Northern District of Texas
Press releases recorded for this federal judicial district.
Former Executive Director of Rockwall Housing Development Corporation Admits Role in Conspiracy to Steal Federal Funds from HUDRead the Press Release
DALLAS — Jennifer Tyson, 37, of Rockwall, Texas, the former Executive Director/Manager of the Rockwall Housing Development Corporation (RHDC), appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and admitted conspiring to steal federal funds from the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Tyson pleaded guilty to an Information charging one count of conspiracy to commit theft concerning programs receiving federal funds. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine, or twice the pecuniary gain to Tyson or loss to the victim(s), and restitution. Sentencing is set for March 19, 2014, before U.S. District Judge Ed Kinkeade.
The RDHC is a landlord to several authorized public housing agencies (PHAs) in Rockwall. These PHAs, and, in turn, the RHDC, receive federal funds from HUD through the “Housing Choice Voucher Program.” The RHDC owns and operates a 36-unit apartment complex in Rockwall, known as “the Meadows.”
In her role as the RHDC’s Executive Director/Manager from June 2009 to November 2012, Tyson was an agent of the RHDC. Her responsibilities included, among other things, reviewing and processing monthly housing assistance payments and had managerial discretion and responsibility for the day-to-day running of the Meadows.
According to the factual resume filed in the case, beginning in March 2010 and continuing until June 2011, Tyson wrote approximately 128 RHDC checks, made out to Co-conspirator B, totaling approximately $126,063. While this co-conspirator did perform some work for the Meadows, such as watering plants and picking up trash, Co-conspirator B did not earn, and was not owed, $126,063 over the course of less than 16 months.
Generally, Co-conspirator B cashed the checks that Tyson gave to him. Then, Tyson, along with this Co-conspirator B and his fiancé, Co-conspirator A, used the cash to purchase illegal narcotics for their own personal use.
From February 2011 until January 2012, Tyson wrote approximately 94 RHDC checks made out to “cash” and used the proceeds for her own personal use.
From October 2009 until October 2012, Tyson wrote approximately 55 RHDC checks made out to “reimbursement” and used the proceeds for her own personal use.
In January 2011, Co-conspirator A was evicted from the Meadows and began living with Co-conspirator B in hotels in Rockwall. Tyson would occasionally visit them and the three would often use illegal narcotics in these hotel rooms. Tyson paid for these hotel stays using RHDC funds.
The investigation was conducted by HUD and the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Concho County Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, was sentenced today by U.S. District Judge Sam R. Cummings, to 37 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larock has been in custody since his arrest in June 2013 on a related criminal complaint. He pleaded guilty in August 2013 to an indictment charging one count of failure to register as a sex offender.
In August 2005, Larock was convicted in New York of third-degree rape, a felony. He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act. Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state. He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment. Larock failed to register as a sex offender while living and working in Eden, Texas.
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, the Concho County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Brownwood, Texas, Man Sentenced to 50 Years in Federal Prison for Producing and Receiving Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 50 years in federal prison and a lifetime of supervised release, following his guilty plea in August 2013 to one count of production of child pornography and one count of receipt of child pornography. Villarreal has been in custody since his arrest in June 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On June 25, 2013, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
According to documents filed in the case, Villarreal used his cell phone to create a video of a minor male engaged in sexually explicit conduct. In addition, Villarreal admitted that he collected and traded images and videos of child pornography. Some of the child pornography was collected using peer-to-peer file-sharing software, but most of the images and videos depicting minors engaged in sexually explicit conduct were received and sent by way of his cell phone.
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, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Abilene Man Sentenced to 188 Months in Federal Prison for Robbing Citibank in Abilene This SummerRead the Press Release
LUBBOCK, Texas — Jacob Alan Powell, 28, of Abilene, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 188 months in federal prison for committing the July 8, 2013, aggravated bank robbery of a Citibank location in Abilene. 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, on July 8, 2013, Powell, wearing business attire and a Hardin-Simmons University baseball cap, entered the Citibank, N.A., located at 3409 South 14th Street in Abilene. He waited several minutes before an available teller asked him to her station. Once at the teller counter, he told the teller that he was making a withdrawal. When the teller asked him for his account number, he told her that she didn’t understand and then lifted his suit jacket to show her a gun in his waistband. Fearing for her life as the gun appeared real, the teller opened her cash drawer and put cash in a bag that Powell provided; Powell then quickly left the bank.
The following day, bank surveillance photos were shown on the local news and Powell was identified by witnesses.
The investigation was conducted by the FBI and the Abilene Police Department. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Garland, Texas, Man Sentenced to 120 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Evan Richards, 22, of Garland, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 120 months in federal prison, after pleading guilty earlier this year to an Information charging one count of transporting and shipping child pornography. 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, a detective with the Garland Police Department, working online in an undercover capacity, identified a computer using a peer-to-peer program and the Internet to share images of child pornography. The investigation revealed that the computer belonged to Richards. A search warrant was executed at Richards’ residence on September 18, 2012, and law enforcement seized his computer. Richards admitted that he downloaded images and videos that he made available for sharing and that he believed there were approximately 2000 child pornography files on his computer. He admitted downloading child pornography for three to four years using file-sharing software.
Richards has been in custody since he entered his guilty plea in January 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 Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Five Dallas Men Sentenced for Various Roles in Hydroponic Marijuana Growing OperationRead the Press Release
DALLAS — Today, Louis Michael Olerio, Jr., 36, of Dallas, was sentenced to 24 months in federal prison, following his guilty plea in October 2012 to conspiracy to commit money laundering, stemming from his role in a hydroponic marijuana growing operation. Five other defendants charged in the case also pleaded guilty to various felony offenses and received sentences of 18 months to 36 months, as noted below. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The other five defendants convicted and their sentences are:
Brian Edward Deloney, 37, 18 months
Jeremy Cash McElroy, 37, 36 months
Eric Irving Love, 35, 30 months
Jeffrey Scott Gannon, 34, 27 months
Stephen Ray Willeford, Jr., 39, 24 months
McElroy also pleaded guilty to conspiracy to commit money laundering. Love and Gannon pleaded guilty to conspiracy to maintain drug involved premises and Deloney pleaded guilty to maintaining a drug involved premise.
According to documents filed in the case, McElroy, Olerio, Gannon, and Love were fraternity brothers at Southern Methodist University (SMU) in the past. Between 2004 and June 2010, the defendants conspired to maintain 11 houses, in Dallas and Richardson, Texas, to cultivate and distribute highly potent hydroponic marijuana. Almost all of the marijuana grown at these houses by the defendants was ultimately delivered to Deloney for distribution.
After having grown marijuana with Olerio at one of the houses for numerous cycles, McElroy decided to distance himself from the day-to-day operations of the conspiracy and agreed to sell two of the marijuana grow houses to Olerio, while retaining a percentage of the proceeds in the sale of marijuana grown in those houses. To that end, McElroy transferred the deed for one of the houses to Olerio and sold another one of the grow houses to Olerio, leaving the marijuana grow equipment in both houses so that Olerio could continue to growing operation in them. Olerio agreed to continue the operation in these houses and pay McElroy twenty percent of the profits from the sale of the marijuana. McElroy and Olerio conducted financial transactions with the intent to conceal any ownership McElroy had in the profits from the marijuana sales.
The case was investigated by the Internal Revenue Service - Criminal Investigations and the Drug Enforcement Administration. Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.
U.S. Fish and Wildlife Service, U.S. Attorney’s Office and Borger Refinery Owner Agree to Penalty and Compliance Plan Related to August 2012 Migratory Bird Kill at Johnson Tank Farm in Hutchinson CountyRead the Press Release
AMARILLO, Texas — The U.S. Department of the Interior, Fish and Wildlife Service (USFWS), the U.S. Attorney for the Northern District of Texas, Phillips 66 Company and WRB Refining LP, entered into an Agreement and Compliance Plan on November 22, 2013, regarding facilities located near Borger, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Phillips 66 and WRB Refining (Borger) own and/or operate a refinery and related support facilities, including the Johnson Tank Farm Pond in Hutchison County Texas, a three million barrel brine water pond spanning 22 acres.
