Northern District of Texas
Press releases recorded for this federal judicial district.
Owner of Avalanche Car Washes in Dallas-Fort Worth Area Is Sentenced to Six Months in Federal Prison and Six Months Home Confinement for Structuring Currency TransactionsRead the Press Release
DALLAS — Mohamdad Jabal was sentenced yesterday afternoon by U.S. District Judge Ed Kinkeade to six months in federal prison and six months home confinement, following his guilty plea in March 2013 to one count of structuring. According to the plea agreement filed in the case, Jabal has made full restitution, in the amount of $403,736, to the victims in the case prior to entering into the plea agreement with the government. 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, Jabal owns two car washes in the Dallas-Fort Worth area under the name of Avalanche Wash, Inc., and currently has a third one under construction. He maintains two bank accounts related to his car wash business. Between March 15 and April 30, 2012, Jabal made 19 cash deposits for a total of $182,050 into his Avalanche Wash Inc. Interim Construction Account at First National Bank of Burleson. Each of these deposits ranged from $9,000 to $9,800 and many of the deposits were on consecutive days. Jabal admitted that he was aware of the $10,000 reporting requirement and purposefully kept his cash deposits below the requirement so he wouldn’t “raise a red flag.”
The investigation was conducted by Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian Poe.
North Texans Sentenced for Roles in A Drug Trafficking Organization That Mailed Large Quantities of Marijuana from DFW to St. CroixRead the Press Release
FORT WORTH, Texas — Three North Texans, who were convicted for their role in a drug trafficking operation that mailed large quantities of marijuana from the Dallas/Fort Worth (DFW) area to St. Croix, U.S. Virgin Islands, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This week, April Michelle Greene, 37, of Fort Worth, was sentenced to 78 months in federal prison following her guilty plea in November 2012 to one count of conspiracy to possess with intent to distribute a controlled substance.
Earlier this month, Neil Nick Rene, 37, of Duncanville, was sentenced to 151 months in federal prison following his guilty plea in October 2012 to one count of conspiracy to possess with intent to distribute a controlled substance and one count of conspiracy to launder monetary instruments. Defendant Carl Gayheart Schou, 48, pleaded guilty in November to the same offenses and is scheduled to be sentenced in October 2013.
Kareem Ambrose, 33, was sentenced on May 1, 2013, to 12 months in federal prison and a $1,000 fine following his guilty plea the previous month to one count of possession of a controlled substance.
According to documents filed in the case, over the course of the conspiracy from December 2009 until March 2012, Greene, Rene and Schou were involved in the sale and shipment of marijuana from the DFW area to buyers located in St Croix, in the U.S. Virgin Islands. In fact, Ambrose was stopped by law enforcement in St. Croix, in a vehicle that contained a package with 2.2 pounds of marijuana that had been mailed to him from North Texas.
Greene, Rene and Schou would mail parcels of marijuana, each weighing approximately two – five kilograms, from multiple post offices in DFW to buyers in St. Croix. Fictitious return addresses were used on the drug parcels to avoid detection. In return for the drug parcels, the buyers would mail the defendants parcels containing proceeds of the sales of the trafficked marijuana, most commonly in the form of U.S. Postal money orders. At times, in order to disguise the source of the proceeds of the marijuana trafficking, Rene and Schou would use false information in the return addresses and would mail the proceeds to third parties. Schou or Greene would then deposit the money orders into their personal bank accounts, or cash them at their member bank, a check cashing facility or a U.S. Postal facility.
This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, U.S. Customs and Border Protection, Internal Revenue Service - Criminal Investigation and the U.S. Virgin Islands Police Department. Assistant U.S. Attorneys Joshua T. Burgess and John de la Garza are prosecuting.
Former Owner of Local Durable Medical Equipment Company Is Sentenced to 35 Months in Federal Prison for Defrauding Medicare and MedicaidRead the Press Release
Kingsway Medical Systems, Inc. was Located in Desoto and Richardson, Texas
DALLAS — Philip Odoemena, 60, the former owner/operator of Kingsway Medical Systems, Inc., (Kingsway) was sentenced today by U.S. District Judge Barbara M. G. Lynn to 35 months in federal prison and ordered to pay $483,995 in restitution, following his guilty plea in September 2012 to one count of health care fraud. Odoemena has been in custody since his arrest in early May 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, from February 2005 to May 2012, Odoemena owned and operated Kingsway, a durable medical equipment (DME) company that was first located in Desoto, Texas, and then in Richardson, Texas. He was approved by both Medicare and Texas Medicaid to provide durable medical equipment, including wheelchairs and accessories, adult incontinence supplies and enteral nutrition supplies (tube feeding) to Medicare beneficiaries and Medicaid clients.
Odoemena admitted that from May 2007 through March 2012, he ran a scheme to defraud Medicare and Medicaid by submitting fraudulent claims that falsely represented that legitimate and qualifying supplies were provided and that falsely represented the medical necessity of the supplies. In one instance, for example, he billed Medicaid $870 for tube feeding supplies for a Medicaid client, when, in fact, he merely provided that client an oral nutritional supplement. Medicaid paid Kingsway $826 for that claim — funds that Odoemena used for his own personal benefit.
The case was investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. To learn more health care fraud, please visit: http://stopmedicarefraud.gov.
The case was prosecuted by Special Assistant U.S. Attorney Brian W. Portugal and Assistant U.S. Attorney Katherine E. Pfeifle.
Dallas Man Who Trafficked in Counterfeit Pharmaceutical Drugs Is Sentenced to 37 Months in Federal Prison and Ordered to Pay $633,000 in RestitutionRead the Press Release
DALLAS — Charles Anthony Jones, 48, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 37 months in federal prison and ordered to pay $633,019 in restitution to Pfizer, Bayer and Eli Lilly for trafficking in counterfeit pharmaceutical drugs. Specifically, Jones pleaded guilty in November 2012 to one count of aiding and abetting the trafficking of counterfeit goods. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed in the case, on March 2, 2012, an undercover police officer texted Jones and asked Jones if he could meet him the following week in the neighborhood of a hotel in Irving, Texas. (Jones had previously sold the undercover officer pharmaceutical drugs to treat erectile dysfunction.) On March 6, 2012, the officer texted Jones and arranged a meeting to purchase a 30-count bottle of “Cialis” the following day for $150. The next day, Jones delivered a bottle marked “Cialis” that contained 30 20mg tablets to the undercover officer in exchange for $150. The bottle was marked with what appeared to be the genuine Cialis trademark and the bottle was clearly marked “PRESCRIPTION ONLY MEDICINE.”
Jones has been in custody since his arrest on August 22, 2012, on an indictment alleging that he and other unnamed individuals imported pharmaceutical drug products and packaging that bore the trademarks of certain prescription pharmaceuticals used to treat erectile dysfunction without the drug manufacturer’s authorization, and then resold the drugs to the public using the Internet to facilitate the sales. Jones was never licensed by the FDA or the Texas Health and Human Services Commission to distribute pharmaceutical drugs.
The investigation was conducted by the Food and Drug Administration (FDA) Office of Criminal Investigations (FDA-OCI) and the Irving Police Department. Assistant U.S. Attorney Jason Schall was in charge of the prosecution.
Dallas Man Sentenced to 60 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Robert A. Steffens, 60, of Dallas, was sentenced today by U.S. District Judge Terry R. Means to 60 months in federal prison, following his guilty plea in November 2012 to one count of possession of child pornography. Judge Means ordered that Steffens surrender to the Bureau of Prisons on July 22, 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 summer, a laptop computer containing child pornography was turned in to the Fort Worth Police Department. It was determined that the laptop belonged to Steffens. Pursuant to a search warrant, the contents of the laptop were searched and child pornography was found.
In late August 2012, after being contacted by law enforcement, Steffens met with an officer at the Fort Worth Police Department and brought another laptop computer and external drive with him to the meeting. After obtaining a state search warrant for both, a forensic examination revealed both items contained child pornography. Steffens admitted that he had sought out child pornography on the Internet using search terms. He also admitted that he had deleted the images on the laptop and the external drive before bringing them in to the officer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Aisha Saleem prosecuted.
