Northern District of Texas
Press releases recorded for this federal judicial district.
Women Plead Guilty in Conspiracy to Embezzle Crime Stoppers’ Cash RewardsRead the Press Release
One Defendant Worked as a Bank Teller
DALLAS — Two local women, Amelia Blair Lopez, of Lancaster, Texas, and Eva Barrientos, of Red Oak, Texas, both 26, appeared in federal court this week and admitted embezzling Crime Stoppers’ funds on deposit at JP Morgan Chase Bank, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Specifically, each woman, who remains on bond, pleaded guilty to one count of conspiracy to commit theft, embezzlement or misapplication by a bank employee and faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Sentencings are set for this summer.
According to documents filed in the case, from February to April 2010, Lopez, a teller with JP Morgan Chase Bank, and Barrientos, embezzled approximately $18,750 of money entrusted to the care of JP Morgan Chase Bank by the North Texas Crime Commission.
Lopez provided Barrientos and Barrientos’s husband with confidential Crime Stoppers tip information, including tip numbers and code words necessary to collect the Crime Stoppers cash rewards. Barrientos, Barrientos’s husband and others would present the tip numbers and code words to Lopez, and other tellers at the bank, to collect the Crime Stoppers cash rewards. After Barrientos, Barrientos’s husband and others collected the cash rewards, they would divide the cash among the coconspirators.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
San Angelo, Texas, Man Pleads Guilty in Federal Court to Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Victor Lopez, 47, of San Angelo, Texas, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of receipt of child pornography. Lopez faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. 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.
Lopez has been in federal custody since his arrest following the execution of a federal search warrant at his residence by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on January 23, 2013. He was indicted last month on several counts of receiving and possessing child pornography.
According to plea documents filed in the case, Lopez admitted that he used file-sharing software to collect numerous videos of child pornography, including depictions of sadistic and masochistic conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by ICE HSI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.
Dallas-Area Businessmen Charged in Plot Involving Illegal Export of Approximately $12 Million Worth of Computers to IranRead the Press Release
Defendants Allegedly Shipped Computers to Dubai, Concealing That They Were Ultimately Destined for Iran
DALLAS — Borna Faizy, aka “Brad,” and Touraj Ghavidel, aka “Brent Dell,” corporate owners/operators of Signal Microsystems in Addison, Texas, a company that sold computers domestically and internationally, were arrested yesterday by members of the North Texas Counterproliferation Task Force on an indictment alleging that they illegally shipped computer equipment to Iran through Dubai. They made their initial appearances yesterday afternoon and were released on bond. In addition, both pleaded not guilty to the charges. Today’s announcement was made by Sarah R. Saldaña, United States Attorney for the Northern District of Texas and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division.
The indictment, which was returned under seal by a federal grand jury in Dallas earlier this week, alleges that from 2005 to January 2012, Faizy, 42, of Frisco, Texas, and Ghavidel, 44, of Plano, Texas, conspired together and with others to export computers and computer equipment from the United States to Iran, in violation of the prohibitions imposed upon that country by the United States Government, without first having the required authorizations or licenses from the Office of Foreign Assets Control (OFAC).
As part of their conspiracy, the indictment alleges that Faizy and Ghavidel acquired computers from U.S. companies to supply to end-users in Iran and concealed from the United States that the computers were destined for Iran. They allegedly evaded regulations, prohibitions and licensing requirements of the Iranian Transactions and Sanctions Regulations (ITSR), which prohibit, among other things, the export, re-export, sale, or supply, directly or indirectly, from the United States to Iran, without prior authorization from the Secretary of the Treasury. These regulations further prohibit the unauthorized exportation of goods from the United States to a third country if the goods are intended or destined for Iran.
Faizy and Ghavidel allegedly actively recruited Iranian customers by marketing their computer business to business owners and individuals in Iran, and, in 2008 or 2009, attended a computer trade show, known as “GITEX,” in Dubai to recruit Iranian customers. The defendants allegedly used freight-forwarding companies in Dubai to ship the equipment to Iran and communicated with coconspirators using fictitious names and coded language to obscure the true identities and locations of the ultimate consignees and end-users. They also created invoices and export forms that falsely identified the ultimate consignees of the shipments as parties in Dubai.
Each defendant is charged with one count of conspiracy to illegally export to Iran, nine substantive counts charging illegal export and attempted export of goods to Iran and one count of making false statements to a federal agency. Upon conviction, the conspiracy count carries a maximum statutory penalty of 20 years in federal prison. Each of the substantive counts carries a maximum statutory penalty of 20 years in federal prison and each of the false statement counts carries a maximum penalty of five years in federal prison. In addition, upon conviction, each count carries a maximum fine of $250,000.
The investigation is being conducted by members of the North Texas Counterproliferation Task Force, which includes the FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Department of Commerce and Defense Criminal Investigative Service.
The prosecution is being handled by Assistant U.S. Attorneys J. Mark Penley, Gary C. Tromblay and Katherine Miller of the Northern District of Texas and Trial Attorney David Recker of the Justice Department’s National Security Division.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
Dallas Man Sentenced to 20 Years in Federal Prison for Role as Leader of Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Todd Ray Walker, 39, of Dallas, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 240 months in federal prison for conspiring to possess with the intent to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Walker has been in custody since June 27, 2011, when he was arrested by officers with the Dallas Police Department.
According to documents filed in the case, Walker admitted that on multiple occasions from January 2011 to the date of his arrest, he received multi-ounce quantities of methamphetamine from multiple Dallas-based supply sources, stored the drugs at residences on Westglen Drive and Forney Road in Dallas, and distributed the drugs from the residences. During the time of the conspiracy, Walker possessed and/or distributed more than two kilograms of methamphetamine.
In addition, Walker admitted that in retaliation for the theft of drugs and drug proceeds from the Westglen residence, on or about June 27, 2011, he held a female against her will for several hours at the residence. He forced her to strip so that he could search her for drugs and/or money and admits that he was armed with a handgun while he held her inside the residence. Her hands were then bound by co-defendant James Darnell Brown, and Walker took photographs of her being assaulted by co-defendants Amy Suzanne Benat and Rachel Marie Anderson. Walker, Brown, Benat and Anderson were arrested when officers with the Dallas Police Department arrived at the residence on June 27, 2011, and a subsequent search of the residence resulted in the seizure by law enforcement of approximately 250 grams of methamphetamine and multiple firearms.
Walker was ordered to forfeit his residence on Westglen Drive and 36 firearms to the United States.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the FBI. To date, a total of 50 defendants, mostly customers of Walker, have been named in multiple indictments.
Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
Former Gamestop VP, Who Defrauded Company of Nearly $2 Million, Is Sentenced to 51 Months in Federal Prison and Ordered to Pay RestitutionRead the Press Release
DALLAS, Texas — Frank Christopher Olivera, 46, of Grapevine, Texas, the former Vice President of Corporate Communications and Public Affairs at Gamestop Texas LLP, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 51 months in federal prison, following his guilty plea in November 2012 to one count of mail fraud. Olivera stole more than $1.7 million, most of which he has repaid to the victim, Gamestop Texas LLP. Judge Boyle ordered that Olivera pay an additional $57,376, which constitutes the amount unpaid on the loss and $77,275 additional restitution to Gamestop. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, beginning in July 2009 and continuing to April 2011, Olivera defrauded Gamestop by submitting false and fraudulent invoices for vendor services from a fictitious company, “Cloud Communications LLC,” which he owned and controlled. Olivera directed Gamestop to send the payments from Gamestop’s offices in Grapevine to Cloud Communications LLC in Las Vegas and Lake Tahoe, Nevada and in Canada. In addition to creating a fictitious company, Olivera also created a fictitious person, “Jennifer Miller,” to serve as the point of contact at Cloud Communications. Upon receipt of payments from Gamestop, Olivera would deposit the checks into a bank account held by Cloud Communications and then would transfer the fraudulently obtained funds into his personal bank account.
The overall scheme to defraud involved $1,965,900 in fraudulent invoices.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Errin Martin.
Former Marine Admits Running Elaborate Fraud Scheme to Get Financial Help to Play on PGA TourRead the Press Release
Defendant Concocted Convincing Story That He Was a Wounded Combat Veteran
DALLAS — Michael Duye Campbell, 30, of Houston, appeared in federal court in Dallas today and pleaded guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of mail fraud, stemming from a scheme he ran from 2010 to 2012 to obtain financial assistance so that he could play professional golf. Campbell, a Houston resident, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine and restitution. He will remain on bond, pending sentencing, which has been set for June 19, 2013, before Judge Solis. 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, Campbell served in the U.S. Marine Corps from 2000 to 2004; he never deployed overseas and was never injured, severely or otherwise, in combat. Nonetheless, he began representing himself as a Marine combat veteran who had suffered a traumatic brain injury (TBI) while deployed to Iraq in support of Operation Iraqi Freedom.
As part of his elaborate scheme, Campbell falsely told others that while on patrol in Fallujah, Iraq, his unit was attacked when an improvised explosive device (IED), or bomb, detonated. He told others that members of his unit died in the explosion and that he awoke from his serious injuries months later at Walter Reed Army Hospital. He claimed that he couldn’t speak, and that when he did regain his speech, he stuttered. He also claimed that he suffered short-term memory loss from his TBI.