In August 2012, the USFWS learned of a large migratory bird kill at the Johnson Tank Farm Pond. Approximately 260 waterfowl, mostly teal, were recovered. Borger self-reported the kill and immediately began implementing additional hazing efforts to attempt to keep migratory birds off of the pond. Additionally, Borger established an emergency treatment center to triage injured birds at the Borger facility.
Borger also installed additional bird deterrents and contracted for bird-hazing personnel to deter migratory birds off the Johnson Tank Farm Pond, during daylight hours, using a boat and air horns, provided the weather conditions and personal safety conditions permit the hazing activities.
According to the Agreement, within 30 days,
Borger agrees to pay a $50,000 violations notice;
Borger agrees to pay $10,000 in restitution to the South Plains Wildlife Rehabilitation Center;
Borger agrees to pay $38,820 to the Texas Parks and Wildlife Department for the value of the deceased migratory birds;
Borger agrees to make a $200,000 charitable contribution to the South Plains Wildlife Rehabilitation Center; and
The USFWS will not seek prosecution under the Migratory Bird Treaty Act, or other similar offenses related to Migratory Bird Activity at the Borger facilities, as long as Borger continues to comply with this Agreement and the Compliance Plan contained in this Agreement.
The Compliance Plan requires, among other things, for Borger to deploy the Merlin Detect and Deter Bird-Control Radar System™ at the Pond at the Johnson Tank Farm, to take actions with respect to the 302 Hazardous Waste Impoundment and to submit semi-annual reports to the USFWS in Lubbock. Borger also agrees to train personnel and contractors who work near Surface Waters at Borger Facilities to observe and report any Migratory Bird Activity at Surface Waters other than fresh or raw water and to maintain an on-site bird treatment center to triage injured birds.
The case was handled by Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas.
Lubbock Man Admits Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Nicholas Lee Blair, 31, appeared yesterday afternoon before U.S. District Judge Sam R. Cumming and pleaded guilty to an indictment charging one count of production of child pornography. Blair, who is in custody, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, on or about December 25, 2012, when he resided in Lubbock, Texas, Blair persuaded a minor female, “Jane Doe,” to engage in sexually explicit conduct while he used his cellphone camera, aimed at her while she was in the bathroom of his home, to record a video of her.
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 Lubbock Police Department and the FBI. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Dallas Man Pleads Guilty to Federal Child Pornography Offenses Involving Prepubescent MinorRead the Press Release
DALLAS — Ulises Sandoval, 26, of Dallas, appeared this morning before U.S. District Judge Ed Kinkeade and pleaded guilty to one count of production of child pornography and one count of possession of prepubescent child pornography. Sandoval, who is in custody, faces a statutory sentence of not less than 15 or more than 30 years in federal prison on the production count and a statutory maximum of 20 years in federal prison on the possession count. In addition, each count carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release. Sentencing is set for March 5, 2014, before Judge Kinkeade. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) received information that a person, later identified as Sandoval, was trading images of child pornography over email. They executed a search warrant at his home on September 25, 2013, and arrested him.
Sandoval admitted using his email address to join a website for the purpose of trading images and videos of child pornography, and he also admitted using email to meet individuals with a similar interest in child pornography to trade child pornography with them. He admitted taking photographs of “Jane Doe,” who was less than seven years old at the time, while he engaged in sexually explicit conduct with her, and then sharing those images with others.
Forensic analysis located images of child pornography on Sandoval’s laptop computer. Sandoval admitted that he had more than 2500 child pornography images and videos on his hard drive and some of those depicted sadistic and or violent conduct; 21 of the files depicted infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by ICE HSI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Correctional Officer Indicted for Accepting BribesRead the Press Release
ABILENE, Texas — Matthew Castaneda, 23, of Big Spring, Texas, was arrested yesterday on a federal indictment, returned by a grand jury last week and unsealed today, charging him with one count of bribery of public officials. Castaneda made his initial appearance in federal court today before U.S. Magistrate Judge E. Scott Frost, and entered a not guilty plea to the charge. He was released on his own recognizance. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that from September 14, 2013, to approximately December 13, 2012, Castaneda, who at the time was employed as a Correctional Officer at the Big Spring Correctional Center, brought contraband to an inmate, in the form of cell phones, in exchange for money from that inmate.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Castaneda faces a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
The investigation was conducted by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Previously Convicted Drug Trafficker Sentenced to Serve A Total of 258 Months in Federal Prison on Firearms ConvictionsRead the Press Release
DALLAS— Erik Willis, 31 of Purdon, Texas, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to serve a total of 258 months in federal prison following his conviction at trial in July 2013 on three felony firearms offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically,Willis, who represented himself at trial, was convicted on two counts of being a felon in possession of a firearm and one count of possessing an unregistered firearm. Judge Solis sentenced him to 120 months on each count of conviction, for a total of 360 months, but two of the three sentences will run concurrently. In addition, when Willis was convicted, he was on federal supervised release, so he received an additional 18-month sentence for this violation.
At trial, the government presented evidence that on April 27, 2011, Willis, who had been previously convicted in 2005 of possession with intent to distribute more than 100 kilograms of marijuana, fled after choking a Garrett Police officer during a traffic stop. A subsequent search of his truck yielded two guns and marijuana.
Then, on May 6, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Texas Rangers and the Navarro County Sherriff’s Office searched Willis’s property in Purdon after receiving information he had stockpiled weapons and drugs. During the search, officers located three and a half pounds of marijuana, $150,000 in cash and 13 firearms, including a “street sweeper” destructive device. Willis’s house was heavily fortified, containing a hidden room, steel curtains, money counters, industrial door locks and surveillance equipment.
The case was investigated by ATF, the Texas Rangers, the Navarro County Sheriff’s Office and the Garrett Police Department. Assistant U.S. Attorneys Cara Foos Pierce and Taly Haffar prosecuted.
Farmers Branch Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Luis de la Garza, 59, of Farmers Branch, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging five counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admits committing the five below-listed bank robberies, he stipulates that he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled from the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
De la Garza faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine for each of the five counts of conviction. In addition, according to the terms of his plea, he will pay a total of $145,947 in restitution. Sentencing is set for February 27, 2014, before U.S. District Judge Jane J. Boyle.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Contractor Pleads Guilty to Securities and Commodities FraudRead the Press Release
DALLAS — On the day his trial was to begin in federal court in Dallas, Brian Marshall, 49, of Tampa, Fla., pleaded guilty to one count of securities and commodities fraud, stemming from his scheme to defraud investors in connection with the sale of Home Solutions of America, Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Marshall was a vice-president and a member of the board of Home Solutions of America, Inc., a NASDAQ-traded company that was based in Dallas before it relocated to New Orleans, La. in July 2008. Home Solutions was in the business of construction and restoration, including new construction and restoration following natural disasters such as hurricanes. Home Solutions conducted some of its business through its largest subsidiary, Fireline Restoration, Inc., which was based in Tampa. Marshall was the president of Fireline. Frank J. Fradella of Covington, Louisiana, who was the CEO of Home Solutions, pleaded guilty to securities fraud in the Eastern District of Louisiana, and is awaiting sentencing.
In plea documents filed last week, Marshall admitted that between December 2006 and August 15, 2007, he ran a scheme to defraud public investors by fabricating false and fictitious revenue, operating income and costs in connection with a series of construction contracts in Tampa. Marshall caused Fireline to enter into construction contracts with private companies that he wholly or partially owned, including a $4 million contract for the construction of his ersonal residence.
Marshall admitted that he also caused Fireline to record revenue and income from the construction contracts that were false, because little, if any, work had actually been performed. Even though Marshall knew that the revenue, costs and income on the construction projects were false, he caused Home Solutions to report it to public investors in Home Solutions’ 2Q 2007 10-Q.
According to the plea agreement filed, if the Court accepts the plea, the parties agree that a sentence of no more than 60 months is the appropriate custody disposition of Marshall’s case. A sentencing date was not set.
Today’s conviction 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. attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The investigation was conducted by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorneys J. Nicholas Bunch and Andrew Wirmani are in charge of the prosecution.
