Northern District of Texas
Press releases recorded for this federal judicial district.
Former Bank Executive Sentenced to 37 Months in Federal Prison for Embezzling from Bank of AmericaRead the Press Release
LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 37 months in federal prison and ordered to pay $385,356 in restitution following his guilty plea in February 2013 to one count of bank embezzlement by a bank employee. Judge Cummings ordered that Wright surrender to the Bureau of Prisons on June 20, 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, Wright was employed by Bank of America in Lubbock, as a Branch Manager at the 5144 82nd Street location. The factual resume states that Wright was a member of the Board of Deacons and Trustee at Community Baptist Church (CBC) in Lubbock. Beginning in May 2006 and continuing to January 24, 2010, Wright used his position as a Bank of America employee to embezzle funds owned by CBC and entrusted to the custody and care of Bank of America. He employed a variety of methods to embezzle the funds, including embezzling from CBC’s Certificates of Deposits held at the bank; making cash withdrawals from CBC’s accounts using debit (withdrawal) tickets; and fraudulently drawing checks on CBC’s checking account.
The case was investigated by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Amanda R. Burch prosecuted.
U.S. Attorney and the President and CEO of the National Crime Prevention Council (NCPC)to Speak at DART’s Information and Health Fair Celebrating Older American’s MonthRead the Press Release
NCPC to Unveil its New Public Education Campaign to Protect Seniors from Crime
DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Ann M. Harkins, the President and CEO of the National Crime Prevention Council, will speak at an information and health fair for seniors that is being held tomorrow, Thursday, May 16, 2013, from 10:00 a.m. to 1:00 p.m. at Eddie Deen’s Ranch on South Lamar Street in Dallas. This is the 19th year that this free event, sponsored by the Dallas Area Rapid Transit (DART), the Dallas Area Agency on Aging and Eddie Deen’s, is being held.
U.S. Attorney Saldaña said, “Protecting older Americans is a top priority that the Department of Justice advances on multiple fronts. Our goal is to empower older persons, and the communities where they reside, with relevant information and resources to ensure that they can live in safe and healthy environments – something we all deserve. I’m thrilled to participate in this year’s event, and I commend DART, the Dallas Area Agency on Aging, Eddie Deen’s and all our community partners who make this information and health fair such a success.”
Ms. Harkins said, “NCPC is pleased to be a part of this event and to share our new public education campaign about protecting senior citizens from financial fraud and physical or emotional abuse. The last thing on the minds of our seniors should be the worry of losing a lifetime of savings or being abused by those they trust. We each play a pivotal role in preventing crimes against seniors and empowering our older Americans to speak up and speak out against fraud and abuse.”
The theme for this year’s Older American’s Month is “Unleash the Power of Age!’ Since 1963, May has been designated as the month to appreciate and celebrate the vitality and aspirations of older adults and their contributions and achievements. At the event, numerous vendors will provide free information and services and fair participants will enjoy free health screenings, materials, entertainment and refreshments provided by various community partners. WFAA anchor Gloria Campos is the event’s special guest, and Dallas County Sheriff Lupe Valdez will join U.S. Attorney Saldaña and Ms. Harkins as other honored guests.
Brothers Plead Guilty to Armed Bank Robbery, Assault on A Federal Officer and Related Firearms OffensesRead the Press Release
DALLAS — This afternoon, Johnny Charles Butler, 45, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to two counts of armed bank robbery, one count of assaulting a federal officer and one count of using and carrying a firearm during and in relation to a crime of violence. His brother, James Robert Cleveland Butler, 44, pleaded guilty in February 2013 to two counts of armed bank robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possession of a firearm in furtherance of a crime of violence. Both have been in custody since their arrest in August 2012 at their residence in Quinlan, Texas. 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 agreements, the parties agree that the appropriate term of imprisonment is 35 years in federal prison for Johnny Charles Butler and 25 years imprisonment for James Robert Cleveland Butler.
According to documents filed in the case, both Johnny Butler and James Butler admitted committing the armed, takeover-style robberies of Bank of America, 100 West Highway 80, Forney, Texas, on November 25, 2011 and May 18, 2012.
Johnny Butler also admits firing three shots from a .357 caliber pistol at SWAT agents while they were attempting to execute a federal search warrant at his Quinlan residence on August 2, 2012.
The investigation was conducted by the Safe Street Violent Crime Task Force of the FBI. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson.
Youth Minister at Fifth Street Baptist Church in Levelland, Texas, in Federal Custody for Attempted Enticement of A MinorRead the Press Release
Defendant Also Worked at First Baptist Church in Lubbock, Texas
LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, made his first appearance in federal court in Lubbock, Texas, this morning, before U.S. Magistrate Judge Nancy M. Koenig, following his arrest on a federal complaint charging attempted enticement of a minor. He was ordered detained, pending a detention hearing set for May 15, 2013. Today’s announcement was made by U.S. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Fortner is a youth minister at the Fifth Street Baptist Church in Levelland, Texas, and he also works at the First Baptist Church in Lubbock, in its publications and graphics department.
According to the affidavit filed in the case, a detective with the Lubbock Police Department (LPD), working in an undercover capacity and posing as a 15-year-old female, “Katy,” encountered an individual via the Internet, later identified as Fortner, who purported to be a 26 year-old married male. “Katy” provided Fortner a telephone number and a new email address and Fortner began sending “Katy” text messages from his cellphone. On May 7, 2013, Fortner sent “Kay” an image of his facial profile as well as a sexually-explicit image. Fortner sent sexually explicit text messages to “Katy,” and ask “Katy” to send him a “dirty pic.” Fortner was arrested by the FBI and LPD on May 8, 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 Life in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Justin Cunningham is prosecuting.
More Defendants Sentenced in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Today, another four 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 in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Dock Buckaloo, 39, sentenced to 100 months
- Clinton Dois Clark, 34, sentenced to 100 months
- Andrew Spears, 25, sentenced to 60 months
- Marty Danelle Thomas, 27, sentenced to 46 months
Buckaloo, Clark and Spears each pleaded guilty to one count of conspiracy with intent to distribute and to distribute methamphetamine; Thomas pleaded guilty to one count of being a felon in possession of a firearm.
Buckaloo admitted that on multiple occasions between February and August 2012, he acquired pound and multi-pound quantities of methamphetamine from supply sources, including co-defendant Sergio Arias, and delivered pound and multi-pound quantities of methamphetamine to customers, including co-defendant Steve Ysasaga.
Clark admitted that on multiple occasions between May and July 2012, he received quantities of methamphetamine from Ysasaga. Specifically, during this period, Clark purchased half-ounce quantities of methamphetamine for $600 every day, for three weeks, from Ysasaga. Clark, however, fell behind in paying Ysasaga, and by mid July 2012, he owed Ysasaga approximately $1600. In late July, Clark burglarized a house in Throckmorton County and stole three firearms, which he gave to Ysasaga to try to pay off the $1600 drug debt.
Spears admitted that he received methamphetamine from Ysasaga, which he delivered to customers in the Wichita Falls area. When a state search warrant was executed as his residence in November 2011, officers recovered digital scales and methamphetamine.
In August 2012, when the manager for a hotel in Wichita Falls was inspecting unoccupied rooms, he found Thomas in one of the rooms which was supposed to be vacant. The manager called the police, who discovered that Thomas, a twice-convicted felon, had a .45 caliber semi-automatic pistol in her possession.
Last Friday, May 3, 2013, the following five defendants, who pleaded guilty to their respective roles in the conspiracy, were sentenced by Judge O’Connor as follows:
- Franklin D. Hubbard, 49, sentenced to 60 months
- Tommy James Vasquez, 39, sentenced to 70 months
- Brandi Kay Jennings, 38, sentenced to 96 months
- James Allen Stafford, 44, sentenced to 120 months
- Jesse Carl Langford, 36, sentenced to 137 months
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 15 defendants have been sentenced. The cases against two of the defendants have 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.
Dallas Woman Sentenced to 78 Months in Federal Prison and Ordered to Pay Approximately $3.43 Million in Restitution for Embezzling from Women’s Southwest Federal Credit Union (WSFCU)Read the Press Release
Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU
DALLAS – Theresa Portillo, 44, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 78 months (six and one-half years) in federal prison and ordered to pay $3,431,000 in restitution, following her guilty plea in January 2013 to a felony Information charging one count of embezzlement of funds from a credit union. Portillo voluntarily agreed to forfeit nine parcels of real estate in the Dallas-Fort Worth area, a time share in Cabo San Lucas, Mexico, and personal property including diamond jewelry and four luxury watches. Judge Lynn ordered that Portillo surrender to the Bureau of Prisons on July 16, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
At this morning’s sentencing hearing, the former Chairman of the Women’s Southwest Federal Credit Union (WSFCU) testified that Portillo’s embezzlement scheme caused the credit union to become insolvent and bankrupt. She further explained that the unique mission of the WSFCU was to provide financial assistance to low income women, and that as a result of the scheme, the credit union failed and is no longer available to help poor women in need of financial aid.
According to documents filed in the case, from 2001 to October 2012, while employed at the WSFCU, including the time she served as its Chief Executive Officer, Portillo used deception to fraudulently obtain at least $3,421,000 from 18 different financial institutions in connection with her sale of several certificates of deposits (CDs). She used online services to contact several financial institutions interested in purchasing CD accounts at the credit union.
When a financial institution was willing to purchase a CD, Portillo gave the financial institution wiring instructions to send the purchase funds to a JP Morgan Chase account in the name of the credit union. Portillo used this Chase account to conceal the embezzlement because she knew that credit union officials thought the account was inactive; the account wasn’t recorded on the credit union’s general ledger; and she had sole control of the account. Portillo also concealed her theft of stolen credit union funds by opening a separate credit union account using a false and fictitious name. Portillo avoided detection of the scheme by writing checks using this fictitious name to disburse stolen credit union funds.
