Northern District of Texas
Press releases recorded for this federal judicial district.
Lubbock Man Sentenced to 24 Months in Federal Prison for Committing PerjuryRead the Press Release
LUBBOCK, Texas — Ernesto Garcia, 59, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to24 months in federal prison, and a term of three years supervised release, following his guilty plea in June 2013 to one count of perjury, stemming from his sworn testimony in a detention hearing held in May 2012 in federal court in Lubbock. Garcia has been in federal custody since his arrest in late May 2012. 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, on April 16, 2013, the U.S. filed a Motion to Detain defendant Pena, in the case of U.S. v. San Juanita “Janie” Pena, Case No. 5:12-CR-024-C(2). In that case, defendant Pena was charged with conspiracy to commit tax fraud and false statements, and numerous substantive counts of the same. One of the government’s main allegations was that Pena had no home, residence, or place to live or go if she were released. Pena contested the motion and a detention hearing was held on May 2, 2012.
During that hearing, according to the factual resume, Pena called Garcia as a witness to testify on her behalf. After being sworn in, Garcia testified that he had known Pena for 10 to 12 years and that he could be responsible for her if she were released into his custody. On cross-examination, in response to questions posed to him, Garcia testified that he did not have a criminal record. In fact, Garcia well knew that he did have a criminal record, having been convicted in 1993 in Iowa for possession of a controlled substance.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Former Yoakum County Sheriff Deputy Pleads Guilty in Federal CourtRead the Press Release
Defendant Admits His Involvement in Cocaine Distribution Conspiracy
LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), appeared in federal court today and pleaded guilty to a felony offense stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Valdez pleaded guilty to an Information charging one count of unlawful use of a communications facility. Valdez, who will remain on bond, faces a maximum statutory penalty of 48 months in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
Valdez admits that from July 2009 until approximately August 2010, he used a cellphone to commit, cause and facilitate a conspiracy to distribute and possess with the intent to distribute cocaine and distribution and possession with intent to distribute cocaine.
According to documents filed in the case, in February 2010, investigators with the Texas Department of Public Safety (DPS) learned that Valdez was associating with a particular individual who was suspected of trafficking controlled substances in Yoakum County, Texas. Following a traffic stop of this individual, DPS learned that this individual had Valdez’s cell phone number saved in his cell phone and in fact, had made 15 calls to, and received one call from, Valdez, during the period November 1, 2009 to March 18, 2010.
This individual advised DPS that Valdez had instructed him/her to call or text him and say that he/she “had some information” for Valdez, which would be the signal for Valdez to go to that individual’s home so they could discuss narcotics-related matters. This individual advised that in winter 2009, Valdez asked him/her for three to four ounces of cocaine to give to another individual in Brownsfield, Texas. This individual sold Valdez three ounces of cocaine for $2,100. This individual also advised DPS that this was not the only time he/she furnished cocaine to Valdez.
In June 2010, a person, working at the direction of the DPS, met Valdez and asked Valdez for $50 worth of cocaine. Valdez advised this person that he would provide it in a day or two. This person told Valdez that they had a friend who was going to send them cocaine from Mexico. Valdez advised that he would purchase one-quarter of a kilogram of cocaine per week at $500 per ounce and sell it for $800 per ounce. Valdez also indicated an interest in receiving marijuana.
When DPS investigators interviewed Valdez in November 2011, he stated that his financial debts had become overwhelming, and he had discussed a joint venture with the first individual to smuggle 200-300 pounds of marijuana to Oklahoma or Kansas. Valdez advised that this venture never materialized, but that this same individual later approached Valdez about selling cocaine and Valdez agreed.
Valdez admitted that from summer 2009 to summer 2010, while he worked as a deputy in the YCSD, he distributed approximately 1.5 pounds of cocaine. Valdez stated that he stopped selling cocaine in August 2010 because he learned he was under investigation; shortly thereafter, he resigned from the YCSD.
The case is being investigated by the Texas DPS, the FBI, the Yoakum County District Attorney’s Office and the Yoakum County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Former TCU Football Player and Fellowship of Christian Athletes Staffer Is Sentenced to 168 Months in Federal Prison for Defrauding Investors in Nearly $16 Million Forex ScamRead the Press Release
Defendant Also Ordered to Pay $9,985,403 in Restitution
DALLAS – Eldon A. Gresham, Jr., 67, formerly of Olney, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 168 months in federal prison, three years of supervised release, and ordered to pay $9,985,403 in restitution following his guilty plea in January 2013 to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam he ran from January 2004 through June 2009. 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, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.
As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme. He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.” He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.
According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading. He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits. Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.
The U.S. Postal Inspection Service was in charge of the investigation. Assistant U.S. Attorneys David Jarvis, J. Nicholas Bunch and Kate Pfeifle prosecuted.
Grand Prairie Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
Defendant Admits Exchanging Sexually Explicit Photos with a Minor Female
DALLAS — Aaron Garcia, 21, of Grand Prairie, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to an Information charging one count of receipt of child pornography. He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Stickney remanded Garcia into custody. Sentencing is set for January 13, 2014, before U.S. District Judge David C. Godbey. 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 as a result of a cyber-tip to law enforcement indicating that in September 2012, a minor girl, “Jane Doe,” began using an app on her cell phone to have sexual conversations with an adult male. The conversations included solicitations from both the adult male and Jane Doe to meet for sex. Jane Doe identified herself as a 14-year-old, although she was actually 13. The male also solicited nude photos of Jane Doe, which she sent. He sent her two sexually explicit images of himself.
An analysis of Garcia’s iPhone by the North Texas Regional Computer Forensics Lab revealed that it contained more than 40 images of child pornography, not including the images sent by Jane Doe.
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 Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
San Angelo, Texas, Man Sentenced to 46 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison and 10 years of supervised release, following his guilty plea in June 2013 to one count of possession of 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, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography. He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Ballinger Police Department and the Runnels County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Exel Transportation Services Employees Sentenced in Federal Corporate Hacking CaseRead the Press Release
DALLAS — Joseph Roy Brown, 39, of Collierville, Tennessee, and John Michael Kelly, 43, of Plano, Texas, were sentenced yesterday afternoon, by U.S. District Judge Jorge A. Solis, to twelve months and one day in prison, and a 12-month term of probation, respectively, following their guilty pleas earlier this year to their roles in a corporate hacking conspiracy. Brown was ordered to surrender to the Bureau of Prisons on December 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The lead defendant in the case, Michael Musacchio, 62, of Plano, Texas, was sentenced earlier this month by Judge Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network. The issue of restitution is still under consideration by the court. Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking.
According to the evidence submitted at trial and plea papers filed in the case, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries.
In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees from the Exel Information Technology (IT) Department, Brown and Kelly, also went to work at Musacchio’s new company. Between 2004 and 2006, Musacchio and Brown, assisted by Kelly, engaged in a scheme to hack into Exel’s computer system to conduct corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office for the Northern District of Texas, and Trial Attorney Rick Green of the Criminal Division’s CCIP Section, prosecuted.
Federal Jury Convicts Fort Worth Man Who Robbed Credit Union in BurlesonRead the Press Release
FORT WORTH, Texas — After a one-day trial and less than 30 minutes of deliberation, a federal jury has convicted Bentley Mark Jenkins, 46, of Fort Worth, Texas, on one count of bank robbery. Jenkins faces a maximum statutory sentence of 20 years in federal prison and a $250,000 fine. He will remain in custody pending sentencing, which is set for January 10, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to evidence presented at trial and documents filed in the case, on February 9, 2013, Jenkins, wearing a towel over his head, presented a note to a teller at the Educational Employees Credit Union, located at 750 NE Alsbury Boulevard in Burleson, Texas. That note stated, “give me all hundreds and fifty and no body gets hurt.” A teller gave Jenkins all the hundreds and fifties he had in the cash drawer, but Jenkins became agitated and shouted, “more, more, more.” Feeling threatened, the teller gave Jenkins the twenties that he had in his cash drawer. Jenkins then grabbed all of the cash from the teller drawer and fled the credit union.
Burleson Police arrested Jenkins, following a car and foot chase. Jenkins was searched and a large amount of cash was found on his person and in a vehicle he was operating.
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The case was investigated by the FBI and the Burleson Police Department. Assistant U.S. Attorney John Bradford prosecuted.