Twenty Arrested for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
Drug Trafficking Organization Based in Stephenville, Texas, is
Allegedly Responsible for Distributing Hundreds of Pounds of Methamphetamine
Primarily in Rural Texas CountiesFORT WORTH, Texas — A total of 31individuals are now in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation yesterday, led by special agents of the Drug Enforcement Administration (DEA) and officers from the Stephenville Police Department, on conspiracy and drug trafficking charges outlined in a criminal complaint filed last week and unsealed today. Defendants arrested yesterday made their initial appearance this morning before a U.S. Magistrate Judge. Today’s announcement was made by Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Daniel R. Salter, Special Agent in Charge of the DEA in Dallas.
The complaint charges 32 defendants with conspiracy to possess a controlled substance (methamphetamine) with intent to distribute. Twenty of those defendants were arrested in yesterday’s operation, 11 are in custody at various locations on unrelated state charges, and one has not yet been arrested.
“These arrests illustrate the success of our District’s federal, state and local law enforcement partners’ collaboration in taking down these drug trafficking organizations — whether they operate in large communities, or in several rural counties as this one allegedly did,” said U.S. Attorney Saldaña. “I commend the dedicated efforts of the DEA and the Stephenville Police Department, who led this OCDETF investigation, along with the Erath, Parker, Palo Pinto and Stephens County Sheriff’s Offices, the Erath County District Attorney’s Office, the Fort Worth and Weatherford Police Departments, the U.S. Marshals Service and the Texas Department of Public Safety.”
“Drug trafficking organizations are determined to spread their poison in an attempt to make a profit on the backs of addiction,” said Special Agent in Charge Salter. “Today, the DEA and our state and local partners have made a significant impact on these organizations operating in our rural counties. I am grateful for the efforts of our special agents, prosecutors, and law enforcement partners in dismantling this organization. Our law enforcement community is strong and together we are committed to ensuring that our communities are safe and drug free.”
The investigation began in December 2012 when the DEA and the Stephenville Police Department began investigating the methamphetamine trafficking of the Brittany Barron Drug Trafficking Organization (DTO) and identified more than 100 individuals distributing for, or obtaining methamphetamine from, that DTO.
The investigation involved undercover purchases and search warrants, and throughout the investigation, substantial amounts of methamphetamine and cash were seized from the DTO. Law enforcement learned that this DTO, based in Stephenville, Texas, was allegedly responsible for distributing hundreds of pounds of methamphetamine, primarily in rural Texas counties, including: Erath County, Parker County, Palo Pinto County, Comanche County, Eastland County, Stephens County, Hood County, Hamilton County, Somervell County and Taylor County.
In addition, law enforcement has dismantled several of the DTO’s suppliers, and it continues to investigate others that remain in operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty, upon conviction, for the offense charged is not less than five years or more than 40 years in prison and a $5 million fine. The U.S. Attorney’s Office has 30 days to present the matter to a grand jury for indictment.
The case is being prosecuted by Assistant U.S. Attorney Shawn Smith.
Federal Grand Jury Indicts Dallas Police Department Vice DetectiveRead the Press Release
DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 39, of Dallas, was arrested this morning, by special agents with the FBI, on federal felony charges of obstruction of official proceedings and obstruction of the due administration of justice, as outlined in an indictment that was returned earlier this week by a federal grand jury in Dallas and was just unsealed. Bedoy made his initial appearance before U.S. Magistrate Judge David L. Horan this afternoon and was released on conditions. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the indictment charges Bedoy with three counts of obstruction of an official proceeding and one count of obstruction of due administration of justice.
According to the indictment, from November 28, 2007 through July 2013, Bedoy was assigned to the DPD’s Vice Unit. In early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at the establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. They began communicating on a weekly basis, and Bedoy began giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2008 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
In early 2013, according to the indictment, the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, and enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened, on April 25, 2013, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. While law enforcement conducted interviews of individuals working at Studio Serene, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” had “tipped off” the business weeks earlier about the pending raid. The phone number provided for “Jose” matched Bedoy’s contact information on his DPD personnel file. Based on the information received by the Coppell Police Department, an FBI and federal grand jury investigation of Bedoy were initiated.
According to the indictment, on multiple occasions in June 2013, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution. Bedoy was listed on the DPD Vice Unit roster of operation participants. On July 11, 2013, the FBI advised Bedoy and other DPD Vice Unit detectives that a federal grand jury investigation had been initiated and that the FBI was attempting to locate this female, as well as another woman, based on information that they were receiving law enforcement-sensitive information from a police officer.
The indictment alleges that on:
July 8, 2013, Bedoy told the female, a witness in the investigation, to leave Dallas and move somewhere else and to never give her real name if pulled over in a traffic stop by law enforcement.
July 11, 2013, Bedoy instructed the female to not let anyone into her apartment to talk to her, including FBI agents.
July 14, 2013, Bedoy told the female to get rid of her cell phone so that there would not be a connection between them.
July 23, 2013, Bedoy falsely told FBI agents that he never gave sensitive law enforcement information to this female.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and the obstruction of due administration of justice count carries a maximum statutory penalty of 10 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000.
The investigation is being conducted by the FBI and the DPD’s Public Integrity Unit. Assistant U.S. Attorneys Errin Martin and Mindy Sauter are prosecuting.
(Download Factual Basis)
Conspirators Sentenced in Alien Harboring CaseRead the Press Release
One Defendant Was a Police Officer with the Dallas Independent School District
DALLAS — Favian LaTorre, 57, of Dallas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to one year and one day in federal prison, and ordered to pay $10,493 in restitution, following his guilty plea in February 2013 to one count of conspiracy to harbor an alien. His co-conspirator, Gloria Palacios, 40, also of Dallas, pleaded guilty to the same offense and was sentenced earlier this month to 24 months in federal prison. LaTorre must surrender to the Bureau of Prisons on January 7, 2014; Palacios has been in custody since her arrest in December 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
LaTorre was a police officer with the Dallas Independent School District (DISD).
According to his filed factual resume, in July 2008, LaTorre began recruiting “F.P.,” who was 15-years-old, to come to the U.S. illegally to provide care for a young child he and co-conspirator Palacios had together. LaTorre had taken his young child to El Salvador for a brief period during 2008, and during that time, F.P. had cared for the child in El Salvador.
LaTorre and Palacios promised F.P.’s parents that they would arrange for F.P. to travel to the U.S. with the help of a “coyote.” LaTorre and Palacios also promised F.P.’s parents that they would pay to smuggle F.P. into the U.S. and that she would be safe.
F.P. traveled from El Salvador to the U.S. with the “coyote” hired by LaTorre and Palacios. When F.P. entered the U.S. with the “coyote,” LaTorre picked F.P. up in Houston and transported F.P. to Palacios’s residence in Dallas.
F.P. lived and worked in Palacios’s residence, caring for LaTorre and Palacios’s young child, from September 2008 until approximately February 2009. During this time, LaTorre concealed, harbored and shielded F.P., an alien from El Salvador, from detection in Palacios’s residence, and elsewhere.
The case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Errin Martin prosecuted.
Arlington Man Sentenced to 480 Months in Federal Prison for Emailing Child PornographyRead the Press Release
FORT WORTH, Texas — Barry Robert Turner, 43, of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 480 months (40 years) in federal prison following his guilty plea in July 2013 to one count of distribution of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in December 2012, Turner used the Internet and Google G-mail to email a one-minute video of child pornography, depicting a toddler, to another individual.
According to the complaint filed in the case, in October 2012, Turner responded to an advertisement on Craigslist for taboo phone sex and continued to correspond with the individual who had placed the ad. Turner sent the individual a video of child pornography and in subsequent emails and texts they discussed the child porn images they shared.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Brownwood, Texas, Man Sentenced to 135 Months in Federal Prison for Enticing A Minor Child to Engage in Sexual ActivityRead the Press Release
AMARILLO, Texas — Luis Gerardo Alvarado, 22, was sentenced this morning, by U.S. District Judge Mary Lou Robinson, to 135 months in federal prison, following his guilty plea in September 2013 to one count of enticement of a minor and aiding and abetting. 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, while living in Brownwood, Texas, Alvarado met a minor female, who lived in Coleman County, Texas, by contacting her through Facebook chat. From mid-March 2013 until April 8, 2013, Alvarado communicated with the minor female and attempted to persuade and entice her to engage in sexual activity with him. Alvarado knew the minor female was under 17 years of age. Alvarado has been in federal custody since July 1, 2013, when he was received from state custody, where he was being held on pending state charges.