After the financial institutions wired funds into the Chase account, Portillo fraudulently disbursed and used these embezzled and stolen credit union funds to purchase motor vehicles, real property and jewelry for her personal use, as well as for family and friends. She also used embezzled funds to pay credit card bills; fund many vacations throughout the U.S., Mexico and Europe; pay family medical expenses; and remodel houses.
The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis prosecuted.
Owner of Gemstar Capital Group Private Equity Company Sentenced to 120 Months in Federal Prison for Role in $40 Million Ponzi SchemeRead the Press Release
Defendant Jeffrey J. Sykes Also Ordered to Pay Nearly $17 Million in Restitution
FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernadino County, California, was sentenced this morning by U.S. District Judge John McBryde to 120 months in federal prison and ordered to pay $16,867,037 in restitution, following his guilty plea in January to two counts of securities fraud stemming from a Ponzi scheme he ran. Sykes, who was the owner of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company, was ordered to surrender to the Bureau of Prisons by May 24, 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, Sykes owned and operated Gemstar out of Redlands, California. In 2006, Sykes and “M.K.,” of Westlake, Texas, met at a golf tournament. Sykes told M.K. that Gemstar was a venture capital company interested in investing in emerging growth companies and that Gemstar was looking to supplement its planned venture capital operations by engaging a brokerage firm to assist it in buying and selling U.S. Treasury Bills (T-Bills).
M.K. asked Sykes whether he could participate, and in April 2007, Sykes and M.K. entered into an agreement in which M.K. solicited investors to participate in the T-Bill trading program described by Sykes. The next month, M.K. formed a limited liability company, known as KCG, and began to solicit investors. Using information Sykes provided, M.K. secured approximately 37 investors who invested more than $20 million. M.K. sent the money, minus fees he withheld for himself, to Gemstar to be invested by Sykes. However, unbeknownst to the investors, neither KCG nor Gemstar was engaged in any T-Bill trading program at the time of M.K.’s solicitations.
In addition to the funds that M.K. raised, Sykes personally raised more than $20 million from investors by making representations about a T-Bill trading program that were materially false or omitted material facts. In fact, none of the money was invested in a T-Bill trading program. Instead, Sykes and M.K. used some of the money for personal expenses. Some of the money was invested in ventures that the investors were unaware of and had not given their consent to participate in. Some of the money was returned to investors, although in some cases, Sykes falsely claimed that the funds represented the return of capital and/or profits from the T-Bill trading program.
Although Sykes used some of the investments he received for personal expenses, to pay partners, and for other purposes, he held a large portion of the invested funds in low-risk money market accounts. Because a substantial portion of investor funds were held in these accounts, investors were able to recover some of their investments.
Accounting for payments made to investors during the course of the scheme and money returned to investors after the termination of the scheme, investors collectively lost approximately $16,867,037. This amount includes losses incurred by the investors solicited by M.K., whose funds he subsequently sent to Sykes after taking a fee for himself.
The two counts of securities fraud to which Sykes is pleading specifically stem from false Gemstar account statements that Sykes used to deceive investors about the value of their investments.
This prosecution is in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov/.
The case was investigated by the U.S. Postal Inspection Service and the FBI.
Dallas County Man Charged in Federal Complaint with Unlawfully Entering Restricted Area of Dallas Love Field AirportRead the Press Release
DALLAS — Ruben Jimenez Martinez, 36, of Garland, Texas, appeared in federal court this afternoon, before U.S. Magistrate Judge Irma C. Ramirez, on a federal criminal complaint stemming from his unauthorized entrance into a restricted area of Dallas Love Field Airport on Sunday evening, April 28, 2013. He was ordered detained. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the felony complaint charges Jimenez with entering aircraft or an airport area in violation of security requirements. The offense as charged, upon conviction, carries a maximum statutory penalty of up to 10 years in federal prison and a $250,000 fine.
According to the complaint filed, Jimenez, driving a 2007 Chevrolet Tahoe, pulled onto the Dallas Love Field Airport property where private aircrafts are housed. Jimenez approached the gate of a general aviation aircraft business and began pressing buttons on the gate’s access pad. While an employee opened the gate to engage Jimenez through the vehicle’s window, another employee parked his company SUV on the air operations side of the gate to prevent unauthorized vehicles from entering the restricted area. As that employee began to open the door of his vehicle, Jimenez evaded the vehicle and maneuvered around it at a high rate of speed.
Jimenez proceeded onto and down Taxiway Alpha at speeds estimated to be in excess of 100 miles per hour. The business’s employees were unable to catch up with Jimenez and requested assistance. Jimenez’s Tahoe was ultimately located at Associated Air Hanger 3. Jimenez walked through the hanger and, when officers with the Dallas Police Department arrived and cuffed him, he attempted to break free and additional officers arrived to assist in restraining him. Jimenez was arrested and agreed to speak to law enforcement. He advised that he believed God had directed him to Dallas Love Field and, that while he was in the hanger, he yelled “in the name of Jesus” three times.
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. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty.
The matter is being investigated by the FBI, the Transportation Security Administration, the Federal Air Marshal Service and the Dallas Police Department.
Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Dallas Residents, Affiliated with Bridgemark Investment Group, Plead Guilty to Roles in Mortgage Fraud ConspiracyRead the Press Release
Fraud Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — On the day before their trial was to begin in federal court, Dallas residents, Eric Damon Johnson and Tracie Elaine Stenson, pleaded guilty to their roles in a mortgage fraud conspiracy that they ran in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson, 51, pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. According to the terms of his plea agreement, the government agreed to recommend a sentence of not more than 48 months; that recommendation, however, is not binding upon the Court. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson, 50, pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. According to the terms of her plea agreement, and if the Court accepts the terms of that plea agreement, the parties agree that a sentence of no more than 84 months in custody is the appropriate disposition of the case. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case is being prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl are in charge of the prosecution.
Amarillo Anesthesiologist Arrested on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — Edgar A Lockett, Jr., was arrested yesterday on felony charges outlined in a federal indictment returned by a federal grand jury earlier this month, and just unsealed, charging tax evasion. Lockett made his initial appearance this morning before U.S. Magistrate Judge Clinton E. Averitte, who remanded him into custody pending further proceedings set for this Thursday, May 2, 2013, at 9:30 a.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the indictment, Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Currently, according to the indictment, Lockett bills under the name of Medical & Health Alliance Ministries.
The indictment alleges that Lockett has not filed income tax returns since 1999, except for a joint returned filed with his spouse for tax year 2007. The indictment alleges that for tax years 2000 through 2010, Lockett owes the United States $1,432,740 in unpaid income taxes.
According to the indictment, Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
A federal indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Lockett is charged with six counts of tax evasion, and if convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.
The investigation is being conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christy Drake is in charge of the prosecution.
Dallas County Man Arrested and Charged in $3.5 Million Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of Duncanville, Texas, was arrested this morning by federal agents on felony charges, outlined in an indictment returned by a federal grand jury in Dallas last week and unsealed today, stemming from his alleged role in a multi-million dollar staged accident fraud scheme. Nelson made his initial appearance this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered him detained pending a detention hearing set for Wednesday at 2:00 p.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the indictment charges Nelson with six counts of mail fraud and six counts of engaging in illegal monetary transactions.
The indictment alleges that from at least 2005, Nelson, aided and abetted by others, devised a scheme to defraud multiple insurance companies by submitting false claims for fictitious automobile accidents. As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they damaged a piece of equipment that was on the road or that was being hauled by a trailer. Nelson provided scripts to these individuals that instructed them on how to report the damage to their insurance company.
Nelson fabricated the written claims and submitted them to insurance companies. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” The claims would include a fictitious repair estimate and a photograph of the equipment. The claimed repair expenses would usually be from $16,000 to $19,000.
When insurance companies paid the claims, checks would be mailed to an address that Nelson provided. He directed the insurance companies’ checks to either warehouses he owned in Duncanville or to private mail boxes he had opened in Minnesota, Missouri, Mississippi, Washington, Arizona, Connecticut and Louisiana. After establishing the mail boxes, Nelson directed that the mail be forwarded to his address on Explorer Street in Duncanville.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the mail fraud counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine; each of the engaging in an illegal monetary transaction counts carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. In addition, restitution could be ordered. The indictment also includes a forfeiture allegation, which would require Nelson, upon conviction, to forfeit to the government proceeds traceable to the property as well as seven vehicles, including two Mercedes, a motor home, a boat and his residence on Explorer Road in Duncanville.
The investigation is being conducted by the FBI, Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Lubbock Man Charged in Federal Complaint with Robbing Credit UnionRead the Press Release
LUBBOCK, Texas — Jeffrey Hensley, 42, of Lubbock, Texas, was arrested and charged in a federal criminal complaint with robbing the Alliance Federal Credit Union in Lubbock. Hensley is set for an initial appearance tomorrow morning in Amarillo, Texas, before United States Magistrate Judge Clinton Averitte. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed, on September 14, 2012, Hensley entered the First United Bank in Lubbock and presented a note to the teller that stated, “DON’T MAKE ME SHOW MY WEAPON.” The teller gave the money to Hensley, who put the money in a black bank bag, and he exited the bank.
On December 8, 2012, Hensley entered the Plains Capital Bank in Lubbock and walked up to the teller carrying a dark-colored bank bag. He handed the teller a note that stated, “Fill the bag with all the money in the drawer – if I have to show my weapon i will use it – you have 15 seconds!!” The teller handed Hensley a stack of bills and he took the cash and exited the bank.
On February 13, 2013, Hensley entered the Alliance Federal Credit Union in Lubbock, walked up to the teller and handed the teller a note and a pink-colored small cosmetic bag. The teller handed the bills to Hensley and he exited the bank. He was observed by a witness driving out of the bank parking lot in a small to mid-size white sport-utility vehicle.