Dallas Criminal Defense Lawyer Sentenced to 24 Months in Federal Prison on Money Laundering ConvictionRead the Press Release
Defendant Laundered Tens of Thousands of Dollars of Supposed Drug Trafficking Proceeds
DALLAS — Patrick Robert Simon, 34, of Dallas, Texas, was sentenced this morning by U.S. District Judge Jorge Solis to 24 months in federal prison, following his guilty plea in January 2013 to a criminal Information charging one count of money laundering, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Solis ordered that Simon, a criminal defense lawyer, surrender to the Bureau of Prisons on January 8, 2014.
According to documents filed in the case, during Fall 2009, Simon met with an individual to discuss this individual’s desire to put aside proceeds from his drug trafficking activities for his family’s use during his upcoming imprisonment for that drug trafficking. Simon discussed a few ways that he could create an apparently legitimate income stream for the individual’s family, and the fees that he would charge for doing it.
After numerous meetings and continued negotiations, on March 16, 2010, the individual met with Simon at Simon’s law office to transfer the cash. Simon explained the scheme. Simon stated that the individual was going to hire Simon’s firm to handle the appeal of his drug trafficking conviction. Simon stated that he would use his attorney trust fund to write a check every month to the individual’s designee. Simon explained that because it was a legal transaction, he would not have to report it. The three of them agreed that the checks would be written for $7500, unless a different amount was specified later. The individual gave $110,000 cash to Simon. Simon had a money counter on hand for the purpose of counting the cash. Simon accepted the cash and attempted to use the money counter, but the machine malfunctioned and Simon counted the cash by hand.
During the time that Simon was counting the cash, the three repeatedly discussed the individual’s participation in the drug trade and that the money being counted was from his drug trafficking activities. Simon also instructed the individual on a code to use in all future communications to discuss the scheme. For example, Simon instructed them that if they needed Simon to increase the amount of the monthly check, they were to call Simon and tell him that a specified college football team was playing well, and Simon would increase the monthly check by $1,000 (to $8,500). Similarly, if they wanted to decrease the amount of the monthly check, they were to call Simon and tell him that a specified professional football team was playing poorly, and Simon would decrease the monthly check by $1,000 (to $6,500). Since the cash delivery, and in execution of the money laundering scheme, Simon paid the individual’s designee on a monthly basis.
The case was investigated by Internal Revenue Service Criminal Investigation. Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald prosecuted.
Dallas Man Sentenced to 40 Years in Federal Prison for Committing Several Violent Takeover-Style Armed Bank RobberiesRead the Press Release
Co-Defendant, Who Murdered a Brinks Security Guard,
Serving Two Consecutive Life SentencesDALLAS — Jesus Sandoval, 51, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 40 years in federal prison after pleading guilty in January 2013 to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 29, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing firearm in furtherance of a crime of violence.
Lopez was sentenced in October 2012 to two consecutive life sentences, plus 85 years in federal prison, following his guilty plea in June 2012 to murdering a Brinks Security Guard and committing five violent takeover-style, armed bank robberies.
Factual resumes filed in the case detail the robberies. On February 13, 2009, Lopez and Sandoval, armed with firearms, robbed a Loomis security guard as he replenished cash in an automatic teller machine (ATM) located at the Bank of America on Camp Wisdom Road in Dallas. Lopez grabbed the guard from behind, put a pistol to his neck, threatened to kill him and demanded money. The two took the guard’s service weapon and money bags, and Lopez fired at the Loomis driver.
On August 1, 2009, Lopez and Sandoval, each armed with a firearm, robbed the Wachovia Bank located at 39703 Lyndon B. Johnson Freeway, in Dallas, threatening bank employees with death during the course of the robbery. After taking the cash, they fled in a vehicle fitted with stolen license plates.
On the morning of October 3, 2009, Sandoval and his accomplice, Lopez, each armed with a loaded pistol, entered the Chase Bank located at 12329 Lake June Road in Balch Springs. The bank was celebrating its grand opening and more than 40 people were in the bank. Lopez and Sandoval, with their pistols, threatened the lives of the people inside the bank and claimed they had a bomb in the backpack that would detonate if anyone notified the police. Following a high-speed chase, Lopez and Sandoval were arrested. Police recovered the loaded pistols, the bank’s money and the backpack from the car, which, while it did not contain a bomb, contained two boxes of ammunition.
The case was investigated by the FBI, the Dallas Police Department and the Balch Springs Police Department. Assistant U.S. Attorneys Brandon McCarthy and Jerri Sims prosecuted.
U.S. Attorney, Dea and Fbi to Hold Press Conference to Announce Major Law Enforcement ActionRead the Press Release
AMARILLO, Texas —– Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, Dan R. Salter, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Dallas Field Division, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division will host a Press Conference TODAY, TUESDAY, SEPTEMBER 24, 2013, AT 2:00 P.M. to announce a major law enforcement action in Amarillo.
DIGNATARIES ATTENDING INCLUDE:
Sarah R. Saldaña, U.S. Attorney, Northern District of Texas
John Parker, First Assistant U.S. Attorney, Northern District of Texas
Dan R. Salter, Acting Special Agent in Charge, DEA Dallas Field Division
Diego Rodriguez, Special Agent in Charge, FBI Dallas Division
Brian Thomas, Sheriff, Potter County
Scott Brumley, County Attorney, Potter County
Randall Sims, District Attorney, Potter County
Joel Richardson, Sheriff, Randall County
James Farren, District Attorney, Randall County
Robert Taylor, Amarillo Police Chief Randy Prince, Regional Commander, Texas Department of Public SafetyWHAT: Press conference to announce major law enforcement action in Amarillo
WHEN: TUESDAY, SEPTEMBER 24, 2013
2:00 p.m.WHERE: J. Marvin Jones Federal Building and U.S. Courthouse*
205 East Fifth Street (Front Steps)
Amarillo, Texas*In case of inclement weather, Press Conference will be held at Randall County Sheriff’s Office located at 9100 S. Georgia St., in Amarillo.
Press inquiries regarding logistics should be directed to Kathy Colvin at 214-659-8600 or [email protected].
Panhandle Residents Arrested in Law Enforcement OperationRead the Press Release
Approximately $500,000 in Cash, Cocaine, Methamphetamine and Firearms Were Seized During Investigation
AMARILLO, Texas — A total of 14 individuals, residents of the Amarillo, Texas, and Panhandle area, are in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation this morning led by special agents with the Drug Enforcement Administration (DEA) and the FBI, on conspiracy and drug trafficking charges outlined in two indictments returned by a federal grand jury earlier this month.
First Assistant U.S. Attorney John Parker, of the Northern District of Texas, Dan Salter, Special Agent in Charge of the DEA in Dallas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation at a press conference held this afternoon in Amarillo, Texas. Mr. Parker represented U.S. Attorney Sarah R. Saldaña who was not able to attend.
“Targeting drug cartels that have infiltrated the Panhandle area and jeopardized the safety and security of our communities will continue to be a priority in this district,” said First Assistant U.S. Attorney Parker. “Today I commend the dedicated efforts of the DEA and FBI, who led this OCDETF investigation, along with the ATF, 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.”
“Today, the DEA, along with our federal, state, and local partners, dealt a serious blow to the Gulf Cartel, a Mexican Drug Trafficking Organization, operating in the Texas Panhandle,” said Acting Special Agent in Charge Salter. “By combining efforts, this two-year investigation resulted in the federal indictment of 15 defendants determined to transport, distribute, and sell methamphetamine and cocaine throughout Amarillo and the surrounding communities. The DEA is committed to partner with federal, state, and local law enforcement to keep our citizens safe not only here in the Texas Panhandle but throughout the country. The DEA will continue to focus efforts to dismantle drug cartels determined to profit on the backs of addictions.”
“The cooperation and coordination amongst local, state and federal law enforcement resulted in the shared success of identifying the many participants of this criminal organization,” said Special Agent in Charge Rodriguez. “Today’s arrests reaffirm our commitment to the missions that we have each been charged to uphold.”
The following 11 defendants, who are charged in one indictment with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, were arrested this morning, and have made their initial appearance before U.S. Magistrate Judge Clinton E. Averitte.
