Northern District of Texas
Press releases recorded for this federal judicial district.
3 Plead Guilty to Robbing Mail Carrier at GunpointRead the Press Release
Three men pleaded guilty to stealing a U.S. Postal Service arrow key, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jlynn Laneil Dunn, age 21, Daylin Darden, age 24, and D Colby Vashion Lewis, age 23, were charged via criminal complaint in February and indicted the following month. Each pleaded guilty to robbery of mail matter, money, or other property of the United States, entering their pleas on May 8.
According to plea papers, the defendants admitted they robbed a letter carrier at gunpoint on Oct. 2, 2023.
The carrier, identified in court documents as T.W., reported to police that the robbers demanded a U.S. Postal Service master key used by letter carriers to gather mail deposited in blue collection boxes. (Unauthorized possession of these keys allows individuals to illicitly access mail boxes to steal victim mail, checks, credit cards, bank account information, and other sensitive information.)
Surveillance video captured the robbery and the defendants’ subsequent flight.
During a search of an address associated with one of the defendants, law enforcement recovered guns, drugs, mail, checks, and a DVR system. DVR footage showed all three robbers gathered at the residence prior to the robbery on Oct. 2. On the video, Mr. Darden can be seen exiting the residence with a gun matching the one used during the robbery. The DVR also showed them return to the residence after the robbery. On the video, Mr. Dunn can be seen holding a small item attached to a long gold chain — the same type of chain used to carry USPS arrow keys.
A subsequent search of Mr. Dunn’s Instagram account revealed a direct message Mr. Dunn sent 10 to 12 minutes before the robbery that read, “I’m tryna go get us a key rn so I can get these real scam Money.”
The defendants now face up to 10 years in federal prison; sentencing is set for Sept. 3.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Fort Worth and Arlington Police Departments. Assistant U.S. Attorney Justin Beck is prosecuting the case.
Supreme Court Denies Cert in UDF Case, Upholding Four ConvictionsRead the Press Release
The United States Supreme Court on Monday declined to review the United Development Funding (UDF) case, allowing a Fifth Circuit decision upholding the convictions of four company executives to stand, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In January 2022, a federal jury convicted UDF CEO Hollis Morrison Greenlaw, UDF Partnership President Benjamin Lee Wissink, UDF CFO Cara Delin Obert, and UDF Asset Management Director Jeffrey Brandon Jester of ten counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud. The UDF executives were sentenced in May 2022 to a combined 20 years in federal prison.
That same month, the UDF executives appealed their convictions to the Fifth Circuit. Following oral argument, the Fifth Circuit affirmed the UDF executives’ convictions and noted the government’s “avalanche of evidence” proving its case. After the Fifth Circuit denied rehearing en banc, the UDF executives asked the Supreme Court to review their case.
On Monday, the Supreme Court denied certiorari without comment.
Assistant U.S. Attorneys Amy Burch, Amy Mitchell, Elise Aldendifer, and Brian McKay handled the appeal in the Fifth Circuit. Assistant U.S. Attorneys Tiffany H. Eggers, Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case in the district court.
Woman Sentenced to 9 Years in Dark Web Murder-for-Hire PlotRead the Press Release
A Bedford woman who attempted to hire a hitman to kill her boyfriend’s lover was sentenced today to nine years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michelle Murphy, 58, was charged via criminal complaint in September 2023 and pleaded guilty in December 2023 to one count of murder-for-hire. She was sentenced Thursday by U.S. District Judge Mark Pittman.
According to court documents, Ms. Murphy used the dark web to attempt to pay a hitman $10,510 in Bitcoin to murder her boyfriend’s lover.
Blockchain analysis showed that Ms. Murphy used an ATM to convert cash into cryptocurrency on at least three occasions. On July 27, 2023, she transferred approximately 0.358 BTC ($10,510) to a Bitcoin wallet she believed belonged to the murder-for-hire recipient.
Agents subsequently confronted Ms. Murphy and the boyfriend in question. After being read her Miranda rights, Ms. Murphy admitted that when she found out her boyfriend was seeing another woman, she attempted to hire a hit man to kill the woman.
At Thursday’s sentencing hearing, prosecutors and defense attorneys agreed that it appeared the “hitman” who accepted funds from Ms. Murphy likely never intended to carry out the murder.
Homeland Security Investigations conducted the investigation with the assistance of the Bedford, Euless, Grapevine, and Hurst Police Departments. Assistant U.S. Attorney Matthew Weybrecht prosecuted the case.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting more than 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting over 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
23 Lubbock Drug Traffickers Sentenced to Combined 218 Years in PrisonRead the Press Release
The final defendant arrested in a large-scale drug and gun bust in Lubbock in July 2023 has been sentenced, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In total, 23 defendants were sentenced to a combined total of 218 years in federal prison.
The final defendant, Beatrice Eunice Gutierrez, was sentenced by U.S. District Judge James Wesley Hendrix to 18 years in prison for possession with intent to distribute methamphetamine on Thursday.
“Project Safe Neighborhoods is designed to target an areas’ most dangerous offenders. Key to the initiative’s success are productive partnerships between state, federal, and local law enforcement,” said U.S. Attorney Leigha Simonton. “We hope the Lubbock community will feel more at ease knowing these defendants will spend significant time off their streets and behind bars.”
Members of the group are linked to at least one fatal overdose. The victim, identified in court documents as T.F., was located in a bedroom surrounded by blue pills later confirmed to contain fentanyl. Defendant Alexus Grubelnik later admitted she delivered the pills to his residence, hiding them under the doormat.
Over the course of the investigation, law enforcement seized more than 12,354 grams of fentanyl pills, 12,7311 grams of methamphetamine, 4393 grams of heroin, 31 grams of oxycodone, 1.26 grams of cocaine, 35 firearms, and $155,204 in U.S. currency.
Those sentenced include:
• Steven Paul Echols, sentenced to 210 months for possession with intent to distribute methamphetamine
• Rachel Michelle Melendez, sentenced to 210 months for possession with intent to distribute methamphetamine
• Nicolas Blake Pereida, sentenced to 240 months for distribution and possession with intent to distribute methamphetamine
• Brent Reed Angelle, sentenced to 188 months for possession with intent to distribute methamphetamine
• Alexus Michelle Grubelnik, sentenced to 135 months for distribution and possession with intent to distribute fentanyl
• Beatrice Eunice Gutierrez, sentenced to 216 months for possession with intent to distribute methamphetamine
• Erik Hans Grosstueck, sentenced to 216 months for possession with intent to distribute fentanyl
• Brian Jacob Miller, sentenced to 70 months for possession with intent to distribute fentanyl
• Alexander Erik Pierce, sentenced to 186 months for distribution and possession with intent to distribute fentanyl
• Christian Carlisle Enochs, sentenced to 60 months for possession with intent to distribute fentanyl
• Brannon Mikel Burns, sentenced to 42 months for distribution and possession with intent to distribute fentanyl
• Matthew Ryan Chandler, sentenced to 42 months for possession with intent to distribute fentanyl
• Loddy Max Montoya, sentenced to 42 months for possession with intent to distribute fentanyl
• Trey Matthew Parrish, sentenced to 96 months for distribution and possession with intent to distribute fentanyl
• Glen Donnell Nall, Jr., sentenced to 135 months for possession with intent to distribute methamphetamine
• Anthony Ray Morales, sentenced to 78 months for felon in possession of a firearm
• Ronny Paul Spruiell, sentenced to 210 months for distribution and possession with intent to distribute methamphetamine
• Kevontae Jalil Hawthorne, sentenced to 48 months for felon in possession of a firearm
• Daniel Anthony Moreno, sentenced to 30 months for felon in possession of a firearm
• Ethan Tyler Nieto, sentenced to 32 months for felon in possession of a firearm
• Martin Rosalez III, aka Wedo, sentenced to 41 months for felon in possession of a firearm
• Roberto Salinas, Jr., sentenced to 27 months for felon in possession of a firearm
• Tevin Terelle Carrington, sentenced to 63 months for felon in possession of a firearm
A number of the defendants were tied to Lubbock’s Project Safe Neighborhood zone, a high-crime hotspot where federal, state, and local law enforcement leaders collaborate to reduce violence and increase community safety. Many had extensive criminal histories, including child sexual assault, aggravated assault, burglary, fraud, manufacture and delivery of controlled substances, and unlawful carrying of firearms.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Lubbock Resident Agency, the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency, the United States Marshal Service, the Caprock HIDTA (High Intensity Drug Trafficking Area) Task Force, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sherriff’s Office, and the Texas Anti-Gang Task Force conducted the investigation and arrest operation. Assistant U.S. Attorney Sean Long is prosecuted the case along with Assistant U.S. Attorneys Jeff Haag, Ann Howey, Callie Woolam, Matt McLeod, and Ryan Redd.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at
Financial Advisor Sentenced for $1.2 Million FraudRead the Press Release
A financial advisor who conned at least ten clients out of more than $1.2 million was sentenced today to five years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dusty Sternadel, 43, pleaded guilty in January to wire fraud. She was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Ms. Sternadel, a financial adviser at a large multi-national financial services firm, tricked clients into sending her money and checks, which she deposited into her own accounts.
On Sept. 18, 2019, for example, Ms. Sternadel transferred almost $27,000 from a client’s brokerage account into their personal checking account. She then falsely told the client-victim that the firm had accidentally transferred someone else’s money into the checking account, and instructed the victim to write out a check for that amount. The victim complied, and Ms. Sternadel deposited the funds into her own business bank account and used it for personal expenses.
Over the course of the scheme, which lasted from 2019 to 2022, Ms. Sternadel stole at least $1.2 million from ten victims:
- Victim 1: $286,021.63 (refunded to the victim by the firm)
- Victim 2: $18,122 (refunded to the victim by the firm)
- Victim 3: $ 101,240.50 (refunded to the victim by the firm)
- Victim 4: $21,064 ($9,334 of which was refunded by the firm)
- Victim 5: $43,099.21 (refunded to the victim by the firm)
- Victim 6: $51,600 (refunded to the victim by the firm)
- Victim 7: $204,442.82 (refunded to the victim by the firm)
- Victim 8: $40,000
- Victim 9: $288,979.89 (refunded to the victim by the firm)
- Victim 10: $175,201.25 (refunded to the victim by the firm)
At sentencing, prosecutors said most of the victims were elderly, and some of them were even suffering from cognitive decline.
The Federal Bureau of Investigation’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht prosecuted the case; Assistant U.S. Attorney John de la Garza handled the forfeiture.
Twelve CJNG Cartel Members Sentenced for Drug TraffickingRead the Press Release
Twelve drug traffickers tied to the Jalisco New Generation Cartel have been sentenced to between four and a half and 40 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Francisco Javier Rodriguez Arreola, a top source of supply charged in the case, was sentenced Tuesday to 40 years in federal prison for conspiracy to possess with intent to distribute methamphetamine. Mr. Rodriguez Arreola, a 45-year-old Mexican citizen born in Michoacan, was arrested in 2021 in Del Rio, Texas while illegally reentering the United States from Mexico after having been previously deported.
In plea papers, the defendant admitted that he helped coordinate the shipment of a load of 199.97 kilograms of liquid methamphetamine – with a street value of up to $9.9 million – from Mexico to Dallas concealed inside the diesel tank of a red semi-truck.
During the course of the investigation, court-authorized wiretaps caught Mr. Rodriguez Arreola, who went by the street names “Taquito” and “Viejo” (“Old”), communicating with codefendants in code about the movement and sale of controlled substances.
Courtroom testimony revealed that Mr. Rodriguez Arreola had previously served time in federal prison and that he was deported to Mexico in April of 2020. Less than a month after being deported, he was back in the drug trade when, in May of 2020, he and a codefendant discussed how the COVID-19 pandemic was slowing down the movement and sale of controlled substances. The defendant stated the pandemic was causing the price of methamphetamine to increase and he was heard saying he hoped the price of a kilogram of methamphetamine would go up, as it had once sold for $14,000.
At Tuesday’s sentencing hearing, prosecutors introduced evidence that showed that Mr. Rodriguez Arreola coordinated multiple deliveries of methamphetamine from Mexico into the United States on behalf of the Jalisco New Generation Cartel (CJNG), one of Mexico’s most violent and powerful drug cartels. During the hearing, Mr. Rodriguez Arreola was identified as a person who had access to the higher echelons of the CJNG because he associated with individuals who reported directly to the cartel’s leader, Nemesio Oseguera Cervantes, a.k.a. El Mencho.
Agent testimony revealed that the defendant served the CJNG as a broker of methamphetamine and that he had significant ties to Plaza Bosses who had access to cartel leadership. Mr. Rodriguez-Arreola’s role included finding drivers and people who could transport and distribute methamphetamine, planning routes, confirming delivery, loss prevention, and finding locations to receive, store, and transfer methamphetamine shipments.
Tuesday’s sentencing hearing further revealed the defendant had access to counterintelligence information provided by the CJNG because, during the height of the COVID-19 pandemic, Mr. Rodriguez Arreola told a codefendant that they needed drivers that were United States residents to transport methamphetamine [loads], because no drivers with visas could make it through [the border crossings with their loads of methamphetamine].
