Northern District of Texas
Press releases recorded for this federal judicial district.
Retired Cook Children’s Hospital Chaplain Sentenced to 60 Years in Prison for Child PornographyRead the Press Release
A Fort Worth, Texas man who recorded himself sexually abusing a minor was sentenced yesterday to 60 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Downs, 71, a retired Cook Children’s Hospital chaplain, was charged via criminal complaint in March 2023 and pleaded guilty in July 2023 to two counts of sexual exploitation of children. He was sentenced Thursday by U.S. District Judge Mark Pittman, who also ordered a lifetime of supervised release.
“This is an incredibly important case involving shocking and abhorrent conduct,” said U.S. Attorney Simonton. “One of our most veteran prosecutors worked on this matter along with our partners at Homeland Security Investigations and the Fort Worth Police Department to ensure that this defendant was brought to justice. Let this be a message to others who seek to prey on children in this way: We will do everything in our power to incapacitate you by locking you away in prison for as long as possible.”
“While preying on the vulnerability of our youth, those in positions of public trust should expect the most stern accountability for their actions,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “Due to our strong partnership with the Fort Worth Police Department, we were again successful in prosecuting another sexual predator and preventing the victimization of more children.”
According to plea papers, the investigation began on January 22, 2023 after a seventeen-year-old minor told her aunt she had been sexually abused by Mr. Downs. The minor female said Mr. Downs recorded the sexual abuse on an iPad.
Mr. Downs’ wife provided law enforcement with several electronic devices from their residence. Law enforcement located a hard drive that contained numerous videos and photos of Mr. Downs engaging in sexually explicit conduct with the minor.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.
Man Who Stole 37 Firearms Sentenced to 10 Years in PrisonRead the Press Release
Lubbock man who committed a burglary of a Lubbock Federal Firearms Licensee (FFL) sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
David Lara, 57, was charged via indictment in June 2023 and pleaded guilty to theft of firearms from a FFL in August 2023. Mr. Lara was sentenced today to 120 months in federal prison before U.S. District Judge James Wesley Hendrix.
According to court documents, during the summer of 2020 there were numerous burglaries of FFLs in and around Lubbock. On June, 28, 2020, Lara and another individual entered Gebo’s Distributing Inc. by prying back the sheet metal on the side of the building and gained access to the building through a storage area attached to the building.
Once inside the building, the individuals began breaking out the glass displays with a sledge hammer, removed 37 firearms from the cases and placed them in a bag. The bag containing the firearms was eventually dropped while they were fleeing the scene, along with gloves and ski masks they wore during the burglary. The gloves were recovered by the Lubbock Police Department and submitted for forensic analysis. DNA results were a match for Lara.
When interviewed, Lara admitted to committing the burglary.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Two Additional Defendants Charged in $26 Million Real Estate ScamRead the Press Release
Two more defendants have been charged for scamming Chinese investors out of more than $26 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Stephen Wall, 65, and Saskya Bedoya, 42, were charged in a superseding indictment filed this week with one count of conspiracy to commit wire fraud and one count of securities fraud. They are scheduled to make their initial appearances before U.S. Magistrate Judge Rebecca Rutherford on December 22, 2023.
According to the indictment, Mr. Wall and Ms. Bedoya conspired with Timothy Lynch Barton to market real estate investment opportunities in Texas to Chinese investors.
During presentations – which highlighted Mr. Barton’s supposed ties to U.S. politicians – Mr. Barton and Mr. Wall allegedly claimed that the properties in question were located in sought-after neighborhoods in the Dallas Fort Worth Metroplex. Mr. Wall was introduced as a builder who would purchase lots to build on to sell to future home buyers.
Investors were promised annual interest payments for two years, followed by the return of their initial investment at the end of the second year. It was alleged that the investors would contribute 80 percent of the funds necessary for the project, and Mr. Barton and Mr. Wall would contribute the remaining 20 percent. It was also represented that no commissions would be paid out of investor funds.
In loan agreements signed by the investors, the cost of each property was inflated by as much as 195 percent, and in some instances, never actually purchased the property. Early investors were allegedly paid interest payments with investor funds from later projects.
Contrary to loan agreements, the defendants allegedly paid commissions out of investors’ funds, and even funneled investors’ money into unrelated projects. Still other funds were used to pay consultants or even to pay an unrelated company’s AmEx bill. According to the indictment, investors lost more than $26,000,000 to the scheme.
An indictment is merely an allegation of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.
If convicted, each defendant faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to 20 years in federal prison for securities fraud.
Defendant, Mark Adams, 61, previously pled guilty in September 2022 to conspiracy to commit wire fraud in connection with the scheme. Additionally, codefendant, Haoqiang Fu a/k/a Michael Fu, 49, pled guilty in October 2022 to the sale of unregistered securities. Both are scheduled to be sentenced on February 21, 2024, and face up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
National Roofing Company Settles PPP Fraud Allegations for $9 MillionRead the Press Release
Fort Worth, Texas-based commercial roofing contractor Empire Roofing, Inc. and its nationwide network of roofing and disposal companies agreed to pay $9 million to resolve allegations that they violated the False Claims Act (FCA) by falsely certifying that eight of their affiliates were eligible to receive loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. Whether an applicant qualified for a PPP loan as a small business depended on various factors, including the number of employees of both the applicant and corporate affiliates. Subject to limited exceptions, only businesses that employed 500 or fewer employees were eligible to receive a PPP loan. When applying for PPP loans and loan forgiveness, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
Empire Roofing, Inc., along with affiliated businesses within its nationwide network, applied for and received a total of $6,705,700 in PPP loans. The loans were all later forgiven in full. Each applicant certified that they were a small business with fewer than 500 employees. Under applicable SBA rules, however, applicants were required to include employees of all affiliated companies when determining eligibility. The government contends that the Empire Roofing network of affiliated companies employed more than 500 employees and therefore that none of Empire Roofing’s affiliates were eligible to receive PPP loans or loan forgiveness under the CARES Act.
“PPP loans were intended to help small businesses during the Covid-19 pandemic,” said United States Attorney Leigha Simonton. “Our office invests significant time and resources to hold accountable those who obtained PPP funds for which they were not eligible and will continue to do so going forward.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Sidesolve v. Empire Roofing, Inc., et al., No. No. 3:22-CV-2060-B (N.D. Tex.). The relator, Sidesolve, Inc., will receive a $1 million share as part of the settlement.
This matter was handled by Assistant United States Attorneys William Admussen and Andrew Robbins, with assistance from Sandra Mazzoni of the SBA. The civil claims settled by this FCA agreement are allegations only; there has been no determination of civil liability.
Fort Worth Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
Leader of drug trafficking organization was sentenced to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alonzo Smith, 29, was charged in May 2023 via criminal complaint. He pleaded guilty in July to conspiracy to possess of a controlled substance with intent to distribute and was sentenced Thursday by U.S. District Judge Mark Pittman.
“Violent gangs that flood our neighborhoods with illicit drugs are a true threat to public safety,“ said Homeland Security Investigations (HSI) Dallas Special Agent in Charge Lester R. Hayes, Jr. “ The lengthy sentence imposed on this defendant highlights our commitment to disrupting and dismantling these transnational criminal organizations seeking to exploit our communities for financial gain.”
According to court documents, Mr. Smith and others – most heavily armed 5x2 Hoova Crip gang members - were responsible for operating multiple drug houses in the Fort Worth area. The residences were used solely to store and distribute large amounts of methamphetamine, cocaine and heroin. During a search warrant at one of the residences, law enforcement located 800 grams of methamphetamine, 188 grams of cocaine, 496 grams of black tar heroin and 300 grams of fentanyl.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Romance Scammer Convicted at Trial of Money Laundering, Wire Fraud ConspiraciesRead the Press Release
An Aubrey woman was convicted at trial Thursday of defrauding elderly victims in romance schemes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
After 7 days of trial and 10 hours of deliberation, a jury convicted Ijeoma Okoro, 33, of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
“I am so proud of the federal agents and our office’s prosecutors in this case, who worked diligently to hold the defendants accountable for conspiring to defraud these innocent victims of money and then conspiring to launder that money,” said U.S. Attorney Simonton. “Such schemes are especially despicable because the perpetrators prey on the emotions of the people they are victimizing. Our U.S. Attorney’s Office will continue to aggressively seek to bring such criminals to justice.”
“Ms. Okoro and her coconspirators stole money from retirement accounts, pensions and other sources as part of several romance scams,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “These individuals preyed on unsuspecting women and men, gaining their trust and confidence, in order to ultimately empty their bank accounts. This verdict should send a clear message to those who would consider conducting or participating in these types of fraudulent financial schemes.”
According to evidence presented at trial, the fraudsters assumed fake names and trolled dating sites like Match.com and Zoosk, searching for targets.
Once the fraudsters had 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 a bank account. To solve a work-related crisis or pay for urgent medical treatment for a family member, the fraudster asked the victims to send money to cover the expenses, promising to repay them in the near future. The 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 claimed a cut for herself.
The defendant now faces up to 20 years in federal prison on the wire fraud conspiracy count, up to 10 years in federal prison on the money laundering conspiracy count, and an order to repay the victims the losses that she and her coconspirators caused the victims.
IRS – Criminal Investigation led the investigation with assistance from the Federal Bureau of Investigation’s Frisco Field Office, Homeland Security Investigations, and Department of Labor Office of Inspector General. Assistant U.S. Attorneys Mary Walters, Jenna Rudoff and Elyse Lyons prosecuted the case.
Man Convicted of Firearms Trafficking SentencedRead the Press Release
Fort Worth man who trafficked firearms from Texas to California to convicted felons was sentenced today to 9 years in prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Justin Douangmala, 41, was charged via criminal complaint in July and pleaded guilty in August to conspiracy to traffick in firearms, in violation of 18 U.S.C. § 933(a)(3). He was sentenced today to 9 years in federal prison.
Mr. Douangmala is among the first defendants in the Northern District of Texas to plead guilty to an offense outlined in the Bipartisan Safer Communities Act, signed into law by President Biden in June 2022.
According to court documents, during a search warrant at Mr. Douangmala’s residence several firearms and drugs were located in his Fort Worth residence. Cell phone conversations further revealed Mr. Douangmala and others discussing silencers and firearms. In one of those messages, an individual asked Mr. Douangmala to send him pictures of firearms he had access to (as seen in the image below). Mr. Douangmala admitted to sending multiple firearms from Texas to California to a convicted felon. At the sentencing hearing, it was shown that Mr. Douangmala was also receiving large quantities of drugs from this individual in California that he was trafficking the firearms to in exchange.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division and Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
Kaufman, Texas Man convicted of Drug Free Zone Offense Sentenced to 97 Months in Federal PrisonRead the Press Release
A Kaufman man who distributed methamphetamine near a drug free zone, Kaufman High School, was sentenced Monday to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Kenneth Russell Barr, Jr., 55, pleaded guilty in May to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The offense occurred within 1000 feet of the real property comprising Kaufman High School, a public secondary school. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.