Campbell told numerous individuals that his doctor suggested that he take up golf to help with his rehabilitation for his combat injuries. Campbell also created a website and obtained a promotional video recording to further his scheme — all to obtain financial help to play in the PGA.
Campbell was convincing in his story. He met famous people who supported charity golf tournaments for wounded warriors and convinced them to write stories on his behalf and provide him access to expensive golf schools and golf courses. All of this provided Campbell with opportunities to continue his scheme, defraud others and afford him opportunities to search out endorsement contracts for golf apparel and equipment.
In fact, it was during this process that Campbell learned of the Troops First Foundation and Operation Proper Exit. These charities provide opportunities for severely-injured service members to return to the location where they sustained their injury and, instead of being medically evacuated, provide them the opportunity to walk to the aircraft and climb the ramp. Campbell participated in Operation Proper Exit VIII, co-sponsored by the USO, in December 2010. He was flown from DFW to Dubai and then provided military transportation for the remainder of the trip. Even though Campbell was neither a combat veteran nor a wounded warrior, he made the trip, which cost thousands of dollars.
Campbell deceived other charities including Operation Homefront and Counter Valor by making continued material false statements in furtherance of his scheme to defraud. He obtained many things of value from them including automobile payments, automobile insurance payments, utilities, room and board, transportation, living expenses and golf tournament entry fees. Likewise, Campbell deceived Vola LLC (an athletic apparel and footwear company located in Richardson, Texas) and Golf Technology Xtreme, Inc. (GTX) (a manufacturer of golf clubs), by obtaining, and attempting to obtain golf clothing, equipment, money and other things of value from them.
Campbell admits that the victims of his fraud suffered at least $40,000 in actual losses.
The case is being investigated by the FBI and prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham.
Two Charged with Sex Trafficking of A ChildRead the Press Release
FORT WORTH, Texas — Two individuals, Deundrea R. Miller, 27, and Brittanie S. Brattain, 21, charged in a federal felony criminal complaint with sex trafficking of a child, by force, fraud or coercion, made their initial appearance in federal court this afternoon, before U.S. Magistrate Judge Jeffrey L. Cureton. Brattain was detained pending further disposition of the matter; Miller is detained pending hearings set for later in the week. 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, from September 2012 through January 2013, Miller and Brattain recruited, enticed, harbored and maintained a minor, known as “Jane Doe,” who at the time was 15-years-old, to engage in commercial prostitution activities that were advertised on Backpage.com. Jane Doe engaged in numerous commercial sex acts during this time and turned over all the money she earned from the prostitution to Miller.
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.”
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 not less than 10 years or more than life in federal prison and a $250,000 fine.
The investigation is being conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Arlington Police Department and the Fort Worth Police Department — members of the North Texas Anti-Trafficking Team. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Garland, Texas, Tax Preparer Sentenced to More Than Three Years in Federal Prison for Submitting Hundreds of Tax Returns That Falsely Claimed First Time Homebuyer CreditRead the Press Release
Instant Tax Service Manager Also Ordered to Pay $1,665,000 in Restitution
DALLAS — Cora Latrice Hopkins was sentenced yesterday by U.S. District Judge David C. Godbey to 37 months in federal prison and ordered to pay $1,665,000 in restitution, following her guilty plea in November 2012 to filing a false claim with an agency of the United States. Hopkins, who according to the indictment filed in the case is a Garland, Texas, resident, has been in custody since her arrest in August 2012 by special agents with Internal Revenue Service Criminal Investigation (IRS CI). Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, from December 2008 through March 2009, Hopkins was employed as the manager of the Instant Tax Service (ITS) office located on South Buckner Boulevard in Dallas. In this capacity, she was responsible for preparing and filing tax returns for ITS clients; she filed the returns electronically with the IRS, using an identification number assigned to the ITS office on South Buckner.
The factual resume further states that between January 1, 2009, and March 12, 2009, Hopkins prepared and filed 403 tax returns, for tax year 2008, with the IRS. Of these 403 tax returns, 316 claimed the First Time Homebuyer Credit that was available to qualified individuals who purchased a home as a primary residence in 2008. Hopkins, however, knew that the taxpayer named in each of those returns did not qualify for, or had not provided the information necessary to qualify for, the First Time Homebuyer Credit. Hopkins admitted that she knew that the false credits claimed on the tax returns would reduce the taxpayer’s tax liability or increase the amount of any refund due to the taxpayers.
The investigation was conducted by IRS CI; Assistant U.S. Attorney Paul Yanowitch was in charge of the prosecution.
Tarrant County Man Sentenced to 180 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Walter Eugene Rogers, 33, of Watauga, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 180 months in federal prison and a five-year term of supervised release, following his guilty plea in November 2012 to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Rogers has been in custody since he was arrested in Georgia by officers with the Tallapoosa Police Department on a related charge outlined in a criminal complaint.
According to documents filed in the case, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), conducting an undercover investigation to identify persons involved in the distribution of child pornography through the use of peer-to-peer file sharing networks, identified a particular computer that was sharing images of child pornography. The undercover agent downloaded some of the more than 384 files available for sharing that had names indicative of child pornography, and found that they did contain images of child pornography.
Based on the downloaded images, a warrant was executed at Rogers’ home in Watauga in November 2011 and agents seized a computer and related storage devices, as well as a bag of printed child pornography images. Rogers admitted that he had been downloading child pornography since the mid-1990's and that he is attracted to boys 9-12 years of age. Rogers also admitted that he had images and videos of sex acts, bondage and other sadistic acts involving children, and that he had downloaded child pornography just a few hours before agents arrived that day.
The 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.”
ICE HSI investigated the case; Assistant U.S. Attorney Camille Sparks prosecuted.
Man Who Committed the Armed Robbery of A Credit Union in Pampa, Texas, Is Sentenced to 96 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — Billy Michael Grimes, 51, of Pampa, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 96 months in federal prison and ordered to pay $2,800 in restitution for committing the armed robbery of a credit union in Pampa in September 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on September 15, 2012, Grimes, wearing a black hoodie and sweat pants and a New York Yankees ball cap, entered the Amarillo Community Federal Credit Union, located on North Hobart Street in Pampa, approached a teller and said he needed to make a withdrawal. The teller advised him that he would need to complete a withdrawal slip. Displaying a gun, Grimes told her he did not need a withdrawal slip and to give him all the money. After receiving the cash from the teller, Grimes ran out of the Credit Union. Shortly thereafter, Grimes was identified by law enforcement, located driving his vehicle and was stopped. He had a donut bag with him and said that he’d just come from the donut shop. The investigation revealed that Grimes used one of the bills from the robbery to purchase the donuts, just moments after robbing the Credit Union.
The case was investigated by the FBI and the Pampa Police Department. Assistant U.S. Attorney Christy L. Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Former Teacher’s Aide Sentenced to 30 Months in Federal Prison on Federal Child Sexual Exploitation ConvictionRead the Press Release
Shanice Adel Lambert Worked in Childress Independent School District
AMARILLO, Texas — A former teacher’s aide in the Childress Independent School District (CISD), Shanice Adel Lambert, was sentenced today by U.S. District Judge Mary Lou Robinson to 30 months in federal prison, following her guilty plea in November 2012 to one count of traveling with the intent to engage in illicit sexual conduct, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lambert was remanded into custody at the time of her guilty plea, and her custody was continued following the sentencing hearing.
According documents filed in the case, through her employment in the CISD as a teacher’s aide, and through this individual’s association with one of her children, Lambert met “John Doe,” a 15-year-old student at the school where she worked. In February 2012, Lambert engaged in a relationship with “John Doe” which became sexual in nature. On February 11, 2012, Lambert traveled to Altus, Oklahoma, for the purpose, among others, of engaging in illicit sexual conduct with “John Doe.” After arriving in Altus, Lambert rented a motel room and engaged in sexual acts with “John Doe.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, and Assistant U.S. Attorney Christy Drake, of the U.S. Attorney’s Office in Amarillo, Texas, prosecuted.
Plano, Texas, Man Convicted in Corporate Hacking CaseRead the Press Release
DALLAS — A Plano, Texas, resident was convicted this afternoon by a federal jury for conspiring to hack into his former employer’s computer network, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Michael Musacchio, 61, was found guilty of one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. Each count of conviction carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
According to the evidence submitted at trial, from 2002 to 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries. In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees, Joseph Roy Brown and John Michael Kelly, also went to work at Musacchio’s new company. Trial testimony and exhibits established that between 2004 and 2006, Musacchio, Brown and Kelly engaged in a scheme to hack into Exel’s computer system for the purpose of conducting corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, the co-conspirators were able to obtain Exel’s confidential and proprietary business information and use it to benefit themselves and their new employer.
A federal grand jury returned an indictment against the three men on Nov. 2, 2010. Brown and Kelly entered guilty pleas on May 19, 2011, and Aug. 2, 2012, respectively, and are awaiting sentencing. Musacchio is scheduled to be sentenced on June 14, 2013, before U.S. District Judge Jorge A. Solis.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Assistant U.S. Attorneys Linda Groves and Candina Heath and Trial Attorney Rick Green of the Criminal Division’s CCIP Section prosecuted.