Other defendants sentenced include:
- Ricardo Hernandez Zarate, sentenced to 480 months in prison for conspiracy to possess with intent to distribute a controlled substance and 240 months in prison for money laundering (concurrent sentences)
- Pedro Hernandez Zarate, sentenced to 360 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Uriel Marin Gaona, sentenced to 120 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Benito Diaz Hernandez, sentenced to 210 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Marcos Garcia Reyes, sentenced to 87 months in prison for conspiracy to possess with intent to distribute a controlled
- Heleodoro Rosales Ramirez, sentenced to 168 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Rafael Diaz, sentenced to 60 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Jose Alberto Plascencia Torres, sentenced to 292 months in prison for conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance
- Elmer Gardea Tello, sentenced to 55 months in prison for conspiracy to possess with intent to distribute a controlled (cocaine)
- Walter Daniel Chapa Marty, sentenced to 121 months in prison for conspiracy to possess with intent to distribute a controlled substance
- Salvador Antonio Martinez, sentenced to 151 months in prison for conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance
Over the course of the investigation, law enforcement seized approximately 650 kilograms of methamphetamine drugs, 17 guns, $220,922 in U.S. currency, and $12,200 in real and personal property.
The investigation was led by the Federal Bureau of Investigation’s Dallas Field Office, with special assistance provided by the Texas Department of Public Safety, the Gainesville Police Department, Internal Revenue Service - Criminal Investigation, the Dallas Police Department, the Fort Worth Police Department, the Williamson County, Texas Sheriff’s Department, the Hawkins County Sheriff’s Department in Tennessee, the FBI’s Knoxville Field Office (Tennessee Resident Agency Office), and the Drug Enforcement Administration’s Dallas Strike Force 1. Assistant U.S. Attorney George Leal prosecuted the case.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at https://www.justice.gov/ocdetf.
Consolidated Nuclear Security Agrees to Pay $18.4 Million to Settle False Claims Act Allegations of Timecard FraudRead the Press Release
Consolidated Nuclear Security LLC (CNS) has agreed to pay the United States $18.4 million to settle allegations that, between July 1, 2014, and June 30, 2020, CNS knowingly submitted false claims to the National Nuclear Security Administration (NNSA) for time not worked at NNSA’s Pantex Site near Amarillo, Texas. The NNSA’s Pantex Site is the nation's primary facility for the assembly, disassembly and retrofitting of nuclear weapons. CNS, a Delaware company with its principal place of business in Tennessee, held a contract to manage and operate the site.
“We will not tolerate the misuse of public funds by those who do business with the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors fulfill their commitments particularly with respect to highly sensitive work on matters of national security.”
The settlement announced today resolves admissions by CNS that certain production technicians at the Pantex Plant recorded hours on their timesheets that they did not work. The United States paid CNS for that time under the CNS contract. CNS received credit in the settlement under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
“Taxpayers should never be on the hook for the cost of work that was not performed,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “Government contractors who misrepresent hours will be held accountable.”
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Texas, Civil Division’s Commercial Litigation Branch and Department of Energy, Office of the Inspector General. Assistant U.S. Attorneys Ken Coffin and Brian Stoltz for the Northern District of Texas and Senior Trial Counsel Don Williamson of the Justice Department's Civil Division handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementThree Robbers Plead Guilty to Stealing USPS Arrow KeyRead the Press Release
Three Fort Worth men pleaded guilty to robbing a U.S. letter carrier, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Cedrick Eugene Mims, Danny Yogi Oriszul Powell, and Cameron Kemond Gist, pleaded guilty to robbery of property of the United States. Mr. Powell entered his plea on March 6, Mr. Mims entered his plea on March 13, and Ms. Gist entered his plea on April 17.
According to plea papers, the three men robbed a letter carrier, identified in court documents as C.S., in Fort Worth on Oct. 24, 2023.
Mr. Mimms admitted he pointed a 39mm pistol at the carrier and demanded “the key” – a reference to the carrier’s “Arrow Key,” a master key used by the U.S. Postal Service to gather mail deposited in blue collection boxes that is prized by mail thieves.
The men admitted that they also purloined a postal scanner and the keys to the letter carrier’s official vehicle. Mr. Powell drove the getaway car and Mr. Gist provided the firearms, plea papers indicate.
Mr. Mims and Mr. Gist now face up to 25 years in federal prison due to the dangerous weapon enhancement; Mr. Powell faces up to 10 years.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Laura Montes is prosecuting the case.
This case is the result of Project Safe Delivery (PSD), a joint U.S. Postal Service and U.S. Postal Inspection Service initiative aimed at countering postal crime and safeguarding postal employees. Announced in May 2023, in direct response to a rise in threats and attacks on letter carriers and mail theft incidents, PSD seeks to protect Postal employees and the mailstream, prevent incidents through education and awareness, and enforce the laws that protect our nation’s mail stream. Since the launch of PSD, postal inspectors, working with law enforcement partners, have arrested more than 213 individuals for postal-related robberies. In the first six months of the fiscal year, the number of arrests for postal-related robberies rose 72% versus the same period the previous year, while the number of postal-related robberies dropped 21%. Meanwhile, the number of mail theft complaints received during that period decreased 35%, suggesting the PSD approach is achieving the intended result.
Fake Concert Promoter Charged with Million Dollar FraudRead the Press Release
A man who claimed to be a concert promoter for artists like Beyonce, Nicki Minaj, and others has been charged with fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Carlos Desean Goodspeed, 43, who operated under the assumed business name, “Straight Like That Entertainment,” was indicted on April 16 on three counts of wire fraud. He was arrested without incident at Dallas Fort Worth International Airport on Wednesday, and made his initial appearance before U.S. Magistrate Judge Renée H. Toliver on Thursday.
According to the indictment, Mr. Goodspeed allegedly told investors he was a concert promoter working in partnership with a multinational event marketing company. He allegedly solicited hefty investments and guaranteed returns as high as 50% in a short period of time.
For example, in July 2018, he allegedly solicited $400,000 from one victim, promising to pay him back $650,000 ($250,000 in profit) within four months. He claimed the money would be used to promote touring shows for artists Nicki Minaj and Future.
The same day the would-be investor wired Straight Like That Entertainment the money, Mr. Goodspeed allegedly withdrew $200,000 to pay a court-appointed receiver in connection with an SEC lawsuit; wired $20,000 to another duped investor; and withdrew $100,000 in cash and cashier's checks. He paid back only a fraction of the investor’s $400,000 investment.
In January 2022, Mr. Goodspeed allegedly solicited $50,000 from another investor, telling the investor the funds would be used to purchase concert tickets and suites for an upcoming Tyler, the Creator show.
Despite the show taking place as planned, Mr. Goodspeed did not return the principal or pay out the return as promised, allegedly making excuse after excuse. He eventually told the investor he would be paid in full after two additional concerts, including a second concert by Tyler, the Creator and another by Ludacris. The investor wired an additional $130,000 to Straight Like That Entertainment, which Mr. Goodspeed allegedly used for personal expenses, including rental payments at an upscale apartment complex, a purchase at a high-end retail store, and airline fees and hotels; and to make lulling payments to other duped investors.
In total, as a result of Mr. Goodspeed’s alleged fraud, investors collectively suffered a loss of over one million dollars.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Goodspeed is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 60 years in prison (20 years per count).
The Federal Bureau of Investigation's Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter prosecuted the case.
Alyssa Burkett Murder Trial: Jury Convicts Holly Elkins of Orchestrating KillingRead the Press Release
A Rowlett woman who helped her fiancé orchestrate the brutal murder of his ex-girlfriend was convicted at trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Holly Ann Elkins was indicted in June 2023. On Wednesday, after seven days of trial and an hour and a half of deliberation, a jury convicted her of conspiracy to stalk, stalking using a dangerous weapon resulting in death, and brandishing a firearm in relation to a crime of violence.
Her former fiancé, Andrew Beard, previously pleaded guilty to stalking using a dangerous weapon resulting in death and discharging a firearm during a crime of violence and was sentenced to 43 years in federal prison.
“Holly Elkins and Andrew Beard constructed a campaign of terror aimed at Alyssa Ann Burkett, the mother of Mr. Beard’s young daughter. After months of harassment and stalking, this campaign ended in the incredibly violent murder of Alyssa at the hands of Mr. Beard with Ms. Elkins’s full participation and knowledge in the planning and ensuing attempted cover-up. This U.S. Attorney’s Office, and the Department of Justice as a whole, are committed to bringing those guilty of such heinous domestic violence to justice. I pray that today’s verdict brings the victim’s family the peace they need to move forward. I know they will never allow Alyssa’s daughter to forget just how much her mother loved her,” said U.S. Attorney Leigha Simonton.
According to evidence presented at trial, Ms. Elkins helped plot the Oct. 2, 2020 murder of 24-year-old Alyssa Ann Burkett, Mr. Beard’s ex-girlfriend, with whom he shared a young daughter.
The government argued that Ms. Elkins – who apparently dreamt of a life with Mr. Beard and a mother/ child relationship with his daughter – repeatedly attempted to call into question Ms. Burkett’s fitness as a parent. When that failed, Ms. Elkins goaded Mr. Beard into taking Ms. Burkett’s life, labeling the victim a “c**t” and a “dumb b**ch” and a “garbage s**t mom.”
The perpetrators’ relationship began in early April 2020. Later that month, Ms. Elkins spent her first weekend with Mr. Beard and his daughter. By May, the couple were shopping for engagement rings. In June, however, Ms. Elkins grew frustrated at Mr. Beard’s continuing association with Ms. Burkett, writing, “your BM [baby mamma] owns you,” “you continue to put BM first,” “you choose to be idk for lack of a better term submissive to her,” and “I don’t have want or need any bullshit from anyone.”
Ms. Elkins began a campaign to harass Ms. Burkett in summer 2020, shortly after Ms. Elkins moved into Mr. Beard’s home.
In June, Ms. Elkins and Mr. Beard conspired to place a GPS tracker on Ms. Burkett’s vehicle. A month later, Ms. Elkins placed a call to 911 under the name fake “Amber,” falsely claiming that Ms. Burkett’s car was driving erratically on the interstate. In August 2020, Ms. Elkins falsely reported to police that Ms. Burkett’s mother had attacked her, creating scratches on her own chest to support the lie. Five days later, Ms. Elkins and Mr. Beard paid a private investigator to dig up dirt on Ms. Burkett and her new boyfriend. (The investigator, who testified at trial, found nothing incriminating.) In September, Ms. Elkins helped Mr. Beard plant drugs and a gun in Ms. Burkett’s vehicle; Mr. Beard then placed a call to police under a fake name claiming Ms. Burkett was selling drugs to black men out of her car.
Then, on Sept. 10, just three weeks before the murder, Ms. Elkins accompanied Mr. Beard to a sporting goods store, where he purchased a black rainsuit in cash. On Sept. 14, two and a half weeks before the murder, Ms. Elkins purchased dark makeup from a drug store. On Sept. 19, she accompanied Mr. Beard to a big box store, where they purchased .410 shotgun shells and a Camillus knife.
One week prior to the murder, Ms. Elkins texted Mr. Beard and said “I hope you handle it.” She requested that he be “ride or die” for her and said if he was not, she is not sure the relationship can continue. Shortly after that text exchange, Google records reflect that Andrew Beard began conducting searches for how to remove gunpowder from his hands.
On Oct. 2, 2020, Mr. Beard, dressed in a black rainsuit and disguised as a Black man, shot Ms. Burkett in the head with a shotgun while she sat behind the wheel of her car in her work parking lot. As she staggered out of the car, Mr. Beard grabbed her and stabbed and slashed her 44 times. Her coworkers testified at trial that they found Ms. Burkett covered in blood and gasping for air in front of her office front door. She died as her coworkers tried to render aid to her.
During the murder, Ms. Elkins stayed at Beard’s home in Rockwall with Ms. Burkett’s daughter. In an attempt to create an alibi, she later claimed Mr. Beard had been home with her during the crime.
At the trial, Ms. Burkett’s new boyfriend testified that he believed Ms. Elkins was the “puppet master” behind the murder.
Ms. Elkins now faces up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Carrollton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Rick Calvert, and Ryan Niedermair are prosecuting the case. U.S. District Judge Jane Boyle presided over trial.
Dallas Anesthesiologist Convicted of Tampering with IV Bags Linked to Cardiac Emergencies During Routine SurgeriesRead the Press Release
A Dallas anesthesiologist was convicted today for injecting dangerous drugs into patient IV bags, leading to one death and numerous cardiac emergencies, the Justice Department announced.
Raynaldo Riviera Ortiz Jr., 60, was charged by criminal complaint in September 2023 and indicted the following month on charges related to tampering with IV bags used at a local surgical center. After eight days of trial and seven hours of deliberation, a jury convicted him of four counts of tampering with consumer products resulting in serious bodily injury, one count of tampering with a consumer product and five counts of intentional adulteration of a drug.
“The facts brought out at trial in this case are particularly disturbing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold accountable anyone who puts patients’ lives at risk by tampering with critical medical products.”
“Dr. Ortiz cloaked himself in the white coat of a healer, but instead of curing pain, he inflicted it,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “He assembled ticking time bombs, then sat in wait as those medical time bombs went off one by one, toxic cocktails flowing into the veins of patients who were often at their most vulnerable, lying unconscious on the operating table. We saw the patients testify. Their pain, their fear and their trauma was palpable in that courtroom.”
