Northern District of Texas

LUBBOCK, Texas — Harley Graves, 29, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 41 months in federal prison, following his guilty plea in August 2012 to one count of conspiracy to manufacture, possess and pass counterfeit U.S. currency. In addition, Graves was ordered to pay $4,600 restitution, jointly and severally with his two convicted co-defendants. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The two other defendants who were charged in the case have been convicted and were sentenced last month. Thomas Vasquez, 36, of Lubbock, pleaded guilty to a misprision of a felony and was sentenced to six months in federal prison and Augustine Moreno, 50, pleaded guilty to one count of conspiracy to possess and pass counterfeit U.S. currency and was sentenced to 27 months in federal prison. Graves and Moreno have been in custody; Vasquez was ordered to surrender to the Bureau of Prisons on January 25, 2013.

According to documents filed in the case, Graves admitted that he came to Lubbock to do a large counterfeit deal that was arranged by Vasquez. He also admitted that he manufactured counterfeit U.S. currency in his hotel room in Lubbock. He also admitted that he passed some of that currency at small restaurants in Lubbock. Moreno admitted that he obtained counterfeit currency from Vasquez and that he assisted others in passing the currency by driving them to various locations in his car. Moreno also admitted that he passed several counterfeit bills at small restaurants and a Kohls in Lubbock. Vasquez admitted allowing individuals that he knew possessed the counterfeit currency to use his car to deliver the counterfeit currency to other individuals who would pass it or to individuals who passed the currency themselves, and did not make it known to authorities. He also allowed individuals to stay at his house while making the counterfeit currency.

The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Ann Roberts was in charge of the prosecution.

DALLAS — Jesus Ventura, 37, of Irving, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 46 months in federal prison following his guilty plea in September 2012 to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, on April 10, 2012, Ventura robbed the Chase Bank, located at 1881 Sylvan Avenue in Dallas.

The affidavit filed with the criminal complaint states that when Ventura entered the bank, he asked an employee if he could use the restroom. The employee provided Ventura with the door code and informed him that the restroom was located in the office building’s lobby. Ventura left the bank lobby, but soon returned and was greeted by a teller offering her assistance. Ventura replied in a low-toned voice, “I am sorry to do this to you, I really am. Give me all the money.”

The affidavit further states that the teller, who had only been employed at the bank for two weeks, stared at the robber, and he repeated several more times for her to give him the money. She stood at the counter, and Ventura’s voice became more aggressive when he said, “Give me all the money” and raised his black backpack as he continued demanding money. The teller feared that he had a weapon in the backpack. She gave Ventura the money and he took a $20 bill from the money and slid it underneath the glass to the teller and stated, “Here is a tip for you.”

Officers with the Dallas Police Department (DPD) arrested Ventura a short time after the robbery. Officers recovered no weapon, but recovered the black backpack and the money stolen from Chase Bank.

The FBI and the DPD investigated; Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.

DALLAS — A federal grand jury in Dallas returned an indictment late yesterday charging Azeez Ahmed Al-Ghaziani with one count of possession of a firearm by an unlawful user of a controlled substance and one count of fraudulent production of an identification document. Al-Ghaziani, 30, of Fort Worth, Texas, has been in custody since his arrest in October 2012 by officers with the Hurst Police Department. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that on October 2, 2012, Al-Ghaziani, an unlawful user of, and addicted to, a controlled substance, knowingly possessed a .40 caliber Smith & Wesson pistol and a Hawk Industries 12-gauge shotgun. It further alleges that on the same date, Al-Ghaziani produced fraudulent U.S. military and U.S. government identification badges that appear to have been issued by, or under the authority of, the United States.

According to the criminal complaint filed in the case, officers with the Hurst Police Department were contacted on October 2, 2012, about a suspicious truck that was parked behind a strip center on Grapevine Highway in Hurst. When officers arrived and looked through the truck’s windows, they noticed two gun carrying cases. Officers determined that Al-Ghaziani was the vehicle’s owner, but after all efforts failed to locate him, and because law enforcement believed the vehicle may have been used for military law enforcement purposes, officers decided to enter the unlocked truck to locate contact information for the owner and safeguard any firearms that might be in the truck.