On February 14, 2013, law enforcement authorities received a tip that an individual matching the description of the bank robber was named Jeff, and that he lived in an apartment at 1907 66th Street in Lubbock and drove a white sport-utility vehicle. Another tip was received on March 6, 2013, from an individual that stated the bank robbery suspect was named Jeffrey and that he drove a white four-door older model Toyota 4 Runner and lived in a house at 8608 Avenue X. A subsequent investigation revealed that Hensley resided in an apartment at 1907 66th street before moving to 8608 Avenue X. On April 22, 2013, a federal search warrant was executed at Hensley’s residence and he was arrested. Afterwards, according to the complaint, Hensley admitted to robbing the three banks in Lubbock.
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. If convicted of this offense, however, Hensley faces a maximum statutory penalty of not more than 20 years in federal prison, and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
This case is being investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Lubbock Police Department, and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Kaufman County Man Admits Possessing and Transporting Child PornographyRead the Press Release
Defendant Faces 30 Years in Federal Prison
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, appeared Friday in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. According to the terms of the plea agreement, if the Court accepts the plea, the parties agree that the appropriate term of imprisonment is 30 years in federal prison. Johnson, who has been in custody since his arrest in February 2013 on a related federal criminal complaint, also faces up to a $500,000 fine and a lifetime of supervised release. Sentencing is set for August 2, 2013, before Judge Fitzwater. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI is in charge of the investigation; Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Dallas-Area Lawyer Pleads Guilty to Felony Offense of Covering up Bank FraudRead the Press Release
DALLAS — Jerry Goh, 50, a resident of Allen, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging him with one count of misprision of a felony, stemming from his involvement in a loan fraud scheme in 2007. Goh, a lawyer with offices in the Dallas-Fort Worth metroplex, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for August 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Two defendants also charged in the case, Plano, Texas, residents Vathany Theng and Lina Ma, have pleaded guilty to their roles in the fraud and are awaiting sentencing. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov/.
The case was investigated by the U.S. Small Business Administration – Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Tax Preparer Sentenced to 30 Months in Federal Prison for Preparing Fraudulent ReturnsRead the Press Release
Defendant Operated “Instant Tax Services” in Dallas
DALLAS — George Chukwuka Chima was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 30 months in federal prison and ordered to pay $776,341 in restitution, following his guilty plea in December 2012 to one count of aiding and assisting in the preparation of fraudulent federal income tax returns. Judge Fitzwater ordered that Chima, who has been on bond, surrender to the Bureau of Prisons on June 4, 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, Chima, a resident of Irving, Texas, operated a tax service business under the name “Instant Tax Services,” in Dallas. When Instant Tax Services prepared federal tax returns, Chima placed, or caused others to place, false and fraudulent claims for the First Time Home Buyer Credit (FTHBC) and Fuel Tax Credit (FTC) on numerous returns in order to fraudulently obtain refunds from the Internal Revenue Service (IRS). Chima admitted that he caused tax returns to include these false FTHBC and FTC credits that were completely fictitious and fraudulent, resulting in refund and credit overpayments by the IRS and unearned and fraudulent tax preparation fees paid to Chima.
Chima admitted, according to the factual resume, that from January 1, 2009, through April 15, 2010, he electronically filed, and caused others to electronically file, a total of approximately 795 individual income tax returns with the IRS. Of that number, approximately 505 contained fraudulent and false information, which caused a total loss to the IRS of approximately $776,341.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
Pilot and Passenger Arrested and Charged with Possession with Intent to Distribute MarijuanaRead the Press Release
CBP Air Interdiction Met Plane When it Landed in Lubbock
LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, have been arrested and charged in a federal criminal complaint with possession with intent to distribute marijuana. Both men, residents of San Francisco, California, made their initial appearance in federal court this afternoon, before U.S. Magistrate Judge E. Scott Frost, who ordered them detained pending hearings set for next Wednesday, April 24, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed, law enforcement received intelligence that Gallanter filed a flight plan from Northern California to Atlanta, Georgia. Gallanter traveled as the pilot along with passenger Wynne-Wade on a Piper PA28-181 aircraft; the aircraft appeared to have been rented by Gallanter. The aircraft departed California on April 17, flew to the Page, Arizona, area to refuel and arrived at the Lubbock Aero airport at approximately 10:00 p.m. to again refuel.
U.S. Customs and Border Protection (CBP) Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. The plane was then searched by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and CBP Air Interdiction, as well as officers with the Lubbock Police Department (LPD) and the LPD’s canine unit. Several duffel bags that contained approximately 98 bundles of marijuana, four bundles of hash and two bundles of mushrooms, containing Psilocin or Psilocybin, were located in a compartment near the rear of the aircraft.
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 for the charged offense is up to 20 years in federal prison, a fine not to exceed $1,000,000 and a term of supervised release of at least three years up to life.
The investigation is being conducted by ICE HSI, CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Ranking Member of Mexican Mafia, Who Supplied Methamphetamine from Lubbock to San Angelo, Is Sentenced to 30 Years in Federal PrisonRead the Press Release
SAN ANGELO, — Eric Cortez Flores, 32, a ranking member of the Mexican Mafia, was sentenced today by U.S. District Judge Sam R. Cummings to 360 months in federal prison, following his guilty plea in November 2012 to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Flores was the Mexican Mafia’s methamphetamine supplier from Lubbock to San Angelo, Texas.
According to documents filed in the case, in February 2011, agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), received information that a known narcotics trafficker would be traveling to San Angelo from Del Rio, Texas. The investigation revealed that this individual went to Eric Cortez Flores’ residence on Montague in San Angelo. In addition, on several occasions, law enforcement officers encountered individuals with methamphetamine who were connected with Flores and learned that Flores’s mother’s residence on Oaklawn in San Angelo reportedly served as a stash house for Flores’s methamphetamine.
On February 22, 2012, law enforcement executed a search warrant at Flores’s residence. That search yielded: a plastic bag containing suspected methamphetamine residue, which was located next to the toilet; methamphetamine residue next to the toilet; approximately $96,000 in cash; a semi-automatic pistol; approximately 25 wrappings similar to those typically used to package large amounts of methamphetamine; and a suspected drug ledger.
Flores admitted that he had flushed an ounce or less of methamphetamine down the toilet before law enforcement arrived. He also stated that he had approximately $70,000 in his house that was drug sales proceeds from the past 18 months and that he’d distributed approximately one pound of methamphetamine every two weeks during that time period. He stated that his methamphetamine was from Mexico, but he refused to provide his supplier’s name. Flores also stated that the wrappings found in his backyard and bedroom contained one pound of methamphetamine each and he admitted that he knew the firearm was in his house.
The investigation was conducted by ICE HSI, the FBI, the Texas Department of Public Safety, the Tom Green County Sheriff’s Office, and the San Angelo Police Department. Assistant U.S. Attorney Jeffrey R. Haag prosecuted.
Brownwood, Texas, Man Sentenced to 87 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
SAN ANGELO, Texas — Brian Bernard Willin, 48, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison and 10 years of supervised release following his guilty plea in November 2012 to one count of receipt of child pornography and aiding and abetting, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Willin was also ordered to pay $150,000 restitution to an individual who was depicted in an image Willin possessed.
Willin was indicted in August 2012 on four counts of receiving child pornography, one count of transporting child pornography and one count of possessing child pornography. According to plea documents filed in the case, Willin admitted that he used a peer-to-peer file-sharing program that he had installed on his computer to download and view several images depicting minors engaging in sexually explicit conduct. He saved some of the material on his computer and onto a DVD.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab "resources."
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office.
More Defendants Sentenced for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced today, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
William Corey Peeler, 33, was sentenced to 162 months in federal prison; Cleveland Wilson, 52, was sentenced to 160 months in federal prison; and Nancy Arlene Freeman, 39, was sentenced to 65 months in federal prison.
Peeler and Wilson each 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. Freeman pleaded guilty to one count of possession with intent to distribute methamphetamine.
This is the second group of convicted defendants to be sentenced in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas. Late last month, Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison. The cases against two of the defendants have not been resolved. All 30 of the defendants charged in the superseding indictment that was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Peeler admitted that on numerous occasions between August 2011 and September 4, 2012, he sold quantities of methamphetamine, which defendant Steve Ysasaga supplied, to customers in the Wichita Falls area. On one occasion, according to Peeler, Ysasaga brought nine ounces of methamphetamine, a digital scale and small plastic bags to Peeler’s apartment where Ysasaga weighed and repackaged it. Ysasaga gave Peeler one gram of the methamphetamine for allowing him to use his apartment. Peeler also admitted that on various occasions during the conspiracy he accompanied Ysasaga to assist him in collecting drug debts by intimidating the debtors.
Wilson admitted that on multiple occasions between August 2011 and August 2012, he manufactured, or cooked, anhydrous methamphetamine for Ysasaga. Ysasaga supplied the pseudoephedrine tablets and Wilson obtained the rest of the necessary ingredients to manufacture the methamphetamine.
When officers with the Wichita Falls Police Department executed a traffic stop on Freeman’s vehicle in a convenience store parking lot on May 8, 2012, a drug-detecting canine alerted to the presence of narcotics on a backpack that she had placed in the back seat. Officers search the backpack and located 10 small plastic bags containing methamphetamine and two digital scales. She admitted that she possessed the methamphetamine to distribute it at a later time.
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.
Abilene, Texas, Resident Faces up to 10 Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — John Brandon Rice, 25, most recently a resident of Abilene, Texas, appeared in federal court in Lubbock yesterday and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of failing to register as a sex offender. Rice, who is in custody, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Rice was sentenced in California for the felony sex offense of unlawful sexual intercourse and was sentenced to a three-year term of probation with a condition that he serve 180 days in jail. In May 2010, the probated sentence was terminated and a state prison term of 32 months was imposed. As a result of this conviction, Rice was required under California law to register as a sex offender for life.