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), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former NFL Player Sam Hurd Sentenced to 15 Years in Federal Prison for Role in Cocaine and Marijuana Distribution ConspiracyRead the Press Release
DALLAS — Samuel George Hurd, III, 28, was sentenced late this afternoon, by U.S. District Judge Jorge A. Solis, to 15 years in federal prison for his role in a cocaine and marijuana distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hurd, who is in custody, pleaded guilty in April 2013 to a superseding indictment that charged conspiracy to possess with intent to distribute a controlled substance. That superseding indictment, which was returned by a federal grand jury on March 19, 2013, alleged that from July 2011, to on or about June 6, 2012, Hurd conspired to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. It also included a sentencing notice stating that on or about June 6, 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.
Two co-defendants, Toby Lujan, 28, and Jesse Tyrone Chavful, 46, have pleaded guilty to their roles in the drug conspiracy. Chavful was sentenced on October 23, 2013, to serve a total of 127 months in federal prison. Lujan is scheduled to be sentenced on January 8, 2014.
The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Denton Police Department. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Errin Martin prosecuted.
Two Get Lengthy Federal Prison Sentences for Distributing Child PornographyRead the Press Release
FORT WORTH, Texas— Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, were sentenced today, by U.S. District Judge Terry R. Means, to 120 months, and 108 months, respectively, following their guilty pleas in June 2013 to distribution of child pornography. Bodie was arrested in February 2013, and Long was arrested the following month, on related charges outlined in criminal complaints; they have been in custody since that time. 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 February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.
In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography. Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image 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 the FBI. Assistant U.S. Attorney Aisha Saleem prosecuted.
Man Sentenced to More Than 10 Years in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, was sentenced today by U.S. District Judge Terry R. Means to 121 months in federal prison following his guilty plea in June 2013 to one count of count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Miller’s co-defendant, Brittanie S. Brattain, 22, who pleaded guilty to the same offense, was sentenced in October 2013 to 72 months in federal prison.
According to documents filed in Miller’s case, prior to September 2012, Miller had a relationship with Brattain. In late September or early October 2012, Miller and Brattain met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Miller and Brattain used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
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 other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
Gonzales County, Texas, Woman Sentenced to 46 Months in Federal Prison for Possessing, with Intent to Distribute, Crack CocaineRead the Press Release
LUBBOCK, Texas — Catarina Munos Robledo, 24, of Waelder, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison, following her guilty plea in August 2013 to one count of possession with the intent to distribute cocaine base (crack cocaine), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on March 20, 2013, an officer with the Early (Texas) Police Department stopped a Chrysler Town and Country vehicle, which was being driven by Robledo, for a traffic violation. After noting inconsistencies in the explanation she gave the officer about her travel, the officer asked for consent to search the vehicle, which she granted. The officer found a plastic bag containing eight “cookies” of suspected cocaine base in in the vehicle’s center console. Robledo was arrested and testing confirmed the substance was in fact, cocaine base, with a net weight of 72.25 grams.
The case was investigated by the Early Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Pilot and Passenger of Plane Each Sentenced to Two Years in Federal PrisonRead the Press Release
Plane, With Approximately 160 Pounds of Marijuana on Board,
Crashed at Yoakum County AirportLUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, and subsequently admitted possessing with the intent to distribute 50 kilograms or more of marijuana, were sentenced this morning in federal court in Lubbock, Texas. Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, were each sentenced by U.S. District Judge Sam R. Cummings to 24 months in federal prison. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas. When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway.
On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston. They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel. After fueling, the plane encountered engine problems when attempting to take off and crashed.
The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport. Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site. A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds. The drug-detector dog also alerted to the presence of drugs inside the plane.
Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane. Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence. They both admitted that they had intended to distribute the marijuana to other individuals in Houston.
The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety. Assistant U.S. Attorney Justin Cunningham prosecuted.
Mortgage Loan Officer Is Sentenced to More Than Seven Years in Federal Prison for Role in $1.8 Million Fraud SchemeRead the Press Release
DALLAS — David Joe Cano, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison and ordered to pay $1,795,125 in restitution for his nearly two-year role in a scheme to launder the proceeds of mortgage fraud. Judge Fitzwater ordered Cano, who, according to a court order setting conditions for his release, is a resident of Arlington, Texas, to surrender to the Bureau of Prisons on January 7, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Cano, 41, pleaded guilty in November 2012 to one count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity. According to documents filed in the case, Cano was a mortgage loan officer at 1st Capital Investment located in Richardson, Texas. From January 2006 to November 2007, Cano, along with other coconspirators, operated a scheme to obtain fraudulent loans from Bank of America and IndyMac Bank, as well as GreenPoint Mortgage Funding, Inc. and WMC Mortgage Corporation, both located in California, and Everett Financial Inc. dba Supreme Lending and America Homekey, Inc., both in Dallas. Cano and his conspirators then laundered the money from those loans back to themselves using shell corporations such as Comex International Korea Corporation, Eagle’s Marc Enterprises, Inc. and Sunko Construction.
To defraud the banks and mortgage lenders, Cano and his conspirators selected newly constructed or distressed properties whose value could be inflated without raising lenders’ suspicions. Cano and company then recruited individuals with good credit scores to act as loan applicants for the purchase of the properties and paid them to apply for loans using applications that falsely inflated the applicant’s income and assets. The applicants were deceitfully promised that the properties would be leased until they were sold at a profit and that the applicants would receive regular payments from the rental income that would be sufficient to repay their loans until the properties sold. In reality, the applicants were left with unpaid loans that ruined their credit scores.
“Today’s sentence is a strong reminder how serious our courts consider mortgage fraud,” said Madie M. Branch, Acting Special Agent in Charge, Dallas Field office, IRS Criminal Investigation. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in mortgage fraud are brought to justice.”
As charged in the Information, the scheme focused on seven properties located at: St. George Place in DeSoto, Texas; Golden Pond Drive in Cedar Hill, Texas; Summerfield Court in Fairview, Texas; Tangleglen Drive in Dallas; Roma Court in Allen, Texas; Avondale Drive in Murphy, Texas; and Stephenville Drive in Frisco, Texas.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by IRS Criminal Investigation with assistance from the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Walt M. Junker was in charge of the prosecution.
Fort Worth Man Sentenced to 192 Months in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
DALLAS — Charles Michael Owens, 28, of Fort Worth, Texas, was sentenced by U.S. District Judge Sam A. Lindsay to 192 months (16 years) in federal prison for possessing, with the intent to distribute, methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed in the case, Owens admitted that on June 29, 2012, he knowingly and intentionally possessed, with intent to distribute, 50 grams or more of methamphetamine.
That morning, law enforcement observed Owens as he left his residence on McLemore Avenue in Fort Worth, got into a black Cadillac and drove away. When a deputy with the Tarrant County Sheriff’s Office attempted to initiate a traffic stop because Owens had an outstanding misdemeanor warrant, Owens did not stop. While he also did not stop for a Fort Worth Police officer after running a stop sign, he did tap his brakes and throw something out of the window. He continued to drive and ran another stop sign; he eventually stopped in the 1100 block of North Riverside Drive in Fort Worth.
A narcotics-detecting dog alerted positively to the presence of controlled substances in Owens’s vehicle, and officers found $57,573 in cash in a non-functional 12-volt automotive battery that had been hollowed out. Officers also recovered a plastic bag containing methamphetamine that Owens had thrown from the vehicle, and pursuant to a state search warrant, law enforcement recovered a digital scale and hand-written drug-related notes in his residence.
The case was investigated by HIDTA, the Fort Worth Police Department and the Tarrant County Sheriff’s Office. Assistant U.S. Attorney Mary Walters prosecuted. Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Seven Panhandle Residents, Who Were Arrested in Law Enforcement Operation in September 2013, Plead Guilty to Federal Charges TodayRead the Press Release
AMARILLO, Texas — Seven defendants, who were arrested in an Organized Crime Drug Enforcement Task Force Operation (OCDETF) in September 2013, appeared in federal court today, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to various drug and drug-related offenses.
