Southern District of Texas
Press releases recorded for this federal judicial district.
- Mexican Pleads to Cocaine Importing Conspiracy as Trial Set to Begin
Alice Man Guilty of Social Security Disability FraudRead the Press Release
CORPUS CHRISTI, Texas - Guatemozin Garcia, 59, of Alice, has pleaded guilty to fraudulently receiving Social Security disability benefits, announced U.S. Attorney Kenneth Magidson.
Garcia began receiving benefits from the Social Security Administration (SSA) after reporting he was unable to work as a result of disorders of the back. However, the investigation revealed that numerous individuals had regularly paid Garcia to prepare gravesites for funeral services during the time of his alleged disability. Specifically, Garcia would physically dig graves using a tractor and shovel, set up and take down tents, chairs and artificial grass used during the services. He would also perform other tasks as directed. Law enforcement later witnessed Garcia performing the described tasks.
At today’s hearing before U.S. Magistrate Judge Jason B. Libby, Garcia admitted he concealed all of his work activity from January 2008 until October 2013. As a result of the fraud, Garcia and his dependents received $148,043.70, in Social Security Retirement Survivors Disability Insurance Program benefits to which they were not entitled.
Social Security disability benefits are paid from the Disability Trust Fund to disabled persons who meet eligibility requirements. Other persons, such as the beneficiary’s spouse and minor children, may also be entitled to SSA benefits because of the disability of a wage-earner. The amount paid, on a monthly basis, is dependent on the wage-earner’s previously paid taxes, whether the wage earner is alive or deceased and whether Part B Medicare premiums are withheld.
Sentencing has been set for Dec. 12, 2014. At that time, Garcia faces up to five years in federal prison and a possible $250,000 fine.
The case was investigated by SSA - Office of the Inspector General. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting.
- 3 Men Sentenced in Kingwood Bank Robbery
- Zeta Cartel Member Sentenced in Conspiracy to Smuggle Firearms/Grenades into Mexico
Greenvillle Man Guilty of Impeding Border PatrolRead the Press Release
LAREDO, Texas – Joe Adam Vega, 25, has entered a guilty plea to two counts of Impeding agents at the Border Patrol checkpoint just north of Laredo for refusing to comply with instructions, announced U.S. Attorney Kenneth Magidson. Vega, of Greenville, pleaded guilty in Laredo federal court yesterday afternoon.
According to court records and statements made at yesterday’s proceeding, Vega arrived at the checkpoint on July 29, 2014. Agents directed Vega to move away from the primary inspection lane and drive to the secondary inspection area after a canine had alerted to the presence of drugs or hidden persons in the vehicle's trunk. He refused.
He was ordered to move several times by the agent and a supervising agent. He continued to refuse. He said he wanted to go on his way without permitting the additional inspections. Agents warned him that he would be arrested for violations of impeding federal officers if he did not move as directed. He again insisted that he wanted to drive away without inspection.
His passenger locked the driver's door and attempted to roll up the car's windows. Agents forcibly removed both occupants from the vehicle and arrested them.
Sentencing has been set for Dec. 3, 2014, at which time he faces up to a year in prison and/or a possible $100,000 fine.
The case was investigated by Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Raul Guerra is prosecuting.
- Former Fugitive Faces Numerous Charges Including Hostage Taking Related to an Alleged Murder
DME Owner Heads to Prison for Multiple Counts of Health Care FraudRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been ordered to federal prison for eight years following her convictions of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. A jury convicted Tellison April 2, 2014, following three days of trial and less than two hours of deliberation.
Humble Man Sentenced for Multiple Convictions in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Lawrence Tyler, 42, has been ordered to prison for six years following his convictions of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. A Houston jury convicted Tyler on May 12, 2014, following five days of trial and less than four hours of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Tyler a total of 72 months in federal prison. He was further ordered to pay a $1,238,823.85 in restitution and will also be required to serve a term of three years of supervised release following completion of the prison term.
Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.
The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. During the conspiracy, Tyler submitted approximately $2.4 million in claims for durable medical equipment and was paid approximately $1.2 million by Medicare and Medicaid.
The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.
In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank. The monies were proven to be the proceeds of the health care fraud conspiracy. Additionally, Tyler used these funds to purchase a house in Humble which the United States plans to forfeit in order to repay Medicare and Medicaid for the fraudulently paid claims.Tyler will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigative effort of the FBI, the Texas Attorney
Felon in Possession Sentenced to Three Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas – Carlos Luna, 45, of Corpus Christi, has been handed a 36-month sentence for his conviction of possession of a firearm by a convicted felon, announced United States Attorney Kenneth Magidson. Luna entered a plea of guilty on Thursday, Aug. 7, 2014.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Luna to the 36-month-term which will be followed by a three-year-term of supervised release.
At the plea hearing, Wallace admitted that in September 2011, he facilitated the sale of three stolen handguns to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The guns had been reported stolen in vehicle burglaries which occurred throughout the Corpus Christi area. The undercover purchases were made on Sept. 13, Sept. 14 and Sept. 27, 2011, at a residence in Corpus Christi and were captured in audio and video recordings.
