Northern District of Texas
Press releases recorded for this federal judicial district.
Amarillo Man Indicted by Federal Grand Jury for Robbing Texas Plains Federal Credit UnionRead the Press Release
AMARILLO, Texas — James Aaron Sims, 23, of Amarillo, Texas has been charged by a federal grand jury with one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that on February 3, 2014, Sims robbed the Texas Plains Federal Credit Union, located at 804 S. Madison in Amarillo, Texas. Sims has been in custody since his arrest a few days after the robbery.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, if convicted, the maximum statutory penalty for the offense of bank robbery, as charged, is 20 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI and the Amarillo Police Department. Assistant U.S. Attorney Jeffrey R. Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Former Lubbock Resident Indicted by Federal Grand Jury for Production and Possession of Child PornographyRead the Press Release
LUBBOCK, Texas — Jeremy Daniel Labrec, 23, formerly of Lubbock, Texas, was charged in a federal indictment, returned late yesterday by a grand jury in Lubbock, Texas, with one count each of production and possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Count One of the indictment alleges that in February 2011, Labrec persuaded, induced and used a minor male, under age 18, to engage in sexually explicit conduct so that Labrec could photograph him.
Count Two of the indictment alleges that between February 5, 2011, and March 17, 2011, when the FBI executed a search warrant at his residence in Lubbock, Labrec possessed a hard disk drive containing child pornography.
According to the Bureau of Prisons, Labrec is currently incarcerated at FCI Otisville, New York. It is unknown when he will appear in Lubbock federal court to face these charges.
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 possession count, not more than 10 years in prison. 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 investigation is being conducted by the FBI. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former Civilian Translator Embedded with Military Units in Afghanistan Pleads Guilty to Federal ChargesRead the Press Release
SHERMAN, Texas – A 39-year-old McKinney, Texas woman has pleaded guilty to federal violations stemming from her employment as a translator embedded with several U.S. military units in Afghanistan, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and U.S. Attorney John M. Bales of the Eastern District of Texas.
Farida Yusufi, a U.S. citizen of Afghan origin, pleaded guilty to eight counts of a nine-count indictment, unsealed in August 2013, today before U.S. Magistrate Judge Amos Mazzant. Specifically, Yusufi pleaded guilty to five counts of making false statements to a federal agency; two counts of altering a military, naval or official pass; and one count of theft of government records. She has been in federal custody since her arrest in August 2013 by special agents with the FBI’s North Texas Joint Terrorism Task Force (JTTF).
According to documents filed in the case, Yusufi received a final Secret security clearance in August 2008, but it was suspended on October 1, 2009, and it was never reinstated. Despite those facts, in an interview conducted by FBI and U.S. Army counterintelligence agents in Afghanistan in September 2011, Yusufi falsely told the federal agents that she possessed a Top Secret security clearance “in process,” which she knew was a false and misleading statement. In that interview, to mislead the agents who were trying to determine whether she was gaining access to classified information at a U.S. base in Afghanistan without authorization, she also falsely told them that she had never been fired from a job. In fact, she had previously been fired as a translator while working overseas for the U.S. military.
On March 22, 2012, Yusufi made false statements to FBI agents about whether she had provided false information on her security clearance application form and whether she had actually been employed by a particular U.S. government contractor. She also made those false statements to mislead the FBI agents as to her actual statements to other federal agents and her employment history.
On February 23, 2012, Yusufi again made a false statement to federal agents by stating that she had not applied for a position as a role player for a U.S. government contractor since her return from Afghanistan in September 2011, when, in fact, she had applied for such a position in June 2011 and inquired again about that application upon her return from Afghanistan earlier in September.
On January 18, 2010, Yusufi falsely made, altered and tampered with an official military or government pass, that is a Letter of Authorization issued by or under the authority of the U.S. government, and on March 13, 2013, Yusufi possessed an altered Letter of Authorization. A Letter of Authorization is the equivalent of a set of military orders for a government contractor, such as a contract linguist being deployed overseas, and it enables access to military transportation and military bases. The Letters of Authorization that Yusufi altered and possessed were never issued to her; rather, the original Letter of Authorization was issued to her former spouse.
On March 13, 2013, the FBI executed a search warrant at Yusufi’s home in McKinney. On her computer, the FBI discovered sensitive U.S. military records that she obtained while embedded with the U.S. military and that she had no authority to possess or retain. She admits that she knew she had no right to possess or keep those records, and that she had converted them to her own use.
Statutorily, Yusufi faces a maximum penalty of five years in federal prison and a $250,000 fine for each of the false statement and altering a military, naval or official pass counts, and 10 years in federal prison and a $250,000 fine for the one count of theft of government records. However, according to the plea agreement, if acceptable to the Court, the parties have agreed that a sentencing range of 33 to 41 months in federal prison is an appropriate sentencing range. Yusufi also agreed to pay a $50,000 fine. Yusufi acknowledges that she may not withdraw her plea should the Court choose not to follow these sentencing recommendations. A sentencing date was not set.
The case was investigated by the FBI’s North Texas JTTF.
Assistant U.S. Attorneys Errin Martin and Mark Penley, of the U.S. Attorney’s Office in Dallas, and Assistant U.S. Attorney Andrew Stover, of the U.S. Attorney’s Office in Plano, Texas, are prosecuting.
Federal Grand Jury Indicts Slaton, Texas, Man for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Dale Wray Fulford, 77, of Slaton, Texas, has been charged in a federal indictment with one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Fulford is currently in custody on related state charges. A date has not yet been set for him to make his initial appearance in federal court.
The indictment alleges that between February 2013 and early February 2014, Fulford used, persuaded, induced and enticed a female minor, under age 18, to engage in sexually explicit conduct that he recorded on a digital camera.
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 is not less than 15 years or more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Federal Grand Jury Indicts Seven in Cocaine Distribution ConspiracyRead the Press Release
One Defendant Also Faces Firearms Charges
LUBBOCK, Texas— A federal grand jury returned a four count indictment late yesterday charging seven defendants for their roles in a conspiracy to distribute cocaine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the following defendants is charged with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine:
Manuel Carrillo Ortiz, 38
Martin Cardona Gutierrez, 46
Refugio Navarrete Gutierrez, 34
Efren Fabela Lopez, 34
Gisselle Lujan, 26
Jerardo Salcedo Garcia, 27
Javier Lopez Lujan, 47
Defendants Manuel Ortiz, Martin Gutierrez, Refugio Gutierrez and Efren Lopez are also each charged with one substantive count of possession with intent to distribute five kilograms or more of cocaine and aiding and abetting.
Defendant Martin Gutierrez is also charged with one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime.
All of the defendants, except for Javier Lopez Lujan, are in custody. Javier Lopez Lujan remains at large. A date has not yet been set for them to make their initial appearance in federal court.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalties are: conspiracy - life in prison and a $10 million fine; possession - life in prison and a $10 million fine; felon in possession of a firearm - 10 years in prison and a $250,000 fine; and possession of a firearm in furtherance of a drug trafficking crime - life in prison and a $250,000 fine.
The investigation is being conducted by the Lubbock County Sheriff’s Office, Ector County Sheriff’s Office, Midland Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Border Patrol.
Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Former Youth Pastor at Church in Garland, Texas, Sentenced to 144 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Joshua Earls, 30, of Garland, Texas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 144 months (12 years) in federal prison and a lifetime of supervised release, following his guilty plea in October 2013 to one count of receipt of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Earls admitted that while he was a youth pastor, he established a relationship with female minor at his church, “Jane Doe,” who at the time was 16-years-old.
In April 2013, Jane Doe disclosed the nature of her relationship with Earls to the Garland Police Department, and on April 9, 2013, law enforcement executed a search of Earl’s residence and seized several computers. An examination of those computers resulted in the identification of well over 600 images of child pornography, including images of Jane Doe.
Earls admitted that he exchanged nude pictures and videos with Jane Doe and possessed videos of her engaging in sexually explicit conduct, at his request. A forensic examination of Earls’ cell phone revealed text messaging between he and Jane Doe, in which he solicits, encourages and persuades her to produce pornographic images of herself and send them to 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.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Garland Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Former Arlington, Texas, Police Officer Sentenced to One Year and One Day in Federal PrisonRead the Press Release
Unlawfully Accessed and Provided Law Enforcement Sensitive Information
to a Known Drug DealerDALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, a former officer with the Arlington Police Department (APD), was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 12 months and one day in federal prison, following his guilty plea in October 2013 to an Indictment charging exceeding access to a protected computer. He was ordered to surrender to the Bureau of Prisons on April 1, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
As an officer with the APD, Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC), the National Crime Information Center (NCIC) and the Texas Law Enforcement Telecommunication System (TLETS), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information. Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy.
Prior to December 2011, Kantzos knew that “Person A” was an individual who trafficked in anabolic steroids. In fact, Kantzos had purchased anabolic steroids from Person A for both his own use and for the use of other APD officers. In November or December 2011, Person A suspected that he was under police surveillance.