“Patients expect that their doctors will use only safe and effective medical products during their surgeries. When illicit tampering occurs, serious harm and even death can result,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OIC). “Working with our law enforcement partners, we will continue to monitor, investigate and bring to justice those who would risk patients’ health and safety.”
According to evidence presented at trial, between May and August 2022, numerous patients at Surgicare North Dallas suffered cardiac emergencies during routine medical procedures performed by various doctors. About one month after the unexplained emergencies began, an anesthesiologist who had worked at the facility earlier that day died while treating herself for dehydration using an IV bag. In August 2022, doctors at the surgical care center began to suspect tainted IV bags had caused the repeated crises after an 18-year-old patient had to be rushed to the intensive care unit in critical condition during a routine sinus surgery.
A local lab analyzed fluid from the bag used during the teenager’s surgery and found bupivacaine (a nerve-blocking agent), epinephrine (a stimulant) and lidocaine (an anesthetic) — a drug cocktail that could have caused the boy’s symptoms, which included very high blood pressure, cardiac dysfunction and pulmonary edema. The lab also observed a puncture in the bag.
Ortiz surreptitiously injected IV bags of saline with epinephrine, bupivacaine and other drugs, placed them into a warming bin at the facility, and waited for them to be used in colleagues’ surgeries, knowing their patients would experience dangerous complications. Surveillance video introduced into evidence showed Ortiz repeatedly retrieving IV bags from the warming bin and replacing them shortly thereafter, not long before the bags were carried into operating rooms where patients experienced complications. Video also showed Ortiz mixing vials of medication and watching as victims were wheeled out by emergency responders.
Evidence presented at trial showed that Ortiz was facing disciplinary action at the time for an alleged medical mistake made in his one of his own surgeries, and that he potentially faced losing his medical license.
At trial, doctors testified about the confusion they felt when their patients’ blood pressures suddenly skyrocketed. Reviewing medical records, they all noted the emergencies occurred shortly after new IV bags had been hung. Patients recalled waking up unexpectedly intubated in intensive care units they had been transported to via emergency medical transportation services, in pain and in fear for their lives.
A sentencing date has not yet been set. Ortiz faces a maximum penalty of 190 years in prison. The court will set his sentencing hearing at a later date.
FDA-OCI Special Agents Chad Medaris and Daniel Allgeyer investigated the case.
Assistant Director Patrick Runkle and Trial Attorney Rachel Baron of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney John de la Garza for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Gail Hayworth for the Northern District of Texas provided appellate support. Chief U.S. District Judge David C. Godbey presided over trial.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit www.justice.gov/usao-ndtx
Dallas Anesthesiologist Convicted of Tampering with IV Bags Linked to Cardiac Emergencies During Routine SurgeriesRead the Press Release
A Dallas anesthesiologist was convicted today for injecting dangerous drugs into patient IV bags, leading to one death and numerous cardiac emergencies, the Justice Department announced.
Raynaldo Riviera Ortiz Jr., 60, was charged by criminal complaint in September 2023 and indicted the following month on charges related to tampering with IV bags used at a local surgical center. After eight days of trial and seven hours of deliberation, a jury convicted him of four counts of tampering with consumer products resulting in serious bodily injury, one count of tampering with a consumer product and five counts of intentional adulteration of a drug.
“The facts brought out at trial in this case are particularly disturbing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold accountable anyone who puts patients’ lives at risk by tampering with critical medical products.”
“Dr. Ortiz cloaked himself in the white coat of a healer, but instead of curing pain, he inflicted it,” U.S. Attorney for the Northern District of Texas said in a video statement. “He assembled ticking time bombs, then sat in wait as those medical time bombs went off one by one, toxic cocktails flowing into the veins of patients who were often at their most vulnerable, lying unconscious on the operating table. We saw the patients testify. Their pain, their fear and their trauma was palpable in that courtroom.”
“Patients expect that their doctors will use only safe and effective medical products during their surgeries. When illicit tampering occurs, serious harm and even death can result,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OIC). “Working with our law enforcement partners, we will continue to monitor, investigate and bring to justice those who would risk patients’ health and safety.”
According to evidence presented at trial, between May and August 2022, numerous patients at Surgicare North Dallas suffered cardiac emergencies during routine medical procedures performed by various doctors. About one month after the unexplained emergencies began, an anesthesiologist who had worked at the facility earlier that day died while treating herself for dehydration using an IV bag. In August 2022, doctors at the surgical care center began to suspect tainted IV bags had caused the repeated crises after an 18-year-old patient had to be rushed to the intensive care unit in critical condition during a routine sinus surgery.
A local lab analyzed fluid from the bag used during the teenager’s surgery and found bupivacaine (a nerve-blocking agent), epinephrine (a stimulant) and lidocaine (an anesthetic) — a drug cocktail that could have caused the boy’s symptoms, which included very high blood pressure, cardiac dysfunction and pulmonary edema. The lab also observed a puncture in the bag.
Ortiz surreptitiously injected IV bags of saline with epinephrine, bupivacaine and other drugs, placed them into a warming bin at the facility, and waited for them to be used in colleagues’ surgeries, knowing their patients would experience dangerous complications. Surveillance video introduced into evidence showed Ortiz repeatedly retrieving IV bags from the warming bin and replacing them shortly thereafter, not long before the bags were carried into operating rooms where patients experienced complications. Video also showed Ortiz mixing vials of medication and watching as victims were wheeled out by emergency responders.
Evidence presented at trial showed that Ortiz was facing disciplinary action at the time for an alleged medical mistake made in his one of his own surgeries, and that he potentially faced losing his medical license.
At trial, doctors testified about the confusion they felt when their patients’ blood pressures suddenly skyrocketed. Reviewing medical records, they all noted the emergencies occurred shortly after new IV bags had been hung. Patients recalled waking up unexpectedly intubated in intensive care units they had been transported to via emergency medical transportation services, in pain and in fear for their lives.
A sentencing date has not yet been set. Ortiz faces a maximum penalty of 190 years in prison. The court will set his sentencing hearing at a later date.
FDA-OCI Special Agents Chad Medaris and Daniel Allgeyer investigated the case.
Assistant Director Patrick Runkle and Trial Attorney Rachel Baron of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney John de la Garza for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Gail Hayworth for the Northern District of Texas provided appellate support. Chief U.S. District Judge David C. Godbey presided over trial.
COVID-19 Testing Fraudster Sentenced to 7 Years in Federal PrisonRead the Press Release
An Irving man was sentenced yesterday to seven years in prison for his role in a $7 million COVID-19 testing fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrance Barnard, 40, was indicted in December 2022 and pleaded guilty in September 2023 to conspiracy to commit health care fraud and aggravated identity theft. He was sentenced Wednesday by U.S. District Judge Brantley Starr, who ordered him to pay more than $7 million in restitution.
“These defendants took advantage of unsuspecting patients – and a global pandemic – to steal millions of dollars from insurers using private patient information,” said U.S. Attorney Leigha Simonton. “This sort of crime breaches patients’ trust and raises the cost of healthcare for all – at a time when access to medical care feels precarious to many.”
“Terrance Barnard and his co-conspirators submitted false claims to multiple healthcare plans, including Employee Retirement Income Security Act covered plans, for COVID-19 testing services using the stolen personal identifiable information of numerous individuals. Today’s sentencing affirms the U.S. Department of Labor, Office of Inspector General’s commitment to working with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Casey Howard, Special Agent-in-Charge, Central Region, U.S. Department of Labor, Office of Inspector General.
According to plea papers, Mr. Barnard admitted that he and his coconspirators accessed private patient information – including names, dates of birth, and insurance subscriber numbers – through various clinics where Barnard worked as a contract lab technician. Mr. Barnard admitted that on some occasions, he took photographs of patient information and stored the images on “burner” phones, and on other occasions, he and a coconspirator accessed the clinics’ confidential electronic medical records to obtain large amounts of patient information at once.
They then used the patient information to submit claims to insurance providers – including Blue Cross Blue Shield, Cigna, United Healthcare, Aetna, Humana, and Molina Health Care – for COVID-19 testing that was never performed. (The patients had not requested COVID-19 testing, nor were they aware their information was being used to submit claims.)
Mr. Barnard admitted that the “labs” at which the coconspirators claimed the testing occurred, including TC Diagnostics, ME Diagnostics, and PHR Diagnostics, were, in fact, shell entities that never operated as labs. Collectively, these three entities submitted approximately $30 million in claims and were paid more than $7 million in reimbursements for fake testing.
Under the terms of his plea agreement, Mr. Barnard agreed to forfeit almost $2.5 million from bank accounts tied to him or his family, several real properties, five vehicles, and five luxury watches.
Also charged in the scheme were Connie Jo Clampitt, William Paul Gray, and Don Hogg, all of whom submitted guilty pleas. Mr. Gray was sentenced to 54 months in prison for conspiracy to commit healthcare fraud; Ms. Clampitt and Mr. Hogg await sentencing on April 10 and May 1, respectively.
The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration, the Central Region of the Department of Labor – Office of Inspector General, the Texas Department of Insurance Fraud Unit's Fort Worth Field Office, and the Federal Bureau of Investigation's Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Texas Man Sentenced for Hate Crimes Following Mass Shooting Targeting Muslims at Car Repair ShopRead the Press Release
A Dallas man was sentenced today to 37 years in prison, with credit for time served in state custody, following his guilty plea to hate crime charges arising out of a fatal shooting at a car repair shop.
On Sept. 14, 2023, Anthony Paz Torres, 39, pleaded guilty to five federal hate crime counts for killing one individual and attempting to kill four others during a mass shooting at Omar’s Wheels and Tires in Dallas on Dec. 24, 2015. Torres also pleaded guilty to one count of using a firearm to commit the murder.
“As this sentence makes clear, hate crimes fueled by Islamophobia, or by bias of any kind, will be met with the full force of the Justice Department,” said Attorney General Merrick B. Garland. “No person in this country should have to live in fear because of who they are, what they look like, or how they pray.”
“The defendant attempted to commit a mass shooting and intentionally targeted victims at a Muslim-owned business,” said FBI Director Christopher Wray. “This case is an abhorrent example of how deadly Islamophobia can be in our own country and the severe consequences that wait for anyone who commits acts of hateful violence. The FBI places civil rights investigations as one of our highest priorities because everyone deserves to practice their religion without fear.”
“No person in the United States should fear that they will be the target of violence because of their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The sentence handed down today ensures that Torres will be held accountable for the hate-fueled, Islamophobic violence he inflicted on the victims in this case. The Justice Department will continue to vigorously investigate and prosecute such hate crimes.”
“North Texans come from a variety of religious traditions and backgrounds, and no one should have to live in fear because of the way they worship,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “This case demonstrates the U.S. Attorney’s Office’s dedication to protecting members of our north Texas community from acts of violence fueled by hatred toward any religious group. Let the message be clear: if you commit such acts, we will seek to prosecute you and send you to prison for as long as possible.”
According to court documents, Torres admitted that a few days prior to the shooting, he went to Omar’s Wheels and Tires, made anti-Muslim comments, and pledged that he would come back. When he returned to the business on Dec. 24, 2015, Torres asked customers if they were Muslim. After being escorted back to his vehicle by Omar’s Wheels and Tires employees, Torres discharged his firearm in the direction of multiple employees and customers. Torres admitted that he killed one person and attempted to kill four other people at Omar’s Wheels and Tires because he believed that they were Muslim.
The FBI Dallas Field Office investigated the case, with assistance from the Dallas Police Department and Dallas Criminal District Attorney’s Office.
Assistant U.S. Attorney Nicole Dana for the Northern District of Texas and Rebekah J. Bailey, formerly a Trial Attorney with the Justice Department’s Civil Rights Division, prosecuted the case, with the help of Assistant U.S. Attorney Stephen Gilstrap for the Northern District of Texas.
For more information and resources about the Department’s work to combat hate crimes visit www.justice.gov/hatecrimes.
Texas Man Sentenced for Hate Crimes Following Mass Shooting Targeting Muslims at Car Repair ShopRead the Press Release
A Dallas man was sentenced today to 37 years in prison, with credit for time served in state custody, following his guilty plea to hate crime charges arising out of a fatal shooting at a car repair shop.
On Sept. 14, 2023, Anthony Paz Torres, 39, pleaded guilty to five federal hate crime counts for killing one individual and attempting to kill four others during a mass shooting at Omar’s Wheels and Tires in Dallas on Dec. 24, 2015. Torres also pleaded guilty to one count of using a firearm to commit the murder.
“As this sentence makes clear, hate crimes fueled by Islamophobia, or by bias of any kind, will be met with the full force of the Justice Department,” said Attorney General Merrick B. Garland. “No person in this country should have to live in fear because of who they are, what they look like, or how they pray.”
“The defendant attempted to commit a mass shooting and intentionally targeted victims at a Muslim-owned business,” said FBI Director Christopher Wray. “This case is an abhorrent example of how deadly Islamophobia can be in our own country and the severe consequences that wait for anyone who commits acts of hateful violence. The FBI places civil rights investigations as one of our highest priorities because everyone deserves to practice their religion without fear.”
“No person in the United States should fear that they will be the target of violence because of their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The sentence handed down today ensures that Torres will be held accountable for the hate-fueled, Islamophobic violence he inflicted on the victims in this case. The Justice Department will continue to vigorously investigate and prosecute such hate crimes.”