Forth Worth Man Sentenced to 10 Years in Federal Prison on Bank Robbery ConvictionsRead the Press Release
FORT WORTH, Texas — Montray Lorenzo Cato, 29, of Fort Worth, Texas, was sentenced today by U.S. District Judge John McBryde to 120 months in federal prison, following his conviction at trial, in November 2012, on two counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge McBryde also ordered that Cato pay $7,747 in restitution.
During summer 2012, Cato robbed two branches of the First Convenience Bank in Fort Worth. Cato committed the June 13, 2012, robbery of the First Convenience Bank, located inside of a Kroger Store at 6650 North Beach Street and the July 28, 2012, robbery of the First Convenience Bank, located inside of a Walmart at 6756 West Vickery. On both occasions the bank robber wore similar clothing and held a cell phone to his ear during the robbery.
Cato was arrested on August 29, 2012, after employees at a First Convenience Bank, located inside of a Kroger Store at 9114 Camp Bowie Boulevard West, recognized Cato loitering in the store and notified the Fort Worth Police Department. After officers located Cato in the store, they escorted him outside and discovered that he had a realistic plastic replica of a firearm in his waistband. In addition, he had no money, credit cards or debit cards on his person that seemed to belie his claim that he was shopping at the Kroger.
The case was investigated by the Fort Worth Police Department and the FBI. Assistant U.S. Attorneys Matthew Gulde and Megan Fahey prosecuted.
Dallas Man Admits Possessing More Than 8,000 Images of Child PornographyRead the Press Release
DALLAS — Howard Tyson, 45, of Dallas, pleaded guilty this morning, before Chief U.S. District Judge Sidney A. Fitzwater, to a criminal information charging one count of possession of child pornography. Tyson faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Fitzwater ordered Tyson to surrender to the Bureau of Prisons on Monday, March 4, 2013, and set a sentencing date of June 14, 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, Tyson used a peer-to-peer file-sharing program to download child pornography from the Internet onto his computer and his wife’s computer. When agents with the U.S. Secret Service executed a federal search warrant at his residence on July 26, 2011, Tyler admitted that he had been downloading child pornography for approximately one year. He said that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of both computers showed that the hard drives contained more than 8,000 images and 20 videos of child pornography. Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Secret Service and the Plano, Texas, Police Department are investigating. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Big Spring, Texas, Man Pleads Guilty in Connection with Bomb Threat HoaxRead the Press Release
LUBBOCK, Texas --- Jordan Weston Hamilton, 24, of Big Spring, Texas, appeared yesterday before U.S. District Judge Sam R. Cummings and pleaded guilty to the federal charge of false information and hoaxes, stemming from a bomb threat he made in December 2012. Hamilton, who remains in custody, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on December 17, 2012, at approximately 10:05 a.m., Hamilton called the Howard County, Texas, 9-1-1 emergency call center. Hamilton admits that he intentionally conveyed false and misleading information to the emergency call center when he stated there was a bomb located in the Science room at the Big Spring High School. Hamilton also admits that emergency officials in Big Spring, reasonably believing the false and misleading information he conveyed, evacuated and searched the Big Spring High School for a bomb. No bomb was located at the school.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas.
Dallas Woman, Who Represented Herself as A Real Estate Investor, Is Sentenced to 63 Months in Federal Prison for Leading Scheme to Defraud Residential Mortgage LendersRead the Press Release
Scheme Resulted in More Than $2 Million in Losses to Lenders
DALLAS — Patience Lavon Jackson, 50, of Arlington, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 63 months in federal prison and ordered to pay $2,801,661.95 in restitution, following her conviction for leading a conspiracy to defraud residential mortgage lenders, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Boyle ordered that Jackson surrender to the Bureau of Prisons on April 3, 2013.
Jackson pleaded guilty in October 2012 to one count of conspiracy to commit mail and wire fraud. Co-defendant Anthony Davis, Jr., 32, of Mesquite, Texas, who was employed as a branch manager at Bank of America, pleaded guilty in September 2012 to one count of conspiracy to commit mail fraud and is scheduled to be sentenced on April 25, 2013. Charlie M. Smith, Jr., of California, another co-defendant in the case, is facing similar charges in the Southern District of Ohio; that case will be adjudicated first.
According to documents filed, Jackson admitted that the purpose of her scheme was to fraudulently obtain residential real estate mortgages. Holding herself out as a real estate investor, she offered investment “seminars” at her house. Her “investment program” included recruiting straw purchasers, including Davis, to buy real estate and obtain fraudulent proceeds from the transaction by submitting fake invoices for consulting, upgrades or repairs. In facilitating the fraudulent real estate transactions, she caused title companies to mail closing documents to residential mortgage lenders who then wired money to fund the purchases.
Jackson facilitated the mortgage loans for the straw purchasers by submitting false and fraudulent loan applications and documents. These applications included material misrepresentations regarding the borrower’s income, employment, assets and intention to occupy the property. Jackson also admitted that she supplied cash to some borrowers to make it appear as if the individual had the necessary financial assets to qualify for the loan, when they did not. Jackson also admitted that she received disbursements from some of the sellers that were not disclosed to the mortgage lenders.
For example, in one transaction, she facilitated fraudulent loans for an individual, “A.B.,” who was recruited by co-defendant Smith, to purchase Jackson’s residence on Hillcrest Lane in Dallas. Jackson admits that she notarized loan and closing documents purportedly bearing A.B.’s signature, but that she never met A.B. She also admitted that she provided money to A.B. for his down payment to purchase the Hillcrest property. False statements on this loan application and other documents caused the two mortgage lenders, JP Morgan Chase and First Magnus Financial Corporation, to wire a total of approximately $1.42 million to a title company to fund A.B’s purchase.
Davis admitted that in 2007, he conspired with Jackson and others to commit mail fraud. He attended real-estate investment “seminars” at Jackson’s house. She also recruited him to be a straw purchaser in her scheme, convincing him to purchase an investment property on Vickery in Dallas. Davis admitted that his loan application contained numerous false statements, including the amount of available cash assets and his intention to occupy the property as his primary residence.
In another instance, Davis signed a false verification of deposit form for an investor, whom Jackson recruited, falsely representing that this person had a certificate of deposit (CD) at Bank of America valued at $74,595. This document was part of this individual’s loan package to purchase a home on Willis Avenue in Dallas.
The conspirators allowed the purchased properties to go into foreclosure by not making the monthly mortgage payments, which resulted in more than $2 million in losses to mortgage lenders.
(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 investigation was led by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
Dallas Man Pleads Guilty in Federal Court, Admitting He Aimed A Laser Pointer at an AircraftRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The Court set Santodomingo’s sentencing hearing for July 25, 2013.
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
The case is being investigated by the DPD, the FBI and the Transportation Security Administration’s Federal Air Marshal Service. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Burleson, Texas, Man Admits Committing Armed Robbery of Bank of America in Crowley, TexasRead the Press Release
FORT WORTH, Texas — Brett Joseph Barnes, 27, of Burleson, Texas, appeared in federal court on Friday and pleaded guilty to one count of bank robbery, admitting he robbed the Bank of America on South Crowley Road, in Crowley, Texas, in September 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Barnes faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for June 7, 2013, before Judge McBryde.
According to documents filed in the case, on Wednesday, September 16, 2009, an individual, later identified as Barnes, entered the Bank of America, located at 908 South Crowley Road, and holding what appeared to be a semi-automatic pistol, told everyone to get down and give him all the money. Barnes jumped the teller counter, approaching several tellers, and pointed the pistol at them, demanding and receiving money. After receiving the money, Barnes jumped back over the counter and ran from the bank.
When law enforcement searched the area, they discovered clothing items, including a bandana and sunglasses, near a residence in the direction in which Barnes fled. These items, which were identical to what the robber wore, were analyzed by the Tarrant County Medical Examiner’s Office and the DNA profile was entered into the Combined DNA Index System (CODIS). In January 2012, Barnes was located in the Dallas County Jail; his DNA and the DNA profile from the sunglasses and bandana matched.
The investigation was conducted by the Crowley and Burleson Police Departments and the FBI. Assistant U.S. Attorney John Bradford is in charge of the prosecution.
Local Home Health Care Agency Owners Are Sentenced for Roles in Nearly $1.3 Million Health Care Fraud ConspiracyRead the Press Release
DALLAS — Two owners of Alliance Healthcare Services, L.P., a Dallas home health care agency, were sentenced today by U.S. District Judge Jane J. Boyle for their roles in a nearly $1.3 million health care fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Richardson, Texas, residents, George Opurum, 62, and his wife, Agatha Opurum, 55, were each sentenced to 37 months in federal prison. They were ordered to surrender to the Bureau of Prisons on March 27, 2013.
George Opurum was the chief financial officer and alternate administrator of Alliance. Edith Opurum was the Director of Nursing at Alliance. Co-conspirator Ernest Amadi, 55, was the chief executive officer of Alliance and his wife, Edith Amadi, 52, was a nurse at Alliance. Alliance was located on Estate Lane in Dallas.
The Amadi’s, residents of Wylie, Texas, also pleaded guilty to conspiracy to commit health care fraud. Edith Amadi was sentenced to 37 months in federal prison; a sentencing date has not been set for Ernest Amadi. Another co-conspirator in the case, Ollie Futrell, 57, of Garland, Texas, pleaded guilty to her role in the conspiracy and is currently serving a 33-month federal prison sentence.