On December 29, 2011, Person A saw a motor vehicle parked near his house and asked Kantzos to “run” the license plate because he was concerned that law enforcement was watching him and he didn’t want to get arrested for trafficking anabolic steroids. Kantzos, without a legitimate law enforcement purpose, used the computer in his patrol car, while he was on duty, to access the Texas Department of Public Safety’s (DPS) protected computer through TLETS, under the guise of conducting a stolen vehicle investigative inquiry. His computer inquiry automatically searched for information about that motor vehicle contained in law enforcement computers located in Texas and in other states, such as the NCIC computer.
Kantzos admitted he knew the use of this computer for this purpose exceeded authorized use. After Kantzos obtained the information about the vehicle, he relayed the information to Person A to help Person A avoid arrest, apprehension or disruption while Person A unlawfully trafficked in anabolic steroids. Person A recognized the name of the registered vehicle owner as a law enforcement officer. Thereafter, Person A decided to “lay low” to avoid arrest by law enforcement.
The case was investigated by the FBI and the Texas Ranger Division of the Texas DPS. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Mark Penley prosecuted.
Grapevine Man Sentenced to 72 Months in Federal Prison for Possessing Firearm While Under Protective OrderRead the Press Release
DALLAS — Raul Mirabal, 42, of Grapevine, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 72 months in federal prison following his guilty plea in June 2013 to one count of possession of a firearm by a prohibited person, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Grapevine Police Department responded to a potential domestic disturbance on January 5, 2013. Responding officers discovered that Mirabal possessed a Desert Eagle .50 caliber handgun in his backpack. At the time, Mirabal was subject to a protective order issued in May 2012 by a Tarrant County court. Among other things, the protective order restrained Mirabal from harassing, stalking or threatening particular individuals or engaging in other conduct that would place particular individuals in reasonable fear of bodily injury; and explicitly prohibited the use, attempted use, or threatened use of physical force against particular individuals. Federal law prohibited Mirabal from possessing firearms because he was under the protective order.
The case was investigated by the Grapevine Police Department and Hurst Police Department. Assistant U.S. Attorneys Brian McKay and Jason Schall prosecuted.
Drug Trafficker Sentenced to 20 Years in Federal Prison on Firearm ChargesRead the Press Release
Defendant Shot and Killed Man During Drug Transaction
DALLAS — Jose Inez Zapata, 33, of Dallas, was sentenced this morning, by U.S. District Judge David C. Godbey, to 240 months in federal prison, following his guilty plea in August 2013 to two federal felony firearm charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Zapata pleaded guilty to one count of using and discharging a firearm during a drug trafficking crime and one count of being a felon in possession of a firearm.
On April 4, 2011, Zapata met “R.J.” at an apartment complex parking lot in Dallas to conduct a 30-pound marijuana transaction. Zapata shot and killed “R.J.” and then fled the location.
Then, on January 11, 2012, an officer with the Mesquite Police Department executed a traffic stop on a Ford truck that had been reported stolen a few days earlier from Baylor Hospital. Zapata, the driver of the truck, initially slowed down, but then led police on a high-speed chase, at speeds of up to 100 miles per hour, which lasted several minutes. Zapata eventually stopped the truck and fled on foot, running across Highway 80. Zapata charged the officer and attempted to take weapons from the officer’s gunbelt, but he was eventually handcuffed and arrested. Two firearms were located in the truck along with several other stolen items and counterfeit U.S. currency. Zapata was a convicted felon, having felony convictions in Dallas County for aggravated robbery and aggravated assault on a public servant.
The case was investigated by the Dallas Police Department, the Mesquite Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Secret Service. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Seven Metroplex Residents Charged in ID Theft ConspiracyRead the Press Release
One Defendant Allegedly Used Her Position at Fannie Mae to Steal Personal Identifying
Information of Approximately 1,100 Fannie Mae CustomersDALLAS, Texas — A total of seven metroplex residents have been charged in a 13-count superseding indictment, just unsealed, with various offenses related to an identity theft scheme they ran from October 2009 to July 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In addition to each being charged with one count of conspiracy to commit bank fraud, the defendants are also each charged with the following:
Anthony Minor, 25, of Cedar Hill, is also charged with six counts of bank fraud; one count of conspiracy to commit fraud and related activity in connection with identification documents; one count of using or trafficking in unauthorized access device; and two counts of aggravated identification theft.
Tilisha Morrison, 24, of Dallas, is also charged with three counts of bank fraud; one count of conspiracy to commit fraud and related activity in connection with identification documents; and one count of producing, using, trafficking in a counterfeit access device.
Katrina Thomas, 40, of Garland, who worked as an Underwriting Support Specialist for the Federal National Mortgage Association (Fannie Mae), is also charged with one count of conspiracy to commit fraud and related activity in connection with identification documents and one count of producing, using and trafficking in a counterfeit access device.
Kario Butler, 28, of Mansfield; Karen Mendoza, 43, of Dallas and Wichita Falls; Cyrus Pritchett, 24, of Dallas; and Jamilah Karriem, 20, of Dallas and Desoto, are also each charged with one count of bank fraud.
Minor and Morrison were originally charged in an indictment returned by a federal grand jury in October 2013. Minor remains in federal custody.
According to the indictment, the defendants stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
Thomas, through her employment at Fannie Mae and her access to customer files, stole the personal identifying information of approximately 1,100 Fannie Mae customers and sold or provided the information to Minor or Morrison, knowing it was illegal and knowing that the information would be used to commit bank fraud.
Minor and Morrison recruited co-conspirators (“runners”), including Butler, Mendoza, Pritchett and Karriem, who would either use their own existing bank account, or would allow their identities to be used, to create new bank accounts to further the scheme. They would either directly access the victim-customer’s account or open a joint account in the names of the runner and the victim-customer, without the victim-customer’s knowledge or consent. Minor and Morrison would also use the banks’ telephone and online banking systems to transfer funds from the compromised victim-customer’s account into an account controlled by one of the co-conspirators. They would then direct the runner to withdraw the money and Minor often drove the runner to the bank or automated teller machine to perform the transaction.
According to the indictment, the defendants used the funds or stolen information to rent hotel rooms and purchase luxury goods. In fact, in July 2013, when Minor was arrested in his room at a luxury hotel in Dallas, which he had rented using another’s identification, he was in possession of several false identities and counterfeit checks as well as a computer containing a template for Texas Department of Public Safety Temporary Driver’s License and counterfeit checks.
In late June 2013, unidentified co-conspirators burglarized a furniture store in Farmers Branch, Texas, and stole a safe containing a passport, social security card and birth certificate of a particular individual. On July 1, 2013, Morrison used that identification to rent an apartment in Mesquite.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, upon conviction, the conspiracy to commit bank fraud count, as well as each of the bank fraud counts, carry a maximum statutory penalty of 30 years in prison and a $1 million. The conspiracy to commit fraud and related activity in connection with identification documents count carries a maximum statutory penalty of 15 years in prison and a $250,000 fine. The producing, using or trafficking in a counterfeit access device counts each carry a maximum statutory penalty of 10 years in prison and a $250,000 fine. The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison, to be served consecutively to any other term or imprisonment, and a $250,000 fine.
The case is being investigated by the U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor are prosecuting.
(Download Factual Basis)
Fort Worth Man Sentenced to Nearly 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, was sentenced today by U.S. District Judge John McBryde to 262 months in federal prison following his guilty plea in October 2013 to one count of production of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct. Jane Doe was younger than 16 years old at the time.
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 the Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem prosecuted.
Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Abilene Dentist Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $58,000 in Restitution in Medicaid Fraud SchemeRead the Press Release
Defendant Worked as a Pediatric Dental Provider at Kool Smiles
and Personally Benefitted From SchemeABILENE, Texas — Dr. Tuan Truong, aka “Terry Truong,” of Abilene, a dentist who practiced pediatric dentistry at Kool Smiles in Abilene, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 18 months in federal prison. Truong pleaded guilty in August 2013 to an Information charging one count of making a false statement in connection with a health care matter. Truong was also ordered to pay $57,969 in restitution to Kool Smiles. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in summer 2008, Truong began working for Kool Smiles, which paid him a base salary and offered opportunities for bonuses based on additional procedures he performed in excess of daily targets set by Kool Smiles management. Dentists were required to use professional judgment in the treatment and management of patient care.
Beginning on June 30, 2008, and continuing to July 10, 2009, Truong made false entries on Kool Smiles patient records, purporting to have performed dental services for Medicaid beneficiaries that he well knew he had not performed. As a result of the false and fraudulent statements and entries Truong made, Kool Smiles billed Medicaid for procedures that were not performed. In fact, during this time period, Truong made false entries in the Kool Smiles electronic database that caused Kool Smiles to bill and receive payment from Medicaid (and Medicaid affiliates) of more than $120,000, but less than $200,000 for services he claimed to have performed, but did not.
In addition, according to the factual resume filed, Truong personally benefitted from this scheme by receiving bonuses of $32,749 to which he would not have been otherwise entitled. The court also ordered Truong to reimburse Kool Smiles for the legal fees incurred during the investigation.
