Northern District of Texas
Press releases recorded for this federal judicial district.
Concho County Resident Faces up to 10 Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to an indictment charging one count of failure to register as a sex offender. Larock, who has been in custody since his arrest in June 2013 on a related criminal complaint, 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. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In August 2005, Larock was convicted in New York of third-degree rape, a felony. He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act. Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state. He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment. Larock failed to register as a sex offender while living and working in Eden, Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service, the Concho County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Abilene Man Admits Robbing Citibank Last MonthRead the Press Release
ABILENE, Texas — Jacob Alan Powell, 28, of Abilene, Texas, appeared in federal court today and pleaded guilty, before U.S. District Judge Sam R. Cummings, to an indictment charging one count of aggravated bank robbery stemming from the July 8, 2013, robbery of a Citibank location in Abilene. He faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set following the completion of that report. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, during the early afternoon of July 8, 2013, Powell, wearing business attire and a Hardin-Simmons University baseball cap, entered the Citibank, N.A., located at 3409 South 14th Street in Abilene. He waited several minutes before an available teller asked him to her station. Once at the teller counter, he told the teller that he was making a withdrawal. When the teller asked him for his account number, he told her that she didn’t understand and then lifted his suit jacket to show her a gun in his waistband. The gun appeared to be real to the teller and placed her in fear for her life. The teller then opened her cash drawer and put cash in a bag that Powell provided, and Powell quickly left the bank.
The following day, bank surveillance photos were shown on the local news and Powell was identified by witnesses.
The investigation was conducted by the FBI and the Abilene Police Department. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Last Defendant Is Sentenced in La Familia Prosecutions Dallas Man Sentenced to 28 Years in Federal PrisonRead the Press Release
51 Defendants Convicted and Sentenced Since June 2011 OCDETF Takedown
DALLAS — Sergio Moreno Vidales, 37, of Dallas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 336 months (28 years) in federal prison following his conviction at trial in February 2013 on conspiracy, drug and firearms charges. Vidales is the 51st defendant to be arrested, convicted and sentenced as the result of a June 7, 2011, widespread Organized Crime Drug Enforcement Task Force (OCDETF) takedown in North Texas of defendants running a methamphetamine distribution conspiracy related to the La Familia Mexican drug cartel. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Over the course of the conspiracy, agents seized approximately 100 kilograms of methamphetamine, several kilograms of cocaine, $725,000 in cash and numerous firearms and vehicles. Sentences of the 51 convicted defendants ranged from 27 months to 336 months in federal prison.
“Targeting drug cartels that have infiltrated north Texas and jeopardized the safety and security of our communities will continue to be a priority in this district,” said U.S. Attorney Saldaña. “I commend the dedicated efforts of the DEA, who led this OCDETF investigation, as well as the dedicated men and women in numerous federal, state and local agencies who worked hand-in-hand with them to strategically infiltrate and disrupt this organization.”
The jury in Vidales’ trial deliberated just 35 minutes before convicting him on all counts of the indictment: conspiracy to possess with intent to distribute and to distribute 500 grams or more of methamphetamine, possession with intent to distribute 500 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and illegal alien in possession of a firearm. Vidales had been previously deported from the U.S. to Mexico.
On June 7, 2011, the DEA, with assistance from the Texas Department of Public Safety (DPS), executed a search warrant at a residence in Seagoville, Texas. When law enforcement entered the residence, they found Vidales in bed with his hands behind his head. Another person in the bedroom with him ran to the closet and was arrested. Vidales refused to comply when agents ordered him to show his hands, so they pulled him off the bed. Law enforcement found a loaded 9mm semi-automatic handgun underneath the pillow where Vidales had his head and hands. A further search of the home revealed approximately1.2 kilograms of methamphetamine, several scales, a bullet-proof vest, a safe, nearly $6,000 in cash, drug ledgers and six additional firearms including another handgun, shotguns and a rifle. In addition, an inert hand grenade and 12 cell phones were seized.
The cases were prosecuted by Executive Assistant U.S. Attorney Jennifer Tourje and Assistant U.S. Attorney George Leal. Assistant U.S. Attorney John de la Garza handled the forfeitures.
Brownwood, Texas, Man Admits Producing and Receiving Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, appeared today before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. Villarreal has been in custody since his arrest in June 2013 on a related federal criminal complaint. He faces a total maximum statutory penalty of not less than 15 years or more than 50 years in federal prison, a $500,000 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. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On June 25, 2013, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
According to documents filed in the case, Villarreal used his cell phone to create a video of a minor male engaged in sexually explicit conduct. In addition, Villarreal admitted that he collected and traded images and videos of child pornography. Some of the child pornography was collected using peer-to-peer file-sharing software, but most of the images and videos depicting minors engaged in sexually explicit conduct were received and sent by way of his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former Marine Sentenced to 54 Months in Federal Prison and Ordered to Pay Nearly $41,000 in Restitution for Running Elaborate Fraud Scheme to Obtain Financial Help to Play on PGA TourRead the Press Release
Defendant Concocted Convincing Story That He Was a Wounded Combat Veteran
DALLAS — Michael Duye Campbell, 30, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 54 months in federal prison and ordered to pay $40,993 in restitution for running a fraudulent scheme to obtain financial assistance so that he could play professional golf, announced U.S. Attorney Sarah R. Saldaña.
Campbell pleaded guilty in March 2013 to one count of mail fraud. According to documents filed in the case, Campbell served in the U.S. Marine Corps from 2000 to 2004; he never deployed overseas and was never injured, severely or otherwise, in combat. Nonetheless, he began representing himself as a Marine combat veteran who had suffered a traumatic brain injury (TBI) while deployed to Iraq in support of Operation Iraqi Freedom.
As part of his elaborate scheme, Campbell falsely told others that while on patrol in Fallujah, Iraq, his unit was attacked when an improvised explosive device (IED), or bomb, detonated. He told others that members of his unit died in the explosion and that he awoke from his serious injuries months later at Walter Reed Army Hospital. He claimed that he couldn’t speak, and that when he did regain his speech, he stuttered. He also claimed that he suffered short-term memory loss from his TBI.
Campbell told numerous individuals that his doctor suggested that he take up golf to help with his rehabilitation for his combat injuries. Campbell also created a website and obtained a promotional video recording to further his scheme — all to obtain financial help to play in the PGA.
Campbell was convincing in his story. He met famous people who supported charity golf tournaments for wounded warriors and convinced them to write stories on his behalf and provide him access to expensive golf schools and golf courses. All of this provided Campbell with opportunities to continue his scheme, defraud others and afford him opportunities to search out endorsement contracts for golf apparel and equipment.
In fact, it was during this process that Campbell learned of the Troops First Foundation and Operation Proper Exit. These charities provide opportunities for severely-injured service members to return to the location where they sustained their injury and, instead of being medically evacuated, provide them the opportunity to walk to the aircraft and climb the ramp. Campbell participated in Operation Proper Exit VIII, co-sponsored by the USO, in December 2010. He was flown from DFW to Dubai and then provided military transportation for the remainder of the trip. Even though Campbell was neither a combat veteran nor a wounded warrior, he made the trip, which cost thousands of dollars.
Campbell deceived other charities including Operation Homefront and Counter Valor by making continued material false statements in furtherance of his scheme to defraud. He obtained many things of value from them including automobile payments, automobile insurance payments, utilities, room and board, transportation, living expenses and golf tournament entry fees. Likewise, Campbell deceived Vola LLC (an athletic apparel and footwear company located in Richardson, Texas) and Golf Technology Xtreme, Inc. (GTX) (a manufacturer of golf clubs), by obtaining, and attempting to obtain golf clothing, equipment, money and other things of value from them.
The case was investigated by the FBI and prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham.
Defendants Sentenced in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Today, Shaunthina Daniel Rushing was sentenced by U.S. District Judge Jorge A. Solis to 56 months in federal prison, following her guilty plea in March 2013 to one count of conspiracy to file false claims. Her co-conspirator, Tommy Dean Turner, was sentenced in June 2013 to 36 months in federal prison; he pleaded guilty in February 2013 to the same offense. In addition, Judge Solis ordered that Rushing and Turner pay, jointly and severally, $365,626 in restitution. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to factual resumes filed in the cases, Rushing and Turner conspired together and with others to file approximately 50 fraudulent tax returns that resulted in more than $400,000 in false claims. The returns included Forms 5405, representing that the taxpayers were entitled to claim a First-Time Homebuyer Tax Credit (FTHTC) under the provisions of the Housing and Economic Recovery Act of 2008.
That refundable tax credit could be claimed if a person purchased a main home in the U.S. after April 8, 2008, and before December 1, 2009, and if the person (and spouse, if married) did not own any other main home during the previous three years of the date of purchase. Qualifying taxpayers who purchased a home between January 1, 2009, and December 1, 2009, could claim up to $8,000 as the FTHBC.
Rushing and Turner admitted, according to the factual resumes filed in the case, that they caused bank accounts to be opened to receive the fraudulent tax refund checks, obtained and disbursed the proceeds among themselves and others and maintained detailed records and logs that identified the fraudulent tax returns, the money received and the disbursement of proceeds.
Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney J. Nicholas Bunch and DOJ Trial Attorney Robert Kemins prosecuted.
Man Admits Enticing Minor to Engage in Sexual ActivityRead the Press Release
Defendant Pleads Guilty on Friday; Trial Was to Have Begun Today
DALLAS, Texas — Phillip Amisano-Camillo, 42, a resident of Canada, pleaded guilty on Friday, before U.S. District Judge Jorge A. Solis, to one count of enticement of a minor. His trial, on a two-count indictment charging not only enticement, but also one count of traveling with intent to engage in sexual acts with a minor, was to have begun this morning in federal court in Dallas. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the plea agreement filed in the case, the parties agree that the appropriate term of imprisonment is not more than 480 months, if the court accepts the plea agreement. Sentencing is set for December 18, 2013, before Judge Solis.