Another Pharmacist at Grapevine Drug Mart Is Sentenced on Income Tax Evasion ConvictionRead the Press Release
FORT WORTH, Texas — Joseph Moss has been sentenced to one year and one day in federal prison and ordered to pay a $3000 fine and $51,150 in restitution following his guilty plea in January 2013 to one count of income tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Moss, according to the factual resume filed in the case, is a licensed pharmacist who worked as a pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas. 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 $20,000 to $100,000. Each of the quarterly payments were made payable to Moss enterprises, a dba Moss established, and deposited into Moss Enterprises’ business bank account. The weekly payments were much smaller in amount and were made payable to Moss via check. From October 2006 through December 2008, Moss cashed these weekly checks made payable to himself and thus not reported on his income tax return.
The factual resume further states that in October 2009, Moss timely filed his federal income tax return but attempted to evade the amount of federal income tax he owed by failing to report approximately $159,450 that he had received from Grapevine Drug Mart for the 2008 tax year. As a result, Moss had an additional tax due and owing of $58,554 for the 2008 tax year.
Joseph Moss’s father, Norvell Moss, was sentenced last month to 18 months in federal prison for the same offense. He was ordered to pay a $30,000 fine and an additional $8,277 in restitution to go along with the more than $94,000 he had paid prior to sentencing.
According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month 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. Both Larry Lake and Travis Lake are scheduled to be sentenced in mid-July 2013.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
U.S. Attorney Sarah R. Saldana Welcomes Trafficking in Persons (TIP) Report HeroesRead the Press Release
TIP Report Heroes Visiting From Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines
ARLINGTON, Texas — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed the 2013 Trafficking in Persons (TIP) Report Heroes at an executive session this morning of the North Texas Anti-Trafficking Team (NTATT) in Arlington, Texas. Each year, the Department of State honors individuals from around the world who have devoted their lives to fight human trafficking. The 2013 TIP Report Heroes were announced last week by Secretary of State John Kerry when he released the 2013 TIP Report, and Dallas is one of only three cities in the country honored with their visit.
U.S. Attorney Saldaña said, “I am honored and humbled to welcome this impressive group of heroes today – heroes who have made an extraordinary difference in the global fight against modern-day slavery. The fight against human trafficking and modern-day slavery, including the rights and interests of victims of these heinous crimes, is a Department of Justice priority.”
The TIP Report is the U.S. Government’s principal diplomatic tool to engage foreign governments on human trafficking. According to the Department of State, it is also the world’s most comprehensive resource of governmental anti-human trafficking efforts and reflects the U.S. Government’s commitment to global leadership on this key human rights and law enforcement issue. The U.S. Government uses the TIP Report to engage foreign governments in dialogues to advance anti-trafficking reforms and to combat trafficking and to target resources on prevention, protection and prosecution programs.
At today’s meeting, U.S. Attorney Saldaña introduced these Heroes and noted their tireless efforts – in spite of resistance, opposition and threats to their lives – to protect victims, punish offenders and raise awareness of ongoing criminal practices in their countries and abroad. The Heroes are from Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines, and each shared his personal story at the meeting.
The U.S. Attorney’s Office for the Northern District of Texas launched the NTATT in 2006 to combat human trafficking in the Dallas – Fort Worth area and surrounding counties. NTATT’s goal is to work with law enforcement and private agencies to discover and assist victims of human trafficking while identifying and prosecuting offenders. In addition to the U.S. Attorney’s Office, agencies represented in today’s roundtable discussion included: Arlington Independent School District Police Department, Arlington Police Department, Catholic Charities of Dallas, Catholic Charities of Fort Worth, Child Protective Services, Cooks Children’s Hospital, Dallas County Juvenile Department, Dallas Police Department, Dallas Independent School District Police Department, FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fort Worth Police Department, Genesis Women’s Shelter, Mosaic Family Services, Safe City Commission, Tarrant County Criminal District Attorney’s Office, Texas Alcoholic Beverage Commission, the U.S. Equal Employment Opportunity Commission and the Texas Department of Public Safety.
U.S. Attorney Sarah R. Saldana Welcomes Congressional Delegation from the Republic of MexicoRead the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed several members of the Republic of Mexico’s Congressional Delegation this morning as they began a two-day visit to North Texas. This morning, before the opening session, U.S. Attorney Saldaña, Senator Arely Gómez Gonzàlez, Congresswoman Karina Labastida Sotelo and Congressman Jorge Sotomayer Chàvez spoke to several representatives from the media.
U.S. Attorney Saldaña said, “We are greatly privileged to welcome the Mexican Congressional Delegation to North Texas. We’re honored that as they transition to an accusatorial system of justice, similar to ours, they are interested in learning more about our system. We certainly look forward to a productive dialogue and exchange of ideas with our important neighbors and friends.”
In June 2008, Mexico amended its constitution to require that by June 2016, federal and state governments implement oral trials with full rights of confrontation. The judiciary committees from both the Mexican Senate and House of Representatives requested assistance from the U.S. in discussing procedures, outlined in proposed bills, which will be applicable to the states as well as the Mexican federal government.
Following introductions this morning, the Congressional Delegation participated in a round-table panel discussion on the American Accusatory System. Panelists from the Northern District of Texas included U.S. District Judges, U.S. Magistrate Judges, the Chief of U.S. Probation and Parole and the U.S. Federal Public Defender. Later, the delegation met with various executives from federal, state and local law enforcement where topics such as agency cooperation, task forces and evidentiary chain of custody were discussed. Representatives from Senator John Cornyn’s office and Senator Ted Cruz’s office also participated.
Following this morning’s sessions, the Congressional Delegation attended presentations on the responsibilities of the U.S. Attorney’s Office, including prosecuting organized crime and money laundering cases. The delegation visited a U.S. Magistrate Court for various hearings and then travelled to Dallas Police Department Headquarters where they met with senior staff and toured the facility.
On the second day of their visit to North Texas, the Delegation will observe state court proceedings and meet with the Dallas County District Attorney and state prosecutors. When they return to the federal courthouse, they will meet with the U.S. Federal Public Defender and staff, the Chief of U.S. Probation and Pretrial Services and U.S. District and Magistrate Judges. Their visit will conclude late tomorrow with another meeting with U.S. Attorney Saldaña.
Waxahachie Man Charged with Firearms Offense Is Ordered Detained by Federal JudgeRead the Press Release
Clayton Earthman Arrested This Week with a Firearm, Large Amount of Chemicals, Supplies and Literature Suspected to be for Bomb Making Purposes
DALLAS — Clayton Todd Earthman, 24, of Waxahachie, Texas, appeared this afternoon in federal court, before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody during the pendency of the matter. Earthman was arrested on June 18, 2013, when officers with the Dallas Police Department (DPD) discovered a firearm, bomb-making chemicals and related literature in his vehicle. He is charged in a federal criminal complaint with being an unlawful user and addict of controlled substances in possession of a firearm. The announcement was made today by U.S. Attorney Sarah R. Saldaña.
According to the complaint, on the afternoon of June 18, 2013, DPD officers conducted a traffic stop on a vehicle driven by Earthman. Officers recovered a .357 Glock pistol, large amounts of chemicals, supplies and literature suspected to be for bomb-making purposes, hand-written notes describing how to build explosive devices and booby traps from his vehicle.
Earthman later advised that he is a drug user, had used methamphetamine three days prior and was addicted to marijuana. He advised that he is taking methadone to quit using heroin, which he used for one year. Earthman further advised law enforcement that he is a “Doom’s day prepper,” and that he had more firearms and large amounts of chemicals in his residence.
During today’s hearing, evidence was presented that officers discovered additional unlawful controlled substances, a firearm, chemicals and a live alligator when they executed a federal search warrant at Earthman’s residence on June 20, 2013.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is 10 years in federal prison.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Fort Worth Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to 97 months in federal prison, after pleading guilty to an indictment charging one count of possession of child pornography. Anderson has been in custody since he entered that guilty plea in March 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, in September 2012, officers with the Fort Worth Police Department’s Internet Crimes Against Children (ICAC) Unit executed a search warrant at Anderson’s home and seized computers and removable storage media. A forensic exam revealed images and videos of child pornography. Anderson admitted that he had downloaded images of child pornography from the Internet using newsgroups and that he had moved images from his computer to his flash drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.