Kool Smiles has cooperated throughout the investigation, which was conducted by the Medicaid Fraud Control Unit of the Office of the Attorney General for the State of Texas and the FBI. Assistant U.S. Attorney Amy Burch, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
Federal Jury Convicts Pharmacist, Physician’s Office Manager and Three Drug Dealers in “Pill Mill” OperationRead the Press Release
DALLAS — A federal jury returned guilty verdicts late this afternoon against five individuals convicted for their roles in a pill mill conspiracy that operated in Dallas since 2010. The trial began Monday, January 27, 2014, in Dallas federal court before U.S. District Judge Barbara M. G. Lynn. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the jury convicted each of the below-listed defendants on one count of conspiracy to unlawfully distribute controlled substances:
Lisa L. Hollier, 44, of Sunnyvale, Texas
Jose L. Martinez, 54, of Flower Mound, Texas
Joesephis Austin, 60, of Dallas
Patricia A. Bryant, 59, of Dallas
Walter R. Hudspeth, 62, of Dallas
According to evidence in the case, Austin, Bryant and Hudspeth operated as “dealers” who would recruit “patients,” often from homeless shelters, and drive them in groups to Padron Wellness Clinic (PWC), located at 1000 Emerald Isle Drive in Dallas. Co-conspirators physician Nicolas Padron, 54, of Garland, Texas, and Martinez opened PWC in the fall of 2010. PWC operated not as a legitimate medical facility, but as a place to unlawfully obtain controlled substances, such as hydrocodone.
Dr. Padron and Martinez, the PWC’s business manager, charged cash only for office visits in which Dr. Padron would do little to no physical examination and prescribe a “cocktail” of controlled substances, including hydrocodone, a Schedule II controlled substance and alprazolam, a Schedule IV controlled substance. Generally, they charged $250 for a new patient office visit and $185 for an established patient visit.
Typically, the dealers set appointments on PWC’s schedule and brought in multiple patients at a time. The dealers escorted the patients into the clinic, coordinated with Martinez and paid cash for the patients they brought. Dr. Padron would sometimes see two or more patients at a time in one exam room. Patient visits were short in duration and patients normally left with a 30-day prescription of 120 pills of hydrocodone and 30-90 units of alprazolam. Most of the patients were diagnosed by Dr. Padron with lower back pain and anxiety, without regard of their true condition; thus these prescriptions were medically unnecessary and outside the scope of professional practice.
Dr. Padron, who is awaiting sentencing, testified at trial. He pleaded guilty in September 2013 to his role in this conspiracy. He faces a maximum statutory penalty of 10 years in federal prison and a $500,000 fine on this conviction.
Hollier, a licensed pharmacist, owned and operated Urban Independent Pharmacy (UIP), located at 6300 Samuell Blvd., in Dallas. She and Dr. Padron coordinated a procedure for PWC’s staff to fax prescriptions for the controlled substances to UIP.
Once Dr. Padron issued the prescriptions, these dealers would drive the patients to UIP to get the prescription filled. Typically they did this in groups and Hollier had large amounts of hydrocodone and alprazolam in pre-filled bottles ready each day to handle the large groups of dealers and their patients. These dealers furnished the money to pay for the narcotics. Sometimes they paid Hollier directly for the prescriptions. After Hollier filled the prescriptions, the patients would give the dealers the pills which they would sell on the street for a profit.
Dr. Padron has also pleaded guilty, in a separate and unrelated case, to one count of conspiracy to commit health care fraud. A sentencing date is pending in that case also.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are prosecuting.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, see: www.stopmedicarefraud.gov
Two Dallas-Area Residents Admit Defrauding Investors in Gold Purchase SchemeRead the Press Release
Defendant Arrested at JFK International Airport Just Prior to
Boarding Flight to GhanaDALLAS — Two recent, Dallas-area residents, Annetta Lou Smith, aka “Annette Crawford,” 49, and Warren Michael Hills, 54, have each pleaded guilty to conspiracy to commit wire fraud stemming from a gold purchase investment fraud scheme they ran in November and December 2010. Hills pleaded guilty yesterday, before U.S. District Judge Reed C. O’Connor, to count one of the indictment and was remanded into federal custody. Smith entered her plea earlier this month to a superseding information. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
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, she had booked to Ghana, scheduled to depart later that evening. She has been in custody since that time.
According to plea papers filed in the case, Smith and Hills worked together to recruit investors to purchase gold from the country of Ghana, located in 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 particular 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 not shipped and was 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.
According to the indictment, 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.
Hills faces a maximum statutory penalty of 20 years in federal prison, and Smith faces a maximum statutory penalty of five years in federal prison. Each could also be fined up to $250,000 and ordered to pay restitution. Judge O’Connor will sentence Hills on May 15, 2014, and Smith on April 24, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Mansfield Tax Preparer Sentenced to 36 Months in Federal Prison and Ordered to Pay More Than $1.6 Million in RestitutionRead the Press Release
FORT WORTH, Texas — At a sentencing hearing held today before U.S. District Judge John McBryde, Michelle Johnson was sentenced to 36 months in federal prison and ordered to pay more than $1.6 million in restitution, following her guilty plea in August 2013 to one count of aiding and assisting in the preparation of false tax returns. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the hearing, Johnson stated that she is a resident of Mansfield, Texas. According to the defense’s motion for downward variance, filed in December 2013, Johnson is 37-years-old and the owner of 3D Tax Services, a tax preparation business.
In January 2010, according to the factual resume filed in the case, Johnson prepared a 2009 federal tax return for an individual that was false and fraudulent in that it grossly inflated expenses associated with this individual’s auto detailing business. This individual’s business expenses were thousands of dollars less than what Johnson claimed on the Schedule C which she prepared and attached to the return without the taxpayer’s knowledge.
The case was investigated by Internal Revenue Service Criminal Investigation.
Dallas Man Arrested on Federal Drug and Counterfeiting Charges to Remain in Federal CustodyRead the Press Release
DALLAS — Following a hearing this afternoon in federal court, a Dallas man, who is charged in a federal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a U.S. Marshals Service seal, was ordered detained by U.S Magistrate Judge Irma C. Ramirez pending further order of the court. Nicholas Todd Freed, 39, was arrested this week by a task force officer assigned to Homeland Security Investigations (HSI), after it was discovered Freed was claiming packages containing anabolic steroids from a postal center in Dallas. As Freed was being apprehended, law enforcement also observed that he possessed a counterfeit U.S. Marshals Service (USMS) credential and badge. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
According to the filed criminal complaint, the investigation began in early January 2014 when U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S.Postal Service Express Mail parcel, arriving from Singapore, as suspicious. Its contents were identified as Boldenone Undecylenate, an anabolic steroid and Schedule III controlled substance. CBP seized the parcel, which was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, the true address of the Deep Ellum Postal Center. HSI in Dallas was notified about the parcel and its contents.
The ensuing investigation determined that the account for the rental box at the postal center was opened with fictitious information, and the box frequently received similar packages. The investigation ensued, and on January 28, 2014, when the HSI task force officer approached Freed, who was at the postal center to pick up the package, he discovered Freed was carrying a silver-colored USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector. Freed was also carrying a credit card knife, handcuff key and several driver licenses with his photo, but different names on them. In addition, Freed’s vehicle had several items on it or in it consistent with an equipped police vehicle, including emergency flashing lights mounted on the grill, siren, rear flashing red tail lights, spotlight, front push bumper and handcuffs.
During a consensual search at Freed’s residence, law enforcement located several computers, laminating materials, blank plastic cards the size of a Texas driver license, pages of magnetic strips for the back of the cards, ink consistent with that of the Texas seal on the license and identification cards, a press to laminate the cards, pages with hologram material of official federal and government seals, pages of names and identities used to produce the cards, several computer related files of identification cards Freed had previously made, head-shot photos on the computer, and other materials necessary to manufacture and produce fraudulent government identifications, specifically Texas driver licenses, a picture of a Texas Motor Vehicle Inspection sticker on the computer, Texas identification cards, state school identification cards, military identifications and a USMS identification card.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense, as charged, of knowingly, intentionally and unlawfully attempting to possess with the intent to distribute anabolic steroids is 10 years in federal prison and a $500,000 fine. The maximum statutory penalty of the offense, as charged, of falsely making, forging, counterfeiting and altering the seal of a department and agency of the U.S., is five years in federal prison and a $250,000 fine.
The ongoing investigation is being conducted by HSI, CBP, the Balch Springs Police Department and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Colleyville, Texas Man Sentenced to 210 Months in Federal Prison for Running Ponzi Scheme That Caused More Than $8 Million in Losses to InvestorsRead the Press Release
Defendant Was on the Lam for Nearly Two Years
Before He Was Apprehended in Greece and Extradited to U.S.FORT WORTH, Texas — Christopher Blackwell, 34, who pleaded guilty almost three years ago to running a Ponzi scheme that defrauded dozens of investors of millions of dollars, fled the country while he was awaiting sentencing, and was recently apprehended and extradited to the U.S., was sentenced yesterday by U.S. District Judge Terry R. Means to 210 months in federal prison and ordered to pay approximately $8.6 million in restitution.
In making today’s announcement, U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, said, “I commend the tremendous coordination and efforts of an international law enforcement team, including Homeland Security Investigations, the Justice Department’s Office of International Affairs, the U.S. Marshals Service, Interpol and the Greek authorities that located this fugitive and returned him to the U.S. to face justice.”