In June 2012, Rice began residing in Abilene and working as a landscaper and for a roofing business. Rice admits that he knowingly failed to register and update his registration as a sex offender because he had an outstanding parole warrant from California and he did not want them to know where he was. Under the Sex Offender Registration and Notification Act (SORNA), persons who are required to register as sex offenders are required to register within three days of moving from one state to another.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
vLubbock Man Admits Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Njeazeh Roderigue Ambeabet, 24, of Lubbock, appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Ambeabet faces a statutory sentence of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Ambeabet has been in custody since his arrest in February 2013.
According to documents filed in the case, last year, Ambeabet met an 11-year-old girl online and engaged in a texting relationship with her, frequently asking her to engage in sexual relations with him. He admitted that he was well aware of her age, and that he received sexually explicit images of her that were taken with her cell phone at his request.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former NFL Player Sam Hurd Pleads Guilty to Role in Cocaine and Marijuana Distribution ConspiracyRead the Press Release
DALLAS — Samuel George Hurd, III, 27, appeared in federal court this afternoon and pleaded guilty, before U.S. District Judge Jorge A. Solis, to a superseding indictment charging conspiracy to possess with intent to distribute a controlled substance, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. There was no plea agreement between Hurd and the government; Hurd’s trial was to have begun on Monday, April 15, 2013.
That superseding indictment, which was returned by a federal grand jury on March 19, 2013, alleged that from July 2011 to on or about June 6, 2012, Hurd conspired to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. The superseding indictment also includes a sentencing notice stating that on or about June 6, 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.
Two co-defendants, Toby Lujan and Jesse Tyrone Chavful, have pleaded guilty to their roles in the drug conspiracy and are awaiting sentencing. Both are in federal custody.
Hurd, who has been in federal custody since late August 2012, faces a statutory penalty of not less than 10 years and up to life in federal prison and up to a $10 million fine. Sentencing is set for July 10, 2013.
The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Denton Police Department. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Errin Martin are prosecuting.
Dallas Men Indicted on Conspiracy, Kidnapping and Firearms ChargesRead the Press Release
Defendants Planned to Sell Victim into Sex Slavery
DALLAS — A federal grand jury returned an indictment yesterday charging Steric Paul Mitchell, 43, and Gregory Steven Hunt, aka “K.C.,” 40, with conspiracy, kidnapping and firearms charges stemming from their kidnapping last year of a female victim whom they planned to sell into sex slavery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The two men, both residents of Dallas, are currently in state custody. A date has not been set for them to make their initial appearance in federal court before a U.S. Magistrate Judge.
Specifically, the indictment charges each defendant with one count of conspiracy to commit kidnapping, one substantive count of kidnapping and one count of using, carrying and brandishing a firearm during and in relation to a crime of violence. In addition, defendant Mitchell, a convicted felon, is charged with possessing four firearms.
The indictment alleges that in early May 2012 an individual tells the victim in this case that she has a “good friend” who wants to hire a private dancer for a party and that the men are “safe.” At a hotel in Dallas, this individual introduces the victim to defendant Hunt, who pays the individual and then drives the victim to an abandoned house in Dallas, where defendant Mitchell was waiting. Mitchell hired Hunt to pick up the victim at the hotel and transport her to another location under the ruse that Hunt was taking her to a private party, when, in fact, Hunt and Mitchell planned to kidnap and sexually assault her.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle and put her in the backseat. The next day, Mitchell drove the victim to another house in Dallas, where he carried her inside and raped her. Afterwards, Mitchell contacted an unknown individual and negotiated the sale of the victim. He told the victim that he was going to sell her into sex slavery and then drugged and bound her again. He again wrapped her in a bed sheet, put her in the backseat of a vehicle and drove her to a house in Duncanville, Texas, where he sexually assaulted her.
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 conspiracy and kidnapping counts each carry, upon conviction, a maximum statutory penalty of life in prison. The using, carrying and brandishing a firearm count carries, upon conviction, a mandatory consecutive sentence of at least seven years in federal prison. The felon in possession count carries, upon conviction, a statutory penalty of not less than 15 years in federal prison. Each count, upon conviction, also carries a statutory maximum fine of $250,000.
The investigation was conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Duncanville Police Department. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
Federal Grand Jury Indicts Texas Man for Mailing Threats to Law EnforcementRead the Press Release
DALLAS — A federal grand jury returned an indictment today charging Jesse Brister, aka “Bozo,” with two counts of mailing threatening communications to law enforcement, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Brister, 27, of Conroe, Texas, is presently in custody in the Texas prison system, in New Boston, Texas, in an unrelated case. A date has not yet been set for him to make his initial appearance before a U.S. Magistrate Judge in federal court in Dallas.
“Based on the serious nature of the threats in these letters, resources were diverted from important investigations, such as those in Kaufman County, to investigate these threats, which ultimately proved to be hoaxes,” said U.S. Attorney Saldaña. “Such threats cause significant diversions of law enforcement resources and result in substantial disruption of public services. They will be prosecuted to the fullest extent of the law.”
The indictment alleges that on two occasions, on or about March 21, 2013, and on or about March 28, 2013, Brister mailed a communication, addressed to the U.S. Attorney in Dallas, that contained a threat to injure someone in retaliation for the prosecution of members of the Aryan Brotherhood of Texas.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies. Criminal Chief Assistant U.S. Attorney Chad Meacham is prosecuting.
McKinney, Texas, Man Faces 10 Years in Federal Prison for Trying to Meet A 14-Year-Old Girl at A Local Mall for SexRead the Press Release
DALLAS — Rodney Allen Thompson, 44, of McKinney, Texas, appeared today before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to one count of transferring obscene material to a minor. He faces a 10-year federal prison sentence, up to a $250,000 fine and a lifetime of supervised release. Thompson has been in custody since his arrest in December 2012. 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, Thompson admits that in December 2012, he communicated with “Jane Doe,” an individual he believed to be a 14-year-old girl, whom he friended via Yahoo! Messenger. Jane Doe was in reality an officer with the Garland Police Department, acting in an undercover capacity. Thompson admitted that he communicated with Jane Doe in a sexually explicit manner, indicating that he wanted to engage in sexual activity with her. Using his computer and cell phone, Thompson ultimately persuaded, or attempted to persuade, Jane Doe to meet him at a mall in Garland to engage in illegal sexual activity with him. He also admitted that he sent Jane Doe, via webcam, an obscene video of himself engaging in sexually explicit conduct. On December 13, 2012, Thompson drove to meet Jane Doe at the mall, as they had arranged, and was arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the Garland Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Amarillo, Texas, Orthodontist Sentenced to 50 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Dr. Michael David Goodwin Billed the Texas Medicaid Program at Least $2.6 Million for Services He Claimed He Provided
AMARILLO, Texas — Dr. Michael David Goodwin, 63, an orthodontist who practiced in Amarillo, Texas, and Crown Point, Indiana, was sentenced today by U.S. District Judge Mary Lou Robinson to 50 months in federal prison and ordered to pay $1,810,960 in restitution, following his guilty plea in December 2012 to one count of health care fraud related to the Texas Medicaid program. In addition, Goodwin must forfeit $1,558,911, which are the gross proceeds traceable to his offense, as well as more than $244,000 the government seized in May and July 2011 from his JP Morgan Chase accounts. Judge Robinson ordered that he surrender to the Bureau of Prisons on April 29, 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, from January 2008 through March 2011, Goodwin devised a scheme to defraud the Texas Medicaid program by billing the program at least $2,626,125 for services he claimed he provided, when in fact, as he well knew, some of the services were not medically necessary, or dental assistants provided those services when no dentist or orthodontist was present to supervise, and even when present, did not directly supervise or provide any services.
Goodwin practiced orthodontic dentistry approximately two weeks each month at Goodwin Orthodontics in Amarillo and approximately two weeks each month at his Indiana office. In order to maximize the number of Medicaid patients seen, on numerous occasions, Goodwin had his employees schedule more than 100 patients per day and intentionally schedule large numbers of Medicaid patients for days when Goodwin was scheduled to be out of town. To accommodate the large volume of patients, Goodwin directed dental assistants to perform impermissible acts, including comprehensive examinations, diagnoses and treatment planning for Medicaid patients when he knew that only licensed dentists were permitted to perform those acts.
Goodwin devised a generic treatment guideline for dental assistants to follow in treating Medicaid beneficiaries that included dental assistants making treatment decisions at most appointments, without Goodwin examining the patients; confirming or revising the diagnoses; or confirming or revising the treatment plans. Goodwin also caused his billing staff to falsely and fraudulent state on Medicaid claims that he was the performing provider for all services that had been impermissibly delegated to and performed by dental assistants.
In April 2009, Goodwin hired substitute general dentists to create the appearance of direct supervision of dental assistants when he was away from the office. These substitute dentists were not enrolled Medicaid orthodontic providers. These substitutes did not provide services to Medicaid beneficiaries, did not directly supervise the dental assistants who provided the services, and were not always present in the office for orthodontic procedures. Again, Goodwin caused his billing staff to falsely and fraudulently state on Medicaid claims that he was the performing provider for all services performed when he was out of town and dental assistants provided those services when a substitute dentist was present to supervise, but did not directly supervise or provide any services.
Goodwin also instructed his dental assistants to falsely and fraudulently indicate in the patient records that an “adjustment” was performed on every visit, except for the initial consult, when no such adjustment had been provided and when he knew this violated Medicaid Rules.
The case was investigated by the Medicaid Fraud Control Unit of Office of the Texas Attorney General and the FBI. Assistant U.S. Attorney Christy Drake and Special Assistant U.S. Attorney Sally Helmer were in charge of the prosecution, and Assistant U.S. Attorney Diane Kozub handled the forfeiture.