According to plea papers, law enforcement seized methamphetamine the defendant delivered during the weeks of May 2, and May 16, 2022. As a result of these seizures officers executed a search warrant at Barr’s residence. During the search officers located approximately 353 grams of methamphetamine. Multiple firearms were found at the residence as a result of the search (as seen in the Government’s Detention Hearing Exhibit below). As part of his guilty plea, Barr also admitted he was a convicted felon and that he knew he was not supposed to possess any firearms. Barr further admitted the place he distributed methamphetamine from is within 1000 feet of Kaufman High School.
The Texas Department of Public Safety investigated the case with assistance from the Kaufman County Sheriff’s Department and the Kaufman Police Department. Assistant United States Attorney George Leal prosecuted the case.
Dallas Importer and Two Chinese Companies to Pay $2.5 Million to Resolve Allegations of Underpaying Customs DutiesRead the Press Release
ADCO Industries (a/k/a Dallco Marketing, Inc.), a Dallas-based importer of industrial products, along with two Chinese companies and two individuals, has agreed to pay $2.5 million to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Customs laws require importers to pay duties on the price paid for imported goods. This settlement resolves allegations that ADCO, its owner Raymond E. Davis, customs broker Calvin Chang, and Chinese companies Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co., Ltd. conspired to underreport the value of imported goods delivered to ADCO in the United States.
Specifically, the government alleged that for customs valuation purposes, falsified invoices were created and submitted to U.S. Customs and Border Protection (CBP) containing false, lower values for the goods ADCO was receiving from China. It contended that a second set of correct invoices—invoices that were not submitted to CBP—were then used to ensure that ADCO paid its Chinese suppliers for the actual value of the goods. The government further alleged that this false invoicing practice resulted in the undervaluation of goods upon entry into the United States, which resulted in the loss of revenue in the form of customs duties and other fees.
“Customs laws are an important component of national security and, among other things, protect the public and American businesses from unfair competition,” said U.S. Attorney Leigha Simonton. “This office will continue to aggressively investigate and hold accountable anyone it believes has tried to cheat the government and the public at large through the manipulation of customs duties.”
“CBP’s Consumer Products and Mass Merchandising Center of Excellence and Expertise worked in collaboration with the U.S. Attorney’s Office to identify and review over 1,000 import entry lines entered by ADCO, as relevant to the underreporting allegations,” said Director Gregory Alvarez of the CBP Atlanta Field Office. “CBP is proud of the investigative work done by its experienced Import Specialists on the case and will continue to work collaboratively with inter-agency stakeholders to safeguard our nation’s economic security.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Reznicek et al. v. Dallco Marketing, Inc. et al., No. 3:22-CV-332-L (N.D. Tex.). The relators (whistleblowers), Donald Reznicek and Collen McFarland, will receive a $500,000 share as part of the settlement.
The matter was handled by Assistant United States Attorneys William Admussen and Brian Stoltz. The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.
Lab Owner Pleads Guilty to $1.7 Million COVID-19 Test Fraud SchemeRead the Press Release
A Plano man pleaded guilty Thursday to orchestrating a fraudulent scheme to obtain approximately $1.7 million from Medicare, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Damon Heath Roberts, 55, was charged via criminal information in September 2023 and pleaded guilty to one count of conspiracy to solicit or receive kickbacks for referrals to a federal health care program. He will be sentenced March 28, 2024 and faces a maximum penalty of 5 years in federal prison.
According to court documents, Roberts, owner of JDS Labs, admitted that he and others, including medical providers and others with access to patient information, began sharing Medicare beneficiary information so that JDS Labs could bill Medicare for over-the-counter COVID-19 tests. Roberts, in exchange for the patient information, would pay a kickback based on the reimbursement from Medicare to the medical providers or other individuals.
Roberts tried to conceal the kickback payments through the use of passthrough arrangements and cash payments.
Roberts submitted nearly $4 million in claims for the over-the-counter COVID-19 tests and received approximately $1.7 million in reimbursement for the claims. In addition, Roberts paid approximately $149,066 in bribes and kickbacks.
The Federal Bureau of Investigation's Dallas Field Office, U.S. Department of Health & Human Services’ Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit – DFW are investigating the case. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Amarillo Man Sentenced to 20 Years for Fentanyl DistributionRead the Press Release
A violent Amarillo fentanyl distributor has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Johnny Evrick Johnson, Jr., 30, was indicted in December 2022 and pleaded guilty in June 2023 to distribution and possession with intent to distribute fentanyl. Johnson was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk to 240 months in federal prison, an upward variance. At sentencing, the court discussed Johnson’s use of multiple “trap houses” and the fact that Johnson provided several of his coconspirators with firearms to engage in drug trafficking and other violent acts, including robberies. The court also discussed evidence that linked Johnson to two armed robberies that occurred in July 2019.
According to court documents, on June 8, 2022, Johnson agreed to sell an undercover officer 100 fentanyl pills. On June 10, 2022, Johnson meet with the undercover officer in a parking lot and distributed the fentanyl pills. This quantity of fentanyl is only consistent with distribution.
The Federal Bureau of Investigation conducted the investigation with assistance from the Drug Enforcement Administration, Amarillo Police Department, and several state and local partners. Assistant U.S. Attorney Sean Long prosecuted the case.
Tulsa, Oklahoma Man Sentenced to 54 Months for $7 Million COVID-19 Testing FraudRead the Press Release
A Tulsa, Oklahoma man who submitted fraudulent insurance claims for COVID-19 testing, resulting in a more than $7 million loss to insurers was sentenced Wednesday to 54 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
William Paul Gray, 50, was charged via criminal information in March and pleaded guilty to Conspiracy to Commit Health Care Fraud. He was sentenced by U.S. District Judge Brantley Starr. Mr. Gray was also ordered to pay over $7 million dollars in restitution.
According to plea papers, Mr. Gray admitted that he and his coconspirators accessed private patient information – including names, dates of birth, and insurance subscriber numbers – by accessing 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. Gray 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.
Also charged in the scheme are Connie Jo Clampitt, 52, Terrance Barnard, 40, and Don Hogg, 37. Clampitt, Hogg and Bernard have each pled guilty and are pending sentencing.
The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration, the Dallas Office 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 prosecuted the case. Assistant U.S. Attorney Dimitri Rocha handled the forfeiture.
For more information about the Justice Department’s response to wrongdoing connected to the COVID-19 pandemic, visit https://www.justice.gov/coronavirus.
Mansfield Woman Defrauds Health and Human Services Technology Solutions Company Out of $3.7 MillionRead the Press Release
A Mansfield woman pleaded guilty today to a $3.7 million wire fraud scheme, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Tanisha Adderley, 51, was charged via criminal information in September. She pleaded guilty to wire fraud before U.S. Magistrate Judge Irma Carrillo Ramirez.
“We are very proud of the work our Secret Service partners did in this investigation,” said U.S. Attorney Simonton. “No company should face the scenario that this one did, in which a trusted employee steals millions of dollars from its accounts. The Justice Department will not tolerate such breaches of trust.”
“The Secret Service has a long tradition of investigating those who aim to exploit our financial systems,” said Christina Foley, Acting Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “Working together with our partners in the U.S. Attorney’s office, we were able to put an end to this fraud scheme and ensure that those involved will be brought to justice.”
According to court documents, Ms. Adderley worked for a health and human services technology solutions company that recovered fees paid by their clients and remitted refunds to them via wires from their funds recovery bank account. Ms. Adderley had access to the funds recovery bank account and was responsible for obtaining approvals and processing fee refunds.
Over the course of five years, from 2019 to 2023, Ms. Adderley prepared false approvals and processed wire payments to non-vendor business bank accounts that were controlled by Ms. Adderley.
Ms. Adderley fraudulently obtained $3.7 million in company funds.
She now faces up to 20 years in federal prison. Her sentencing date is slated for May 6, 2024.
The United States Secret Service Dallas Field Office conducted the investigation. Assistant U.S. Attorney Nashonme Johnson is prosecuting the case.
Two Charged with $12 Million Health Care Fraud SchemeRead the Press Release
Two individuals were charged with submitting fraudulent claims for corticosteroid injections and other services that were not performed and unlawfully distributing hydrocodone, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted on November 14th on one count each of conspiracy to commit healthcare fraud, five counts each of healthcare fraud, and one count each of unlawful distribution of a controlled substance. The defendants were arrested November 16th, and made their initial appearances Friday morning.
According to court documents, the defendants operated a pain management clinic in Dallas where patients received prescriptions for high doses of hydrocodone, oxycodone, and morphine. Patients submitted to a short office visit each month and would receive their prescriptions. As part of those monthly visits, the defendants would submit fraudulent claims to the patients’ insurance companies representing that the patients received dozens of corticosteroid injections, when in fact, the patients received few injections or none. The doctors would place a needle on the patient’s body without actually piercing the skin to mimic an injection. If patients actually received any injections they would generally receive only a small amount. In many instances the defendants falsely represented that they provided over eighty injections to the patient on a single date of service. Fake medical records were also created to falsely reflect that injections were performed.
The doctors billed health care benefit programs over $50 million and were paid approximately $12 million for these fraudulent services.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face up to up to ten years in federal prison for each count of health care fraud and conspiracy to commit health care fraud. They face up to twenty years for the unlawful distribution of a controlled substance counts. They will also be required to forfeit any proceeds or property traceable to the commission of the offenses of which they’re convicted.
The U.S. Department of Labor, Office of Inspector General, U.S Department of Labor, Employee Benefits Security Administration, U.S Office of Personnel Management, Office of the Inspector General, Drug Enforcement Administration Dallas Field Division Diversion Group, Texas Department of Insurance – Fraud Unit – Austin and Ft. Worth Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Armed Carjacker Sentenced to 15 Years in Federal PrisonRead the Press Release
A Dallas man who carjacked a woman at gunpoint was sentenced last week to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Randy Hordge, 22, pleaded guilty in January 2023 to carjacking. He was sentenced Friday by U.S. District Judge Sam A. Lindsay.
“This is another example of the ATF’s and our U.S. Attorney’s Office’s commitment to aggressively pursuing those who commit violent crimes in Dallas,” said U.S. Attorney Simonton. “Reducing violent crime is not enough—we will not rest as long as any citizen is victimized in this way. I am proud that this case serves as an example of that commitment.”