“After pleading guilty to his Ponzi scheme that cheated dozens of people out of more than $8 million, Mr. Blackwell hoped that he could hide from punishment by fleeing to Greece,” said David M. Marwell, special agent in charge of Homeland Security Investigations in Dallas. “However, by working closely with our worldwide HSI attaché offices, and the Hellenic National Police, we used the ‘long arm of the law’ to bring Mr. Blackwell to justice.”
Acting U.S. Marshal Benjamin E. Kates of the Northern District of Texas, said, “Bringing Christopher Blackwell to justice is an excellent example of law enforcement cooperation.”
Following his plea in July 2011, Blackwell, who at the time was a Colleyville, Texas, resident, absconded to Greece. On April 16, 2013, he was arrested in the island of Corfu in Western Greece by Homeland Security Investigations (HSI) and the Athens and the Hellenic National Police. On November 11, 2013, Blackwell was extradited from Greece by the U.S. Marshals Service to the Northern District of Texas.
Blackwell operated the Ponzi scheme, which caused approximately $8.6 million in losses to investors, from approximately January 2007 to mid-June 2011, when he was arrested in Phoenix on charges outlined in a criminal complaint filed in the Northern District of Texas. At yesterday’s sentencing hearing, a special agent with HSI testified about the severe financial impact of the fraud on the lives of the dozens of victims.
According to the factual resume filed in the case, Blackwell told potential investors that their money would be invested in specific business ventures. However, when he received money from them, he did not invest those funds, but instead used the majority of the money for his own personal benefit. Blackwell also occasionally used some of the funds received from new investors to make small payments to earlier investors. These payments were designed to convince investors that their money was generating a profit. Not all investors received payments from Blackwell, and many lost all of the money they invested. Blackwell recruited investors from a variety of geographic areas.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The investigation was led by HSI.
Final Defendant Convicted in Methamphetamine Distribution Conspiracy Is Sentenced to Serve A Total of 240 Months in Federal PrisonRead the Press Release
Defendant Convicted on Drug Conspiracy and Federal Firearm Charges
WICHITA FALLS, Texas — Darren Scott Murphy, 26, of Electra and Wichita Falls, Texas, was sentenced yesterday, by U.S. District Judge Reed C. O’Connor, following his guilty plea in July 2013 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine and one count of being a felon in possession of a firearm. Judge O’Connor sentenced Murphy to 240 months on the drug count and 120 months on the firearm count, to run concurrently. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
All seven defendants charged in the case pleaded guilty and all have been sentenced:
Anthony Rueben Johnston, 28, to 480 months in federal prison
Rachel Dawn Billen, 21, to 36 months
Louis Griego, Jr., 44, to 168 months
Janis Hernandez, 31, to 136 months
James Allen Holley, 34, to 142 months
Christina Gail Thompson, 32, to 42 monthsAccording to documents filed in his case, Murphy admitted that on multiple occasions, from at least August 4, 2012 through February 21, 2013, he received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth area and elsewhere, and distributed it to numerous customers in the Electra and Wichita Falls, areas.
Murphy admitted that on the evening of December 2, 2011, when the vehicle he was driving was stopped on by officers with the Fort Worth Police Department, he ran when he exited the vehicle. While being apprehended a short distance from the vehicle, Murphy yelled to the vehicle’s passenger, “Get the pistol! Get the pistol!” One of the officers located a silver revolver lying in the road beneath the driver’s side of the vehicle.
He further admitted that on August 4, 2012, in Clay County, Texas, deputies with the Clay County Sheriff’s Office initiated a traffic stop on a car in which he was the front-seat passenger. He had approximately 81.6 grams of methamphetamine hidden in a fast food restaurant bag in the front seat.
He also admitted that on November 6, 2012, in Wise County, a trooper with the Texas Department of Public Safety initiated a traffic stop on a car driven by co-defendant Johnston in which Murphy was the front-seat passenger. Law enforcement seized a small amount of methamphetamine and approximately $10,015 in cash. Murphy further admitted that he attempted to obstruct the investigation of this crime.
In addition, Murphy admitted that he conspired with Johnston regarding the methamphetamine that law enforcement recovered during the execution of a state search warrant on February 14, 2013, at a residence in Wichita Falls shared by Johnston and co-defendant Billen. Murphy admitted that he possessed that methamphetamine with the intent to distribute it. Law enforcement also recovered handwritten notes inside the residence that identified customers who owed Murphy approximately $10,925 for methamphetamine purchases.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters prosecuted.
Defendants Sentenced for Roles in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Three defendants, who pleaded guilty in 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, were sentenced yesterday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Bobby Ray Harris, Jr., aka “Bobby Landrum,” 34, was sentenced to 210 months in federal prison. He pleaded guilty in August 2013 to one count of conspiracy to possess and distribute methamphetamine. According to the factual resume filed in his case, he purchased at least one-half ounce quantities of methamphetamine from co-conspirator Deborah McCulloch five times during the time frame of March to July 2012, with the purpose of redistributing it. Harris has been in custody since his arrest in April 2013. McCulloch is currently serving a 50-month federal prison sentence after pleading guilty to the same offense.
Co-conspirators Margarita C. Crowe, 42, Amy Kitchell Hamm, 38, each pleaded guilty in October 2013 to the same offense as Harris, and they were each sentenced to 72 months in federal prison. Both were remanded into custody at yesterday’s sentencing hearing. They each admitted that on multiple occasions, between April 2012 and August 2012, they distributed quantities of methamphetamine they had obtained from co-conspirators, to customers in the Wichita Falls area.
To date, all 39 defendants charged in this conspiracy have entered guilty pleas; a total of 35 defendants have been sentenced.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Dallas Man Admits Possessing and Producing Child Pornography Involving A Minor Under Age TwoRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of production of child pornography and one count of possession of prepubescent child pornography. He faces a total statutory penalty of at least 15 years and a maximum of 50 years in federal prison, a $500,000 fine and up to a lifetime of supervised release. Sentencing is set for May 19, 2014, before U.S. District Judge Sam A. Lindsay. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on June 30, 2013, Rivers left his cellphone at a neighbor’s home. The neighbor looked through the cellphone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
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 the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Attorney General Holder Appoints Eight New U.S. Attorneys to Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the appointment of the following eight U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee (AGAC): André Birotte Jr., Central District of California; Thomas E. Delahanty II, District of Maine; Zachary T. Fardon, Northern District of Illinois; Wifredo A. Ferrer, Southern District of Florida; Kerry B. Harvey, Eastern District of Kentucky; Zane D. Memeger, Eastern District of Pennsylvania; Tim Q. Purdon, District of North Dakota; and Sarah R. Saldaña, Northern District of Texas.
“In the face of daunting staff and resource constraints, our U.S. Attorneys’ Offices are performing tremendous work in their districts across the country, standing on the front lines of federal law enforcement efforts,” said Attorney General Holder. “Each of the U.S. Attorneys who serves on the Attorney General’s Advisory Committee plays an indispensable role in guiding the Justice Department’s work as we confront a range of challenging issues and opportunities. I welcome the eight new members of the AGAC I’ve chosen to appoint today, and look forward to working closely with them to take fresh, and smart, approaches to fighting crime and achieving justice across the nation.”
The Attorney General also thanked the following U.S. Attorneys who have completed their two-year terms and are rotating off the committee: Laura E. Duffy, Southern District of California; Timothy J. Heaphy, Western District of Virginia; Brendan V. Johnson, District of South Dakota; Pamela C. Marsh, Northern District of Florida; Carmen M. Ortiz, District of Massachusetts; Robert L. Pitman, Western District of Texas; James Santelle, Eastern District of Wisconsin; Carter M. Stewart, Southern District of Ohio.
U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, said, “I am honored by the Attorney General’s appointment. It is an extraordinary privilege and I look forward to serving the United States in this expanded role.”
Chaired by U.S Attorney for the Eastern District of New York Loretta E. Lynch, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
A brief bio on each new appointee is below:
André Birotte Jr. was presidentially appointed and sworn in as the U.S. Attorney for the Central District of California on March 4, 2010. He previously served as the Inspector General for the Los Angeles Police Commission from 2003 to 2010 and as an Assistant Inspector General from 2001 to 2003. From 1995 to 1999, Birotte served as an Assistant United States Attorney for the Central District of California. He started his legal career as a Deputy Public Defender in the Los Angeles County Public Defender’s Office from 1991 to 1995. Birotte serves as Co-Chair of the AGAC’s Terrorism/National Security Subcommittee, and as a member of the Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Cyber/Intellectual Property Subcommittee, Violent and Organized Crime Subcommittee and White Collar/Fraud Subcommittee.
Thomas E. Delahanty II was presidentially appointed and sworn in as the U.S. Attorney for the District of Maine on July 1, 2010. Prior to his appointment, he served as a Justice for the Maine Superior Court for more than 26 years, and as Chief Justice from 1990 until 1995. From 1981 until 1983, he was a partner in the firm Delahanty & Longley. He previously served as the U.S. Attorney for the District of Maine from 1980 to 1981. Prior to this, Delahanty served as a District Attorney for Prosecutorial District 3 for Androscoggin, Franklin and Oxford Counties (1975 to 1980); as a County Attorney and Assistant County Attorney with the Androscoggin County Attorney’s Office (1971 to 1975); and as an associate at Marshall, Raymond & Beliveau (1970 to 1974). Delahanty serves as Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group, as a member of the AGAC’s Medical Marijuana Working Group and the AGAC’s Border and Immigration Law Enforcement Subcommittee, and as a participant in the department’s Arab American and Muslim Outreach Program.