The five defendants in the case billed a total of $1,296,357, and are ordered to pay restitution in the amount of $853,702.
According to documents filed in the case, as part of the conspiracy, from November 2008 through mid-February 2011, Alliance submitted claims to Medicare for home health services purportedly provided to Medicare beneficiaries. Alliance employees, including the owners, falsified Medicare documentation and skilled nursing notes indicating that the patients were homebound and eligible for home health care services. In fact, the majority of Alliance patients were not eligible for the services because they were not homebound. Alliance employees and owners falsified time sheets and patient visit logs for services that were not adequately rendered or were never provided at all. Alliance then billed Medicare as if the services were adequately provided.
Further, according to documents filed in the case, Alliance owners conspired with Futrell to recruit Medicare patients for the company so Alliance could increase its Medicare billing and revenue. Futrell, who was paid in cash by Alliance owners, recruited Medicare beneficiaries in a variety of ways and initiated Alliance services for them. She agreed to pay kickbacks — sometimes $100 a month — to patients so that they would continue to use Alliance. Alliance owners knew about, and at times facilitated, these kickbacks.
The case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General (HHS OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant U.S. Attorney Katherine E. Pfeifle of the U.S. Attorney’s Office in Dallas and Trial Attorney Benjamin A. O’Neil of the Fraud Section in the Justice Department’s Criminal Division 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 Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov/
Garland Man Sentenced to 20 Years in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
Defendant Downloaded Images of Children as Young as Two-Years-Old
DALLAS — Isaac Heredia Luciano, 25, of Garland, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to an Information charging one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Luciano has been in federal custody since he surrendered to authorities in October 2012 on a related federal charge outlined in a criminal complaint.
According to documents filed in the case, a detective with the Garland Police Department who was working in an undercover capacity and using peer-to-peer file sharing program to investigate the distribution of child pornography, identified a computer that was sharing images of child pornography. In fact, on various dates from September 2011 until August 2012, the detective downloaded 27 images and videos of child pornography from that computer, including videos involving children as young as two-years-old, who could be heard on the videos crying and yelling “mommy.”
In late August 2012, a search warrant was executed at Luciano’s home in Garland and computers and related storage equipment were seized. Luciano admitted that he had been downloading child pornography, and in fact, had downloaded child pornography the previous day. He explained that he had a “sickness” with child pornography, admitted that videos he downloaded ranged from “diaper porn” to toddlers to teens, and that he possessed videos that included bondage and other sadistic acts involving minors.
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.”
The case was investigated by the Garland Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Federal Grand Jury Indicts Dallas Man for Aiming A Laser Pointer at AircraftRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time.
According to that complaint, at approximately 4:08 a.m. on January 28, 2013, Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in Dallas when the cockpit was illuminated approximately four times by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.
After the officers in the helicopter pinpointed the location where the laser originated, they directed patrol officers on the ground to a residence in the 7000 block of Lake June Road. Santodomingo answered the officers’ knock at the front door. He admitted having pointed the green laser light at the helicopter to see how far it would go and handed over the laser pointer to the officers at that time.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. If convicted, the maximum statutory penalty is five years in federal prison and a $250,000 fine.
The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Brown County, Texas, Man Sentenced to 188 Months in Federal Prison for Using the Internet to Collect and Share Hundreds of Images of Child PornographyRead the Press Release
LUBBOCK, Texas --- Nathan Derek McGinn, 33, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to one count of receiving child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. McGinn has been in custody since September 17, 2012.
According to documents filed in the case, McGinn used his computer, which was connected to the Internet, to access music and various forms of pornography through the use of file-sharing software. Specifically, McGinn used the software to collect and share hundreds of images of child pornography.
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.”
The case was investigated by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Addison, Texas, Man Sentenced to 12 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Guy Martin Johnson, 56, of Addison, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to 12 years in federal prison and a lifetime of supervised release, following his guilty plea in November 2012 to one count of transportation of child pornography. Johnson has been in federal custody since he entered his guilty 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, the investigation began in late January 2012 when law enforcement officials in Florida were involved in an undercover investigation targeting individuals who prey on children on the internet using popular social media sites. An officer, acting in an undercover capacity, entered a chat room, posing as a mother who had a son interested in sex with an adult male. That same day a man, later identified as Johnson, contacted the “mother” and over the course of several days, chatted with the “mother” and expressed his desire to have sex with her 14-year-old son
A few days later, Johnson talked to the “mother” and asked her if she would like him to send her some videos and images of child pornography, and she agreed. At that time, Johnson sent the “mother,” over the internet, 21 images depicting the sexual exploitation of minors.
The undercover officer, still posing as the “mother,” continued the chats with Johnson and discussed Johnson traveling to Florida to meet her son to have sex with him. However, Johnson never did travel to Florida.
In May 2012, members of the Dallas Police Department’s Internet Crimes Against Children (ICAC) task force executed a search warrant at Johnson’s home; Johnson admitted that he chatted over the internet in a chat room to someone in Florida, but that it was all fantasy. An analysis of the computer equipment seized during the search revealed 149 images and two videos of child pornography. Johnson admitted that he distributed images to the “mother” that included bondage and other sadistic acts involving minors.
The 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 Dallas Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Nashville Musician Pleads Guilty in Federal Court to Attempted Enticement of A MinorRead the Press Release
Banjo Player Was in Dallas to Perform With Country Music Band at Local Bar
DALLAS — Abraham Eugene Spear, 30, of Nashville, Tennessee, pleaded guilty this morning in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, to one count of attempted enticement of a minor. He faces a statutory penalty of not less than 10 years and not more than life in prison, a $250,000 fine and a lifetime of supervised release. Spear, who has been in federal custody since his arrest in September 2012, in Dallas, is to be sentenced by Judge Fitzwater on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Spear admitted that from August 27, 2012, through September 20, 2012, he used the Internet and a cell phone to knowingly attempt to persuade an individual, whom he believed to be a seven-year-old girl, to engage in sexual activity. Spear, using the monikers of MUSICMAN30 and BANJOPAINE, communicated over several weeks with an undercover law enforcement agent, whom Spear believed to be the mother of two girls, ages seven and nine. During these communications, he persuaded, or attempted to persuade, the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, Spear traveled from Tennessee to Dallas to perform with the Josh Thompson band at a bar in Dallas. That day, he agreed to meet the mom at a restaurant in Dallas, and after he was identified, he was arrested by special agents with the FBI. Spear admitted that many of the messages he sent were sexual in nature and geared toward the “mother’s” seven and nine-year-old daughters. Spear also admitted sending a sexually explicit photo of himself to the “mother,” asking what the girls would think of the photo.
Spear also admitted that he had engaged in sexually explicit communications with other mothers of minor girls, including one in which he offered to pay $200 to engage in sexual acts with the mother’s minor daughter.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Manager of Family-Owned and Operated Grapevine Drug Mart Pleads Guilty to Federal IndictmentRead the Press Release
Defendant’s Father, Larry Lake, Was Convicted at Trial Last Week for Concealing Assets and Tax Evasion
FORT WORTH, Texas — On the day before his trial was to begin in federal court in Fort Worth, Texas, Travis Keith Lake appeared before U.S. District Judge John McBryde and pleaded guilty to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lake faces a maximum statutory penalty of three years in federal prison and a $100,000 fine on each of the three counts; restitution could also be ordered. He will remain on bond pending sentencing, which is set for May 31, 2013.
According to the factual resume filed in the case, Travis Lake manages Grapevine Drug Mart, a family owned and operated pharmacy in Grapevine, Texas. According to an order setting conditions for his release, Travis Lake is a resident of Colleyville, Texas.
Travis Lake’s father, Larry Lake, was convicted last week by a federal jury in Fort Worth on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. According to the public court record, Larry Lake, also a Colleyville resident, owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart. Following his conviction, Larry Lake was remanded into custody pending sentencing, which is also set for May 31, 2013, before Judge McBryde. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count.
According to the factual resume filed in Travis Lake’s case, between 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled.
The factual resume states that Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. Joseph Moss admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Joseph Moss had an additional tax due and owing of $58,554 for that year. Norvell Moss is to be sentenced on May 10, 2013, and Joseph Moss is scheduled to be sentenced on June 24, 2013. They are both residents of Fort Worth, according to orders filed setting conditions for their release.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
Federal Jury Finds Rowlett, Texas, Man Guilty of Selling Firearms Without A LicenseRead the Press Release
Defendant Sold Used Firearms for Resale from His Print Screen Shop in Garland, Texas
DALLAS — Following nearly a week of trial and deliberation, a federal jury has found Jackie Don Burke, 68, of Rowlett, Texas, guilty of engaging in the business of firearms without a license, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Burke faces a maximum statutory penalty of five years in prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for May 24, 2013, before U.S. District Judge Barbara M. G. Lynn.
The government presented evidence at trial that Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, he sold at least 135 firearms in a 14-month period.
In one instance, Burke sold a pistol to an undercover ATF agent without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns, but he maintained that he was simply selling firearms from his personal collection, which is lawful. During his testimony, Burke told the jury, multiple times, that he was simply “too old to go to jail.”
The indictment includes a forfeiture allegation that requires Burke, upon conviction, to forfeit 45 firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle are prosecuting.