Farmers Branch Man Arrested and Charged with Armed Bank RobberyRead the Press Release
FBI Says Luis Delagarza is the “Mesh Mask Bandit”
DALLAS — Luis Delagarza, 59, of Farmers Branch, Texas, has been arrested and charged in a federal criminal complaint with committing the armed bank robbery of a Wells Fargo Bank in Dallas in April 2013. This afternoon, Delagarza made his initial appearance in federal court before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody. A preliminary hearing and motion to detain the defendant will be conducted on Tuesday, June 25, 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division.
“The identification of the ‘Mesh Mask Bandit’ by the FBI’s Bank Robbery Task Force was the result of collaborative local and federal investigation across nine cities,” said Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division. “The arrest of this dangerous individual illustrates the effectiveness of task forces, the support provided by the U.S. Attorney’s Office and cooperation within the law enforcement community.”
According to the complaint and affidavit filed in the case, on April 22, 2013, the FBI was notified that the Wells Fargo Bank, located at 13297 Josey Lane, in Farmers Branch, had been robbed by a Hispanic male wearing a disguise and armed with a handgun. When law enforcement arrived at the bank, a special agent with the FBI interviewed a witness who worked in the bank. The witness advised that he/she was at his/her desk when he/she observed a Hispanic male walk past a window, adjacent to his/her desk, and head toward the Bank’s main entrance. The witness advised that as the man was entering the bank he/she saw him pull down a mask to cover his face. The witness further noted that as the man entered the bank and approached the bank tellers, he pointed a handgun at them and demanded money. As the bank tellers were scared for their well-being, they complied with the robber’s demands. The witness stated that as the robber was leaving the bank, he removed his mask, and again, this witness saw the robber’s face. This witness later positively identified Delagarza in a photo line-up.
The investigation is being conducted by the FBI and the Farmers Branch Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
San Angelo, Texas, Man Sentenced to 48 Months in Federal Prison on Federal Obscenity ConvictionRead the Press Release
LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 48 months in federal prison and 10 years of supervised release, following his guilty plea in March 2013 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In late November 2012, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) noticed an advertisement posted on an Internet message board entitled “Looking for company 18-25ish –m4m,” and determined that it was posted by Doyle. During ensuing email conversations between Doyle and an undercover agent who posed as a 15-year-old male, Doyle discussed with the undercover agent such things as showering together, lying naked on a bed together and possibly engaging in other sexual activity. The undercover agent’s age was discussed several times and Doyle repeatedly promised that a potential sexual relationship would remain secret. On December 15, 2012, Doyle emailed the undercover agent a sexually explicit photograph of himself. Doyle was arrested a few days later at a convenience store where he and the undercover agent had agreed to meet. He has been in custody since that time.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI was in charge of the investigation. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
San Angelo, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, appeared today in federal court in Lubbock, Texas, and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of possession of child pornography. Abney, who remains in custody, faces a maximum statutory sentence 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.
According to documents filed in the case, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography. He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Ballinger Police Department and the Runnels County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Pilot and Passenger from San Francisco, Whose Plane Was Met by CBP Air Interdiction as It Landed in Lubbock, Plead Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, each appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set after the completion of those reports. Both defendants remain on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint. Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.
According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions. Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.
CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft. On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport. Agents identified Gallanter as the pilot and Wynne-Wade as the passenger.
CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents. Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment. Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms. In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Owner of GeneRx Discount Pharmacy Admits Conspiring to Structure TransactionsRead the Press Release
Defendant Will Forfeit More Than $476,000 in Seized Funds to Government
DALLAS — Linus Nwosu appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an Information charging one count of conspiracy to commit structuring. He 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. In addition, according to the terms of the plea agreement, Nwosu will forfeit $476,390, that has been seized, to the government. He will remain on bond pending sentencing, which is set for October 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Nwosu owns and operates two pharmacies, with his wife, in the Dallas – Fort Worth area under the name of GeneRx Discount Pharmacy, Inc. From October 2011 to May 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits to avoid the currency reporting requirements. During this time, Nwosu and his wife made approximately 77 cash deposits totaling $476,190; each of the deposits was made with the intent to avoid the currency reporting requirements as required by law.
The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
Federal Grand Jury Indicts Man on Conspiracy to Transport Illegal AliensRead the Press Release
Defendant Also Charged with Illegal Reentry After Deportation
DALLAS — A federal grand jury in Dallas returned a three-count indictment today that charges Ignacio Garcia, 32, with one count each of conspiracy to transport illegal aliens, transporting illegal aliens and illegal reentry after deportation, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia has been in custody since his arrest on June 11, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that on June 11, 2013, Garcia conspired to transport, by means of a motor vehicle for the purpose of commercial advantage and private financial gain, aliens who entered and remained in the U.S. The indictment further alleges that on June 11, 2013, Garcia, an alien, was in the U.S., having been deported and removed from the U.S. in March 2011. Public documents, filed in U.S. District Court for the Southern District of Texas, note that Garcia was convicted of transporting undocumented aliens and sentenced in November 2010 to 13 months imprisonment, to be followed by deportation.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive transportation of illegal aliens count each carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The illegal reentry count, as charged, carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
San Angelo, Texas, Man Sentenced to 210 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Victor Lopez, 47, of San Angelo, Texas, was sentenced yesterday by U.S. District Judge Sam R. Cummings to 210 months in federal prison, following his guilty plea in March 2013 to one count of receipt of child pornography. In addition, Judge Cummings ordered that Lopez serve an additional 20-year term of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lopez has been in federal custody since his arrest following the execution of a federal search warrant at his residence by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on January 23, 2013. He was indicted in February 2013 on several counts of receiving and possessing child pornography.
According to plea documents filed in the case, Lopez admitted that he used file-sharing software to collect numerous videos of child pornography, including depictions of sadistic and masochistic 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 ICE HSI and the San Angelo Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Dallas Man Sentenced to Statutory Maximum of 10 Years in Federal Prison for Possessing More Than 8000 Images of Child PornographyRead the Press Release
DALLAS — Howard Tyson, 45, of Dallas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to one count of possession of child pornography. He was remanded into custody after he entered that plea. 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, Tyson used a peer-to-peer file-sharing program to download child pornography from the internet onto his computer and his wife’s computer. When agents with the U.S. Secret Service executed a federal search warrant at his residence on July 26, 2011, Tyson admitted that he had been downloading child pornography for approximately one year. He said that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of both computers showed that the hard drives contained more than 8000 images and 20 videos of child pornography. Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Big Spring, Texas, Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Also Ordered to Pay $150,000 in Restitution to a Victim Whose Photographs Were Included in His Collection
ABILENE, Texas — Juan Jose Guerra, 51, was sentenced on Wednesday, by U.S. District Judge Jorge A. Solis, to the statutory maximum of 10 years in federal prison for possessing child pornography. In addition, Judge Solis ordered that Guerra pay $150,000 in restitution to a victim whose photographs were included in his child pornography collection. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Guerra has been in federal custody since December 6, 2011. He pleaded guilty in February 2013 to one count of possession of child pornography. According to documents filed in the case, Guerra owned a computer, which he kept at his residence in Big Spring, Texas, which contained numerous images of child pornography.
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 case was investigated by the FBI, the Department of Homeland Security, U.S. Border Patrol, and the Midland and Big Spring Police Departments. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
Abilene Man Sentenced to 10 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Roy Paul Granger, 42, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 10 years in federal prison, following his guilty plea in January 2013 to one count of receipt of child pornography. Granger has been in custody since January 25, 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, Granger owned a computer, which he kept at his residence in Abilene, Texas, that was connected to the Internet. In April 2012, while searching online, using peer-to-peer software, for sexually explicit images of minors, Granger downloaded an image of child pornography onto his personal computer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
Former Loan Officer at Pampa Teachers Federal Credit Union Sentenced to 36 Months in Federal Prison for Stealing from Credit UnionRead the Press Release
Erin Dawn Trevathan Also Ordered to Pay More Than $400,000 in Restitution
AMARILLO, Texas — Erin Dawn Trevathan, 26, of Amarillo, Texas, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson to 36 months in federal prison and ordered to pay $442,297 in restitution following her guilty plea April 2013 to one count of fraud in connection with federal credit union entries. She was remanded to custody. Today’s announcement was made U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Trevathan was employed by the Pampa Teachers Federal Credit Union as a loan officer from July 2008 until early December 2010, and during that time, she was the sole loan officer at the credit union. Her job consisted of processing personal loans and auto loans.