• Omar Mendoza, a/k/a “Big O” and “O,” 36
• Sammy Augustin Galan, a/k/a “Hondu,” 36
• Miguel Carrasco, 33
• Conrad Nava, a/k/a “Chauncy,” 36
• Bobby Holman, a/k/a “Holmes,” 37
• Floyd Daniel Teafatiller, 32
• Jessie Herrera, Jr., 34
• Joey Nicholas Vallejo, 35
• Traci Michelle Ramos, 23
• Curtis Gonzales, 35
• Shannon Drell Harris, a/k/a “Shawn,” 43
Five of these defendants are also charged with substantive felony drug offenses and one defendant, Vongphrachanh, is also charged with a firearms offense.
The two below-listed defendants, also charged in that indictment, are presently in state custody:
• Arcel Vega Martinez, a/k/a “Chilango,” 40
• Thiraphong Vongphrachanh, 22
In the second indictment, two individuals, Juan Gabriel Mejia, a/k/a “J,” 37, and Richard Anthony Rios, a/k/a “Tex,” 36, are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Rios, who was arrested earlier this month on a related criminal complaint, and remains in federal custody, is also charged in the indictment with three substantive methamphetamine offenses. His trial is set for October 22, 2013. Mejia remains a fugitive, believed to be in Mexico.
“Our local, state and federal law enforcement partners work every day to combat drug trafficking within Texas and beyond, and this proactive and successful operation will further enhance the safety of our communities,” said Randy Prince, Regional Commander of the Texas Department of Public Safety. “This multi-agency law enforcement effort has resulted in the arrest of multiple suspects, and it was a top priority for each agency involved to dismantle and render this drug trafficking organization ineffective in its constant pursuit to distribute narcotics throughout our communities. Working together as a team enables us to maximize our efforts and resources, and thanks to the dedication and coordination of the DPS Criminal Investigations Division agents and all participating law enforcement partners, this unified operation has removed these suspects from our communities.”
The investigation involved undercover purchases and search warrants. In total, throughout the investigation, approximately $500,000 in cash, 2.25 kilograms of cocaine, 1.75 pounds of methamphetamine and six firearms were seized.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted however, the statutory penalties for the conspiracy and substantive drug counts range from 40 years to life in federal prison and millions of dollars in fines. The maximum statutory sentence for the firearms offense charged is life in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Jeffrey R. Haag.
(Download Factual Basis)
Defendant Sentenced to 37 Months in Federal Prison in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Kennedy Githaiga Wanyoike was sentenced yesterday, by U.S. District Judge Sam A. Lindsay, to 37 months in federal prison and ordered to pay $73,638 in restitution following his guilty plea in October 2012 to one count of conspiracy to file false claims. 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, Wanyoike conspired with others to file fraudulent tax returns with false wages and tax withholding that resulted in false claims. Wanyoike admitted that his role in the conspiracy was to open bank accounts to receive the electronically deposited refunds. Wanyoike opened these five bank accounts at various banks in Dallas using an address of a private mail box in Dallas and listing his employer as “Nova Consultant Services.” He had rented the private mail box and applied for the assumed name of “Nova Consultant Services” by using another person’s Texas driver’s license. The total of deposits made into all five accounts he opened was $91,602.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Christopher Stokes.
Shooter Faces up to Life in Prison on Federal Firearm ConvictionRead the Press Release
LUBBOCK, Texas — Jarrod Charles Gauna, 23, of Lubbock, Texas, pleaded guilty this morning, before U.S. District Judge Sam R. Cummings, to a federal firearm charge stemming from his shooting and injuring an individual during a drug transaction at a convenience store in Lubbock this spring. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Gauna pleaded guilty to one count of using, carrying, and discharging a firearm during and in relation to a drug trafficking crime and aiding and abetting. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Gauna faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine.
According to documents filed in the case, during a methamphetamine trafficking crime on April 20, 2013, Gauna shot and injured an individual with a Sig Sauer 9mm semi-automatic pistol at the Stripes convenience store on 50th Street in Lubbock.
The investigation revealed that Gauna told an individual that he needed to get out of town because he’d shot someone who had stolen methamphetamine from him. Gauna told another individual that he was getting ready to sell one-eighth of an ounce of methamphetamine to individual when that individual grabbed the drugs and ran. Gauna said he fired at the individual and possibly hit him in the foot.
The investigation also revealed that Gauna and others had disposed of the firearm by burying it in cement, but in May 2013, investigators were able to retrieve the firearm from a bucket of cement and identified it as the one used in the shooting.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Pilot and Passenger from San Francisco Are Sentenced on Drug ConvictionsRead the Press Release
Defendants’ Plane Met by CBP Air Interdiction as it Landed in Lubbock
LUBBOCK, Texas— Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, were each sentenced today, by U.S. District Judge Sam R. Cummings, to 37 months in federal prison. They each pleaded guilty in June 2013 to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. Judge Cummings ordered that they voluntarily surrender to the Bureau of Prisons next month. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint. Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.
According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions. Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.
CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft. On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport. Agents identified Gallanter as the pilot and Wynne-Wade as the passenger.
CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents. Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment. Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms. In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Justin Cunningham prosecuted.
Former Vice President of University Medical Center in Lubbock Is Sentenced to 51 Months in Federal Prison on Mail Fraud ConvictionRead the Press Release
LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to serve 51 months in federal prison following his guilty plea in June 2013 to one count of mail fraud and aiding and abetting. In addition, Judge Cummings ordered that Bruce pay $737,492 in restitution to University Medical Center (UMC) and its insurer, advising Bruce, “with bad choices come bad consequences.” Bruce voluntarily allowed the government to seize his retirement account at UMC prior to sentencing; those funds will be used to make restitution. 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, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rodolpho Reyes Mata, aka Rudy 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, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses. Mata, 40, of San Antonio, Texas, pleaded guilty in July 2013 to the same offense and is scheduled to be sentenced by Judge Cummings on October 18, 2013.
Bruce also admitted that he used a UMC credit card to make unauthorized payments and purchases of approximately $55,584.
The case was investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Former Stock Promoter and Attorney Arrested in Securities Fraud ConspiracyRead the Press Release
Defendants Allegedly Deceived Potential Investors About ConnectAJet.com
DALLAS — Former stock promoter Jason Wynn and Attorney Martin Cantu were arrested this week by special agents with the FBI on charges outlined in a federal indictment, returned on September 11, 2013, and unsealed today, which charges each of them with offenses related a stock fraud scheme they ran involving a company known as ConnectAJet.com. Cantu was arrested on Wednesday, made his initial appearance yesterday in federal court, and was released on bond. Wynn was arrested this morning and is scheduled to appear this afternoon, at 2:00 p.m., for his initial appearance before U.S. Magistrate Judge David L. Horan. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
ConnectAJet.com, Inc. (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, partnered with Cantu to build and market the idea into a profitable business. Cantu owned the majority of shares of CAJT.
The indictment alleges that from approximately May to October 2007, Wynn, 31, and Cantu, 56, conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices.
The indictment names co-conspirator Ryan Reynolds, a former stock broker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million. During the approximate two-month time frame of August to October 2007, Cantu realized $548,881 in profits from the sale of 250,000 CAJT shares he controlled.
The indictment charges each defendant with one count of conspiracy to commit securities fraud and one substantive count of securities fraud. A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties are five years in prison and a $250,000 fine for the conspiracy count and 20 years in prison and a $5 million fine for the securities fraud count. In addition, restitution could also be ordered.
Today’s announcement is related to 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 is being investigated by the FBI. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch are in charge of the prosecution.
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Dallas Man Sentenced to 150 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Danny Jack Harder, 39, was sentenced today by U.S. District Judge Ed Kinkeade to 150 months in federal prison and a lifetime of supervised release, following his guilty plea in March 2013 to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Harder has been in custody since his arrest in December 2012 on a related federal criminal complaint.
According to documents filed in the case, the investigation of Harder began on October 25, 2013, when an officer with the Plano Police Department, operating in an undercover capacity, encountered an individual online in a peer-to-peer (P2P) file-sharing network who appeared to have several files containing child pornography.