Dallas Man Sentenced to 42 Months in Federal Prison in Copyright Infringement CaseRead the Press Release
Former Owner of “In Tha Game Records” Made and Sold DVDs Containing Copyrighted Movies
DALLAS — Victor Karl Shelby, 46, of Dallas, was sentenced by U.S. District Judge Barbara M. G. Lynn on Wednesday to 42 months in federal prison, following his guilty plea in July 2012 to one count of willful infringement of a copyright. Judge Lynn ordered Shelby to surrender to the Bureau of Prisons by March 12, 2013, to begin serving his sentence. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Shelby owned and operated “In Tha Game Records,” which was located on East Illinois Avenue in Dallas, from sometime before September 2008 to November 2009. During that time, Shelby reproduced and sold DVDs containing copyrighted movie pictures. Shelby, or someone at his direction and with his authorization, used digital reproduction equipment located in the business to make copies of the copyrighted movies. Shelby sold each copyrighted movie for approximately $3.00.
As part of his plea, Shelby agreed to forfeit to the U.S. all the merchandise and property purchased and/or seized by law enforcement agents from his shop. That equipment included: two 11-slot DVD burner towers; 21 DVD burner drives; and approximately 2400 copyrighted DVDs.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Paul Yanowitch.
Colleyville, Texas, Business Owner Convicted at Trial on Concealment of Assets and Tax Evasion ChargesRead the Press Release
FORT WORTH, Texas — A federal jury in Fort Worth, Texas, has convicted Larry Lake on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The trial began Monday morning before U.S. District Judge John McBryde.
According to the public court record, Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a pharmacy in Grapevine, Texas.
Lake faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the four counts in which the jury found him guilty. A sentencing date was not set.
The government presented evidence at trial that the day before Lake filed for bankruptcy in November 2004, he knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Lake utilized a “shell” company to assist in concealing the assets.
Additionally, according to evidence presented at trial, Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from Lake’s businesses, VIP and Grapevine Drug Mart.
Further evidence presented by the government at trial showed that from August 2006 through November 2009, Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.
Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he (Lake) had sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecution.
Big Spring, Texas, Man Sentenced to 87 Months in Federal Prison on Cocaine ConvictionRead the Press Release
Law Enforcement Seized Cocaine and More Than $78,000 in Drug Trafficking Proceeds During Execution of Search Warrant
LUBBOCK, Texas — Gabriel Aguilar, 35, of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison, following his guilty plea in October 2012 to an Information charging one count of possession with intent to distribute cocaine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings remanded Aguilar, who had been on bond, to the custody of the U.S. Marshal.
According to documents filed in the case, officers with the Big Spring Police Department executed a search warrant at Aguilar’s residence on December 13, 2011. During the search, Aguilar advised officers that there was approximately 15-19 ounces of cocaine in the house, along with $60,000 in his closet. He stated that he had been selling cocaine for the past year to supplement his salary, but that he was down to his last “bird” or kilogram of cocaine.
In the residence, officers located approximately 2.49 pounds of cocaine in kitchen cabinets and Aguilar’s bedroom closet. A part of that amount was contained in 82 pre-measured, plastic bags that each contained seven grams of cocaine. In addition, officers located drug paraphernalia, such as plastic bags and digital scales, a 9mm semi-automatic pistol and $78,319 in cash that was concealed in clothing in Aguilar’s closet.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Big Spring Police Department. Assistant U.S. Attorney Justin T. Cunningham was in charge of the prosecution.
Southlake, Texas, Man Convicted in Bank Fraud ConspiracyRead the Press Release
Defendant Conspired With Former Vice-President of Pavillion Bank in Richardson, Texas
DALLAS — Late yesterday, following a two-day trial before U.S. District Judge Reed C. O’Connor, a federal jury convicted Jason Dvorin, 45, of Southlake, Texas, on a superseding indictment charging one count of conspiracy to commit bank fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Dvorin will remain on bond pending sentencing, which is set for July 11, 2013 before Judge O’Connor. Dvorin faces a maximum penalty of 30 years in federal prison, a $1 million fine and restitution.
The government presented evidence at trial that Dvorin entered into an agreement with Chris Derrington, the vice president of Pavillion Bank, located on West Campbell Road in Richardson, Texas, to deposit worthless checks in return for immediate access to the bank’s funds. Dvorin would bring in worthless credit card checks, or checks drawn on a closed account, and present them to Derrington for deposit. Knowing the checks were worthless, Derrington gave Dvorin immediate access to the bank’s funds. As soon as one worthless check was returned, Dvorin would deposit another worthless check. This pattern continued over the course of five years and resulted in 224 fraudulent deposits by Dvorin and the Derrington. By the time the scheme was uncovered, Pavillion bank sustained a loss in excess of $300,000.
Derrington, 61 of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. His sentencing date is presently set for February 28, 2013.
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 cases were investigated by the FBI and the FDIC Office of Inspector General. Assistant U.S. Attorneys Mindy Sauter and Michael Elliott are in charge of the prosecutions.
Man Who Sent Obscene Photo to 14-Year-Old Girls via Facebook and Text Messaging Is Sentenced to 87 Months in Federal PrisonRead the Press Release
DALLAS — Andrew Dale McKee, 36, formerly of Oklahoma City, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison, following his guilty plea in October 2012 to one count of transferring obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
McKee admitted that in April 2012, he sent a friend request to Jane Doe, a 14-year-old girl, via Facebook. Jane Doe’s Facebook page was public, listing her name, true birth date, middle school and her cell phone number. After Jane Doe accepted his friend request, McKee text messaged her, engaging in sexually explicit messaging and sending her an obscene photograph.
McKee indicated to Jane Doe that he wanted to engage in sexual activity with her and another friend, “Britany,” who McKee also believed was a 14-year-old girl. Via his cell phone, McKee ultimately persuaded “Britany” to meet him in Garland, Texas, to engage in illegal sexual activity with him. McKee also admits that he sent “Britany” the same obscene image he sent to Jane Doe.
On April 26, 2012, McKee used public transportation to meet “Britany” in Garland, at a prearranged time and place, intending to engage in sexual activity with her. Instead, when he arrived, he was arrested by officers with the Garland Police Department.
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."
The case was investigated by the Garland Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Palmer County, Texas, Man Sentenced to 57 Months in Federal Prison for Committing Armed Robbery of Friona Federal Credit UnionRead the Press Release
AMARILLO, Texas — John Michael Garibay, 22, of Friona, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 57 months in federal prison and ordered to pay $6,541 in restitution for committing the August 27, 2012, armed robbery of the Friona Federal Credit Union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 12:06 p.m. that Monday, a man wearing a gas mask, who was later identified as Garibay, entered the Credit Union, walked to a teller and demanded money. He then pulled a handgun out of his waistband and showed it to the teller. The teller gave Garibay cash, and he left the bank and headed down an alley, spilling some of the cash. He left the scene in a gray Dodge Charger.
Shortly thereafter, law enforcement located Garibay at a residence in a trailer park, where they had observed the gray vehicle. During a search of the residence, officers found items used in the robbery including matching clothing, a black Nike single strap backpack, with a five dollar bill inside the bag, and a bank money strap with “Teller 33" stamped on it. Law enforcement located a .45 caliber plastic case and .45 and .38 caliber handgun rounds in the trash can in the kitchen. Garaby identified an area two spaces down from his trailer where law enforcement located a black .45 caliber semi-automatic Taurus handgun.
As law enforcement transported Garibay to the Randall County Jail, he asked how much time he would get and said, “I made the case for you by telling you where the gun was.”
The case was investigated by the FBI, the Friona Police Department and the Palmer County Sheriff’s Office. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Inmate Admits Threatening Federal JudgeRead the Press Release
AMARILLO, Texas — Larry Boyd Wren, II, 40, appeared in federal court in Amarillo, Texas, yesterday, and pleaded guilty before U.S. District Judge Mary Lou Robinson to one count of mailing a threatening communication. Wren faces a maximum penalty of 10 years in federal prison and a $250,000 fine. 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, in June 2012, while he was incarcerated in the Brown County jail, having been accused of committing several state offenses, Wren penned a letter to U.S. District Judge Sam R. Cummings, expressing his dissatisfaction with his incarceration. He made a threatening comment in the letter and mailed the letter to Judge Cummings at the Federal Courthouse in Lubbock, Texas.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Christy L. Drake, of the U.S. Attorney’s Office in Amarillo, is in charge of the prosecution.
Former Bank Executive Admits Embezzling from Bank of AmericaRead the Press Release
LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, appeared yesterday in federal court and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of embezzlement of funds by a bank employee. Wright, who remains on bond, faces a maximum statutory penalty of 30 years in federal prison, a $1 million fine and restitution. Judge Cummings ordered a presentence investigation report with the 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, 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 is in charge of the prosecution.
Gambling Business Owner Pleads Guilty in Federal CourtRead the Press Release
James Lynn Jones Operated Lot-O-Games in Jones County, Texas
LUBBOCK, Texas — James Lynn Jones, 69 , of Abilene, Texas, pleaded guilty this morning in federal court, before U.S. District Judge Sam R. Cummings, to an Information charging one count of operating an illegal gambling business, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Jones operated the illegal gambling business, Lot-O-Games, on Highway 277 in Jones, County, Texas.