“ATF remains vigilant and steadfast in our fight against violent crime in North Texas. ATF is grateful to the United States Attorney’s Office and our law enforcement partners who work tirelessly to pursue the worst of the worst lawbreakers who commit these heinous crimes. Mr. Hordge now has 15 years to think about and regret his actions,” said ATF Special Agent in Charge Jeffrey C. Boshek II.
According to plea papers, on October 7, 2020 Mr. Hordge – two hours after committing another armed carjacking where he pulled a victim out of her vehicle by her hair – pointed a firearm at a female in a residential driveway and forced her into her car. Mr. Hordge drove off with the individual in the car begging for her life. Mr. Hordge eventually pulled the car over and told the individual that she had five seconds to run or that she would be shot.
The carjacking was reported to police and Mr. Hordge was later arrested and identified.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Gary Tromblay prosecuted the case.
Admitted Member of Peckerwoods White Supremacist Gang Sentenced to 200 Months in Federal Prison for Drug CrimeRead the Press Release
A meth trafficker was sentenced Thursday to 200 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Levi Chamberlin Hardcastle, a 35-year-old Rockwall, Texas man, pleaded guilty in February to conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine. He was sentenced Thursday by U.S. District Judge Jane Boyle.
Mr. Hardcastle and eight other individuals, all tied to methamphetamine trafficking, were charged in an indictment with an array of federal crimes, primarily distribution of methamphetamine, unlawful possession of firearms, and conspiracy, in April 2022.
In plea papers, Mr. Hardcastle admitted that he delivered a total of 1,494.6 grams methamphetamine to an undercover officer on three separate occasions, the methamphetamine had a wholesale value of $10,500.00.
In a court hearing, Mr. Hardcastle admitted to being a member of the Peckerwoods, a white supremacist gang.
Additional defendants include:
• Stephen Scribner plead guilty to conspiracy to possess with intent to distribute a schedule II controlled substance and was sentenced to 180 months
• Alexis Nicole Pacheco plead guilty to conspiracy to possess with intent to distribute a schedule II controlled substance and was sentenced to 200 months
• Ruby Pauline Anderton plead guilty to illegal receipt of a firearm and was sentenced to 48 months
• Sandra Marie Hernandez-Pacheco plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 168 months
• Robert James McKnight plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 14 months
• David Michael Ford plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 57 months
• Mayo Mena plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 7 months
One defendant, Martin Talaver-Sanchez is pending sentencing.
The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the Northern District of Texas case.
Women Who Bought Firearm for Mexican Cartel Member SentencedRead the Press Release
Two women who purchased firearms for a member of a Mexican drug cartel have been sentenced to a combined 18 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Cassandra Gonzalez, 51, and Imajah Tierra Cervantes, her 29-year-old daughter, were indicted in March. Ms. Gonzales pleaded guilty in June to false statements during the purchase of a firearm and was sentenced in October to 6 months in federal prison. Ms. Cervantes pleaded guilty in July to straw purchasing of a firearm and was sentenced today to 12 months and one day in prison.
Ms. Cervantes is among the first defendants in the Northern District of Texas to plead guilty to an offense outlined in the Bipartisan Safer Communities Act, signed into law by President Biden in June 2022.
According to plea papers, Ms. Gonzalez attempted to purchase a rifle from a federally firearm license (FFL) dealer in Lubbock, Texas on Dec. 30, 2022. On ATF Form 4473, Ms. Gonzalez certified that she was purchasing the firearm for herself and stated that she resided in Garland, Texas – an address that did not match her actual current address in Lubbock.
ATF agents contacted the FFL and notified them of the address issue. They learned that Ms. Gonzalez planned to return to the store on Jan. 4, 2023, to complete the transaction.
On that date, agents observed Ms. Gonzalez and Ms. Cervantes enter the FFL. Ms. Gonzalez paid for the firearm and Ms. Cervantes carried it out of the store. Agents intercepted the women, took custody of the rifle, and separated them for questioning.
Ms. Gonzalez admitted that the address she used on Form 4473 was not correct, but initially maintained that she purchased the rifle for herself.
Ms. Cervantes, however, told agents that a Mexican man living in Dallas provided her with the money to purchase the rifle, and said that she and her mother were going to receive $2,000 for purchasing the firearm and delivering it to the man, who she knew was affiliated with a Mexican drug cartel. She admitted that she’d delivered a gun to him before and that she knew the man intended to use the firearm in furtherance of a drug trafficking crime.
Confronted with Ms. Cervantes’ statements, Ms. Gonzalez admitted that she lied on the form, knowing full well that she intended to purchase the firearm not for herself, but on behalf of another person.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division – Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Matthew McLeod prosecuted the case.
Fabens Woman Sentenced to 16 years for Transporting an Illegal Alien Who Died in Vehicle CrashRead the Press Release
A Fabens, Texas woman who was responsible for a car crash that killed a Mexican citizen she was transporting within the U.S. illegally was sentenced today to 16 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In July, Raquel Delgado Chavez, 39, pleaded guilty to transportation of an illegal alien resulting in death. She was sentenced today before U.S. District Judge James Wesley Hendrix.
According to court documents, on November 25, 2022 a Texas Department of Public Safety trooper responded to a single-vehicle rollover crash in Lynn County. A Mexican citizen was found deceased at the scene. A medical examiner determined the individual died after being ejected from the vehicle during the rollover accident. He had blunt force injuries of the head, neck, torso, and extremities, as well as multiple rib fractures.
On November 26, 2022, the Lynn County Sheriff's Office received a 911 call regarding two individuals walking on US 380. A deputy responded and found a Hispanic male and Ms. Chavez with injuries, they were suspected of being involved in the rollover crash and were transported to the Lynn County Hospital.
Ms. Chavez was interviewed and admitted that she called a Mexican phone number and was given directions to the location of a truck in El Paso. Ms. Chavez said when she arrived at the location of the truck, the passengers were already inside. She did not know the passengers, but knew she was supposed to drive them to Dallas. She also admitted she knew the passengers were illegal aliens.
Ms. Chavez was driving the truck and moved over on the highway to let a vehicle pass her, then the vehicle flipped. She said she and the other passengers fled the vehicle. Ms. Chavez said she ran because she was scared and that she saw a man pinned under the vehicle.
This investigation was conducted by Homeland Security Investigations, Texas Department of Public Safety (Highway Patrol and Texas Rangers), and Lynn County Sheriff’s Office. Assistant U.S. Attorney Ryan Redd prosecuted this case.
Two Indicted for Separate Threats Against JudgesRead the Press Release
Two individuals have been charged with making threats against federal judges in the Northern District of Texas, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
First, Alice Marie Pence, 67, of Port Charlotte, Florida, was charged with transmitting a threatening communication in interstate commerce and with intending to influence a federal official by threat. According to her indictment, Ms. Pence made a phone call in which she threatened to kill a U.S. District Judge with intent to impede, intimidate, and interfere with the performance of his official duties.
Second, Daniel Ray Garcia, 44, currently in Texas state prison in Midway, Texas, was charged with two counts of mailing a threatening communication. According to his indictment, Mr. Garcia mailed a letter threatening to kill or injure a different U.S. District Judge.
Ms. Pence is scheduled to make her initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Wednesday, November 22, 2023, and Mr. Garcia made his initial appearance before U.S. Magistrate Judge Lee Ann Reno on Thursday, November 9, 2023.
An indictment is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Ms. Pence faces up to 15 years in federal prison, and Mr. Garcia faces up to 20 years in federal prison.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting both cases.
Thirteen-time ‘Career Criminal’ Sentenced to 17 Years for Gun CrimeRead the Press Release
A thirteen-time felon found guilty of a gun crime was sentenced Wednesday, November 8th to 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Curtis Wayne Rodgers, 41, was indicted in August 2022 and pleaded guilty in June 2023 to possession of a firearm by a convicted felon. He was sentenced last Wednesday by U.S. District Judge Ada Brown.
Due to his multiple prior felony convictions, Mr. Rodgers was sentenced under the Armed Career Criminal Act, which raises the maximum penalty for offenders with three previous convictions for a violent felony or serious drug offense.
According to plea documents, Mr. Rodgers was arrested in June 2022, after officers with the Irving Police Department identified him as a suspect in a possible burglary and aggravated assault in a neighborhood in Irving, Texas.
Witnesses told law enforcement that the suspect kicked in the door to a home and asked neighbors where the homeowner was. Mr. Rodgers then pointed a firearm at the neighbor and instructed him to go inside his home and not to call anyone.
Footage from the neighbor’s surveillance system showed Mr. Rodgers driving a black Ford F-150 away from the incident. Officers obtained a search warrant for Mr. Rodgers residence and vehicles and located the firearm used in the incident.
A query of Mr. Rodger’s criminal history revealed thirteen prior felony convictions, including over three violent crimes and/or serious drug offenses – all offenses that made it a federal crime for him to possess a firearm or ammunition.
The Irving Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant U.S. Attorney Ryan Niedermair prosecuted the case
Burleson Would-Be Bomber Sentenced to 14 Years for Firearms, Child Porn ChargesRead the Press Release
A Burleson man who apparently idolized the Columbine High School shooters and possessed a homemade bomb was sentenced today to 168 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Noah Robert Calderon, 22, was charged via criminal complaint in April and indicted in May. He pleaded guilty in July to one count of possession of an unregistered firearm and one count of receipt of child pornography and was sentenced today by U.S. District Judge Reed C. O’Connor, who also ordered him to 30 years of supervised release.
“There is no greater example of the Justice Department’s, and our U.S. Attorney’s Office’s, commitment to protecting the public—including protecting the children in our community—than our efforts in this case,” said U.S. Attorney Leigha Simonton. “We thank our law enforcement partners for working incredibly hard to take this potential bomber and child predator off the streets. We stand committed to continuing to root out and prosecute such dangerous individuals in north Texas.”
“Today’s sentence is a shared success with the community who heeded the call to action to report suspicious activity when they saw suspicious activity. The information shared with law enforcement exhibited a distinctive pathway to further violence, that was ultimately thwarted by law enforcement and led to multiple federal charges,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “The FBI will continue to aggressively pursue individuals that move beyond rhetoric into action as they threaten the safety of our communities. We continue to ask for the public’s assistance in reporting threatening behaviors, and will work closely with our partners for swift adjudication.”
The investigation began in October 2022, when the FBI received a tip about Mr. Calderon’s social media activity.
Court documents indicate that online, Mr. Calderon professed a fascination with high-profile mass shootings, particularly the 1999 massacre at Columbine High School. He posted numerous images of himself in tactical-style vests posing with AR-15-style rifles and shared Columbine-themed memes along with images of homemade explosives.
In March 2023, the FBI received another tip that Mr. Calderon had detonated a homemade bomb in his residential neighborhood.