According to documents filed in the case, Camillo admits that he met John Doe in an Internet chat room in April 2012. In the days and weeks after he met Doe, who he knew was a 14-year-old minor, Camillo “chatted” online with him via Skype. Camillo admits that in May 2012 he traveled from Washington State to Dallas to meet John Doe for a sexual encounter. Camillo also admits that before and during his time in the Dallas/Fort Worth area, he enticed and persuaded John Doe to sneak out of his home and meet him to engage in unlawful sexual activity. Camillo admits that he took John Doe to a local hotel and engaged in sexual activity with him.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Irving Police Department. Assistant U.S. Attorney Lisa J. Miller is in charge of the prosecution.
Wheeler County Man Sentenced to 21 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
AMARILLO — Scott Leavitt, 39, of Shamrock, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 21 months in federal prison following his guilty plea in May 2013 to a felony information charging one count of unlawful possession of a machine gun. Judge Robinson remanded Leavitt into custody. 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 August 14, 2012, deputies with the Wheeler County Sheriff’s Office were dispatched to the Cemetery Road Trailer Park in Shamrock, where they found Leavitt, outside a mobile home, suffering from a severe injury to his hand. Leavitt advised that he had been making an explosive device and that it exploded in his hand. He was rushed to the hospital.
Deputies obtained a warrant and searched Leavitt’s mobile home. Inside they found remnants of the explosive device that had injured Leavitt, some hand grenades and two machine guns that had been originally manufactured as semi-automatic weapons, but had been converted to fully automatic weapons.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Wheeler and Winkler County Sheriff’s Offices and the Amarillo Police Department’s bomb squad. Assistant U.S. Attorney Vicki Lamberson prosecuted.
Tarrant County Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Had Flash Drive Containing Numerous Images and Videos of Child Pornography in Pants Pocket When Arrested for Traffic Violation
FORT WORTH, Texas — Kenneth David Greer, 42, of North Richland Hills, Texas, was sentenced today by U.S. District Judge John McBryde to 78 months in federal prison following his guilty plea in March 2013 to one count of possession of child pornography. Greer has been in custody since his arrest in February 2013. 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, an officer with the Bedford Police Department stopped Greer when he ran a stop sign in January 2013. He had no driver’s license and a search incident to his arrest led to the discovery of a flash drive in his pants pocket that was found to contain numerous images and videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Bedford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney A. Saleem prosecuted.
Oklahoma Woman Sentenced to Two Years in Federal Prison on Tax Evasion ConvictionRead the Press Release
Defendant, a Former Resident of Arlington, Texas, Must Also Pay More Than $228,000 in Restitution to the IRS
DALLAS — Jessica Pillow Venable has been sentenced to 24 months in federal prison and ordered to pay $228,060 in restitution to the Internal Revenue Service (IRS) following her guilty plea in April 2013 to an indictment charging two counts of tax evasion. The Court ordered that she surrender to the Bureau of Prisons on August 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas (NDTX).
Venable, a former resident of Arlington, Texas, was charged by indictment in the NDTX on January 23, 2013, and shortly thereafter formally stated that she intended to plead guilty and requested that jurisdiction of her case be transferred to the Western District of Oklahoma (WDOK). At the time of her guilty plea, Venable was 26, according to the petition she filed with the Court.
According to the indictment and other documents filed in the case, Venable willfully failed to report income embezzled from Dream Machines of Texas for tax years 2009 and 2010. According to the judgment filed in the case, the $228,060 in restitution ordered paid to the IRS is a condition of supervised release. This is in addition to her obligation, pursuant to a separate settlement agreement, to pay $400 per month to the victim of the embezzlement.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Revesz of the NDTX and Charles Brown of the WDTX prosecuted.
Former Corporate Controller for Collin Street Bakery (CSB) Is Arrested and Detained on Mail Fraud ChargeRead the Press Release
Defendant Allegedly Embezzled More Than $16 Million from CSB
DALLAS — Sandy Jenkins, 64, of Corsicana, Texas, was arrested by special agents of the FBI yesterday afternoon on a federal criminal complaint charging mail fraud. Jenkins appeared before a magistrate judge this afternoon where he waived preliminary and detention hearings and was remanded into custody pending the outcome of his case. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the affidavit filed with the complaint, as well as the government’s motion for detention, Jenkins was the corporate controller for the Collin Street Baker (“CSB”) in Corsicana, Texas, from February 1998 through June 21, 2013. On June 21, 2013, Jenkins was terminated after CSB discovered the alleged fraud. In particular, Jenkins caused CSB checks to be written to his personal creditors and then manipulated CSB’s computerized accounting system to show that the checks had been voided. In order to keep CSB’s books in balance and further disguise his fraudulent activity, Jenkins created checks in CSB’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 government’s investigation shows that Jenkins caused 888 fraudulent checks to be sent to his personal creditors, resulting in approximately $16.65 million in losses to the bakery.
A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense of mail fraud is 20 years in federal prison and a $250,000 fine, per count. In addition, restitution could be ordered.
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.
U.S. Court of Appeals Affirms Verdicts and Sentences of Last Remaining Defendants in Dallas City Hall Corruption CaseRead the Press Release
DALLAS — On Friday, Aug. 2, the U.S. Court of Appeals for the Fifth Circuit in New Orleans, La., issued a 32-page published opinion affirming the convictions and sentences of the last four remaining defendants in the Dallas City Hall Corruption case, including former Dallas Mayor Pro Tem Donald Hill, his wife Sheila Farrington Hill, former City Plan & Zoning Commissioner D’Angelo Lee and Darren Reagan, head of the Black State Employees Association. In so doing, the Court emphasized that the government’s evidence was “strong” and that it “amply” supported the convictions and sentences in a case “involving substantial and wide-ranging public corruption charges related to government-subsidized [housing] development projects in Dallas.” The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña. “I commend their efforts.”
The opinion was released three months after the three-judge panel heard oral argument in the case. The appellate briefing spanned nearly 1,000 pages and included close to 20 issues. The opinion was the third released by the Fifth Circuit in this corruption prosecution. The first opinion was released in July 2012 and affirmed the conspiracy conviction of codefendant Jibreel Rashad, who was tried separately in January and February 2010. The second was released in October 2012 and affirmed the bribery and money laundering convictions of contractor Ronald Slovacek, who was tried in November 2010.
The appeal involving the final defendants, including Hill, Lee, and two others, followed a three-month trial that began in June 2009. Hill, who testified in the case, and Farrington and Lee were convicted of counts related to bribery, extortion and money laundering. Reagan was convicted of counts related to extortion. Hill received a sentence of 18 years, Lee and Reagan received 14 years and Farrington Hill received nine years.
All of the defendants appealed their convictions, and two, Reagan and Lee, appealed their sentences. In affirming the bribery and money laundering convictions, the Court reasoned that “in order to obtain Hill’s political support for his housing developments, [housing developer Brian] Potashnik agreed to hire Farrington as a community consultant … [and] regularly paid Farrington … despite Farrington never having done any work for him. Hill and Lee also demanded that Potashnik involve various non-profit organizations in his developments, and these organizations then remitted part of their fees to Farrington…. Farrington used money from [her business] account to buy cars for Hill and Lee and made cash withdrawals from the account for Lee. In return for Potashnik’s cooperation, Hill, among other acts, pushed the City Council to approve a financing deal for one of Potashnik’s housing developments.”
In affirming the extortion convictions, the Court noted that “[w]hile these machinations with respect to Potashnik were ongoing, the appellants were also involved in illegal schemes related to Potashnik’s rival, Fisher,” which culminated in “[t]he FBI … photograph[ing] Reagan giving Hill an envelope containing $10,000” after Reagan received one of the extortion payments from Fisher.
Assistant U.S. Attorneys Leigha Simonton and Wes Hendrix were the lead attorneys in the appeals. The district court cases were investigated by the FBI and Internal Revenue Service – Criminal Investigation. They were prosecuted by Assistant U.S. Attorneys Chad Meacham and Marcus Busch and Ms. Saldaña, before becoming U.S. Attorney.
Texas U.S. Attorneys Meet to Discuss Human TraffickingRead the Press Release
Districts to Build on Local Successes to Develop and Implement Statewide Anti-Human Trafficking Strategy
DALLAS — The four U.S. Attorneys in Texas, John Malcolm Bales of the Eastern District, Sarah R. Saldaña of the Northern District, Kenneth Magidson of the Southern District and Robert L. Pitman of the Western District, met yesterday in the U.S. Attorney’s office in Dallas to discuss anti-human trafficking initiatives in their districts and explore implementing a statewide anti-human trafficking strategy.
“Involuntary servitude and other forms of human abuse are an anathema to the American way of life and must be met with all the fervor and creativity that we can muster,” said U.S. Attorney Bales. “I am very pleased to join forces with our sister districts.”
“The Northern District is fully engaged, with our federal, state and local law enforcement partners, and our colleagues in governmental and non-governmental organizations, in preventing and fighting human trafficking in all its detestable forms,” said U.S. Attorney Saldaña. “While our commitment has never been stronger and we are encouraged by many recent achievements in this fight, we can always do more. By partnering with the other federal judicial districts in Texas we can maximize the effectiveness of our joint efforts in prevention and advance high-impact human trafficking prosecutions.”
“The Southern District of Texas has had tremendous success through leadership of our longstanding Human Trafficking Rescue Alliance, which partners with a variety of federal, state and local agencies and has served as a model to other districts,” said U.S. Attorney Magidson. “This is an issue that doesn't just affect us, but the entire state and nation. We hope to continue our efforts, to share ideas, to identify areas of improvement and ensure all the work in Texas is consistent and continues to be an example to the nation in this significant law enforcement arena.”