According to the factual resume filed in the case, on November 15, 2012, special agents with the FBI executed a search warrant at Harder’s residence in Dallas. Harder admitted that he intentionally and knowingly received and transported child pornography via P2P file-sharing software and/or networks. He also acknowledged that his P2P shared folder contained well over 350 videos of child pornography. A forensic review of his computer and computer-related items indicated that he provided the password to his P2P shared folder approximately 265 times in 2011-2012 and that on October 25, 2012, his shared folder contained the equivalent of more than 600 images available for sharing.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Plano Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Public Relations Firm Employee Sentenced to 18 Months in Federal Prison for Embezzling More Than $772,000 from EmployerRead the Press Release
DALLAS — Marci Johnson, 46, of Kaufman, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 18 months in federal prison for embezzling more than $772,000 from her employer, Spaeth Communications. Judge Solis also ordered that Johnson serve a one-year term of supervised release with the first six months served in home confinement with electronic monitoring. The Court also ordered that Johnson pay restitution of $772,829. Prior to sentencing, Johnson paid the full amount of restitution to the clerk’s registry, and Judge Solis, as part of sentencing, ordered that the money be disbursed to the victim. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson pleaded guilty in June 2013 to an Information charging one count of mail fraud. According to documents filed in the case, from at least August 2003 to March 2011, Johnson embezzled $772,829 from Spaeth Communications of Dallas. During part of that time, Johnson was the company’s Chief Administrative Officer, and in that role, had access to its company checks and company credit cards. Based on her long-standing working relationship with the company’s owner, Johnson occupied a position of trust that provided her substantial discretion over the company’s bank accounts.
Johnson admitted using her corporate American Express card for numerous personal charges, such as dining, department stores and entertainment. In addition, she used company checks to pay for outstanding charges on the company’s American Express bill, including charges she made for personal expenses. She also wrote company checks to cover charges on her personal credit cards. In fact, Johnson admitted that she wrote company checks to Citibank, her personal credit card provider, to cover the cost of an outdoor deck, hot tub, outdoor granite countertops and grill at her personal residence in Kaufman and caused false entries to be made in the company’s accounting software to prevent others from discovering her fraudulent purchases.
The investigation was conducted by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorneys J. Nicholas Bunch and P. J. Meitl prosecuted; Assistant U.S. Attorney Melissa Childs handled the forfeiture.
Garland, Texas, Man Sentenced to 48 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
DALLAS — Upwardly departing from the U.S. Sentencing Guidelines, U.S. District Judge Jorge A. Solis sentenced James K. Jenkins, 38, most recently of Garland, Texas, to 48 month in federal prison. Jenkins pleaded guilty in March 2013 to one count of failure to register as a sex offender. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Officers with the Garland, Texas, police department arrested Jenkins in October 2012 on a warrant out of DeKalb County, Georgia, for failure to register as a sex offender and a probation violation. Jenkins had been convicted in DeKalb County for statutory rape in 2002 and was required to register as a sex offender for life. After he served the sentence in this case, Jenkins registered as a sex offender, in DeKalb County, in 2006 and 2007. Sometime between September 1, 2012 and October 1, 2012, Jenkins moved to Texas, and failed to register as a sex offender, even though he resided in Texas for more than 10 days. In fact, Jenkins advised that he’d lived in Tennessee, Louisiana and Texas and had failed to register in any of those states.
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 the U.S. Marshals Service. Assistant U.S. Attorney Camille Sparks prosecuted.
Former Police Officer Sentenced to 15 Years in Federal Prison and Fined $5,000 for Producing and Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Philip Woolery, a former officer with the Grapevine, Texas, Police Department, was sentenced today by U.S. District Judge Terry R. Means to 180 months (15 years) in federal prison and fined $5,000 following his guilty plea in March 2013 to an Information charging one count of production of child pornography and one count of possession of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Woolery, 47, has been in custody since his arrest in October 2012 at his residence in Crowley, Texas, by U.S. Postal Inspectors during the execution of a federal search warrant. He admitted that in August 2011 he used his digital camera to record a minor male engaging in sexually explicit conduct in a swimming pool. In addition, Woolery admitted that in October 2012, he possessed a laptop computer that contained a sexually explicit image of a nude minor male and that he used that computer and the Internet to search for websites containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney A. Saleem prosecuted.
Former Officer with Alvarado, Texas, Police Department Admits Leaking Law Enforcement Sensitive Information in Anabolic Steroid InvestigationRead the Press Release
DALLAS — Brent Dickey, 42, a former officer with the Alvarado, Texas, Police Department, appeared in federal court today and pleaded guilty to an Information charging one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Dickey, a resident of Burleson, Texas, will remain on bond pending sentencing, which is set for January 8, 2014, before U.S. District Judge Ed Kinkeade. 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 2010, Dickey was assigned to the Stop The Offender Program – Special Crimes Unit (STOP-SCU), a Johnson County law enforcement task force that investigated drug crimes occurring in the county. Dickey knew that a particular individual, Person A, was unlawfully distributing anabolic steroids, and he failed to make this felony known to some judge or other person in civil or military authority under the United States, such as a federal grand jury or an FBI agent.
On February 5, 2010, another STOP-SCU task force officer received information that Person A was unlawfully distributing anabolic steroids. This task force officer told Dickey that he planned to make a case against, and arrest, Person A. Unbeknownst to this task force officer, Person A had been supplying Dickey with anabolic steroids.
Two days later, Dickey went to Person A’s home and leaked this law enforcement sensitive information to Person A so that Person A would avoid getting caught, arrested or prosecuted for this felony drug offense.
The FBI and the Texas Ranger Division of the Texas Department of Public Safety are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney J. Mark Penley are in charge of the prosecution.
Federal Jury Convicts Amarillo Anesthesiologist on Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, has convicted Edgar A Lockett, Jr., on all six counts of an indictment charging tax evasion. Lockett faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the counts of conviction. He could also be ordered to pay restitution. Judge Robinson remanded Lockett into the custody of the U.S. Marshal. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Christy Drake and Vicki Lamberson prosecuted.
Dallas Man Sentenced to 30 Years in Federal Prison on Drug and Firearms ConvictionsRead the Press Release
Defendant Used Home in Residential Area in Dallas to Deal Drugs
DALLAS — Brandon DeShawn Campbell, 32, who was convicted at trial in December 2012 on drug and firearms offenses, was sentenced yesterday afternoon by U.S. District Judge Reed C. O’Connor to 360 months (30 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Campbell was convicted on one count of possession with intent to distribute marijuana, one count of possession with intent to distribute methylenedioxy methamphetamine (MDMA or “ecstasy”) and two counts of possessing a firearm in furtherance of, and used during and in relation to, a drug trafficking crime.
Shortly before that trial, his co-defendant, Tyrone Alan Allen, 33, pleaded guilty to possession with intent to distribute cocaine base (crack cocaine) and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced by Judge O’Connor in June 2013 to 96 months in federal prison.
According to evidence presented at trial and documents filed in the case, Campbell and Allen used a home on Teague Street, in a residential area of Dallas, to deal various drugs, including crack, PCP, marijuana and ecstasy. During the execution of a search warrant at that residence on December 12, 2011, these drugs, along with five firearms, were recovered. Campbell was a regular worker at the house and Allen would front Campbell $500 worth of cocaine and $500 worth of marijuana per week and allow Campbell to sell the drugs from the house to keep the “trap” running at all hours of the night.
The investigation was conducted by the Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Lisa J. Miller and Taly Haffar prosecuted.
Big Spring Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 10 years in federal prison and a 15-year term of supervised release, following his guilty plea in June 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Albarado has been in custody since his arrest in March 2013 on a federal indictment alleging possession and production of child pornography and attempted enticement of a child. According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Physician-Owned Hospital Agrees to Resolve Its Civil and Criminal Liability for Benefiting from Illegal Kickbacks to PhysiciansRead the Press Release
DALLAS - Forest Park Medical Center, LLC (FPMC), a North Texas physician-owned hospital, paid over $258,000 to settle allegations that it violated the civil False Claims Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The United States contends that a FPMC representative paid illegal kickbacks to area physicians to obtain referrals for Tricare patients, a federally funded health care program, in violation of the federal law, between 2008 and 2012. Based on the same allegations, FPMC entered into a Non-Prosecution Agreement with the United States and agreed to certain conditions, as well as a federally imposed monitor for not more than 24 months. FPMC fully cooperated with the investigation, and by settling civilly and criminally, did not admit any wrong-doing or liability.