Luna had admitted he obtained the firearms by breaking into unattended vehicles on Ocean Drive. With previous convictions for assault with contact and aggravated assault in Nueces County, he is prohibited from possessing a firearm.
Luna has been in custody since his arrest on Aug. 23, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF and prosecuted by Assistant United States Attorney Sam Brown IV.El Salvador Undocumented Alien Sentenced for Illegal Re-entry into U.S.Read the Press Release
BROWNSVILLE, Texas – Jimmy Stanley Brizuela, 43, has been ordered to prison following his conviction of illegal re-entry after removal/deportation, announced United States Attorney Kenneth Magidson. A jury convicted Brizuela, a citizen of El Salvador, on May 13, 2014, following a two-day trial and approximately two hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Brizuela a total of 30 months in federal prison. As an illegal alien, Brizuela is expected to face deportation proceedings following his release from prison.
Brizuela entered the U.S. near the Rio Grande River area west of Brownsville. He and several others had waded across the river carrying bicycles which they then used to try to elude Border Patrol agents. Upon his arrest, Brizuela was determined to be an undocumented alien and citizen of El Salvador who had entered the U.S. illegally. It was further discovered that he had been previously removed from the country just three weeks before - April 5, 2013.
The jury also heard that he was a convicted felon who had been convicted of several felony offenses including possession of stolen property in 1998.
Brizuela testified at trial and admitted to being a former MS18-Mara Salvatucha gang member. He stated he had joined the gang here in the U.S. several years prior and that he returned to avoid other gangs in El Salvador.
Brizuela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Customs and Border Protection. Assistant U.S. Attorney Oscar Ponce is prosecuting.
Cypress Man Convicted of Distributing Child PornographyRead the Press Release
HOUSTON - Jimmy Ortiz, 33, of Cypress, has entered a guilty plea to one count of distribution of child pornography, announced United States Attorney Kenneth Magidson.
Indicted Jan. 30, 2014, Ortiz later appeared for a detention hearing before U.S. Magistrate Judge George C. Hanks Jr. who found Ortiz to be a danger to the community and ordered he be detained.
The investigation revealed Ortiz was making child pornography available to others through the use of peer-to-peer software over the Internet. An FBI agent downloaded a video of child pornography from the files Ortiz was making available online. The video included two minor female children under the age of 12 performing oral sex on each other. Additionally, a FBI agent in Oklahoma also downloaded videos that contained child pornography from Ortiz.
A search warrant was executed Sept. 27, 2013. At that time, agents seized computer media including external hard drives which led to the discovery of more than 1500 digital images and approximately 49 videos containing child pornography.
U.S. District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for Nov. 12, 2014. At that time, Ortiz faces a minimum of five and up to 20 years imprisonment as well as a possible $250,000 fine. He will also face a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender.
These charges were the result of an investigation conducted by the FBI Innocent Images Task Force.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Hostage Taking Sends Four Mexican Nationals to PrisonRead the Press Release
McALLEN, Texas – Four Mexican nationals, who kidnapped a group of foreign nationals who had been smuggled into the U.S. by another smuggling group, have been sentenced to lengthy federal prison terms, announced United States Attorney Kenneth Magidson. Andres Perez-Moshan, 37, Humberto Alvarez-Cheo, 25, Roberto Salinas-Martinez, 29, and Euclides Moreno-Dominguez, 34, of Mexico and themselves illegally in the U.S., pleaded guilty to one count of hostage taking on Feb. 18, 2011, before Chief U.S. District Judge Ricardo H. Hinojosa.
Today, Judge Hinojosa sentenced Moreno-Dominguez to 204 months in prison. On Friday, Aug. 15, 2014, the court handed Perez-Moshan a 264-month term, while Alvarez-Cheo and Salinas-Martinez were each sentenced to 120 months in prison. As illegal aliens, they are all expected to face deportation proceedings following their release from prison.
According to court records, on Nov. 24, 2008, the four defendants entered a stash house at an unknown location near Mission and kidnapped approximately 21 foreign nationals – all illegally in the United States. The defendants forcibly took them by gunpoint to a mobile home north of Edinburg where they were all arrested by Border Patrol agents the next day. At the time of arrest, agents seized three handguns with corresponding ammunition.
While at the Edinburg stash house, the four had forced the foreign nationals to strip, took all of their possessions, held them against their will and forced them to contact family members in the United States or abroad to extort a ransom for their release. The foreign nationals were threatened with the loss of their lives if they did not comply or if the ransom money was not received. Additionally, three of the female foreign nationals reported that Perez-Moshan and Moreno-Dominguez had sexually assaulted them.
All four defendants have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigation and Border Patrol. Assistant United States Attorneys Anibal J. Alaniz and Linda Requénez are prosecuting.
Houston Woman Pleads Guilty to Making Threat Against President ObamaRead the Press Release
HOUSTON – Teddy Bear Paradise, formerly known as Denise O’Neal, 56, has entered a guilty plea to one count of making a threat against President Obama, announced United States Attorney Kenneth Magidson.