In plea papers, he admitted that he had purchased explosive precursors online. He also admitted that he stored 659.2 grams of explosive powder, along with a lighter, cannon fuse, cardboard tubing, a glass jar marked “frag” that contained metal ball bearings, lead, a funnel, and measuring spoons, in his garage.
A subsequent search of his Google account revealed queries related to the Columbine killers, the Charleston church shooter, “pipe bomb how to make,” “how to make propane bombs,” and “wear [sic] were the propane bombs in Columbine,” as well as searches of the names of several local public schools.
In plea papers, Mr. Caldron specifically admitted to searching for bomb-making information.
A search of his phone revealed sexually explicit videos taken from a video chat between Mr. Calderon and a 13-year-old girl.
Also in plea papers, he admitted he was aware of the child’s age when he saved the videos.
The Federal Bureau of Investigation’s Dallas Field Office, the Burleson Police Department, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case with National Security Division Trial Attorneys Justin Sher and Jacob Warren.
Federal Contractor Sentenced for False ReportingRead the Press Release
An Abilene man and federal contractor with United States Probation and Pretrial Services Office (USPO) was sentenced today to 24 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jacob William Kinkade, 44, was charged via criminal information on June 20. He pleaded guilty to one count of false and fraudulent claims against the United States and was sentenced today to 24 months in prison by U.S. District Judge James Wesley Hendrix, who also ordered him to pay $5,392 in restitution and a $6,000 fine.
According to plea documents, the investigation began in March 2023 when the Federal Bureau of Investigation received information that Mr. Kinkade was billing for individual therapy sessions, group therapy sessions, telephonic therapy sessions, and urinalysis collections that didn’t take place.
The investigation revealed several text messages between Kinkade and an individual, Witness 1, who was on supervised release with USPO. Witness 1 was provided counseling services by Kinkade Family Services (KFS), which is owned and operated by Mr. Kinkade. When text messages were compared to supervision records, multiple anomalies were discovered for services rendered that Mr. Kinkade billed to USPO.
When interviewed, Mr. Kinkade admitted that for the last three years, starting in 2020, he did not follow USPO’s reporting requirements and billed USPO for services not provided. KFS contract with USPO accounted for 80% of all KFS revenue.
The Federal Bureau of Investigation, with assistance from the Taylor County Sheriff’s Office, conducted the investigation. Assistant U.S. Attorneys Matthew Tusing prosecuted the case.
Carrollton Fentanyl Trafficker Pleads GuiltyRead the Press Release
A fentanyl trafficker tied to the Carrollton and Flower Mound juvenile fentanyl overdose case pleaded guilty today to drug crimes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Luis Eduardo Navarrete, 21, was charged via criminal complaint in February and subsequently indicted by a federal grand jury on March 29, 2023. Navarrete and ten other defendants were charged after multiple students attending schools in the Carrollton-Farmers Branch Independent School District overdosed after ingesting counterfeit M30 pills containing fentanyl. On Wednesday, Navarrete pleaded guilty to one count of conspiracy to distribute a Schedule II controlled substance (fentanyl) and one count of distribution of a Schedule II controlled substance (fentanyl) to a person under 21 years of age before U.S. Magistrate Judge Irma Carrillo Ramirez.
In related plea documents, codefendants admitted that Mr. Navarrete routinely dealt fentanyl-laced pills to juveniles from his Highland Drive residence in Carrollton, Texas. In December 2022, Navarrete was on bond in a criminal case out of Dallas County, was ordered to home confinement and was fitted with an ankle monitor that tracked his location and movements. Navarrete relied upon his coconspirators to pick up quantities of the counterfeit round blue pills from a Dallas-based source of supply and deliver them to Navarrete’s residence in Carrollton. Mr. Navarrete stored the counterfeit pills near the front door of his residence and distributed the pills to customers who came by the house – including a network of juvenile dealers who dealt the pills to other minor students that attended R.L. Turner High School, Dewitt Perry Middle School, and Dan F. Long Middle School in Carrollton. In December 2022, a thirteen year old Dewitt Perry Middle School student overdosed and died after ingesting a counterfeit M30 pill that contained fentanyl. In January 2023, a fourteen year old student at Dan F. Long Middle School overdosed and died after ingesting a counterfeit M30 pill. On February 1, 2023, a seventeen year old R.L. Turner High School student also overdosed and died after ingesting a counterfeit M30 pill.
Mr. Navarrete now faces up to 40 years in federal prison for each count and $7 million in fines. He will be sentenced on February 21, 2024.
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. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Former FBI Agent Pleads Guilty to Structuring ChargesRead the Press Release
An Estes Park, Colorado, man and former FBI Agent pleaded guilty today to structuring charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Gregory Paul Trahan, 60, was charged via criminal information in October. He pleaded guilty today to one count of structuring transactions to evade reporting requirements before U.S. District Judge Andrew S. Hanen.
Because Trahan worked as a Special Agent in the Houston FBI office, and presented cases to the Southern District of Texas U.S. Attorney’s office, the Southern District of Texas Assistant U.S. Attorneys were recused, and Northern District of Texas Assistant U.S. Attorney Marcus Busch was appointed as a Special Attorney to the Attorney General.
In plea papers, Trahan admits to structuring transactions to prevent his spouse at the time from knowing that he had money in undisclosed bank accounts and hiding cash to prevent those funds from becoming part of the resolution of the community estate during their divorce proceedings. Trahan withdrew several hundred thousand dollars from various bank accounts in amounts under the reporting requirements and made deposits, also under the reporting requirements, in other bank accounts. He also stashed money at family residences.
Mr. Trahan now faces up to 5 years in federal prison. His sentencing will be set at a later date.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Marcus Busch is prosecuting the case.
Dallas Man Pleads Guilty to Firing at ATF AgentRead the Press Release
A Dallas man who shot at an ATF agent in an apparent fit of road rage pleaded guilty Tuesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Fagan, 30, was charged via criminal complaint in April 2023 and was indicted in May 2023. He pleaded guilty to one count of assaulting a federal officer using a deadly or dangerous weapon before U.S. Magistrate Judge Irma Carrillo Ramirez on Tuesday.
According to plea documents, on April 6, an ATF agent stopped at a red light at the intersection of Garland Road and Gaston Avenue in East Dallas observed the SUV’s driver, later identified as Mr. Fagan, inside the vehicle yelling and flailing his arms. Thinking the driver might be experiencing an emergency, the agent rolled down his front passenger window and asked if the driver was okay.
Mr. Fagan opened his driver-side door and began yelling incoherently at the agent, who instructed Mr. Fagan to get back in his vehicle. Mr. Fagan re-entered his vehicle, leaned over the passenger seat, and turned around to face the agent holding a black semiautomatic pistol in his hand.
The agent ducked down below the dashboard, and heard a gun discharge. The agent drew his weapon and fired three shots, hitting Mr. Fagan once.
Mr. Fagan fled the scene and was later arrested after he was admitted to Baylor hospital.
Mr. Fagan now faces up to 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case.
Woman Pleads Guilty for Paycheck Protection Program, Economic Injury Disaster Loan, Pandemic Unemployment Assistance FraudRead the Press Release
A Dallas area woman who allegedly purloined more than $40,000 from pandemic-era financial programs pleaded guilty today to theft of government property, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Monica Moreno, 40, was indicted in November 2022. She plead guilty today to one count of theft to government property before U.S. Magistrate District Judge Irma Carrillo Ramirez.
According to plea papers, Ms. Moreno applied for – and received – funds from three different pandemic relief programs, The Economic Injury Disaster Loan (EIDL) program, the Paycheck Protection Program, and the Pandemic Unemployment Assistance program, totaling approximately $44,757 in federal funds.
Ms. Moreno submitted an advance EIDL loan for her alleged business, JBP Financial. In application paperwork, she lied about her criminal history, indicating that she had never been convicted of a criminal offense despite her 2015 conviction for aggravated identity theft, aiding and abetting, and conspiracy to defraud the united states, crimes for which she was sentenced to 48 months in prison. Ms. Moreno received $2,000 and used some of the funds for her personal benefit.
In addition, Ms. Moreno submitted applications for over a year that contained false information to each of the three disaster relief programs and received approximately $44,757 in federal funds.
Ms. Moreno now faces up to 10 years in federal prison.
The Treasury Inspector General for Tax Administration’s Gulf States Field Division, led by Special Agent in Charge Gary Smith, and the Department of Homeland Security Office of the Inspector General’s Dallas Field Office, led by Special Agent in Charge Michael Martin, conducted the investigation with the assistance of the Federal Bureau of Prisons and the Dallas Police Department. Assistant U.S. Attorney Nashonme Johnson is prosecuting the case with the help of Financial Auditor Sheila Powell.
Both the Paycheck Protection Program (PPP) and the expanded Economic Injury Disaster Loan (EIDL) Program were authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and other certain expenses; EIDL provided quickly-issued, partially-forgivable loans to small business to cover operational expenses, including accounts payable, as well as payroll, mortgages, and other bills. The Pandemic Unemployment Assistance (PUA) program, also authorized under the CARES Act, provided up to 39 weeks of expanded unemployment benefits for individuals impacted by COVID-19.
Serial Armed Robber Pleads Guilty to Robbery and Firearm ChargesRead the Press Release
An Amarillo man who violently robbed a Family Dollar store pleaded guilty today to robbery and firearm charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Shane Ray Bursie, 36, was indicted in March 2023. He pleaded guilty today to one count of affecting commerce by robbery and one count of discharging a firearm in furtherance of a crime of violence.
The investigation began in August 2021 when the FBI and Amarillo Police Department investigated a string of armed robberies that occurred in the Amarillo area. During the investigation, Bursie was identified as a primary suspect, including of a violent robbery that occurred on October 23, 2022.
Court documents indicate that Bursie, armed with a revolver, robbed an Amarillo Family Dollar store on October 23, 2022. Burise approached the store clerk, grabbed her and forced her behind the counter with another employee. He pointed the revolver at the employees and demanded them to open the safe. While the cash register was being opened a customer ran out the front door, and Bursie shot at the customer, he missed and struck the glass door. Bursie grabbed approximately $1,349 in cash from the register, threw the register drawer off the counter and ran out the front door. Prior to running out the door, Bursie told one of the employees he would be back to shoot them.
Mr. Bursie now faces up to 20 years in federal prison on the robbery count and 10 years to life on the firearm count. His sentencing will be set at a later date.
The case was brought under the Project Safe Neighborhoods Initiative, a program that surges federal and local law enforcement resources to communities’ most violent neighborhoods in order to root out offenders and build positive relationships with victims and witnesses.