FPMC, located in Dallas, did not seek reimbursement from any federal sources such as Medicare and Medicaid, but only commercial payors and self-pay. Federal and State law usually limits the amount of compensation paid to physicians and their ability to refer certain patients under federally-insured programs. Because FPMC believed it did not accept federal funds, its representatives, to the benefit of FPMC’s behalf, offered and paid excessive remuneration and other things of value to actual and potential referring physicians or others, including amounts for “marketing” or “advertising.” Payments also were made in the form of cash and giftcards/coupons for luxury items. The United States alleges such payments were made to obtain federal health care program patients, such as TRICARE, a program for military retirees and their dependents. The United States contends such payments were unlawful kickbacks for the referral of federal health care program patients in violation of the federal Anti-Kickback Statute between January 1, 2008, and October 31, 2012. The United States initiated the investigation in response to numerous complaints.
In the Non-Prosecution Agreement, FPMC acknowledged the United States has sufficient evidence to seek an indictment for the offering and payment of illegal kickbacks in violation of federal law. In return for the non-prosecution of the hospital, FPMC selected and retained an independent monitor to address any compliance issues and the United States’ concerns regarding the allegations of illegal conduct. The monitor will be in place for not more than 24 months and will review and evaluate inpatient and outpatient claims submitted to all payors, not just federal programs. FPMC also agreed to cooperate with the United States’ ongoing investigation into certain individuals. No persons were released under the civil and criminal agreements. The United States’ investigation remains ongoing.
U.S. Attorney Saldaña praised the efforts of the investigating agencies, including the Defense Criminal Investigative Services; FBI; Department of Labor, EBSA; Office of Inspector General of the Office of Personnel Management; and FDA-CI.
“This civil and criminal resolution spares the honest employees and investors of FPMC, while holding the hospital accountable for allowing an environment where its representatives paid illegal kickbacks for referrals,” said U.S. Attorney Saldaña. “This outcome imposes well-deserved measures that we expect will ensure FPMC becomes fully compliant with federal and private health care program requirements. Whether physician-owned, not-for-profit or for-profit, the Department of Justice expects, and requires, all providers to be trustworthy and abide by the law,” Saldaña continued.
The case was handled by Assistant U.S. Attorneys Sean McKenna, Errin Martin and Lynette Wilson, and Special Assistant U.S. Attorney Glenn Harrison.
Grand Jury Indicts Former Executive at Collin Street BakeryRead the Press Release
Defendant Sandy Jenkins, Who Allegedly Embezzled More Than $16 Million From the
Bakery, is Charged With 10 Counts of Mail FraudDALLAS — A federal grand jury returned an indictment late yesterday charging Sandy Jenkins, 64, of Corsicana, Texas, with 10 counts of mail fraud stemming from his alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud.
In particular, according to documents filed in the case, Jenkins caused Bakery checks to be written to his personal creditors and then manipulated the Bakery’s computerized accounting system to show that the checks had been voided. To keep the Bakery’s books in balance and further disguise his fraudulent activity, Jenkins created checks in the Bakery’s accounting system purporting to go to an approved vendor in the same amounts as the checks to his personal creditors. The checks to Jenkins’s personal creditors were used to bankroll a lavish lifestyle that included a house in Santa Fe, New Mexico, 43 luxury automobiles, frequent travel on private planes and a watch and jewelry collection worth approximately $3 million.
The indictment alleges that between 2005 and 2013, Jenkins caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to Jenkins’s personal creditors, resulting in losses to the Bakery of approximately $16,649,786.00.
The investigation regarding assets is ongoing. Restitution to the victim is mandatory upon conviction in this case. The United States has various civil and criminal forfeiture and restitution collection remedies at its disposal, and makes its best efforts to maximize recovery for victims of crime. As a legal and practical matter, the seizure and liquidation of assets may be a lengthy process due to various laws that affect the rights of third parties.
The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
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Dallas Man Sentenced to 15 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
Defendant to Be Deported Following Incarceration
DALLAS — Eulises Abraham Nava-Romero, 26, was sentenced this morning by U.S. District Judge Ed Kinkeade to 180 months (15 years) in federal prison and a lifetime of supervised release, following his guilty plea in February 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nava-Romero has been in federal custody since his arrest in January 2013 on a related federal felony criminal complaint following the execution of a federal search warrant at his home in Dallas by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). He will be referred for deportation proceedings following his incarceration.
According to documents filed in the case, Nava-Romero admitted knowingly downloading and receiving images of child pornography from the Internet onto his home computer in March and September 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated; Assistant U.S. Attorney Camille Sparks prosecuted.
Brownwood, Texas, Man Admits Enticing A Minor Child to Engage in Sexual ActivityRead the Press Release
AMARILLO, Texas — Luis Gerardo Alvarado, 22, appeared in federal court yesterday afternoon, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to one count of enticement of a minor and aiding and abetting. While a sentencing date was not set, Alvarado, who is in custody, faces a maximum statutory penalty of not less than 10 years and up to life 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, 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.
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), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
University Park Woman Admits Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Erika Susan Perdue, 42, of University Park, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal grand jury returned a four-count indictment in May 2012 charging Perdue with two counts of transporting and shipping child pornography, one count of receipt of child pornography and one count of possession of child pornography. Purdue has been in custody since June 2012 when the court found that she had violated the conditions of release.
According to plea documents filed today in the case, if the court accepts the plea agreement, the parties agree that the appropriate term of imprisonment is 168 months (14 years) in federal prison. The court may also order a fine of up to $250,000 and up to a lifetime of supervised release. In addition, as part of her plea agreement with the government, Perdue will pay $5,000, at the time of sentencing, to one of the victims identified by the National Center for Missing and Exploited Children as “Vicky.” Sentencing is set for January 13, 2014, before U.S. District Judge Sam A. Lindsay.
On January 4, 2012, a special agent with the FBI, and on January 5, 2012, an FBI Task Force Officer with the Plano Police Department, each acting online in an undercover capacity and assuming someone else’s identity, launched publicly-available peer-to-peer file-sharing programs and discovered that an individual, using the username, “Classybitch,” later identified as Perdue, was logged on to the network. They observed that the individual’s shared folder contained numerous files, many with names consistent with child pornography. They downloaded files, directly from this individual’s computer, and several did contain child pornography, including one video of a man and a woman engaged in sexually explicit conduct with a minor child. That video is described in Count One of the indictment for which Perdue is pleading guilty.
A search warrant was executed at Perdue’s residence on April 10, 2012. She admitted that one of her screen names was “Classybitch,” and that she traded child pornography while her husband was at work.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Plano Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Lancaster Man Faces up to 20 Years in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Meliton Torres, 31, of Lancaster, Texas, pleaded guilty this morning, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Torres, who will remain on bond, is scheduled to be sentenced on December 18, 2013, by U.S. District Judge Ed Kinkeade. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Torres admitted using the Internet and file-sharing software to share and transmit images and video files of minors engaged in sexually explicit conduct. In March 2012, an officer with the Dallas Police Department’s Internet Crimes Against Children (ICAC) Unit, working online in an undercover capacity, downloaded images and videos from Torres’s shared files. On March 16, 2012, the Dallas Police Department executed a search warrant at Torres’s residence and seized computers and computer media, which were then analyzed by the North Texas Regional Computer Forensics Lab. More than 200 images and videos of child pornography were on the seized media. Of those, 23 images and 18 videos depicted victims who have been identified.
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 Dallas Police Department’s ICAC and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Dallas Residents, Affiliated with Bridgemark Investment Group, SentencedRead the Press Release
Mortgage Fraud Conspiracy Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — Eric Damon Johnson, 51, and Tracie Elaine Stenson, 50, both of Dallas, were sentenced this morning by U.S. District Judge David C. Godbey to 48 months and 57 months, respectively, following their guilty pleas earlier this year to their roles in a mortgage fraud conspiracy. In addition, Judge Godbey ordered that they pay, jointly and severally, $3,753,539 in restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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’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 nearly 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, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl prosecuted.
Plano, Texas, Man Sentenced to 63 Months in Federal Prison in Corporate Hacking CaseRead the Press Release
DALLAS — Michael Musacchio, 62, of Plano, Texas, was sentenced late yesterday by U.S. District Judge Jorge A. Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network. The issue of restitution is still under consideration by the court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. He will remain on bond until he is required to surrender to the Bureau of Prisons on a date to be determined.
According to the evidence submitted at trial, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries. In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees from the Exel IT Department, Joseph Roy Brown and John Michael Kelly, also went to work at Musacchio’s new company. Trial testimony and exhibits established that between 2004 and 2006, Musacchio and Brown, assisted by Kelly engaged in a scheme to hack into Exel’s computer system for the purpose of conducting corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.