At the hearing today, Paradise admitted to mailing a letter to President Obama in which she told him that she was coming to Washington D.C. to murder him. She also admitted to telling two Secret Service agents of her intention to kill the President, claiming that if she could not do it, she would find someone else to murder.
Sentencing is set for Nov. 7, 2014, before U.S. District Judge Gray H. Miller. At that time, she faces up to five years in federal prison and a possible $250,000 fine. She will remain in custody pending that hearing.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Houston Man Gets 40 Years for Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 22, of Houston, will be spending the next 40 years in prison as a result of his convictions on two counts of trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson. Harris pleaded guilty April 9, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, sentenced Harris to a total of 480 months in federal prison. He was further ordered to spend the rest of his life on supervised release and must register as a sex offender.
According to the plea agreement, from January through July 2012, Harris forced young girls, who he knew were minors, into prostitution by using force and intimidation. Harris stipulated that in order to gain the trust of victims, whom he met on social networking sites, he would tell them he was going to help them become models. Instead, he picked them up, took them to motel rooms and then forced them to have sex with him. Harris would also deprive them of their cell phones, thereby cutting off their communication with the outside world.
Harris used violence to keep the minors cooperating with him. In one instance, he deprived a victim of food for more than four days because he did not believe she was servicing his clients well enough. He also supplied her with marijuana and alcohol. Another victim was beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
The victims were photographed and their images were posted in online ads for prostitution. Harris kept all monies they earned.
Harris will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Correctional Officer and Spouse Plead Guilty to Bribery and ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Joel Gonzalez, a former U.S. Bureau of Prisons correctional officer, and Lisa Gonzalez, his wife, have admitted to accepting bribes from the family of an inmate in exchange for introducing contraband into the Federal Correctional Institution (FCI) in Three Rivers, announced U.S. Attorney Kenneth Magidson.
Joel Gonzalez admitted that from December 2012 through April 2014, he made arrangements to smuggle tobacco and other contraband into the FCI for an inmate in exchange for cash bribes. His wife assisted him in arranging times and locations for receiving the contraband and bribe payments. She also traveled with him from their residence in Beeville to Laredo in order to accept the items. Joel Gonzalez would then smuggle the items into the FCI on his body.
The investigation further revealed Lisa Gonzalez was employed by the Texas Department of Criminal Justice during the orchestration of this scheme.
Sentencing has been set for Nov. 19, 2014. They were permitted to remain on bond pending that hearing.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General and the FBI with assistance from Customs and Border Protection, Beeville Police Department and the Texas Rangers. Assistant U.S. Attorney Mark Patterson is prosecuting.
All 36 Charged ABT Members and Associates Convicted of Federal Racketeering Charges in the Southern District of TexasRead the Press Release
73 Convicted Across Five Federal Districts, Including All Five Active ABT Generals, Effectively Dismantling Organization
HOUSTON – The remaining two defendants of 36 accused in the Southern District of Texas of racketeering activities as part of their roles with the Aryan Brotherhood of Texas (ABT) have pleaded guilty, capping a six-year sweeping effort that has led to 73 convictions across five federal districts and the decimation of the gang’s leadership and violent members and associates. Those convicted were charged with involvement in a criminal organization that engaged in murders, kidnappings, brutal beatings, fire bombings and drug trafficking.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert W. Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Houston Field Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division and Special Agent in Charge David M. Marwell of the Homeland Security Investigations’ Dallas Field Division made the announcement.
“Today, public safety is the winner,” said Magidson. “A significant blow to the ABT criminal activities culminated today with the convictions of all 36 as charged in relation to this significant racketeering activity. Only with a coordinated federal, state and local law enforcement effort, could these criminals’ extensive and heinous gang activities be brought before the bar of justice.”
“The Aryan Brotherhood of Texas launched its murderous and racist ideology within the Texas prisons, but unleashed a violent crime wave that jumped the prison walls and spread like a virus,” said Caldwell. “Today we are announcing sweeping convictions that strike at the heart of the ABT gang: 73 convictions in five federal districts, including the five active generals who ran the organization with an iron fist. These convictions will ensure that these ABT gang members, from generals to soldiers, spend their years in federal prison paying for their crimes, not committing new ones.”
Rusty Eugene Duke, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Tammy Melissa Wall, of Otto, N.C., pleaded guilty to the same charge on Aug. 6, 2014. Duke and Wall are two of 36 defendants charged in the Southern District of Texas with conducting racketeering activity through the ABT criminal enterprise, among other charges. With Duke’s plea today, all 36 defendants have pleaded guilty.
The 36 convicted are part of a larger, six-year effort that has led to the conviction of 73 ABT members and associates in cases brought in the Southern District of Texas, Eastern District of Texas, Western District of Texas, Northern District of Texas and Western District of Oklahoma.
“Today marks a great day for the citizens of Texas,” said Elder. “As they go about their daily lives, they can rest easier knowing that law enforcement across the state is working tirelessly to keep them safe from violent criminals. Finally, this investigation is a great example of ATF’s Frontline Model, which seeks to go after the very worst offenders by maximizing all of our resources.”