Miguel Carrasco, 33, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Conrad Nava, aka “Chauncy,” 36, pleaded guilty to one count of operating an illegal gambling business. He faces a maximum statutory penalty of five years and a $250,000 fine.
Jessie Herrera, Jr., 34, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Traci Michelle Ramos, 23, pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine and aiding and abetting. She faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Curtis Gonzales, 35, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances. He faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $10 million fine.
Shannon Drell Harris, aka “Shawn,” 43, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine.
Thiraphong Vongphrachanh, 22, pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a maximum statutory penalty of not less than five years and up to life in prison and a $250,000 fine.
Last week, three defendants in that OCDETF Operation and a related case pleaded guilty. Floyd Daniel Teafatiller, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine. Arcel Vega Martinez, 40, pleaded guilty to one count of unlawful use of a communications facility. He faces a maximum statutory penalty of not more than four years in prison and a $250,000 fine. Richard Anthony Rios, 36, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
The investigation involved undercover purchases and search warrants. In total, throughout the investigation, approximately $500,000 in cash, three kilograms of cocaine, 20 pounds of methamphetamine and six firearms were seized.
The remaining four defendants are set for trial on January 6, 2014.
The investigation is being led by the DEA and FBI, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Potter and Randall County Sheriff’s Offices, the Potter and Randall County Attorney’s Offices, the Potter and Randall County District Attorney’s Offices, the Amarillo Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Jeffrey R. Haag, Christy Drake and Vicki Lamberson are in charge of the prosecution.
Dallas Man Sentenced to A Total of 240 Months in Federal Prison for Role in Heroin Distribution ConspiraciesRead the Press Release
DALLAS — Refugio Ramirez-Garcia, aka “Cuco,” “Refugio,” “Miguel,” and “Arturo Ramirez,” 35, of Dallas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 240 months in federal prison for his role in heroin distribution conspiracies that he operated in the Dallas-Fort Worth metroplex, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ramirez-Garcia pleaded guilty in January 2013 to his role in both conspiracies. In one case, he admitted that he was involved in a conspiracy, in 2006 and 2007, with co-defendants, Martin Laguna, Francisco Laguna, Marco Antonio Romero, Jaun Curz Puerto and Timothy Ryan Daniels, to distribute more than one kilogram of heroin. His co-defendants received sentences ranging from 15 months to 180 months in federal prison. In the other case, he admitted that from August 2010 to August 2012 he was involved in a conspiracy to distribute heroin. In fact, when he was arrested on August 8, 2012, he was in possession of approximately 10 ounces of black tar heroin.
During the course of the earlier conspiracy, Ramirez-Garcia distributed heroin to his co-defendants and other individuals. By way of example only, in late March 2006, officers with the Dallas Police Department executed a search warrant at Ramirez-Garcia’s apartment in Dallas and seized: 2,353 grams of black tar heroin; 3.6 grams of powder cocaine; $66,760 in cash and three digital scales. Ramirez-Garcia admitted the cash seized from his apartment was proceeds from heroin sales.
The cases were investigated by the Coppell, Dallas and Farmers Branch Police Departments, the Dallas Independent School District Police Department – Criminal Investigations Division and the Drug Enforcement Administration. Assistant U.S. Attorneys Keith Robinson and Aisha Saleem prosecuted.
Woman 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 $830,000 in Restitution
DALLAS — Comfort Gates, 48, was sentenced this afternoon, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $830,000 in restitution following her conviction at trial in April 2013 on charges stemming from her involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Gates is one six defendants convicted in the conspiracy. Judge Godbey ordered that Gates, a current resident of Houston, surrender to the Bureau of Prisons on January 13, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gates, an employee of Medic, and coconspirator Godwin Umotong, 58, an employee of EHC and Medic, were each convicted at trial on one count of conspiracy to commit health care fraud. Gates was also convicted on two counts of health care fraud and Umotong was also convicted on five counts of health care fraud. Umotong is scheduled to be sentenced on December 2, 2013; he faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each of the counts of conviction. He could also be ordered to pay restitution.
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, 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
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 1,500 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, go to: www.stopmedicarefraud.gov.
Bank Robber Sentenced to 120 Months in Federal PrisonRead the Press Release
Defendant Threatened to Kill Everyone in the Bank’s Lobby
DALLAS — A Dallas man, who robbed a Chase Bank located on Lemmon Avenue in Dallas in 2011, was sentenced this afternoon. U.S. District Judge Jane J. Boyle sentenced William Clary, 37, to 120 months in federal prison, following his guilty plea in July 2013 to one count of bank robbery. 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, on August 1, 2011, Clary entered the Chase Bank, located at 4512 Lemmon Avenue in Dallas, approached a teller and presented a note that read, “I want 3600 dollars now! Have a gun. If you scream or signal I will kill you.” Clary then threatened to kill everyone in the lobby if the teller did not comply with his demands. In fear for her life, and the life of others, the teller removed cash from her drawer and gave it to Clary. After Clary received the cash, he departed the bank.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.
Big Spring, Texas, Man Sentenced to 240 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, was sentenced this morning, by U.S. District Judge Jorge A. Solis, to 240 months in federal prison, following his guilty plea in June 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area. Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender. Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Former Arlington, Texas, Police Officer Admits Unlawfully Accessing and Unlawfully Providing Law Enforcement Sensitive Information to A Known Drug DealerRead the Press Release
DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, a former officer with the Arlington Police Department (APD), appeared this morning before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to an Indictment charging exceeding access to a protected computer, announced 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 received 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 the 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 admits 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 the anabolic steroids.
Kantzos, who remains on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for February 12, 2014, before U.S. District Judge Barbara M. G. Lynn.
The case is being 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 are prosecuting.
Federal Jury Convicts Dallas Man in Massive Stolen Identity Refund Fraud SchemeRead the Press Release
Defendant and Co-Conspirators Attempted to Fraudulently Obtain Millions of Dollars in Tax Refunds for Their Own Use and Benefit
DALLAS, Texas — After a nearly week-long trial before U.S. District Judge Barbara M. G. Lynn, a federal jury in Dallas has convicted Ogiesoba City Osula, 37, of Dallas, on all 16 counts of a second superseding indictment charging various offenses stemming from his role in a conspiracy to use stolen identities to fraudulently obtain federal income tax refunds. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Osula’s four defendants charged in the case have entered guilty pleas:
George Ojonugwa, 32, of Garland, Texas; Eseos Igiebor, 43, of Richardson, Texas; and Ebenezer Legbedion, 42, of Lagos, Nigeria; each pleaded guilty to one count of conspiracy to commit wire fraud. Igiebor also pleaded guilty to one count of aggravated identity theft. Evelyn Nyaboke Haley, 34, of Dallas, pleaded guilty to one count of conspiracy to defraud the government with respect to claims.
Specifically, late Friday afternoon, the jury convicted Osula on one count of conspiracy to commit wire fraud, mail fraud and bank fraud; seven counts of presenting fraudulent claims upon the United States; two counts of fraud in connection with access devices and aiding and abetting; and six counts of aggravated identity theft and aiding and abetting.
The maximum statutory penalties, per count, are: conspiracy to commit wire fraud, mail fraud and bank fraud – 30 years; fraud in connection with access devices – 15 years; and aggravated identity theft – two years. In addition, each count carries a fine of up to $250,000 and restitution could be ordered.
The government presented evidence at trial that Osula conspired to defraud the government by using stolen identity information and false information to create and electronically file false tax returns to fraudulently claim refunds. Osula and his coconspirators had the refunds credited to stored value cards or bank accounts opened with stolen taxpayer identity information. While Osula and his co-conspirators fraudulently obtained millions of dollars in tax refunds, they filed additional fraudulent returns in an attempt to obtain millions more in tax refunds for their own use and benefit.
