16, 2014, to six months in federal prison and six months home monitoring. He must surrender to the Bureau of Prisons on June 20, 2014.
According to documents filed in the case, from mid-September 2012 to mid-December 2012, Castaneda accepted monetary bribes from Trinidad’s wife to smuggle cell phones and other contraband into the facility for Trinidad. Trinidad’s wife would receive the contraband at her residence and then mail it to Castaneda at BSCC. She would deposit money directly into a bank account that Castaneda had set up to hide the scheme. Castaneda admitted receiving a $1,700 bribe, and Trinidad admitted he failed to notify an authority as soon as possible that Castaneda had agreed to bring contraband into the prison in exchange for monetary bribes.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Two North Texas Men Plead Guilty to Role in Stolen Refund Identity Fraud ConspiracyRead the Press Release
DALLAS — Two north Texas men have pleaded guilty in federal court in Dallas to their respective roles in a stolen refund identity fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Reminico Zhangazha appeared before U.S Magistrate Judge David L. Horan on Tuesday and pleaded guilty to one count of theft of public funds. Last month, co-defendant Tonderai Sakupwanya pleaded guilty to the same offense. Each faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sakupwanya is scheduled to be sentenced on September 8, 2014, by U.S. District Judge David C. Godbey. A sentencing date has not yet been set for Zhangazha. Both are in federal custody.
The plea agreements with the government also 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 had been electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes further 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.
Conspirator in Stolen Identity Refund Fraud Conspiracy Involving More Than 150 Victims Is Sentenced to Nearly Five Years in Federal PrisonRead the Press Release
DALLAS — At a sentencing hearing held this morning before Chief U.S. District Judge Sidney A. Fitzwater, Selemani Hakizimana was sentenced to 57 months in federal prison and ordered to pay approximately $362,000 in restitution, following his guilty plea in February 2014 to one count of conspiracy to commit theft of public money, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hakizimana has been in custody since his arrest in August 2013 at Hartsfield-Jackson Atlanta International Airport, according to information presented when he made his initial appearance in federal court in the Northern District of Georgia. Hakizimana’s indicted co-conspirator, Dizzy Kisonga, remains a fugitive.
According to the factual resume filed in the case, Hakizimana and Kisonga made an agreement to steal, and convert for their own use, income tax refunds by submitting fraudulent tax returns. In fact, according to information presented at today’s sentencing hearing, the scheme involved 154 victims.
The investigation began in March 2012 when Kisonga attempted to deposit five Refundo, Rush Tax Inc. checks at an Irving, Texas branch of Bank of America, according to the factual resume. Refundo, however, had placed a stop payment on each of the checks. Believing the checks were forged, bank officials notified the Irving Police Department.
An Irving Police Department officer arrived at the bank and met with Kisonga, who claimed to have prepared tax returns for the people named on the refund checks. Kisonga advised, according to the factual resume, that he had loaned the customers money while their tax returns were processed, and once the refunds were issued, the customers endorsed the checks and gave them to Kisonga. After depositing the refund checks, Kisonga advised he planned to give the customers the leftover funds, minus their initial loan amount.
Kisonga, according to the factual resume, admitted to having additional refund checks in his car. The officer determined that each of the seven checks located in the vehicle was already endorsed and made payable to a different person. The officer also found and seized a handwritten note from the car that contained the names of the five individuals listed on the Refundo tax return checks, and next to each name were the last four digits of the individual’s social security number.
Law enforcement executed a search at Kisonga’s house in April 2012 and learned that the five Refundo checks and the other checks found by the Irving Police Department belonged to an acquaintance named Selemani Hakizimana. According to Kisonga, Hakizimana game him the refund checks, already endorsed, while at a nightclub in Addison, Texas. According to their agreement, Kisonga kept a percentage of the checks’ value and gave the remainder to Hakizimana.
Forensic evidence established, according to the factual resume, that Hakizimana and Kisonga communicated via text messaging. These texts contained personal identifying information of several individuals as well as messages from Hakizimana instructing Kisonga to wire transfer money to domestic and foreign bank accounts. A review of Kisonga’s bank statements revealed that in 2012, he sent $275,000 in wire transfers to Hakizimana’s bank account.
Internal Revenue Service Criminal Investigation and the Irving Police Department investigated. Assistant U.S Attorney Aaron Wiley prosecuted.
Local Cell Head of A Major Methamphetamine Distribution Conspiracy Is Sentenced to 20 Years in Federal PrisonRead the Press Release
DALLAS — The local cell head of a major methamphetamine distribution conspiracy that operated in the Dallas-Fort Worth metroplex and elsewhere since October 2012, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gerardo Cisneros, aka “Tatuado,” “Gera,” and “Jerry,” was sentenced by U.S. District Judge Jorge A. Solis to serve a total of 20 years in federal prison. Cisneros, 27, previously agreed to forfeit five vehicles and a firearm.
Cisneros pleaded guilty in October 2013 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine and one count of conspiracy to commit money laundering. He has been in custody since his arrest in August 2013 when special agents with the Drug Enforcement Administration (DEA) and other law enforcement members executed numerous arrest warrants for defendants charged in the methamphetamine conspiracy as outlined in a federal indictment returned the previous month. The conspiracy involved Cisneros’s mother, who has been arrested, and his sister, who is a fugitive. The methamphetamine was imported into the U.S. from Mexico, and it was delivered to the Dallas area for distribution.
According to documents filed in the case, Cisneros acted as the local cell head of the conspiracy. He worked with co-defendants to set up a receipt and distribution center for controlled substances, including methamphetamine and marijuana. Cisneros admitted that he received and distributed methamphetamine in multi-kilo quantities, collected money from his customers and returned money to his supply source in Mexico. Cisneros admitted sending money to Mexico via couriers to conceal the nature, location, source, ownership or control of the drug proceeds.
Cisneros also admitted conspiring to launder money by depositing drug proceeds into multiple bank accounts so that the money could ultimately be withdrawn by individuals in Mexico in order to conceal or disguise the nature, location, source, ownership or control of the drug proceeds.
Cisneros further admitted he used drug proceeds to purchase a 2006 Chrysler 300, a 2009 Honda Accord, a 2007 Ford Edge, a 2010 Chevrolet Camaro, a 2009 Mercedes and his residence on Marilyn Lane in Arlington. He also admitted that the automobiles, residence and property at this location were used to facilitate drug trafficking.
Twenty-four defendants were charged in the conspiracy. The case against one defendant was dismissed and two defendants are awaiting trial. All other captured defendants have pleaded guilty and are awaiting sentencing.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the DEA, the Dallas Police Department, Grand Prairie Police Department, Garland Police Department, Rockwall Police Department and the Arlington Police Department.
Assistant U.S. Attorney George Leal is leading the prosecution with assistance from Assistant U.S. Attorneys Brian Poe and John DeLaGarza.
Former DISD Employee and Co-Conspirator Arrested on Mail Fraud ConspiracyRead the Press Release
DALLAS — A former employee with the Dallas Independent School District (DISD) and her co-conspirator were arrested by U.S. Postal Inspectors this morning in Irving, Texas, on an indictment returned by a federal grand jury last month charging each of them with one count of conspiracy to commit mail fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Maricella Reed, 40, and Adrian Bevelle, 31, appeared this afternoon before U.S. Magistrate Judge Renée Harris Toliver for their initial appearances and both were released on bond.