“North Texans come from a variety of religious traditions and backgrounds, and no one should have to live in fear because of the way they worship,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “This case demonstrates the U.S. Attorney’s Office’s dedication to protecting members of our north Texas community from acts of violence fueled by hatred toward any religious group. Let the message be clear: if you commit such acts, we will seek to prosecute you and send you to prison for as long as possible.”
According to court documents, Torres admitted that a few days prior to the shooting, he went to Omar’s Wheels and Tires, made anti-Muslim comments, and pledged that he would come back. When he returned to the business on Dec. 24, 2015, Torres asked customers if they were Muslim. After being escorted back to his vehicle by Omar’s Wheels and Tires employees, Torres discharged his firearm in the direction of multiple employees and customers. Torres admitted that he killed one person and attempted to kill four other people at Omar’s Wheels and Tires because he believed that they were Muslim.
The FBI Dallas Field Office investigated the case, with assistance from the Dallas Police Department and Dallas Criminal District Attorney’s Office.
Assistant U.S. Attorney Nicole Dana for the Northern District of Texas and Rebekah J. Bailey, formerly a Trial Attorney with the Justice Department’s Civil Rights Division, prosecuted the case, with the help of Assistant U.S. Attorney Stephen Gilstrap for the Northern District of Texas.
For more information and resources about the Department’s work to combat hate crimes visit www.justice.gov/hatecrimes.
Man Pleads Guilty to Concealing Stolen USPS Arrow KeyRead the Press Release
A Fort Worth man pleaded guilty Wednesday to concealing a stolen U.S. Postal Service “Arrow Key,” announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Willis Bender, 18, was charged via criminal complaint in October 2023 and pleaded guilty Wednesday to receipt or concealment of stolen property of the United States.
In plea papers, Mr. Bender admitted he received and concealed a stolen “Arrow Key,” a master key used by the U.S. Postal Service to gather mail deposited in blue collection boxes.
The key – prized by mail thieves – had been stolen from a letter carrier in Everman, Texas on Sept. 20, 2023. The carrier reported that she was robbed at gunpoint by a black man who demanded she hand over her “mailbox key.”
In interviews with law enforcement, Mr. Bender gave various accounts of his involvement in the robbery. At first, he claimed he knew nothing about the incident; then he claimed that a man named showed up at his front door, threatened his family, and forced Mr. Bender to accompany him to the robbery. In a subsequent interview, Mr. Bender claimed a man threatened him with a gun and forced him to sit in the back seat of his car during the robbery. In yet another interview, he said a man committed the robbery while he and another individual waited outside in the vehicle.
In his final interview with law enforcement, Mr. Bender claimed that when police arrived in the area, he looked outside and saw the stolen arrow key sitting outside his door. Not wanting to get in trouble for robbery, he took the key and hid it behind the air duct grill in his bedroom alongside his gun, he claimed.
Mr. Bender now faces up to 10 years in federal prison.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Everman Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting the case.
Twice Convicted Bank Robber Sentenced to 13+ Years in Federal PrisonRead the Press Release
A bank robber who attempted to kidnap a Comerica employee was sentenced Thursday to more than 13 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Staci West League, 52, was charged via criminal complaint in May 2022 and indicted later that month. In September 2023, she pleaded guilty to bank robbery, brandishing a firearm during a crime of violence, and felon in possession of a firearm and was sentenced Thursday to 165 months in federal prison by U.S. District Judge Brantley Starr.
In plea papers, Ms. League admitted to robbing a Comerica Bank in Irving, Texas, on April 29, 2022 while brandishing a 9mm handgun.
According to court documents, Ms. League entered the bank at 4:02 p.m., approached a teller, and asked to speak to a manager. When the manager approached her window, Ms. League announced she was committing a robbery and demanded cash. Both the manager and the teller went to the vault to retrieve the money, which they placed into a blue courier bag. When the manager presented the bag to the defendant, she drew a handgun out of her hoodie and attempted to verify an amount. The manager returned to the vault, put more money into the bag, and gave it to Ms. League.
Ms. League then pointed her handgun at another bank employee and ordered him to walk out the front door and to her pickup truck. Remarking that she needed a hostage, she ordered him into the truck. As the defendant got into the driver’s side door, the employee was able to flee to a nearby fast food restaurant. Ms. League fled the scene. Ms. League immediately fled the scene and drove to the Irving Fire Department, where she told firefighters that she “did something very bad” as they waited for Irving police to arrive.
Law enforcement recovered the cash and the gun used in the robbery shortly after they arrested Ms. League.
The 2022 robbery was Ms. League’s second bank robbery; she was convicted of robbing the same Comerica Bank in 2019. (That conviction was the underlying offense for the felon-in-possession charge. )
According to court documents, Ms. League entered the bank around 4:54 p.m. on June 14, 2019 with something concealed under a blanket, then announced, “I want large bills.” A teller spotted a rifle peeking out from under the blanket, she went to the vault to retrieve cash, which she placed in a plastic bag and gave to Ms. League. The defendant said, “thank you” and walked out the front door.
She then drove directly to the police department to turn herself in. She pleaded guilty to bank robbery and was sentenced to 40 months in prison for that crime.
The Federal Bureau of Investigation’s Dallas Field Office and the Irving Police Department conducted both investigations. U.S. Attorneys Robert Withers, Jordan Ganz (fmr), and Shane Read (fmr) prosecuted the cases.
Coconspirator in Agent’s ‘Secret Probation’ Fraud Scheme Sentenced to 70 Months in PrisonRead the Press Release
The coconspirator in retired FBI agent William Stone’s scheme to con a local mother out of more than $700,000 by convincing her she was on “secret federal probation" was sentenced Thursday to nearly six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Joseph Eventino DeLeon, 63, was indicted in December 2021. In February 2024, after 12 days of trial, a jury convicted him and Mr. Stone of conspiracy to commit wire fraud. (Mr. Stone was also convicted of five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer.) Mr. DeLeon was sentenced to 70 months in federal prison by U.S. District Judge Ada Brown, who ordered him to pay $765,320.37 in restitution to his victim.
According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”
He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation.” They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the five and six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.
Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.
When C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”
In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.
They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her.
Mr. Stone was previously sentenced to 87 months in federal prison and taken into custody when sentenced, as was Mr. DeLeon.
The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch prosecuted the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor. Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
Tax Preparer Sentenced to 3 Years in $6.7 Million Tax FraudRead the Press Release
A Waxahachie tax preparer was sentenced Thursday to three years in prison and ordered to pay more than $6.7 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Bachary Rushid McGruder, the 45-year-old owner of M&M Enterprises and Consulting, TX, was indicted in November 2021 and pleaded guilty in November 2023 to aiding and assisting in the preparation of false tax returns. He was sentenced Thursday by U.S. District Judge Barbara M.G. Lynn.
During tax years 2015 through 2018, Mr. McGruder knowingly prepared more than 1,000 fraudulent tax returns for his clients, including fictitious Schedule A itemized deductions like gifts to charity, unreimbursed employee expenses (UEBE), and home mortgage interest; false Schedule C business losses; and false Residential Energy Credits (REC).
He included the false statements on clients’ tax returns without their knowledge, and had clients sign forms justifying the deductions and credits without explaining the forms’ contents to clients.
Mr. McGruder made his profits from the false tax returns by charging unusually exorbitant fees which were deducted from the individual tax refunds, charging clients as much as $2,800 for preparing their returns.
The fraud resulted in a tax loss of $6.73 million.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Josh Detzky prosecuted the case.
Owner of Massage Parlors Offering Commercial Sex Federally ChargedRead the Press Release
A massage parlor owner whose employees offered illicit commercial sex has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Shaoping Wen, 64, and her associate, Xu Wang, 41, were charged via criminal complaint with conspiracy to use interstate travel in aid of racketeering enterprises. They were arrested in New Mexico on March 21 and made their initial appearances in Las Cruces Wednesday. They are now awaiting removal to Lubbock to face justice in a Northern District of Texas federal court.
According to the complaint, Ms. Wen allegedly owned and operated at least seven massage parlors where Asian women engaged in commercial sex. Mr. Wang, who identified himself as Ms. Wen’s son, allegedly operated the parlors on her behalf when Ms. Wen was out of state.
On at least 10 occasions between June 2023 and February 2024, undercover officers purchased $60 massages at Ms. Wen’s parlors in Texas and New Mexico. The officers were generally greeted by lingerie-clad women who allegedly agreed to have sex with them for an additional fee of between $140 and $200. Several of the women allegedly used translation apps to negotiate sexual services.
When the women were arrested for prostitution, they identified themselves as Chinese citizens and listed their occupation as simply, “laborer.” On multiple occasions, Ms. Wen or Mr. Wang allegedly showed up to pay the arrested women’s cash bond.
Officers also observed Ms. Wen’s vehicle transporting Asian females directly from the airport to her massage parlors. Neighbors said the women never left the building. Searches of the premises revealed beds placed on the floors, suggesting the women lived at the massage parlors.
On at least one occasion, a passerby heard a woman screaming and entered the parlor to check-in. He reported seeing three women between the ages of 30 and 50 dressed in provocative clothing.
Officers found the massage parlors advertised on sites often used to advertise commercial sex. The ads included photos of partially naked women and promoted “100% sexy” girls who “like to spend time with nice upscale gentlemen.” They advertised the “girlfriend experience,” “porn star experience,” and “fantasy outfits on request.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Ms. Wen and Mr. Wang face up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency, Homeland Security Investigation’s Dallas Field Office, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation with the assistance of the FBI’s Albuquerque Field Office, HSI’s Albuquerque Field Office, the Lubbock County Sheriff’s Office, Immigration & Customs Enforcement (ICE), the Wolfforth Police Department, the Eddy County Sheriff’s Office, the Carlsbad Police Department, the Roswell Police Department, the Clovis Police Department, the Roswell Fire Department, the Carlsbad Fire Department, the Lubbock County District Attorney’s Office, and the U.S. Attorney’s Office for the District of New Mexico. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Liberian Man Sentenced to 20 Years for Stealing $2.6M in SNAP Benefits from NeedyRead the Press Release
A Liberian man was sentenced yesterday to 20 years in federal prison for stealing $2.6 million in SNAP benefits from needy and disabled beneficiaries, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
James Peabody, 34, pleaded guilty in August to conspiracy to commit wire fraud and was sentenced Tuesday by U.S. District Judge Mark Pittman, who called the crime “one of the most disturbing schemes” he’d seen during his time on the bench.
“The Supplemental Nutrition Assistance Program is often the only way low-income Americans can afford to feed their families. I can only imagine the devastation these victims felt at the cash register when they attempted to pay for their groceries and discovered their accounts had been emptied,” said U.S. Attorney Leigha Simonton. “These defendants callously preyed on the needy, disabled, and elderly. My heart breaks for them.”
“The defendant and their co-conspirators exploited a program designed to aid low-income families. They stole directly from thousands of victims that needed those funds to purchase food and other necessary household items,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI and our partners worked together to hold these individuals accountable for stealing millions of dollars from the most vulnerable citizens in our community. We will not tolerate anyone that uses a federal program to enrich themselves at the expense of families who truly need and depend on the benefits.”
According to plea papers, the defendant admitted to defrauding the Supplemental Nutrition Assistance Program (SNAP, commonly known as food stamps).
In furtherance of the scheme, Mr. Peabody and two coconspirators, Saybah Keihn, 48, and Margretta Jabbeh, 43, opened several African food stores. They applied for, and received, SNAP merchant privileges.
They then used EBT (electronic benefit transfer) cards programmed with stolen SNAP account information – illegally obtained by placing so-called “skimming” devices on point-of-sale terminals in stores throughout the United States – and used them to “purchase” groceries from their own stores.
With each swipe of the card, the defendants falsely represented to the USDA that actual SNAP beneficiaries were using benefits to purchase approved grocery items. In reality, the beneficiaries were not present in the stores at the time of the transaction and no groceries were actually purchased.
As a result of the scheme, the U.S. Department of Agriculture (which administrates SNAP) deposited more than $2.6 million in bank accounts associated with their stores. When the beneficiaries whose accounts had been stolen attempted to use their SNAP benefits to purchase food, they learned there was no money in their accounts.
For Tuesday’s sentencing hearing, several victims submitted statements revealing that that they were forced to rely on food banks, while one stated she resorted to eating “out of dumpsters.”
Another victim thanked the FBI “for investigating my case when no one else seemed to care.”
Mr. Keihn and Ms. Jabbeh both previously pleaded guilty to conspiracy to commit wire fraud and were sentenced to 108 and 129 months in federal prison, respectively.
The Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency and the USDA Office of Inspector General conducted the investigation with help from the Bedford Police Department, the Blue Mound Police Department, the Euless Police Department, and the North Richland Hills Police Department. Assistant U.S. Attorney Nancy Larson prosecuted the case.
Romance Scammer Sentenced to 10 Years in Federal Prison, Ordered to Pay $2.2M in RestitutionRead the Press Release
An Aubrey woman was sentenced Monday to 10 years in prison and ordered to pay more than $2.2 million in restitution for defrauding elderly victims in romance schemes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ijeoma Okoro, 33, was indicted in September 2021 and proceeded to trial in December 2023. After seven days of trial and 10 hours of deliberation, a jury convicted her of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. She was sentenced by Chief U.S. District Judge David Godbey to 10 years on each count, to run concurrently.