During an audit, irregularities were noticed. When confronted, Trevathan admitted that she had been making false entries and stealing cash from the credit union’s main account for her personal use. As a result of her false entries, loan manipulations and unauthorized activity, the Pampa Teachers Federal Credit Union suffered a loss of approximately $422,973.
The case was investigated by the FBI, with assistance from the National Credit Union Administration. Assistant U.S. Attorney Christy Drake was in charge of the prosecution.
Amarillo Man Sentenced to A Total of 35 Years in Federal Prison for Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
AMARILLO, Texas — Donald Joseph West, 49, of Amarillo, Texas, an armed career criminal, was sentenced today by U.S. District Judge Mary Lou Robinson to a total of 35 years in federal prison following his conviction at trial in March 2013 on all counts of a superseding indictment charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldaña said, “In short, Donald West, a violent career criminal, presented a clear danger to the Amarillo community and, in particular, to the brave and dedicated law enforcement officers who serve it. Because of their extraordinary work on this case, all can rest easier tonight knowing that he will spend the next 35 years in prison.”
Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division, said, “Combined efforts of the public’s assistance and a joint investigation by the Amarillo Police Department, Potter and Randall County Sheriff’s Offices and the FBI led to Donald West’s successful conviction and subsequent sentencing that reflects law enforcement’s commitment to protecting communities from dangerous career criminals.”
Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). During the same trial, his nephew, David West, 43, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. His sentencing is set for June 26, 2013.
The government presented evidence at trial that on Monday, November 5, 2012, Donald West, wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and Donald West left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semiautomatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake prosecuted.
Abilene Resident Sentenced to Nearly Four Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
ABILENE, Texas — Robert Jade Lopez-Parker, 40, most recently a resident of Abilene, Texas, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 46 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal jury in Abilene convicted Lopez-Parker in January 2013 on a one-count indictment charging that he failed to register as a sex offender.
The U.S. Marshals Service received information that Lopez-Parker, a sex offender from Washington and Oregon, was living in Abilene. He was arrested on July 6, 2012, on a warrant out of Scurry County, Texas, and has been in custody since that time.
According to evidence presented at trial, Lopez-Parker lived in the Abilene area at least three months prior to his arrest, and he never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register as a sex offender because he had been convicted of a sex offense, Child Molestation in the Third Degree in Clark County Washington, for which he was sentenced on January 8, 2002. He last registered in Oregon on January 30, 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Marshals Service, the Texas Department of Public Safety, the Abilene Police Department, the Taylor County Sheriff’s Office, the Callahan County Sheriff’s Office, and the Oregon State Police. Assistant U.S. Attorney Steven M. Sucsy and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Arlington, Texas, Police Officer Charged with Unlawfully Providing Law Enforcement Sensitive Information to A Known Drug DealerRead the Press Release
Defendant Allegedly Involved in Anabolic Steroids Distribution Investigation
DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, an officer with the Arlington Police Department (APD), was arrested last night on a federal criminal complaint charging him with unlawfully providing law enforcement sensitive information by exceeding authorized access to a protected computer. He will make his initial appearance in federal court this afternoon, at 2:00 p.m., before U.S. Magistrate Paul D. Stickney. 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 criminal complaint, a particular individual (witness), who was arrested in January 2013 for distributing anabolic steroids, a Scheduled III controlled substance, admitted to routinely using and distributing anabolic steroids and human growth hormones (HGH) during the last 13 years. This witness also admitted that during the last five or six years, he directly and regularly provided anabolic steroids and HGH to Kantzos, whom he knew to be an officer with the APD. In fact, on at least one occasion, this witness delivered approximately 20 HGH kits to Kantzos while Kantzos was on duty, wearing an APD uniform and driving a marked APD patrol car.
The affidavit further notes that on multiple occasions, Kantzos solicited anabolic steroids from this witness for himself and for others, including friends and colleagues in the APD. Kantzos allegedly collected money from the other individuals before he obtained the steroids, but on some occasions, he “fronted” the money for the purchases. According to the affidavit, most of the anabolic steroids and HGH he obtained from this witness were provided to other officers of the APD. Also, Kantzos allegedly put this witness in contact with two other APD officers so that they could obtain anabolic steroids directly.
Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC) and the National Crime Information Center (NCIC), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information. Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy.
On several occasions, according to the affidavit, this witness, who indicated he was concerned that police might be watching his activities, asked Kantzos to query a name or a license plate using a law enforcement database. On several occasions, Kantzos did this, or had someone else do it for him, and then provided the obtained sensitive information to the witness. In fact, on one occasion in December 2011, Kantzos provided the name of a person who was known to be a law enforcement officer, and based on that information, the witness inspected his/her vehicle and discovered a tracking device attached to it. The investigation revealed that this witness immediately began “laying low” for several weeks. During that time, however, the witness and Kantzos talked about the tracking device and the police surveillance of the witness.
A federal 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. Kantzos is charged with exceeding authorized access to a protected computer. That offense, as charged, carries a maximum statutory penalty 10 years in federal prison and a $250,000 fine, per count.
The matter is being investigated by the FBI and the Texas Ranger Division of the Texas Department of Public Safety. Assistant U.S. Attorney Mark Penley and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are in charge of the prosecution.
Tarrant County Men Sentenced in Unrelated Child Pornography CasesRead the Press Release
FORT WORTH, Texas — In U.S. District Court in Fort Worth, Texas, today, U.S. District Judge Terry R. Means sentenced two Tarrant County men to lengthy federal prison sentences following their guilty pleas late last year in separate, unrelated child pornography cases, announced U.S. Attorney Sarah R. Saldaña.
In the first case, Judge Means sentenced David Wayne Hatcher, 42, of Richland Hills, Texas, to 108 months in federal prison following his guilty plea in December 2012 to two counts of possession of child pornography. Judge Means remanded Hatcher, who has been on bond, into custody following the hearing. According to documents filed in the case, when agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Hatcher’s home in 2011, they seized computer equipment and related storage media that contained video files of minors engaged in sexually explicit conduct.
In the other case, Judge Means sentenced Kristopher D. King, 25, of Euless, Texas, to 132 months in federal prison, following his guilty plea in November 2012 to one count of transportation of child pornography. King has been in custody since his arrest in September 2012. According to documents filed in the case, when FBI agents executed a federal search warrant at King’s home in 2010, King advised them that he had been using a peer-to-peer file-sharing program to trade files depicting child pornography. A forensic examination of King’s external hard drive revealed videos and images containing visual depictions of minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI, the Orange County, Texas Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Aisha Saleem prosecuted.
Big Spring, Texas, Man Pleads Guilty in Federal Court to Federal Child Pornography OffenseRead the Press Release
ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, appeared today in federal court, before U.S. Magistrate Judge E. Scott Frost, and pleaded guilty to one count of receipt of child pornography. He faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area. Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender. Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Regional Director of Califco, LLC, A Property Management Company, Admits Violating the EPA’s Clean Air ActRead the Press Release
Califco, LLC Also Pleads Guilty and Agrees to Pay a $500,000 Fine
DALLAS — Jonathan Isaac Shokrian, 28, who served as a Regional Director at Califco, LLC, with oversight of the company’s business operations in Texas, appeared in federal court in Dallas today, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to an Information charging one count of failure to notify under the Clean Air Act, related to an asbestos removal project. In addition, on behalf of the corporation, Califco’s President and CEO, Elias Shokrian, who is Jonathan Shokrian’s father, pleaded guilty to the same offense. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Califco is a property management company headquartered in Beverly Hills, California; it has a regional office located on North Story Road in Irving, Texas. Califco owns and operates several commercial properties in the Dallas area, including Plymouth Park Shopping Center on North Story Road in Irving and Crest Plaza Shopping Center on South Lancaster Road in Dallas.