“While these convictions have dealt a serious blow to the gang, there are always others waiting to take their place in the organization,” said FBI Special Agent in Charge Turner. “We have a message for them too: Violence and intimidation will not rule the streets of Houston. The FBI and our law enforcement partners will relentlessly pursue gang leaders and their associates at every level to ensure the safety of our communities.”
Court records and admissions by the defendants have exposed the ABT as a race-based, Texas state-wide organization operating inside and outside of state and federal prisons throughout Texas and the United States. Established in the early 1980s within the Texas prison system, the gang modeled itself after, and adopted many of the precepts and writings of, the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. The ABT was primarily concerned with the protection of white inmates and the promotion of whites as a superior race. The ABT used murder and the threat of murder to enforce its rules within the gang and maintain a position of power inside and outside of prison. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit. Once released from prison, ABT members and associates continued to engage in criminal activity on behalf of the enterprise.
Court documents portray the ABT as a highly structured organization run by five generals, each of whom oversees one of five geographic regions of Texas and sits on a steering committee. Each general supervises two chains of command —one on the “inside” and one on the “outside” of prison. Reporting to each general is an “inside major” and an “outside major” and each major oversees several captains, lieutenants and sergeants-at-arms and numerous soldiers.
In this prosecution, all five active ABT generals have been convicted as well as one “acting” general and one former general and founding member. In addition, the majors, captains and other leaders of the gang from each of the five regions – including Duke – were convicted.
ABT enforced its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated ABT rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, referred to as “direct orders.” For example, according to court records, ABT leaders ordered a subordinate to kill a rogue ABT prospect and return the victim’s severed finger as a trophy, engaged in planning to kill a police officer, and ordered the murder of an individual whom the ABT believed had stolen drugs from the enterprise.
Duke, Wall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. While females are not allowed to become members of the ABT, Wall and other women convicted in this case associated with the ABT, served as communication hubs for the gang, and engaged in criminal activity for the benefit of the ABT.
By pleading guilty to racketeering charges, Duke and Wall admitted to being members of the ABT criminal enterprise. They are both scheduled to be sentenced on Oct. 29, 2014.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Homeland Security Investigations; Drug Enforcement Administration; U.S. Marshals Service; Bureau of Prisons; Texas Rangers; Texas Department of Public Safety; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s offices in Montgomery, Harris, Atascosa, Orange, Waller, Galveston and Tarrant Counties; Police Departments in Houston, Alvin, Carrollton, Mesquite, Baytown and Fort Worth; and District Attorney’s offices in Montgomery, Atascosa and Harris Counties.
The case is being prosecuted by Assistant U.S. Attorney’s Tim Braley and Ed Gallagher and David Karpel of the Criminal Division’s Organized Crime and Gang Section.
Multiple Sentences Handed Down in Progreso Bribery SchemeRead the Press Release
HOUSTON – The former mayor of Progreso and three others have been sentenced for their convictions related a bribery scheme that permeated the town of Progreso and the local school board, announced United States Attorney Kenneth Magidson.
Omar, Jose and Michael Vela were originally charged along with Jesus Bustos based on their participation in a scheme to create a “pay to play” public contracting system in Progreso. The Velas all pleaded guilty to conspiracy and bribery concerning programs receiving federal funds, while Bustos, 58, pleaded guilty to conspiracy. In a separate, but related case, Orlando Vela was convicted of theft from a program receiving federal funds.
Michael, 30, Omar, 36, and Orlando, 34, are brothers and Jose, 65, is their father. Omar was the mayor of Progreso at the time of the criminal behavior. Michael was the president of the Progreso Independent School District Board (PISD) of Trustees, Orlando was employed by PISD as a risk manager and Jose was PISD’s director of maintenance and transportation.
Today, U.S. District Judge U.S. District Judge David Hittner sentenced Jose Vela to 120 months for the bribery concerning federally-funded programs and a consecutive 31 months for the conspiracy for a total of 151 months in federal prison. Omar and Michael Vela will serve 121 and 71 months, respectively, while Orlando received a 10-month-term. They will all also serve three years of supervised release. In addition, Jose Vela was ordered to pay a $10,000 fine and forfeit $300,000. Omar and Michael Vela were ordered to forfeit $314,000 and $300,000, respectfully, while Orlando was ordered to pay restitution in the amount of $12,874.42.
Bustos will be sentenced Aug. 27, 2014.
From 2004 through 2013, PISD received more than $1 million per year in federal program grants and funds from the U.S. Department of Education. In order to obtain contracts from PISD or from the City of Progreso, contractors were required to pay bribes.
The Velas were able to extract bribes from contractors as a result of their political control of Progreso and PISD. As government officials, Michael and Omar had a level of control over local government. In addition, Jose Vela controlled the PISD School Board by rewarding board members who voted as he directed with bribe money. Through this control over the PISD Board, Jose Vela caused contracts with PISD to be awarded to contractors who were willing to pay him bribes and kickbacks in return. Omar and Michael Vela assisted their father by gathering bribe payments from contractors and delivering the payments to him. They were then given a portion of those monies.
In total, Jose, Omar and Michael extracted more than $300,000 in bribe payments.