Reed was employed by the DISD as a data specialist in the worker’s compensation section of the district’s Risk Management Department. The indictment alleges that from May 7, 2009 to May 9, 2011, Reed used her position at DISD to cause approximately $160,000 in unauthorized payments to Bevelle.
Specifically, Reed altered information sent to Accounts Payable, substituting Bevelle’s name in place of legitimate claimants and adding Bevelle’s name and payment amounts to the list of legitimate claimants. She also created and submitted payment voucher forms for Bevelle in various amounts. Based on the information Reed provided, Accounts Payable issued checks to Bevelle and mailed the checks to him at addresses in Dallas and Irving. Bevelle received, endorsed and cashed the checks at various locations.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, conspiracy to commit mail fraud carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The U.S. Postal Inspection Service is investigating. Special Assistant U.S. Attorney Michelle Allen-McCoy is prosecuting.
(Download Factual Basis)
Dallas Man Admits Sex Trafficking of A Minor ChildRead the Press Release
DALLAS — A Dallas man who met a 15-year-old female run-away at a bus station, took her, and made her engage in sex acts for money, pleaded guilty this afternoon in federal court before U.S. Magistrate Judge David L. Horan, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dereck Johnson, 33, pleaded guilty to one count of sex trafficking of children. If the Court accepts the plea agreement executed between the defendant and the government, the parties agree the appropriate term of imprisonment in this case is 180 months in federal prison. Sentencing is set for September 15, 2014, before U.S. District Judge David C. Godbey.
According to documents filed in the case, on June 1, 2012, a 15-year old female, “Jane Doe,” took $200 from her father before spending the night at a friend’s house. While there, she asked a friend to drive her to a Greyhound station where she bought a ticket, with several transfers, to Arizona where a friend lived. Her bus stopped at the Greyhound station in downtown Dallas, where Johnson approached her. Jane Doe told Johnson she was 15 and that her parents did not know where she was. Johnson told her to go with him, and he would help her find Wi-Fi for her phone. Instead, he called a friend who picked them up and eventually took them to his home.
While at the house, Johnson used methamphetamine and provided it to Jane Doe. When Johnson’s friend came home and discovered Jane Doe was underage, he made them leave. He drove them back to the Greyhound bus station where Johnson and Jane Doe took a taxi to a Flying J Truck stop. There, they got a ride from a truck driver to a Love’s truck stop near another Greyhound station in Dallas. At that bus station, Jane Doe used a Greyhound employees’ cellphone to call her father to come pick her up, but she was unable to describe exactly where she was. She rushed off the phone and Johnson was waiting for her. He told her not to contact her father again, that she was staying with him, and she needed to come with him. Jane Doe’s father called the number back and spoke to a Greyhound employee who told him Jane Doe had left with a man.
Johnson took Jane Doe back to the Love’s truck stop with him, where he begged for money. Johnson found a truck driver who was willing to drive them to Houston. Johnson told Jane Doe they needed to make money so she needed to go into a specific man’s truck cab. After entering the man’s truck cab, the man repeatedly raped her and then provided compensation for the sex.
A few days later, on June 5, 2012, Johnson sent her to take a shower, and while she was in the bathroom at the truck stop, she plugged in her prepaid cellphone and was able to send out a text message for the first time since arriving at the truck stop. She was rescued soon thereafter.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Bank Robber Sentenced to 70 Months in Federal Prison for Robbing A Garland, Texas Branch of Bank of AmericaRead the Press Release
DALLAS — A Dallas man, who robbed a Garland, Texas branch of Bank of America last year, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jason Wayne Hulsebus, 34, was sentenced to 70 months in federal prison and ordered to pay $10,090 in restitution, following his guilty plea in February 2014 to one count of bank robbery.
Hulsebus admitted that on October 25, 2013, he robbed the Bank of America, located at 5402 North President George Bush Highway in Garland. When he entered the bank, he approached the teller and passed a piece of paper that stated, “Do not scream! I will not hurt you! Give me all the money in the drawer now!” In fear of her life, the teller placed the cash inside a Wal-Mart bag supplied by Hulsebus. While standing at the teller counter, Hulsebus held a BB pistol in his hand, but because of the counter’s height, the teller never saw the pistol. Hulsebus fled the bank with the money.
Evidence recovered from the robbery indicated Hulsebus was the robber. He was arrested on November 13, 2013, on a federal criminal complaint.
The Garland Police Department and the FBI investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Fraudsters Involved in Gold Purchase Scheme Are SentencedRead the Press Release
One Defendant Arrested at JFK International Airport Just Prior to
Boarding Flight to GhanaDALLAS — Two individuals, who defrauded Dallas-area investors in a gold purchase scheme they were involved in during late 2010, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Annetta Lou Smith, aka “Annette Crawford,” 49, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison. Co-defendant Warren Michael Hills, 54, of New Orleans, Louisiana, was sentenced earlier this month to 13 months in federal prison. Judge O’Connor ordered each defendant to pay $464,035 in restitution, jointly and severally. Each pleaded guilty in January 2014 to one count of conspiracy to commit wire fraud.
According to documents filed in the case, on August 27, 2013, Smith was informed that an indictment charging her and Hills with fraud would be presented to a federal grand jury in Dallas the following week. On Sunday evening, September 1, 2013, Smith was arrested on a criminal complaint by FBI agents at JFK International Airport, where she was awaiting a flight to Ghana, West Africa, scheduled to depart later that evening. She has been in custody since that time. Hills was arrested in New Orleans the following month, and Judge O’Connor remanded him into custody after his sentencing on May 15, 2014.
According to plea papers filed in the case, Smith and Hills worked together to recruit investors to purchase gold from the country of Ghana, West Africa. Smith and Hills represented to two particular investors that if these investors wired their funds to a specific bank account in Ghana, then they would cause the promised (and paid for) gold to be shipped to the investors. These two investors suffered substantial financial losses as a direct result of the failure of Smith and Hills to cause all of the promised gold to be delivered to them.
Although both Smith and Hills knew that the investors had fully paid for all of their promised gold, they also knew that all of the promised gold was ultimately never going to be shipped to them. Rather than be truthful to the investors, Smith and Hills made false representations to them promising the remaining gold would be shipped.
Smith and Hills caused substantial monetary losses to investors, including approximate total net losses of $113,483 to investor P.G. and approximately total net losses of $325,000 to investor M.W.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.
More American Commercial Colleges, Inc. Executives Plead Guilty to Federal ChargesRead the Press Release
LUBBOCK, Texas — Two executives of American Commercial Colleges, Inc. (ACC), James Michael Otto and Bruce Alan Reed, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty to federal charges. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
Otto, 61, of Lubbock, was the Chief Operating Officer and Campus Director for ACC’s Lubbock campus. Reed, 64, of San Angelo, Texas, was the Campus Director for ACC’s San Angelo campus. Otto and Reed each pleaded guilty to an Information, filed earlier this week, charging one count of misprision of a felony, admitting they knew about the criminal activity but failed to report it. Each faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set following the completion of those reports.