Jonathan Shokrian faces a maximum statutory penalty of two years in federal prison, a $250,000 fine and restitution. If the Court accepts the term of the government’s plea agreement with the corporation, Califco will pay a $500,000 fine and will be placed on a five-year term of probation. Sentencing is set for September 27, 2013, before U.S. District Judge Sidney A. Fitzwater.
The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish standards to prevent or limit the emission of hazardous air pollutants into the atmosphere. The EPA has enacted regulations under the Clean Air Act that control the removal, handling and disposal of asbestos.
According to documents filed in the case, Elias Shokrian hired another individual, “B.M.,” to be Califco’s Director of Development and supervise construction and renovation and provide oversight of asbestos abatement work. In 2008, Califco, Jonathan Shokrian and B.M. contracted with a specialized asbestos abatement contractor to remove asbestos from an old movie theater in the Crest Plaza Shopping Center. That abatement was conducted in compliance with all federal, state and local regulations and was completed in October 2008.
Approximately one month later, Jonathan Shokrian decided to conduct a renovation of the abandoned former Fazio’s department store in the Plymouth Park Shopping Center. Rather than hiring a professional asbestos abatement contractor, as Califco had done on its Crest Plaza Project, Shokrian attempted to save money by employing two day laborers to remove ceiling tile and floor tile and mastic from the Fazio’s building, even though he knew these materials contained asbestos.
While Califco provided the day laborers with masks, respirators and other tools to facilitate the removal of the asbestos-containing material, the masks and respirators were not adequate to protect the workers from the asbestos fiber. Neither Shokrian nor B.M. informed the day laborers on the site, or the Califco-employed maintenance worker, that there was asbestos in the tile and mastic being removed. Neither Shokrian nor B.M. notified any of the other commercial tenants of the Plymouth Park Shopping Center that asbestos-containing materials were being removed from the Fazio’s building.
In mid to late February 2009, day laborers, under Shokrian’s supervision, began using large amounts of gasoline to remove the remaining asbestos-containing floor tile mastic in the Fazio’s building. On February 27, 2009, after responding to a call regarding the overwhelming smell of gasoline in the area around the Plymouth Park Shopping Center, the Irving Fire Department ordered the evacuation of the shopping center and a portion of a nearby residential neighborhood because of the concentration of gasoline fumes in the Fazio’s building.
The investigation was conducted by the EPA and the Texas Department of State Health Services. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Kaufman County Man, Who Used Identities of Deceased Persons to Claim Federal Income Tax Refunds,Read the Press Release
is Sentenced to 60 Months in Federal Prison and Ordered to Pay Nearly $450,000 in Restitution
DALLAS — Jason Cano was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 60 months in federal prison and ordered to pay $447,830 in restitution following his guilty plea in January 2013 to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.
According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.
The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.
In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.
According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.
In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/.
IRS-CI was in charge of the investigation and Assistant U.S. Attorney Chris Stokes prosecuted.
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:
- Brittany Brown, 23, sentenced to 46 months
- Melanie Brown, 40, sentenced to 24 months
- Michael Eugene Peters, 35, sentenced to 84 months
- Travis Ritchie, 63, sentenced to 72 months
Melanie Brown pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. She admitted that she and others agreed to and engaged in the distribution of methamphetamine. She further admitted that on numerous occasions, she distributed quantities of methamphetamine to, and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Steve Ysasaga supplied the methamphetamine that she distributed.
Ritchie pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. He admitted that on multiple occasions he distributed methamphetamine, supplied by Ysasaga, and facilitated its distribution in Wichita Falls. He also admitted that he allowed Ysasaga to distribute methamphetamine to other co-conspirators, including Franklin Dewayne Hubbard and David Calandreli, from his residence on 7th Street in Wichita Falls.
Brittany Brown pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. In March 2012, Brittany Brown sold approximately 20 grams of methamphetamine to an undercover officer.
Peters, who was previously convicted of felony offenses, pleaded guilty to one count of being a felon in possession of a firearm. He admitted that on March 7, 2011, he possessed a loaded .380 caliber pistol that was discovered by law enforcement during a search of his vehicle subsequent to a traffic stop.
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 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.
Defendant Sentenced to 36 Months in Federal Prison in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Tommy Dean Turner was sentenced yesterday to 36 months in federal prison and ordered to pay $365,626 in restitution following his guilty plea in February 2013 to one count of conspiracy to file false claims. His co-conspirator, Shaunthina Daniel Rushing, who pleaded guilty to the same offense, is scheduled to be sentenced on June 19, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to factual resumes filed in the cases, Turner conspired with Rushing, and 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 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.
Turner admitted that the co-conspirators 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 Tax Division Trial Attorney Robert A. Kemins prosecuted.
Two Plead Guilty in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, appeared in federal court yesterday, before U.S. Magistrate Judge Jeffrey L. Cureton, and pleaded guilty to a superseding information charging conspiracy to commit sex trafficking of a minor. Co-defendant Brittanie S. Brattain, 22, pleaded guilty on May 1, 2013, to the same offense. Each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge Terry R. Means is scheduled to sentence Miller on November 12, 2013, and Brattain on October 15, 2013; both defendants remain in custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Former Vice President of University Medical Center in Lubbock Pleads Guilty in Federal Court to Mail FraudRead the Press Release
LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, appeared in federal court today before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting, stemming from a fraud scheme he ran while he served as a Vice President of University Medical Center (UMC) in Lubbock. Bruce, a resident of Lubbock, will remain on bond. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentencing investigative report with a sentencing date to be set upon the completion of that report.
According to documents filed in the case, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rudolph Reyes Mata, aka Rudy Mata, to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
Bruce also admitted that he used a UMC credit card to make unauthorized payments and purchases of approximately $55,584.
The case is being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Big Spring Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, appeared in federal court in Lubbock today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Albarado has been in custody since his arrest in March 2013. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Two Plead Guilty in Federal Court to Distributing Child PornographyRead the Press Release
Each Defendant Faces Up to 20 Years in Federal Prison
FORT WORTH, Texas — Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, each appeared today before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of distribution of child pornography. Bodie was arrested in February 2013 and Long was arrested the following month on related charges outlined in criminal complaints, and they have been in custody since that time. They each face a maximum statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for November 12, 2013, before U.S. District Judge Terry R. Means. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.
In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography. Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the FBI. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Tarrant County Men Sentenced in Sex Trafficking CaseRead the Press Release
FORT WORTH, Texas — Craig Jerome Gadley, Jr., 23, and Joshua Alexander Smith, 25, both of Mansfield, Texas, were each sentenced on Monday, June 3, 2013, by U.S. District Judge Terry R. Means, to 15-year federal prison sentences, following their guilty pleas last year to sex trafficking charges. Specifically, Gadley pleaded guilty to one count of sex trafficking of a minor and Smith pleaded guilty to one count of sex trafficking by force, fraud and coercion. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, law enforcement learned, in June 2011, that a 16-year-old female, Jane Doe #1, had been working as a prostitute for Gadley, aka “Cjay the Don,” in and around the Dallas/Fort Worth (DFW) area. Jane Doe #1 met Gadley while she was working as a stripper at a night club in Fort Worth, Texas, and he promised her that she could earn more money by working for him. Gadley gave Jane Doe #1 money and took her shopping. Although he knew she was 16-years-old, he told her he didn’t care and that she owed him for the money he had provided her.
Gadley took photographs of Jane Doe #1 in lingerie and in the nude and then posted advertisements of her on websites used to promote and advertise commercial prostitution. He drove her to hotel rooms in the DFW area and directed her to have sex with men for money. Gadley took all of the proceeds, provided her with necessities such as food and clothing, and provided condoms and hotel rooms for her to use.
Another female, 19-year-old, Jane Doe #2, who worked as a prostitute for Smith, was arrested on July 30, 2011 for prostitution, after undercover officers who saw ads for her on the Internet arranged to meet her at a hotel in Arlington, Texas.
The plea documents further state that Smith and Jane Doe #2 had dated until he convinced her that she could make a lot of money if she worked for him as a prostitute. She eventually agreed and began working for Smith in May 2011. He placed ads for Jane Doe #2 on websites that advertised prostitution and received all of the money she earned. He provided her necessities such as food, gas and clothing. He also provided her condoms and hotel rooms for her to use in the Fort Worth area.