The maximum statutory penalty for the offense is five years in federal prison and a $250,000 fine. However, according to the plea agreement filed in the case, the government will make a non-binding recommendation to the Court that the appropriate sentence is eight months imprisonment, to be satisfied by two months imprisonment and a term of supervised release with a condition that substitutes six months of home detention for the remaining term of imprisonment. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
In addition, according to the plea agreement, Jones agrees to forfeit property that was seized by law enforcement officers last summer, pursuant to federal search and seizure warrants. That property includes $414,163 in cash; $12,337 in cashier’s checks; gold coins; two vehicles; jewelry; firearms; ammunition; numerous gaming machines; surveillance equipment and computer equipment.
According to the factual resume filed in the case, after U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) received information that Jones was operating the business, HSI agents, acting in an undercover capacity, entered the business and observed 25-30 customers playing on various gaming terminals. The agents approached a Lot-O-Games employee and told her they wanted to play on terminals 21 and 22, a slot-machine-type game and a video poker game. One agent handed the Lot-O-Games employee $50 in cash and the employee credited terminal 21 with 5000 credits. The other agent applied $65 worth of credits (6500 credits) from a prior undercover operation to terminal 22.
Soon thereafter, the agents observed James Lynn Jones, carrying a brown paper bag, enter the business and walk to a bar area across from the cashier’s counter where he pulled out two stacks of cash. Immediately after Jones arrived, several patrons exchanged certificates for small pieces of paper at the Lot-O-Games cashier’s counter. The patrons then took that piece of paper to Jones who, in turn, exchanged the small piece of paper for cash. About 20-25 minutes after the agents arrived, they observed the Lot-O-Games employee approach a patron who had won a 120,000 point jackpot. The employee told the patron that she would remove the 120,000 point credit from the machine and allow the patron to cash out the $1,200 in cash with Jones. The agents then saw the patron go to Jones to receive the cash.
One agent concluded playing the video poker game with 4900 credits, approached the Lot-O-Games employee and handed her a $1 bill. The employee, in return, gave the agent five, $10 “Playback Certificates.” The employee told the agent that he/she could get cash because the owner was present and that Sundays were the only days that the business paid out in cash. The Lot-O-Games employee took back the Playback Certificates and gave the agent a small piece of paper with the number “5” and her initials on it. The agent handed the piece of paper to Jones, who, in turn, gave the agent $50 in cash. The other agent followed a similar procedure to obtain $50 in cash from Jones.
The investigation revealed that this was standard practice at Lot-O-Games. During the week, customers would receive Playback Certificates for the points that were remaining after playing at various gambling-type video game consoles. On Sunday, Jones would come to Lot-O-Games and customers could exchange these Playback Certificates for cash. This practice began sometime around late 2010. The investigation further revealed that during a 12-hour shift, the business took in approximately $3,500 - $5,000.
The investigation is being conducted by ICE HSI, the Abilene Police Department, the Jones County District Attorney’s Office, the Office of the Texas Attorney General and the Texas Department of Public Safety. Assistant U.S. Attorney Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution, and Assistant U.S. Attorney Diane Kozub, is handling the forfeiture.
Abilene Man Sentenced to 18 Years in Federal Prison on Conspiracy, Cocaine, Methamphetamine, Marijuana and Firearm ConvictionsRead the Press Release
Drugs and Firearms Were Seized During the Execution of a Search Warrant in August 2011
ABILENE, Texas — Joshua Cisneros, 29, of Abilene, Texas, was sentenced yesterday afternoon by U.S. District Judge Jorge A. Solis, in federal court in Abilene, to a total of 18 years in federal prison. Cisneros was convicted at trial in September in 2012 on all five counts of an indictment charging conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute cocaine; possession with intent to distribute less than 50 kilograms of marijuana; and possession of a firearm in furtherance of a drug trafficking crime. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Cisneros’ co-defendant in the case, Nicholas Albarado, 27, also of Abilene, was sentenced by Judge Solis in November 2012 to 18 years in federal prison. He pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in the case and evidence presented at trial, the Abilene Police Department received information that a residence on Locust Street in Abilene was being used as a marijuana stash house for a drug trafficking organization. On August 30, 2011, agents with the Abilene Police Department went to the residence to conduct a knock-and-talk in reference to a drug trafficking investigation. When Albarado answered the door, there was an overwhelming smell of fresh marijuana. When agents entered the residence based upon exigent circumstances, Albarado escorted them to a bedroom where they met the owner of the residence, as well as Cisneros.
Shortly thereafter, law enforcement obtained and executed a search warrant at the residence. During the execution of that warrant, agents located and seized methamphetamine, cocaine and marijuana, located throughout the house, as well as one stolen rifle and two handguns.
The investigation was spearheaded by the Abilene Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Taylor County Sheriff’s Office.
Assistant U.S. Attorneys Justin Cunningham and Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, were in charge of the prosecution.
Physician Pleads Guilty to Role in Health Care Fraud ConspiracyRead the Press Release
Dr. Daniel K. Leong Owned South Dallas Community Medical Center
DALLAS — On the day his trial was to begin in U.S. federal court, Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, pleaded guilty to one count of conspiracy to commit health care fraud. Leong, who is in federal custody, faces a maximum penalty of five years in federal prison, a $250,000 fine and restitution. Sentencing is set for May 1, 2013, before U.S. District Judge Ed Kinkeade.
Leong’s co-conspirator, Cal Graves, who worked as a physician assistant at the SDCMC, pleaded guilty in July 2012 to the same offense. He is scheduled to be sentenced by Judge Kinkeade on February 13, 2013.
According to plea documents filed in the case, from February 2010 to February 2011, Leong and Graves engaged in a conspiracy to defraud Medicare and Medicaid by falsely representing that office visits and diagnostic tests were medically necessary.
PIn exchange for submitting themselves to diagnostic tests, patients at the clinic were prescribed controlled substances. This ensured that the patients would return to the clinic the next month, thus making themselves available for more tests. Often, patients would exaggerate their pain level to provide a basis for a prescription for narcotics. Leong benefitted from the exaggeration because this gave him “cover” to order more tests. The patients were rarely referred to specialists for their persistent pain and this process was repeated for up to several years without any actual treatment for some patients.
Leong and Graves frequently ordered tests known as electromyograms (EMG), which are used to diagnose neurological and nueromuscular problems. These tests are also highly-reimbursable by Medicare and Medicaid. Often, the results of these tests were never read and Graves did not have the proper training to read them.
In addition, in February 2010, Leong signed a blank prescription that reflected Leong’s authority to prescribe controlled substances. Leong instructed Graves and other SDCMC staff to copy this prescription as needed. When patients came to SDCMC, Graves used the pre-signed prescriptions.
Medicare and Medicaid would not have paid claims for office visits, diagnostic testing, or prescriptions if they had known either that the services were medically unnecessary and that Leong did not prescribe the medications.
The case is being prosecuted by Assistant U.S. Attorneys Michael McCarthy and Mindy Sauter. The investigation was conducted by the FBI, U.S. Health and Human Services (HHS) Office of the Inspector General (OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
Since their 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Ranch Owner in Young County Admits Shooting A Crop-Dusting Aircraft Flying Near His RanchRead the Press Release
Multiple Bullets Struck and Damaged Aircraft
WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, appeared in federal court in Wichita Falls, Texas, this morning and pleaded guilty, before U.S. District Judge Reed C. O’Connor, to an Indictment charging one count of destruction of an aircraft. Riley, who will remain on bond, faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for May 21, 2013, before Judge O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 11:40 a.m., on February 22, 2008, as a pilot flew his crop-dusting aircraft over property adjacent to the Flying Lead Ranch (FLR), a commercial hunting and residential property owned and occupied by Riley, Riley shot the aircraft with a firearm, striking it with multiple bullets and damaging the aircraft. One bullet struck the rudder cable and nearly severed it. A bullet or bullet fragment also struck the V-strut bar, approximately one and one-half inches from the connector bolt. Bullets, or bullet fragments, caused a hole in the aircraft’s left rear wing and indentations on the plane’s left side. The bullet holes and other damage indicated that the aircraft had been shot by someone on the ground discharging a firearm upward into the air. The aircraft was leased by Keeter Aerial Spraying, of Olney, for commercial crop-dusting services in Texas and Oklahoma.
Documents filed further state that prior to the above-stated date, Riley threatened Keeter’s owner, both in person and by phone, that he would shoot down any crop-duster that flew over his hunting ranch. In August 2010, officials with Texas Parks and Wildlife, seeking evidence of illegal hunting, executed a search warrant at the FLR and discovered a disc that contained video footage of Riley firing approximately 23 shots at another Keeter aircraft spraying the same field in July 2007. In September 2010, when questioned by a Texas Ranger, Riley admitted to shooting at Keeter aircraft on more than one occasion, as he had threatened to do.
The case is being investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Family Members Charged in Mail Fraud Conspiracy Involving Local Travel Agency Are Arrested by U.S. Postal Inspectors in New YorkRead the Press Release
DALLAS — Three Dallas residents, Jorge Armando Flores, 45, his wife Roxana Flores, 43, and her son, Julio C. Funes-Alas, 27, were arrested by U.S. Postal Inspectors this morning in Amityville, New York, on conspiracy and mail fraud charges outlined in a 19-count indictment returned by a federal grand jury in Dallas last week, and unsealed today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. All three defendants appeared before a U.S. Magistrate Judge, who ordered that they be detained and transported to the Northern District of Texas for further court proceedings.