“Because of Texas’ extensive border with Mexico, we are on the front lines in the effort to combat human trafficking,” said U.S. Attorney Pitman. “It’s shocking to realize that human trafficking persists in our communities in the form of child exploitation, forced prostitution and involuntary servitude. As United States Attorneys in Texas, we are determined to re-focus our efforts to identify and rescue victims, as well as to prosecute and hold accountable those responsible for these inhumane crimes.”
The U.S. Attorneys met with Nick Sensley, the Anti-Trafficking Strategist for Humanity United (HU), a foundation committed to building peace and advancing human freedom. Mr. Sensley is a key player in HU’s efforts to guide states in developing statewide anti-trafficking strategies that use collaborative, innovative efforts to identify and stop traffickers and help victims heal and rebuild their lives. Members of the North Texas Anti-Trafficking Team’s Executive Board joined the meeting for further discussion.
The Justice Department’s commitment to preventing human trafficking, bringing traffickers to justice and assisting victims has never been stronger. While the Department’s work has sent a clear and critical message that human trafficking crimes will not be tolerated, there is still much to be done. This meeting constitutes another step in the fight against modern day slavery.
Tax on the Run Owners and Others Plead Guilty in Tax Refund Scheme Involving Misuse of First-Time Home Buyer Tax CreditRead the Press Release
Impoverished Taxpayers Were Recruited to
Allow Their Names and SSNs to be Used in Filing Fraudulent ReturnsDALLAS — Four defendants, whose trial was to begin this Monday on charges related to a tax refund conspiracy they were involved in regarding the misuse of the First-Time Home Buyer Tax Credit, pleaded guilty this afternoon before U.S. District Judge Jorge A. Solis. The four have been on bond since their arrest in January 2012 by special agents with Internal Revenue Service (IRS) – Criminal Investigation. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jason Phread Altman, Emanuel James Harrison and Fread Jamille Jenkins each pleaded guilty to one count of conspiracy to file false claims, which carries a maximum statutory penalty of 10 years in federal prison. However, according to the plea agreements filed today, the parties agree that 84 months is the appropriate custody disposition of each case. If the Court accepts the plea agreements, this provision is binding upon the Court.
Also today, Jarrod Phread Altman pleaded guilty to one count of false, fictitious or fraudulent claims. He faces a maximum statutory penalty of five years in federal prison. The two other defendants charged in the case, Rickel Shine and Billy Hamilton, each pleaded guilty, in May 2012 and February 2013, respectively, to one count of conspiracy to file false claims.
Each count of conviction also carries up to a $250,000 fine and restitution. In addition, according to administrative forfeiture settlement agreements filed, Jason and Jarrod Altman must forfeit two luxury vehicles that were seized by the government.
According to the factual resumes filed in the case, Jason and Jarrod Altman, along with Harrison, owned and operated a tax preparation business, Tax On The Run, located in Dallas. Jenkins worked as office manager for the business, while Shine and Hamilton worked as intermediaries and recruited clients on behalf of the owners.
Beginning in March 2009, Jason and Jarrod Altman, Jenkins, Harrison, Shine and Hamilton conspired to defraud the IRS, according to the factual resumes filed in the case. They used Tax On The Run to file false Forms 1040, in the names of numerous clients, which overstated and fabricated income and tax deductions on Schedule C and Forms 5405 by falsely representing that the taxpayers were entitled, under the provisions of the Housing and Economic Recovery Act of 2008, to claim a tax credit as a first-time homebuyer. As part of the scheme, according to factual resumes filed in their cases, Shine and Hamilton acted as intermediaries to recruit clients, and they were paid after they recruited impoverished taxpayers to allow their names and social security numbers to be used to file fraudulent tax returns. The fraudulent returns were routinely filed even though the tax preparers never met the taxpayers and with the full knowledge that none of the taxpayers qualified to claim the credit, according to the factual resumes.
Tax On The Run used Santa Barbara Bank and Trust (SBBT) to process refund anticipation loans based on the fraudulent returns filed. The factual resumes filed further state that after electronically filing the false tax returns, Tax On The Run would be notified by SBBT that the loan had been approved and a check could be printed and provided to the taxpayer. Once the check was printed, the taxpayer was transported to a local check cashing business and instructed to cash the refund check. After it was cashed, members of the conspiracy paid the taxpayer a small percentage of the refund and kept the remainder of the proceeds, according to the factual resume.
Defendant Jarrod Altman admitted, according to the factual resume filed in his case, that during tax year 2009, he failed to report approximately $71,133 in taxable income which was obtained from his business, Tax On The Run. Of that amount, Jarrod Altman admitted that he received $54,140 in the form of a payment by check by his brother, Jason Altman, for a 2007 Mercedes Benz S550, which was purchased in June 2009, for Jarrod Altman’s use, with money from Tax On The Run. He further admitted that he falsely reported $57,207 in taxable income for tax year 2009 that did not include the $71,133 income described above, and as a result of his false statements regarding his taxable income, Jarrod Altman caused $20,135 in tax harm to the IRS.
IRS-CI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch, Brian Poe and Rick Calvert are prosecuting
Pilot and Passenger of Plane That Crashed at Yoakum County Airport After Refueling Plead Guilty to Drug ChargesRead the Press Release
Approximately 160 Pounds of Marijuana on Board Plane
That Belly Landed at Airport in Plains, TexasLUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to a felony drug charge. Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, each pleaded guilty to one count of possession with intent to distribute 50 kilograms or more of marijuana and aiding and abetting. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine, and will remain on bond pending sentencing. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas. When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway.
On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston. They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel. After fueling, the plane encountered engine problems when attempting to take off and crashed.
The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport. Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site. A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds. The drug-detector dog also alerted to the presence of drugs inside the plane.
Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane. Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence. They both admitted that they had intended to distribute the marijuana to other individuals in Houston.
The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety. Assistant U.S. Attorney Justin Cunningham prosecuted.
Kaufman County Man Sentenced to 30 Years in Federal Prison for Producing Sexually Explicit Photos of Small ChildrenRead the Press Release
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to 30 years in federal prison and a lifetime of supervised release following his guilty plea in April 2013 to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. Johnson has been in custody since his arrest in February 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.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
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 was in charge of the investigation; Assistant U.S. Attorney Camille Sparks prosecuted.
Dallas Man Is Sentenced to 30 Years in Federal Prison and Ordered to Pay Nearly $4 Million in Restitution on Multiple Fraud ConvictionsRead the Press Release
Fraudster Was Found Guilty of Running an Investment Fraud Scheme While Awaiting Sentencing on a Prior Securities Fraud Conviction
DALLAS — Joshua Wayne Bevill, 33, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to a total of 30 years in federal prison and ordered to pay nearly $4 million in restitution for his conviction in January 2011 on one count of securities fraud and for his conviction in April 2013 for crimes he committed while awaiting sentencing on that conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
For the 2011 conviction, Judge Boyle sentenced Bevill to the statutory maximum sentence of five years’ imprisonment. In documents filed when he pleaded guilty, Bevill admitted that between 2005 and 2008, he and various associates raised several million dollars from investors by selling interests in supposed oil and gas development projects. Bevill, however, was simply stealing investors’ money rather than using it to earn profits in the oil and gas business. He pleaded guilty to one count of securities fraud and admitted that he defrauded numerous investors of more than $750,000.
While awaiting sentencing on that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners. Bevill contacted potential investors and sold them investments in a supposed oil and gas business. As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners. Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle. The court ordered his arrest and detention in late February 2011, and he has been in custody since that time.
On April 8, 2013, following a bench trial on those crimes, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release. For these convictions, Judge Boyle sentenced Bevill to 20 years’ imprisonment on each count, plus five additional years under 18 U.S.C. § 3147 for committing the offenses while on bond. Each of the sentences from the 2013 conviction was ordered to run concurrent to each other, and the five-year term from the 2011 conviction was to run consecutive, for a total term of imprisonment of 30 years. In addition, the more than $100,000 remaining in Bevill’s business bank account seized by the FBI was ordered forfeited to the United States.
These cases were 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 FBI investigated the cases. Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz prosecuted.
California Men, Who Admitted Conspiring to Steal Shipments from Tyson Fresh Meat Packaging Plant in Amarillo, Are SentencedRead the Press Release
AMARILLO, Texas — Three men, all residents of California, who admitted their involvement in a conspiracy to steal interstate shipments of meat from Tyson Fresh Meat Packaging Plant in Amarillo, Texas, were sentenced this afternoon by U.S. District Judge Mary Lou Robinson. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ruben Ashikyan, 56, of Sherman Oaks, Calif., was sentenced to 18 months in federal prison and fined $3000. Levon Ashikyan, 31, of Glendale, Calif., who is Ruben Ashikyan’s son, was sentenced to 12 months in in federal prison. Grigor Darmandjian, 56, of North Hollywood, Calif., was also sentenced to 18 months in federal prison. Each defendant pleaded guilty in May 2013 to one count of conspiracy to steal interstate shipments. All defendants are in custody.
According to documents filed in the case, the FBI began an investigation in August 2011 after learning that a load of beef was stolen from a meat packing plant in Amarillo. The theft occurred when someone, who had stolen the identity of a legitimate trucking company, picked up the load from the plant but failed to deliver the load to its intended destination in California. The investigation revealed that there had been more than 28 similar cargo thefts that occurred between April 2011 and February 2013, and 19 of the 28 were meat thefts. The cargo’s value varied from $30,000 to $200,000 for each theft.