The Federal Bureau of Investigations and the Amarillo Police Department conducted the investigation. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Undocumented Man Who Shot Seminole Police Officer Sentenced to 180 Months for Firearm CrimeRead the Press Release
A Mexican man who shot a police officer in Seminole, Texas was sentenced to 180 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jose Ramon Castillo-Lopez, 28, was charged via criminal complaint in October 2022 and indicted later that same month. He pleaded guilty in May 2023 to illegal alien in possession of a firearm.
According to court documents, Mr. Castillo-Lopez, a Mexican national in the United States illegally, admitted he was pulled over by a Seminole Police Department officer for traffic violations on Oct. 1, 2022.
As the officer approached Mr. Castillo-Lopez’s vehicle, he began firing at the officer with a handgun. The officer was struck but moved to a defensive position and returned fire. Mr. Castillo-Lopez exited his vehicle and fled, dropping a 9 mm semi-automatic pistol as he did so.
The officer was able to radio in a description of the defendant, and he was apprehended a few blocks away shortly thereafter.
In an interview with law enforcement, Mr. Castillo-Lopez admitted he had been previously deported and was currently in the county illegally. He also admitted to firing the pistol, which he said he purchased from an unknown individual at a traffic light in Midland, Texas for $200.
The victim officer’s body armor prevented serious injury, and he returned to duty shortly thereafter.
Homeland Security Investigation’s Dallas Field Office and the Seminole Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division. Assistant U.S. Attorney Matthew McLeod prosecuted the case.
Top Source of Supply in Juvenile Fentanyl Case Pleads GuiltyRead the Press Release
A top source of supply in the Carrollton juvenile fentanyl case – which has resulted in at least 14 juvenile overdoses, four of them fatal – pleaded guilty today to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Julio Gonzales, Jr., 18, was charged via criminal complaint in July 2023 with conspiracy to distribute fentanyl and was indicted in August 2023. He pleaded guilty today to one count of conspiracy to possess with the intent to distribute fentanyl before U.S. Magistrate Judge Irma Carrillo Ramirez.
According to plea papers, Mr. Gonzales admitted to receiving and selling approximately 120,000 counterfeit M30 pills containing fentanyl to multiple customers including codefendants and at least one juvenile M30 dealer. Mr. Gonzales sold M30 pills individually and also sold customers “K Packs” which consisted of 1,000 pills at a time.
According to court documents, in February 2023, a 16-year-old dealer who delivered the fentanyl pills that killed a 14-year-old girl in December 2022 allegedly identified Mr. Gonzales, whom he called “J-Money,” as his supplier. In text messages, the child discussed “J-Money” with codefendant Luis Eduardo Navarrete, one of the first dealers charged in the scheme. They identified “J-Money” as their “plug,” street parlance for a source of supply.
During a search of the residence used to store and sometimes distribute illegal drugs including counterfeit M30 pills, DEA agents found thousands of fentanyl-laced M-30 pills stuffed in the microwave, a partial kilogram of cocaine tucked in a plastic food storage container, bulk U.S. currency hidden in the closet, and numerous firearms, including a pistol equipped with an illegal Glock switch, littered throughout the home.
Mr. Gonzales is the eighth defendant charged in the wake of the Carrollton / Flower Mound juvenile overdose investigation to enter a guilty plea. Jason Xavier Villanueva, Magaly Cano, Robert Alexander Gaitan, Rafael Soliz, Jr., Adrian Martinez-Leon, Donovan Jude Andrews and Stephen Paul Brinson pleaded guilty earlier this year; Luis Eduardo Navarrete has been charged but not yet convicted. (All are presumed innocent until proven guilty in a court of law.)
Mr. Gonzales now faces up to 40 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department’s SWAT team, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Child Sex Trafficker Sentenced to Life in PrisonRead the Press Release
A DeSoto man who drugged young girls and then forced them into commercial sex was sentenced today to Life in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anjum Zafar Mian, 42, was convicted in July 2023 following a two day trial of fifteen counts involving sex trafficking of adults and minors, as well as, sexual exploitation of children. He was sentenced by U.S. District Judge Reed C. O’Connor.
“With the declaration of a life sentence, HSI is yet again successful in removing a dangerous predator from the community,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “Investigating those who exploit children is one of our highest priorities. We will use every resource available in seeking prosecution of those who traumatize and victimize our most vulnerable."
“I am extremely proud of the men and women who worked diligently together in order to bring justice to each of the survivors,” said Arlington Police Chief Al Jones.
According to evidence presented at trial, Mr. Mian forced at least two young girls – ages 16 and 17 – to engage in commercial sex by intimating that he would harm their family if they did not comply.
He brought another 17 year old down from Oklahoma, would not allow her to go back home when she asked, and made her engage in commercial sex.
He also attempted to traffick an adult woman from Oklahoma, who called the police after he assaulted her.
The victims testified that Mr. Mian, who also went by the “AJ” and “Dre,” used explicit photos of them to advertise sexual services online. He communicated with customers via messaging apps, then plied the girls with drugs and alcohol, delivered them to customers, and demanded they turn all proceeds over to him.
Two of the victims testified that Mr. Mian raped them while they were unconscious.
The Arlington Police Department conducted the investigation in conjunction with Homeland Security Investigations’ Dallas Field Office and with the assistance of the Dallas Police Department, DeSoto Police Department, Fort Worth Police Department, and Texas Department of Public Safety. This was a North Texas Trafficking Task Force case. Assistant U.S. Attorneys Brandie Wade and Matthew Weybrecht prosecuted the case.
If you believe you or someone you know may be a victim of human trafficking, call local law enforcement or the 24/7 confidential National Human Trafficking Hotline at 1-888-373-7888.
O’Donnell ISD Teacher Convicted at Trial for Enticement of Minor Student Sentenced to 240 MonthsRead the Press Release
A Lubbock man who was convicted at trial for enticement and attempted enticement of a minor was sentenced today to 240 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Nicholas Dominique Bueno, 28, was convicted, following a bench trial in June 2023, of one count of enticement and attempted enticement of a minor. In May 2023, Mr. Bueno pleaded guilty to three counts of transfer of obscene material to a minor. He was sentenced by U.S. District Judge James Wesley Hendrix, who also order Mr. Bueno to 25 years of supervised release following imprisonment and ordered him to pay a $5,000 assessment to the Justice for Victims of Trafficking Act.
According to court documents, Mr. Bueno was a teacher and coach at O’Donnell High School and “Jane Doe” was a 14 year-old student. In October 2022, a school administrator for O’Donnell High School notified the Lynn County Sheriff’s Office of allegations of an inappropriate relationship between a teacher and a student. An investigation revealed, between September 23, 2022 through October 18, 2022, Mr. Bueno and Jane Doe exchanged thousands of messages. On numerous occasions the messages were controlling, grooming, sexual and enticing in nature.
When interviewed, Mr. Bueno initially denied any communication with Jane Doe outside of school, however, as the interview progressed he admitted to using a second phone to communicate with Jane Doe and admitted he destroyed the phone after the relationship was discovered.
The Lynn County Sheriff’s Office, Federal Bureau of Investigation, Department of Public Safety, and the Lubbock Police Department investigated the case with the full support and assistance of the O’Donnell Independent School District. Assistant U.S. Attorney Callie Woolam and Matt McLeod prosecuted the case.
Local Man Sentenced to 120 Months in Federal Prison for Bank RobberyRead the Press Release
Ronald Jones, 54, was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 120 months in federal prison, an upward variance, for the robbery of Chase Bank located in Corsicana, announced U.S. Attorney Leigha Simonton of the Northern District of Texas.
Jones pleaded guilty in June 2023 to one count of Bank Robbery.
According to evidence presented at sentencing, Jones, who was on state parole for a 2015 bank robbery conviction, entered Chase Bank located at 101 N. Beaton Street, Corsicana, Texas wearing a mask, presented a demand note which threatened that he had a gun, lifted his shirt as if he had a gun, and received $585 from the teller.
The Corsicana Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
Fentanyl Trafficker Linked to Fatal Overdose SentencedRead the Press Release
The drug dealer who sold the fentanyl that killed an Abilene man was sentenced today to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Elijah James Perez, 21, pleaded guilty in September 2023 to distribution and possession with intent to distribute fentanyl resulting in death or serious bodily injury. He was sentenced today by U.S. District Judge James Wesley Hendrix.
According to plea papers, Mr. Perez admitted that he sold fentanyl to a victim, identified in court documents as J.W., on Feb. 11, 2022.
The following day, J.W. was found nonresponsive in his bed. After 40 minutes of attempted resuscitation, he was pronounced dead at the scene.
Witnesses told law enforcement they believed J.W. had ingested Percocet, but an autopsy found that J.W. died from the toxic effects of fentanyl.
According to plea papers, Mr. Perez admitted that approximately three days before J.W.’s death, Mr. Perez offered to sell him “5 percs.” Three days later, Mr. Perez met with J.W. outside his home around 10 p.m. to make the sale. The pills contained fentanyl.
Six minutes later, J.W. texted his girlfriend that he’d received some “percs” that were “hella strong.” Hours later, he was dead of an overdose.
The Drug Enforcement Administration’s Dallas Field Office and the Abilene Police Department conducted the investigation. Assistant U.S. Attorney Matt Tusing prosecuted the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
11 Alleged Fentanyl Traffickers Charged in Amarillo TakedownRead the Press Release
Ten alleged fentanyl traffickers were arrested in Amarillo, Texas on federal drug charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. One additional defendant who was already in state custody has also been charged federally.
During the bust, agents and officers also seized six firearms, hundreds of fake M-30 fentanyl pills and bulk US currency.
The defendants were charged in a seven-count indictment unsealed today. Those charged include:
- Gary Eugene Carlisle, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Robert Tucker Witt, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Rebecca Ann Schmitkons, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Julian Gabriel Apodaca, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Rachel Lynn Waddell, charged with conspiracy to distribute and possess with intent to distribute fentanyl
- T Blue Bloomer, charged with conspiracy to distribute and possess with intent to distribute fentanyl
- Michael David Winbigler, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Lucas Paul Blanke, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Elesaio Ben Guzman Maestas, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Katherine Valencia-Morales, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Kylie Nicole James, charged with conspiracy to distribute and possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
“We are tireless in our fight against fentanyl traffickers in the Northern District of Texas and are doing whatever we can to stem the flow of fentanyl into the Amarillo area,” said U.S. Attorney Leigha Simonton. “Each person lost to fentanyl is one person too many. I encourage all parents and guardians to talk with young people about the dangers of taking any pill they get off the street, as it very possibly contains a deadly amount of fentanyl. We are all in this fight together to stop the selling and buying of this deadly drug.”