Bustos, a local architect, admitted that from 2004 through 2013, he paid bribes and kickbacks to obtain architectural contracts for his architectural firm IDEA Group LLC on public projects in the area. These included the Mario Ybarra Elementary School Construction project in Weslaco and West Elementary School, Fine Arts Center, North Elementary School and the Science and Technology building in Progreso.
In addition, from April 2009 to December 2012, Omar Vela instructed the owner of a plumbing and electrical supply company to provide fraudulent invoices to PISD and the City of Progreso for products they did not provide. When the invoices were paid, the owner returned the funds to Vela, resulting in more than $14,000 in kickbacks.
In a separate, but related case, Orlando Vela admitted he was responsible for directing and managing the school district’s risk management, loss control and safety programs. On May 11, 2012, he formed a company called Borderline Office Supplies which purported to be in the business of supplying office and janitorial products to school districts.
Between May 2012 and March 2013, Orlando Vela submitted invoices to PISD for products that Borderline did not actually supply to PISD. The payments on the fraudulent invoices were approved by PISD’s business manager, Orlando Vela’s wife, and totaled $12,874.42.
All were taken into custody following the sentences today, where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
Houston Woman Admits to Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has pleaded guilty to mail fraud and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced United States Attorney Kenneth Magidson.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
U.S. District Judge Lynn N. Hughes, who accepted the guilty plea today, has set sentencing for Nov. 10, 2014. At that time, she faces up to 20 years in federal prison for the mail fraud and up to five years for the Social Security fraud. Both convictions also carry as possible punishment a $250,000 fine.
She was permitted to remain on bond pending sentencing.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant United States Attorney John Braddock is prosecuting.
Speech Therapy Office Manager Guilty of Health Care FraudRead the Press Release
HOUSTON – Tiffany Nicole Thompson, 31, has been convicted of conspiracy to commit health care fraud and four counts of health care fraud in relation to nearly $4 million in fraudulent health care claims, announced United States Attorney Kenneth Magidson and Janice M. Flores, special agent in charge of the Defense Criminal Investigative Service (DCIS), Southwest Field Office.
“The plea in this matter is the result of a highly successful investigative effort by the DCIS and the U.S. Attorney's Office,” said Flores. “As the investigative arm of the Department of Defense - Office of Inspector General, one of our primary missions is the detection of fraud, especially the type that targets critical funding for health care for our warfighters, their families and military retirees. This plea serves as a warning for those intent on committing this type of criminal activity that law enforcement will pursue these crimes relentlessly.”
At the hearing today, Thompson admitted she worked as the office manager and biller for Rabon Communication Enhancement (RCE), a speech therapy clinic in Sugarland that provided speech therapy to children.
Thompson admitted she conspired to submit $3,784,642 in false and fraudulent claims to Tricare and Blue Cross and Blue Shield of Texas for speech therapy and swallowing therapy treatments that were not provided. Thompson admitted she knowingly billed Tricare for services when children did not appear for appointments. Thompson further admitted she billed Blue Cross and Blue Shield for approximately $545,440 worth of services for herself and another person, neither of whom were patients at RCE or received any health care services at RCE. She also submitted more than $379,000 in false and fraudulent claims to Blue Cross and Blue Shield for three fellow employees who worked at the clinic and never received any treatment there. Thompson further admitted that a letter with a forged signature was sent to Blue Cross and Blue Shield directing them to send one of the employees benefit statements to alternative address not that of the employee.
The two insurance companies paid at least $1,285,827.67 for the claims Thompson submitted.
U.S. District Judge Melinda Harmon accepted the plea today and has set sentencing for Oct. 24, 2014. At that time, Thompson faces up to 10 years in federal prison on each count as well as a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
Assistant United States Attorney Julie Redlinger is prosecuting the case.
Parole Officer Heads to Prison for Accepting BribesRead the Press Release
HOUSTON - Crystal M. Washington, aka Crystal Bureau, 54, has been ordered to federal prison following her convictions of accepting bribes from parolees and conspiracy to possess with intent to distribute heroin, announced United States Attorney Kenneth Magidson. Washington was employed as a parole officer at the Texas Department of Criminal Justice (TDCJ) office located on Hamilton Street in Houston. A federal jury convicted her Dec. 10, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who presided over the trial, handed Washington a total sentence of 60 months of federal imprisonment to be immediately followed by three years of supervised release.
Following the two-day trial last year, the jury found Washington accepted bribes from a parolee - a suspected heroin dealer - from 2009 to 2012 and that she warned the dealer of a Houston Police Department investigation in 2009. She was convicted of conspiracy to possess with intent to distribute heroin as well as conspiracy to commit extortion under color of official right for accepting money from the dealer. Further evidence was presented which showed Washington accepting money from a cooperating parolee in May 2012.
Washington was relieved of all duties and her employment terminated upon arrest.
Previously released on bond, Washington was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The operation was a combined public corruption task force effort by the FBI, Houston Police Department, TDCJ-Office of Inspector General and the Texas Rangers.
The case is being prosecuted by Assistant United States Attorneys Jim McAlister and Carolyn Ferko.