According to evidence presented at trial, Ms. Okoro and other fraudsters assumed fake names and trolled dating sites like Match.com and Zoosk, searching for targets.
Once the fraudsters ingratiated themselves to their often divorced or widowed victims with promises of long-term commitment, the fraudsters concocted elaborate stories about why they needed financial assistance. A common story was that the fraudster had to travel overseas for work and was unable to access his bank accounts. As a part of the story, the fraudster often claimed to experience an unexpected work-related crisis or a sudden family medical emergency. The fraudster then asked the victims for money to cover the expenses and promised to repay them in the near future.
Trusting victims sent thousands of dollars to bank accounts opened by the defendant and her coconspirators in the Northern District of Texas. The defendant then distributed the fraudulent proceeds to coconspirators and retained a portion for herself.
At Monday’s sentencing hearing, Chief Judge Godbey applied a sentencing enhancement for the defendant’s obstruction of the administration of justice, finding that Ms. Okoro committed perjury when she testified at trial that she never conspired with anyone to commit fraud or money laundering.
To date, four other codefendants have also been convicted for their involvement in the scheme, including: David Animashaun, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud; Oluwalobamise Michael Moses, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud; Emanuel Stanley Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud; and Frederick Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud. The remaining indicted codefendant, Chukwuemeka Orji, remains a fugitive.
IRS – Criminal Investigation led the investigation with assistance from the Federal Bureau of Investigation’s Frisco Field Office, the Department of Homeland Security, and the Department of Labor - Office of the Inspector General. Assistant U.S. Attorneys Mary Walters, Jenna Rudoff, and Elyse Lyons prosecuted the case.
Fentanyl Dealer Sentenced to 20 Years in PrisonRead the Press Release
A Dallas fentanyl trafficker who admitted to dealing more than 142,000 counterfeit pills was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrill Antwan Ray, 48, pleaded guilty in April 2023 to conspiracy to possess with intent to distribute a controlled substance and was sentenced Monday by Chief U.S. District Judge David Godbey, who called the amount of drugs in the case “staggering.
In plea papers, Mr. Ray admitted that during a 2019 raid on his apartment, law enforcement seized more than 28,000 counterfeit fentanyl pills weighing more than 12.5 kilograms.
During subsequent raids on the homes of two coconspirators, law enforcement seized an additional 114,000 counterfeit fentanyl pills, including 105,000 belonging to Mr. Ray, that weighed a combined 42 kilograms. They also seized an electromagnetic foil capping machine, hundreds of empty plastic pill bottles, more than $11,000 in U.S. currency, and two firearms.
In plea papers, Mr. Ray admitted to distributing more than 142,000 counterfeit fentanyl pills marked to resemble hydrocodone and oxycodone.
Court documents detail text messages in which Mr. Ray and a down-line distributor discussed drug debts and referenced “school busses” (code for narcotics), “blues” (slang for oxycodone), and “dros” (slang for hydrocodone).
“Today’s sentencing of Terrill Ray exemplifies the commitment of DEA Dallas and our numerous law enforcement partners to relentlessly pursue those who distribute illicit fentanyl,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “Mr. Ray is being held accountable for the poison that found its way into our community by his hand and the tens of thousands of pills that could have found their way into our love ones’ hands. DEA Dallas remains relentless in our efforts to rid illicit fentanyl from the streets of Dallas, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”
The Drug Enforcement Administration's Dallas Division and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, DeSoto Police Department and Cedar Hill Police Department. Assistant U.S. Attorney Linda Requénez and Abe McGlothin (fmr) prosecuted the case.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Mom Pleads Guilty to Providing Fentanyl That Killed Her Sons’ FatherRead the Press Release
An Albuquerque mother who concealed a deadly dose of fentanyl inside her children’s luggage pleaded guilty yesterday to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Magdalena Silva Banuelos, 47, was indicted in November 2022. She pleaded guilty Wednesday to distribution of fentanyl before U.S. District Judge Barbara M.G. Lynn.
In plea papers, she admitted she gave her sons’ father the fentanyl that killed him.
On May 31, 2022, Ms. Silva Banuelos put her sons, ages 8 and 10, onto a flight from Albuquerque to Dallas to visit her ex-husband, their father.
Surveillance video from Dallas / Love Field Airport shows that her ex-husband picked up the boys from the gate around 9:47 p.m., rifled through their luggage at around 10:17 p.m., and entered the airport restroom at around 10:26 p.m. A few minutes later, he overdosed and died in a restroom stall, just steps away from his sons. At 10:33 p.m., his sons exited the restroom, visibly distraught.
From inside the stall, investigators recovered a Clinique brand makeup container containing more than a gram of fentanyl. In plea papers, Ms. Silva Banuelos admitted she packed the fentanyl for her ex-husband’s use.
Text messages between him and Ms. Silva Banuelos confirmed that she knew he planned on ingesting the fentanyl and was aware of the risk it posed.
“Hey you need to be careful,” she wrote a few hours before he died.
“Yes ma’am. Very slow and easy,” he replied.
“Just one and then wait you’ll see,” she said. “Just one.”
“Ok cool. Thank you. Will do,” he said.“No passing out on the kitchen floor,” she responded. “Seriously you could od. No dying on the kitchen floor… It’s going to f**k you up!!!
At her January 2023 detention hearing, the prosecutor said Ms. Silva Banuelos “used her minor children to mule drugs.”
“This case is a double tragedy: A pair of young boys lost one parent to drugs, and the other to the criminal justice system,“ said U.S. Attorney Leigha Simonton. “This defendant allowed her two young sons to fly more than 500 miles cross-country with a highly lethal synthetic opioid stashed inside their suitcase, knowing full well how dangerous it was. These boys stood nearby as their father suffered a fatal overdose after ingesting it. The Justice Department will continue to fight until fentanyl is eradicated from our streets.”
“Fentanyl not only destroys individuals, it also destroys families. This tragic reality could not be more evident than when looking at the destruction caused by the actions of Ms. Silva Banuelos that terrible day,” said Special Agent in Charge Eduardo A. Chávez of the DEA Dallas Field Division. “The DEA will never stop working to remove this terrible drug and its even more terrible effects from our communities so tragic events like this can never happen again.”
Under the terms of her plea agreement, Ms. Silva Banuelos faces 12 years in prison.
The Drug Enforcement Administration’s Dallas Field Division and the Dallas Police Department conducted the investigation with the assistance of the Office of the Medical Examiner, Southwest Institute of Forensic Science at Dallas, and Dallas Fire & Rescue. Assistant U.S. Attorney Courtney Coker is prosecuting the case.
Two-Time Carjacker Who Kidnapped Victims Sentenced to 30 Years in Federal PrisonRead the Press Release
A carjacker who kidnapped two people in an attempt to avoid law enforcement was sentenced Monday to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anthony Scott Gordon, 36, was indicted in November 2020 and pleaded guilty in September 2022 to kidnapping, carjacking, and brandishing a firearm in the commission of a crime of violence. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.
In plea papers, Mr. Gordon admitted that on Aug. 6, 2020, he approached a Ford F150 parked off of Highway 20 in Fort Worth. With a gun in each hand, he ran up to the driver’s side door. As he shot one gun towards the street, he pointed the other at the driver, identified in court documents as M.G., and demanded she turn over the vehicle. Fearing for her life, M.G. exited the vehicle and he sped away.
Four days later, Mr. Gordon entered through rear door of a retail store in Richardson, pointed a gun at an employee, identified in court documents as A.J., and demanded her vehicle, which was parked outside. Fearing for her life, A.J. handed over her keys. Mr. Gordon told her he would shoot her if she tried to call the police, then got into the vehicle and drove away.
Mr. Gordon further admitted that in late August, he kidnapped a victim, identified in court documents as M.D., in an attempt to prevent her from disclosing his criminal activity to law enforcement.
Mr. Gordon refused to leave M.D.’s location, struck her in the head with a firearm, and crushed her iPhone in his bare hands, rendering it inoperable. The following day, he dragged her down a flight of stairs and forced her into his car at gunpoint. She screamed for help and attempted to fight back, but he pushed her into the backseat, then began driving her around Dallas, saying they needed to “get out of the state.” M.D. convinced him to park at a Motel 6, where she managed to flee.
Following her escape, the defendant messaged M.D., threatening, “I swear to god ima hurt you bad… I’m tellin u now ima find u I promised I’ll make it long and painful.”
In early September, he kidnapped yet another victim, identified in court documents as K.N., in an attempt to evade arrest.
Shortly after arriving in Fort Worth to conduct a drug transaction, Mr. Gordon spotted police and fled, jumping over multiple residential fences. He came upon K.N.’s house and entered through back door. He grabbed her by the neck, pointed a firearm at her, and led her at gunpoint towards the front of the house, where law enforcement was located. K.N. was able to break free and ran out the front door, where she was met by police.
A subsequent search of Mr. Gordon’s vehicle revealed a Smith & Wesson 40 caliber pistol and a stolen Mossberg 12-guage shotgun.
The Fort Worth Police Department, the Federal Bureau of Investigation’s Dallas Field Office, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Joseph Lo Galbo and Melanie Smith (fmr.) prosecuted the case.
After Jury Is Seated, Tax Preparer Pleads Guilty in $2.6 Million FraudRead the Press Release
Shortly after a jury was seated in his case, a Kennedale, Texas tax preparer pleaded guilty to a $2.6 million tax fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anthony “Tony” Floyd, 51, was charged in June 2023 with ten counts of aiding in the preparation and presentation of false tax returns. On the morning of his trial, shortly after a jury was seated, Mr. Floyd pleaded guilty to all 10 charges.
According to court documents, Mr. Floyd filed approximately 400 fraudulent tax returns that included false information designed to increase the amount of refund owed to the taxpayer.
He recruited victim “clients” outside big box stores and through other clients. He obtained their personal information, such as income and deduction information, via text or cell phone conversations, rarely meeting clients in person. Mr. Floyd purposely submitted the returns without reviewing with the taxpayer, then diverted all or most of the refund to his own account.
The resultant tax loss to the United States exceeded $2.6 million.
The tax filings included falsified W2s – filed on behalf of individuals purportedly working in catering, lawn care, event planning, interior décor, and other professions -- and included nonexistent charitable deductions, nonexistent college attendance, and even fictitious relatives.
“Mr. Floyd’s guilty plea shows that tax fraud is not a victimless crime,” said Christopher J. Altemus Jr., Special Agent in Charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Floyd took advantage of his neighbors by preparing fraudulent tax returns and trying to steal over $2 million from the U.S. government. Mr. Floyd’s case should remind all tax practitioners to adhere to professional standards and follow the law.”
“Everyone must ensure what is submitted is true and accurate when filing their taxes, even if they are prepared by a professional,” Altemus added.
Mr. Floyd now faces up to three years per count, for a total of 30 years in federal prison.
IRS – Criminal Investigations conducted the investigation. Assistant U.S. Attorneys P.J. Meitl, Nancy Larson, and Mark Nicols (fmr) prosecuted the case.
Fort Worth Meth Trafficker Sentenced to 25 Years in PrisonRead the Press Release
A methamphetamine trafficker who pleaded guilty on the eve of trial was sentenced to 25 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christian Allen Meers, 45, was charged via criminal complaint in June 2023 and indicted the following month. On Sept. 25, 2023, the morning his trial was set to begin, Mr. Meers pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to court documents, Mr. Meers operated his narcotics trafficking business out of a string of hotels, moving from hotel to hotel every few days to avoid detection by law enforcement.
On June 14, 2023, law enforcement officers in Fort Worth detained Mr. Meers and a female associate following a traffic violation. Inside Mr. Meers’ satchel, they found the key card to a nearby La Quinta Inn. His associate told officers there was methamphetamine stashed inside a bag in the hotel room.
During a search of the room, officers found a Louis Vuitton bag stuffed with plastic baggies filled with more than 4,500 grams of meth, along with two firearms that had previously been reported stolen.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted the case.
17 Charged in Abilene Drug BustRead the Press Release
Seventeen alleged drug dealers were charged following a large scale drug bust in Abilene on Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The operation involved more than 80 agents and officers from the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, the Abilene Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and IRS – Criminal Investigations. Over the course of the operation, agents seized 29 kilos of meth, 721 grams of cocaine, 1370 grams of fentanyl, and 60 firearms.
Those charged in four separate indictments unsealed Thursday include:
- Diana Nichole Perez, aka Diana Santana, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Orson Rolando Ortegon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Rafael Perez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Eddie Ochoa Lomas, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Angel Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Hannah Rai Gongora, aka Hannah Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances; possession with intent to distribute methamphetamine; and possession of firearms (a Taurus 9 mm semi-automatic pistol and a Sarsilmaz 9mm semiautomatic pistol missing a serial number) in furtherance of a drug trafficking crime
- Jacob Lee DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute cocaine
- Jason Eugene DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Nathaniel Deal, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Lisa Ann Beckham, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Gloria Santibanez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Petra Soliz, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Alexandrea Delgado, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Laura Trevino, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Juan Manuel Oliveros, Jr., charged with possession with intent to distribute methamphetamine
- Joseph Brassell, charged with possession to distribute fentanyl
- Joshua Gosson: charged with possession with intent to distribute methamphetamine and with possession of a firearms (a Rohm, RG10 Model, .22 caliber short barrel revolver) in furtherance of a drug trafficking crime
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants face up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, and the Abilene Police Department conducted the investigation with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and the IRS – Criminal Investigations. The cases are being prosecuted by the West Texas Branch of the U.S. Attorney’s Office for the Northern District of Texas.