“Criminal organizations are continuing to flood communities with fentanyl at an alarming rate,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas, which covers all operations in Amarillo. “This week, DEA Amarillo worked with our area law enforcement partners to investigate those responsible for selling this poison throughout the region. We will keep going. We will not stop until all members of this criminal organization are held accountable for their actions and to make our neighborhoods safer. The potential for an individual to be harmed by illicit fentanyl is greater today than at any other time in our history, as seven out of ten fake pills contain a potential lethal amount of illicit fentanyl.”
Amarillo Police Chief Martin Birkenfeld states, “We are very thankful for our federal law enforcement partners that work with us on a daily basis to make our city safer. Fentanyl is sickening and killing people in Amarillo and this is unacceptable. We will continue to hold drug dealers accountable and do everything in our power to bring justice to families who are victimized by these potential murderers.”
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, the defendants face up to 20 years on each count.
The Drug Enforcement Administration conducted the investigation with the assistance of the Amarillo Police Department’s Proactive Criminal Enforcement (PACE) Unit. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.
Violent Street Gang Member Sentenced to 15 Years in Prison for Gun CrimesRead the Press Release
A Dallas man who committed an April 2022 drive-by-shooting was sentenced Monday, September 25, 2023 to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alexandro Mauricio Campos, 27, pleaded guilty in March 2023 to two counts of possession of a firearm by a convicted felon. He was sentenced September 25, 2023 by U.S. District Judge David C. Godbey. Campos is a violent felon, and a member of a violent street gang.
According to court documents, on April 24, 2022 Mansfield Police Officers were dispatched to investigate reports of a drive-by shooting. Once on the scene, officers observed two vehicles riddled with bullets that was parked at the residence. The residence was also shot, and bullets penetrated a child’s bedroom, the laundry room, and the garage. Officers recovered numerous shell casings from the street. An AK-47 firearm was used to shoot the vehicles and the house. Campos’s ex-girlfriend and young child were in the house when it was shot, and Campos had sent his ex-girlfriend threatening text messages before the shooting. A neighbor’s home security camera captured the shooting.
During the investigation, officers learned one of the vehicles hit in the April 24th shooting (which belonged to Campos’s ex-girlfriend) had previously been shot by Mr. Campos. Officers observed bullet holes covered with black electrical tape and learned Mr. Campos was being investigated for the violent attack.
On April 27, 2022, the U.S. Marshal’s North Texas Fugitive Task Force arrested Campos. During the arrest, officers located a large black AK-47 style pistol on the driver’s floorboard where Mr. Campos was seated and a large box of ammunition for the weapon. Ballistic testing confirmed that this firearm was used in the April 24th drive-by shooting.
According to the criminal complaint, Mr. Campos has a 2018 felony conviction for Aggravated Assault with a Deadly Weapon and received a 2-year prison sentence for the offense. Campos, in fact, has a long history of violent behavior directed at women.
Campos was also sentenced for possessing another AK-47 style pistol in Mesquite, Texas, in June 2021.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the U.S. Marshal’s North Texas Fugitive Task Force, the Mansfield Police Department, and the Mesquite Police Department. Assistant U.S. Attorney Gary Tromblay prosecuted the case.
Nine Alleged Gun, Drug Traffickers Charged in Fort WorthRead the Press Release
Nine men accused of selling drugs and guns in Fort Worth have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The defendants were charged in three separate criminal complaints with a variety of offenses, including conspiracy to distribute fentanyl and felon in possession of a firearm. During September, search warrants were executed and eight of the nine defendants were arrested in Fort Worth by ATF Agents and Fort Worth Police Department Officers.
Those charged include:
- Dewayne Thomas, aka “DJ”, charged with felon in possession of a firearm (Glock 10mm pistol)
- Anthony Williams, aka “Fresh,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Marvis Jones, aka “Twin,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Marquon McClain, aka “Flame,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Antwon Crosby, aka “Twon,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- AJ Anderson Williams, Jr., charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Regina McDowell, aka “Lil Reg,” charged with felon in possession of a firearm (Canik 9mm pistol)
According to the complaints, a series of ATF confidential informants, often accompanied by undercover agents, made undercover gun and drug purchases from the defendants.
Across more than a dozen transactions in June and July, confidential informants allegedly purchased more than 94 grams of fentanyl pills, more than 57 grams of methamphetamine, and nine firearms, including one privately made firearm, or “ghost gun.”
Most of the transactions were completed in convenience store and fast food parking lots, motels, or smoke shops. On at least two occasions, defendants, who said they were suspicious of police vehicles in the area, met an informant in one location and then allegedly led him to another location to complete the purchase.
Criminal complaints are merely allegations of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to twenty years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting all three cases.
Retired San Angelo Police Officer Sentenced to 35 years for Possession of Child Sexual Abuse MaterialRead the Press Release
A retired San Angelo Police Officer was sentenced to a term of 420 months imprisonment and a lifetime of supervised release for possession of child pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ricky Lynn Keeling, 62, was indicted in March 2023 and pleaded guilty in May 2023 to three counts of possession of child pornography involving a prepubescent minor. Mr. Keeling was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who also ordered him to pay a $15,000 assessment for the Justice for Victim’s of Trafficking Act, and a $51,000 assessment for the Amy, Vicky, and Andy Child Pornography Victim Assistance Act.
“Crimes involving child pornography are some of the most serious that the Department of Justice prosecutes,” said U.S. Attorney Leigha Simonton. “For a former law enforcement officer to possess child pornography is more than shocking—it is despicable. Our office will not let such crimes against children happen without repercussion.”
“We swear an oath to protect and serve and the sentence imposed today will ensure the community that no matter who you are, you will be held accountable for your actions,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI Dallas will never relent in our pursuit to protect children from predators.”
"The gravity of this situation cannot be overstated and our agency's commitment to the safety of our community remains unwavering. Crimes perpetrated against children are of the most serious in nature and cannot be tolerated. As soon as we became aware of these disturbing allegations against retired San Angelo Police Officer Rick Keeling, we immediately referred the matter to the Tom Green County Sherriff's Office and the Department of Homeland Security for investigation,” said San Angelo Police Chief Frank Carter
According to plea documents, Mr. Keeling’s roommate inadvertently discovered child pornography on Mr. Keeling’s computer. The roommate reported the discovery to law enforcement and an investigation began. Mr. Keeling admitted to officers that he searched for prepubescent material up to three times a week and had been looking at child pornography since 2005.
Homeland Security Investigations’ San Angelo Field Office and the Tom Green County Sheriff’s Office, conducted the investigation, with support from the San Angelo Police Department. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Dumas Man Sentenced to 20 Years for Transportation of Child PornographyRead the Press Release
A Dumas, Texas man was sentenced Tuesday to 20 years in prison for Transportation of Child Pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Landon Joseph Garcia, 39, pleaded guilty in April 2023 to one count of transportation of child pornography. He was sentenced Tuesday by U.S. District Judge Matthew J. Kacsmaryk, who also ordered him to pay $46,500 in restitution.
“Those who create, view and distribute child sexual abuse materials reinforce a cycle of victimization and trauma each time the content is shared,” said Lester R. Hayes, Jr., Special Agent in Charge HSI Dallas. “Prosecuting the predators that traffic these images is truly a collaborative effort and we are grateful for the support we share with our law enforcement partners.”
According to court documents, in June 2022, Texas Department of Public Safety received information from the National Center for Missing and Exploited Children that an online Kik user was transporting child pornography. Law enforcement later determined that Mr. Garcia was associated with the Kik account.
In July 2022, law enforcement officers executed a search warrant at Mr. Garcia’s residence and located Mr. Garcia in a restroom deleting child pornography images from his cell phone. Mr. Garcia later admitted to using his cell phone to view, download and transport child pornography for over ten years. The cell phone contained 1,620 video files containing child pornography.
The Texas Department of Public Safety and Homeland Security Investigations’ Amarillo Field Office investigated the case. Assistant U.S. Attorney Joshua Frausto of the Northern District of Texas prosecuted the case.
Fourth Defendant Pleads Guilty in $7 Million COVID-19 Testing FraudRead the Press Release
An Irving man pleaded guilty today to submitting fraudulent insurance claims for COVID-19 testing, resulting in a more than $7 million loss to insurers, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrance Barnard, 40, was indicted in December. He pleaded guilty today to Conspiracy to Commit Health Care Fraud and Aggravated Identity Theft and Aiding and Abetting Aggravated Identity Theft before U.S. Magistrate Judge Irma Carrillo Ramirez.
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.
Mr. Barnard now faces up to seven years in federal prison. According to the terms of his plea agreement, he has agreed to a $7.29 million forfeiture money judgment and will forfeit a number of items seized during the investigation, including $2.5 million in funds from numerous bank accounts, two residences, six vehicles, and six luxury watches.
Also charged in the scheme are Connie Jo Clampitt, 52, William Paul Gray, 50, and Don Hogg, 37. Clampitt, Hogg and Gray have each pled guilty and are scheduled to be sentenced in November 2023.
The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration, the Dallas Office 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; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
For more information about the Justice Department’s response to wrongdoing connected to the COVID-19 pandemic, visit https://www.justice.gov/coronavirus.
Dermatology Management Company to Pay $8.9 Million to Resolve Self-Reported False Claims Act LiabilityRead the Press Release
A Texas entity that manages and operates dermatology practices, surgical centers, and pathology laboratories across the United States has agreed to pay the United States $8.9 million to resolve allegations, which were self-reported, of potential violations of the Physician Self-Referral Law (the Stark Law) and the Anti-Kickback Statute (AKS), announced U.S. Attorney for the Northern District of Texas Leigha Simonton. The United States contends that these potential violations resulted in liability under the False Claims Act.
Per the terms of a civil settlement executed on September 12, 2023, Oliver Street Dermatology Management LLC will pay the government $8,892,079.72 – including $5,928,053.15 in restitution—within 10 days of the settlement. The settlement credits Oliver Street for its self-disclosure and collaboration with government investigators. The self-reported conduct was unknown to the United States at the time of the self-disclosure, and was specific as to the nature of the potentially problematic transactions, the personnel involved, and the potential financial impact on the Government.
According to the settlement agreement, from January 2013 to July 2018, Oliver Street – doing business as U.S. Dermatology Partners (USDP) -- acquired numerous dermatology practices across the United States.
In September 2021, the company voluntarily self-disclosed to the Department of Justice that it had discovered credible evidence suggesting that former senior managers had offered (or agreed) to increase the purchase price of 11 acquired dermatology practices in exchange for an agreement by the provider at the practice to refer services to USDP-affiliated entities following the acquisition. Claims for certain of those referred services were later submitted to Medicare for payment.
The United States contends that this conduct violated the AKS and the Stark Law, and resulted in the submission of false claims for payment to Medicare. The AKS prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare and other federally funded healthcare programs. The Stark Law prohibits healthcare entities from billing for certain services referred by physicians with whom the entity has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. Both the AKS and the Stark Law are intended to ensure that medical judgments are not compromised by improper financial inducements.