Four Head to Prison in Northeast Houston Theft and Fraud RingRead the Press Release
HOUSTON – Dana Sue Hales and three other Houston area residents have been sentenced in relation to a theft and fraud ring that operated in Northeast Harris County and elsewhere, announced United States Attorney Kenneth Magidson. Hales, 42, pleaded guilty for her role in the overall scheme as did Lindsay Ann Grice, 27, Joseph Scott Ryder, 46, and Jason Craig White, 34.
Today, U.S. District Judge Melinda Harmon sentenced Hales to 51 months for conspiracy to commit bank fraud and for possessing stolen mail which will be served concurrently. She received an additional 24 months for aggravated identity theft which must be served consecutively for a total sentence of 75 months.
Previously, Grice received 12 months for bank fraud as well as a consecutive 24 months for aggravated identity theft, for a total sentence of 36 months in federal prison. White and Ryder were both convicted of possessing stolen mail and possession of a firearm by a convicted felon and were each ordered to serve total sentences of 33 months.
According to the information revealed in open court, beginning at least in January 2012 the defendants broke into “blue” mail boxes located at or near area post offices to steal mail. Much of what the defendants stole included outgoing mail from citizens paying their bills. After opening the mail, they created false identifications and used them to open bank accounts and deposit the checks. On more than one occasion, area law enforcement were able to seize gym bags full of stolen mail from locations where the defendants were staying.
During the investigation, Grice was identified from bank surveillance photos negotiating stolen checks at First Convenience Bank. At the time of her guilty plea, she admitted she participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Information from court documents also revealed that in addition to stealing mail and cashing the checks using false identifications, Hales prepared false federal income tax returns and deposited the refund checks to accounts under her control.
On Sept. 5, 2012, Ryder was arrested at the residence of Hales on a parole violation warrant, at which time he was found to be in possession of a firearm. Ryder subsequently admitted that he, Hales and White were stealing mail, creating false identifications and cashing checks.
Later that month, agents and officers attempted the arrest of White, at which time he fled and attempted to pull a firearm. However, he dropped the gun and was arrested a short distance away. Stolen mail and additional firearms were found in a subsequent search of the residence. White confessed to participating with Hales, Ryder and others in stealing mail.
The matter was investigated by IRS-CI and the U.S. Postal Inspection Service with important contributions from the Harris County Sheriff’s Department, Harris County Precinct Four Constable’s Office, Humble Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the U.S. Marshals Service Violent Offenders Task Force. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Former Executive Indicted for Defrauding Shipping Company of More Than $4 MillionRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has been charged with defrauding her company and causing a loss of more than $4.1 million, announced United States Attorney Kenneth Magidson.
The indictment, returned under seal April 9, 2014, was unsealed yesterday upon her arrest by federal authorities in New York. She made her initial appearance there and is set to appear in Houston in the near future.
As outlined in the indictment, Creel, 43, formerly of Houston, was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. She also allegedly had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
The indictment alleges that from at least June 2003 through approximately August 2009, Creel defrauded Wilhelmsen by embezzling more than $4.1 million from the company’s bank accounts. Creel allegedly used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own.
The indictment specifically alleges that Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors, identified as Vendor A and Vendor B. Creel allegedly entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account, according to the indictment. Creel allegedly carried out the scheme from 2003 to 2005 by causing the company to issue physical checks to a vendor which she then arranged to be mailed to a Post Office box in La Porte, which she controlled. The indictment alleges Creel collected these checks and deposited them into her bank account.
Creel is charged with 10 counts of wire fraud, based on the wire transfers into her bank account. If convicted, she faces up to 20 years in federal prison on each count as well as a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Jury Convicts Houston Man on Firearm ChargesRead the Press Release
HOUSTON – Ronald Ray Norman, 32 of Houston, has been found guilty of being a felon in possession a firearm and ammunition, announced United States Attorney Kenneth Magidson. The federal jury sitting in Houston convicted Norman following a three-day trial and approximately two hours of deliberation.
During trial, the jury heard that a warrant had been out for Norman’s arrest when law enforcement received information about him and the vehicle he was driving. Testimony further revealed Norman had been regularly using rental vehicles in order to shield himself from law enforcement. Officers located Norman and the vehicle he was driving on Interstate 45 South on Feb. 12, 2014.
Officers attempted a traffic stop, but Norman jumped out and fled on foot, while the passenger drove away in the vehicle. Norman was chased on foot across all lanes of the highway, over retaining walls and along both feeder roads. He briefly stumbled and officers approached. Testimony revealed Norman then reached into his pocket, removed a silver and black .38 caliber revolver and threw it on the ground.
He was soon apprehended and found in possession of five rounds of .38 caliber ammunition.
Norman, a convicted felon, is prohibited from possession firearms or ammunition.
His defense contended that there were no other witnesses who saw him throw the weapon to the ground. His wife also testified and claimed she had never seen him with a gun or ammunition. The jury was not convinced and found him guilty on both counts as charged.