Jane Doe #2 was fearful of Smith. While working for him, he choked her, held her against a wall, poured drinks on her head, pulled her hair and threatened to harm her. He kept pushing her to work longer hours and acquire more clients.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the North Texas Trafficking Task Force, including the Arlington, Dallas and Fort Worth Police Departments.
Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
Public Relations Firm Employee Admits Embezzling More Than $772,000 from EmployerRead the Press Release
DALLAS — Marci Johnson, 46, of Kaufman, Texas, appeared in federal court today and pleaded guilty before U.S. District Judge Jorge A. Solis to an Information charging one count of mail fraud, stemming from her embezzlement of more than $772,000, over at least seven years, from her employer, Spaeth Communications. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
If the Court accepts the terms of the plea agreement and full restitution of $772,829.25 has been paid prior to sentencing, the parties agree that the appropriate term of imprisonment should not exceed 24 months. Sentencing is set for September 18, 2013, before Judge Solis.
According to documents filed in the case, from at least August 2003 to March 2011, Johnson embezzled $772,829.25 from her employer, Spaeth Communications of Dallas. During part of that time, Johnson was the company’s Chief Administrative Officer, and in that role, had access to its company checks and company credit cards. Based on her long-standing working relationship with the company’s owner, Johnson occupied a position of trust that provided her substantial discretion over the company’s bank accounts.
Johnson admitted using her corporate American Express card for numerous personal charges, such as dining, department stores and entertainment. In addition, she used company checks to pay for outstanding charges on the company’s American Express bill, including charges she made for personal expenses. She also wrote company checks to cover charges on her personal credit cards. In fact, Johnson admitted that she wrote company checks to Citibank, her personal credit card provider, to cover the cost of an outdoor deck, hot tub, outdoor granite countertops and grill at her personal residence in Kaufman and caused false entries to be made in the company’s accounting software to prevent others from discovering her fraudulent purchases.
The investigation was conducted by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
U.S. Postal Employee in Ennis, Texas, Admits Stealing MailRead the Press Release
DALLAS — Gary Wayne Thomas, 54, of Ennis, Texas, appeared in federal court this morning, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to an Information charging theft of mail matter by an officer or employee. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, between August 2011 and September 2012, Thomas worked at the Ennis Post Office, and his duties included assisting customers at the retail window, dispatching raw mail, pulling raw mail from collection boxes and sorting outgoing mail dropped in the post office’s lobby. During that time, Thomas embezzled and stole mail items that were intended to be conveyed by the U.S. mail that had been entrusted to him as a U.S. Postal Service employee.
For example, Thomas stole a birthday card containing a $50.00 Wal-Mart gift card that had been sent from a woman to her six-year-old grandson. That piece of mail had been mailed inside the Ennis Post Office. Thomas used the gift card to purchase personal items at Wal-Mart.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Law Enforcement Arrests Man Living in Motel in Lubbock and Charges Him with Robbing FirstBank Southwest in AmarilloRead the Press Release
LUBBOCK, Texas — On June 5, 2013, Gabriel Tenorio, 30, will appear in federal court in Lubbock, Texas, before U.S. Magistrate Judge Nancy M. Koenig, on a federal complaint filed on Friday, May 31, 2013, that charges him with robbing a branch of FirstBank Southwest (FBSW) in Amarillo, Texas, last month. Tenorio is currently in custody on state charges. 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, on the morning of May 20, 2013, Tenorio, wearing dark clothing, a hat and a mask covering his face, and brandishing a sawed-off shotgun, robbed the FBSW located at 5701 SW 34th Street, in Amarillo. The robber was observed without his mask by two people and another person saw the vehicle he drove leaving the bank. Two days later, officers with the Lubbock Police Department located FBSW money straps, a bag and a sawed-off shotgun, consistent with items from the robbery, in a field near the Lubbock airport.
The investigation revealed that Tenorio was staying at a motel in Lubbock. Law enforcement observed him exit the motel and leave, driving an older model vehicle. After his arrest, a search of that vehicle and his motel room yielded an amount of cash consistent with that taken in the FBSW robbery.
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 maximum statutory penalty for the charged offense of bank robbery is 20 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI and the Amarillo and Lubbock Police Departments. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Parkland Memorial Hospital Pays Nearly $1.4 Million to Resolve Allegations It Submitted Improper Physical Medicine and Rehabilitation ClaimsRead the Press Release
DALLAS - Dallas County Hospital District d/b/a Parkland Health and Hospital System (Parkland) settled allegations it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The U.S. and Texas contend Parkland caused unallowable and “upcoded” physician consultations and other services to be submitted to Medicare and Texas Medicaid for certain physical medicine and rehabilitation (PMR) related items and services between 2007 and 2011. Parkland fully cooperated with the investigation, and by settling, did not admit any wrong-doing or liability.
When patients are admitted to a hospital, specialists, like PMR physicians, often consult with the attending physician on a variety of issues. At teaching hospitals, faculty physicians may bill for the supervision of residents, if present for the key or critical portions of the services. In both cases such consults, if medically appropriate, are reimbursed by Medicare and Texas Medicaid. The United States and Texas based their investigation on allegations that Parkland submitted or caused the submission of false and fraudulent PMR claims, and false statements in support of such claims, to the Medicare and Texas Medicaid programs between 2007 and 2011 for: (1) consultations that were never requested by a patient’s treating physicians and/or lacked medical necessity; (2) services related to the inappropriate supervision of residents and/or lacked medical necessity; (3) up-coded and inflated evaluation and management services; (4) inpatient rehabilitation stays that did not meet billing requirements; and (5) other unreimbursable costs.
The U.S. and Texas initiated the investigation in response to a March 2010 whistleblower suit brought by Lien Kyri, M.D., a former resident in the PM&R department, UTSW Medical Center at Dallas. Under the False Claims Act and Texas Medicaid Fraud Prevention Act, private individuals may bring actions alleging fraud on behalf of the U.S. and Texas and collect a share of any proceeds recovered by the suit. Dr. Kyri may receive up to 30% of the recovery under the settlement. U.S. Attorney Saldaña praised the efforts of the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) and the Texas Medicaid Fraud Control Unit. U.S. Attorney Saldaña also noted “this settlement demonstrates the Northern District of Texas, and the entire Department, remain committed to investigating allegations of health care fraud, regardless of provider or affiliation.” “Any time false claims are submitted for payment, the nation’s taxpayers and health insurance programs suffer,” said Special Agent in Charge Mike Fields of the OIG’s Dallas Regional Office. “Our agents will continue working to identify providers who manipulate the system to grab precious Medicare and Medicaid dollars to which they are not entitled.”
In addition to paying nearly $1.4 million, Parkland agreed to enter into with the OIG a five-year corporate integrity agreement (CIA) in exchange for release of the agency’s administrative remedies. The CIA requires Parkland to enact and report to the OIG its compliance with billing rules, but also will monitor Parkland to ensure patients receive appropriate care.
The case was handled by Assistant U.S. Attorney Sean McKenna and Assistant Texas Attorney General Paula Juba. The case is captioned United States ex rel. Kyri v. Dallas County Hospital District d/b/a Parkland Health and Hospital System, et al.; Civil Action No. 3:10-cv-0487-D (N.D. Tex.).
Amarillo Women Sentenced to Lengthy Federal Prison Sentences for Running Methamphetamine Distribution ConspiracyRead the Press Release
Law Enforcement Discovered More Than 33 Kilograms of Meth in Vehicle
AMARILLO, Texas — Today, Delmy Nohemy Hernandez, 36, aka Delmy Nohemy Pena De Hernandez, was sentenced by U.S. District Judge Mary Lou Robinson to 133 months in federal prison following her guilty plea in March 2013 to one count of conspiracy to possess with intent to distribute methamphetamine. Yesterday, codefendant Lilia Rivera, aka Lilia Rivera-Martinez, 44, was sentenced by Judge Robinson to 97 months in federal prison. Rivera pleaded guilty to the same offense. 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, Rivera was introduced to Hernandez in October 2012 by a mutual friend. Hernandez offered Rivera an opportunity to transport controlled substances. That same month, they began making plans to transport controlled substances by vehicle for a male acquaintance. The controlled substances would be concealed in the vehicle and the women would be paid for transporting it.