“Decisions about where medical specimens are analyzed should be made with the best interests of patients, not providers, in mind,” said U.S. Attorney Leigha Simonton. “We applaud this company for self-reporting its potential violations and cooperating with government investigators, allowing us to reach a swift settlement.”
This resolution is the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of Texas and the U.S. Department of Health & Human Services’ Office of Inspector General. This matter was handled by Civil Chief Kenneth Coffin.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
###
For more information, please contact NDTX Public Affairs Officer Erin Dooley at 214-659-8707 or [email protected].
Father of Alleged Lamar High School Shooter Sentenced to 6+ Years for Gun CrimeRead the Press Release
The father of a 15-year-old accused of fatally shooting a classmate at Lamar High School was sentenced Thursday to more than six years in federal prison for a gun crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
John Edward Porter, 50, was charged in March and pleaded guilty in May to being a felon in possession of a firearm. He was sentenced Thursday by U.S. District Judge Mark Pittman to 77 months in federal prison.
According to court documents, shortly after his son allegedly opened fire at Arlington’s Lamar High School on March 20, fatally shooting one student and injuring another, law enforcement executed a search warrant on Mr. Porter’s apartment.
Inside the home, agents found paperwork for a Mossberg, model 500, 12-gauge shotgun – the same gun recovered from the scene of the shooting. A trace revealed a relative of Mr. Porter had purchased the gun for him.
Inside Mr. Porter’s bedroom, agents also found a Smith & Wesson .357 gauge revolver, a Glock .40 caliber pistol, and a Smith & Wesson M&P .556 caliber rifle.
Mr. Porter, who had been convicted of first degree robbery and sexual battery in Louisiana in 1996 and was thus legally barred from possessing firearms, admitted to possessing all four guns, including the Mossberg.
Records indicated that Mr. Porter had attempted to purchase guns from licensed firearm dealers in 2014 and 2020, but was denied after the background check flagged his prior felony convictions.
The accused shooter has been charged by the state with murder and aggravated assault. He remains innocent until proven guilty in a court of law.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division and the Arlington Police Department conducted the investigation. Assistant U.S. Attorney Frank Gatto prosecuted the case.
Straw Purchasers Charged with Buying 100+ Guns Trafficked to MexicoRead the Press Release
A group of straw purchasers who allegedly bought more than 100 firearms later trafficked to Mexico has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Seven individuals were charged via criminal complaint with conspiracy to make false statements to licensed firearm dealers in connection with the acquisition of firearms. Defendants Mario Lara, 28, Oralia Carrizales, 41, Geovanny Garcia, 31, and Darryl Fox, 29, were arrested last week; defendants Gavino Trujillo, 28, and Guadalupe Corona, 29, were arrested Tuesday morning. One defendant remains at large.
“In June, I met with Deputy Attorney General Lisa Monaco and five border state U.S. Attorneys to discuss Operation Southbound, the Justice Department’s signature initiative to disrupt the flow of guns across the U.S. / Mexico border. This case represents our district’s commitment to hold accountable anyone involved in smuggling guns into Mexico,” said U.S. Attorney Leigha Simonton. “All too often, guns trafficked across our southern border fall into the hands of cartel bosses and other bad actors who threaten law enforcement and the people they serve. We will not rest until we dismantle those trafficking networks.”
“There is no doubt that the arrest of these seven individuals will lead to a safer Mexico. Their behavior was adding to the bloodshed and carnage that have plagued our neighbors for so long. We have all seen the movies and evening newscasts on the violence. This is how it starts.” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “The people involved in the trafficking of weapons live amongst you and me. If you suspect someone of illegally running guns, please contact ATF.”
According to court documents, the defendants allegedly purchased guns from federally licensed firearms dealers on behalf of Jose Carlos Rivas-Chiarez, 29, who disassembled the firearms, concealed them inside plastic and towels, and smuggled them to Mexico, either concealed inside tires or through the mail.
Mr. Rivas and his girlfriend, Ana Francisco-Sotelo, 28, were previously charged and pleaded guilty in October 2022 to making false statements during the purchase of a firearm. Mr. Rivas also pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. Mr. Rivas and Ms. Domingo were sentenced this spring to a combined 32 years in federal prison.
According to court documents, a search of Mr. Rivas’ residence turned up more than 150 empty firearm boxes. Records showed that many of the missing firearms – including FN SCAR rifles, AR-15 style rifles, Glock pistols, and a stolen silencer – had been purchased by the defendants.
In an interview following the search of his home, Mr. Rivas admitted to law enforcement that, as a Mexican citizen unlawfully present in the U.S., “I’m not legal, to be honest, to be buying a gun.” He further admitted that he directed multiple people to purchase firearms on his behalf.
Confronted with text messages between him and at least one of the defendants discussing the pricing and delivery of “toys,” Mr. Rivas admitted that “toys” was a code word for firearms.
Surveillance video recovered from one of the stores revealed that on at least one occasion, Mr. Rivas accompanied a straw purchaser to the gun store to inspect the firearm before the purchase.
A complaint is merely an allegation of criminal conduct, not evidence. Mario Lara, Gavino Trujillo, Oralia Carrizales, Geovanny Garcia, Darryl Fox, and Guadalupe Corona are presumed innocent until proven guilty in a court of law.
If convicted, they face up to 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation with the assistance of Homeland Security Investigation’s Dallas Field Office and the Arlington Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting the case.
Man Who Trafficked, Beat Multiple Women Sentenced to 20 Years in PrisonRead the Press Release
A Dallas man who sex trafficked multiple young women was sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Demetrius Lewaun Byrd, 39, who called himself “Staxx Diego,” pleaded guilty in March 2022 to sex trafficking through force, fraud, and coercion. He was sentenced last Thursday by U.S. District Judge Sam A. Lindsay.
“HSI will spare no resource in ensuring that those who exploit children face justice for their egregious crimes,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “We remain dedicated to protecting the children of our communities.”
According to plea papers, Mr. Byrd admitted that he trafficked one 17-year old girl and two 18-year old girls between 2016 and 2018.
Testimony at the hearing revealed that Mr. Byrd used social media platforms to recruit 17- and 18-year old girls to work with him in the commercial sex trade, often coercing them by pretending they would be his girlfriend. Mr. Byrd also used social media and text messages to shame and manipulate the women if they tried to leave him.
He told one victim that he wanted to date her, then drove up to Oklahoma and drove her back to Texas. During the trip, Mr. Byrd stopped the car at a hotel, handed her a room key, and told her to go into the room, take the money, and do whatever the man inside wanted. Shocked and terrified, the girl complied. Mr. Byrd kept the money.
For the next six months, Mr. Byrd posted commercial sex ads for the girl online, forced her into sex with customers, and pocketed the proceeds. When she told him she wanted to leave, he punched her in the face and pinned her against a fence. When she did manage to escape, he staged his own suicide to pressure her to return.
Homeland Security Investigations’ Dallas Field Office conducted the investigation. Assistant U.S. Attorney Myria Boehm prosecuted the case with the help of former Assistant U.S. Attorneys Rebekah Ricketts, Melanie Smith, and Cara Foos Pierce.
Amarillo Drug Dealer Charged with Possession of 76 Firearms, 54 Glock SwitchesRead the Press Release
An Amarillo drug dealer with an arsenal of 76 firearms and 54 Glock switches was indicted on federal drug and gun charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Gabriel Michael Rendon, 28, was charged with possession with intent to distribute cocaine, possession with intent to distribute marijuana, possession of machineguns, possession of firearms in furtherance of a drug trafficking crime, and felon in possession of a firearm. His wife, 26-year-old Jane Marie Burgess, was charged with false statement during the purchase of a firearm.
“Glock switches – inch-long devices that convert regular firearms into machineguns capable of a terrifyingly swift rate of fire – are proliferating rapidly in North Texas,” said U.S. Attorney Leigha Simonton. “An armed drug trafficker is always bad news; a drug trafficker armed with a switch is exponentially more dangerous. We cannot and will not allow these devices to take over our streets.”
“Citizens of Amarillo can breathe a sigh of relief knowing that Mr. Rendon no longer terrorizes the streets of their city. Illegal firearms and illicit drugs are never a good combination, especially when those guns are possessed by a prohibited person. Together with the United States Attorney’s Office and our law enforcement partners, we will continue to pursue the worst of the worst lawbreakers living amongst us in our communities,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to the indictment, Mr. Rendon allegedly possessed 76 firearms, including 43 pistols, 23 rifles, four shotguns, and four revolvers, in furtherance of his drug trafficking business. Due to an Arkansas state court conviction for possession of a controlled substance with purpose to deliver, he was legally barred from handling firearms.
Mr. Rendon also allegedly possessed at least 54 Glock switches, dangerous devices that convert regular semi-automatic pistols into machineguns capable of continuous fire with a single depression of the trigger. (Glock switches are classified as machineguns under federal law. Unlike semiautomatic firearms, machineguns – weapons that can fire more than one round, without manual reloading, by single function of the trigger – are generally unlawful for non-licensed civilians under the National Firearms Act.)
Ms. Burgess allegedly bought guns for her husband, lying on ATF Form 4473 by indicating that she was the actual buyer when she actually intended to hand them over to Mr. Rendon.
According to court documents, during a search of Mr. Rendon’s residence on July 26, 2023, Ms. Burgess allegedly told law enforcement that Mr. Rendon was armed at all times when at the home.
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 on all counts, Mr. Rendon faces up to life in federal prison; Ms. Burgess faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Amarillo Resident Agency, the Amarillo Police Department, and the Randall County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Meredith Pinkham is prosecuting the case.
Fort Worth Shooting Suspect Sentenced to 10 Years for Gun CrimeRead the Press Release
A Fort Worth man who allegedly shot through the door of a local home, hitting an 82-year-old woman in the chest, was sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jonathan R. Howard, 35, was charged in March and pleaded guilty in May to being a felon in possession of a firearm. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to court documents, law enforcement responded to a shooting at a home in Fort Worth at 9:40 p.m. on Feb. 23. The 82-year-old victim had already been transported to the hospital.
Officers discovered cartridge casings in the backyard of Mr. Howard’s residence, which was across the alley from the victim’s property.
The following day, officers searched Mr. Howard’s home and car and located three firearms: a Jimenez Arms 9mm pistol, a Glock 9mm pistol, and a Taurus 9mm pistol. Due to his multiple prior felony convictions, including forgery in 2011 and manufacture and delivery of a controlled substance in 2019, Mr. Howard was legally barred from possessing firearms.