In February 2013, the FBI was contacted about two loads of fresh meat as Monarch Trading Company had contacted MTS Transportation to have the loads, valued at approximately $175,324, picked up at the Tyson plant in Amarillo and delivered to a cold storage facility in Vernon, Calif. MTS posted the loads on a commonly-used website and a trucking company, Expo Transportation & Logistics, Inc. from Muskegon, Michigan, replied. Believing this was a theft attempt, MTS contacted the FBI, and in an effort to apprehend the thieves, a sting operation was arranged.
A few days later a Volvo tractor pulling a white refrigerated trailer arrived at the Tyson security gate. There was a sign on the tractor that read, “Expo Transportation, Inc., Muskegon, MI, MC-389238 and USDOT-895024.” The van was driven by Ruben Ashikyan; Levon Ashikyan and Darmandjian were passengers. After Ruben and Levon Ashikyan emerged from the tractor and completed the Tyson paperwork, they drove the truck to the plant’s warehouse office, where they were arrested. The investigation revealed that the tractor’s license plate did not belong to the Volvo and the trailer’s California license plate did not belong to the trailer. Inside the tractor was a fictitious California registration card and there was an “Expo Transportation” sign on the Volvo tractor that covered different MC and USDOT numbers.
The case was investigated by the FBI, the Texas Rangers, the Dumas Police Department and the Potter County Attorney’s Office. Tyson Foods and MTS Transportation provided valuable assistance in the investigation.
Assistant U.S. Attorneys Christy Drake and Vicki Lamberson prosecuted.
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Plead Guilty to Conspiracy to Commit Health Care Fraud; Third Defendant Admits Conspiring to Make False Statements to A Financial InstitutionRead the Press Release
DALLAS — This morning, two businessmen, Stanley Thaw, of Frisco, Texas, and Michael Kincaid, of Plano, Texas, who owned and operated hyperbaric oxygen therapy companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to their roles in a conspiracy to commit health care fraud. Kernell Thaw also appeared in court this morning and pleaded guilty to one count of conspiracy to make false statements to a financial institution regarding properties in Dallas that she purchased from a local home builder. 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, from January 2008 through June 2011, Stanley Thaw, 71, and Kincaid, 56, conspired together, and with others, to defraud Medicare by making false and fraudulent representations and promises in connection with payments of hyperbaric oxygen therapy (HBOT) services and items. HBOT is a therapy used to assist in healing diabetic sores or amputations in an outpatient setting. HBOT is administered by placing the patient in a hyperbaric oxygen chamber to receive increased levels of oxygen; each session of HBOT is commonly referred to as a “dive,” and generally lasted between ninety minutes and two hours.
The HBOT companies employed physicians to attend and supervise HBOT sessions to ensure that a patient was medically appropriate for the HBOT on that particular day and also to treat any medical emergency that may occur. Stanley Thaw and Kincaid admitted that they defrauded Medicare by billing multiple times for the physician supervision and attendance of HBOT-related services, when, in fact, the physician only supervised and attended one session/dive that day.
Stanley Thaw and his co-conspirators were advised on multiple occasions that billing for multiple dive sessions was improper and that they had overbilled Medicare. They continued to direct fraudulent claims to Medicare and other health care programs through at least June 2011.
Kernell Thaw, 50, admitted that from July 2010 through April 2011, she and a co-conspirator, knowingly made false statements to influence a local bank and its mortgage division, in connection with obtaining a residential loan on a property in north Dallas. Had the financial institution known these false statements and representations were false, it would have rejected their loan.
Each of the three defendants faces a statutory maximum penalty of five years in federal prison, a $250,000 fine or twice the pecuniary gain to the defendant or loss to the victim, and restitution. Each of the defendants is scheduled to be sentenced on November 13, 2013, by Judge Solis. The plea agreement also includes a forfeiture allegation, which would require Stanley Thaw and Kernell Thaw to forfeit all proceeds traceable to their offenses.
The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General, the Office of Personnel Management - Office of Inspector General and the Texas Department of Public Safety. To learn more about health care fraud, please visit: http://www.stopmedicarefraud.gov/
Assistant U.S. Attorneys Sean McKenna, Glenn Harrison and P.J. Meitl are in charge of the prosecution.
Collin County, Texas, Man Admits Embezzling Approximately $1 Million from Employer, Hudson Advisors, LLC, in Wire Fraud SchemeRead the Press Release
DALLAS — Steven Chen Yu, 39, of Allen, Texas, appeared before U.S. Magistrate Judge Paul D. Stickney this morning and pleaded guilty to an information charging wire fraud in connection with his attempt to embezzle approximately $1 million from his employer, Hudson Advisors, LLC and its global subsidiaries (Hudson). Yu, who remains on bond, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine or twice any pecuniary gain to Yu or loss to the victim(s) and restitution. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hudson was a globally integrated asset management company that performed due diligence and analysis, asset management and other support services for Lone Star Funds, a leading private equity firm that invested globally in distressed assets. Hudson employed approximately 800 professionals in the U.S. and had affiliate offices in Europe, Canada and Japan. Hudson’s main offices were in Dallas.
Hudson maintained a private client department that employed several private client managers. It was responsible for providing accounting and bill payment services for Hudson owner J.G. As part of his duties, Yu was authorized by Hudson to access all of J.G.’s personal financial information.
From September 2009 through March 2012, according to documents filed in the case, Yu engaged in several fraudulent acts which enabled him to embezzle substantial funds belonging to J.G. For example, in September – October 2009, Yu fraudulently re-submitted duplicate invoices for legitimate repair work that had been done on J.G.’s boat, knowing that the invoices had already been paid. Yu substituted his own personal bank account information, and in this manner, was able to fraudulently divert and embezzle $150,572 from J.G.’s accounts.
In another scheme, and in a similar manner, on December 1, 2009, Yu defrauded J.G. by also using duplicate invoices for landscaping work that had previously been done on J.G.’s personal residence in Massachusetts. Yu was able to fraudulently divert and embezzle more than $69,000 in funds from one of J.G.’s trust accounts for duplicate payment on the landscaping work. However, later in December 2009, Yu fraudulently caused the more than $69,000 to be deposited back into the account from which they had been diverted prior to Hudson becoming aware of any of Yu’s unlawful activities in connection with the fraudulent diversion or embezzlement of funds.
As part of a larger scheme, beginning in 2009 and continuing through March 2012, Yu fraudulently used and diverted J.G.’s funds which Yu used to make advance “estimated tax payments” for Yu’s benefit in connection with his own future state income taxes due in Massachusetts. When Yu filed his personal income tax returns with Massachusetts, he claimed that he owed no taxes and requested Massachusetts pay him a complete refund of all the estimated tax payments he had made to the state with funds he had stolen from J.G.
During the period from about 2009 through March 2012, as part of his scheme to defraud, Yu attempted to steal and embezzle a total of approximately $1,292,000 from Hudson owner J.G.
The investigation was conducted by the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Dallas Man, Who Pleaded Guilty to Role in Cocaine Distribution Conspiracy Linked to Los Zetas Cartel, Is Sentenced to 84 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Forfeit Vehicle, More Than $200,000 Cash and JewelryDALLAS — Omar Guerrero Acosta, aka “Pilas,” 30, of Dallas, was sentenced late last week by U.S. District Judge Jorge A. Solis to 84 months in federal prison, following his guilty plea in February 2013 to one count of conspiracy to distribute five kilograms or more of cocaine. He was also ordered to forfeit a vehicle, approximately $209,493 in cash and jewelry that had been seized. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Acosta is one of 13 defendants indicted in September 2011 for running a cocaine distribution conspiracy in the Dallas-Fort Worth area that was linked to the Los Zetas cartel. Acosta is the tenth and last defendant convicted in the case to be sentenced; two defendants remain fugitives and charges against another were dismissed. Convicted defendants and their sentences are:
Cesar Alonzo De La Rosa Jordan, aka “Gordo,” 30, 78 months
Rosendo Chappa, Jr., aka “Borado,” 39, 87 months
Joel Alejandro Rodriguez, aka “Joe,” 51, 98 months
Arturo Picaso, aka “Flaco,” 32, 152 months
Ricardo Morales, Sr., 52, 70 months
Ricardo Morales, Jr., aka “Rica,” 27, 3 years’ probation
Jose Luis Rodriguez, aka “Mas,” 41, 37 months
William Savala, aka “Will,” 39, 51 months
Reynaldo Facundo, 32, 63 monthsAcosta admitted that beginning in January 2011, cocaine supply sources in Mexico began importing multi-kilogram shipments of cocaine into the U.S. through border checkpoints near Laredo. Acosta admitted that couriers hired by the drug suppliers in Mexico delivered the cocaine to him and once the drugs arrived in Dallas, he and others maintained care, custody and control of the drugs at “stash” locations throughout the Dallas area. The total amount of cocaine that was reasonable foreseeable to him during the time of the conspiracy was more than 100 kilograms.
In July 2011, for example, Acosta’s supply source delivered approximately 119 kilograms of cocaine to him and, subsequently, multi-kilogram quantities were distributed to multiple customers, including co-defendant Rosendo Chappa, aka “”Borado.” Acosta admitted that on August 19, 2011, he and Chappa made arrangements for Chappa to deliver cash to Acosta in payment for seven kilograms of cocaine that Acosta had previously delivered to Chappa. On August 19, 2011, Acosta met Chappa at a department store parking garage in Dallas and collected approximately $159,000 in drug proceeds. Both Acosta and Chappa were arrested. After Acosta was arrested, law enforcement searched an apartment on Noel Road that he used, and they seized approximately six kilograms of cocaine and an additional $48,000 in drug proceeds that belonged to Acosta.