Zachary T. Fardon was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Illinois on Oct. 23, 2013. Prior to his appointment, Fardon was a partner at the law firm of Latham & Watkins where he served as the Chair of the Litigation Department in their Chicago office. Previously, Fardon served as the First Assistant United States Attorney in the Middle District of Tennessee from 2003 to 2006 and as an Assistant United States Attorney in the Northern District of Illinois from 1997 to 2003. He began his legal career working as an Assistant Public Defender in the Nashville Metropolitan Public Defender’s Office from 1996 to 1997 and as an associate at the law firm of King & Spalding from 1992 to 1996.
Wifredo A. Ferrer was presidentially appointed and sworn in as the U.S. Attorney for the Southern District of Florida on May 4, 2010. Ferrer previously served as an Assistant County Attorney and as Chief of the Federal Litigation Section in the Miami-Dade County’s Attorney’s Office from 2006 to 2010. From 2000 until 2006, he was an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of Florida. While at the U.S. Attorney's Office, he served in the Public Integrity and National Security Section, the Economic Crimes Section, the Major Crimes Section, and the Appellate Division of the Office. Prior to that, he had been Counsel and Deputy Chief of Staff to the United States Attorney General from 1995 to 2000. From 1994 to 1995, Ferrer was a White House Fellow and Special Assistant to the United States Secretary of Housing and Urban Development. From 1991 to 1994, he had been a Litigation Associate with Steel Hector & Davis in Miami, Florida. From 1990 until 1991, Ferrer was a law clerk to then- District (now 11th Circuit) Judge Stanley Marcus. Ferrer serves as Vice Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group.
Kerry B. Harvey was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Kentucky on May 14, 2010. Harvey previously served as the General Counsel and Acting Inspector General of the Kentucky Cabinet for Health and Family Services from 2008 to 2010. He was a partner at Owen, Harvey, and Carter from 1991 to 2008; at Prince, Harvey, Brien & Carter from 1986 to 1991; and at Prince & Harvey from 1984 to 1986. Mr. Harvey worked as the Marshall County, Kentucky, Attorney from 1986 to 1994. He began his legal career as an associate at Brown, Todd & Heyburn from 1982 to 1984. Harvey serves as a member of the AGAC’s Health Care Fraud Working Group.
Zane David Memeger was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Pennsylvania on May 10, 2010. Prior to his appointment, Memeger was a Partner at Morgan, Lewis & Bockius, LLP from 2006 to 2010. Previously, Memeger had served as an Assistant United States Attorney in the United States Attorney’s Office for the Eastern District of Pennsylvania from 1995 until 2006. From 1991 until 1995, Memeger was an Associate at Morgan, Lewis & Bockius, LLP. Memeger serves as a member of the AGAC’s Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee, Violent and Organized Crime Subcommittee, White Collar/Fraud Subcommittee and Health Care Fraud Working Group.
Timothy Q. Purdon was presidentially appointed and sworn in as the U.S. Attorney for the District of North Dakota on August 24, 2010. Prior to his appointment, Purdon was a partner at Vogel Law Firm from 2005 to 2010; prior to his promotion he also served as an associate at the firm. From 1996 until 2001, Purdon worked as an associate at Dickson & Purdon, and he became a partner in the firm in 2001. From 1995 through 1996, he was an associate at Olson & Cichy. Purdon has also served as a law clerk for the Honorable Bruce M. Van Sickle of the United States District Court for the District of North Dakota. Purdon serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Native American Issues Subcommittee, Environmental Issues Working Group, and Local Government Coordination Working Group.
Sarah R. Saldaña was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Texas on Sept. 29, 2011. She previously served as an Assistant United States Attorney for the Northern District of Texas since 2004, serving as Deputy Criminal Chief for Fraud and Public Corruption since 2009. Ms. Saldaña was an attorney for Baker Botts, L.L.P, from 1987 to 1998, and Haynes Boone from 1985 to 1987. Following law school, she served as a judicial clerk to the Honorable Barefoot Sanders, U.S. District Court Judge for the Northern District of Texas, from 1984 to 1985. Saldaña serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee and White Collar/Fraud Subcommittee.
The full AGAC membership is listed below:
Loretta E. Lynch, United States Attorney, Eastern District of New York, Chair
Sally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Andre Birotte Jr. – Central District of California
Thomas E. Delahanty II – District of Maine
Zachary T. Fardon – Northern District of Illinois
Wifredo A. Ferrer – Southern District of Florida
Richard S. Hartunian, United States Attorney, Northern District of New York
Kerry B. Harvey – Eastern District of Kentucky
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Zane D. Memeger – Eastern District of Pennsylvania
Wendy J. Olson, United States Attorney, District of Idaho
Timothy Q. Purdon – District of North Dakota
Sarah R. Saldan͂a – Northern District of Texas
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officioSouthlake, Texas, Man Sentenced to Two Years in Federal Prison on Structuring ConvictionRead the Press Release
Defendant Owns and Operates Pharmacies
DALLAS — Linus Nwosu was sentenced on Thursday, by U.S. District Judge Reed C. O’Connor, to 24 months in federal prison, following his guilty plea in June 2013 to one count of conspiracy to commit structuring. He was ordered to surrender to the Bureau of Prisons on February 25, 2014. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nwosu has also agreed to amend his taxes, and he has forfeited the $476,190 to the government. According to the order setting conditions of release, Nwosu is a resident of Southlake, Texas.
According to documents filed in the case, Nwosu owns and operates two pharmacies with his wife in the Dallas/Fort Worth area under the name GeneRx Discount Pharmacy, Inc. According to the factual resume, from on or about October 12, 2011, to May 16, 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits in order to avoid the currency reporting requirements. During this time, both he and his wife made approximately 77 cash deposits for a total of $476,190, and each of the deposits was made with the intent to avoid the currency reporting requirements. They received cash receipts from GeneRx on a daily basis and divided the cash into amounts under $10,000.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
U.S. Court of Appeals Affirms Conviction and Sentence of Khalid AldawsariRead the Press Release
Saudi Student Was Sentenced to Life in Prison for
Attempted Use of Weapon of Mass DestructionDALLAS — The U.S. Court of Appeals for the Fifth Circuit in New Orleans, Louisiana, issued a nine-page published opinion yesterday affirming the conviction and sentence of Khalid Ali-M Aldawsari, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure. He was lawfully in the U.S. on a student visa and enrolled at South Plains College, near Lubbock, Texas.
In its opinion, the Court rejected each of Aldawsari’s arguments, holding that (1) the district court properly denied his motion to suppress evidence gathered pursuant to the Foreign Intelligence Surveillance Act; (2) the district court correctly instructed the jury on the crime of attempt; and (3) Aldawsari’s sentence is reasonable. The opinion was released less than two months after the three-judge panel heard oral argument in the case.
“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña. “I commend their efforts.”
Assistant U.S. Attorney Matthew J. Kacsmaryk was the lead appellate counsel, and he was assisted by Senior Department of Justice Appellate Counsel John F. De Pue. The district court case was investigated by the FBI’s Joint Terrorism Task Force, which includes many federal, state and local partners, with assistance from the Lubbock Police Department and the Texas Tech Police Department. The trial prosecution was handled by Assistant U.S. Attorneys Jeffrey R. Haag, Denise Williams, and Matthew J. Kacsmaryk and Trial Attorney David Cora from the Counterterrorism Section of the Justice Department’s National Security Division.
Chairman of Richardson, Texas, Oil and Gas Well Promotions Company Sentenced to 30 Years in Federal Prison on Conspiracy and Securities FraudRead the Press Release
DALLAS — David Kevin Lewis, the chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison and ordered to pay approximately $2.5 million in restitution, following his conviction at trial in September 2013 on one count of conspiracy to commit securities fraud and 23 counts of securities fraud. Judge Fitzwater remanded Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, each pleaded guilty to their roles and were sentenced in December 2013 to 100 months and 21 months, respectively. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony. Griffith, who is in custody, was also ordered to pay approximately $2.5 million in restitution and Markham, who must surrender to the Bureau of Prisons next month, was ordered to pay approximately $1.5 million in restitution.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by the Texas State Securities Board (TSSB) and the FBI. Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz prosecuted.
North Texas Man Sentenced to One Year and One Day in Federal Prison for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
Defendant to Pay $102,836 in Restitution
DALLAS — Adnan Z. Khan was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 12 months and one day in federal prison and ordered to pay $102,836 in restitution, following his guilty plea in October 2013 to one count of aiding and assisting in the preparation of fraudulent tax returns. Khan was arrested in June 2013 but was later released on bond. According to the order setting conditions for his release, Khan resides in Wylie, Texas. He must surrender to the Bureau of Prisons on February 26, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Khan used his parents’ residence in Dallas to prepare federal tax returns and supporting schedules and forms for clients. However, Khan falsified items on the clients’ returns, without their knowledge, to obtain large tax returns.