Mr. Howard has also been charged by the state with aggravated assault in connection with the shooting. Those charges remain pending; he is considered innocent in that case until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Fort Worth Resident Agency and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Lubbock Man Sentenced to 15 Years in Prison for $4 Million PPP FraudRead the Press Release
A Lubbock man who defrauded pandemic-era financial programs out nearly $4 million was sentenced today to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Andrew Travis Johnson, 59, pleaded guilty in March to three counts of bank fraud, one count of aggravated identity theft, and one count of engaging in monetary transactions in property derived from unlawful activity. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered him to pay $4.15 million in restitution and to forfeit numerous assets, including multiple luxury cars.
According to plea papers, Mr. Johnson admitted that he fraudulently applied for and obtained 27 Paycheck Protection Program (PPP) loans totaling almost $4 million.
He admitted he applied for loans on behalf of three entities: an actual business that provided contract speech and occupational therapy services, an actual nonprofit that organized community fundraisers for individuals with intellectual limitations, and a fictitious entity that never provided goods or services of any kind and had no employees.
In the business’s application, Mr. Johnson falsely claimed the company paid 49 employees an average of $441,667 per month and provided a fabricated IRS Form 940 that indicated it paid its employees more than $5.1 million in calendar year 2019. In actuality, the company employed about 10 individuals on an ad hoc basis and paid less than $100,000 in wages in 2019. Nevertheless, based on his application, the business qualified for a $1.1 million PPP loan, which it re-drew the following year, for a total of $2.2 million.
In the nonprofit’s application, he falsely claimed the organization employed 33 individuals (in actuality, it employed fewer than five), and in the application submitted on behalf of the fictitious entity, he falsely claimed the company employed 24 individuals (in actuality, the company did not exist). For each entity, he provided fabricated lists of employees, some of which did not exist and others of which were clients of the rehabilitation company, along with fabricated IRS forms. Nevertheless, he qualified for a $326,770 loan for the entity and a $523,00 loan for the nonprofit. He redrew a loan for the non-existent entity the following year for a total of $653,540.
Each entity sought – and received – forgiveness on the principal and interest on each of the small business PPP loans. Yet very little, if any, of the money was used for payroll or business expenses. Instead, Mr. Johnson and a woman with whom he had a relationship, 50-year-old Hope Leticia Hastey, spent nearly $3.5 million on home renovations, vacations, clothing, cosmetic surgery, college tuition, cars, wedding expenses, and equipment for an unrelated business venture.
In addition to the small business loans, Mr. Johnson also fraudulently obtained $436,524.80 in first and second draw loans for 11 purported independent contractors, several of whom were related to him or Ms. Hastey.
At least four of the recipients were unaware that Mr. Johnson had used their identifying information to obtain the loans, nor did they ever receive any proceeds of the loans. Mr. Johnson opened bank accounts under the victim’s names, transferred to loan proceeds into the accounts, and obtained debit cards for each account; he and Ms. Hastey used the debit cards to spend the loan monies.
Mr. Johnsons and others sought – and received – forgiveness on the principal and interest on each of the independent contractor loans, which ranged from roughly $15,000 to nearly $24,000 each.
At Thursday’s sentencing hearing, prosecutors said that he used his elderly mother’s and elderly aunt’s identifying information and forged their signatures on loan documents. The women never received any of the money. Mr. Johnson also used the identifying information and forged the signature of L.G., a resident of Plainview, to obtain two loans.
Ms. Hastey has been charged with misprison (concealment) of Mr. Johnson’s felonies and is set to enter a plea on Aug. 30. She remains innocent until proven guilty in a court of law.
The Federal Bureau of Investigation’s Dallas Field Office and IRS – Criminal Investigations conducted the investigation with the assistance of the Internal Revenue Service and Homeland Security Investigations. Assistant U.S. Attorneys Ann Howey prosecuted the case with assistance from Assistant U.S. Attorneys Beverly Chapman, Saurabh Sharad, and John de la Garza.
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and other certain business expenses; the program ended in May 2021.
Concerned citizens who suspect waste, fraud, or abuse of financial-era pandemic programs, including the PPP, or who suspect violations of pandemic-related legislation can report it to the Pandemic Response Accountability Committee (PRAC) at https://www.pandemicoversight.gov/contact/about-hotline.
Flower Mound Fentanyl Trafficker Sentenced to 8+ Years in PrisonRead the Press Release
A fentanyl trafficker responsible for distributing thousands of pills across north Texas was sentenced today to more than eight years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Stephen Paul Brinson, aka “Steve-O,” 18, was charged in March and pleaded guilty in May to conspiracy to possess with intent to distribute a Schedule II controlled substance (fentanyl). He was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 100 months in prison.
In plea papers, Mr. Brinson admitted he dealt fentanyl-laced pills out of a home in Flower Mound.
He used an Instagram account to facilitate the sale of the round blue pills, which were imprinted “M/30” to resemble legitimate 30mg oxycodone pills.
According to court documents, Mr. Brinson acted as the source of supply for fentanyl to Donovan Jude Andrews, the Carrollton dealer who allegedly capitalized on the arrest of Luis Navarrete and Magaly Cano to advertise his pill business. (Mr. Andrews is allegedly tied to at least one juvenile fentanyl overdose – that of a 14-year-old girl who paid her dealer through CashApp; Mr. Navarrete and Ms. Cano, along with their supplier, Jason Villanueva, are allegedly tied to more than ten others.)
During a search of Mr. Brinson’s residence, law enforcement recovered approximately 1,800 fentanyl pills along with cocaine, marijuana, and two firearms.
In plea papers, he admitted that at the time of the search, he was armed and en route to deliver an M/30 pill to a customer in Flower Mound.
Mr. Brinson was the second defendant charged in the wake of the Carrollton / Flower Mound juvenile overdoses to enter a guilty plea. Magaly Cano, 29, pleaded guilty earlier this month. To date, a total of nine defendants have been charged, five of whom have pleaded guilty. (All defendants are presumed innocent until proven guilty in a court of law.)
The Drug Enforcement Administration’s Dallas Field Division 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 Phelesa Guy and Rick Calvert are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Controller Defrauds Law Firm Out of $1.5 Million by Inflating SalaryRead the Press Release
A law firm controller pleaded guilty Tuesday to inflating her payroll amount by $1.48 million over the course of just three years, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christiane Kathleen Irwin, 44, was indicted in March 2022. She pleaded guilty to wire fraud before U.S. Magistrate Judge Toliver.
According to court documents, Ms. Irwin, who worked for a law firm and was responsible for submitting payroll each week, falsely inflated her salary, which was set at approximately $140,000 annually.
In accordance with her fraudulent payroll submission, the firm’s payroll vendor transferred her purported pay from the firm’s bank account into her bank account every two weeks.
Over the course of three years, from 2019 to 2021, Ms. Irwin took home $1.48 million in fraudulently obtained funds.
She now faces up to 20 years in federal prison. Her sentencing date is slated for Jan. 3, 2024. Irwin has agreed that the loss amount to the firm for restitution is over $1.48 million.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Nashonme Johnson and Jenna Rudoff are prosecuting the case with the help of Financial Auditor Sheila Powell.
Man Sentenced for Conning Summer Food Service Program Out of $2.3 MillionRead the Press Release
A Dallas man who scammed the U.S. Department of Agriculture’s Summer Food Service Program out of more than $2.3 million was sentenced yesterday to a year and a half in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Anthony Munson, the 47-year-old founder of the Heloise Munson Foundation, was indicted in August 2018 and pleaded guilty in July 2022 to summer food service program fraud. He was sentenced Monday by U.S. District Judge Ada Brown, who is expected to order restitution later this week.
Mr. Munson was charged, convicted, and sentenced under 42 U.S.C. § 1761(o)(1), a statute Congress enacted in 1977 to address fraud in the Summer Food Service Program, a U.S. Department of Agriculture initiative that provides free meals to children in low-income areas when school is not in session.
According to plea papers, Mr. Munson admitted that over the course of seven years, from 2008 to 2014, he knowingly inflated meal counts for summer food sites his foundation serviced and even provided false meal counts for sites it did not actually service.
He further admitted that in response to an inquiry into the legitimacy of these claims, he paid an individual $75,000 who fabricated invoices from a fictitious company, Janus Wholesale Food, Inc., indicating that the foundation had purchased enough food, milk, and juice to provide the number of meals it claimed to have provided.
In October 2013, he testified under oath at an administrative hearing that the Heloise Munson Foundation had purchased food from Janus. He also submitted a fabricated affidavit from the purported Director of Sales for Janus, falsely stating that Janus sold food, milk, and juice to the foundation.
According to court documents, Mr. Munson claimed to have provided more than 2.4 million meals to needy children. In reality, he provided fewer than 1 million meals, pocketing fraudulently-obtained reimbursements for more than 1.4 million meals that were never provided.
The U.S. Department of Agriculture - Office of Inspector General and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Douglas Brasher prosecuted the case.
Jury Convicts Ex-FBI Agent of 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 convicted at trial of eight federal crimes, U.S. Attorney for the Northern District of Texas Leigha Simonton announced today. His coconspirator who also carried out the “secret probation” scheme was convicted as well.
William Roy Stone, Jr., 64, was indicted in May 2021. After 12 days of trial and just 4 hours of deliberation, a jury convicted him 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. Coconspirator Joseph Eventino DeLeon, 64, was indicted in December 2021. The jury convicted him of conspiracy to commit wire fraud.
“Mr. Stone used his imposing status as a former FBI special agent to manipulate, intimidate, and steal from his victim,” said U.S. Attorney Leigha Simonton. “Federal agents should be pillars of integrity. When they fail to meet that standard, we will not hesitate to hold them accountable to the fullest extent of the law.”
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.
In recorded phone calls introduced into evidence at trial, when C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”
C.T.: What I’m saying is, all of that stuff was to compensate you for all the stuff that you did for me, you know.
STONE: Okay, then. Okay. We don’t need to discuss that anymore. It’s over. It’s done.
C.T.: Well, I’m just trying to let you know that I feel like that’s a huge order. I mean, I feel like I could have got, like, the best attorney in, like, the world for $100,000.
STONE: Well, you know what, we can’t change the past, now can we?
…
C.T.: I’m not stupid, Bill. I may have been, you know, blinded because I thought that somebody in your position wouldn’t ever do what you did to me.
STONE: I never did anything.
C.T.: You took advantage of me based upon who you were in society.
C.T.: I even looked up Judge Anderson in Austin and the Anderson that pulls up... There’s not one, Bill. There is not one. There is not a Judge Anderson in Austin.
STONE: Bye.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 allegedly 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 now faces up to 158 total years in federal prison. Mr. DeLeon faces up to 20 years in prison.
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 are prosecuting 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. U.S. District Judge Ada Brown presided over trial.