The FBI began its investigation into this large-scale drug trafficking organization, the Morales-Picaso Drug Trafficking Operation (MPDTO), as a result of intelligence gathered from the “Operation Greedy Grove” investigation and prosecution which targeted a large-scale cocaine, crack cocaine and marijuana distribution organization known for its violence. Operation Greedy Grove culminated in September 2010 with the arrest of 28 individuals on federal and state drug charges. Law enforcement officers seized approximately three kilograms of cocaine, 14 firearms and $210,000 in U.S. Currency and assets. The 16 defendants charged federally in that case have all pleaded guilty to their respective roles in the conspiracy have been sentenced, including defendant Gary Montgomery, who shot a Bureau of Alcohol, Tobacco, Firearms and Explosives agent during his arrest. Montgomery was sentenced to 348 months in federal prison.
The investigation revealed that the MPDTO was involved in the illegal importation of approximately 100 kilos per month from Mexico. Once the cocaine was smuggled across the border, the loads were distributed to members of the MPDTO in exchange for large sums of cash, which were then vacuum-sealed in bags, concealed in vehicles and transported back to Mexico. During the course of this investigation, law enforcement seized more than 36 kilograms of cocaine, seven firearms, 14 vehicles and nearly $300,000 cash, which was forfeited to the U.S.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert was in charge of the prosecutions and Assistant U.S. Attorney John de la Garza handled the forfeitures.Fort Worth Man, Who Ran A Hydroponic Supply Store, Is Sentenced to 37 Months in Federal PrisonRead the Press Release
DALLAS — William Luck, II was sentenced today by U.S. District Judge Jane J. Boyle to 37 months in federal prison, following his guilty plea in February 2013 to one count of failure to File IRS Form 8300. Judge Boyle ordered that he surrender to the Bureau of Prisons on August 21, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the Internal Revenue Service (IRS), one must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if one’s business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.
According to the factual resume filed in the case, Luck owned a business called Hydro Expo. Law enforcement learned that Hydro Expo was facilitating indoor marijuana cultivating operations by supplying growing equipment and supplies to persons who were illegally growing marijuana. During an undercover operation, law enforcement arranged the purchase of approximately $20,000 worth of growing equipment and supplies from Hydro Expo; Luck was clearly informed that the equipment and supplies were going to be used in an illegal indoor hydroponic marijuana cultivation operation.
In October 2009, according to the factual resume, Luck accepted $17,000 in cash from an undercover who then took delivery of the marijuana growing equipment. During that meeting, Luck stated that he would break up the $17,000 cash into smaller amounts and that he would not identify the purchasers in any paperwork. Luck never filed the required IRS Form 8300, as required by law and regulations.
According to the order setting conditions for his release, Luck is a resident of Fort Worth. According to the plea agreement filed in the case, Luck agreed to pay $17,000 to the IRS in satisfaction of restitution associated with conduct underlying his conviction.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation.
Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.
Lubbock Man Admits Robbing Two Banks and One Credit UnionRead the Press Release
Defendant Admits Robbing First United Bank, Plains Capital Bank and Alliance Federal Credit Union
LUBBOCK, Texas — Jeffrey Hensley, 42, of Lubbock, Texas, appeared before U.S. District Judge Sam R. Cummings today and pleaded guilty to three counts of bank robbery and credit union robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He faces a statutory maximum sentence of 60 years in federal prison and a $750,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Hensley has been in custody since his arrest in April 2013.
According to documents filed in the case, on September 14, 2012, at approximately 1:25 p.m., Hensley, carrying a bank bag and wearing blue jeans, a gray pull-over and a black baseball cap, entered the First United Bank, 9801 Indiana Avenue, in Lubbock, opened the bag and removed a note that he passed to a teller. The note stated words to the effect of: “Don’t make me show my weapon.” Hensley told the teller, “Give me your bundles. Keep your hand away from your button and quit stalling.” The teller surrendered cash to Hensley who placed most of it in the bank bag, retrieved the note and exited the bank.
On December 8, 2012, at approximately 4:54 p.m., Hensley, carrying a bank bag, entered the Plains Capital Bank, 6002 Slide Road in Lubbock and handed a teller a note that read: “Fill the bag with all the money in the drawer - if I have to show my weapon I will use it - you have 15 seconds!!” Hensley ordered the teller to put the money in the bag and lifted his hooded sweatshirt as if to partially display a firearm. The teller surrendered cash and Hensley stuffed the money inside the bank bag and exited the bank.
On February 13, 2013, at approximately 3:45 p.m., Hensley entered the Alliance Federal Credit Union, 6601 Indiana Avenue in Lubbock, walked up to a teller and handed him a note. Hensley then handed a pink cosmetic bag to the teller and told her: “Hurry up! Everything in the drawer goes in the bag. Put the money in the bag. Put the money in the bag.” The teller surrendered the cash to Hensley who put it in the pink bag and exited the bank.
On April 22, 2013, a federal search warrant was executed at Hensley’s residence and he was arrested. Hensley admitted committing the robberies but informed detectives with the Lubbock Police Department (LPD) that although a firearm was found at his residence, he never carried that firearm during any of the robberies.
This case is being investigated by the FBI, the Texas Department of Public Safety, the LPD and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Arlington, Texas, Man Fined $10,000 for Role in Conspiracy to Obstruct Justice by Attempting to Influence A Federal JudgeRead the Press Release
FORT WORTH, Texas — At a sentencing hearing held this morning in federal court in Fort Worth, an Arlington, Texas, man, Shani Shehu, 42, was sentenced by U.S. District Judge John McBryde to a two-year term of probation and fined $10,000, following his guilty plea in April 2013 to an information charging one count of conspiracy to obstruct justice by attempting to influence a federal judge. 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, from early February 2012 to mid-May 2012, Shehu conspired with Halid Amer, 42, formerly of Grand Prairie, Texas, to obstruct justice in an effort to unlawfully obtain a probated sentence for Amer. Amer had pleaded guilty in January 2012 to his role in a mortgage fraud conspiracy and at the time, was awaiting sentencing by U.S. District Judge Jorge A. Solis, in Dallas.
On February 4, 2012, according to the plea documents, Shehu arranged for Amer to meet with a man from Arlington who could put Amer in touch with someone who knew Judge Solis. At the meeting, Amer told the man that he was willing to pay a cash bribe to Judge Solis in return for a guarantee of a probated sentence. This man, however, advised law enforcement of the plans and the FBI arranged for an undercover agent to meet with Shehu and Amer. During an April meeting, Amer expressed concern that if he were caught making a bribe, he could make matters worse for himself. Then, in a meeting one week later, Shehu expressed concern that he believed that they might be working with an undercover law enforcement agent and wanted to receive assurances that they were not. On May 18, 2012, during a meeting with the undercover agent, Amer and Shehu continued negotiating the amount, method and timing of the payment of the cash bribe to Judge Solis.
On June 26, 2012, after the government learned of Amir’s plan to give a cash bribe to the judge in return for a probated sentence, the Court granted the government’s motion to revoke Amir’s bond. Amer is currently serving a 41-month federal prison sentence in Federal Correctional Institute (FCI) Memphis on the mortgage fraud conviction. The conspiracy case against Amir was transferred to the Western District of Tennessee, where he has pleaded guilty and been sentenced on the offense.
The case was investigated by the FBI. Assistant U.S. Attorney Jay Weimer prosecuted.
Precious Metals Dealer Pleads Guilty to Federal Tax ChargeRead the Press Release
Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas
DALLAS — Joel Anderson appeared in federal court this morning, before U.S. District Judge Reed C. O’Connor, and pleaded guilty to an information that charges one count of willfully making and subscribing a false income tax return. Anderson faces a statutory maximum penalty of three years in federal prison, a $250,000 fine and restitution – including all taxes, interest and penalties owed to the U.S. Sentencing is set for November 21, 2013, before Judge O’Connor. 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, Anderson, a Dallas resident, owned Richardson Gold & Silver Exchange and Frisco Gold & Silver Exchange.
Anderson willfully and substantially underreported his income, which he derived from these businesses, for tax years 2008 through 2010, according to the factual resume. During those tax years, the factual resume goes on to state, Anderson deposited checks into his personal bank account from the sale of precious metals totaling more than $1 million, but did not report this income on his personal or corporate returns.
According to the plea agreement filed in the case, Anderson’s offense, including relevant conduct, resulted in a $194,273 tax loss to the U.S.
The case is being investigated by Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Joseph M. Revesz is in charge of the prosecution.
Former Middle School Teacher Is Sentenced to 84 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas
DALLAS — Daniel Oberlender, 46, a former choir teacher at Cross Timbers Middle School in Grapevine, Texas, was sentenced today, by U.S. District Judge Reed C. O’Connor, to 84 months in federal prison, after pleading guilty in December 2012 to a criminal Information charging one count of distribution of child pornography. He has been in custody since December 20, 2012, when he was arrested on a federal criminal complaint that was filed after law enforcement executed a search warrant at his residence in Grapevine on December 18, 2012. 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, Oberlender used his Apple Macbook computer to connect to the Internet and use Skype software to share a video file depicting a minor engaged in sexually explicit conduct.
Specifically, according to the factual resume filed in the case, on August 5, 2012, Oberlender used Skype to communicate with a person known as “DJH.” During that communication, Oberlender permitted DJH to remotely view the entire contents of his computer screen. Oberlender then began playing a video file, viewable by DJH, that depicted an adult male and a minor male engaged in sexually explicit conduct. The minor male, whose eyes are shut during the entire video, appears to be approximately five or six-years-old. DJH, who was located in Dallas, used Evaer software to capture and record the contents of Oberlender’s computer screen, to include the transmission of the video.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc For more information about internet safety education, please visit http://www.justice.gov/psc and click on the tab "resources."
The investigation was conducted by the FBI. Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.