U.S. District Judge David Hittner, who presided over the trial, has set sentencing for Oct. 31, 2014. At that time, he faces a minimum of 15 years and up to life in federal prison. Previously in custody, he will remain detained pending that hearing.
The case was investigated by the Houston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jennie Basile and Joe Porto are prosecuting.
Nigerian Man Sentenced for Wire Fraud and Identity TheftRead the Press Release
HOUSTON – Olusegun Abayomi Martins, 36, a Nigerian citizen residing in Houston, has been ordered to federal prison for his convictions of conspiracy to commit wire fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. He pleaded guilty May 13, 2014.
Today, U.S. District David Hittner, who accepted the plea, handed Martins a sentence of 18 months for the wire fraud conspiracy. He was further ordered to serve a mandatory and consecutive two years for aggravated identity theft resulting in a total sentence of 42 months in federal prison. He is expected to face deportation proceedings following completion of the prison term. He was also ordered to pay $64,565 in restitution to the victims.
Beginning in January 2011 and continuing through September 2013, Martins obtained fraudulent credit cards that utilized stolen identities and ran them through his storefront, First Choice Automotive on Empanada Drive in Houston. Martins knew the credit cards had been fraudulently obtained and ran the cards for money when no transaction had actually occurred. Furthermore, Martins knew the credit cards were run for amounts that greatly exceeded amounts of typical legitimate transactions.
Martins also opened multiple merchant processing accounts in order to extend the life of the fraudulent scheme.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Final Two Ordered to Prison in Firearms Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – The final two Houston residents convicted in for their roles in a conspiracy to traffic dozens of AK-47 variant rifles from the Houston area to Mexico have been ordered to prison, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Javier Resendez, 29, and Mary Bel Deanda, 39, pleaded guilty earlier this year as did Mexican nationals Abel Lopez, 35, and Arturo Garcia, 31; and Roberto Santana Mears, 22, and Martha Gonzales, 41, and Angel Aquino-Pineda, 28, all of Houston.
Today, U.S. District Judge Nelva Gonzales Ramos determined Resendez was responsible for recruiting the straw purchasers and handed him a sentence of 108 months in federal prison to be immediately followed by three years of supervised release. Bel Deanda received a 24-month sentence and will also serve three years of supervised release.
Last month, Lopez, who was also convicted of being an illegal alien in possession of a firearm, received a total of 180 months in federal prison, while Mears, Garcia, Gonzalez and Aquino-Pineda were ordered to serve respective terms of 36, 46, 36 and 100 months.
In 2013, the Kingsville Specialized Crimes and Narcotics Task Force conducted a traffic stop on a truck driven by Aquino-Pineda in Kingsville and located 35 AK-47 variant rifles and $26,000 concealed in a false compartment. Seven of the rifles had obliterated serial numbers. Aquino-Pineda admitted his role was to transport the firearms from Houston to McAllen. The firearms would then be transported to Mexico.
ATF agents traced the firearms to Houston purchasers Deanda, Gonzales and Mears, who admitted they were “straw purchasers” for Resendez. Resendez indicated Garcia recruited him to purchase firearms for Lopez and that the firearms would be taken to Mexico. Resendez then recruited Deanda and Gonzales to “straw purchase” the firearms on his behalf. Mears admitted he was also a “straw purchaser” for Lopez.
On Jan. 24, 2014, agents executed a warrant at Lopez’s residence and located two Norinco, Model MAK90, 7,62x39mm AK-47 style rifles; one Baretta, Model 3032, Tomcat .32 caliber pistol; and $955. Lopez told agents that Garcia and Mears had purchased several firearms for him and that the firearms were to be sent to Mexico.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffrey D. Preston prosecuted the case.
Local Teacher Convicted on Federal Child Pornography ChargesRead the Press Release
HOUSTON – Derrick Gossett, 33, of Humble, has entered a guilty plea to two counts of production of child pornography, announced United States Attorney Kenneth Magidson. At the time of the offense, he was a music teacher at Anderson Elementary School in the Spring Independent School District (ISD).
Originally arrested on state charges, Gossett was taken into custody on these allegations on Friday, Sept. 6, 2013. He made his initial appearance shortly thereafter and was ordered into custody where he has remained since that time.
According to court records, Gossett used a Facebook profile he developed based on a former female student to solicit sexually explicit photographs that constituted child pornography from more than 150 young males. Gossett regularly used images he received from victims to extort additional images/videos containing child pornography. Not only did Gossett use the biographical information of a former student to elicit the child pornography images/videos from his victims, he created a fictitious woman “Katya” to communicate with and further manipulate the children. Victims have been identified throughout Texas, across the United States and in several foreign countries.
Authorities obtained a search warrant for Gossett’s residence, at which time authorities seized a laptop computer, several thumb drives, cell phones and digital cameras. One external portable hard drive, found in a lock box inside Gosset’s residence, was forensically analyzed and contained hundreds of files with images depicting different young males, ranging in age from I2 to I7 and in various stages of undress.