Inside, officers located a duffle bag that contained fraudulent identification badges, an unloaded .40 caliber Smith & Wesson pistol, chrome tape that appeared to have been used to mimic the appearance of a microchip on the identification badges, three Department of Defense (DoD) vehicle registration decals and zip-lock type bags commonly used in the distribution of illegal narcotics. An unloaded 12-gauge shotgun, ammunition for the shotgun and a magazine containing approximately 12, .40 caliber rounds were also found in the truck.

Al-Ghaziani was questioned after officers noticed him exiting a dry-cleaning business that he said he owned in the strip center. Officers obtained a state search warrant for the business and seized additional fraudulent U.S. military and U.S. government identification badges and other items including plastic badge holders containing fraudulent Central Intelligence Agency (CIA) credentials; DoD military credentials, methamphetamine, drug paraphernalia, a laptop computer and thumb drive.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the firearm count carries a maximum penalty of 10 years in prison and a $250,000 fine and the production of identification documents count carries a maximum penalty of 15 years in prison and a $250,000 fine.

The investigation is being conducted by the Hurst Police Department, the Naval Criminal Investigative Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.

Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU

DALLAS – Theresa Portillo, 44, of Dallas, pleaded guilty late yesterday before U.S. Magistrate Judge Renée Harris Toliver to a felony Information charging one count of embezzlement of funds from a credit union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Portillo faces a maximum statutory sentence of 30 years in federal prison, a $1 million fine and restitution. In addition, according to the terms of the plea agreement, Portillo voluntarily agrees to forfeit several parcels of real estate in the Dallas-Fort Worth area, as well as personal property and a timeshare in Cabo San Lucas, Mexico. Portillo will remain on bond pending sentencing, which is set for May 10, 2013, before U.S. District Judge Barbara M. G. Lynn.

According to documents filed in the case, from 2001 to October 2012, while employed at the credit union, including the time she served as its Chief Executive Officer, Portillo used deception to fraudulently obtain at least $3,421,000 from 18 different financial institutions in connection with her sale of several certificates of deposits (CDs). She used online services to contact several financial institutions interested in purchasing CD accounts at the credit union.

When a financial institution was willing to purchase a CD, Portillo gave the financial institution wiring instructions to send the purchase funds to a JP Morgan Chase account in the name of the credit union. Portillo used this Chase account to enable the embezzlement because she knew that credit union officials thought the account was inactive; the account wasn’t recorded on the credit union’s general ledger; and she had sole control of the account. Portillo also concealed her theft of stolen credit union funds by opening a separate credit union account using a false and fictitious name. Portillo avoided detection of the scheme by writing checks using this fictitious name to disburse stolen credit union funds.

After the financial institutions wired funds into the Chase account, Portillo fraudulently disbursed and used these embezzled and stolen credit union funds to purchase motor vehicles, real property and jewelry for her personal use, as well as for family and friends. She also used embezzled funds to pay credit card bills, fund vacations, pay family medical expenses and remodel houses.

The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

DALLAS — Jason Cano appeared today in federal court in Dallas, before U.S. Magistrate Judge Renée Harris Toliver, and pleaded guilty to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Cano faces a maximum penalty of five years in federal prison on the fraudulent claims count. The aggravated identity theft count carries a mandatory penalty of two years in federal prison, which must be served consecutively to any sentence he receives on the false claims count. In addition, each count carries a possible fine of up to $250,000 and restitution could be ordered. Sentencing is set for May 10, 2013.

A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.

According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.

The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.

In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.

According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.

In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/

IRS-CI is in charge of the investigation; Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.

Defendant Faces Up to Life in Prison

ABILENE, Texas — Frank Esparza, Sr., 40, of El Paso, Texas, appeared today before U.S. Magistrate Judge E. Scott Frost and admitted committing the September 27, 2012, armed robbery of First Bank Texas (FBT), SSB, in Abilene, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Esparza pleaded guilty to one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. The armed bank robbery count carries a maximum statutory penalty of 25 years in federal prison and a $250,000 fine, and the firearm count requires imprisonment for a period of not less than seven years and up to life, and a $250,000 fine. Esparza remains in federal custody; a sentencing date was not set.