In December 2012, Rivera and Hernandez, both residents of Amarillo, went to the Potter County tax office and registered a vehicle in Rivera’s name. The vehicle, a SUV, had been purchased by the male acquaintance who gave them cash to pay for the SUV’s registration, even though he maintained possession of it.
On December 18, 2012, the male acquaintance advised Hernandez and Rivera that they would be making a trip in the SUV to transport a controlled substance. Rivera was to be paid for transporting the substance and Rivera told Hernandez that she would give her some of the money.
On December 20, 2012, Rivera and Hernandez were stopped by law enforcement on U.S. 287 in Carson County, as they were headed to Houston, knowing that they were transporting a controlled substance. During that traffic stop, law enforcement asked the vehicle’s driver, Rivera, for consent to search the vehicle. Subsequently law enforcement discovered 33.6 kilograms of methamphetamine secreted in the vehicle. Rivera and Hernandez were arrested and have been in custody since that time.
The case was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Armstrong and Carson County Sheriff’s Offices and the Amarillo Police Department. Assistant U.S. Attorney Vicki Lamberson was in charge of the prosecution.
Owner of A Dallas Medical Equipment Supply Company Is Sentenced to 30 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Defendant Also Ordered to Pay Nearly $700,000 in Restitution
DALLAS — Olalekan Sorunke, 40, of Rowlett, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 30 months in federal prison and ordered to pay $691,175 in restitution, following his guilty plea in February 2013 to one count of health care fraud, stemming from the operation of his business, Lincoln Medical Supply, Inc. (Lincoln), in Dallas. Judge Solis ordered that Sorunke surrender to the Bureau of Prisons on July 10, 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, Lincoln was a durable medical equipment (DME) supply company. As its owner/operator, Sorunke maintained a valid Medicare group provider number to submit Medicare claims for DME. Sorunke submitted Medicare claims that were not medically necessary or were not provided to Medicare beneficiaries. In one instance, for example, in July 2009, Sorunke submitted a claim to Medicare for providing a heavy-duty wheelchair to a beneficiary, when he knew that this beneficiary did not need a wheelchair, much less a heavy-duty wheelchair. He fraudulently billed Medicare $7,689 for that claim.
In total, Sorunke’s scheme resulted in a loss of $691,175. Sorunke used the fraudulently obtained funds for his own personal use.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Mindy Sauter was in charge of the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: http://www.stopmedicarefraud.gov/.
Wichita Falls, Texas, Man Charged in Federal Complaint with Making Threats to Blow up Federal CourthousesRead the Press Release
DALLAS — Christopher Stephens, 34, appeared in federal court today in Wichita Falls, Texas, before U.S. Magistrate Judge Robert K. Roach, on a criminal complaint related to several threats he allegedly made to blow up federal buildings in the Dallas-Fort Worth metroplex, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Stephens, who resided at the North Texas State Hospital (NTSH) in Wichita Falls, was ordered detained, pending a probable cause and detention hearing that will be set at a later date and held before U.S. Magistrate Judge David L. Horan in federal court in Dallas.
According to the affidavit filed with the complaint, the Wichita Falls Police Department’s (WFPD) communications center received telephone calls, one on March 5, 2013, and one the following day, from a caller who identified himself as “Gerald Adams.” In those calls, the caller threatened to blow up the U.S. Courthouse in Dallas. During the second phone call, the communications operator asked the caller if he was located at the NTSH, and the caller said that he was.
Law enforcement contacted an individual with a similar name who resided at the NTSH; however, it was determined that this individual was not the one who made the telephonic bomb threats. This individual stated that he believed the caller was another resident of NTSH, Christopher Stephens. He explained that Stephens became fascinated with his ex-wife, who had visited on several occasions, and that Stephens had alluded to making contact with her upon his release. The individual believed that Stephens used his name to sabotage his release date.
On March 7, 2013, the WFPD’s communication center received a third bomb threat. During that call, Stephens advised that a bomb had been planted at the U.S. Courthouse in Fort Worth. The operator kept Stephens on the line long enough for WFPD officers to go to NTSH and observe Stephens on the phone speaking with the WFPD. Stephens didn’t deny making the bomb threat.
NTSH provided the officers with letters from Stephens. One letter was addressed to a WFPD officer and one was addressed to the FBI. Both letters provided a detailed description of how Stephens would blow up a federal courthouse, what materials he would use to make the bomb and how it would detonate. Stephens also wrote racial comments in the letter and included Nazi SS symbols.
On March 25, 2013, the FBI Dallas Field Division received a letter, via the U.S. Postal Service, signed by Stephens. That letter read, “I will blow up the Federal Courthouse in Fort Worth, Texas.” On April 3, 2013, the WFPD received a mailed bomb threat from Stephens that mirrored the one sent earlier to the FBI, with the exception that the letter depicted three Nazi Swastikas and the words “White Power.”
A federal 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. Stephens is charged with one count of using to the mail to willfully make a threat to unlawfully damage or destroy a federal courthouse by means of an explosive. That offense as charged carries a maximum statutory penalty 10 years in federal prison and a $250,000 fine, per count.
The matter is being investigated by the FBI and the WFPD. Assistant U.S. Attorney Kate Pfeifle and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are prosecuting.
Four Men Arrested and Detained in IRS InvestigationRead the Press Release
Arrests are Part of IRS’s Stolen Identity Refund Fraud (SIRF) Initiative
DALLAS — Four individuals remain in federal custody on charges related to their involvement in a scheme to obtain and use stolen identities to steal federal income tax refunds. The four men, Michael Hutchinson Agu, 38, of Murphy, Texas; Benjamin Kinyua, 34, of Plano, Texas; Thomas Nganga Muya, of Atlanta, Georgia; and Harry Fabrice Cheickh Amont, 29, of Lithonia, Georgia; were arrested in an operation conducted by special agents with Internal Revenue Service Criminal Investigation (IRS-CI). They have all made their initial appearances before a U.S. Magistrate Judge, where identifying information was provided, and have been detained pending further order of the Court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Agu and Kinyua are each charged, in separate complaints, with identity theft, theft of government funds and aiding and abetting. A separate complaint charges Muya and Amont with theft of government funds and aiding and abetting.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
The complaints outline the fencing of stolen IRS refund checks, including a United States Treasury check for an IRS refund in the amount of almost $600,000 that was were obtained using stolen identification information. The defendants worked as brokers or check cashers –cashing these checks for a percent of their face value.
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 penalty, upon conviction, for the charged offense of identity theft is 15 years in federal prison and a $250,000 fine. The penalty, upon conviction, for the charged offense of theft of government funds is 10 years in federal prison and a $250,000 fine.
IRS-CI is investigating. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Former Sheppard Air Force Base Employees and Contractors Sentenced for Conspiring to Unlawfully Disclose and Obtain Sensitive Government Contract InformationRead the Press Release
DALLAS — Three of the four individuals who pleaded guilty last year to their roles in a conspiracy to unlawfully disclose and obtain sensitive government contract information, were sentenced today in federal court in Dallas by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldana said, “The public deserves to have absolute confidence that government employees are honest and above reproach in their dealings with government funds and private contractors. This prosecution sends a strong message that they will be held accountable for their betrayal of the public trust.”
John Torrance Gilmore, III, 53, of Wichita Falls, who was the Lead Supervisory Engineer at Sheppard Air Force Base (SAFB), and the most culpable in the scheme, was sentenced 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.
Another former employee at SAFB, Larry Thomas Ballard, 60, also of Wichita Falls, pleaded guilty to the same offense and is scheduled to be sentenced on July 19, 2013.
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. All three defendants must surrender to the Bureau of Prisons on June 20, 2013.
As the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, Gilmore 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 several contracts’ specifications, 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 took him to several gun shows and paid his travel expenses.
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.
Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Dallas Woman Indicted in Bankruptcy FraudRead the Press Release
DALLAS — Estela Martinez, 53, of Dallas, made her first appearance in federal court this afternoon for the felony offense of bankruptcy fraud, as charged in an indictment returned by a federal grand jury in Dallas earlier this week. She pleaded not guilty and U.S. Magistrate Judge David L. Horan released her on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that from January 2011 through November 2012, Martinez filed several fraudulent bankruptcy petitions concerning, or in relation to, bankruptcy proceedings. She also allegedly made several false, fraudulent and material statements regarding her social security number in four Chapter 13 voluntary bankruptcy petitions. The indictment further alleges that Martinez repeatedly sought to defraud her creditors, by her efforts to delay, and frustrated the ability of the mortgage holder to foreclose on her residence.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the offense of bankruptcy fraud carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
The investigation is being conducted by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Federal Jury Convicts Tarrant County Man in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a two-day trial in federal court in Fort Worth, Texas, before U.S. District Judge John McBryde, a federal jury has convicted Jermaine Duane Irvin, 41, on a superseding indictment charging one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Irvin, who has been in custody since his arrest at his home in Arlington, Texas, on February 28, 2013, faces a statutory penalty of 10 years to life in federal prison and a $5,000,000 fine. He is scheduled to be sentenced on September 13, 2013 by Judge McBryde. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Irvin and four others, Christopher Gamez, of Arlington; Osamu John Hack of Grand Prairie, Texas; Maria Guadalupe Contreras; and Alex Plasencio III, also of Arlington; were charged with running the conspiracy to distribute methamphetamine in the Arlington area from August 2012 to late February 25, 2013. Gamez, Contreras, Hack and Plasencio were arrested in late February 2013 and have each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
This Organized Crime Drug Enforcement Task Force (OCDETF) case was investigated by the Drug Enforcement Administration and the FBI. Assistant U.S. Attorneys Josh Burgess and Shawn Smith are in charge of the prosecution.
Dallas Woman Charged with Financial Aid FraudRead the Press Release
DALLAS — Sussette Sheree Timmons, 30, of Dallas, was indicted by a federal grand jury yesterday on multiple counts of financial aid fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that Timmons applied for and received financial aid from six schools that offered distance learning programs via the Internet. Timmons allegedly never intended to use the disbursed financial aid funds for education and instead intended to embezzle, misapply, steal and obtain the funds for her own personal use.
Timmons applied for, and received financial aid from: New Mexico State University, Western New Mexico University, Ashford University, Northern New Mexico College, Coconino Community College and Pima Community College. She enrolled in classes at the schools and the awarded financial aid was applied to her tuition and fees.
As part of the financial aid, Timmons also received disbursement checks which she cashed, even though she had no intention of using those funds for authorized educational expenses and purposes. The indictment further alleges that Timmons not only did not intend to complete, but she did not complete any of the classes for which she enrolled, and she did not intend to pursue an education at the schools. When asked by the institutions to return or refund the financial aid, she refused. In 2011, when one of the schools suspended her financial aid, Timmons appealed. That school rejected her appeal, stating that she had withdrawn from 13 colleges or universities since 2009.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. The indictment charges Timmons with six counts of financial institution fraud. If convicted, each count carries a maximum statutory sentence of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.
The case is being investigated by the U.S. Department of Education Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Four More Defendants Sentenced in Major Methamphetamine ConspiracyRead the Press Release
Next Sentencings Set for June 7, 2013
WICHITA FALLS, Texas — On Friday, May 17, 2013, four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced on Friday:
- Anthony DiPalma, 32, sentenced to 188 months
- Jason Brent Hoffman, 36, sentenced to 120 months
- Debra McCulloch, 59, sentenced to 50 months
- McKayla Fondren, 21, sentenced to 24 months
DiPalma and Fondren each pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. Hoffman admitted being a felon in possession of a firearm and McCulloch pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and manufacture methamphetamine.
DiPalma admitted that on March 28, 2012, he possessed with intent to distribute and distributed five grams or more of methamphetamine.
Hoffman, who has both state and federal drug convictions, admitted that in October 2011, he possessed a 9 mm pistol, which he sold to an undercover agent.
McCulloch admitted that on multiple occasions between June and September 2012, she distributed, and facilitated the ability of co-conspirators, to distribute methamphetamine. She also admitted allowing co-defendants Steve Ysasaga and David Calandreli to store quantities of methamphetamine, as well as proceeds from the sale of the methamphetamine, at her residence on 30th Street in Wichita Falls.
Fondren admitted that in June 2012, when officers with the Wichita Falls Police Department executed a state search warrant at her residence on Dee Drive in Wichita Falls, they found more than 15 grams of methamphetamine, as well as a digital scale and a small tub of MSM, a substance used to dilute or cut methamphetamine.
Several more defendants convicted in the conspiracy are scheduled to be sentenced on June 7, 2013. To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 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.
Colleyville, Texas, Man Sentenced to 18 Months in Federal Prison and Fined $30,000 on Income Tax Evasion ConvictionRead the Press Release
Defendant Norvell Moss a Licensed Pharmacist at Grapevine DrugMart
FORT WORTH, Texas — Norvell Moss was sentenced on Friday by U.S. District Judge John McBryde to 18 months in federal prison and ordered to pay a $30,000 fine and additional restitution of $8,277, to go along with the more than $94,000 he paid prior to sentencing, following his guilty plea in January 2013 to one count of income tax evasion. Judge McBryde ordered Moss to surrender to the Bureau of Prisons on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the felony Information filed in the case, Moss is a resident of Colleyville, Texas. The factual resume states that Moss is a licensed pharmacist and works as the head pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
The stipulated facts included in the factual resume note that Moss received quarterly and weekly payment of income drawn on Grapevine Drug Mart’s business accounts. The quarterly payments, generally received three to five times per year, varied in amounts ranging from $20,000 to $100,000. These payments were made payable to Mossman Management, dba Moss established in Tarrant County, and deposited into Mossman Management’s business bank account. The weekly payments (checks) were much smaller and were made payable to Moss or Mossman Management. From October 2006 through December 2008, Moss cashed the weekly checks.
The factual resume further stipulates that Moss willfully attempted to evade the amount of income tax he owed for tax year 2008 by failing to report approximately $194,150 that he received from Grapevine Drug Mart for that year. As a result of not reporting all of his income received, Moss had an additional tax due and owing of $58,233 for that year.
According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month 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. Both Larry Lake and Travis Lake are awaiting sentencing.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
Ranch Owner in Young County Sentenced to 10 Years in Federal Prison for Shooting A Crop-Dusting Aircraft Flying Near His RanchRead the Press Release
Multiple Bullets Struck and Damaged Aircraft
WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor, in federal court in Wichita Falls, Texas, to 120 months in federal prison and ordered to pay $3600 in restitution, following his guilty plea in January 2013 to an Indictment charging one count of destruction of an aircraft. Riley has been in federal custody since his arrest on May 10, 2013, for violating the conditions of his pretrial release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 11:40 a.m., on February 22, 2008, as a pilot flew his crop-dusting aircraft over property adjacent to the Flying Lead Ranch (FLR), a commercial hunting and residential property owned and occupied by Riley, Riley shot the aircraft with a firearm, striking it with multiple bullets and damaging the aircraft. One bullet struck the rudder cable and nearly severed it. A bullet or bullet fragment also struck the V-strut bar, approximately one and one-half inches from the connector bolt. Bullets, or bullet fragments, caused a hole in the aircraft’s left rear wing and indentations on the plane’s left side. The bullet holes and other damage indicated that the aircraft had been shot by someone on the ground discharging a firearm upward into the air. The aircraft was leased by Keeter Aerial Spraying, of Olney, for commercial crop-dusting services in Texas and Oklahoma.
Documents filed further state that prior to the above-stated date, Riley threatened Keeter’s owner, both in person and by phone, that he would shoot down any crop-duster that flew over his hunting ranch. In August 2010, officials with Texas Parks and Wildlife, seeking evidence of illegal hunting, executed a search warrant at the FLR and discovered a disc that contained video footage of Riley firing approximately 23 shots at another Keeter aircraft spraying the same field in July 2007. In September 2010, when questioned by a Texas Ranger, Riley admitted to shooting at Keeter aircraft on more than one occasion, as he had threatened to do.
The case was investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller prosecuted.