Yesterday, the president of ACC, Doyle Brent Sheets, 58, of Lubbock, and ACC also pleaded guilty to federal charges. ACC stole government funds by converting Federal Student Aid (FSA) program funds, and thus caused a loss to the government of approximately $972,794. Sheets admitted that he knew about the theft but did not report it, and he agreed that he would be personally, individually, jointly and severally liable for the total loss amount.
According to their plea agreements with the government, both Otto, Reed and Sheets are excluded, directly and indirectly from participating in any FSA programs. This voluntary exclusion is also a voluntary debarment, and they will not contest any actions taken to execute the debarment. Each agreed they will not have any ownership or interest in, or serve as an officer, director or any legal entity acting as a post-secondary educational institution participating in any FSA program.
ACC is a proprietary institution with corporate office in Lubbock. At one time, ACC operated five campuses in Texas — Lubbock, Abilene, Odessa, San Angelo and Wichita Falls — and one in Shreveport, Louisiana. ACC admitted that it knowingly converted FSA program funds from its students solely for its benefit to represent falsely to the U.S. Department of Education that it complied with the requirement that a proprietary institution may not derive more than 90% of its revenue from the FSA program to remain eligible to participate in the FSA program. The remaining 10% of revenue must come from other sources. This is known as the 90/10 Rule, and if an institution did not satisfy it, it would lose its eligibility to participate in the FSA programs.
In 2007, 2008 and 2009, ACC failed to meet the requirements of the 90/10 Rule, however, as early as 2003, ACC had devised a scheme to represent falsely to the Department of Education that it had met the requirements. From 2007-2009, ACC had students obtain private loans from a private bank in San Angelo, Texas, with whom ACC had made arrangements, of approximately $953,897. ACC recorded the loan funds received from the private bank as “good cash,” thus falsely representing to the Department of Education that ACC complied with the 90/10 Rule. By obtaining the loans from the private bank and delaying the students’ FSA program funds, ACC lowered their total FSA program funds revenue for the 90/10 Rule. ACC repaid and intended to repay those loans with approximately $972,794 of FSA program funds to give the appearance of complying with the 90/10 Rule. The private short-term loans were obtained entirely to benefit ACC so that it could falsely represent its compliance. To further the scheme, ACC employees advised students that the school would close if they did not satisfy the 90/10 Rule, and this would jeopardize the students’ education at ACC.
Otto admitted participating in the scheme to falsely represent to the Department of Education that ACC met the 90/10 Rule requirements. Otto and Reed identified ACC students who were already enrolled at ACC and eligible to receive FSA program funds, and used these students to obtain the short-term private loans from a private bank. ACC and Reed induced that private bank in San Angelo to provide those short-term private loans, and in 2009, Otto and Reed had students from the San Angelo campus obtain loans from that bank for $65,276.
ACC repaid those loans with approximately $66,606 of FSA program funds to give the appearance of complying with the 90/10 Rule. Otto and Reed each admit knowing that ACC converted $66,606 in FSA program funds from it students to falsely represent it was in compliance.
The United States Department of Education, Office of Inspector General, is conducting the investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Lubbock County Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Adrian Tino Guerrero, 28, of Slaton, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to188 months in federal prison, to be followed by a 20-year term of supervised release. Guerrero pleaded guilty in February 2014 to one count of receipt of child pornography and has been in custody since his arrest in November 2013 on a related charge. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, Guerrero used his computer to access various forms of pornography on the Internet, including numerous images and videos of child pornography. He admitted that in November 2013, while searching the Internet for child pornography, he knowingly downloaded a video of a female child engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Amy Burch prosecuted.
Serial Armed Robbers, Who Robbed Four Metroplex Jewelry Stores, Are Arrested on Federal ChargesRead the Press Release
DALLAS — Two men who are charged with recently committing the armed robberies of four jewelry stores in Dallas and Lewisville, Texas, were arrested this morning on federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Mark D. Whitfield, 35, of Mesquite, Texas, and Michael Demon Jackson, 37, of Dallas, are each charged in a federal criminal complaint with conspiracy to commit robbery and using, carrying and brandishing a firearm in relation to a crime of violence. They each made their initial appearance before U.S. Magistrate Judge Irma C. Ramirez this afternoon in federal court in Dallas and were detained.
According to the complaint, Whitfield and Jackson committed the following armed robberies:
October 18, 2013 Marquise Jewelers
13331 Preston Road, Dallas
February 4, 2014 Marquise Jewelers
13331 Preston Road, Dallas
February 24, 2014 Classic Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, Texas
April 29, 2014 Gianni’s Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, TexasGenerally, during each robbery, the two men would enter the store and one would ask to see diamond rings. The other man, armed with a pistol, would force the victim store employee to the floor while jewelry in display cases was taken at gunpoint. In-store video surveillance recorded all robberies. On two of these robberies, witnesses observed the robbers fleeing in a red car.
The investigation revealed that a 2010 Mitsubishi Galant, stopped for a traffic violation on February 15, 2014, matched the get-away vehicle’s description. The citation report listed Whitfield as the driver, and Jackson as the passenger. The vehicle was registered to Whitfield’s wife.
The investigation further revealed that Jackson was arrested on a state charge of unlawful possession of a firearm by a felon on March 13, 2014, when he was found with a loaded firearm during another traffic stop. He was released on bond the following day.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine. The maximum statutory penalty for the firearm offense is life in federal prison and a $250,000 fine. The government has 30 days to present the matter to a federal grand jury for indictment.
The Dallas FBI Violent Crimes Task Force, the Dallas Police Department and the Lewisville Police Department are conducting the ongoing investigation. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay, Assistant U.S. Attorney Lisa Miller and Special Assistant U.S. Attorney Lara Burns are prosecuting.
(Download Factual Basis)
Registered Sex Offender Indicted for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A federal grand jury returned an indictment yesterday charging Mark Anthony Pape, 23, of Fort Worth, Texas, with one count of production of child pornography and one count of committing this offense as a registered sex offender. Pape has been in federal custody since his arrest last month in San Marcos, Texas, on a related charge outlined in a federal criminal complaint. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to the criminal complaint, in February 2014, Pape used a prepubescent minor to engage in sexually explicit conduct with him and made a video recording of that conduct with his cell phone. During the execution of a state search warrant at a search of Pape’s residence, law enforcement seized that cell phone, and a forensic exam of the memory card revealed images and videos of Pape engaged in the sexual abuse of a prepubescent female.
The investigation was initiated when the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip regarding an individual who had uploaded an image, containing suspected child pornography, to the Internet. The investigation led to the identification of Pape, a registered sex offender.
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 statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the registered sex offender count, a mandatory 10-year consecutive sentence. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
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 Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are investigating. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
(Download Factual Basis)
American Commercial Colleges, Inc. and Its President Plead Guilty to Federal ChargesRead the Press Release
Responsible for Theft of Nearly $1 Million
LUBBOCK, Texas — The president of American Commercial Colleges, Inc. (ACC), Doyle Brent Sheets, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty personally, and on behalf of ACC, to federal charges. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
Sheets, 58, of Lubbock, Texas, pleaded guilty to an Information charging one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Authorized by corporate resolution, Sheets pleaded guilty to one count of theft of government funds and aiding and abetting, on behalf of ACC. ACC faces a maximum statutory penalty of five years’ probation, a $500,000 fine, or up to twice the gross gain or loss resulting from the offense. Judge Cummings ordered presentence investigation reports with sentencing dates to be set following the completion of those reports.