Fraudster Found Guilty of Investment Fraud Scheme While Awaiting Sentencing on A Prior Securities Fraud ConvictionRead the Press Release
DALLAS — Joshua Wayne Bevill, 33, of Dallas, was found guilty today in a bench trial, before U.S. District Judge Jane J. Boyle, on stipulated facts concerning crimes he committed while awaiting sentencing for a prior securities fraud conviction. Specifically, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Background: Between 2005 and 2008, Bevill, along with various associates, raised several million dollars from investors by selling them interests in supposed oil and gas development projects. However, Bevill was simply stealing the investors’ money rather than using it to earn profits in the oil and gas business. Bevill pleaded guilty to one count of securities fraud in January 2011, admitting that he defrauded numerous investors of more than $750,000. He was released pending sentencing and faces a maximum statutory penalty of five years for this offense.
While on this release and pending sentencing in that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners. Bevill contacted potential investors and sold them investments in a supposed oil and gas business. As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners. Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle.
Bevill faces a maximum statutory penalty of 30 years in federal prison for each of the four counts of conviction in this case and fines totaling $10,500,000.00. In addition, he will be required to forfeit $162,000. No sentencing date has been set in either of the cases.
These cases were prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz are in charge of the prosecution.
Former Garland High School Teacher Sentenced to Eight Years in Federal Prison for Possessing Child PornographyRead the Press Release
Willis Bassham Videotaped Himself Having Sexual Relations With a Student at the School
DALLAS — A former teacher at Garland High School, Willis Bassham, 40, formerly of McKinney, Texas, was sentenced Friday afternoon by U.S. District Judge Barbara M. G. Lynn to eight years in federal prison and a lifetime of supervised release following his guilty plea in December 2012 to an information charging one count of possession of child pornography. Bassham was remanded into federal 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, Basham admitted that he engaged in sexual acts and sexual conduct with three female minors who were students at the school where he was employed. He also admitted that he produced images and videos of two of the minors engaged in sexually explicit conduct. Bassham had videos on his cell phone of himself and one of the minors, then age 17, engaging in sexually explicit conduct. He also received pornographic images of one of the minors by copying the images from the minor’s cell phone memory card to his computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Developers Sentenced for Role in Failed $39 Million Commercial/Residential Real Estate Project in AustinRead the Press Release
DALLAS — Late yesterday, two developers who admitted conspiring to defraud U.S. Bank and Texas Capital Bank in connection with a $39 million construction loan for a commercial/residential development in Austin, Texas, were sentenced. U.S. District Judge Barbara M. G. Lynn sentenced Anirdh Sarwal, 39, to 57 months in federal prison and Fred Alden Yeo, 51, to 42 months in federal prison. In addition, Judge Lynn ordered that the two men pay $13,461,604 in restitution, jointly and severally with each other. Sarwal and Yeo, both residents of Austin, must surrender to the Bureau of Prisons by 2:00 p.m. on June 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each defendant pleaded guilty to one count of conspiracy to commit bank fraud, admitting that they conspired with each other from August/September 2008 until at least June 2010. Sarwal, the principal of East Avenue Office Holdings, LP, based in Austin, and Yeo, co-guarantor on the loan, entered into negotiations with the two banks to obtain $39 million in funding for the development of an eight-story office building located at 3300 North Interstate Highway 35 in Austin.
To obtain the $39 million loan, they knowingly submitted a fabricated bank statement to the banks that purported to show that Sarwal had more than $7 million in an investment account at Wells Fargo Bank. They submitted this statement knowing that both financial institutions wanted assurance that Sarwal and Yeo, as co-guarantors, collectively had at least $5 million in liquid assets at their disposal. In reality, however, no such Wells Fargo account existed, and the bank statement was a forgery. Sarwal and Yeo admitted that they submitted the false bank statement with the specific intent to defraud the banks.
Based in part on that fraudulent bank statement, U.S. Bank and Texas Capital Bank approved the $39 million construction loan and closed on the loan on December 30, 2008. Between January 2009 and June 2010, when the banks foreclosed on the loan, Sarwal and Yeo made more than $33 million in draws on that construction loan.
Evidence at sentencing also established that the fraud was more encompassing than the false bank statement on behalf of Sarwal. Among other things, in order to secure the loan, Sarwal and Yeo also falsely represented to the financial institutions that 53% of the office space had been leased when, in fact, only 12% had actually been leased to legitimate tenants. The fraud continued throughout the project, with both Sarwal and Yeo submitting fake invoices to justify large draws from the construction loan and by taking steps to obtain fake cell phone numbers for the nonexistent tenants.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.
The case was investigated by the United States Secret Service. Assistant U.S. Attorneys Nick Bunch and Steve Fahey were in charge of the prosecution.
Alleged Bank Robber, Who Was Apprehended by A Nearby Resident as He Fled the Scene, Is Ordered DetainedRead the Press Release
FORT WORTH, Texas — Leslie Nashon Slaton, 33, who has been charged in a federal criminal complaint with robbing the Commercial Bank of Texas last week in Bedford, Texas, appeared in federal court in Fort Worth today and was ordered detained by U.S. Magistrate Judge Jeffrey L. Cureton. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the case, on the afternoon of March 28, 2013, a man, later identified as Slaton, entered the Commercial Bank of Texas, located at 1716 Forest Ridge Drive in Bedford, wearing a dark colored hoodie, a bandanna over his face, gloves and brandishing a handgun. He ordered customers and several employees to the center of the lobby. He approached one teller and ordered her to give him all the money in her drawer, which she did. He then demanded money from a second teller. When that teller advised that she had no money, Slaton fled the bank, running into an adjacent neighborhood where he had parked his getaway car.
A neighbor saw Slaton running from the bank and deduced that he had robbed the bank. As Slaton drove away, that neighbor ran after the car to obtain the license number. At the next intersection, however, Slaton ran a stop sign and collided with another vehicle. The neighbor then ran up to the wreck, pulled Slaton from the vehicle and held him until police arrived. An officer with the Euless Police Department, who drove by the scene, stopped and handcuffed Slaton. Officers with the Beford Police Department then arrived and took Slaton into custody. The money stolen from the bank, as well as his disguise and a pellet gun that resembled a real firearm, were recovered from Slaton’s vehicle.
A federal criminal 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. If convicted of the offense of bank robbery however, Slaton faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the FBI and the Bedford Police Department.
Assistant U.S. Attorney Chris Wolfe is in charge of the prosecution.
Former Dallas Police Officer Pleads Guilty to Federal Tax OffenseRead the Press Release
DALLAS — Stephanie Barney appeared on Friday before U.S. Magistrate Judge David L. Horan and pleaded guilty to an information charging one count of making or subscribing a false income tax return. She faces a maximum statutory penalty of three years in federal prison and a $100,000 fine. In addition, according to the terms of the plea agreement, Barney agrees to pay restitution of up to $42,941 to the Internal Revenue Service (IRS). The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Barney admitted that in June 2007, while she was employed as an officer with the Dallas Police Department, she filed an amended joint tax return, for tax year 2006. She admitted that on that return, she claimed false medical deductions and falsely claimed a business loss that caused her to understate the amount of her taxable income.
Barney also admitted, according to the factual resume, that she filed similar false tax returns for tax years 2004 and 2005. When Barney was audited by the IRS in 2007, she provided the investigating revenue agent falsified checks and receipts in an attempt to fraudulently substantiate the questionable itemized deductions she had claimed on her 2006 tax return.
According to the factual resume, the tax loss is $42,941.58, representing the total losses for tax years 2004, 2005 and 2006.
According to an order setting conditions for her release, Barney is a resident of Dallas. A sentencing date has not yet been set.
The case is being investigated by IRS Criminal Investigation. Assistant U.S. Attorney Stephen P. Fahey is in charge of the prosecution.
Federal Jury Convicts Three in Health Care Fraud Scheme Stemming from Their Involvement in the Operation of Euless Healthcare Corp.Read the Press Release
Scheme Involved Nearly $3 Million in Fraudulent Billings
DALLAS — Following a seven-day trial, before U.S. District Judge David C. Godbey, a federal jury has convicted three defendants on health care fraud and related charges stemming from their involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston.
Specifically, defendants Godwin Umotong, 58, and Comfort Gates, 46, both of Houston, were each convicted on one count of conspiracy to commit health care fraud. In addition, Umotong was also convicted on five counts of health care fraud and Gates was convicted on two counts of health care fraud. Umotong was an employee of EHC and Medic; Gates was an employee of Medic. Defendant Vagharshak Smbatyan, 61, of Grenada Hills, California, was convicted on one count of making a false statement to a federal agency.
The conspiracy count and each of the substantive health care fraud counts carry a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution. The false statement count carries a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Judge Godbey set a July 15, 2013, sentencing date for all three defendants convicted today.
Ovsanna Agopian, the operator of both EHC and Medic, pleaded guilty in November 2012 to one count of conspiracy to commit health care fraud. Agopian, 58, is a resident of Houston; her husband is Vagharshak Smbatyan. Three other defendants charged in the case, Boghos Babadjanian, 55, of Sherman Oaks, CA; Leslie Omagbemi, 56, of Dallas, TX; and Munda Massaquoi, 69, of Houston, TX, also pleaded guilty to their roles in the fraud. All are awaiting sentencing.
According to documents filed in the case and evidence presented at trial, Agopian, Umotong, Omagbemi, Massaquoi and Gates conspired together to submit, or cause to be submitted, fraudulent claims to Medicare for diagnostic tests and office visits. Agopian recruited unlicensed doctors to work for EHC and Medic by telling them that they would treat beneficiaries in the beneficiaries’ homes. Medicare does not pay for services performed by unlicensed persons. Nevertheless, these recruits went to beneficiaries’ homes and purported to conduct medical examinations, including ordering diagnostic tests. In total, more than $2.7 million was fraudulently billed, and of that amount, Medicare paid more than $1.3 million.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Michael McCarthy and Michael Elliott are in charge of the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 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/.