Trafficker Who Brutally Assaulted Victims Sentenced to 30 Years in PrisonRead the Press Release
A DeSoto man who sex trafficked women for more than a decade was sentenced last week to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Phillip Jay Curlett, 34, was indicted in October 2023 and pleaded guilty later that month to conspiracy to commit sex trafficking through force, fraud, and coercion. He was sentenced Friday by U.S. District Judge Mark Pittman.
“Human trafficking is one of the most egregious crimes the HSI investigates,” said Homeland Security Investigations Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI’s role is simple; we will find and prosecute those who force victims into this degrading and inhumane lifestyle.”
According to court documents, Mr. Curlett trafficked multiple women, brutally beating several.
According to court documents, one victim told investigators that when she first met Mr. Curlett, he gave her a fake name and asked her to spend the night with him. Believing they were embarking upon a dating relationship, she consented.
He then drove her to a local motel and ordered her to “go to work.” That same night, she saw her first two commercial sex customers.
Mr. Curlett went on to advertise the victim’s commercial sex services online and forced her to tun her proceeds over to him, threatening to hurt her if she did not make enough money for him. He forced her to use methamphetamine so that she could stay awake to maximize profits, and assaulted her on multiple occasions, including after she tried to leave.
Homeland Security Investigations conducted the investigation with the assistance of the North Texas Trafficking Task Force. Assistant U.S. Attorney Brandie Wade prosecuted the case.
Man Who Stole 70 Firearms Sentenced to 10 Years in PrisonRead the Press Release
Midland man who committed a burglary of College Avenue Jewelry and Pawn in Snyder, Texas sentenced to the statutory maximum 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Bradley Lynn Bishop, 46, was charged via criminal complaint in June 2023 and pleaded guilty to one count of theft of firearms from a Federal Firearms Licensee in September 2023. Mr. Bishop was sentenced today before U.S. District Judge James Wesley Hendrix who made the statement at the hearing, “We have to bolt down everything in this courtroom or you would steal it.”
“We are proud to have worked with ATF on this case and will continue to work tirelessly with our law enforcement partners to bring defendants who steal from Federal Firearms Licensees to justice,” said U.S. Attorney Simonton. “Solving burglaries and robberies of our Federal Firearm Licensee partners is at the top of ATF’s national priorities.”
“Mr. Bishop thought that he could act under the cover of darkness, in a company vehicle, and make a quick buck selling stolen guns. He was wrong. He was wrong again when he tried to run from officers. Snyder and the surrounding communities are safer with Mr. Bishop off the streets,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, on June 26, 2023, law enforcement responded to College Avenue Jewelry and Pawn in response to a burglary where 70 firearms were stolen from the business the previous day. During the investigation, law enforcement determined that the building appeared to have been breached by a hole cut in the wall. Once in the building the suspect unlocked and unlatched the rear door. The alarm sensors on the top of the rear exit door were also disabled and wires removed. A nearby business had a camera that faced the rear of the Pawn shop and revealed a white Dodge pickup pulling into the back of the shop. The truck was observed coming and going from the business three separate times, an individual could be seen walking to and from the truck with a bag in their hand.
Law enforcement searched a local license plate reader system for a vehicle matching the Dodge truck and a match was found. The license plate was confirmed to be a company truck for Trend Services. The company was contacted and they advised that the vehicle had GPS tracking and had been located near College Avenue Jewelry and Pawn on the night of the burglary. Trend Services also confirmed that Mr. Bishop was the driver assigned to that vehicle.
The day after the burglary, law enforcement went to the residence of Mr. Bishop. The Doge pickup was parked behind the house, as agents approached the pickup they observed the driver’s side door open and a pair of feet on the ground next to the door. Mr. Bishop fled the scene on foot and was taken into custody after a foot chase. A search of the truck revealed six of the firearms and an electrical meter stolen from the Pawn shop.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Snyder Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Convicted Felon Sentenced to 12.5 Years in Federal PrisonRead the Press Release
Dallas woman sentenced to 12.5 years in federal prison for drug and firearm charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Danette Ozuna, 48, was indicted in October 2022 and she pleaded guilty in September 2023 to one count each of possession of a controlled substance with intent to distribute and possession of a firearm by a convicted felon. Ms. Ozuna was sentenced Wednesday by U.S. District Judge Brantley Starr. According to court documents, in March 2022 a confidential informant made multiple purchases of methamphetamine from Ms. Ozuna at the Star Motel located in Dallas. Following those purchases, in May 2022 law enforcement executed a search warrant at the hotel and located Ms. Ozuna in the hotel room. While she was being taken into custody, Ms. Ozuna told officers there was a handgun under the pillow of the bed. During the search, officers located a handgun, drug ledger, bank bag containing $7,006 in cash and a red bag containing methamphetamine. Additional methamphetamine was located in the nightstand drawer. At the sentencing hearing, prosecutors discussed a sign in the hotel room that listed rules for drug purchases:Please Read First!
1) I don’t want to do no fronts, and if I do the price goes up!
2) You only get a price break when 4 and up
3) If you Owe me money you will not get more until Debt is cleared.
4) price went up on me So goes up for you too!
4 - 650
1 - 175.00
½ - 125.00
7 - 80.00
8 Ball - 50
Teen - 30
Anything above that 150 piece
5) what you have $ for is what you will get - ne extra, No fronts
I have too much money out and I have my own Bills to pay!
If you ask after Reading this you will Be directed back to read it Over again!
No exceptions! Thank you!
Ms. Ozuna was convicted on April 2, 2014 of a crime in the 86th Judicial District Court of Kaufman County and was sentenced to 10 years imprisonment. That conviction made it a federal crime for her to possess a firearm.
The Drug Enforcement Administration, Kaufman County Sheriff’s Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the case.
Government Employee Indicted for Obstruction and False StatementsRead the Press Release
A Plano man has been charged with obstruction and making a false statement, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Fredrick Antonio Waters, 47, was indicted last week on one count each of obstruction of official proceeding and false statement. He was arrested Thursday and made his initial appearance Friday before U.S. Magistrate Judge Renee Harris Toliver.
According to the indictment, on February 8, 2022, Mr. Waters disclosed to an individual that she was the target of a criminal investigation. When a Special Agent with Homeland Security Investigations asked Mr. Waters about disclosing the information he responded by saying, “No I was looking up an humanitarian case and typed in the wrong Anumber.” That statement was false because Mr. Waters knew he deliberately typed an Alien number issued to a specific individual to find out if she appeared as a subject in any Department of Homeland Security investigative system.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Waters is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 25 years in federal prison.
The Homeland Security Investigations – Office of Professional Responsibility – El Paso office conducted the investigation. Assistant U.S. Attorney Mary Walters is prosecuting the case.
Darknet Fentanyl Dealer Sentenced to 24 YearsRead the Press Release
A darknet fentanyl dealer was sentenced Friday to 293 months in federal prison for multiple drug crimes and possession of child pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.Sean Shaughnessy, 55, was indicted in April 2019 and was convicted at trial in June 2023 of conspiracy to possess with intent to distribute a controlled substance, conspiracy to possess with intent to distribute a controlled substance analogue, distribution of controlled substances, and possession of child pornography. He was sentenced before U.S. District Judge Sam A. Lindsay.
According to evidence presented at trial, Mr. Shaughnessy sold fentanyl, carfentanil (a frequently abused elephant tranquilizer), pentedrone, and fentanyl and pentedrone analogues over the dark web, an unindexed portion of the internet accessible only via specialized software that allows users to conduct transactions with relative anonymity. His buyers purchased the drugs on dark web marketplaces using cryptocurrencies like bitcoin, and Mr. Shaughnessy shipped the drugs to their addresses in the Dallas area and all over the world.
Multiple former customers testified at Mr. Shaughnessy’s trial, noting the drugs Shaughnessy sold them, including fentanyl and its analogues, arrived to their DFW area homes very quickly and were of high potency.
Just days after purchasing fentanyl analogues from Mr. Shaughnessy, one of his customers, a young man in his 20s, died of an overdose involving that substance.
A Homeland Security Investigations Special Agent testified about the undercover operation that identified Mr. Shaughnessy, explaining that Mr. Shaughnessy directed tens of thousands of dollars of his illicit drug proceeds to be sent to Mr. Shaughnessy in the Dallas area.
Another agent testified that during an interview with law enforcement, Mr. Shaughnessy claimed that the agents would have to “check his taxes” to determine what Mr. Shaughnessy did for a living. Agents contacted the Internal Revenue Service, which indicated Mr. Shaughnessy had filed no taxes for the relevant time periods.
In a video of his July 2016 arrest played for the jury, Mr. Shaughnessy, with white powder visible around his nose, removed and dropped a baggie of drugs from his pocket while officers were placing handcuffs on him, and he then attempted to kick it out of officers’ view. When officers noticed the baggie, the defendant insisted, “that ain’t mine,” though it was plainly visible on the officers’ body-camera footage.
Homeland Security Investigations’ Dallas and New York Field Offices conducted the investigation in partnership with the U.S. Postal Inspection Service, U.S. Customs & Border Protection, the Irving Police Department, and the Sacramento District Attorney’s Office. Assistant U.S. Attorneys Joe Magliolo and Gary Tromblay prosecuted the case.
Ex-FBI Agent Sentenced to 7+ Years in Prison for Secret Probation SchemeRead the Press Release
A retired FBI agent who convinced a Granbury woman she was on “secret probation” and conned her out of more than $700,000 was sentenced Tuesday to 87 months in prison followed by a term of three years supervised release, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In August 2023, after 12 days of trial, a federal jury convicted William Roy Stone, Jr., 65, of one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer. He was sentenced Tuesday by U.S. District Judge Ada Brown.
Coconspirator Joseph Eventino DeLeon, 64, was also convicted at trial of conspiracy to commit wire fraud. Mr. DeLeon is scheduled to be sentenced March 5, 2024.
According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”
He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation.” They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the multiple six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.
Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.
When C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”
In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.
They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her.
The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch prosecuted the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
Two Fort Worth Gang Members Sentenced for Trafficking FentanylRead the Press Release
Two individuals have been sentenced to a combined 20+ years in federal prison for trafficking fentanyl in the Fort Worth area, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.First, Rhance Guerin, 27, was charged in August 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 108 months in prison.
According to court documents in Mr. Guerin’s case, on August 2, 2023, based on information that Mr. Guerin was selling fentanyl pills, the Johnson County STOP Special Crimes Unit (STOP SCU) conducted an arrest and search warrant operation in Fort Worth, Texas resulting in the arrest of Mr. Guerin and the seizure of 425.05 grams of fentanyl, 3.923 kg of marijuana, 14.65 grams of cocaine, 253.90 grams of psylocibin, and 3 firearms. Mr. Guerin is a documented Crips gang member.
Second, Willie Bryant, 39, was charge in May 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced on February 2, 2024 by U.S. District Judge Mark Pittman to 135 months in prison.
According to court documents in Mr. Bryant’s case, on May 25, 2023, a Crime Stoppers Tip was received that Bryant was distributing black tar heroin, cocaine, crack, fentanyl, China white heroin, Xanax, and ecstasy from a Fort Worth residence. Law Enforcement obtained a search warrant for the residence and located approximately 24 grams of methamphetamine, 15 grams of black tar heroin, 51 fentanyl pills, 5 grams of cocaine and 1.65 ounces of marijuana near the location where Mr. Bryant was located. A search of the bathroom revealed a large cutout in the wall behind a mirror that contained 10 firearms, drivers licenses, identification cards, bank cards and social security cards issued to 10 different individuals. A doctor’s prescription pad, two bricks of fentanyl, a brick of heroin, a clear plastic Tupperware container containing methamphetamine, two plastic containers containing ecstasy pills, two plastic containers containing black tar heroin, and a small plastic container with additional fentanyl powder were also located in the cutout.
Homeland Security Investigations conducted the investigations. Assistant U.S. Attorney Shawn Smith prosecuted the cases.
Texas Doctor Convicted of Illegally Prescribing Highly Addictive OpioidsRead the Press Release
Following an 8-day trial, a Texas doctor who unlawfully prescribed powerful opioids has been convicted of one count of conspiracy to distribute a controlled substance and six counts of unlawful distribution of a controlled substance, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
On Monday, a jury convicted Leovares A. Mendez, a 58-year-old doctor who co-owned and operated Cumbre Medical Center, LLC in Dallas, on all counts. He will be sentenced at a later date.
Codefendant Cesar Pena-Rodriguez, 56, pleaded guilty on January 17, 2024, 5 days before trial was scheduled to begin, to one count of conspiracy to distribute a controlled substance. Dr. Pena-Rodriguez is scheduled to be sentenced on April 22, 2024.
According to evidence presented at trial, Dr. Pena-Rodriguez and Dr. Mendez issued numerous prescriptions without a legitimate medical purpose and outside the usual course of professional practice. Specifically, the defendants repeatedly issued prescriptions for controlled substances, including hydrocodone, alprazolam, and tramadol to undercover agents posing as patients in exchange for $250 cash payments.