According to Sheets’ plea agreement with the government, ACC stole government funds by converting Federal Student Aid (FSA) program funds, and thus caused a loss to the government of approximately $972,794. Sheets admitted that he knew about the theft but did not report it, and he agreed that he would be personally, individually, jointly and severally liable for the total loss amount.
According to ACC’s plea agreement with the government, ACC is excluded, directly and indirectly from participating in any FSA programs. This voluntary exclusion is also a voluntary debarment, and ACC will not contest any actions taken to execute the debarment. ACC agrees that it will not have any ownership or interest in, or serve as an officer, director or any legal entity acting as a post-secondary educational institution participating in any FSA program.
Two others associated with ACC have also been charged, in Informations filed on May 19, 2014, with federal offenses. Michael James Otto, 61, of Lubbock, who served as the Chief Operating Officer and Campus Director for ACC’s Lubbock campus, is charged with one count of misprision of a felony. Bruce Alan Reed, 64, of San Angelo, Texas, who served as the Campus Director for ACC’s San Angelo campus is charged with the same offense.
ACC is a proprietary institution with corporate office in Lubbock. At one time, ACC operated five campuses in Texas — Lubbock, Abilene, Odessa, San Angelo and Wichita Falls — and one in Shreveport, Louisiana. ACC admitted that it knowingly converted FSA program funds from its students solely for its benefit to represent falsely to the U.S. Department of Education that it was in compliance with the requirement that a proprietary institution may not derive more than 90% of its revenue from the FSA program to remain eligible to participate in the FSA program. The remaining 10% of revenue must come from other sources. This is known as the 90/10 Rule, and if an institution did not satisfy it, it would lose its eligibility to participate in the FSA programs.
In 2007, 2008 and 2009, ACC failed to meet the requirements of the 90/10 Rule, however, as early as 2003, ACC had devised a scheme to represent falsely to the Department of Education that it had met the requirements. From 2007-2009, ACC had students obtain private loans from a private bank in San Angelo, Texas, with whom ACC had made arrangements, of approximately $953,897. ACC recorded the loan funds received from the private bank as “good cash,” thus falsely representing to the Department of Education that ACC complied with the 90/10 Rule. By obtaining the loans from the private bank and delaying the students’ FSA program funds, ACC lowered their total FSA program funds revenue for the 90/10 Rule. ACC repaid and intended to repay those loans with approximately $972,794 of FSA program funds to give the appearance of complying with the 90/10 Rule. The private short-term loans were obtained entirely to benefit ACC so that it could falsely represent its compliance. To further the scheme, ACC employees advised students that the school would close if they did not satisfy the 90/10 Rule, and this would jeopardize the students’ education at ACC.
The investigation is being conducted by the United States Department of Education, Office of Inspector General. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Former Teacher at Denton High School, Who Was Arrested Last Week on A Federal Child Pornography Charge, to Remain in Federal CustodyRead the Press Release
FORT WORTH, Texas — Following a hearing today in federal court in Fort Worth, Texas, a U.S. Magistrate Judge has ordered that Gregory Bogomol, 38, of Fort Worth, Texas, must remain in federal custody during the pendency of his case. Bogomol was arrested last week by special agents with U.S. Immigration and Customs and Enforcement’s (ICE) Homeland Security Investigations (HSI) on a federal criminal complaint charging possession of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
According to the complaint, Bogomol was employed by the Denton Independent School District as a teacher at Denton High School. He resigned from that position the week prior to his arrest.
The investigation began when HSI was contacted by the parents of a 15-year-old male victim (MV) regarding an individual who solicited a nude photograph of the MV through a smartphone application. The investigation revealed that an individual, later identified as Bogomol, posing as a young female, “Crystal Williams,” had contacted MV. Their communication quickly turned sexual in nature. Bogomol sent nude images of a young female to MV, and he requested nude images of MV in return. MV sent one sexually explicit photograph of himself, but Bogomol requested another picture of MV’s nude body, including his face. MV declined to send any additional photos. Bogomol threatened to send the one photo that MV had sent to him to MV’s friends if he did not comply. MV still refused to send another photo, and he ended all communication with Bogomol. MV advised his parents, which led to the investigation.
On May 6, 2014, HSI special agents conducted a consensual interview with Bogomol at his residence. Two days later, a search warrant was obtained to search Bogomol’s cell phone and several files containing images of minors engaged in sexually explicit conduct were located.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. The government has 30 days to present the case to a federal grand jury for indictment.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Former Executive at Collin Street Bakery Pleads Guilty to Federal OffensesRead the Press Release
Defendant Sandy Jenkins Faces Up to 60 Years in Federal Prison
DALLAS — A former executive at the Collin Street Bakery (Bakery) in Corsicana, Texas, Sandy Jenkins, appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to several felony offenses stemming from his embezzlement of approximately $16 million from the Bakery. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. He was terminated on June 21, 2013, after the Bakery discovered the fraud.
Specifically, Jenkins, 65, who remains in federal custody, pleaded guilty to one count of mail fraud, one count of conspiracy to commit money laundering and one count of making a false statement to a financial institution. He faces the following maximum statutory penalties: 20 years in federal prison and a $250,000 fine on the mail fraud conviction; 10 years in federal prison and a $1 million fine on the conspiracy conviction; and 30 years in federal prison and $1.5 million fine on the false statements conviction. Jenkins agreed to enter a forfeiture money judgment against him of at least $16,649,786, and he agreed to pay full restitution to the Bakery for the entire scope of his criminal conduct. Sentencing is set for September 10, 2014, before U.S. District Judge Ed Kinkeade.
Jenkins’ wife, Kay Jenkins, 64, also of Corsicana, is charged in the same superseding indictment with one count of conspiracy to commit money laundering, six counts of money laundering and aiding and abetting, and two counts of making a false statement to a financial institution. She remains on bond pending trial, which is set for August 25, 2014.
According to plea documents filed in the case, beginning at least as early as December 2004, and continuing until his termination from the Bakery, Sandy Jenkins engaged in a massive scheme to defraud the Bakery. During that time, he embezzled more than $16 million from the Bakery, and he and his wife, Kay Jenkins, used that money to bank-roll a lavish lifestyle that included a vacation home in Santa Fe, New Mexico (purchased for approximately $658,000); hundreds of watches and pieces of jewelry worth millions of dollars; numerous luxury automobiles; and more than 200 trips on a private jet. While this scheme was ongoing, both Sandy and Kay Jenkins were well aware that Sandy Jenkins earned approximately $50,000 per year at the Bakery, as reflected on their joint tax returns, and Kay Jenkins did not work outside the home.
Sandy and Kay Jenkins knowingly conspired to engage in monetary transactions over $10,000 with property derived from Sandy Jenkins’ embezzlement from the Bakery. Sandy Jenkins admitted that between 2005 and 2013, he caused approximately 888 fraudulent checks to be drawn on the Bakery’s account and mailed to his personal creditors, resulting in approximately $16,649,786 in losses to the Bakery.