The government also presented evidence that Osula and his coconspirators were sending information to and trading information with a group running a similar scheme in Cincinnati, Ohio. On Nov. 8, 2011, Osula and Ojonugwa, who were in a parked car after midnight with the leader of the Cincinnati ring, were questioned by police in a Cincinnati suburb. A drug detection dog alerted on the vehicle, and when it was searched, police found more than $300,000 in cash and money orders and numerous debit cards. During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Individual Income Tax Return Form using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The investigation was conducted by IRS Criminal Investigation and the FBI. Assistant U.S. Attorneys Mark Penley, Christopher Stokes and P.J. Meitl are prosecuting.
Equity Trader Indicted on Securities Fraud ChargesRead the Press Release
Defendant Worked for Cushing MLP Asset Management, LP in Dallas
DALLAS — Daniel Lutz Bergin, 41, of Dallas, made his initial appearance this afternoon in federal court in Dallas, following his self-surrender on an indictment charging 15 counts of securities fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Bergin entered a not guilty plea to the indictment. He was ordered released on his own promise to appear, subject to certain conditions, including that he refrain from working in the financial services industry while on pretrial release. A trial date was not set.
According to the indictment, from 2008 to May 23, 2013, Bergin was an equity trader employed by Cushing MLP Asset Management, LP (Cushing), an investment advisor located on Preston Road in Dallas. Cushing was a wholly owned subsidiary of Swank Capital, LLC and had approximately $2.5 billion in discretionary assets under management. Cushing provided advisory and portfolio management services to institutional clients, including high net worth individuals, investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and state/municipal government entities.
Primarily, Cushing invested client assets in energy infrastructure master limited partnerships (MLPs) that are traded on stock exchanges, royalty trusts and other energy-income investments. Cushing has established policies and procedures, including a Code of Ethics, in compliance with regulatory requirements, that explicitly prohibit insider trading and outline restrictions on personal securities transactions by Cushing employees.
The indictment alleges that beginning in at least January 2010, until his termination on May 23, 2013, Bergin ran a “front-running” scheme in which he misused “inside” or “material, non-public” information when placing trades in a personal brokerage account held in his wife’s name. This scheme allowed Bergin to take advantage of limited opportunities to buy and sell the same securities in which he was placing trades on behalf of Cushing’s clients’ and proprietary accounts. Although Bergin disclosed certain personal brokerage accounts held in his name at Fidelity and Scottrade, he failed to disclose brokerage accounts in his wife’s name at Fidelity and eTrade.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum penalty for each count of securities fraud, as charged, is 25 years in federal prison, a $250,000 and restitution.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
(Download Factual Basis)
Lubbock Man Sentenced to 142 Months Federal Prison for Robbing First United Bank, Plains Capital Bank and Alliance Federal Credit UnionRead the Press Release
LUBBOCK, Texas — Jeffrey Hensley, 42, appeared in federal court this morning, before U.S. District Judge Sam R. Cummings, who upwardly departed from the U.S. Sentencing Guidelines and sentenced him to 142 months in federal prison. Hensley pleaded guilty in July 2013 to three counts of bank robbery and credit union robbery, and he has been in custody since his arrest on April 22, 2013, following the execution of a federal search warrant at his residence in Lubbock. 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 September 14, 2012, at approximately 1:25 p.m., Hensley, carrying a bank bag and wearing blue jeans, a gray pull-over and a black baseball cap, entered the First United Bank, 9801 Indiana Avenue, in Lubbock, opened the bag and removed a note that he passed to a teller. The note stated words to the effect of: “Don’t make me show my weapon.” Hensley told the teller, “Give me your bundles. Keep your hand away from your button and quit stalling.” The teller surrendered cash to Hensley who placed most of it in the bank bag, retrieved the note and exited the bank.
On December 8, 2012, at approximately 4:54 p.m., Hensley, carrying a bank bag, entered the Plains Capital Bank, 6002 Slide Road in Lubbock and handed a teller a note that read: “Fill the bag with all the money in the drawer - if I have to show my weapon I will use it - you have 15 seconds!!” Hensley ordered the teller to put the money in the bag and lifted his hooded sweatshirt as if to partially display a firearm. The teller surrendered cash and Hensley stuffed the money inside the bank bag and exited the bank.
On February 13, 2013, at approximately 3:45 p.m., Hensley entered the Alliance Federal Credit Union, 6601 Indiana Avenue in Lubbock, walked up to a teller and handed him a note. Hensley then handed a pink cosmetic bag to the teller and told her: “Hurry up! Everything in the drawer goes in the bag. Put the money in the bag. Put the money in the bag.” The teller surrendered the cash to Hensley who put it in the pink bag and exited the bank.
This case was investigated by the FBI, the Texas Department of Public Safety, the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Gaines County Man Admits Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Jose Fidencio Perez, 40, of Seagraves, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to one count of possession of prepubescent child pornography and aiding and abetting. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Perez, who remains on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. 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, Perez used a file sharing program on his computer to download child pornography. In the course of searching for depictions of sexually explicit conduct, Perez downloaded and viewed numerous videos depicting minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Office of the Attorney General of New Mexico Investigations Division. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Fort Worth Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, appeared this morning before U.S. District Judge John McBryde and pleaded guilty to one count of production of child pornography. He faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. He will remain in custody pending sentencing, which is set for February 7, 2014, before Judge McBryde. 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 is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
U.S. Attorney’s Office for North Texas Joins the Dallas Area Drug Prevention PartnershipRead the Press Release
U.S. Attorney Saldaña Encourages Participation in
National Prescription Drug Take-Back Day on Saturday, October 26, 2013DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas announced that the district has joined the Dallas Area Drug Prevention Partnership to promote its campaign, entitled the “Medicine Abuse Project,” designed to target prescription drug abuse in our communities. The campaign will bring together families, communities, industry, health care professionals, educators, government officials and law enforcement to curb teen medicine abuse, and ultimately save lives.
“I’m honored to work with local partners, including the Council on Alcohol & Drug Abuse, the Dallas Area Drug Prevention Partnership and various police departments, as well as with our federal partner, the Drug Enforcement Administration, to encourage the public to rid their homes of potentially dangerous, expired, unused and unwanted prescription drugs by turning them in to designated collection sites this Saturday, October 26, National Prescription Take Back Day,” said U.S. Attorney Saldaña.
“Prescription drug abuse has become a serious public health and safety issue and it is the Nation’s fastest-growing drug problem,” said Dan R. Salter, Special Agent in Charge, DEA Dallas Field Division. “Oftentimes, the most common source for access to prescription drugs is the home medicine cabinet. With the National Prescription Drug Take-Back campaign, we are aggressively reaching out to individuals to encourage them to rid their households of unused prescription drugs. In working with the U.S. Attorney’s Office, our state and local law enforcement partners, the medical community, anti-drug coalitions and a concerned public, we can eliminate a major source of abused drugs through the Drug Take-Back campaign and the Medicine Abuse Project.”
Visit http://www.deadiversion.usdoj.gov/drug_disposal/takeback/ for the drop off location closest to you. The service is free and anonymous; no questions will be asked.
Physician Sentenced to 48 Months in Federal Prison for Role in Health Care Fraud ConspiracyRead the Press Release
Dr. Daniel K. Leong – Who Owned South Dallas Community Medical Center – is Also Ordered to Pay Nearly $900,000 in Restitution
DALLAS — Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 48 months in federal prison and ordered to pay $865,163 in restitution for his role in a conspiracy to defraud Medicare and Medicaid. Leong must surrender to the Bureau of Prisons on January 15, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, on the day his federal trial was to begin in January 2013, Leong pleaded guilty to one count of conspiracy to commit health care fraud. Leong’s coconspirator in the case, Cal Graves, who worked as a physician assistant at the SDCMC, pleaded guilty to the same offense and was sentenced in February 2013 to a three-year term of probation and ordered to pay $294,946 in restitution.
According to documents filed in the case, by falsely representing that office visits and diagnostics were medically necessary, patients at SDCMC were prescribed controlled substances in exchange for submitting themselves to diagnostic tests. This ensured that they would return to the clinic the next month, thus making themselves available for more tests. Often, patients would exaggerate their pain level to provide a basis for a prescription for narcotics. Leong benefitted from the exaggeration because it gave him “cover” to order more tests. The patients were rarely referred to specialists for their persistent pain, and this process was repeated for up to several years without any actual treatment for some patients.