According to plea papers filed in the case, at approximately 4:30 p.m. on September 27, 2012, a Hispanic male wearing a dark hooded jacket, sunglasses and a ski mask, who was later identified as Esparza, entered FBT and approached the teller counter. Esparza pointed a .25 caliber pistol at the tellers and said: “you know what this is.” Esparza then walked behind the teller counter, held up a plastic grocery bag, and demanded money from the tellers. The tellers gave Esparza the money and he said: “thank you ladies, I did not want anyone to get hurt.” As he began to exit the bank, an FDIC auditor was also leaving the bank and Esparza pointed the pistol at the auditor and told him not to say anything. Esparza then fled the scene.

The plea papers also state that Esparza was driving an 18-wheeled tractor-trailer to Lubbock when it broke down in Abilene and that his son and a friend picked him up. Esparza said he decided to rob a bank because he needed a quick way to obtain money. His son and the friend took him to a bank, but it was closed when Esparza tried to go inside and rob it. They then took him to FBT, where, after his son went inside the bank to get an idea of what was inside, Esparza entered the bank and robbed it, using a .25 caliber pistol he had acquired earlier in the day.

The investigation is being conducted by the FBI and the Abilene Police Department. Assistant U.S. Attorney Jeffrey R. Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.

DALLAS – Eldon A. Gresham, Jr., 67, pleaded guilty late Thursday afternoon, before U.S. District Judge Jorge A. Solis, to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam that he ran from January 2004 through June 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Gresham, formerly of Olney, Texas, who is representing himself in the case, was set to go on trial next Monday, January 14, 2013, on a superseding indictment charging four counts of mail fraud.

Gresham faces a maximum statutory sentence of 20 years in prison, a $250,000 fine and restitution. However, in accordance with the terms of the plea agreement, if the Court accepts the plea, the parties agree that the maximum prison term shall be at the bottom end of the U.S. Sentencing Guideline range that is ultimately determined by the Court. In addition, Gresham shall forfeit a money judgment to the U.S. in the amount of $15.8 million, constituting the proceeds obtained from his offense. A sentencing date has not been set.

Gresham is presently in federal custody, having been arrested in Georgia on December 13, 2012, for violating the conditions of pre-trial release. It is expected that a bond hearing will be held in the near future.

According to the superseding indictment, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.

As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme. He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.” He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.

According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading. He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits. Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.

The U.S. Postal Inspection Service is in charge of the investigation. Assistant U.S. Attorneys David Jarvis and J. Nicholas Bunch are prosecuting.

Plano Father and Son Currently Serving Federal Prison Sentences for Roles in the Fraud

DALLAS — Adley Husni Abdulwahab, 37, was sentenced today by U.S. District Judge Barbara M. G. Lynn to the statutory maximum sentence of 10 years in federal prison for his role in an investment fraud scheme that he and two other defendants ran from 2006 - 2007 in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Abdulwahab was also ordered to pay nearly $13 million in restitution, jointly and severally with two other defendants who were charged in a related separate case, to the more than 175 victims they had defrauded, and he was ordered to forfeit any proceeds from the crime.

In pronouncing the sentence, Judge Lynn noted that this was a “horrible crime” and “a lot of elderly people lost their life savings.” Judge Lynn ordered that this sentence be served consecutively to the 60-year federal prison sentence that Abdulwahab is currently serving for his role in another securities fraud scheme out of the Eastern District of Virginia.

In the Northern District of Texas case, Abdulwahab, aka Adley H. Wahab, pleaded guilty in March 2012 to one count of engaging in a monetary transaction in property derived from unlawful activity (securities fraud). In related cases, Michael Wallens, Sr., formerly of Nantucket, Massachusetts, and his son, Michael Wallens, Jr., formerly of Plano, Texas, each pleaded guilty in 2010 to one count of securities fraud. Wallens, Sr. was sentenced to 54 months in prison and Wallens, Jr. was sentenced to 60 months in prison.