Sandy Jenkins further admitted that prior to this check-writing embezzlement scheme, he stole at least $114,342 from the Bakery’s petty-cash fund. He also admitted that as he was embezzling from the Bakery, he and his wife Kay used the money to fund an incredibly lavish and opulent lifestyle.
Sandy Jenkins also admitted that on December 29, 2009, he made a false statement in connection with the application for a mortgage loan to purchase a residence in Santa Fe. Sandy and Kay Jenkins listed a total monthly income of $25,000 when, in fact, as they well knew, their monthly income was far less than that.
The FBI has conducted the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
Local Lawyer Pleads Guilty to Felony OffenseRead the Press Release
Defendant Admitted Committing Perjury in Relation to a Bankruptcy Proceeding
DALLAS — Aaron Rene Ramirez, 43, of Plano, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of making a false statement under penalty of perjury, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Ramirez filed a voluntary petition under Chapter 13 of Title 11 in which he forged the signature of the listed debtor. He also falsely represented to the Court that the listed debtor had signed and authorized the filing of the petition and other bankruptcy related documents when he well knew that the petition was completely fraudulent and that the listed debtor did not authorize, nor have any knowledge of, the petition’s filing.
Aaron Ramirez faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, for which a date has not yet been set.
The U.S. Postal Inspection Service is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Four Arlington, Texas, Residents, Including A Social Security Administration (SSA) Employee, Arrested on Federal Charges Including Conspiracy to Defraud the SSARead the Press Release
DALLAS — Four Arlington, Texas, residents have been charged in a federal indictment, returned by a grand jury in Dallas earlier this month and unsealed yesterday, with conspiracy to defraud the United States, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lead defendant Carwin Shaw, 33, along with co-defendants Amanda Johnson, 35, and April Harvey, 36, were arrested on May 8, 2014, by special agents with the Social Security Administration – Office of Inspector General (SSA-OIG) and appeared before a U.S. Magistrate Judge. Each defendant pleaded not guilty and was released on bond. Deputy U.S. Marshals arrested the fourth defendant named in the indictment, Lanusha Lemmons, 25, on Friday. She made her initial appearance in federal court yesterday afternoon and pleaded not guilty. She was released on bond.
Specifically, each defendant is charged with one count of conspiracy to defraud the United States and one count of theft of government funds. A trial date of July 28, 2014, before Chief U.S. District Judge Sidney A. Fitzwater, has been set.
The indictment alleges that Shaw, a Service Representative employed by SSA in the Mid-Cities Field Office in Grand Prairie, Texas, accessed the SSA’s system, 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 accessed the system and waived the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor Social Security beneficiary. Other co-conspirators not named in the indictment are expected to plead guilty in the near future.
“The SSA-OIG will vigorously investigate and bring to justice those SSA employees and other individuals who intentionally defraud the SSA programs,” said Robert Feldt, Special Agent in Charge, SSA-OIG, Dallas Field Division.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine, and the theft of government funds count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
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Dallas Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
DALLAS — Donald Record, 52, of Dallas, appeared in federal court today and pleaded guilty to an Information charging one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, law enforcement received information from the Homeland Security Investigations (HSI) Cyber Center identifying an offender in the Dallas area. The investigation led law enforcement to secure and execute a search warrant at Record’s residence on March 6, 2014. Record admitted that he used his laptop computer to trade images of child pornography on the Internet, and that he looked at child pornography when he was at his home in Dallas and at work at SMU. He admitted his age preference was 8 – 10 year olds. He further admitted that he had approximately 100 images and one video of child pornography in his email account that he had received from others.
Record faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. He will remain on bond pending sentencing, which is set for September 3, 2014, before U.S. District Judge Ed Kinkeade.
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) HSI conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting.
“Ten-Percenter” Sentenced to One Year and One Day in Federal Prison on Tax and Tax Fraud Convictions Involving Winnings at Lone Star Park Horse-Racing TrackRead the Press Release
DALLAS — Willie L. Loveless was sentenced today by U.S. District Judge Barbara M. G. Lynn to one year and one day in federal prison and ordered to pay $25,826 in restitution, following his guilty plea last year to felony offenses stemming from his operation as a “ten-percenter” at the Lone Star Park horseracing track in Grand Prairie, Texas. Judge Lynn ordered Loveless to surrender to the Bureau of Prisons on July 1, 2014. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Loveless pleaded guilty in May 2013 to 20 of the 21 counts of the indictment — one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and 19 counts of fraud and false statements on Forms W-2G.
According to the Internal Revenue Code, gambling winnings, including those from horseracing bets, are taxable and must be reported on a gambler’s income tax return. A payer, such as Lone Star Park, is required to issue a Form W-2G, “Certain Gambling Winnings,” to a gambler if the gambler receives, among other types of winnings, $600 or more in gambling winnings, provided the payout is at least 300 times the amount of the wager. A winning ticket that would trigger the issuance of a Form W-2G is informally referred to by gamblers as an “IRS ticket.” The indictment also states that if an IRS ticket is for winnings greater than $5,000, a payer, such as Lone Star Park, is required to withhold and pay over to the IRS taxes in the amount of 25% of the winning ticket value. At Lone Star Park, there are special windows, known as “IRS Windows,” where an individual must cash an IRS ticket and complete and sign a Form W-2G.
“Ten-percenting,” according to the indictment filed in the case, is a practice that occurs at some gambling establishments in which a gambler arranges for another individual to cash the gambler’s IRS ticket, so that the gambler can avoid paying taxes on the winnings. The person cashing the ticket, often called a “ten-percenter,” completes the Form W2-G, falsely representing that he/she is the owner of the IRS ticket and the proper recipient of the winnings. Usually, according to the indictment, the person who cashes the ticket charges approximately ten percent of the winnings for the service.
Loveless admitted, according to the factual resume filed in the case, that in calendar years 2008, 2009 and 2010, he signed approximately 1445 Forms W2-G at Lone Star Park representing more than $1.76 million in winnings. On those forms, Loveless falsely attested that he was the only person entitled to any part of the winnings and each form signed by Loveless reflected his correct name, address and social security number.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Nicholas Bunch.
San Angelo Man Sentenced to 57 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Brandon Cory Boshears, 30, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 57 months in federal prison, following his guilty plea in February 2014 to one count of possession of child pornography. Boshears will surrender to federal custody on a date to be designated. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, Boshears admitted that in the course of using a file sharing program on his computer to search the Internet for depictions of minors engaged in sexually explicit conduct, he downloaded and viewed numerous images depicting minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from San Angelo Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Dallas Man Sentenced to More Than 17 Years in Federal Prison and Ordered to Pay Nearly $16 Million in Restitution for Role in Massive Stolen Identity Refund Fraud SchemeRead the Press Release
DALLAS — A Dallas man who was convicted at trial on multiple felony offenses related to his scheme to use stolen identity information to fraudulently obtain millions of dollars in tax refunds, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ogiesoba City Osula, 38, was sentenced by U.S. District Judge Barbara M. G. Lynn to 17 years and six months in federal prison and ordered to pay $15.9 in restitution. Osula was convicted, following a nearly weeklong trial in October 2013, on one count of conspiracy to commit wire fraud, mail fraud and bank fraud; seven counts of presenting fraudulent claims upon the U.S.; two counts of fraud in connection with access devices and aiding and abetting; and six counts of aggravated identity theft and aiding and abetting.