Leong and Graves frequently ordered tests known as electromyograms (EMG) that are used to diagnose neurological and neuromuscular problems. These tests are also highly-reimbursable by Medicare and Medicaid. Often, the test results were never read and Graves did not have the proper training to read them.
In February 2010, Leong signed a blank prescription that reflected his authority to prescribe controlled substances. He instructed Graves and other SDCMC staff to copy this prescription as needed. When patients came to SDCMC, Graves used the pre-signed prescriptions.
Medicare and Medicaid would not have paid claims for office visits, diagnostic testing or prescriptions if they had known either that the services were medically unnecessary and that Leong did not prescribe the medications.
The case was prosecuted by Assistant U.S. Attorney Mindy Sauter. The investigation was conducted by the FBI, U.S. Health and Human Services (HHS) Office of Inspector General (OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. 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 & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov
Dallas Man Sentenced to 19 Years in Federal Prison on Drug and Firearm ConvictionsRead the Press Release
Defendant Had Crack Cocaine, Firearms and
Nearly $500,000 in Cash When ArrestedDALLAS — Lawrence Edward Knox, 42, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 228 months (19 years) in federal prison following his guilty plea in December 2012 to one count of possession with intent to distribute 280 grams or more of cocaine base (crack cocaine) and possession of a firearm in furtherance of a drug-trafficking offense. 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, the investigation began when law enforcement received information that an individual had obtained cocaine from Knox's residence on Saddleridge Drive in Dallas. In early August 2012, Dallas Police SWAT executed a search warrant at his residence and found approximately 2.7 pounds of crack cocaine, four firearms and $469,302 in cash. They also found pans, a strainer and other utensils in the kitchen that are used to manufacture crack cocaine. Knox, who was home at the time of the search, admitted the drugs and currency were his and was arrested.
According to the factual resume filed in the case, prior to his arrest, Knox had been convicted in this district on the federal offense of possession of a controlled substance with the intent to distribute.
As part of his plea agreement with the government, Knox will forfeit not only the cash and firearms, but also a 2004 Land Rover, furniture and televisions.
The case was investigated by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taly Haffar prosecuted.
Dallas Man Sentenced to 110 Months in Federal Prison for Robbing BBVA Compass Bank in CarrolltonRead the Press Release
Defendant Admits Brandishing a BB Gun During the Robbery
DALLAS — Rodney Dewayne Womack, 38, of Dallas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 110 months in federal prison for robbing a BBVA Compass Bank located in Carrollton, Texas, in February 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on the morning of February 15, 2013, a male, later identified as Womack, entered the BBVA Compass Bank located at 3040 East Trinity Mills Road in Carrollton. After entering the bank, he pointed a handgun, which law enforcement later determined to be a BB gun, at a teller and demanded money. In fear, the teller put cash into the plastic bag that Womack provided. Womack took the bag, walked out of the bank and was arrested later that day.
The case was investigated by the FBI and the Carrollton Police Department. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
Co-Defendant in Cocaine Distribution Conspiracy Case Involving Former NFL Player Sam Hurd Is Sentenced to A Total of 127 Months in Federal PrisonRead the Press Release
DALLAS — Jesse Tyrone Chavful, 46, of San Antonio, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to serve a total of 127 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Chavful, who admitted he agreed to help his cousin, former professional football player Samuel George Hurd, III, acquire cocaine to sell others, pleaded guilty in October 2012 to one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine. When he committed the instant offense, Chavful was on supervision for a federal drug-related firearm offense. Because Chavful committed this offense while on supervision, the district court revoked his supervision and ordered that he serve 30 months imprisonment, to be served consecutively to the 97-month sentence that he received for the instant offense.
Another defendant in the case, Toby Lujan, 28, is scheduled to be sentenced on January 8, 2014. He pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a fine of up to $5 million.
According to plea documents filed in the Chavful case, from July 2011 through early June 2012, Chavful agreed to help Hurd acquire cocaine to sell to others. While Hurd played professional football for the Dallas Cowboys, he conspired with others to possess with the intent to distribute cocaine and marijuana, and the conspiracy continued after he began playing football for the Chicago Bears.
During fall 2011, Chavful conspired with Hurd to obtain 10 kilograms of cocaine for Hurd to distribute to others. According to the factual resume, while Hurd was playing football for the Chicago Bears, he contacted Chavful and asked him to find 10 kilograms of cocaine. Chavful then met with witnesses at his T-shirt shop in San Antonio and negotiated for 10 kilograms of cocaine for Hurd. On November 10, 2011, Chavful and a witness discussed drug loads going “north,” that is, to Hurd in Chicago. Chavful advised the witness not to worry about the payment because Hurd had money. Chavful also cautioned that Hurd could not be present when the drugs were delivered because of media concerns.
During spring 2012, while on pre-trial release for pending federal drug offenses, Hurd met with Chavful at his San Antonio T-shirt shop and asked him to get him cocaine and marijuana. In late May, Chavful met with a witness and agreed to buy five kilograms of cocaine and 200 pounds of marijuana, and told the witness that Hurd, whom he described as “the money,” was in on the transaction and ready to move. On June 6, 2012, federal law enforcement officers arrested Chavful after the witness and an undercover officer delivered the drugs to Chavful. Chavful admitted that he had phoned Hurd that day, at the telephone number listed under “Big Sam” in his cell phone contacts, to let Hurd know about the drugs.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney John Kull are prosecuting.
Arlington Man Sentenced to 55 Months in Federal Prison for Conspiring to Commit Wire FraudRead the Press Release
Defendant Represented Himself as a CPA to Assist Individuals and Businesses
Obtain Fraudulent Line-of-Credit LoansDALLAS — Robert Pauley, 56, of Arlington, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 55 months in federal prison, and ordered to pay $2,595,000 in restitution for assisting individuals and businesses with fraudulent line-of-credit loans. Judge Kinkeade ordered that Pauley surrender to the Bureau of Prisons on January 15, 2014. Judge Kinkeade further ordered Pauley to surrender his Certified Public Accountant (CPA) license and to not practice in the field of accounting during the term of his supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In November 2012, Pauley pleaded guilty to an Information charging one count of conspiracy to commit bank fraud, admitting that from at least July 2008 through at least December 2011, he conspired with others to make and submit false and fraudulent statements to banks in connection with personal and business line-of-credit loans. A line-of-credit loan is a no-collateral loan based on the financial condition of the borrower.
The financial institutions funded the loans based on favorable personal financial statements and false tax returns prepared by Pauley for the loan applications. Pauley admits that he misrepresented his status as a CPA to the financial institutions by failing to inform them that his CPA license had been revoked. He received a percentage of the loan funds as a commission.
In November 2010, for example, Pauley prepared and submitted a loan application and supporting documents that contained false and fraudulent information to Regions Bank for a $200,000 loan in the name of DFW Royal Investments LLC. Among other things, the tax returns provided to Regions Bank were fictitious in that they falsely identified the guarantor’s personal income as more than $300,000, when in was fact, it was approximately $38,000. Pauley admitted that he submitted the false tax returns with the specific intent to defraud Regions Bank and that by making the false statements to secure the $200,000 loan, Pauley placed Regions Bank at risk of financial loss or civil liability.
The case was investigated by the FBI. Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
Woman Sentenced to 72 Months in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Brittanie S. Brattain, 22, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Terry R. Means, to 72 months in federal prison, following her guilty plea in June 2013 to one count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Brattain’s co-defendant, Deundrea R. Miller, 27, also pleaded guilty in June to the same offense and is scheduled to be sentenced on November 12, 2013.
According to documents filed in Brattain’s case, prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
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. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
San Antonio Man Sentenced to 18 Months in Federal Prison on Mail Fraud ConvictionRead the Press Release
Case Related to the Fraud Conviction of Former UMC Vice President Greg Bruce
LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to18 months in federal prison and ordered to pay $54,750 in restitution following his guilty plea in July 2012 to one count of mail fraud and aiding abetting. Judge Cummings ordered that he surrender to the Bureau of Prisons on November 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
From November 2010 through September 2011, Mata submitted 15 false and fraudulent invoices to University Medical Center in Lubbock (UMC) for ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the invoices by mailing checks to addresses listed. During the scheme, Mata and his friend, Robert Gregory Bruce, the former Vice President of UMC, caused UMC to pay approximately $54,750 to ATAM Technology Solutions for goods and services that were not provided. ATAM Technology Solutions, according to the factual resume filed in the case, was in fact, an alter ego of Mata. Mata used these funds for personal living expenses, educational expenses and travel and entertainment expenses.