Sherman, Texas, Man, Sentenced to 71 Months in Federal Prison for Transporting More Than 100 Kilograms of MarijuanaRead the Press Release
Defendant Arrested During a Traffic Violation Near Abilene, Texas
LUBBOCK, Texas — Brian Julian Gallardo, 22, of Sherman, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in December 2012 to one count of possession with intent to distribute 100 kilograms or more of marijuana, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallardo’s co-defendant in the case, Mark Dean Garrison, 48, of Denison, Texas, was sentenced on March 15, 2013, to 46 months in federal prison after he pleaded guilty to the same offense.
According to documents filed in the case, in late October 2012, a trooper with the Texas Department of Public Safety stopped a pickup truck, owned and driven by Garrison, for a traffic violation on Interstate 20 near Abilene, Texas. Gallardo was the only passenger in the truck, which was carrying several spools of barbed wire. After Garrison consented to a search of the truck, one of the troopers opened the inside of one of the spools of wire and detected the odor of marijuana. Further investigation revealed that the spools of wire contained 229 bricks of marijuana that weighed approximately 112 kilograms. Both Garrison and Gallardo were arrested and have been in custody since that time.
The case was investigated by the Texas Department of Public Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Bio-diesel Fuel Company Owner Sentenced to 188 Months in Federal Prison on Wire Fraud, Money Laundering and False Statements ConvictionsRead the Press Release
Jeffrey Gunselman Also Fined $175,000 and Ordered to Pay Nearly $55 Million in Restitution
LUBBOCK, Texas — Jeffrey David Gunselman, 30, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, fined $175,000 and ordered to pay $54,973,137 in restitution, following his guilty plea in December 2012 to an Indictment charging 51 counts of wire fraud, 24 counts of money laundering and four counts of making false statements in violation of the Clean Air Act. Gunselman has been in custody since July 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“I commend the excellent investigative work done by special agents and investigators with EPA’s Criminal Investigation Division and the U.S. Secret Service in this complex fraud case,” said U.S. Attorney Saldaña.
“Congress created the Renewable Fuel Standard to ensure that transportation fuel sold in this country contains a minimum amount of renewable fuel,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “Today’s judicial action demonstrates the consequences for exploiting the Renewable Fuels program in order to steal millions of dollars from customers and taxpayers.”
Gunselman was the owner of Absolute Fuels, LLC, dba Absolute Fuels, LLC (Absolute Fuels), which he formed in April 2009. He was also named as Governing Person and/or as Registered Agent for other business entities associated with Absolute Fuels, LLC, including Absolute Fuels, LLC; Absolute Milling, LLC; Ellipse Energy, LLC; 21 Investments, LLC; and YGOG Holdings, LLC. However, Gunselman admitted that these entities are solely alter egos of himself, as an individual, as he alone owns, manages, directs and controls each of them and each has no separate and distinct existence from him.
Gunselman admitted that from September 2010 to October 2011, he devised a scheme to defraud the Environmental Protection Agency (EPA) by falsely representing that he was in the business of producing bio-diesel fuel, yet Gunselman did not have a bio-diesel fuel-producing facility. Instead, Gunselman’s business operation consisted of falsely generating renewable fuel credits and selling them to oil companies and brokers. He instructed purchasers to wire payments to a bank account he solely controlled, and as a result, approximately $41,762,236 was deposited into that account.
From September 2010 to mid-October 2011, Gunselman conducted 51 fraudulent transactions, which were transmitted by wire communications, that represented to the EPA that bio-diesel fuel had been produced at the Absolute Fuels facility in Anton, Texas, when in fact, no bio-diesel fuel had been produced. This ultimately resulted in Gunselman requesting and receiving payments, by electronic funds transfer, of approximately $41,762,236.
Regarding the money laundering convictions, during the same time period, Gunselman engaged in monetary transactions in criminally derived property by purchasing real and personal property valued at approximately $12 million with the funds derived from the wire fraud. Included in that property are: several vehicles, including a Bentley, Mercedes-Benz, Lexus, Cadillac and Shelby Cobra; a Patton Military Tank; a Gulfstream airplane, professional basketball season tickets and corporate sponsorship; and agricultural, business and residential real estate.
The false statements convictions stem from Gunselman making material false statements to the EPA, falsely claiming and representing that bio-diesel fuel, a renewable fuel, had been produced, generating renewable fuel credits, when Gunselman well knew that no bio-diesel fuel had been produced.
The case was investigated by the EPA Criminal Investigation Division and the U.S. Secret Service.
Assistant U.S. Attorneys Paulina Jacobo and Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, were in charge of the prosecution. Assistant U.S. Attorney John J. de la Garza handled the forfeiture.
Plano Woman Sentenced to 30 Months in Federal Prison and Ordered to Pay Nearly $46,000 in Restitution in Tax CaseRead the Press Release
DALLAS — Harriet Mathita, who pleaded guilty in November 2012 to a superseding information charging conspiracy to defraud the U.S., through the Internal Revenue Service (IRS), by obtaining, and aiding to obtain, payments of false, fictitious and fraudulent claims, has been sentenced by U.S. District Judge Ed Kinkeade to 30 months in federal prison and ordered to pay $45,906 in restitution. Mathita has been in custody since her arrest in April 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In an indictment returned by a federal grand jury in Dallas in April 2012, Mathita and her alleged co-conspirator, Mary Ngacha, were each charged with one count of conspiracy to commit mail fraud and wire fraud. Ngacha was also charged with 10 counts of filing false claims against an agency of the U.S. and aiding and abetting. That indictment alleged that from January 2009 through December 2010, the women conspired to obtain substantial income tax refunds by submitting fraudulent income tax returns. The indictment also alleged that they were part of a conspiracy that obtained the names and social security numbers of persons on the Indiana sex offender registry, which was available to the public. According to the indictment, Ngacha allegedly filed false tax refunds claiming a total of nearly $3 million for tax years 2008 and 2009. Ngacha, who is on bond, is set for trial on June 10, 2013, before Judge Kinkeade.
According to the factual resume filed in the case, Mathita admitted that from December 2009 through June 2010, an individual, located in Dallas, mailed multiple federal tax returns to the IRS. These returns used stolen identification information and made false and fictitious claims for payment of tax refunds. Each return contained a false Form W-2 that reported significant, although fictitious, wages and withholding so as to result in a claim for a large tax refund. The returns directed the IRS to pay the refund either into a bank account or a physical address controlled by a conspirator.
The factual resume further states that three of these fraudulent tax returns directed the refund check to be delivered to the defendant’s address on Dartmouth Drive in Plano, Texas. In May 2010, a U.S. Treasury check in the amount of $45,206 was, in fact, delivered to Mathita’s address. Only one of the three fraudulent returns actually resulted in a refund check being mailed; the other refunds were not released by the IRS.
The investigation is being conducted by IRS-CI. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Law Enforcement Arrests Defendants Charged in Large Scale Drug ConspiracyRead the Press Release
WICHITA FALLS, Texas —All seven defendants charged in a federal indictment with conspiring to possess with intent to distribute methamphetamine and firearms offenses are in custody, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Of those seven defendants, four were arrested yesterday, one was previously arrested and is in federal custody, and two are in state custody in Wichita and Tarrant counties awaiting transfer to federal custody. All seven defendants will make appearances in federal court in Wichita Falls before U.S. Magistrate Judge Robert K. Roach today and either remain in custody or be released on bond.
Each of the below-named defendants charged in the indictment, which was returned by a federal grand jury in Fort Worth approximately two weeks ago and unsealed today, is charged with at least one count of conspiracy to distribute a Schedule II controlled substance, namely methamphetamine. In addition, some of the defendants are charged with firearms offenses.
- Anthony Rueben Johnston, 27
- Rachel Dawn Billen, 20
- Louis Griego, Jr., aka “Big Lou,” 44
- Janis Hernandez, 30
- James Allan Holley, aka “Jimmy Holley,” 33
- Darren Scott Murphy, Jr., 25
- Christina Gail Thompson, 31
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted however, each of the conspiracy counts and each of the substantive drug counts carry a maximum statutory sentence of not less than five years or more than 40 years in prison and a $5 million fine. The firearms offenses charged in Counts Two and Four carry a maximum statutory sentence of 10 years in prison and a $250,000 fine. The firearms offense charged in Count Three carries a statutory sentence of not less than five years and up to life in prison and a $250,000 fine. In addition, the indictment includes a forfeiture allegation which would require the defendants to forfeit to the U.S. all proceeds obtained as a result of their offense.
The Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Abilene Man Sentenced to 20 Years in Federal Prison for Throwing Molotov Cocktails onto Roof of Convenience Store That Resulted in Injury to His Ex-WifeRead the Press Release
ABILENE, Texas —Kenneth Mark McWilliams, 54, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 20 years in federal prison for throwing Molotov cocktails onto the roof of a convenience store in Abilene, that resulted in personal injury to his ex-wife when she ran out of the building and he shot and assaulted her. McWilliams, a resident of Abilene, has been in custody since his arrest following the incident in May 2010. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
McWilliams pleaded guilty in September 2012 to a superseding information charging one count of maliciously damaging a building by fire resulting in personal injury. According to documents filed in the case, on May 31, 2010, McWilliams went to Allsup’s Convenience Store, located on Ambler Avenue in Abilene, where his ex-wife was working, and parked his vehicle at the back of the store. Armed with Molotov cocktails, McWilliams lit two of them and threw both of them on the store’s roof. They ignited and started a fire on the roof that resulted in significant damage to the building.
McWilliams waited at the rear corner of the building until his ex-wife and another female employee left the burning building. When he saw his ex-wife, McWilliams fired one round from a .12 gauge shotgun at her, striking her. Both women ran and McWilliams caught up to his ex-wife and held her against her will, used a stun gun to shock her and tried to tie her with a rope. When officers with the Abilene Police Department arrived at the store, they saw McWilliams assaulting her. They subdued and restrained McWilliams.
McWilliams had several Molotov cocktails in his vehicle, and during a search of his residence, law enforcement found not only plastic and metal gasoline containers, but a diagram that indicated a plan that McWilliams would use to carry out his assault on the convenience store, his ex-wife and others who may have been present.