DeSoto, Texas, Man Sentenced to Nearly 25 Years in Federal Prison for Producing Child PornRead the Press Release
DALLAS — Quaylan Anderson, 25, of DeSoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 293 months in federal prison, following his guilty plea in April 2013 to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in December 2011, Anderson met Jane Doe, who was then 13-years-old. Anderson admits that on multiple occasions between December 2 and December 5, 2011, he engaged in sexual acts with Jane Doe, and on some of those occasions, he used his cell phone to take photos of himself and Jane Doe engaging in that 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 case was investigated by the DeSoto Police Department and the FBI. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Dallas Man, Who Admitted Aiming A Laser Pointer at an Aircraft,is Sentenced to 30 Months in Federal PrisonRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison, following his guilty plea in February 2013 to an indictment charging one count of aiming a laser pointer at an aircraft. Santodomingo was arrested on January 28, 2013, after a criminal complaint was filed for the offense, and he has been in custody since that time. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“This young man’s conduct was extraordinarily dangerous and could have had disastrous consequences, which was reflected in the Court’s sentence today,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department, the FBI and the Transportation Security Administration’s Federal Air Marshal Service for their work in this investigation.”
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, eventually admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
Assistant U.S. Attorneys Katherine Miller and J. Mark Penley prosecuted.
More Defendants Sentenced Today in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that they operated in Wichita Falls, were sentenced today by U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Kimberly Williams, 26, sentenced to 72 months in federal prison
- Sergio Arias, 27, sentenced to 170 months in federal prison
- Diana Gail Hassell, 45, sentenced to 78 months in federal prison
- Patrick Herrian, 37, sentenced to 110 months in federal prison
Williams and Arias each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Hassell and Herrian each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture methamphetamine.
Williams admitted that on multiple occasions between October 26, 2011, and August 23, 2012, she delivered quantities of methamphetamine, and picked up payments for methamphetamine, from customers in the Wichita Falls area. She also admits that on August 7, 2012, co-conspirator Dock Buckaloo delivered a quantity of methamphetamine to co-defendant’s Steve Ysasaga at Ysasaga’s house in Arlington, Texas. After Buckaloo delivered the methamphetamine, it was concealed in a Power Pack and placed in the rear of Ysasaga’s white Chevrolet pick-up truck. Later in the day, Ysasaga, accompanied by Williams in the front seat and another female in the back seat, drove the truck to Wichita Falls. The vehicle was stopped in Wichita Falls for a traffic violation and Texas Department of Public Safety (DPS) Troopers arrested Ysasaga on an outstanding warrant. A drug detection canine alerted on the truck and a search resulted in DPS seizing approximately 529 grams of methamphetamine that was concealed in the Power Pack.
While Troopers were searching the truck, Williams informed them that she had methamphetamine concealed in her body cavity. A later analysis revealed that she had 4.73 grams of methamphetamine concealed in her body. Troopers also found pages of notes in Williams’ purse that identified 13 individuals and amounts of money they owed Ysasaga for methamphetamine.
On August 13, 2012, in a transaction brokered by Buckaloo, Arias, a supplier, agreed to deliver two pounds of methamphetamine to Ysasaga, at his Arlington residence, for $23,000. That afternoon, Buckaloo picked up Arias who intended to accompany Buckaloo in delivering the methamphetamine to Ysasaga. However, at approximately 3:45 p.m., DPS agents initiated a traffic stop in Arlington of Buckaloo’s car. A drug detection canine alerted and approximately 894 grams of methamphetamine was found in a container that Arias had placed in the trunk of the car.
Hassell admitted that on at least 10 occasions in 2011, she allowed co-conspirators Randall Wayne Ezzell and James Allen Stafford to use her residence in Wichita Falls to manufacture methamphetamine, and in return, she received a quantity of the methamphetamine generated from the cooks. In fact, on December 5, 2011, when a state search warrant was executed at her residence, she, Ezzell and Stafford were present when law enforcement discovered a clandestine methamphetamine laboratory in operation.
Herrian admitted that on multiple occasions between July 2011 and June 19, 2012, he received quantities of methamphetamine from Ysasaga and distributed it to co-conspirators Tommy Vasquez, Corey Peeler and others in the Wichita Falls area. Herrian also admitted that on three occasions, he sold methamphetamine to an undercover law enforcement officer, and on another occasion, he sold not only methamphetamine, but three firearms and ammunition to an undercover officer.
To date, 29 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 27 defendants have been sentenced. The case against one defendant has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Former Youth Minister Pleads Guilty in Federal Court to Child Pornography OffenseRead the Press Release
Defendant Worked at Churches in Levelland and Lubbock
LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, appeared in federal court in Lubbock, Texas, this morning, before U.S. District Judge Sam R. Cummings, and pleaded guilty to a one-count indictment charging attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The statutory maximum penalty for this offense is 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. However, according to plea documents filed in the case, Fortner and the government will make a non-binding recommendation to the Court that a 48-month sentence is appropriate. Today, Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Fortner will remain on bond pending sentencing.
Most recently, Fortner was a youth minister at a church in Levelland, Texas; he has also worked in the graphics department of a church in Lubbock.
According to documents filed in the case, on May 7, 2013, Fortner responded to an online personal advertisement that had been posted by an undercover officer with the Lubbock Police Department (LPD). Posing as a 15-year-old girl, the undercover officer responded to Fortner’s initial contact. During ensuing emails and text conversations between Fortner and the undercover officer, Fortner repeatedly affirmed that he understood the girl’s age.
During these text conversations, Fortner discussed meeting the minor girl and described the kind of sexual activity he wished to engage in with her. He asked her to send him “kinky pics” and “dirty pics,” and on May 7, 2013, he sent her a sexually explicit photograph of himself. The following day, Fortner was interviewed by LPD officers and he admitted communicating with a 15-year-old girl and sending her a photograph of himself, which he acknowledged was obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Final Defendant Sentenced in Public Corruption Case at Sheppard Air Force BaseRead the Press Release
WICHITA FALLS, Texas — A former engineer at Sheppard Air Force Base (SAFB), Larry Thomas Ballard, 60, of Wichita Falls, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $6,095 in restitution, following his guilty plea in October 2012 to one count of conspiracy to defraud the United States and conspiracy to unlawfully disclose sensitive source selection information. Judge O’Connor ordered that Ballard surrender to the Bureau of Prisons on August 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ballard is the fourth and final defendant to be sentenced in connection with a public corruption case at SAFB that involved the unlawful disclosure of source selection information and payment of bribes in connection with government contracts at the base.
The Lead Supervisory Engineer at SAFB and the most culpable in the scheme, John Torrance Gilmore, III, 53, also of Wichita Falls, was sentenced in May 2013 to 60 months in federal prison. He pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully disclose sensitive source information.
Two government contractors, John Carmon Freeman and Miguel Angel Hughes, were sentenced to 18 months and eight months, respectively. Each pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully obtain sensitive source information.
In addition, Judge O’Connor ordered that Gilmore and Hughes pay $6,095 restitution to the Department of Defense.
Gilmore, as the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, supervised several engineers, including Ballard. The Squadron’s mission was to maintain SAFB facilities and provide civil engineering support to the base.
Hughes, 63, of Fort Worth, Texas, owned Hughes and Guzman Construction Services, LLC, (Hughes Building Services), a roofing contractor and subcontractor with offices in Fort Worth, Dallas and Balch Springs, Texas. Freeman, 50, of Vernon, Texas, owned Freeman Construction, a road-building and paving contractor, with offices in Wichita Falls and Vernon.
The four defendants conspired together to impair and obstruct the government’s ability to have a competitive and unbiased selection of contractors — depriving the government of its right to exclusive use and control over sensitive source selection information, to include contractor bid information, government pricing and cost estimates and contractor proposal information. The defendants conspired together to knowingly disclose and obtain sensitive source selection information related to specifications on several contracts, including those for roof and pothole repairs and the liquid oxygen maintenance facility.
According to plea documents filed in the case, the defendants conspired together and with others during the period from at least the mid 1990's through 2009, to defraud the 82nd Contracting Squadron and the Department of the Air Force by depriving the U.S. of the lawful right to exclusive use and control over sensitive source selection information, such as contractor bid information, government pricing and cost estimates, and contractor proposal information, on several contracts. They also conspired together and with others to disclose or obtain sensitive source selection information on several contracts.
Gilmore and Ballard provided sensitive source information to their friends, Freeman and Hughes, to give them a competitive advantage or financial benefit in connection with several government contracts. Over several years, Freeman and Hughes gave Gilmore and Ballard personal gifts and benefits in return for their preferential treatment in connection with several government contracts.
In the mid to late 1990's, Freeman paid large sums of cash to Gilmore. Gilmore supervised several government inspectors who inspected Freeman’s work and Freeman felt it would be good to keep Gilmore happy so that he would continue to treat Freeman favorably. On at least one occasion, Freeman gave $10,000 in cash to Gilmore, expecting Gilmore to accept and approve Freeman’s work on future government contracts, even if there were discrepancies and deficiencies in Freeman Construction’s contract work. In addition, to curry favor with Gilmore, Hughes paid Gilmore’s travel expenses and took him to several gun shows.
When Gilmore became aware of this criminal investigation, he told Freeman to lie about his cash payments to him. After initially lying about them to investigators, Freeman later admitted that he had paid cash bribes to Gilmore.
The investigation was conducted by the Defense Criminal Investigative Service and the Air Force Office of Special Investigations.
Abilene, Texas, Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — John Brandon Rice, 25, most recently a resident of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 37 months in federal prison, following his guilty plea in April 2013 to one count of failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Rice was sentenced in California for the felony sex offense of unlawful sexual intercourse and was sentenced to a three-year term of probation with a condition that he must serve 180 days in jail. In May 2010, the probated sentence was terminated and a state prison term of 32 months was imposed. As a result of this conviction, Rice was required under California law to register as a sex offender for life.