“The investigation and prosecution of individuals who engage in stolen identity refund fraud (SIRF) is a priority in this district,” said U.S. Attorney Saldaña. “We are committed to working with IRS Criminal Investigation and the FBI, as well as other federal, state and local law enforcement partners, to combat all SIRF-related crimes.”
Last month, co-defendants George Ojonugwa, 32, of Garland, Texas, and Eseos Igiebor, 43, of Richardson, Texas, were sentenced. Ojonugwa was sentenced to 174 months and ordered to pay $15,979,187 in restitution. Igiebor was sentenced to 96 months and ordered to pay $9,660,658 in restitution.
Late last year, Ebenezer Legbedion, 42, of Lagos, Nigeria, was sentenced to 40 months and ordered to pay more than $1 million in restitution, and Evelyn Nyaboke Haley, 34, of Dallas, was sentenced to 60 months and ordered to pay approximately $5.7 million in restitution.
Ojonugwa, Igiebor and Legbedion each pleaded guilty to one count of conspiracy to commit wire fraud. Igiebor also pleaded guilty to one count of aggravated identity theft. Haley pleaded guilty to one count of conspiracy to defraud the government with respect to claims.
“The defendants who perpetrated this scheme systematically defrauded the government and the American taxpayer,” said Richard Weber, Chief IRS Criminal Investigation. “The successful take down of this cross-country identity theft ring and the lengthy sentences for the perpetrators sends a clear message that the Internal Revenue Service stands steadfast in the fight against identity theft.”
The defendants conspired to defraud the U.S. by using stolen identity information and false information to create and electronically file false tax returns to claim refunds. The defendants had the refunds credited to stored value cards or bank accounts opened with stolen taxpayer identity information. Even while the defendants fraudulently obtained millions of dollars in tax refunds, they filed additional fraudulent returns, attempting to obtain millions more in tax refunds for their own use and benefit.
“The number of stolen identities and fraudulent tax refund monies in this case are staggering,” said Diego Rodriguez, Special Agent in Charge of FBI Dallas. “We will continue to work with our federal, state and local partners to identify those who turn to computer crime and intrusions in order to profit at the public’s expense, and to hold them responsible for the ruinous impact they impose on the individuals they victimize.”
During Osula’s trial, the government presented evidence that Osula and his coconspirators were sending information to and trading information with, a group running a similar scheme in Cincinnati, Ohio. On Nov. 8, 2011, police in a Cincinnati suburb questioned Osula and Ojonugwa, who were in a parked car after midnight with the leader of the Cincinnati ring. A drug detection dog alerted on the vehicle, and when it was searched, police found more than $300,000 in cash and money orders and numerous debit cards. During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.
According to documents filed in this case and statements made in court:
SIRF is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Individual Income Tax Return Form using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due. Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
While this investigation was conducted by IRS Criminal Investigation and the FBI, the U.S. Secret Service Office in Cincinnati, Ohio, and the U.S. Attorney’s Office for the Southern District of Ohio, provided substantial assistance.
Assistant U.S. Attorneys Mark Penley, Christopher Stokes and P.J. Meitl prosecuted.
Springtown, Texas, Man Indicted on Federal Hate Crime and Kidnapping Charges for Assault Based on Victim’s Sexual OrientationRead the Press Release
FORT WORTH, Texas — A federal grand jury returned a two-count indictment against Brice Johnson, 19, of Springtown, Texas, charging him with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person and with kidnapping, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Northern District of Texas and the FBI Dallas Division announced today.
On Feb. 19, 2014, a federal criminal complaint was unsealed charging Johnson with a hate crime. The indictment charges Johnson with the same hate crime offense and further charges that Johnson’s actions included kidnapping.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their chat communications, Johnson said that he was interested in engaging in sexual activity with A.K., and he invited A.K. to his home. Johnson gave A.K. his cell phone number and address, and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s house. Based on ligature marks on A.K.’s wrists, it appears that he was bound while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove A.K. to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name, and Johnson later stated that he was playing a prank on A.K. because of A.K.’s sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
An indictment merely establishes probable cause and Johnson is presumed innocent unless proven guilty. Each count carries a maximum statutory sentence of life in prison and a $250,000 fine.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
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Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud ConspiracyRead the Press Release
Physician Was Also Convicted of Lying to Medicare about House Calls
DALLAS – Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of the FBI Dallas Division and Special Agent in Charge Mike Fields of the Dallas office of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement today.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three counts of health care fraud. Eghobor was acquitted of the health care fraud counts brought against him. The home health care charges 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.
According to evidence presented at trial, 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.
Megwa was also convicted of 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 conspiracy to commit health care fraud count and each of the substantive health care fraud counts carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of making false statements relating to health care matters carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered. U.S. District Judge Ed Kinkeade is scheduled to sentence Megwa and Eghobor on September 10, 2014 and Ikhile on May 28, 2014.
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 1,700 defendants who have collectively billed the Medicare program for more than $5.5 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.
Dallas Couple Face up to Life in Federal Prison After Pleading Guilty to Conspiracy and Sex Trafficking of Children OffensesRead the Press Release
DALLAS — A couple from Dallas, Erin Patton and Keith Williams, aka “Chucky Blood,” both 24, have pleaded guilty to their respective roles in sex trafficking a child, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Patton pleaded guilty to a superseding information charging one count of conspiracy to commit sex trafficking of children. Her boyfriend, Williams, pleaded guilty in February 2014 to one count of sex trafficking of children. Both Patton and Williams face a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge David C. Godbey will sentence the defendants this summer.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Armed Bank Robber Sentenced to Serve More Than 24 Years in Federal Prison for Robbing Banks in Lubbock and Amarillo in May 2013Read the Press Release
LUBBOCK, Texas — Russell Eugene Heath, 45, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to serve a total of 295 months in federal prison, consecutive to his 24-month supervised release revocation, for his role in the takeover style robberies of two banks in May 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Heath pleaded guilty in November 2013 to one count of aggravated bank robbery and one count of possessing a firearm in furtherance of a crime of violence. Co-defendant Gabriel Tenorio, 31, also of Lubbock and the getaway driver in the robberies, pleaded guilty to one count of aggravated bank robbery and was sentenced in December 2013 to 140 months in in federal prison.
Heath’s aggravated bank robbery conviction stems from the May 1, 2013, robbery of Lubbock National Bank, located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying a firearm, entered the bank and pointed the gun at tellers, yelling at them to give him money. Heath jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio.
Heath’s conviction for possessing a firearm in furtherance of a violent crime stems from the May 20, 2013, robbery of FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas. In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money. He then ran from the bank into a waiting vehicle, driven by Tenorio.