The case was investigated by the Abilene Police Department, the Abilene Fire Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Justice Department Transfers West Dallas Properties to Dallas Area Habitat for Humanity for Demolition and DevelopmentRead the Press Release
Properties Were Forfeited Following Successful Prosecution of the Gator Boyz Drug Trafficking and Criminal Street Gang
DALLAS — U.S. Attorney Sarah R. Saldaña and U.S. Marshal Randy Ely, of the Northern District of Texas, hosted an event this morning to transfer ownership, under a Justice Department program entitled, “Operation Goodwill,” of four forfeited properties on Life Avenue in West Dallas to the Dallas Area Habitat for Humanity for demolition and development. The properties were forfeited to the government as a result of the successful investigation, by the Dallas Police Department’s Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), of the violent drug trafficking and criminal street gang, known as the Gator Boyz, who bought and used these properties to traffic their drugs.
U.S. Attorney Saldaña and Marshal Ely were joined by Special Agent in Charge Robert Champion, of the Dallas ATF, and Dallas Police Chief David Brown in presenting a ceremonial deed of transfer to Mr. David W. McKeever, Jr., the Chief Financial Officer of Dallas Area Habitat for Humanity; Mr. Mike Rawlings, Dallas Mayor and Mr. Randy Skinner, Executive Director of Strategic Justice Initiatives.
Marshal Ely advised, “The United States Marshals Service is proud to partner with those in our community seeking to revitalize neighborhoods that have been affected by gang and drug-related crime. Through programs like Operation Goodwill, we are able to take the ill-gotten gains from this criminal activity and redirect them toward legitimate needs in our communities.”
“From the very beginning of this investigation, it was clear that we wanted to not only take these criminals, who were holding this neighborhood hostage, off the street, but take back this neighborhood for its residents so they could once again feel safe and secure,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department’s Gang Unit and ATF for their combined investigative efforts and all of those who worked tirelessly to see the properties transferred to Habitat for redevelopment.”
“At Dallas Habitat, one of our biggest goals is to revitalize, reclaim and reinvent entire neighborhoods, and that’s exactly what we are doing by getting rid of these properties,” said Mr. McKeever. “This neighborhood simply cannot move forward and improve until these out of place, run down drug houses are gone.”
The Gator Boyz, which was made up of members of both the Bloods and Crips, used drug proceeds to purchase houses, including these four properties on Life Avenue. This gang, not only dealt drugs from these properties, but further terrorized the neighborhood by walking an alligator on a leash down the street. Thanks to the tremendous efforts of the Dallas Police Department’s Gang Unit and ATF, approximately 304 grams of crack cocaine, 440 grams of marijuana and dozens of firearms were seized. In addition, approximately 20 gang members were convicted, including the gang’s leaders, brothers Patrick and Tyrone Weatherall, who are now serving 20 and 30-year federal prison sentences.
Dallas Habitat recognizes its longtime partner, Republic Title, for their research and time commitment in making these property transfers possible.
Since 1986, Dallas Habitat has served more than 1,200 low-income families, in more than 25 neighborhoods, using affordable homeownership as an anchor for hope, change and stabilization. Dallas Habitat believes that hard-working individuals and families be provided the opportunity to live in thriving neighborhoods where hopes and dreams are realized. For more information on Dallas Area Habitat for Humanity visit http://www.dallasareahabitat.org.
Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced on Friday, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison.
These are the first sentencings in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas and will be sentenced during the next few months. The cases against two of the defendants have not been resolved. All 30 of the defendants who have been charged in the superseding indictment, which was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Ezell admitted that on multiple occasions in 2011, he manufactured, or cooked, anhydrous methamphetamine for co-conspirator Steve Ysasaga. Ysasaga supplied the pseudoephedrine tablets, a necessary ingredient to manufacture methamphetamine, and Ezzell obtained the rest of the ingredients necessary to manufacture the methamphetamine. Each “cook” involved a minimum of 20 boxes of pseudoephedrine and yielded approximately 40 grams of methamphetamine.
In addition, according to documents filed in the case, when a state narcotics search warrant was executed on December 5, 2011, at 12570 FM 171 in Wichita Falls, Ezzell and co-conspirators James Allen Stafford and Diana Gail Hassell were present on the property when agents discovered a clandestine methamphetamine laboratory in operation.
Haney, whose primary role in the drug distribution conspiracy was as an enforcer, admitted that he accompanied Ysasaga to assist him in collecting a drug debt from a debtor by use of violence and intimidation. Haney also admitted that on numerous occasions in 2011, he received one-to two-ounce quantities of methamphetamine from Ysasaga and that he received at least 12 ounces of methamphetamine from Ysasaga. He admitted that he sold methamphetamine to customers, including co-conspirator Dewel Wells, in Wichita Falls.
Radford admitted that on numerous occasions between May and September 2012, he distributed quantities of methamphetamine to, and received payments for, methamphetamine from customers in the Wichita Falls area.
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.
Amarillo Man Faces Life in Federal Prison After Jury Convicts Him of Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
Federal Jury Also Convicts Defendant’s Nephew on Federal Firearm Offense
AMARILLO, Texas — Following a five-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted Amarillo residents, Donald Joseph West, 49, and his nephew, David James West, 43, on all counts of a superseding indictment, returned by a federal grand jury earlier this year, 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.
Specifically, 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). An armed career criminal, Donald West faces a statutory sentence of not less than 22 years and up to life in federal prison and a $750,000 fine.
David West, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing for both defendants is set for June 4, 2013, before Judge Robinson.
The government presented evidence at trial that on Monday, November 5, 2012, a man 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 the man, later identified as 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 semi-automatic 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 are prosecuting.
Last Defendant Sentenced in Massive International Telecommunications Fraud CaseRead the Press Release
Fraud Extended to United Kingdom, Spain, Lebanon, France and the United Arab Emirates
DALLAS — Thomas Francis Quinn, 76, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 84 months in federal prison, and then remanded into federal custody, for his role in a conspiracy to defraud two British telecommunications companies of more than $60 million. Quinn, a U.S. citizen who resided in France and maintained residences in other foreign countries, pleaded guilty to one count of wire fraud. Quinn was the last defendant convicted in the case to be sentenced. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Other defendants convicted and sentenced in the case are:
Michael Signoretto, 74, of Dallas. Following a two-week trial, Signoretto was convicted on one count of conspiracy to commit wire fraud and one count of conspiracy to obstruct an official proceeding. He was sentenced in June 2012 to 84 months in federal prison and ordered to pay $50,700,400 in restitution.
Steven Roy Jamieson, 55, of Plano, Texas. Jamieson pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 48 months in federal prison and ordered to pay $63,693,178 in restitution.
Robert William Moore, 48, a United Kingdom citizen, who resided in Poland and Dubai. Moore pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit bankruptcy fraud. He was sentenced to 84 months in federal prison.
Jeffrey John Hemmer, 48, of Dallas, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 24 months in federal prison and ordered to pay $63,693,178 in restitution.
David William Price, a U.K. citizen, is charged in the conspiracy, but remains a fugitive.
According to evidence presented at trial, including voluminous bank/financial records from multiple countries and intercepted telephone communications, as well as documents filed in the case, the defendants ran a conspiracy to defraud two British telecommunications companies, British Telecom (BT) and MCI (now Verizon) out of more than $60 million.
The conspirators committed the fraud by purchasing a London business, London Digital Limited (LDL), that had pre-existing contracts and favorable credit terms with BT and MCI. Over an 18-month period from late 2003 to June 2005, the conspirators used LDL to quickly buy increasing amounts of “air time” from the telecom companies that they would sell at a loss to other wholesale companies, and then, when they were doing more than $20 million per month in business, put their London company into bankruptcy and walked away with three months’ worth of revenues that should have been paid to the telecom companies.
The conspirators also created two shell companies, Nationwide Call Company (NCC) in Dallas and FOCOS Electronics in Marbella, Spain, to covertly move the proceeds of their fraud to Aston Rothbury, a private “bank” in London operated by a convicted money launderer. From London, the conspirators had their fraud proceeds directed to three bank accounts in Beirut, Lebanon, and from there the funds were disbursed to accounts in numerous countries, including France, Kenya, Ireland, the United Kingdom, Poland, the United States, and Dubai in the United Arab Emirates. As part of their plan to keep the fraud secret, the conspirators utilized fake passports, spoke about the fraud on prepaid “bat phones” and referred to each other with predetermined code names.
In late 2005, the victim companies brought a federal civil action in Hammond, Indiana, in an attempt to uncover the truth of what was behind the suspicious bankruptcy of LDL. As part of the federal case, the victim companies took the deposition of Jeffrey Hemmer on four occasions between late 2005 and late 2008. Behind the scenes, Quinn and his co-conspirators waged a prolonged effort to obstruct this federal civil case in order to prevent the victims from exposing the criminal conspiracy and everyone involved in it. Starting with a meeting of the conspirators in a Paris hotel, there was a concerted effort to get Hemmer to lie under oath in the Indiana proceedings or “take a vacation” – the conspirators’ code for fleeing the United States – so that he could not give deposition testimony. On four occasions between July and December 2008, Signoretto dropped four packages containing thousands of dollars at the concierge desk and valet stand at a downtown Dallas hotel, for pickup by Hemmer. Unbeknownst to the conspirators, however, Hemmer had begun cooperating with the FBI and Internal Revenue Service Criminal Investigation agents investigating the LDL case. Beginning with consensual recordings of Hemmer’s telephone calls, the investigating agents eventually obtained court-ordered wiretap interceptions of the telephones of Jamieson and Signoretto. These intercepted calls clearly implicated Quinn and his co-conspirators in the effort to obstruct the Indiana federal case, as well as the underlying LDL fraud.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov
Internal Revenue Service Criminal Investigation and the FBI investigated. Criminal Chief Assistant U.S. Attorney Chad Meacham and Assistant U.S. Attorneys Errin Martin and Stephen Fahey prosecuted.