A federal grand jury returned an indictment against the three men on Nov. 2, 2010. Brown and Kelly entered guilty pleas on May 19, 2011, and Aug. 2, 2012, respectively, and are scheduled to be sentenced on September 25, 2013.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office in the Northern District of Texas, and Trial Attorney Rick Green, of the Criminal Division’s CCIP Section, prosecuted.
Nashville Musician Sentenced to 210 Months in Federal Prison for Trying to Molest Seven-Year-Old GirlRead the Press Release
Banjo Player Arrested While in Dallas to Perform With County Band
DALLAS — Abraham Eugene Spear, 31, of Nashville, Tennessee, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, following his guilty plea in February 2013 to one count of attempted enticement of a minor. He has been in custody since his arrest on September 21, 2012, in Dallas, on a related federal criminal complaint. 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, approximately one month before he was to be in Dallas to perform at a local country music establishment, Spear sent a chat request to an undercover officer who was posing online as a “mom of curious girls.” He requested the “mom” send him photos of the girls and later asked the “mom,” if she “still need[s] a teacher when I’m down there?”
Spear admitted that over the course of the next few weeks he communicated, via the internet and cell phone, with the undercover officer, who he thought was a mother of two girls, ages seven and nine. During these communications, many of which were sexual in nature, he persuaded the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, 2012, Spear traveled from Tennessee to Dallas to perform with a band at a local bar and he agreed to meet the “mom” at a restaurant in Dallas. After he was positively identified, Spear was arrested by FBI agents.
Spear also acknowledged that he had engaged in sexually explicit communications with other mothers of minor girls, including one where he offered to pay $200 to engage in sexual acts with one mother’s minor daughter.
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.”
Man Arrested in Traffic Stop in Carson County, with 100 Pounds of Methamphetamine Hidden in A Recreational Vehicle, Sentenced to 10 Years in Federal PrisonRead the Press Release
AMARILLO, Texas — A California man, who had 100 pounds of methamphetamine hidden in the recreational vehicle he was driving, was sentenced yesterday in federal court in Amarillo, Texas. Felix Lopez Vasquez, 61, of Perris, California, was sentenced by U.S. District Judge Mary Lou Robinson to 10 Years in Federal Prison. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement.
Vasquez was arrested by a Texas Department of Safety (DPS) Trooper on Interstate 40 in Carson County, Texas, on May 13, 2013. The Trooper had stopped the vehicle, driven and owned by Vasquez, after observing a traffic violation.
Because the Trooper noticed that Vasquez seemed unusually nervous, as well as noting other suspicious circumstances, he asked Vasquez for consent to search the vehicle. Vasquez consented and the Trooper located 45 bundles of methamphetamine, with a gross weight of 100 pounds, located in a storage area above the driver and passenger seats.
The investigation was conducted by the Drug Enforcement Administration and the DPS. Assistant U.S. Attorney Vicki Lamberson of the U.S. Attorney’s Office in Amarillo, and Assistant U.S. Attorney Jeffrey Haag of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Local Man Indicted for Possessing and Producing Child Pornography Involving A Minor Under Age TwoRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, who remains in custody following his arrest earlier this summer on a federal complaint alleging that he used a prepubescent child to produce child pornography, has been indicted by a federal grand jury on one count of production of child pornography and one count of possession of prepubescent 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, on June 30, 2013, Rivers left his cellphone at a neighbor’s home. The neighbor looked through the cellphone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison and the possession count carries a maximum statutory penalty of 20 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Owner of Home Health Care Company Sentenced to 10 Years in Federal Prison for Role in Health Care Fraud ConspiracyRead the Press Release
Defendant Also Ordered to Pay More Than $25 Million in Restitution
DALLAS — Cyprian Akamnonu, 64, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to the statutory maximum of 10 years in federal prison and ordered to pay $25,466,779 in restitution, following his guilty plea in October 2012 to one count of conspiracy to commit health care fraud. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In handing down the sentence and in response to a plea for leniency, Judge Lindsay stated, “For persons out there who are inclined to commit health care fraud, a low sentence in this case would have no deterrent effect.” Judge Lindsay also ordered that Akamnonu, who is in custody, forfeit the following property to the government: four vehicles, 21 parcels of real estate located in Dallas, Cedar Hill and Grand Prairie, Texas and funds in several business and personal bank accounts.
According to documents filed in the case, Akamnonu and his wife/business partner/co-defendant, Patricia Akamnonu, R.N., co-owned Ultimate Care Home Health Services. Akamnonu admits that from January 2006 through November 2011, he conspired with co-defendants Dr. Jacques Roy and others to defraud Medicare in connection with the delivery of, and payment for, health care benefits, items and services.
A trial date of January 13, 2014, is set for Akamnonu’s co-defendants, Dr. Roy, Patricia Akamnonu, Cynthia Stiger, Wilbert James Veasey, Teri Sivils and Charity Eleda.
According to documents filed in the case, at Akamnonu’s direction, his wife Patricia, and others, recruited Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. Akamnonu and others would approach people throughout Dallas-area neighborhoods to see if they were qualified Medicare beneficiaries, and if they were, they would attempt to sign them up for home health services.
Once a beneficiary was recruited, Akamnonu would take paperwork to Sivils and other employees of Medistat Group Associates, PA., to be signed on behalf of Dr. Roy, certifying that the Medicare beneficiary was under Dr. Roy’s care, homebound and in need of skilled nursing services, thus allowing Ultimate to bill Medicare for the skilled nursing services. Akamnonu and Dr. Roy had an agreed-upon, fraudulent arrangement in which Ultimate provided Dr. Roy with the beneficiaries to bolster Medistat’s patient roster in exchange for Roy’s certification for skilled nursing services of any beneficiary sent to him. In addition, Sivils signed Ultimate’s paperwork on behalf of Dr. Roy because Akamnonu paid her cash kickbacks in exchange for doing so.
At Akamnonu’s direction, nurses would perform cursory visits to the beneficiaries at their homes that bore little relationship to the skilled nursing services for which the beneficiaries had been certified. Then, at Akamnonu’s direction, Ultimate would bill Medicare for skilled nursing services that were not necessary and were never in fact provided.
During this five-year period, more than 72% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $40 million to Medicare for skilled nursing services for these beneficiaries and Dr. Roy, in turn, incorporated these patients into his own practice and billed more than $2.3 million for services related to them.
The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys Michael C. Elliott, Mindy Sauter, P. J. Meitl and John DeLaGarza are in charge of the prosecution.
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 HEAT Strike Force, please visit: www.stopmedicarefraud.gov.
Federal Grand Jury Charges Two Dallas-Area Residents with Defrauding Investors in Gold Purchase SchemeRead the Press Release
Defendant Arrested at JFK International Airport Prior to
Boarding Flight to GhanaDALLAS — A federal grand jury in Dallas returned an indictment yesterday afternoon charging two recent, Dallas-area residents, Annetta Lou Smith, aka “Annette Crawford,” 49, and Warren Michael Hills, 54, with felony offenses related to a gold purchase investment fraud scheme they ran. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
On August 27, 2013, according to the criminal complaint filed in the case, Smith was informed that an indictment charging Smith and Hills with fraud would be presented to a federal grand jury on Wednesday, September 4, 2013. On Sunday evening, September 1, 2013, Smith was arrested by FBI agents at JFK International Airport where she was awaiting a flight she had booked to Ghana that was scheduled to depart later that evening. She made her initial appearance in federal court in the Eastern District of New York on Tuesday, September 3, and remains in custody; a date has not been set for her to appear in federal court in Dallas. A warrant has been issued for Hills’ arrest.
The indictment charges each defendant with one count of conspiracy to commit wire fraud and two substantive counts of wire fraud. A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, restitution could also be ordered.
The indictment alleges that beginning in July 2010 and continuing at least to December 2010, Smith and Hills represented to investors that they were in the business of buying gold at a discount price in Ghana. This gold, according to the defendants, came from small gold mines in Ghana that did not produce enough gold to sell to large gold refining companies. The defendants invited investors to travel to Achimoto, Ghana, and other locations in Ghana, so that they could further explain the discount gold purchase program and convince investors that the investment program was a legitimate investment opportunity.