The FBI, Lubbock Police Department, Amarillo Police Department and the Lubbock County Sheriff’s Office investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Father and Daughter Bank Robbers SentencedRead the Press Release
DALLAS — Convicted bank robbers, John Charles Applewhite and his daughter, Shelby Dawn Applewhite, have been sentenced for their roles in robbing three banks in Dallas in May 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
John Applewhite, 50, who pleaded guilty in October 2013 to three counts of bank robbery, was sentenced yesterday by U.S. District Judge David C. Godbey to serve a total of 184 months in federal prison. He was on supervised release for another bank robbery conviction at the time he reoffended.
Shelby Applewhite, 23, was sentenced in March 2014 to serve 60 months in federal prison. She pleaded guilty in November 2013 to one count of conspiracy to commit those three bank robberies.
The defendants admitted that they committed the following bank robberies in Dallas:
5-01-2013 Citibank
14909 Coit Road5-10-2103 Veritex Community Bank
14885 Preston Road5-15-2013 ViewPoint Bank
5941 Forest LaneAccording to documents filed in the case, for each of these robberies, John and Shelby Applewhite drove in separate vehicles to the vicinity of the respective banks with the specific intent to commit bank robbery. They switched vehicles with each other and altered a license plate prior to each bank robbery to facilitate the bank robbery and avoid detection by law enforcement. Prior to each robbery, Shelby Applewhite entered the bank to learn the layout of the bank’s interior and obtain information about bank personnel, to include whether or not there was a security guard on duty. She reported all the information to John Applewhite who used it to commit the bank robbery.
In each bank robbery, John Applewhite disguised his identity by wearing a hoodie, scarf or mask, sunglasses and gloves. He also used a dangerous weapon that he pointed at tellers, causing them to fear for their lives.
The FBI and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Keith Robinson prosecuted.
Dallas Psychologist, Who Treated Disabled Federal Workers, Is Sentenced to 36 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was sentenced today by U.S. District Judge Jorge A. Solis to 36 months in federal prison and ordered to pay approximately $1.8 million in restitution. In January 2014, Wolf pleaded guilty to one count of health care fraud stemming from his treatment of disabled federal workers and was remanded into custody at that time. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
According to documents filed in the case, Wolf provided psychotherapy to individuals, including civilian employees of the federal government who sustained on-the-job injuries or employment-related occupational illness. The Federal Employees Compensation Act (FECA) provides disability compensation benefits and payment for medical and rehabilitation care for federal civilian employees who sustain on-the-job injuries or employment-related occupational illness. The FECA is a health care benefit program administered by the U.S. Department of Labor (DOL), Office of Workers Compensation Program.
As part of his scheme to defraud a health care benefit program, Wolf filed claims for payment of services that were never rendered and for services that were rendered in far less quantities than billed.
For example, through his billings, Wolf claimed he provided therapy for one particular injured federal employee, from January 2008 through mid-2013, seven days a week, when he in truth and fact he would only provide it once or twice a week, for 60 minutes. He also falsely claimed through billings that he provided therapy to this individual on holidays and on Sundays, and that on multiple days, he provided eight hours of therapy, per day, for this patient. Wolf also falsely claimed, through billings, that he provided four-eight hours of explanations to this patient’s family and employers multiple times a week, when in fact, he only offered occasional phone or in-office consultation with the family.
During this time period, the total amount billed by Wolf, on behalf of this patient, was more than $1.9 million. Of the amount billed, Wolf was paid more than $1 million.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General conducted the investigation. Assistant U.S. Attorney P. J. Meitl prosecuted.
Federal Grand Jury Indicts Amarillo Man on Drug and Firearms ChargesRead the Press Release
AMARILLO, Texas— An Amarillo, Texas, man remains in federal custody following his arrest on an indictment charging several felony drug and firearms offenses. Michael Chad Kennedy, 30, appeared before U.S. Magistrate Judge Clinton E. Averitte on those charges yesterday and was ordered detained pending a detention hearing and arraignment set for tomorrow. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Specifically, the 10-count indictment charges Kennedy with four counts of possession with intent to distribute methamphetamine; four counts of being a felon in possession of a firearm; one count of possession of an unregistered firearm; and one count of possessing a firearm in relation to a drug trafficking crime. A forfeiture allegation is also included in the indictment that would require the defendant, upon conviction, to forfeit all firearms and ammunition involved in or used in the commission of the offenses.
The indictment alleges that Kennedy possessed various amounts of methamphetamine, with the intent to distribute it, on February 23, 2013, May 16, 2013, November 27, 2013, and January 25, 2014. The indictment further alleges that Kennedy, a previously convicted felon, possessed firearms on May 16, 2013, June 1, 2013, and November 27, 2013, and that one the firearms he possessed on June 1, 2013 was an illegal sawed-off shotgun. The indictment further alleges that on November 27, 2013, Kennedy possessed a firearm in furtherance of a drug trafficking crime.
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 offenses carry the following maximum statutory penalties, per count: possession with intent to distribute methamphetamine – not less than five years or more than 40 years in federal prison and a $5,000,000 fine; felon in possession of a firearm – 10 years in federal prison and a $250,000 fine; possession of an unregistered firearm – 10 years in federal prison and a $250,000 fine; and possession of a firearm in furtherance of a drug trafficking crime – five years up to life in federal prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Amarillo Police Department are conducting the investigation. Assistant U.S. Attorney Timothy Hammer is in charge of the prosecution.
Dallas Tax Return Preparer Admits Preparing Fraudulent Tax ReturnsRead the Press Release
Defendant Was a Fugitive for Six Years
DALLAS — A Dallas-area tax return preparer who was indicted in 2007 on federal felony charges stemming from the operation of that business and who remained a fugitive until November 2013, pleaded guilty in federal court in Dallas today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ousmane Sow pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return. He faces maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. A sentencing date was not set.
According to the factual resume filed in the case, from 2003 to 2005, Sow and co-defendant Tichafara Mpariwa provided tax preparation services through a business they jointly owned and operated under the name of DSL Tax Services, LLC., located on Forest Lane in Dallas. In 2004, Sow opened a second location of DSL on Airport Freeway in Irving, Texas. Both Sow and Mpariwa were the Electronic Return Originators at the Dallas and Irving office locations of DSL.
From 2003 to 2005, according to the factual resume, Sow knowingly prepared and caused to be filed U.S. individual tax returns, along with supporting schedules and forms, which contained materially false credits and deductions to fraudulently increase the taxpayer clients’ refunds. This included the use of false business expenses and the use of false education expenses to create a false education credit, thus increasing the taxpayer client’s refund.
Defendant Mpariwa remains a fugitive.
Internal Revenue Service – Criminal Investigation is leading the investigation. The U.S. Department of State’s Bureau of Diplomatic Security assisted in securing the return of Sow to the U.S. Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Dallas Man Associated with Anonymous Hacking Group Pleads Guilty to Federal ChargesRead the Press Release
Pleas Resolve All Criminal Cases Pending Against Defendant
in Northern District of TexasDALLAS — Barrett Lancaster Brown, who has been associated with the hacking group, Anonymous, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to three separate offenses that essentially resolve all three criminal indictments pending against him in the Northern District of Texas (NDTX), announced U.S. Attorney Sarah R. Saldaña.
Plea negotiations between the United States Attorney’s Office in the NDTX and Brown resulted in filing of a plea agreement and factual resume on April 2, 2014. In the documents unsealed last week and in open court this morning, Brown, 32, of Dallas, admitted his guilt and waived his right to a speedy and public trial.