According to the indictment, Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to subagents, or retail travel agencies, that in turn would sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
The indictment alleges that beginning at least as early as March 2007, and continuing until August 2011, the three defendants conspired with each other, and others, to commit mail fraud by converting to their benefit, checks that were mailed to Gateway from subagents. As part of the conspiracy Jorge Flores circumvented accounting procedures and caused checks mailed by subagents to Gateway to be diverted and deposited into bank accounts that the defendants set up and controlled. When a check was received, Jorge Flores would forge the signatory’s notation on a photocopy to indicated the subagent’s check had been received and then deliver the falsified photocopy to the accounts receivable department for recording. The original check would be diverted into bank accounts that the defendants had set up to receive the stolen funds. The defendants would then write checks, withdraw funds, make electronic withdrawals or transfers, make ATM withdrawals, and make debit purchases on these accounts for their personal benefit and use.
In addition to the conspiracy count, Jorge Flores is charged with 18 counts of mail fraud; Roxana Flores is charged with 12 counts of mail fraud; and Julio C. Funes-Alas is charged with six counts of mail fraud. Each of these counts represents a check of between $9,000 and $33,000 from the subagent to Gateway, which was diverted by the defendants.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, each count of the indictment carries a maximum penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Dallas Man in Federal Custody for Aiming A Laser Pointer at AircraftRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Joel Pagan,” 22, has been charged in a federal criminal complaint with aiming a laser pointer at an aircraft. It is anticipated that he will make his first appearance in federal court in Dallas this afternoon at 2:00 p.m., before U.S. Magistrate Judge Paul D. Stickney. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed late yesterday in federal court in Dallas, at approximately 4:08 a.m. yesterday morning, January 28, 2013, uniformed Dallas Police Department (DPD) officers were operating a DPD helicopter, flying over the area of 8000 Umphress in Dallas, when the cockpit was illuminated, approximately four times, by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.
The DPD officers in the helicopter pinpointed the location in Dallas where the laser originated and directed officers on the ground to a residence at 7719 Lake June Road, where the laser light originated from the back yard. Santodomingo answered the officers’ knock at the front door of the residence. Officers explained that an individual was observed illuminating the DPD helicopter with a laser pointer from the back yard and was then seen running into the house through the back door. After officers informed Santodomingo that the incident had been recorded, he admitted pointing the green laser light at the helicopter to see how far it would go. The officers obtained the laser pointer from Santodomingo.
The complaint further notes that the video taken by the DPD helicopter showed that the individual using the laser in the backyard fit the description of Santodomingo and appeared to wear the same short style underwear at the time of the offense that Sandodomingo was wearing when talking with officers.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense charged, however, is five years in prison and a $250,000 fine.
The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Federal Grand Jury Indicts North Texas Men in $2.6 Million Stolen Refund Identity Theft Fraud ConspiracyRead the Press Release
DALLAS — A federal grand jury in Dallas has returned an indictment charging Tonderai Sakupwanya and Reminico Zhangazha each with one count of conspiring to commit mail fraud and wire fraud stemming from a federal income tax refund identity theft scheme they ran from May 2009 through May 2012. Sakupwanya is scheduled to make his initial appearance in federal court this afternoon before U.S. Magistrate Judge David L. Horan. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Sakupwanya, aka “Pound, Webster Rice, Floyd Roberts and Floyd Robbins,” is presently in federal custody, having pleaded guilty in October 2012 to an Information, filed in the Northern District of Texas, charging false use of a passport. He faces up to 10 years in prison and a $250,000 fine for that conviction; sentencing is set for March 18, 2013.
Zhangazha, aka “Boss Remy,” “Martin V. Masters and Roy Daniel Black,” is presently in federal custody in the Eastern District of Texas, where he has pleaded guilty to one count of making a false statement in the use of a passport. According to the factual resume filed in that case, Zhangazha is a citizen of Zimbabwe, with permission to temporarily reside in the U.S.
The indictment, returned last week in Dallas, alleges that Sakupwanya and Zhangazha conspired together, and with others, to commit mail fraud and wire fraud to obtain approximately $2.6 million in federal income tax refunds by electronically filing multiple fraudulent income tax returns containing stolen personal identification information.
As part of the stolen identity refund fraud conspiracy, according to the indictment, the defendants obtained personal identifying information from other persons without their knowledge or authorization. They also obtained electronic filing identification numbers “EFIN” that were assigned by the Internal Revenue Service (IRS) to professional tax preparers. To further the conspiracy, according to the indictment, using fraudulent identification, the defendants rented private mail boxes to establish mailing addresses and established bank accounts at various financial institutions to receive the fraudulently obtained tax refunds.
The indictment alleges the defendants prepared fraudulent income tax returns by using the stolen identities and used false income and withholding information to produce a purported tax refund. They then electronically filed the fraudulent returns which resulted in approximately $2.6 million in fraudulently obtained funds to be deposited into bank accounts they controlled. According to the indictment, they withdrew the cash and used it for their personal use and enjoyment.
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, each of the defendants faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, the indictment includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit to the U.S. any proceeds traceable to the offense, including approximately $105,000 seized in May 2012 from Zhangazha’s vehicle, his apartment and a residence on Spring Mountain Drive in Plano, Texas.
In September 2012, the Department of Justice announced a new directive to further the efforts of the Department’s Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to fight stolen identity refund fraud.
The case is being investigated by IRS Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Lubbock Man Sentenced to Nine Years in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — James Galen Brown, 40, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to nine years in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to one count of transportation of child pornography. Brown admitted that he used his cell phone, and its texting functions, to intentionally send and receive images and videos of child pornography. Judge Cummings ordered that Brown surrender to the Bureau of Prisons on March 1, 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, on June 1, 2012, Special Agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) interviewed Brown after receiving information that a telephone number assigned to Brown had received text messages with attachments of child pornography. Brown admitted that he used the cell phone to communicate with other individuals who shared an interest in sexually explicit images and videos of minors, and he used his cell phone to trade the material with those persons. He located these persons on Internet chat rooms and exchanged phone numbers with them, and then traded the child pornography images and videos by attaching them to text messages.
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 www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."
Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
Lubbock Man Sentenced to 135 Months in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
LUBBOCK, Texas — Richard Mendoza, 22, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 135 months in federal prison and a 15-year term of supervised release, following his guilty plea in October 2012 to one count of receipt of child pornography. He has been in custody since his arrest in August 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2012, while searching on the Internet for videos depicting minors engaging in sexually explicit conduct, Mendoza intentionally and knowingly downloaded a digital video file depicting a female child, under the age of 18, engaged in sexually explicit conduct.
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 www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.
Former Middle School Teacher Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas
DALLAS — Daniel Oberlender, 45, a former choir teacher at Cross Timbers Middle School in Grapevine, Texas, pleaded guilty in federal court yesterday to a criminal Information charging one count of distribution of child pornography. He faces a maximum statutory penalty of not less than five years, or more than 20 years, in federal prison, a lifetime of supervised release and a $250,000 fine. Sentencing is set for June 20, 2013, before U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Oberlender has been in federal custody since December 20, 2012, when he was arrested on a federal criminal complaint that was filed after law enforcement executed a search warrant at his residence in Grapevine on December 18, 2012. According to documents filed in the case, Oberlender used his Apple Macbook computer to connect to the Internet and use Skype software to share a video file depicting a minor engaged in sexually explicit conduct.
Specifically, according to the factual resume filed in the case, on August 5, 2012, Oberlender used Skype to communicate with a person known as “DJH.” During that communication, Oberlender permitted DJH to remotely view the entire contents of his computer screen. Oberlender then began playing a video file, viewable by DJH, that depicted an adult male and a minor male engaged in sexually explicit conduct. The minor male, whose eyes are shut during the entire video, appears to be approximately five or six-years-old. DJH, who was located in Dallas, used Evaer software to capture and record the contents of Oberlender’s computer screen, to include the transmission of the video.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."
The investigation is being conducted by the FBI. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Former Convenience Store Owner Sentenced to Nearly Five Years in Federal Prison for Food Stamp Fraud, Wire Fraud and Conducting an Unlicensed Money Transmitting BusinessRead the Press Release
Defendant, Who Owned a Convenience Store in Arlington, Texas, Also Ordered to Pay More Than $1.4 Million in Restitution
FORT WORTH, Texas — Ali Ugas Mohamud of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 13 concurrent sentences of 57 months each, following his guilty plea in October 2012 to an indictment charging him with seven counts of food stamp fraud, five counts of wire fraud and one count of conducting an unlicensed money transmitting business. In addition, Judge McBryde ordered that Mohamud pay $1,418,027 in restitution, $98,000 of which is payable immediately. 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, Mohamud owned Tawakal Grocery Store, located on South Collins Street in Arlington, and was authorized to participate in the United States Supplemental Nutrition Assistance Program (SNAP), formerly known as the “Food Stamp Program.” SNAP recipients are issued an electronic benefit card (EBT), commonly referred to in Texas as a “Lone Star Card,” in order to access SNAP benefits.