When investors arrived in Ghana, the defendants had them open bank accounts where one account was used for investor funds, in U.S. dollars, and the other was used to deposit and transfer Ghana currency. In fact, to build each investors’ trust, the defendants encouraged each investor to conduct a “test transaction” or “test purchase” in which the defendants had a particular investor wire a relatively small amount of funds from a bank in the U.S. to the defendants to purchase one kilogram of gold. This was done with the understanding that if the investor was satisfied with this initial small purchase, the investor would later agree to send additional funds to an account he had opened.
Defendants, however, fraudulently transferred investor funds to accounts they controlled in Ghana and they fraudulently retained all of the investor funds even though they well knew that they did not make all of the gold shipments which they had promised to investors. The defendants tried to keep the scheme going by making false statements to investors to explain why all the promised gold had not been shipped. When investors demanded that all their invested funds be returned, the defendants refused and kept the money for themselves.
Smith and Hills caused substantial monetary losses to many investors. For example, one investor, M.W., transferred $586,833 to Hills’ account in Ghana. After the test transaction of one kilogram of gold, Smith and Hills falsely promised another 12.5 kilograms of gold would be delivered to M.W. However, Smith and Hills only shipped a total of six kilograms to M.W., fraudulently retaining approximately $325,000 of M.W.s funds.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
“Checkbook Bandit” Sentenced to 90 Months in Federal Prison for Committing Five Bank Robberies in Three Months in Desoto, TexasRead the Press Release
DALLAS — The bank robber who was dubbed the “Checkbook Bandit” by the FBI, as he used a checkbook registry to display his demand notes in the robberies, Victor Lemond Williams, 43, of Dallas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 90 months in federal prison. Williams has been in custody since his arrest in January 2012. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, made the announcement today.
Williams pleaded guilty to an indictment charging five counts of bank robbery, admitting that he committed the following five bank robberies in Desoto, Texas:
- Chase Bank September 19, 2011
721 W. Beltline Road December 5, 2011
December 23, 201
- Bank of America September 22, 2011
931 W. Beltline Road January 3, 2012
The case was investigated by the Desoto Police Department and the FBI. Assistant U.S. Attorney Taly Haffar was in charge of the prosecution.
- Chase Bank September 19, 2011
Roommates Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Franklin Bratcher, 44, of Dallas, was sentenced today by U.S. District Judge Ed Kinkeade to 66 months in federal prison, following his guilty plea in February 2013 to one count of possession of child pornography. Bratcher’s roommate, Howard Tyson, 45, was sentenced in June 2013 to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to the same offense. Both men have been in federal custody since they entered their guilty pleas. 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, Bratcher and Tyson each used peer-to-peer file-sharing to download child pornography from the internet onto their computers. When agents with the U.S. Secret Service executed a federal search warrant at their residence on July 26, 2011, both Bratcher and Tyson admitted that they had been downloading child pornography for at least one year. Tyson admitted that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of Tyson’s computer and his wife’s computer revealed that the hard drives contained more than 8000 images and 20 videos of child pornography. A forensic analysis of Bratcher’s hard drive revealed more than 200 images and nine videos of child pornography. Both Bratcher and Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Jury Convicts Chairman of Oil and Gas Well Promotions Company on Conspiracy and Securities FraudRead the Press Release
Always Consulting, Inc. Located in Richardson, Texas
DALLAS — The chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was convicted this morning by a federal jury on one count of conspiracy to commit securities fraud and 23 substantive counts of securities fraud. David Kevin Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, faces a maximum statutory penalty of five years in prison and a $250,000 fine per count. A forfeiture of $2,538,642 will be ordered at the defendant’s sentencing; restitution may also be ordered. Chief U.S. District Judge Sidney A. Fitzwater, who presided over the week-long trial, set a sentencing date of December 20, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, have each pleaded guilty to their roles and are scheduled to be sentenced on December 6, 2013. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI and the Texas State Securities Board (TSSB). Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz are in charge of the prosecution.
Brothers Get Long Federal Prison Sentences for Armed Bank Robbery, Assault on A Federal Officer and Related Firearms OffensesRead the Press Release
DALLAS — Brothers Johnny Charles Butler, 46, and James Robert Cleveland Butler, 44, of Quinlan, Texas, were sentenced this afternoon by U.S. District Judge Jorge A. Solis to 35 years and 25 years, respectively, in federal prison, following their guilty pleas earlier this year, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnny Butler pleaded guilty to two counts of armed bank robbery, one count of assaulting a federal officer and one count of using and carrying a firearm during and in relation to a crime of violence. James Butler pleaded guilty to two counts of armed bank robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possession of a firearm in furtherance of a crime of violence. Both have been in custody since their arrest in August 2012.
According to documents filed in the case, both Johnny Butler and James Butler admitted committing the armed, takeover-style robberies of Bank of America, 100 West Highway 80, Forney, Texas, on November 25, 2011, and May 18, 2012.
Johnny Butler also admitted firing three shots from a .357 caliber pistol at FBI SWAT agents while they were attempting to execute a federal search warrant at his Quinlan residence on August 2, 2012.
The investigation was conducted by the Safe Street Violent Crime Task Force of the FBI. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
Plainview, Texas, Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, 43, of Plainview, Texas, appeared today before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of production of child pornography. Madrigal, who is on bond, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, 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. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Lubbock County Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas—Stephen Carpenter, 33, of Slaton, Texas, appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. Carpenter, who is on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and 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. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, made the announcement today.
According to plea documents filed in the case, Carpenter used a file-sharing program to search for depictions of minors engaged in sexually explicit conduct. Carpenter downloaded and viewed many of these depictions in the form of video files, and on February 14, 2013, Carpenter was found to be in possession of a computer containing depictions of minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Slaton Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Getaway Driver in Takeover-Style Bank Robbery Pleads GuiltyRead the Press Release
LUBBOCK, Texas — The getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank branch appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment. Gabriel Tenorio, 30, of Lubbock, has been in custody since his arrest in early 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.
Tenorio’s co-defendant, Russell Eugene Heath,44, also of Lubbock, was arrested two weeks ago in Calexico, California. He is charged in a superseding indictment with multiple counts of aggravated bank robbery and firearms violations related to two bank robberies in Lubbock and one in Amarillo, Texas, in May 2013. A date has not yet been set for him to make his initial appearance in U.S. District Court in Lubbock.
According to the factual resume filed today, on May 1, 2013, Tenorio and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money. He jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio. Tenorio and Heath split the proceeds of the robbery.
Tenorio faces a maximum statutory penalty of 25 years in federal prison. Judge Cummings ordered a presentence investigation report with a sentencing date to be set following the completion of that report.
An indictment contains allegations that a defendant has committed crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation is being conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Former Big Spring, Texas, Man Faces 10 Years in Federal Prison for E-Mailing Obscene Video to Undercover Law Enforcement OfficerRead the Press Release
Defendant Believed He Was Sending Video to a 15-Year-Old Girl
LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to a superseding indictment charging one count of attempted transfer of obscene material to a minor. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Harvilicz, who has been in custody since he was arrested in Waco on March 27, 2013, on related charges, faces a maximum statutory penalty of 10 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 the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky. In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky. On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kenton County Police Department, Kenton County, Kentucky. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Woman Faces Five Years in Federal Prison for Filing False Claims in Tax CaseRead the Press Release
DALLAS — Mary Ngacha appeared this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of filing false claims against an agency of the United States. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Ngacha will remain on bond, pending sentencing, which is scheduled for December 4, 2013, before U.S. District Judge Ed Kinkeade. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ngacha’s co-defendant in the case, Harriet Mathita, pleaded guilty in November 2012 to a related tax offense and is currently serving a 30-month federal prison sentence. She was also ordered to pay $45,906 in restitution.
According to the factual resume filed in her case, Mathita admitted that from December 2009 through June 2010, an individual in Dallas, later identified as Ngacha, mailed multiple federal tax returns to the IRS that used stolen identification information and made false and fictitious claims for payment of tax refunds. Each return contained a false Form W-2 that reported significant, although fictitious, wages and withholding so as to result in a claim for a large tax refund. The returns directed the IRS to pay the refund either into a bank account or a physical address controlled by a conspirator.
The factual resume further stated that three of these fraudulent tax returns directed the refund check to be delivered to the Mathita’s address in Plano, Texas. In May 2010, a U.S. Treasury check in the amount of $45,206 was, in fact, delivered to her Plano address. Only one of the three fraudulent returns actually resulted in a refund check being mailed; the other refunds were not released by the IRS.