In June 2012, Rice began residing in Abilene and working as a landscaper and for a roofing business. Rice admits that he knowingly failed to register, and update his registration as a sex offender because he had an outstanding parole warrant form California and he did not want them to know where he was. Under the Sex Offender Registration and Notification Act (SORNA), persons who are required to register as sex offenders are required to register within three days of moving from one state to another.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Rowlett, Texas, Man Sentenced to 250 Months in Federal Prison for Attempted Enticement of ChildrenRead the Press Release
DALLAS — Joshua David Watson, 37, of Rowlett, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 250 months in federal prison, following his guilty plea in November 2012 to an indictment charging two counts of attempted enticement of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, from approximately July 25 to August 18, 2012, Watson used the Internet and a cell phone to persuade, induce and entice a purported parent of two minor children to allow him to engage in sexual activity with the children. Not only did Watson engage in a number of sexually explicit conversations with the purported parent of the children about engaging in sexual activity with them, but he also made plans to meet the purported parent and children and engage in sexual activity with the children. In fact, he arrived at a pre-arranged location on August 18, 2012, where he was arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Mesquite Man Sentenced to 188 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Jeremy Blackburn, 33, was sentenced today by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Blackburn has been in custody since he entered that guilty plea in March 2013.
According to documents filed in the case, an undercover operation to identify persons who participate in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing networks resulted in the identification of Blackburn. A search warrant was executed at his residence in Mesquite, Texas, in July 2012, and computer equipment was seized. There were more than 600 images and videos of child pornography available to share on his file-sharing program.
Blackburn admitted than in February 2012, he used the Internet and file-sharing software to share and transmit image and video files depicting minors engaged in sexually explicit conduct. He admitted that he preferred younger girls but not babies, and he admitted to downloading child pornography just 30 minutes prior to the execution of the search warrant. He also admitted that he sought, received and possessed images and videos that included bondage and other sadistic acts involving 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 Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Dallas Residents Arrested in Law Enforcement OperationRead the Press Release
Large Amounts of Cocaine and Methamphetamine Seized, Along With Luxury Vehicles and More Than $350,000 in Cash
DALLAS — Seven Dallas residents were arrested yesterday in an Organized Crime Drug Enforcement Task Force (OCDETF) operation conducted by special agents with the FBI and officers with the Dallas Police Department on several federal drug-trafficking complaints. During this phase of the operation, three pounds of methamphetamine, more than $30,000 in United States currency and several firearms were seized.
The first phase of this OCDETF operation was executed on July 2, 2013, when law enforcement seized approximately 14 kilograms of cocaine, one and one-half pounds of methamphetamine (ICE), four luxury vehicles and more than $315,000 in United States currency. Four defendants from Dallas were arrested that day and charged by federal complaint with conspiring to possess with intent to distribute five kilograms or more of cocaine.
Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation today.
The following seven defendants were arrested yesterday and will appear this afternoon before U.S. Magistrate Judge David L. Horan:
- Reynaldo Macedo-Flores, 35
- Calletano Flores-Hernandez, a/k/a Rolando Nunez-Hernandez, 47
- Austreberta Macedo-Flores, 53
- Rigoberto Aguirre, 35
- Jose Eduardo Madrigal-Moreno, 20
- Diego Hernandez-Valencia, 22
- Rupertro Renteria-Ramos, 27
The following four defendants were arrested on July 2, 2013, and have made their initial appearances in federal court. All were ordered detained.
- Victor Guillen, 21
- Ezekiel Maldonado, 34
- Roger Molina, 25
- Juan Perez Bernal, 36
The case involves undercover purchases, wiretaps and search warrants. In total, 14 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash have been seized in the operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The statutory maximum penalties for the charged offenses range from 40 years to life in federal prison and millions of dollars in fines.
The FBI and the Dallas Police Department are leading this OCDETF investigation. Assistant U.S. Attorney Jason Schall is in charge of the prosecution.
Dallas County Man Arrested and Charged with Distribution of Child PornographyRead the Press Release
DALLAS --- Quincy Lamar Poole, 24, of Lancaster, Texas, has been arrested on a federal criminal complaint charging distribution of child pornography. Poole made his initial appearance this afternoon in federal court in Dallas and was detained pending a hearing set for Tuesday, July 23, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the matter, law enforcement executed a federal search warrant at Poole’s residence in Lancaster on July 16, 2013; Poole and others were home at the time. Pursuant to the warrant, law enforcement seized computers and other computer media. Poole advised that he had traded child pornography with others he met on Internet websites. He also advised that during his 10-year obsession with child pornography, he had downloaded thousands of images of child pornography.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.
Colleyville, Texas, Father and Son, Who Were Convicted on Tax and Tax-Related Charges, Receive Lengthy Federal Prison Sentences and Are Ordered to Pay Large FinesRead the Press Release
Larry Lake Was Part-Owner of Grapevine Drug Mart - Son Travis Lake Managed the Business
FORT WORTH, Texas — Larry Lake and his son, Travis Lake, were sentenced today in U.S. District Court in Fort Worth, Texas, by U.S. District Judge John McBryde, to 168 months and 13 months in federal prison, respectively, following their convictions earlier this year on tax and tax-related charges. In addition, Judge McBryde ordered that Larry Lake pay a $550,000 fine as well as any taxes, interest and penalties owed, which will equal approximately $25 million. Judge McBryde ordered that Travis Lake pay a $30,000 fine; he has already paid $26,816 in restitution prior to sentencing. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larry Lake was convicted at trial in February 2013 on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. He was remanded into custody following the conviction. Travis Lake pleaded guilty in February 2013 to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. He was remanded into custody after today’s sentencing hearing.
According to the public court record, Larry Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
According to the factual resume filed in his case, Travis Lake manages Grapevine Drug Mart, and according to an order setting conditions for his release, Travis Lake is also a resident of Colleyville.
According to evidence presented at Larry Lake’s trial, the day before he filed for bankruptcy in November 2004, Larry Lake knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Larry Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Larry Lake utilized a “shell” company to assist in concealing the assets.
Additionally, according to evidence presented at trial, Larry Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from his businesses, VIP Finance and Grapevine Drug Mart.
Further evidence presented by the government at trial showed that from August 2006 through November 2009, Larry Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Larry Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.
Larry Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Larry Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.
According to the factual resume filed in Travis Lake’s case, from 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Travis Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled. The factual resume further states that Travis Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. He was sentenced in May 2013 to 18 months in federal prison and ordered to pay $8,277 in restitution as well as a $30,000 fine.
Another pharmacist, Joseph Moss, admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, he had an additional tax due and owing of $58,554 for that year. He was sentenced last month to 12 months and one day in federal prison and ordered to pay $51,150 in restitution and a $3,000 fine.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins were in charge of the prosecutions.
Federal Jury Convicts Former Denton County Insurance Agent in FraudRead the Press Release
Defendant Used Elderly as Straw Buyers
DALLAS — Following a three-day trial before U.S. District Judge Reed C. O’Connor, a federal jury in Dallas deliberated just one hour before convicting Vincent Bazemore, 39, formerly of Aubrey, Texas, on all counts of an indictment charging four counts of mail fraud related to a scheme he ran to defraud various life insurance companies. Today’s announcement was made by U.S. Attorney Sarah R. Saldana of the Northern District of Texas.
Bazemore is currently in federal custody, serving a five-year sentence on a federal securities fraud conviction in the district in 2009. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution on each of the four counts of conviction. In addition, there is a penalty enhancement as Bazemore was found to have committed these offenses while he was pre-trial release on the securities fraud case, and under this enhancement, Bazemore is subject to an additional 10 years imprisonment to run consecutive to any sentence that he may receive on any of the mail fraud counts. Sentencing is set for December 12, 2013, before Judge O’Connor.
The government presented evidence at trial that between October 2007 and April 2009, Bazemore, an insurance agent, engaged in a scheme to obtain substantial commissions by inducing life insurance companies to issue policies on applications of individuals who appeared to be wealthy and seeking insurance for estate planning purposes, when in fact, the applicants were of modest financial means, and the policies were intended to be transferred to investors.
Further evidence presented in court showed that Bazemore solicited elderly individuals to apply for policies by representing that the life insurance was an investment with no financial cost or exposure and would result in a sizable monetary benefit to the individual’s heirs. Bazemore prepared the applications and related documents, on behalf of the applicants that contained forged signatures and falsified financial information to induce the life insurance companies into issuing the policies. Bazemore also submitted the false and fraudulent applications and related documents to financial institutions to obtain premium financing on the policies. In fact, the applicants were of modest financial means and that the policies were obtained for the purpose of being transferred to investors. Bazemore had agreements with insurance companies and managing agents which provided that he would receive, for each policy issued on an application he submitted, a commission of 95 to 105 percent of the first year’s premium paid on the policy.
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 http://www.stopfraud.gov/.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorneys Christopher Stokes and P.J. Meitl.
Man Pleads Guilty to Mail Fraud in Case Related to Conviction of Former University Medical Center Vice President Greg BruceRead the Press Release
LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, appeared this morning in federal court before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting. Mata, who will remain on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentence investigative report with a sentencing date to be set upon the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
From November 2010 through September 2011, Mata submitted 15 false and fraudulent invoices to UMC for ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the invoices by mailing checks to addresses listed. During the scheme, according to plea papers filed in Mata’s case, Mata and his friend, Robert Gregory Bruce, the former Vice President of University Medical Center, caused UMC to pay approximately $54,750 to ATAM Technology Solutions for goods and services that were not provided. ATAM Technology Solutions, according to the factual resume filed in the case, was in fact, an alter ego of Mata. Mata used these funds for personal living expenses, educational expenses and travel and entertainment expenses.