From time to time, beginning in 2009, Mohamud knowingly exchanged food stamp benefits for cash or wired money to other individuals in Somalia using food stamp benefits. As part of his scheme to defraud and to obtain money, from September 2008 through February 2010, Mohamud also wired thousands of dollars from Affiliated Computer Services, Inc., which operates EBT management for retailers, to his bank in Arlington.
The case was investigated by the U.S. Department of Agriculture - Office of Inspector General, Internal Revenue Service Criminal Investigation, the Texas Health and Human Services Commission - Office of Inspector General and the U.S. Department of Housing and Urban Development - Office of Inspector General.
Assistant U.S. Attorney J. Michael Worley was in charge of the prosecution.
Federal Jury Convicts Fort Worth Man in Methamphetamine Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Following an afternoon of testimony before U.S. District Judge John McBryde, and five hours of deliberation, a federal jury convicted Josue Martinez-Garcia, aka “Cholo,” of conspiring to possess with the intent to distribute more than 500 grams of methamphetamine. Martinez-Garcia, 29, of Fort Worth, Texas, faces a statutory sentence of not less than 10 years and up to life in federal prison and a $10 million fine. Sentencing is set for May 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that beginning at least in 2010, Martinez-Garcia conspired to distribute more than 500 grams of methamphetamine The government’s case consisted of numerous witnesses, including two cooperators who had distributed for Martinez-Garcia and an undercover agent who had negotiated with Martinez-Garcia to purchase two kilograms of methamphetamine.
Co-defendant in the case, Jacob Fenton, aka “Solo,” 29, also of Fort Worth, who testified at trial, pleaded guilty in October 2012 to one count of conspiracy to distribute and possess with the intent to distribute methamphetamine, and faces a statutory sentence of up to 20 years in federal prison and a $1 million fine. Sentencing is set for February 1, 2013.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys Matt Gulde and Aisha Saleem.
Tarrant County Man Sentenced to 10 Years in Federal Prison in Murder-for-Hire CaseRead the Press Release
Ryan Walker Grant Operated Sexually-Oriented Business in Arlington, Texas
FORT WORTH, Texas — Ryan Walker Grant, 34, Kennedale, Texas, was sentenced yesterday by U.S. District Judge Terry Means to 120 months in federal prison following his guilty plea in September 2012 to one count of murder-for-hire, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Grant has been in custody since his arrest on April 9, 2012, on a related charge outlined in a criminal complaint filed the previous day.
Grant is a co-owner of Flashdancer, a sexually-oriented business in Arlington, Texas, that had been the subject of a nuisance lawsuit filed by the Texas Attorney General’s Office and the City of Arlington, which resulted in the club’s closing. According to the criminal complaint filed in the case and testimony at Grant’s preliminary and detention hearing, Grant tried to hire individuals from Mexico, through an intermediary, to kill Arlington Mayor Robert Cluck and Tom Brandt, a Dallas attorney who represents the City of Arlington in cases involving sexually-oriented businesses. Grant was angry at the men because he felt that they were costing him money by trying to prevent him from re-opening Flashdancer.
On April 3, 2012, according to the factual resume filed in the case, Grant sent a text message from his cell phone to a confidential informant (CI) requesting a return call. When the CI called Grant, Grant requested a personal meeting with him and discussed, using coded language, Grant’s desire that a murder be committed. The CI traveled to Grant’s home in Kennedale where Grant provided the CI with pictures of two individuals, Robert Cluck and Tom Brandt, whom he wanted killed. Grant asked if the CI was able to direct individuals from Mexico to travel to the U.S. and murder them. Grant offered to pay $10,000 per victim.
Shortly thereafter, when law enforcement executed a search warrant at Grant’s residence, they seized 22 firearms and nearly $150,000 in cash.
The investigation was conducted by the FBI and the Drug Enforcement Administration. Assistant U.S. Attorney Chris Wolfe prosecuted.
Grand Prairie, Texas, Man Sentenced to 210 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Richard Warner, 45, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 210 months in federal prison and a 10-year term of supervised release, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Warner has been in federal custody since he entered that guilty plea on August 31, 2011.
According to documents filed in the case, Warner admits that in 2008 he was involved in trading images of child pornography over the internet. He further admits that on January 11, 2011, when FBI Special Agents knocked on the door of his Grand Prairie, Texas, residence, he agreed to speak to them about his activities involving child pornography on his computer. He acknowledged that he first became interested in child pornography in 2004-2005, he preferred thin, preteen boys engaged in sexually explicit conduct, and some of his child pornography images and videos also contained bondage and bestiality.
Warner allowed his computer and hard drive to be searched and indicated that in addition to numerous images and videos of child pornography, the FBI would also find stories he had written describing sadistic sexual escapades between an adult male and a minor boy. A forensic analysis conducted by the North Texas Regional Computer Forensic Laboratory on Warner’s computer and external hard drive revealed several thousand images and videos of child pornography in addition to sexual and sadistic stories about an adult male and a 10-year-old boy.
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 www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Camille Sparks.
Fort Worth Man Sentenced to 10 Years in Federal Prison OnFederal Firearms ConvictionsRead the Press Release
FORT WORTH, Texas —Booker Bernard Preston, 38, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to a total of 10 years in federal prison, following his conviction at trial in September 2012 on one count of selling a firearm to a convicted felon and one count of possessing an unregistered sawed-off shotgun. As part of the sentencing hearing, Judge McBryde found that Preston committed perjury during his trial. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During trial, the government presented evidence that in August 2010, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information from a confidential informant that an individual, later identified as Preston, was selling a large amount of handguns and rifles, and that he was known to take and fill orders for firearms and not require any paperwork to purchase the firearms.
In an undercover operation on November 15, 2010, Preston sold a Bryco, Model 48, .380 caliber semiautomatic pistol to a convicted felon. On November 19, 2010, a federal search warrant was executed at Preston’s residence, during which 24 firearms were seized, including a sawed-off shotgun, which Preston stated he had made the previous week.
The case was investigated by ATF and prosecuted by Assistant U.S. Attorney John P. Bradford.
Federal Grand Jury Indicts 20 in Marijuana Trafficking ConspiracyRead the Press Release
Two Defendants Also Charged in Money Laundering Conspiracy
DALLAS — A federal indictment, returned by a grand jury in Dallas last month, charging 20 Dallas-Fort Worth area residents with conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, has been unsealed. More than half of the defendants are in custody, following an operation this week conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service Criminal Investigation (IRS-CI); the Dallas High Intensity Drug Trafficking Areas (HIDTA); the Desoto, Dallas, Balch Springs, Arlington and Midlothian Police Departments; Dallas County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Dallas County District Attorney’s Office. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the course of the Organized Crime Drug Enforcement Task Force (OCDETF) operation, law enforcement executed federal and state search warrants that resulted in the seizure of approximately 25 pounds of hydroponic marijuana, more than 600 marijuana plants, 10 vehicles and five firearms.
The indictment charges the below-named defendants in the drug conspiracy:
- Sylvespa Eugene Adams, aka “Sylvesta Adams,” “Pa,” and “Paw,” 31
- Alma Diane Smith, aka “Diane Williams,” 30
- Michael Wayne-Cortez Ayers, aka “Big Mike,” 33
- Isaac Demon Mathis, aka “Ike” “Issac Damone Mathis,” 30
- David Laploise Jones, aka “Nino,” 31
- Kory Lamonte Crayton, aka “Mokmu Tave” and “Coon,” 39
- Taurus Kion Silmom, aka “T.K.,” 30
- Nathan Dewayne Brown, 21
- Connell Heads, 50
- Marvin Jamel Fantroy, aka “Seven,” 32
- Lamondrius Denard Kidd, 28
- Modrick Jamal Spencer, 28
- Waymon Madison, 39
- Edward Lee Witherspoon, 50
- Robin James Criss, aka “June Bug,” 30
- Andre Demacus Reid, aka “Black,” 27
- Rachael O’Neal, 20
- Natasha Brown, 34
- Jovanna Renee Bonner, 19
- Precious Starr Lecreas Gowans, 30
Defendants Sylvespa Eugene Adams and Alma Diane Smith are also charged with one count of conspiracy to commit money laundering. The indictment alleges that since January 2010, Adams and Smith conspired together, and with others, to conduct financial transactions involving the proceeds of their crime that were designed to conceal and disguise the nature, location, source or ownership of the proceeds. The indictment alleges that they stored and concealed drug proceeds, caused cash to be transported as payment for drugs, disposed of proceeds derived from the distribution and sale of narcotics by purchasing assets to conceal and disguise the nature and source of the proceeds, structured deposits of U.S. currency and used a business front to create the appearance of a legitimate of source of funds to hide the true nature and source of the funds.
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 to possess with the intent to distribute marijuana count carries a statutory sentence of at least five years and up to 40 years in federal prison and a $5,000,000 fine. The conspiracy to commit money laundering count, upon conviction, carries a maximum penalty of 20 years in federal prison and a $500,000 fine.
In addition, the indictment includes a forfeiture allegation, which would require convicted defendants to forfeit the proceeds of their criminal activity. It would also require some of the defendants, upon conviction, to forfeit numerous vehicles, including a Mercedes, Porsche and Bentley, as well as numerous pieces of real estate.
Assistant U.S. Attorney Phelesa Guy is in charge of the prosecution.