Ngacha, according to the order setting the conditions of her release, is a Dallas resident.
According to the stipulated facts outlined in her factual resume, from at least November 2009 through April 2010, Ngacha willfully assisted in the preparation of, and then filed, 10 federal income tax returns that contained false information. These returns had been mailed to Ngacha from an accomplice located outside the United States. After receiving them, Ngacha printed them, signed the purported taxpayer’s name and then mailed them to the IRS for processing. These returns used the last names and social security numbers of taxpayers without their knowledge or authorization and each return included a false form W-2 with fictitious wages and withholding amounts. A form schedule C was also attached showing a substantial business loss from a sole proprietorship.
Specifically, on November 2, 2009, according to the factual resume, Ngacha signed and then mailed to the IRS a tax return in the name of “Motachwa Poliquin” that used the social security number belonging to an individual that had been used without that individual’s knowledge or consent. The return also included a fictitious form W-2 that falsely reported “Motachwa Poliquin” had earned $495,855 from Fann Contracting for 2008 and that $152,054 had been withheld by the IRS. The return claimed a $147,464 refund and directed the IRS to electronically deposit that refund into an account at JPMorgan Chase Bank that Ngacha had opened. On November 27, 2011, the IRS electronically deposited the “Poliquin” refund of $148,264 into that account, and on the same day, Ngacha transferred the entire amount from that account to her personal bank account at JPMorgan Chase. Ngacha then wired $100,000 of that amount to a bank in Nairobi, Kenya, and spent the rest of the refund for her own personal use and benefit.
The investigation was conducted by IRS-CI. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Three Defendants Sentenced for Roles in Large Scale Drug Conspiracy That Operated in the Wichita Falls AreaRead the Press Release
One Defendant Sentenced to 480 Months in Federal Prison
WICHITA FALLS, Texas —Three Wichita Falls, Texas area residents, who pleaded guilty earlier this year to their roles in a large scale methamphetamine distribution conspiracy, were sentenced yesterday morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Anthony Rueben Johnston, 28, was sentenced by U.S. District Judge Reed C. O’Connor to 480 months (40 years) in federal prison. Judge O’Connor sentenced Rachel Dawn Billen, 20, and Christina Gail Thompson, 32, to 36 months and 42 months, respectively. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine. All are in custody.
Four other defendants charged in the case, Louis Griego, Jr., Janis Hernandez, James Allan Holley and Darren Scott Murphy, Jr., also pleaded guilty; their sentencing dates are scheduled during the next few months.
According to documents filed in the case, between October 25, 2012, and February 21, 2013, Johnston possessed and distributed methamphetamine that he received from his supplier, co-defendant Murphy. On October 25, 2012, officers with the Wichita Falls Police Department executed a state search warrant at Johnston’s residence. On February 15, 2013, investigators with the Wichita County District Attorney’s Office executed a second state search warrant at Johnston’s home. During those searches notes identifying customers and amounts owed, small plastic bags, a digital scale, firearms and methamphetamine were located. Johnston also admitted that during conversations he had with co-defendant Griego on February 18, 19 and 20, 2013, he told Griego that law enforcement had not found methamphetamine that was hidden inside a wall heater in his residence. He instructed Griego to get the methamphetamine and sell it. Law enforcement, however, seized the methamphetamine before Griego was able to distribute it.
Billen, who lived with Johnston, admitted that co-defendant Johnston supplied the methamphetamine she distributed. She also admitted that when customers wanted to obtain methamphetamine from Johnston, they contacted her and she, in turn, contacted Johnston. Billen also admitted that she told law enforcement officers that the firearm they seized from Johnston’s residence on October 25, 2012 was hers, when, in fact, it was not and told law enforcement it was to assist Johnston in avoiding prosecution for possessing it.
Thompson, who lived with co-defendant Holley, admitted that on multiple occasions between September 2012 and November 20, 2012, she sold methamphetamine that was supplied to her by co-defendant Murphy, to customers in the Electra, Texas and Wichita Falls areas. Thompson also admitted that on November 16, 2012, she and Holly obtained three ounces of methamphetamine from Murphy at co-defendant Hernandez’s residence in Burkburnett, Texas. Later that day, however, a Wichita Falls County Sheriff’s deputy executed a traffic stop on a vehicle that Holley was driving and in which Thompson was riding. After the vehicle stopped, a deputy observed Thompson exit the vehicle, walk away and drop something, which was later determined to be a small plastic bag containing smaller bags of methamphetamine. On November 20, 2012, law enforcement executed a state search warrant at the residence that Thompson and Holley shared in Electra and among other things, recovered notes identifying several methamphetamine customers and money owed to Thompson and Holley.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Dallas Woman Pleads Guilty to Perjury Related to Bankruptcy FilingsRead the Press Release
DALLAS — A Dallas woman, Estela Martinez, 53, appeared in federal court yesterday afternoon, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to one count of making a false statement, under penalty of perjury, related to bankruptcy filings. Martinez faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for January 20, 2014, before U.S. District Judge Sam A. Lindsay. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, whose office has been placing increased emphasis on investigating and prosecuting bankruptcy fraud.
According to documents filed in the case, Martinez filed six voluntary bankruptcy petitions: in April 2009, July 2009, January 2011, March 2011, November 2011 and in November 2012. Separate counsel represented her in each of the 2009 filings; she represented herself in each of the 2011 and 2012 filings.
In each of the four 2011 and 2012 filings, Martinez falsely and fraudulently omitted information concerning previous bankruptcy filings that she was obligated to disclose, under the penalty of perjury. Martinez fraudulently omitted listing her assigned social security number in several of the filed bankruptcy petitions.
The case was investigated by the Social Security Administration, Office of Inspector General.
Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Dallas County Man Admits Transporting and Shipping Child PornographyRead the Press Release
DALLAS --- Quincy Lamar Poole, 24, appeared today in federal court in Dallas, before U.S. Magistrate Judge David L. Horan, and pleaded guilty to one count of transporting and shipping child pornography. He faces a statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and up to a lifetime of supervised release. Poole, who is in custody, is scheduled to be sentenced on December 18, 2013, by U.S. District Judge Barbara M. G. Lynn. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, when special agents with the FBI executed a search warrant at Poole’s home in Lancaster, Texas, on July 16, 2013, they seized a laptop computer, a thumb drive and Poole’s cell phone. Email transmissions were located that showed Poole had sent two emails with a video of child pornography attached to each. In addition, five videos and one image of child pornography were located on his cell phone.
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 matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.
Abilene, Texas, Dentist Pleads Guilty in Medicaid Fraud SchemeRead the Press Release
Defendant Worked as a Pediatric Dental Provider at Kool Smiles and Personally Benefitted From Scheme
ABILENE, Texas — A dentist who practiced pediatric dentistry at Kool Smiles in Abilene, Texas, has admitted that he made false and fraudulent statements and entries on patient records, which caused Medicaid to be billed for, and pay, at least $120,000 for services falsely claimed to have been performed, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dr. Tuan Truong, aka “Terry Truong,” of Abilene, pleaded guilty this afternoon, before U.S. District Judge Jorge A. Solis, to an information charging one count of making a false statement in connection with a health care matter. Truong, who will remain on bond, faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. A sentencing date was not set.
According to documents filed in the case, in summer 2008, Truong began working for Kool Smiles, which paid him a base salary and offered opportunities for bonuses based on additional procedures he performed in excess of daily targets set by Kool Smiles management. Dentists were required to use professional judgment in the treatment and management of patient care.
Beginning on June 30, 2008, and continuing to July 10, 2009, Truong made false entries on Kool Smiles patient records, purporting to have performed dental services for Medicaid beneficiaries that he well knew he had not performed. As a result of the false and fraudulent statements and entries Truong made, Kool Smiles billed Medicaid for procedures that were not performed. In fact, during this time period, Truong made false entries in the Kool Smiles electronic database that caused Kool Smiles to bill and receive payment from Medicaid (and Medicaid affiliates) of more than $120,000, but less than $200,000 for services he claimed to have performed, but did not.
In addition, according to the factual resume filed, Truong personally benefitted from this scheme by receiving bonuses of $32,749 to which he would not have been otherwise entitled.
Kool Smiles has cooperated throughout the investigation, which was conducted by the Medicaid Fraud Control Unit of the Office of the Attorney General for the State of Texas and the FBI. Assistant U.S. Attorney Amy Burch, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.