For example, according to the factual resume, Khan would falsify Schedule A medical expenses, moving expenses, job expenses, education credits and residential energy credits to increase the tax refunds, and instead of providing clients with a copy of the filed return, he would provide them with another tax return that reflected a smaller refund. On many of the filed returns, Khan listed one of his personal bank accounts and many of the tax refunds were paid to those accounts, and Khan kept a large portion of the refund, without the client’s knowledge. On several returns, Khan changed the taxpayer’s address to his address so that any IRS correspondence would be mailed to him and not the client. The copy of the return Khan provided to the client, however, reflected the client’s correct address.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
Dallas Psychologist Remanded into Federal Custody After Pleading Guilty to Health Care Fraud OffenseRead the Press Release
Treated Disabled Federal Workers
DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was remanded into federal custody today after pleading guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of health care fraud. Wolf faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution, and he agrees to surrender his license to practice psychology. Sentencing is set for May 7, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
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 investigation is being conducted by DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.
Federal Jury Convicts Husband and Wife on Conspiracy and Health Care Fraud ChargesRead the Press Release
Defendants Owned/Operated a Medical Supply Business and Lab in Arlington
DALLAS — Following a one-week trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Pamela Adenuga, 39, and her husband, Kehinde (Kenny) Adenuga, 46, both of Arlington, Texas, on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Solis remanded the defendants into custody. Each defendant faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count; restitution could also be ordered. A sentencing date was not set.
Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.
Evidence revealed that several Medicaid beneficiaries, who HGMS billed for incontinence supplies, did not need them or they were never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2 million solely for adult incontinence supplies.
During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent. The government also introduced evidence that HGMS billed these Medicaid beneficiaries 96 times for adult incontinence supplies – each and every billing was false and fraudulent.
Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Mindy Sauter and Michael C. Elliott are in charge of the prosecution.
Inmate Sentenced to 55 Months in Federal Prison for Mailing Threats to Law EnforcementRead the Press Release
DALLAS — Jesse Brister, aka “Bozo,” was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 55 months in federal prison, following his guilty plea in September 2013 to one count of mailing threatening communications. Brister, 28, of Conroe, Texas, is presently in custody in the Texas prison system in an unrelated case. 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, Brister has identified himself as a proud member of the Aryan Brotherhood of Texas (ABT); Texas prison officials also list him as a member of that security threat group. In March 2013, Brister was incarcerated in the Telford Unit in New Boston, Texas.
On March 21, 2013, Brister wrote and signed a letter addressed to the U.S. Attorney in the Earle Cabell Federal Building in Dallas. In this letter, Brister wrote, among other things, that
“[p]roudly, I am writing this letter to this Federal Building and . . . but I am intending it to the Federal Department point blank. Our demands are simple; you have apprehended members of our family; Big Terry, Jive, Baby Huey, and others in our Dallas/Ft. Worth region. … If your federal government does not drop the current charges on these ABT members my circle/family will start with DA’s not involved in these cases . . . We have a list of names Judges included.”
At the time of this letter, there was a racketeering indictment pending in the Southern District of Texas against the ABT and its leaders and soldiers. All of the ABT members mentioned above in Brister’s letter were under federal indictment in Houston. In a second letter Brister sent to the U.S. Attorney’s Office, dated March 28, 2013, Brister urged the Feds to make a peace treaty with the ABT because, “trust me its not fun having to search the DA’s, U.S. Attorneys, Judges, and so on and so forth vehicles everyday for bombs. . . .”
Approximately 10 days after Brister wrote his first letter, Kaufman County District Attorney Mike McLelland and his wife were gunned down in their home in what appeared to be a well-orchestrated assassination.
Brister was interviewed by federal and state law enforcement officers regarding this letter, and others he sent. He admitted to writing these letters, and although he initially claimed otherwise, he ultimately denied any involvement of the ABT in any of the Kaufman County murders. (Assistant District Attorney Mark Hasse had been murdered earlier in 2013.)
The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies. Criminal Chief Assistant U.S. Attorney Chad Meacham prosecuted.
Woman Who Absconded After Arrest on A Federal Felony Drug Charge Is Sentenced to 136 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas —Janis Hernandez, 31, of Electra and Killeen, Texas, has been sentenced by U.S. District Judge Reed C. O’Connor, to 136 months in federal prison following her guilty plea in June 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
All seven defendants charged in the case have pleaded guilty and all but one has been sentenced:
Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison
Rachel Dawn Billen, 21, to 36 months
Louis Griego, Jr., 44, to 168 months
James Allen Holley, 34, to 142 months
Christina Gail Thompson, 32, to 42 monthsCo-conspirator Darren Scott Murphy, Jr., 26, is scheduled to be sentenced by Judge O’Connor on January 27, 2014. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.
According to documents filed in her case, Hernandez admitted that on multiple occasions between August and November 2012, she distributed and facilitated the distribution of methamphetamine in Electra and Wichita Falls, Texas. Co-conspirator Murphy supplied the methamphetamine. She further admitted that she acted as an intermediary and broker to distribute methamphetamine in Wichita Falls and introduced to Murphy to others so they could obtain methamphetamine from him. Hernandez allowed Murphy to distribute methamphetamine from her home in Electra.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution
Confessed Heroin Dealer Admits Providing Drugs That Caused Death of Two Young Metroplex WomenRead the Press Release
DALLAS — Misael Perla, a/k/a “Irving” and “Weasal25, of Dallas, pleaded guilty this morning, before U.S. Magistrate Judge Irma C. Ramirez, to two counts of possession of heroin with intent to distribute, the use of which caused the death of victims Alexandra Julia Moreno, 20, of Irving, Texas, and Cassidy Seward, 18, of Grapevine, Texas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Perla, a confessed heroin dealer, admitted that on July 16, 2013, he knowingly distributed heroin to Moreno, a woman he had recently met at a club. Perla provided the heroin to Moreno while she was staying with him at his mother’s home and he watched as she used the heroin in his presence. Later that evening and into the next morning, Perla attempted to wake Moreno, and he became concerned that she may have overdosed. He put her into the bed of a truck, drove to Baylor Medical Center at Irving and left her body with medical personnel at the emergency room. Moreno was pronounced dead shortly after her arrival at the hospital and a subsequent autopsy report concluded that she “died as the result of the toxic effects of heroin.”
Additionally, Perla also admits in the factual resume that he knew Cassidy Seward used heroin and that she would take some heroin from a supply at his residence. After staying with the defendant one evening, Seward overdosed on drugs taken from his home. After her family found her unresponsive, paramedics arrived and took her to the hospital, where she was soon pronounced dead. A subsequent autopsy report concluded that she died from the “mixed drug toxicity” of heroin and methamphetamine.
On each count of conviction, Perla faces a statutory penalty of at least 20 years and up to life in prison and a $5 million fine. A sentencing date was not set.
The investigation was led by the Irving Police Department and the Grapevine Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Jason Schall is in charge of the prosecution.
Former Yoakum County Sheriff’s Deputy Sentenced to 48 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), was sentenced this morning by U.S. District Judge Sam R. Cummings to serve 48 months in federal prison and a year of supervised release on a federal conviction stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He must surrender to the Bureau of Prisons by February 14, 2014.
Valdez pleaded guilty to one count of unlawful use of a communications facility.
Valdez admitted that from July 2009 until approximately August 2010, he used a cellphone to commit, cause and facilitate a conspiracy to distribute and possess with the intent to distribute cocaine and distribution and possession with intent to distribute cocaine.
According to documents filed in the case, in February 2010, investigators with the Texas Department of Public Safety (DPS) learned that Valdez was associating with a particular individual who was suspected of trafficking controlled substances in Yoakum County, Texas. Following a traffic stop of this individual, DPS learned that this individual had Valdez’s cell phone number saved in his cell phone and in fact, had made 15 calls to, and received one call from, Valdez, during the period November 1, 2009 to March 18, 2010.
This individual advised DPS that Valdez had instructed him/her to call or text him and say that he/she “had some information” for Valdez, which would be the signal for Valdez to go to that individual’s home so they could discuss narcotics-related matters. This individual advised that in winter 2009, Valdez asked him/her for three to four ounces of cocaine to give to another individual in Brownsfield, Texas. This individual sold Valdez three ounces of cocaine for $2,100. This individual also advised DPS that this was not the only time he/she furnished cocaine to Valdez.
In June 2010, a person, working at the direction of the DPS, met Valdez and asked Valdez for $50 worth of cocaine. Valdez advised this person that he would provide it in a day or two. This person told Valdez that they had a friend who was going to send them cocaine from Mexico. Valdez advised that he would purchase one-quarter of a kilogram of cocaine per week at $500 per ounce and sell it for $800 per ounce. Valdez also indicated an interest in receiving marijuana.
When DPS investigators interviewed Valdez in November 2011, he stated that his financial debts had become overwhelming, and he had discussed a joint venture with the first individual to smuggle 200-300 pounds of marijuana to Oklahoma or Kansas. Valdez advised that this venture never materialized, but that this same individual later approached Valdez about selling cocaine and Valdez agreed.