The defendants sold medically unjustified prescriptions to undercover agents in 24 undercover visits. At trial, the evidence showed Dr. Mendez issued prescriptions despite performing only minimal or perfunctory medical evaluations during short visits, some only lasting one minute. Video and audio recordings of the visits made by the undercover officers showed a pattern of the officers requesting the medications by name with no complaint of pain. On multiple occasions, Dr. Mendez coached the undercover officers as to what to say if ever contacted by law enforcement in relation to the illegal prescriptions.
Dr. Mendez now faces up to 140 years in federal prison – 20 years per count.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max, Marty Basu and Renee Hunter prosecuted the case, with support from Assistant U.S. Attorney Gail Hayworth.
Man Sentenced to 17 Years in Prison for Child PornographyRead the Press Release
A Mansfield, Texas man who used Snapchat to inappropriately communicate with 14-year-old boy was sentenced Friday to 210 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Juan Aguilera Duran, 33, was charged via criminal complaint in May 2023 and was indicted in August 2023. He pleaded guilty in October 2023 to receipt of child pornography. He was sentenced Friday by U.S. District Judge Reed C. O’Connor, who also ordered the defendant to a lifetime of supervised release.
“Our dedicated federal prosecutors are committed to taking child predators like this defendant off the street,” said U.S. Attorney Simonton. “We thank the Secret Service and Mansfield Police Department for their tireless efforts in investigating cases like this to keep the kids in our communities safe.”
“The Secret Service is committed to using our forensic and investigative capabilities to help catch criminals who prey on the most vulnerable among us,” said Christina Foley, Acting Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “We are proud of the coordinated effort with our partners from the Mansfield Police Department and U.S. Attorney’s Office to ensure that justice was served.”
“The Mansfield Police Department values partnerships,” said Mansfield Chief of Police Tracy Aaron. “This case is a testament to the great work that occurs when agencies collaborate and work together for the common good to fight evil in our community. This particular unit is established to protect our most valuable and vulnerable, our kids. Job well done from the start to the finish.”
According to court documents, on August 13, 2022, the Mansfield Police Department was dispatched to a residence in Mansfield, Texas to meet with a 14-year-old boy who received sexually explicit messages, images and videos via Snapchat from Mr. Duran. Search and arrest warrants were obtained that later resulted in Duran pleading Guilty to receiving Child Pornography.
Mr. Duran later pled guilty to receiving images of child pornography on his computer.
The Mansfield Police Department, Tarrant Co. District Attorney’s Office Digital Forensics and Technical Services, and Secret Service conducted the investigation. Assistant U.S. Attorney Brandie Wade prosecuted the case.
Four Plead Guilty to Healthcare Offenses, Including Doctor and Lab OwnersRead the Press Release
Four defendants in separate, but related, cases pleaded guilty for their roles in a scheme to pay and receive kickbacks in relation to toxicology tests, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Mark Rubin, 58, Renee Field, 44, Kelly Nelson, 52, and Carlos Hornedo, 61, were all charged via felony informations in December 2023. Mr. Rubin, on January 17th, and Mr. Hornedo, on January 10th, both pleaded guilty to one count of conspiracy to solicit and receive illegal kickbacks. On December 13th, Ms. Field and Ms. Nelson both pleaded guilty to one count of conspiracy to pay and receive health care kickbacks. The defendants each face a maximum penalty of not more than five years in federal prison, a $250,000 fine, and may be ordered to pay restitution.
According to the plea documents filed in the case, Ms. Fields was the owner and the Clinical Director at RK Clinical Solutions, LLC (“RK”). Ms. Nelson was the co-owner of RK. RK sought to financially incentivize medical providers to send tests to RK by providing them with illegal financial incentives that were disguised as legitimate business transactions.
Dr. Rubin, a pain management doctor, agreed to submit the majority of his toxicology orders to RK in exchange for kickbacks He also agreed to order a significant number of toxicology tests to justify the kickbacks. RK was paid by Medicare and other federal healthcare programs in excess of $481,000 and in exchange, Dr. Rubin received over $330,000 in kickbacks. The kickbacks consisted of medical advisor agreement, in which Dr. Rubin would be paid for theoretical advisory services. Dr. Rubin did not perform services sufficient to justify his compensation, was not paid on an hourly rate, and the agreements were used as a way to funnel kickbacks to Dr. Rubin.
In a similar fashion, Dr. Hornedo, a medical doctor, agreed to order certain toxicology tests for patients he saw and ordered the test to be performed by Unified Laboratory Services, LLC (“Unified”) and Spectrum Diagnostic Laboratory, LLC (“Spectrum”). Dr. Hornedo agreed to submit a substantial number of his toxicology orders to Unified and Spectrum in exchange for kickbacks. He submitted orders that resulted in billings by Unified and Spectrum in excess of $4,100,000 to federal health care programs. In exchange, Dr. Hornedo received approximately $412,000 in kickbacks, $45,000 in lease payments, $109,000 in medical advisor payments and ownership shares in Reliable Labs, LLC.
The Federal Bureau of Investigation, the Defense Criminal Investigative Service (DCIS), and the Veterans Affairs’ Office of Inspector General is investigating the case, along with the assistance of the U.S. Department of Health and Human Services’ Office of Investigations. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson are prosecuting.
Jury Convicts Slync FounderRead the Press Release
The founder of Slync, a supply-chain management software startup, has been convicted of defrauding investors out of at least $25 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Kirchner, 36, was charged via superseding indictment last month. He was previously charged via indictment with wire fraud and money laundering. After 4 days of trial, a jury convicted him today of four counts of wire fraud and seven counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to evidence presented at trial, Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was terminated by the Board of Directors due to allegations of misconduct – converted at least $25 million in investor money to his own personal use.
Records indicate that Slync raised roughly $7 million in its Series A investment round and roughly $50 million in its Series B investment round. All investor funds, which were supposed to be used for “product development and other general corporate purposes,” were wired into the company’s account at Silicon Valley Bank.
Mr. Kirchner misappropriated the investor funds in various ways: Between April 2020 and March 2022, Mr. Kirchner initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then wired much of the money from the Chase account to his personal bank accounts. In addition, Mr. Kirchner wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account. He used some of those funds to buy a $16 million private jet and to secure a luxury suite at the stadium of a Dallas-area professional sports team.
When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner attempted to replace some of the money he had misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round. Slync’s Board of Directors never authorized a Series C investment round.
In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues – all of which were untrue.
Mr. Kirchner also fired a Slync employee after the employee reported to the Board of Directors that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.
Immediately following his suspension by the Board of Directors, in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems. He then attempted to delete approximately 18 gigabytes of Slync data, including emails.
Mr. Kirchner now faces up 20 years in federal prison per count of wire fraud and up to 10 years in prison per count of engaging in monetary transactions in property derived from specified unlawful activity .
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Nashonme Johnson, and Jay Weimer prosecuted the case. Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
Assistant Convicted at Trial of Amniotic Fluid ScamRead the Press Release
Following a five-day trial, a physician’s assistant who injected amniotic fluid into patients’ joints in a dubious attempt at pain management has been convicted of conspiracy to commit health care fraud and 12 counts of healthcare fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
On Monday, after less than one hour of deliberation, a jury convicted Ray Anthony Shoulders, a 36-year-old physician’s assistant at a Fort Worth pain management clinic, on all counts. He will be sentenced at a later date.
“Not only did this defendant attempt to scam Medicare out of hundreds of thousands of dollars, he did something far worse by potentially endangering his patients’ health in recommending that they be injected with a drug that had not been approved for that purpose,” said U.S. Attorney Simonton. “In a very real way, he sought to profit off of his patients’ pain for his financial benefit, and I am proud of our federal law enforcement partners and our experienced prosecutors for bringing him to justice.”
“Medicare providers who are motivated by greed and financial gain place our most vulnerable citizens at risk,” said Acting Special Agent in Charge Jeff Richards of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners will tirelessly pursue practitioners whose primary purpose is to amass profit instead of provide Medicare-approved services and procedures.”
According to evidence presented at trial, Mr. Shoulders and his conspirators submitted $788,000 in fraudulent claims and received more than $614,000 in reimbursements from Medicare for injecting amniotic fluid – the liquid that surrounds a growing fetus during gestation – into patients’ connective tissue in an off-label attempt to relieve joint pain.Certain amniotic products have been approved by the U.S. Food and Drug Administration for wound care, but not for pain management. (In fact, the FDA has issued repeated consumer alerts warning that biologics like amniotic fluid “have not been approved for the treatment of any orthopedic condition, such as osteoarthritis, tendonitis, disc disease, tennis elbow, back pain, hip pain, knee pain, neck pain, or shoulder pain,” nor for “chronic pain or fatigue.”) Because amniotic products have not been approved to treat pain, Medicare considers amniotic injections administered to treat pain medically unnecessary and does not reimburse for them. They do reimburse for some – but not all – amniotic injections administered to reduce inflammation of damaged tissue, as in a wound.
Mr. Shoulders primarily used “Cell Genuity,” an amniotic product for which Medicare would not reimburse, neither for wound care nor for pain. Initially, because the product was not covered by insurance, Mr. Shoulders asked patients to pay out of pocket more than $800 per injection. Due to the high cost and questionable efficacy, however, many patients refused.
In August 2020, Mr. Shoulders identified an amniotic product, known as “Fluid Flow,” that he believed he could convince Medicare to reimburse for in certain circumstances. He spoke with a sales rep about Fluid Flow reimbursement rates and billing requirements but did not purchase any Fluid Flow, which was significantly more expensive than Cell Genuity.
Instead, he continued to inject Cell Genuity into patients but billed the shots to Medicare under Fluid Flow’s unique code, Q4206. Because they were told insurance would cover the cost of the injections by Shoulders and other conspirators, patients readily consented to the procedure.
The pain clinic profited approximately $1,200 per cc of Cell Genuity they injected. (Had the clinic used Fluid Flow, they would have made only around $400 per cc.) From August to October 2020, the clinic submitted more than 100 bills for Fluid Flow to Medicare and received around $400,000 in reimbursements. Mr. Shoulders then received a cut of those reimbursements totaling over $200,000.
In November 2020, in an attempt to avoid detection, Mr. Shoulders suddenly halted the scheme after he became concerned that a sudden increase in the volume of billings might attract the attention of investigators. With no repercussions over the ensuing 10 months, Mr. Shoulders re-engaged in the scheme in October 2021 and continued through December 2021.
Mr. Shoulders now faces up to 240 years in federal prison – 20 years per count.
The Department of Health & Human Services’ Office of Inspector General (HHS - OIG) conducted the investigation with the help of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson prosecuted the case.
Drug Traffickers Sentenced to Combined 21 Years in PrisonRead the Press Release
Three defendants have been sentenced to a combined 21 years in federal prison for their roles in a drug trafficking conspiracy, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Brian Daniel Ramirez, 45, Rodney Leon Dunn, 63, and Robby Layne Dunn, 62, were indicted for Conspiracy to Possess with Intent to Distribute a Controlled Substance in August of 2023. In October of 2023, Mr. Ramirez, Mr. Rodney Dunn, and Mr. Robby Dunn plead guilty to one count each of Conspiracy to possess with intent to distribute methamphetamine.
On January 18, 2024, U.S. District Judge Mark Pittman sentenced Mr. Ramirez to 14 years in federal prison; Mr. Rodney Dunn to 4.5 years in federal prison, and Mr. Robby Dunn to 2.5 years in federal prison.
According to court documents, the investigation began in June of 2023 when Hood County Sheriff’s Office Street Crimes Unit (HSCO SCU) began investigating the methamphetamine trafficking activities of the Brian Ramirez Drug Trafficking Organization (DTO).
HCSO SCU deployed numerous investigative techniques and identified a suspected drug stash location in Granbury, Texas operated by Mr. Ramirez. The investigation resulted in the seizure of approximately 1 kilogram of crystal methamphetamine, approximately 3 ounces of cocaine, and the arrests of Mr. Ramirez, Mr. Robby Dunn, and Mr. Rodney Dunn for their roles in the Ramirez DTO.
The DEA Fort Worth with the assistance of the Hood County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Dallas Business Owner Charged with Tax EvasionRead the Press Release
A Westlake man who owns several businesses, bars and nightclubs in the DFW area who allegedly hasn’t paid taxes since 1992 has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dhanesh Deoraj Ganesh was indicted Wednesday, January 17th on five counts of tax evasion, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of conspiracy to launder monetary instruments. He was arrested on Friday and made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford Monday.
According to the indictment, Mr. Ganesh, 62, allegedly concealed his ownership in his businesses by using nominee names, including his ex-wife, his brothers, and his sons. Mr. Ganesh did not have bank accounts in his personal name and did not have signatory authority on bank accounts opened in the names of the companies he controlled. Payments from these businesses were collected in check and cash form. The checks were cashed at check-cashing businesses and then used to purchase cashier’s checks in amounts under $3,000.
Mr. Ganesh has not filed a personal or business income tax return since 1992.
The scheme allegedly resulted in approximately $1.6 million in unpaid taxes.
In addition, Mr. Ganesh and others used some of the restaurants and bars to sell cocaine.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Ganesh is presumed innocent until proven guilty in a court of law.
If convicted, he faces a maximum penalty of 5 years in prison for each of the five counts of tax evasion, 20 years in prison for conspiracy to possess with intent to distribute a controlled substance, and 20 years in prison for conspiracy to launder monetary instruments.