Former Lubbock, Texas, Resident Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Miles Robert Flinn, 26, formerly of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 10 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings ordered that Flinn, who presently resides in Bradenton, Florida, surrender to the Bureau of Prisons on April 26, 2013.
According to the factual resume filed in the case, while living in Lubbock, Flinn used a file-sharing program on his computer in his residence to download images and videos from the Internet, including child pornography. Flinn was found to be in possession of the child pornography on his computer hard drive on July 26, 2011.
This matter 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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock Police Department’s Internet Crimes Against Children (ICAC) Task Force investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Big Spring, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Christopher Aubrey Harlan, 27, formerly of Big Spring, Texas, appeared in federal court in Lubbock today and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of receiving child pornography. Harlan, who is on bond, faces a statutory penalty of not less than five years, or more than 20 years, in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Harlan used his computer, as well as for a brief time, his roommate’s computer, to access child pornography on various websites. He used those computers, as well as his cellphone, to send and receive numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Police Officer Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — Philip Woolery, a former officer with the Grapevine, Texas, Police Department, appeared in federal court in Fort Worth today and pleaded guilty to an Information charging one count of production, and one count of possession, of child pornography. Woolery has been in custody since his arrest in October 2012 at his residence in Crowley, Texas, by U.S. Postal Inspectors during the execution of a federal search warrant. He faces a total maximum statutory penalty of not less than 15 or more than 40 years in federal prison, a $500,000 fine and a lifetime of supervised release. Sentencing is set for September 17, 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, Woolery admitted that in August 2011 he used his digital camera to record a minor male engaging in sexually explicit conduct in a swimming pool. In addition, Woolery admitted that in October 2012, he possessed a laptop computer that contained a sexually explicit image of a nude minor male and that he used that computer and the Internet to search for websites containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Emissions Inspectors at Vehicle Inspection Stations in Arlington, Texas, Sentenced for Falsifying Texas State Emissions Test ResultsRead the Press Release
DALLAS — Six residents of Arlington, Texas, who pleaded guilty to their respective roles in falsifying Texas state emissions tests at two state-certified inspections stations in Arlington, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“Everyone has a right to breathe clean air, free from excessive vehicle emissions,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “In order to protect the public from harmful air pollutants, governments must have accurate and honest vehicle emissions tests. The defendants generated thousands of fraudulent inspections and certificates and cynically lined their pockets as they thumbed their noses at our nation’s environmental laws. This is one of the largest vehicle emission fraud cases in the country and is an excellent example of government agencies working together to protect both the public and the environment.”
“I commend the excellent investigative work by the U.S. Environmental Protection Agency, Criminal Investigation Division; the Texas Department of Public Safety; and the Texas Commission on Environmental Quality,” said U.S. Attorney Saldaña. “As these convictions illustrate, this office, in partnership with these agencies, will aggressively prosecute those who deliberately ignore the nation’s Clean Air Act.”
The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish National Ambient Air Quality Standards (NAAQS) to protect the public health and welfare and to regulate emissions of hazardous air pollutants. Areas that exceed the NAAQS are known as “non-attainment areas.” Depending on the amount of pollution that exceeds the standards, areas are classified as marginal, moderate, serious, severe or extreme. The North Texas Region that includes Dallas and Tarrant counties, is classified as a “serious” non-attainment area by the EPA. Vehicles are required to pass annual inspections to ensure that their emissions do not exceed limits for hydrocarbons, nitrogen oxide and other compounds.
Nghiem Van Tran, 54, and Nghi Cong Tran, 32, who each pleaded guilty to one count of conspiracy to violate the Clean Air Act, were sentenced by U.S. District Judge Barbara M. G. Lynn to 15 months in federal prison. In addition, Nghiem Van Tran was ordered to pay a $5,000 fine.
Ngan Tien Tran, 29, pleaded guilty to one count of making a Clean Air Act false statement and was sentenced by Judge Lynn to 12 months in federal prison.
Dahn Cong Tran, 26, Bich Dong Ngo, 26, and Huy Ngoc Nguyen, 26, were each sentenced to 12 months of probation, following each of their guilty pleas to one count of making a Clean Air Act false statement. Judge Lynn ordered that Danh Cong Tran’s probation include eight months of home confinement.
According to documents filed in the case, the inspection stations, Mike’s Autocare, located on North Mesquite Street in Arlington and Tommy Tech, located on Peach Street in Arlington, performed approximately 7,656 fraudulent emissions tests between August 2009 and March 2011. The defendants circumvented the required emissions testing procedures by substituting vehicles that would pass the emissions test in place of vehicles that had previously failed or showed equipment malfunctions. In most instances, the vehicle needing an emissions test was not present at Mike’s or Tommy Tech when the emissions tests were conducted, and the defendants who conducted the fraudulent tests received the necessary identifying vehicle information from Nghiem Van Tran and Nghi Cong Tran via a text message or a handwritten slip of paper. The defendants generated fraudulent emissions certificates and transmitted fraudulent testing results to the Texas Information Management System (TIMS) database managed by the Texas Department of Public Safety.
The defendants demanded up to $80 for each fraudulent test, well above the state-mandated maximum charge of $39.75. Proceeds from the fraudulent emissions tests were deposited into a bank account for “Upland Investment,” which was controlled by Nghiem Van Tran.
Assistant U.S. Attorney Stephen P. Fahey prosecuted.
Denison, Texas, Man Sentenced to 46 Months in Federal Prison for Transporting More Than 100 Kilograms of MarijuanaRead the Press Release
LUBBOCK — Mark Dean Garrison, 48, of Denison, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 46 months in federal prison, following his guilty plea in December 2012 to one count of possession with intent to distribute 100 kilograms or more of marijuana, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in late October 2012, a trooper with the Texas Department of Public Safety stopped a pickup truck, owned and driven by Garrison, for a traffic violation on Interstate 20 near Abilene, Texas. Co-defendant Brian Julian Gallardo, 22 of Sherman,, Texas, was the only passenger in the truck, which was carrying several spools of barbed wire. After Garrison consented to a search of the truck, one of the troopers opened the inside of one of the spools of wire and detected the odor of marijuana. Further investigation revealed that the spools of wire contained 229 bricks of marijuana that weighed approximately 112 kilograms. Both Garrison and Gallardo were arrested and have been in custody since that time.
Gallardo has pleaded guilty to the same offense and is scheduled to be sentenced on March 29, 2013. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $5 million fine.
The case was investigated by the Texas Department of Public Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
San Angelo, Texas, Man Pleads Guilty in Federal Court to Federal Obscenity ChargeRead the Press Release
LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, appeared in federal court in Lubbock, Texas, today and pleaded guilty before U.S. District Judge Sam R. Cummings, 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.
Doyle faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Doyle has been in custody since his arrest on December 19, 2012.
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.
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 is in charge of the investigation and Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Aryan Brother Inmate Sentenced for Federal Hate Crime for Assaulting Fellow InmateRead the Press Release
WASHINGTON – John Hall, 27, an Aryan Brotherhood member and inmate at the Federal Correctional Institution (FCI) in Seagoville, Texas, was sentenced today by U.S. District Judge Reed O’Connor after pleading guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, whom he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011. Hall was sentenced to serve 71 months in prison to be served consecutively with the sentence he is currently serving.
The assault occurred on Dec. 20, 2011, inside the FCI Seagoville when Hall targeted and attacked the victim, a fellow inmate, because he believed the victim was gay or involved in a sexual relationship with another male inmate. Hall repeatedly punched, kicked and stomped on the victim’s face with his shod feet, a dangerous weapon, while yelling a homophobic slur. The victim lost consciousness during the assault and suffered multiple lacerations to his face. The victim also sustained a fractured eye socket, lost a tooth, fractured other teeth and was treated at a hospital for the injuries he sustained during Hall’s unprovoked attack. Hall pleaded guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act on Nov. 8, 2012.
“Brutality and violence based on sexual orientation has no place in a civilized society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate.”
“This prosecution sends a clear message that this office, in partnership with attorneys in the department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in North Texas,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Fort Worth Man Remanded into Custody Following His Guilty Plea in Child Pornography CaseRead the Press Release
FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, pleaded guilty on Friday, before U.S. District Judge John McBryde, to an indictment charging one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Anderson faces a maximum statutory penalty of up to 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge McBryde set a June 21, 2013, sentencing date and remanded Anderson into custody.
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’d 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 is being conducted by the Fort Worth Police Department’s ICAC and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Coleman County, Texas, Man, Is Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $300,000 in Restitution for Shooting at Crop DusterRead the Press Release
LUBBOCK, Texas — James R. Cate, 69, was sentenced late Friday afternoon, by U.S. District Judge Sam R. Cummings, to 18 months in federal prison and ordered to pay a total of $297,179 in restitution, following his guilty plea in November 2012 to a superseding information charging the federal felony offense of making a threat to an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings ordered that Cate, who resides near Talpa, Texas, surrender to the Bureau of Prisons on April 12, 2013.
According to documents filed in the case, on February 29, 2012, Cate, using a Ruger Number One, 25-06 caliber single shot rifle with a Redfield scope, shot a crop duster plane. At the time Cate shot the aircraft, it was flying over a field neighboring Cate’s land near Talpa, dusting crops. Before he actually shot the aircraft, Cate fired three rounds from the rifle into the air. Cate admits that he threatened the aircraft to frighten the pilot away from his crops.
The last round that Cate fired hit the propeller of the aircraft, penetrated the engine cowling traveling toward the rear of the plane, passed through the firewall and the spray hopper (which contained nearly 500 gallons of chemical used for the crop spraying), entered the cockpit where it fragmented into multiple pieces (at least one of which tore through the leg of the jeans the pilot was wearing), then into the rear fuselage, all of which caused damage to the aircraft.
The investigation was conducted by the FBI and the Federal Aviation Administration. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.