Valdez admitted that from summer 2009 to summer 2010, while he worked as a deputy in the YCSD, he distributed approximately 1.5 pounds of cocaine. Valdez stated that he stopped selling cocaine in August 2010 because he learned he was under investigation; shortly thereafter, he resigned from the YCSD.
The investigation was conducted by the Texas DPS, the FBI, the Yoakum County District Attorney’s Office and the Yoakum County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Northern District of Texas U.S. Attorney’s Office Collects More Than $31 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $31,201,427.29 in criminal and civil actions in Fiscal Year 2013. Of this amount, $12,400,303.78 was collected in criminal actions and $18,801,123.51 was collected in civil actions.
Additionally, Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,323,331.29 in cases pursued jointly with these offices. Of this amount, $19,567.77 was collected in criminal actions and $1,303,763.52 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Saldaña. “For example, in one month alone, the district recovered $6.6 million in one civil health care fraud case. This kind of recovery not only returns funds to the defrauded federal program, but it serves to deter others from engaging in fraud.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Amarillo Anesthesiologist Sentenced to 45 Months in Federal Prison on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO — Edgar A Lockett, Jr., was sentenced this morning by U.S. District Judge Mary Lou Robinson to serve 45 months in federal prison and three years of supervised release following his conviction at trial in September 2013 on six felony tax evasion charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lockett must pay restitution that amounts to interest and penalty and taxes that are definitively determined or adjudicated to be the losses resulting from the crimes of conviction.
After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, convicted Edgar A Lockett, Jr., on all six counts of the indictment charging tax evasion.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation.
Man Convicted at Trial for Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. Is Sentenced to 72 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Pay $880,000 in Restitution
DALLAS — Godwin Umotong, 58, was sentenced, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $880,000 in restitution following his conviction at trial in April 2013 on charges stemming from his involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Umotong is the last of six defendants sentenced in the conspiracy. Judge Godbey ordered that Umotong, a resident of Houston, surrender to the Bureau of Prisons in March. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Umotong, an employee of EHC and Medic, and coconspirator Comfort Gates, 48, an employee of Medic, were each convicted at trial on one count of conspiracy to commit health care fraud. Umotong was convicted on five counts of health care fraud.
Other defendants in the case who have been convicted and sentenced are listed below. Each was also ordered to pay restitution of amounts ranging from approximately $195,000 to $1.4 million.
Ovsanna Agopian, 58, of Houston, 120 months in federal prison
Boghos Babadjanian, 55, of Sherman Oaks, Calif., probation
Leslie Omagbemi, 56, of Dallas, 30 months in federal prison
Munda Massaquoi, 69, of Houston, 37 months in federal prison
Comfort Gates, 48, of Houston, 72 months in federal prison
ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston. Agopian, 58, was the operator of both EHC and Medic.
According to documents filed in the case and evidence presented at trial, Agopian, Umotong, Omagbemi, Massaquoi and Gates conspired together to submit, or cause to be submitted, fraudulent claims to Medicare for diagnostic tests and office visits. Agopian recruited unlicensed doctors to work for EHC and Medic by telling them that they would treat beneficiaries in the beneficiaries’ homes. Medicare does not pay for services performed by unlicensed persons. Nevertheless, these recruits went to beneficiaries’ homes and purported to conduct medical examinations, including ordering diagnostic tests. In total, more than $2.7 million was fraudulently billed, and of that amount, Medicare paid more than $1.3 million.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Elliott prosecuted.
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, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: www.stopmedicarefraud.gov.
Plainview, Texas, Man Sentenced to 210 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, Jr., 43, of Plainview, Texas, was sentenced last Friday, by U.S. District Judge Sam R. Cummings, to 210 months in federal prison following his guilty plea in August 2013 to one count of production of child pornography. Judge Cummings remanded Madrigal, who had been on bond, into custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
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) and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Shooter Sentenced to 10 Years in Federal Prison on Federal Firearm ConvictionRead the Press Release
Defendant Shot an Individual at Stripes Convenience Store in Lubbock in April 2013
LUBBOCK, Texas — Jarrod Charles Gauna, 23, of Lubbock, Texas, was sentenced, by U.S. District Judge Sam R. Cummings, to 10 years in federal prison on a federal firearm conviction stemming from his shooting and injuring an individual during a drug transaction at a convenience store in Lubbock this past spring. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gauna pleaded guilty to one count of using, carrying, and discharging a firearm during and in relation to a drug trafficking crime and aiding and abetting. According to documents filed in the case, during a methamphetamine trafficking crime on April 20, 2013, Gauna shot and injured an individual with a Sig Sauer 9mm semi-automatic pistol at the Stripes convenience store on 50th Street in Lubbock.
The investigation revealed that Gauna told an individual that he needed to get out of town because he’d shot someone who had stolen methamphetamine from him. Gauna told another individual that he was getting ready to sell one-eighth of an ounce of methamphetamine to individual when that individual grabbed the drugs and ran. Gauna said he fired at the individual and possibly hit him in the foot.
The investigation also revealed that Gauna and others had disposed of the firearm by burying it in cement, but in May 2013, investigators were able to retrieve the firearm from a bucket of cement and identified it as the one used in the shooting.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Convicted Sex Offender Pleads GuiltyRead the Press Release
LUBBOCK, Texas— A Minnesota man, Shannon Lee Callahan, 39, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to an indictment charging failure to register and update registration as a sex offender. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with the sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in 1992, Callahan was sentenced to a five-year term of probation after having earlier pleaded guilty to two counts of criminal sexual conduct in Dakota County, Minnesota. Based on these convictions, Callahan was considered a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as such under state and federal law. Under Texas law, persons convicted of this offense have a lifetime obligation to register as a sex offender in Texas.
Callahan moved from Minnesota to Big Lake, Texas, in May 2013, but he never registered as a sex offender in Texas, nor did he inform any authorities in Minnesota that he had left his Minnesota residence and had moved to Texas where he had gained employment.
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 the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Lubbock Man Sentenced to 20 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Joshua Matthew Miranda, 29, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 240 months (20 years) in federal prison, following his guilty plea in September 2013 to one count of receiving child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Miranda has been in custody since his arrest in the parking lot of a church in Lubbock, Texas, in early May 2013, after arranging to meet an undercover law enforcement officer who had posed as a 15-year-old girl with whom Miranda had exchanged emails of a sexual nature. According to the complaint filed in the case, at the time of his arrest, Miranda had a box in his vehicle that contained numerous sex toys, ropes, gags, a blind fold, duct tape and condoms. A federal grand jury later charged Miranda with attempted enticement of a child, production of child pornography and receipt and possession of child pornography. He pleaded guilty to the receipt count and received the statutory maximum for that offense.
After his arrest, a state search warrant was executed at his residence in Lubbock, and law enforcement located several images and videos of child pornography on Miranda’s computer. Miranda admitted that he downloaded from the Internet numerous child pornography images and videos, including videos of prepubescent 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 the Lubbock Police Department and the FBI. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Lubbock County Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas—Stephen Carpenter, 33, of Slaton, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings to 10 years in federal prison, following his guilty plea in August 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Carpenter used a file-sharing program to search for depictions of minors engaged in sexually explicit conduct. Carpenter downloaded and viewed many of these depictions in the form of video files, and on February 14, 2013, Carpenter was found to be in possession of a computer containing depictions of 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) and the Slaton Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Long-Time Friends Admit Embezzling from Tax Consulting BusinessRead the Press Release
DALLAS — Lamonica Phillips and Pamela Gail Willis, aka Pamela Gayle Knight, both of Dallas, appeared today before U.S. Magistrate Judge Renee Harris Toliver, and each pleaded guilty to a federal felony offense stemming from their embezzlement of funds from Phillips’ former employer, announced US. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically Phillips and Willis, both 44, each pleaded guilty to one count of conspiracy to commit mail fraud. Each faces a maximum statutory penalty of five years in prison, a $250,000 fine and restitution. A sentencing date was not set.
In a related case, Audrey Starr, 51, of Oklahoma City, is charged with one count of conspiracy to commit mail fraud and four substantive counts of mail fraud. If convicted the conspiracy count carries a maximum statutory penalty of five years in federal prison and each of the substantive mail fraud counts carries a maximum statutory penalty of 20 years in prison. Each count also carries a maximum statutory penalty of $250,000.
According to documents filed in the case, Phillips and Willis devised and carried out a scheme to embezzle money from Phillips’ employer, Industry Consulting Group (ICG). Starr allegedly became a conspirator in the scheme through knowingly receiving and using stolen funds.
ICG is a tax consulting business based in Dallas that focuses on tax valuation of properties and the maintenance of tax portfolios. As part of their business ICG, on behalf of their clients, pays taxes on home mortgages and provides valuations of properties in order to contest tax appraisals.
As part of her duties, Phillips had access to ICG’s financial software, could prepare checks on behalf of ICG and was responsible for cashing and mailing checks to ICG’s customers. Phillips began the scheme to defraud ICG in March 2012, following a conversation with her good friend, Willis.
The case is being investigated by the FBI. Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.