Pursuant to the plea agreement, Brown pleaded guilty this morning to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant. In court this morning, Brown assured the Magistrate Judge that he was pleading guilty because he was guilty, and not for any other reason.
Brown faces a maximum statutory penalty of 60 months in federal prison and a $250,000 fine on the threat conviction; 30 months in federal prison and a $125,000 fine on the accessory after the fact conviction; and 12 months in federal prison and a $100,000 fine on the interference with the execution of a search warrant conviction.
According to the stipulations set forth in the factual resume, Brown understands that in determining the appropriate sentence, the District Court may consider all the facts underlying and relevant to the offenses of conviction. The Court is not limited to those facts set out in Brown’s stipulated factual resume. Sentencing is set for August 18, 2014, before U.S. District Judge Sam A. Lindsay.
The Dallas office of the FBI investigated, and the U.S. Attorney’s Office in the NDTX prosecuted.
(Download Plea Agreement)
(Download Factual Resume)
Federal Jury Convicts Sweetwater Man for Role in Heroin Distribution ConspiracyRead the Press Release
ABILENE, Texas — Following a three-day trial before U.S. District Judge Jorge A. Solis, in federal court in Abilene, Texas, a jury has convicted Ernest Martenez Melendez, 63, of Sweetwater, Texas, on an indictment charging one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melendez faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine. A sentencing date has not yet been set before Judge Solis.
All of Melendez’s six co-defendants in the case have pleaded guilty to their roles in the conspiracy.
The government presented evidence at trial that for a period of several months in 2013, Melendez traveled to Fort Worth, Texas, and obtained ounce quantities of black tar heroin, which he then transported back to Sweetwater, re-packaged in smaller quantities and distributed to numerous individuals there.
The Texas Department of Public Safety – Criminal Investigations Division and the Bureau of Alcohol, Tobacco and Firearms investigated. Assistant U.S. Attorneys Juanita Fielden and Justin Cunningham are prosecuting.
Former Office Manager at Red Creek Municipal Utility District Is Sentenced to 21 Months in Federal Prison for Embezzling Funds from DistrictRead the Press Release
LUBBOCK, Texas — A San Angelo, Texas, woman, who worked for a water utility service company in unincorporated Tom Green County was sentenced for embezzling approximately $43,000 from her employer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melissa Manda Herrera, 38, was sentenced yesterday by U.S. District Judge Sam R. Cummings to 21 months in federal prison and ordered to pay $85,790 in restitution, following her guilty plea in December 2013 to one count of theft concerning federally funded programs. Judge Cummings remanded her into the custody of the U.S. Marshal.
Herrera worked as the Office Manager of the Red Creek Municipal Utility District from April 2003 through February 2012. The District, which receives federal financial assistance from the U.S. Department of Agriculture, was established in 1992 to provide water utility services to its customers. It is overseen by an elected, uncompensated board of directors and it contracts with Concho Rural Water Corporation to manage the District’s water distribution system, conduct monthly readings of customers’ meters and maintain the District’s customer billing records, which includes preparing and mailing monthly bills and posting customer payments based on information provided by the District’s Office Manager. The District employs only one person – the part-time Office Manager.
As part of her duties, Herrera was responsible for establishing customer accounts, handling customer payment issues and collecting all customer payments. Herrera admitted that while she was Office Manager for the District, she did not include all customer payments in the daily deposits made at the bank, and in fact, kept customers’ cash payments for her own benefit.
The FBI, Tom Green County Sheriff’s Office and San Angelo Police Department investigated. Assistant U.S. Attorney Ann Roberts led the prosecution.
Bank Robber Sentenced to 188 Months in Federal PrisonRead the Press Release
Defendant Robbed Prosperity Bank on Kiest Boulevard in Dallas in October 2013
DALLAS — Ruling that the defendant was a career offender, today, U.S. District Judge Jane J. Boyle sentenced David Asher Agee, 26, of Dallas, to 188 months in federal prison, following his guilty plea in January 2014 to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Agee admitted that he robbed Prosperity Bank, located at 333 West Kiest Boulevard in Dallas, on October 9, 2013. Early that afternoon, Agee entered the bank, approached a teller’s window and handed the teller a piece of paper. Agee told the teller that he needed to make a deposit. The teller unfolded the piece of paper that read, in part, “I have a gun give me the money.” Agee took the box in which the teller had placed cash from the cash drawer and left the bank. The ensuing investigation by the FBI and the Dallas Police Department identified Agee as the robber and he was arrested on a federal complaint in early November 2013.
Assistant U.S. Attorney Keith Robinson prosecuted the case.
Dallas Man Who Ran A Marijuana Distribution Conspiracy Is Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man who pleaded guilty in July 2013 to his role as a leader of a marijuana distribution conspiracy operating in north Texas was sentenced this morning in federal court in Dallas. Sylvespa Eugene Adams, aka “Sylvesta Adams, Pa and Paw,” 31, was sentenced by U.S. District Judge Sam A. Lindsay to 210 months (17.5 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Adams will also be required to forfeit the proceeds of his criminal activity, which includes four houses in Dallas and seven luxury vehicles including a Bentley, Porsche and Mercedes.
Adams and 21 codefendants were charged in the drug conspiracy that was outlined in a federal indictment returned by a grand jury in Dallas in December 2012. More than half of the defendants were in custody following an operation in January 2013 conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service Criminal Investigation (IRS-CI); the Dallas High Intensity Drug Trafficking Areas (HIDTA); the Desoto, Dallas, Balch Springs, Arlington and Midlothian Police Departments; Dallas County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Dallas County District Attorney’s Office.
During the course of this Organized Crime Drug Enforcement Task Force (OCDETF) operation, law enforcement executed federal and state search warrants that resulted in the seizure of approximately 25 pounds of hydroponic marijuana, more than 600 marijuana plants, 10 vehicles and five firearms. To date, 17 defendants have pleaded guilty to their role in the conspiracy. Fourteen of those defendants were sentenced to federal prison terms ranging from 7 months to 180 months. The remainder will be sentenced in the next few months.
Adams admitted that on several occasions during the conspiracy, which began in January 2010, he conspired with others to possess with the intent to distribute and to distribute 100 kilograms or more of marijuana. According to plea documents filed, couriers were sent to Tucson, Arizona, to pick up marijuana and transport it back to Dallas in checked suitcases on commercial airlines. Adams admitted the marijuana was stashed at his house and another house on Red Wing Drive in Dallas. One residence on Red Wing Drive was used to grow marijuana plants that would be harvested for distribution to customers.
Adams also admitted that during the conspiracy, he used Lions Entertainment L.L.C., Club Copa and various rental properties to conceal and disguise the nature, location, source, ownership and control of the drug proceeds by depositing them in a co-defendant’s bank account.
Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution, and Assistant U.S. Attorney John de la Garza handled the forfeiture.
Serial Bank Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Serial bank robber Luis de la Garza, 59, of Farmers Branch, Texas, dubbed the “Mesh Mask Bandit,” was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 240 months (20 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admitted committing the five below-listed bank robberies, he stipulated he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.