Bruce pleaded guilty last month to a similar offense. In documents filed in Bruce’s case, he admitted that from June 2007 to December 12, 2011, he conspired with Mata to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, UMC paid approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. According to plea papers filed, Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
The cases are being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecutions.
Lubbock Man Sentenced to 210 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Njeazeh Roderigue Ambeabet, 24, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 210 months in federal prison, to be followed by 20 years of supervised release, following his guilty plea in April 2013 to one count of production of child pornography. Ambeabet has been in custody since his arrest in February 2013. 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, last year, Ambeabet met an 11-year-old girl online and engaged in a texting relationship with her, frequently asking her to engage in sexual relations with him. He admitted that he was well aware of her age, and that he received sexually explicit images of her that were taken with her cell phone at his request.
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.”
Former Big Spring, Texas, Man Sentenced to 15 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Christopher Aubrey Harlan, 27, formerly of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 15 years in federal prison, to be followed by eight years of supervised release, following his guilty plea in March 2013 to one count of receiving child pornography. Judge Cummings ordered that Harlan surrender to the Bureau of Prisons on August 16, 2013. 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, Harlan used his computer, as well as for a brief time, his roommate’s computer, to access child pornography on various websites. He used those computers, as well as his cellphone, to send and receive numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Brothers-in-Law, Who Used Craigslist to Sell Tickets to Sporting Events, Receive Lengthy Federal Prison Sentences on Wire Fraud ConvictionsRead the Press Release
FORT WORTH, Texas — Two men, who pleaded guilty earlier this year to wire fraud charges stemming from their use of Craigslist to obtain victims’ credit card information, have been sentenced by U.S. District Judge John McBryde. James Lee Williams, II, 40, of Dallas, was sentenced on April 26, 2013, to 120 months in federal prison and ordered to pay more than $77,000 in restitution. His brother-in law and co-defendant Anthony Troy Johnson, 44, of Karnack, Texas, was sentenced on July 5, 2013, to 48 months in federal prison and ordered to pay more than $66,000 in restitution. Williams has been in custody since his arrest; Johnson was ordered to surrender to the Bureau of Prisons by July 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Williams and Johnson admitted running a scheme in which they advertised on Craigslist tickets for sale to events such as football games or Texas Rangers baseball games. When a customer called to buy tickets, they obtained the credit card information and informed the customer that their tickets would be mailed or could be picked up at the event. Instead of purchasing tickets to the designated event, however, Williams and Johnson used the victims’ credit card information to purchase airline tickets, tickets to other sporting events, concerts and attractions such as Six Flags Over Texas amusement park, and then they sold the fraudulently obtained tickets to other consumers.
Williams was arrested by officers with the Arlington Police Department in August 2012 after a state search warrant was executed in his motel room in Arlington. Among some of the items seized were documents containing names and numbers consistent with personal identifying information and credit card numbers, written ledgers for various sporting/entertainment events, cell phones and tickets. Some of the paperwork had been stuffed into the toilet, clogging it and causing it to overflow, and a laptop computer had been thrown out of the window.
The investigation was conducted by the Arlington Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chris Wolfe prosecuted.
Southlake, Texas, Man Sentenced to 24 Months in Federal Prison for Role in Bank Fraud ConspiracyRead the Press Release
Defendant Conspired With Former Vice-President of Pavillion Bank
DALLAS — Jason Dvorin, 45, of Southlake, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $111,639 in restitution, following his conviction at trial in February 2013 on one count of conspiracy to commit bank fraud. Judge O’Connor ordered that Dvorin surrender to the Bureau of Prisons on September 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dvorin entered into an agreement with Chris Derrington, the vice president of Pavillion Bank, located on West Campbell Road in Richardson, Texas, to deposit worthless checks in return for immediate access to the bank’s funds. Dvorin would bring in worthless credit card checks, or checks drawn on a closed account, and present them to Derrington for deposit. Knowing the checks were worthless, Derrington gave Dvorin immediate access to the bank’s funds. As soon as one worthless check was returned, Dvorin would deposit another worthless check. This pattern continued over the course of five years and resulted in 224 fraudulent deposits by Dvorin and the Derrington. By the time the scheme was uncovered, Pavillion bank sustained a loss in excess of $300,000.
Derrington, 61, of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. He was sentenced in March 2013 to a five-year term of probation and ordered to pay more than $778,000 in restitution.
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 http://www.stopfraud.gov/.
The cases were investigated by the FBI and the FDIC Office of Inspector General. Assistant U.S. Attorneys Mindy Sauter and Michael Elliott prosecuted.
McKinney, Texas, Man Sentenced to 10 Years in Federal Prison for Trying to Meet A 14-Year-Old Girl at A Local Mall for SexRead the Press Release
DALLAS — Rodney Allen Thompson, 44, of McKinney, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 10 years in federal prison, following his guilty plea in April 2013 to one count of transferring obscene material to a minor. He has been in custody since his arrest in December 2012. 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, Thompson admits that in December 2012, he communicated with “Jane Doe,” an individual he believed to be a 14-year-old girl, whom he friended via Yahoo! Messenger. Jane Doe was in reality an officer with the Garland Police Department, acting in an undercover capacity. Thompson admitted that he communicated with Jane Doe in a sexually explicit manner, indicating that the wanted to engage in sexual activity with her. Using his computer and cell phone, Thompson ultimately persuaded, or attempted to persuade, Jane Doe to meet him at a mall in Garland to engage in illegal sexual activity with him. He also admitted that he sent Jane Doe, via webcam, an obscene video of himself engaging in sexually explicit conduct. On December 13, 2012, Thompson drove to meet Jane Doe at the mall, as they had arranged, and was arrested.
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. Assistant U.S. Attorney Camille Sparks prosecuted.
Federal Grand Jury Indicts Brownwood, Texas, Man on Several Child Pornography Felony OffensesRead the Press Release
LUBBOCK, Texas — A federal grand jury has returned a seven-count indictment charging Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, with various felony child pornography offenses. Specifically, the indictment charges Villarreal with one count of production of child pornography, four counts of receipt of child pornography and two counts of possession of child pornography. Villarreal has been in federal custody since his arrest on June 25, 2013, on related charges outlined in a criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that in March 2013, Villarreal induced a minor male to engage in sexually explicit conduct while he recorded the conduct. The indictment further alleges that on four occasions, from October 2012 through May 2013, Villarreal received visual depictions of minors engaging in sexually explicit conduct. The indictment also charges Villarreal with possessing images of child pornography on two occasions from April 2010 to June 25, 2013.
On June 25, 2013, agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison; each of the receipt counts carries a maximum statutory penalty of not less than five or more than 20 years in federal prison and each of the possession counts carries a maximum statutory penalty of 20 years in federal prison. In addition, upon conviction, each count 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 ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Two Executives Plead Guilty to Wire Fraud Conspiracy Charges for Ponzi Scheme Involving Medical Insurance InvestmentsRead the Press Release
DALLAS — Duncan MacDonald III, 50, of Dallas, appeared yesterday in federal court and pleaded guilty to a felony Information charging conspiracy to commit wire fraud. In a related case, last week, Gloria Ann Solomon, 71, also of Dallas, pleaded guilty to an Information charging the same offense. Each defendant faces a maximum statutory penalty of five years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant or loss to the victim(s), and restitution. Both MacDonald and Solomon will remain on bond pending sentencing, which is set for October 3, 2013, before U.S. District Judge Jane J. Boyle. 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, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.
GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.
In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.
MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.
MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.
MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.
When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.
The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.
In a parallel action, both defendants are also charged by the U.S. Securities and Exchange Commission (SEC) with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 http://www.stopfraud.gov/.
The case is being investigated by the FBI. The U.S. Attorney’s Office also appreciates the assistance of the SEC’s Fort Worth Regional Office. Special Assistant U.S. Attorney Ruben Martinez, Jr. is in charge of the prosecution.
San Angelo Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, appeared in federal court in Lubbock on Friday, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. Suter, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement is made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in San Angelo, Suter owned a computer which he kept at his residence. That computer was connected to the Internet. In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Trustee Pleads Guilty in Federal Court to Tax EvasionRead the Press Release
Agrees to Pay More Than $200,000 in Restitution
LUBBOCK, Texas — Randy Lynn White appeared in federal court in Lubbock, Texas, today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an Information charging one count of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the terms of the plea agreement filed in the case, White agrees to pay the amount of the tax loss, $211,165, in restitution. He will remain on personal recognizance bond; a sentencing date was not set.
According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the U.S. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White, according to the factual resume, was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Lubbock Man Admits Committing PerjuryRead the Press Release
LUBBOCK, Texas — Ernesto Garcia, 59, of Lubbock, Texas, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of perjury, stemming from his sworn testimony in a detention hearing held in May 2012 in federal court in Lubbock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Judge Cummings ordered a presentencing investigation report with a sentencing date to be set after the completion of that report. Garcia has been in federal custody since his arrest in late May 2012.
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 is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Rowlett, Texas, Man Sentenced to One Year and One Day in Federal Prison for Selling Firearms Without A LicenseRead the Press Release
Defendant Sold Used Firearms for Resale from His Print Screen Shop in Garland, Texas
DALLAS — Jackie Don Burke, 68, of Rowlett, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to one year and one day in federal prison, following his conviction at trial in February 2013 for engaging in the business of firearms without a license. Burke was ordered to surrender to the Bureau of Prisons on July 30, 2013. 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 Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, not particularly well kept, he sold at least 135 firearms in a 14-month period.
In one instance, Burke sold a pistol to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns and maintained that he was simply selling firearms from his personal collection, which is lawful. Burke testified at trial and told the jury that he was too old to go to jail.
The case was investigated by ATF; Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle prosecuted.