Convicted Sex Offender, Who Was Arrested in Oklahoma, Admits Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas— Glenn Wayne Baker, 60, formerly of Taylor County, Texas, appeared this morning in federal court, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an indictment charging failure to register and update registration as a sex offender. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in August 1981, Baker was convicted by a jury of the felony offense of aggravated rape, in the District Court of Taylor County, Texas. Based on this conviction, he was a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as a sex offender for life under state and federal law. On January 11, 2013, Baker registered as a sex offender, listing his address in Tye, Taylor County, Texas, and acknowledging his duty to register as a sex offender for life.
Beginning in January 2013, Baker lived with his sister in Tye after being paroled on his Texas aggravated rape conviction, and was registered as a sex offender while living there. On July 29, 2013, Baker cut off his electronic monitor and left his residence in Tye, and he did not provide any notice, before or after he left, to any authorities. He then traveled to Enid, Oklahoma, and moved in with his wife, who he had married several years earlier while he was in prison. He told her that he had been given permission by Texas authorities to move to Oklahoma. Baker lived in Enid, Oklahoma, from approximately August 1, 2013, until he was arrested in mid-August 2013.
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 the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Federal Jury Convicts Fort Worth Financial Planner on Wire Fraud and Money Laundering ChargesRead the Press Release
Defendant Remanded into Federal Custody Following Verdict
FORT WORTH, Texas — Following a two-day trial, before U.S. District Judge John McBryde, a federal jury convicted Caleb Deason, a 34 year old Fort Worth resident, late yesterday on an indictment charging one count each of wire fraud and money laundering. Following the verdict, Judge McBryde remanded Deason into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Deason owned and operated CD Financial, a financial services business in Fort Worth, Texas. Deason was an agent of Transamerica Life Insurance Company from November 206 through May 2012. In October 2011, Deason sold an individual a Transamerica policy with a death benefit of approximately $1 million.
In January 2012, the insured died unexpectedly. Transamerica conducted extensive due diligence before agreeing to pay the policy’s death benefit to the insured’s wife. However, Deason fraudulently changed the bank account and routing information and forged the beneficiary’s signature on a Transamerica wire request form in order to divert the proceeds from the life insurance policy to his own personal use, which included purchasing a 2010 Range Rover.
Deason faces a maximum statutory penalty of 20 years in federal prison on the wire fraud conviction and 10 years on the money laundering conviction. Each count of conviction also carries a fine of up to $250,000. The 2010 Range Rover has already been administratively forfeited by the U.S. Secret Service. Sentencing has been set for April 4, 2014.
The case was investigated by the U.S. Secret Service and the Texas Department of Insurance. Assistant U.S. Attorneys Brian Poe and John de la Garza were in charge of the prosecution.
Federal Jury Convicts Dallas Man for Role in Conspiracies to Distribute Cocaine and MethamphetamineRead the Press Release
Defendant Also Convicted on Obstruction and Perjury Charges
DALLAS — A Dallas man arrested this summer as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation was convicted late yesterday, following a three-day trial before U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldana.
The jury found Reynaldo Macedo-Flores, 35, guilty as charged on all five counts of the indictment, including one count of conspiracy to possess with intent to distribute cocaine; one count of conspiracy to possess with intent to distribute methamphetamine, one count of obstruction of justice and two counts of perjury. The obstruction and perjury convictions stem from Macedo-Flores’s false testimony at the trial of Austreberta Macedo-Flores, his mother, in September 2013, also before U.S. District Judge Reed O’Connor. (Austreberta Macedo-Flores was also convicted of conspiring to distribute methamphetamine; her sentencing hearing is pending.)
The government presented evidence at trial that Reynald Macedo-Flores repeatedly sold narcotics to an undercover officer, bragged about taking the risk of distributing narcotics on a wiretap, and plotted to present false testimony – and then did so – at his mother’s trial.
Macedo-Flores faces a statutory penalty of five to 40 years in federal prison on the cocaine conviction, 10 years to life in prison on the methamphetamine conviction, up to 20 years in prison on the obstruction conviction and up to five years in prison on each of the perjury convictions. He could also be ordered to pay millions of dollars in fines. Sentencing is set for March 20, 2014, before Judge O’Connor.
All 10 defendants in the case have now been convicted and are awaiting sentencing. Eight defendants entered guilty pleas.
The case involved undercover purchases, wiretaps and search warrants, and was investigated by the FBI in conjunction with the Dallas Police Department. In total, over 15 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash – much of it, as trial testimony showed, packaged for shipment to Mexico – have been seized in the operation.
The case is being prosecuted by Assistant U.S. Attorney Jason Schall.
Wichita Falls Man Sentenced to 14 Years in Federal Prison for Role in Large Scale Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas —Louis Griego, Jr., aka “Big Lou,” 44, of Wichita Falls, Texas, was sentenced on Monday, by U.S. District Judge Reed C. O’Connor, to 168 months (14 years) in federal prison following his guilty plea in July 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A total of seven defendants have pleaded guilty in the case. In August, Judge O'Connor sentenced Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison; Rachel Dawn Billen, 20, to 36 months and Christina Gail Thompson, 32, to 42 months in federal prison. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.
Three other defendants charged in the case, Janis Hernandez, James Allan Holley and Darren Scott Murphy, Jr., also pleaded guilty, and their sentencing dates are scheduled during the next few months.
According to documents filed in Griego’s case, Griego admitted that during the month of February 2013, he distributed quantities of methamphetamine to and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Anthony Rueben Johnston supplied the methamphetamine that Griego distributed.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Defendants Sentenced for Roles in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Three defendants, who pleaded guilty in late August 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, were sentenced on Monday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Chance Terrell Dotson, 35, was sentenced to 235 months in federal prison; Heather Michelle Douglas, 33, was sentenced to 180 months; and Paula Aimee Vazquez, 40, was sentenced to 84 months.
According to documents filed in the cases, Dotson admitted that on numerous occasions from October 2010 to June 2012, he purchased pseudoephedrine tablets to use in manufacturing methamphetamine from numerous Walmart stores in the Houston area. He further admitted that he purchased pseudoephedrine from as many as 17 different Walmart stores in a single day and arranged to sell the pseudoephedrine to co-defendant Steve Ysasaga and others. Sometimes Ysasaga drove to Houston to obtain the pseudoephedrine from Dotson; other times Dotson transported the tablets to Wichita Falls. Dotson admitted purchasing 286 boxes of pseudoephedrine during the course of the conspiracy.
Douglas and Vazquez admitted that on multiple occasions between November 2011 and August 2012, they distributed quantities of methamphetamine to customers in the Wichita Falls area. Co-conspirators supplied them with the methamphetamine. Douglas also admitted she facilitated the manufacture of methamphetamine by purchasing pseudoephedrine tablets from various individuals. In turn, Douglas sold those tablets knowing they would be used to manufacture methamphetamine. Douglas and Vazquez also helped facilitate the May 13, 2012, beating of an individual in retaliation for that individual’s suspected theft of money and drugs.
To date, 38 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 32 defendants have been sentenced. The case against one defendant has not been resolved.
Paragraph Seven.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Irving, Texas, Man Sentenced to 150 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Travis Olt, 40, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 150 months in federal prison, following his guilty plea in August 2013 to an Information charging one count of transporting and shipping child pornography. Judge Lindsay remanded Olt, who had been on bond, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in May 2013, federal agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Olt’s residence and seized several computers and computer-related items. Olt admitted that he intentionally and knowingly received child pornography using a file-sharing computer software program.
Prior to the execution of the warrant, law enforcement was able to access and download child pornography that Olt received by using the software. Olt admitted that he believed he possessed approximately 1,000 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI and the Plano, Texas Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Getaway Driver in Takeover-Style Armed Bank Robbery Is Sentenced to 140 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Gabriel Tenorio, 30, the getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 140 months in in federal prison. A resident of Lubbock, Tenorio has been in custody since his arrest in early June 2013. He pleaded guilty in August 2013 to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Tenorio’s co-defendant, Russell Eugene Heath, 44, also of Lubbock, was arrested in August in Calexico, California. He pleaded guilty last month to one count of aggravated bank robbery and aiding and abetting and one count of possession of a firearm in furtherance of a crime of violence and aiding and abetting. He faces a maximum statutory penalty of 25 years in federal prison on the robbery conviction and at least five years and up to life on the firearm offense. Each count of conviction also each carries a maximum statutory fine of $250,000. A sentencing date has not yet been set for Heath.
According to Tenorio’s factual resume, he and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money. He 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. Tenorio and Heath split the proceeds of the robbery.
According to the factual resume filed in Heath’s case, he and Tenoria also robbed the FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas, on May 20, 2013. In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money. Heath then ran to the vehicle being driven by Tenoria and they fled the area.
The investigation was conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Former Big Spring, Texas, Man Sentenced to Six Years in Federal Prison for E-Mailing Obscene Video to Undercover Law Enforcement OfficerRead the Press Release
Defendant Believed He Was Sending Video to a 15-Year-Old Girl
LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to six years in federal prison following his guilty plea in August 2013 to a superseding indictment charging one count of attempted transfer of obscene material to a minor. Harvilicz has been in custody since he was arrested in Waco, Texas, on March 27, 2013, on related charges. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, announced today.
According to the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky. In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky. On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female 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) and the Kenton County Police Department, Kenton County, Kentucky. Assistant U.S. Attorney Steven M. Sucsy prosecuted.