Bruce was sentenced last month to 51 months in federal prison and ordered to pay $737,492 in restitution to UMC. He pleaded guilty in June 2013 to his part in the same offense. In documents filed in Bruce’s case, he admitted that from June 2007 to December 12, 2011, he conspired with Mata to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, UMC paid approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. According to plea papers filed, Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
The cases were investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch prosecuted.
San Angelo Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 97 months in federal prison following his guilty plea in July 2013 to one count of possession of child pornography. He has been in custody since his release was revoked earlier this month. 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, while living in San Angelo, Suter owned a computer which he kept at his residence. That computer was connected to the Internet. In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Air Force Office of Special Investigations, Goodfellow Air Force Base. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Youth Minister Sentenced to 48 Months in Federal Prison on Obscenity ConvictionRead the Press Release
Defendant Worked at Churches in Levelland and Lubbock
LUBBOCK, Texas—Trevor Jacob Fortner, 25, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 48 months in federal prison, following his guilty plea in July 2013 to one count of attempted transfer of obscene material to a minor. Judge Cummings ordered that Fortner surrender to the Bureau of Prisons on November 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Most recently, Fortner was a youth minister at a church in Levelland, Texas; he has also worked in the graphics department of a church in Lubbock.
According to documents filed in the case, on May 7, 2013, Fortner responded to an online personal advertisement that had been posted by an undercover officer with the Lubbock Police Department (LPD). Posing as a 15-year-old girl, the undercover officer responded to Fortner’s initial contact. During ensuing emails and text conversations between Fortner and the undercover officer, Fortner repeatedly affirmed that he understood the girl’s age.
During these text conversations, Fortner discussed meeting the minor girl and described the kind of sexual activity he wished to engage in with her. He asked her to send him “kinky pics” and “dirty pics,” and on May 7, 2013, he sent her a sexually explicit photograph of himself. The following day, Fortner was interviewed by LPD officers and he admitted communicating with a 15-year-old girl and sending her a photograph of himself, which he acknowledged was obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Wichita Falls Man Sentenced to 97 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Dewey Wells, 45, of Wichita Falls, Texas, was sentenced by U.S. District Judge Reed C. O’Connor on October 7, 2013, to 97 months in federal prison following his guilty plea in April 2013 to his role in a major methamphetamine distribution conspiracy operating in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Wells pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine.
According to documents filed in the case, Wells admitted that on multiple occasions between November 2011 and September 4, 2012, he received multi-ounce quantities of methamphetamine from co-conspirators Steve Ysasaga, David Calandreli and others in Wichita Falls. Wells further admitted that he distributed the methamphetamine to co-conspirators Tommy Vasquez, Frankie Hubbard and others in the Wichita Falls area.
Wells also admitted that on March 8, 2012, he sold approximately 2.5 grams of methamphetamine to an undercover Texas Department of Public Safety (DPS) agent. During the transaction, Wells told the undercover agent that his supplier went by the name of “Joker,” which is co-conspirator Ysasaga’s nickname.
In addition, Wells admitted that he sold methamphetamine to an undercover DPS agent on two other occasions that same month.
To date, 36 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 28 defendants have been sentenced. The case against three defendants has not been resolved.
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.
Father and Son, Who Owned/Operated A Physician House Call Company and Billed for Services Not Rendered, Are Convicted on Conspiracy and Health Care Fraud ChargesRead the Press Release
Dr. Nicolas Padron Pleaded Guilty to Role in Conspiracy
DALLAS — A federal jury has convicted two local men on conspiracy and health care fraud charges related to their operation of a physician house call company in North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On October 4, 2013, following a five-day trial before U.S. District Judge David C. Godbey, Lawrence Dale St. John, 66, and his son, Jeffrey Dale St. John, 41, both of Grand Prairie, Texas, were convicted on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house call company.
Specifically, each defendant was convicted on one count of conspiracy to commit health care fraud and 13 substantive counts of health care fraud. Each count carries a maximum statutory sentence of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Judge Godbey remanded Jeffrey St. John into custody; Lawrence St. John was already in custody. Sentencing is set for January 27, 2014.
Co-defendant Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, pleaded guilty on September 10, 2013, to one count of conspiracy to commit health care fraud. Dr. Padron, who joined A Medical as its medical director in December 2009, testified, as did a number of nurse practitioners, physician assistants and company staff, that services billed had never been performed.
In a separate case, Dr. Padron also entered a guilty plea to one count of conspiracy to unlawfully distribute a controlled substance stemming from his operation of Padron Wellness Clinic, a “pill-mill,” that he operated in Dallas. Dr. Padron has been in custody since his arrest in June 2012 on a related federal criminal complaint.
A Medical provided physician visits to Medicare beneficiaries in their homes rather than at a doctor’s office. A Medical, which was also known as A+ Medical House Calls and ANM Physician House Calls, was owned by Lawrence St. John; Jeffrey St. John ran its daily operations. A Medical had locations in Mesquite, Texas; Dallas; and Carrollton, Texas. Its primary purpose was to certify and re-certify Medicare beneficiaries for home health services, regardless of the true condition of the patient.
Once A Medical established a Medicare beneficiary for physician home visit services, A Medical would submit billing for fraudulent care plan oversight claims. The company didn’t provide primary care physician services to Medicare beneficiaries.
According to documents filed in the case and evidence presented at trial, from May 2010 to January 2012, the defendants conspired together and with others to defraud the Medicare program. A Medical, at the direction of Lawrence and Jeffrey St. John, submitted claims to Medicare using Dr. Padron’s unique Medicare number, with Dr. Padron’s permission, regardless of the claim’s merit.
The defendants conspired together to bill Medicare for care plan oversight by Dr. Padron for numerous beneficiaries when Dr. Padron was out of town, including dates when he was out of the country and on a cruise.
In total, the defendants billed taxpayers for $1.4 million of services that were either not medically necessary or not rendered at all. Through the fraudulent certifications, Medicare was billed an additional $9.7 million by home health agencies.
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 Kate Pfeifle and J. Nicholas Bunch are in charge of the prosecution.
Convicted Felon Living in Fort Worth Is Sentenced to 78 Months in Federal Prison on Federal Firearm ConvictionRead the Press Release
AMARILLO, Texas — A Fort Worth, Texas, resident, Bounthieng Sommay, 39, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Mary Lou Robinson, to 78 months in federal prison following his guilty plea in August 2013 to one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sommay, a Laotian immigrant in the U.S. illegally, has been in federal custody since May 15, 2013, when he was arrested in the Dallas/Fort Worth area on various charges outlined in a federal indictment.
According to the factual resume filed in the case, on March 5, 2013, FBI special agents executed a search warrant at Sommay’s residence, as well as at his relatives’ residence, both located on Cane River Road in Fort Worth. At Sommay’s residence, agents found a .45 caliber semi-automatic handgun and ammunition. At his relatives’ residence, agents found two firearms, one having an obliterated serial number. Sommay admitted he owned all of the firearms.
Sommay is a convicted felon, having been convicted in South Dakota in 2008 for possession with the intent to distribute controlled substances.
At the sentencing hearing, Judge Robinson also ordered that Sommay forfeit the firearms to the government.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Potter County Attorney’s Office. Assistant U.S. Attorney Vicki Lamberson is in charge of the prosecution and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Trustee Sentenced to 33 Months in Federal Prison and Ordered to Pay $211,165 in Restitution on Tax Evasion ConvictionRead the Press Release
LUBBOCK, Texas — Randy Lynn White was sentenced today by U.S. District Judge Sam R. Cummings to 33 months in federal prison, a term of three years supervised release, and ordered to pay $211,165 in restitution, following his guilty plea in June 2013 to an Information charging one count of tax evasion. Judge Cummings ordered that White surrender to the Bureau of Prisons on November 7, 2013. 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, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the United States. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.