According to documents filed in the case, Abdulwahab and the Wallens’ offered and sold to investors Collateral Secured Debt Obligations (CDSOs), issued by W Financial Group. CDSOs are promissory notes and a type of security also known as an investment contract. Investors contributed money to a common enterprise, and in exchange, they expected to earn investment returns from the entrepreneurial efforts of persons associated with W Financial. Abdulwahab and the others defrauded investors by deceiving them about the safety of the CSDOs and the ways in which money invested in CSDOs was used.

Acting personally, and through sales agents, Abdulwahab, Wallens, Sr. and Wallens, Jr. offered and sold CSDOs with a total face value of more than $17 million to approximately 180 investors. Investors received several million dollars in payments from W Financial Group in return for their investments, but ended up losing more than $12 million.

Through the printed offering materials and other communications, Abdulwahab, Wallens, Sr. and Wallens, Jr. misrepresented a number of material facts to investors. For instance, they claimed that the insurers Lloyd’s of London and Republic Group “reinsured” the CSDOs, when in fact, as they well knew, the CDSOs were not insured. They also claimed that W Financial Group would enter into a “relationship of trust” with each investor, in which W Financial Group would comply with all the obligations of a fiduciary. In reality, however, as they well knew, they intended to betray and had betrayed the investors’ trust by using investor money for their own personal benefit, such as purchasing Wallen Sr.’s used car dealership from him; purchasing residential lots; and investing in a home building company and a power company.

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, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorney Alan M. Buie was in charge of the prosecutions.

Co-Conspirator Also Murdered a Brinks Security Guard

DALLAS — Jesus Sandoval, 50, appeared in federal court this morning and pleaded guilty, before U.S. District Judge Barbara M. G. Lynn, to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 28, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing a firearm in furtherance of a crime of violence. The conspiracy count carries a maximum penalty of five years in federal prison and each of the firearm counts carry a maximum penalty of life in prison. Each count also carries a maximum potential fine of $250,000. Sentencing is set for May 10, 2013, at 1:30 p.m., before Judge Lynn.

Sandoval and Lopez, were arrested, by officers with the Balch Springs Police Department, as they fled the scene after committing the armed robbery of the Chase Bank on Lake June Road in Balch Springs, Texas, on October 3, 2009.

Lopez was sentenced in October 2012 to two life sentences plus 85 years in federal prison for murdering a Brinks Security Guard and committing five violent, takeover-style, armed bank robberies.

Factual resumes filed in the case detail the robberies. On February 13, 2009, Lopez and Sandoval, armed with firearms, robbed a Loomis security guard as he replenished cash in an automatic teller machine (ATM) located at the Bank of America on Camp Wisdom Road in Dallas. Lopez grabbed the guard from behind, put a pistol to his neck, threatened to kill him and demanded money. The two took the guard’s service weapon and money bags, and Lopez fired at the Loomis driver.

On August 1, 2009, Lopez and Sandoval, each armed with a firearm, robbed the Wachovia Bank located at 39703 Lyndon B. Johnson Freeway, in Dallas, threatening bank employees with death during the course of the robbery. After taking the cash, they fled in a vehicle fitted with stolen license plates.

On the morning of October 3, 2009, Sandoval and his accomplice, Lopez, each armed with a loaded pistol, entered the Chase Bank located at 12329 Lake June Road in Balch Springs. The bank was celebrating its grand opening and more than 40 people were in the bank. Lopez and Sandoval, with their pistols, threatened the lives of the people inside the bank and claimed they had a bomb in the backpack that would detonate if anyone notified the police. Following a high-speed chase, Lopez and Sandoval were arrested. Police recovered the loaded pistols, the bank’s money and the backpack from the car, which, while it did not contain a bomb, contained two boxes of ammunition.

The case was investigated by the FBI, the Dallas Police Department and the Balch Springs Police Department. Assistant U.S. Attorneys Brandon McCarthy and Jerri Sims prosecuted.