IRS – Criminal Investigations’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Mary Walters of the Northern District of Texas is prosecuting the case.
Meth Trafficker Sentenced to Life in PrisonRead the Press Release
An Amarillo drug trafficker was sentenced yesterday to life in prison for trafficking methamphetamine, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In September 2023, after five days of trial, a federal jury convicted Mandis Charles Barrow, 45, of one count of conspiracy to distribute or possess with intent to distribute 500 grams or more of methamphetamine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk.
According to evidence presented at trial, on February 18, 2021 a traffic stop was conducted on a vehicle Mr. Barrow was driving. The officer conducting the traffic stop suspected there may be narcotics inside the vehicle and requested a canine officer. The canine alerted to the odor of narcotics coming from the vehicle. During a search of the vehicle, officers located $15,000 and a baggie of methamphetamine inside the glove box and a shoebox in the trunk that contained approximately 8.8 pounds of methamphetamine. Mr. Barrow was arrested following the search. While in custody, Mr. Barrows made phone calls to a family member requesting evidence be removed from Barrow's residence.
In October 2022, a search of a residence in Amarillo was conducted and approximately 108 grams of fentanyl, 853 grams of cocaine, and 2,944 grams of methamphetamine were located in the kitchen area. Mr. Barrow later admitted to dropping off the narcotics at that residence.
According to evidence presented at trial, during an interview Mr. Barrow admitted to being involved in the distribution of large amounts of controlled substances, including, methamphetamine, cocaine, and pills containing fentanyl.
During sentencing, these facts were discussed at length and Judge Kacsmaryk stated that the life sentence for Mr. Barrow was based on the defendant’s long and violent criminal history starting when the defendant was 18. The defendant’s first violent conviction, Aggravated Robbery, where the defendant robbed a man at gunpoint and forced the man into the man’s residence where Mandis took by force all of the man’s money (around $46). The defendant also had a prior conviction for assaulting a man by pulling him from a vehicle and beating him, even when unconscious. The defendant has two prior drug distribution convictions, one of those federal. Significantly, the Court stated that Mr. Barrow engaged in drug trafficking and violence his “whole adult life.”
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Anna Marie Bell prosecuted the case.
Men Who Assaulted an ATF Agent SentencedRead the Press Release
Two men who assaulted an ATF agent and another individual during an undercover operation were sentenced today to a combined 39 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Decorian Lynndale Titus, 19, and Damon Gentry, 23, were charged via criminal complaint in May 2023 and indicted in June 2023. Mr. Titus and Mr. Gentry both pleaded guilty in September 2023 to one count each of assaulting certain officers, brandishing a firearm in relation to a crime of violence, and possession of a firearm by a convicted felon. They were sentenced today by U.S. District Judge Reed C. O’Connor to 324 months and 144 months, respectively, in federal prison.
According to court documents, on May 18, 2023, an undercover ATF agent met with Mr. Titus and Mr. Gentry to purchase marijuana and guns. During the meeting, the defendants pulled their guns on the ATF agent and demanded the agent’s firearm and money. Mr. Titus stole the agent’s gun and money and ordered him to lay on the ground and not get up. He also threatened to shoot the other individual.
Mr. Titus and Mr. Gentry ultimately left the agent and the other individual and fled. As they were fleeing, Mr. Titus pointed his guns (one in each hand) at plain-clothed (but marked) officers outside whereupon agents fired on Mr. Titus. He was hit, dropped one pistol, and fired a shot. Mr. Titus was arrested that day; Mr. Gentry got away, but was arrested later.
The Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms, & Explosives, Texas Rangers, Fort Worth Police Department, and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Major Supplier and Two Others Involved in the Carrollton / Flower Mound Juvenile Overdose Case SentencedRead the Press Release
Three defendants were sentenced today to a combined 35 years in federal prison for their roles in the drug conspiracy that claimed the lives of three teenagers in north Texas, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jason Xavier Villanueva, 23, Robert Alexander Gaitan, 20, and Rafael Soliz, Jr., 23, were indicted in a superseding indictment in March 2023. In June 2023, Mr. Villanueva and Mr. Soliz pleaded guilty to one count each of conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl to a person under 21 years of age. In July 2023, Mr. Gaitan pleaded guilty to conspiracy to possess with the intent to distribute 40 grams or more of fentanyl. Today, U.S. District Judge Ed Kinkeade sentenced Mr. Villanueva to 15 years in federal prison; Mr. Gaitan to 5 years in federal prison; and Mr. Soliz to 15 years in federal prison.
“Precious children in our north Texas community died—and more overdosed and almost died—as a direct result of these defendants’ actions, and I am proud of my dedicated prosecutors for working tirelessly with our law enforcement partners to bring these men to justice,” announced U.S. Attorney Simonton. “We will not stop until every dealer or trafficker knows that we will prosecute you to the fullest extent of the law if you distribute the deadly drug of fentanyl.”
“I was at today’s sentencing and heard statements from both the defendant’s and the victim’s family and friends. Nobody won today. This is what drug trafficking and abuse does. Lives have been destroyed and tragically some we will never get back,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “The men and women of the DEA Dallas will continue to relentlessly pursue those who distribute illicit fentanyl, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”
“Justice was served today in these cases,” announced Carrollton Police Department Chief Roberto Arredondo. “This national crisis is a priority for us; we will not rest until we have rid our great community of this poison, and those responsible for preying upon our citizens are behind bars. The Carrollton Police Department appreciates the hard work of our school resource officers in the Carrollton-Farmers Branch Independent School District and the Lewisville Independent School District. CPD also thanks our partners in law enforcement including the Drug Enforcement Administration’s Dallas Field Office for their tireless work against this national problem.”
In court documents, Mr. Villanueva admitted he distributed more than 200,000 fentanyl pills to north Texas customers over the course of five or six months, at a rate of about 40,000 pills per month. He sold the pills – round blue tablets marked M-30 – to a network of juvenile and adult dealers, including Mr. Gaitan and Mr. Soliz, who went on to sell to friends, classmates, and other customers in Carrollton. He often advertised on Instagram and following the arrest of one of his codefendants in February 2023 posted, “Only thing that’s gonna stop us is feds.” Villanueva was identified during the investigation as being one of the primary sources of counterfeit M30 pills.
At today’s hearing, prosecutors discussed the overdose of several children ages 13 – 17 years of age, including two middle school and one high school student who died after taking the fentanyl pills. The defendants knew the ages of the students they were selling to and knew the pills they were selling contained fentanyl.
Ten individuals have been charged in the drug conspiracy and are tied to at least 12 juvenile overdoses – three of them fatal – in Carrollton and Flower Mound.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Mansfield Man Charged in Fraudulent Tax Return ScamRead the Press Release
A Mansfield man has been charged with 33-counts of filing fraudulent tax returns, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
John Anthony Castro, 40, was indicted on thirty-three counts of aiding and assisting in the preparation and presentation of a false and fraudulent return. He made his initial appearance Tuesday before U.S. Magistrate Judge Hal R. Ray, Jr.
“Mr. Castro’s alleged crimes are stunning in their brazenness,” said U.S. Attorney Simonton. “The Department of Justice will continue to hold people accountable who steal from the federal government’s—and the American public’s—pockets.”
"This is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Tammy Tomlins, Special Agent in Charge of the Newark Field Office. “Today’s indictment sends a clear message, you will be held accountable, if you abuse our tax system for your personal financial gain.”
According to the indictment, Mr. Castro owned and operated Castro & Company LLC. a virtual tax preparation business with locations in Orlando, Florida, Mansfield, Texas, and Washington, D.C. Starting in 2016, Mr. Castro devised a scheme to falsely create and submit false tax returns on behalf of unsuspecting taxpayers. Taxpayers would seek out Castro’s assistance in filing personal tax returns and Mr. Castro would promise a significantly higher refund than taxpayers could receive from other prepares and on many occasions offered to split the additional refund with taxpayers. In order to achieve these larger refunds, Mr. Castro generated false deductions without the taxpayer’s knowledge.
In 2018, an undercover agent, posing as a taxpayer, contacted Castro & Company, LLC for assistance. Castro refused to meet in person unless a $5,000 retainer was paid but offered to assist the undercover agent virtually. During a recorded telephone conversation, Mr. Castro stated that he could project the amount of the tax refund the undercover agent would likely receive from another firm and then compare that figure with the refund that Mr. Castro would obtain.
According to the indictment, an employee of Mr. Castro’s interviewed the agent over the telephone regarding deductions. The employee stated that Mr. Castro would make any decisions regarding what items would be included on the tax filing. The employee did not identify any deductions that would apply to the agent and in the course of the interview, the undercover agent denied any facts that would support deductions. On March 14, 2018, Mr. Castro filed the agent’s tax return claiming $29,339 in fraudulent deductions. The IRS issued a refund of $6,007, Mr. Castro received $2,999 for his services and the agent received the remaining amount of $3,008. As Castro told the taxpayer, he would have received only a $300 deduction had he used another tax preparer.
Mr. Castro continued in a similar pattern with dozens of other taxpayers, resulting in hundreds of thousands of improperly paid claims.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Castro is presumed innocent until proven guilty in a court of law.
If convicted on all counts, he faces up to 99 years in federal prison – 3 years per count.
The Internal Revenue Service, Criminal Investigation conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Federal Produce Inspector Indicted for False Reporting in Exchange for Bribe PaymentsRead the Press Release
A federal grand jury last week indicted a Mansfield, TX man for submitting false inspection reports in exchange for bribe payments, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Timothy Peppel, 68 years old, was a federal produce inspector with the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS). Peppel was responsible for conducting produce inspections and providing inspection reports to companies buying and selling produce.
According to prosecutors, a wholesale produce company, American Fresh Produce (AFP), began requesting produce inspections from USDA AMS in 2014 in order to rate their produce. AFP used the inspection reports to negotiate a price for the produce they purchased from produce brokers. Peppel was one of the inspectors who inspected and graded AFP’s produce and created inspection reports.
Shortly after Peppel started performing inspections of AFP produce, Peppel solicited and received weekly bribery payments of $1,000 to $1,500 from the owner of AFP. In exchange for the bribery payments, Peppel agreed to create produce inspection reports that falsely downgraded AFP’s produce, which AFP was able to use to negotiate lower prices for the produce they had purchased.
Peppel has been charged with one count of conspiracy to commit honest services wire fraud and receiving bribe by a public officer; five counts of honest services wire fraud; and one count of receiving bribe by a public official. If convicted, he faces up to five years in prison on the count of conspiracy; 20 years in prison on each count of honest services wire fraud; and 15 years in prison on the count of receiving bribe by a public; official plus restitution.
The FBI Dallas Office and U.S. Department of Agriculture - Office of Inspector General conducted the investigation, and Assistant U.S. Attorneys Marty Basu and Joshua Detzky are prosecuting the case. Assistant U.S. Attorney Marcus Busch assisted in the investigation of the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Lubbock Woman Sentenced to 30 Months in Federal Prison for Concealing PPP Loan FraudRead the Press Release
Lubbock woman was sentenced Thursday to 30 months in federal prison for concealing PPP Loan Fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Hope Leticia Hastey, 51, was charged via criminal information in August 2023 and pleaded guilty to one count of misprision of a felony. Ms. Hastey was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered her to pay $3,545,894.36 in restitution.
According to plea documents, Ms. Hastey founded Radar Supports, LLC, a company that provided certain contract services, including speech and occupational therapy and Radar Foundations, Inc., a non-profit that organized community fundraisers to benefit individuals with intellectual limitations. Radar Supports employed approximately 10 individuals and Radar Foundations did not employ anyone.
In May 2020, an assumed name certificate was filed for “Radar Supports Construction,” indicating Ms. Hastey as the owner. Radar Supports Construction never provided goods or services of any kind and never filed a tax return.
Ms. Hastey employed Andrew Travis Johnson, 59, —an accomplice in a separate case—to provide bookkeeping services for her business. During the Covid-10 pandemic, Mr. Johnson engaged in a bank fraud scheme to obtain loans for Radar Supports, Radar Supports Construction, and Radar Foundations through the Paycheck Protection Program (PPP). He obtained the loans by falsely inflating payroll data related to Radar Supports and Radar Foundations and fabricating payroll data for Radar Supports Construction.
Ms. Hastey signed the loan documents, which included certifications that the loan proceeds would be used for payroll costs and other business-related expenditures. Hastey failed to notify authorities of the fraud. Instead, to make it appear as though the loan proceeds were used for payroll costs, Hastey wrote a check to a colleague who worked for Radar Supports. The check was not intended for the colleague and was never given to the individual. Ms. Hastey deposited the check into another bank account she controlled.
In total, Ms. Hastey and Mr. Johnson applied for five PPP loans and received nearly $3.5 million. Ms. Hastey spent the money on personal expenses, including heavy equipment to help family members start a new business; a cash purchase of a new home; home renovations; multiple vehicles; vacations; clothing; cosmetic and dental procedures; college tuition; and expenses for a wedding. All five loans were forgiven.
According to court documents in Mr. Johnson’s case, he pleaded guilty to three counts of bank fraud, one count of identity theft and one count of engaging in monetary transactions in property derived from specified unlawful activity in March 2023. He was sentenced in August 2023 to 180 months in federal prison.
The Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation Division, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case. Assistant U.S. Attorney Saurabh Sharad handled the forfeiture.