The case was investigated by the Harris County Precinct 4 Constables Office, Homeland Security Investigations and the Houston Metro Internet Crimes Against Children Task Force with the assistance of the Spring ISD Police Department. The matter was brought as part of as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Lavaca County EMS Worker Sentenced for Possessing Child PornographyRead the Press Release
VICTORIA, Texas - David Waldrop, 56, of Luling, has been ordered to prison for more than six years for possessing child pornography, announced United States Attorney Kenneth Magidson.
Senior U.S. District Judge John D. Rainey sentenced Waldrop to 76 months in federal prison to be immediately followed by 10 years of supervised release. During the hearing today, the court considered the lasting harm done to the victim as well as the need to protect the public.
Waldrop had come to the attention of law enforcement when co-workers at the Lavaca County EMS discovered a thumb drive inserted into a work computer and saw an image of child pornography on the screen. The thumb drive was later determined to belong to Waldrop.A second thumb drive was also discovered at the work station.
Forensic analysis led to the discovery of dozens of images of child pornography, hundreds of images of child erotica and dozens of child rape/incest stories, some of which appear to have been written by Waldrop himself. In addition to child exploitation material, the forensic examination revealed numerous personal connections between Waldrop and the devices which clearly identified him as the user and owner of them.
Waldrop was later interviewed by law enforcement, at which time he admitted ownership of the devices and responsibility for the child pornography and other exploitation material found.
The case was investigated by the Lavaca County Sheriff’s Office, Texas Attorney General’s Office and Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Sentenced in Houston Theft and Fraud RingRead the Press Release
HOUSTON – Jason Wade Crawford, 36, has been ordered to federal prison for his convictions of bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. He pleaded guilty May 6, 2014.
Today, U.S. District David Hittner, who accepted the plea, handed Crawford a sentence of 15 months for the bank fraud and access device fraud charges to be served concurrently. For the aggravated identity theft, he was further ordered to serve a mandatory two years which must be served consecutively for a total sentence of 39 months in federal prison. Crawford will also be required to serve a term of three years of supervised release following completion of the prison term. He was further ordered to pay a $23,682.36 in restitution to the victims.
Beginning in at least May 2012, Crawford broke into several mail boxes throughout the Houston area to steal mail, much of which included checks, credit cards, gift cards and other mail with personal identifiers. He then created false identifications and used them to deposit or cash the checks.
Bank surveillance photos showed Crawford negotiating stolen checks at Woodforest National Bank and Amegy Bank. Local area law enforcement officers were also able to seize bags full of stolen mail from Crawford’s car.
At the time of his guilty plea, he admitted he participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Crawford will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Houston Man Gets 25 Years for Producing Child PornographyRead the Press Release
HOUSTON – Daniel M. Layne, 34, of Houston, has been ordered to federal prison following his conviction of production of child pornography, announced United States Attorney Kenneth Magidson. Layne pleaded guilty Friday, Feb. 14, 2014.
Today, U.S. District Judge David Hittner handed Layne a total sentence of 300 months in prison. At the hearing, additional information was presented including evidence that Layne had been communicating over the Internet with other underage girls and discussing engaging in sexual activity with them. Judge Hittner further ordered Layne to be placed on supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation began in Maine when the mother of a 14-year-old girl discovered a motel key card in her daughter’s pants pocket and sexually graphic text messages on her cell phone. She contacted local authorities who then determined that Layne had traveled to Maine after meeting the girl over the Internet. The investigation revealed Layne had taken sexually explicit photos of the young girl.
As a result of the information gathered in Maine, authorities in the Houston area conducted a search at Layne’s residence on Sept. 24, 2013, at which time they seized computers, a tablet and cell phones from the house. A forensic analysis revealed images of the 14-year-old on the tablet and a cell phone.
Layne was arrested on the federal charges in October 2013 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Harris County Sheriff’s Office investigated the case in conjunction with the Houston Metro Internet Crimes Against Children Task Force and the Westbrook, Maine, Police Department.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Convicted of Distributing MethamphetamineRead the Press Release
McALLEN, Texas – Francisco Calderon, 27, and Jorge Alejandro Galvan-Ibarra, 30, have entered a guilty plea to possession with intent to distribute more than one kilogram of methamphetamine, announced United States Attorney Kenneth Magidson. Calderon entered his plea just a short time ago, while Galvan-Ibarra pleaded yesterday.
Calderon, a naturalized citizen originally from Mexico residing in McAllen, and Galvan-Ibarra, an illegal alien residing in the Dallas area, were arrested June 3, 2014, as they attempted to distribute the methamphetamine.
Calderon brokered the transaction out of McAllen, while Galvan-Ibarra was to deliver the drugs in Dallas.
Prior to the June 2014 arrest, Calderon admitted to negotiating two additional transactions totaling more than 500 grams of methamphetamine. Galvan-Ibarra handled the delivery of the methamphetamine in one of the transactions.
U.S. District Judge Micaela Alvarez, who accepted the pleas, has set sentencing for Oct. 22, 2014. At that time, they face a minimum o f10 years and up to life in federal prison as well as a possible $10 million fine. Both were ordered to remain in custody pending that hearing.
The charges are the result of an Organized Crime Drug Enforcement Task Force investigation dubbed Operation Sword Fight conducted by the Drug Enforcement Administration, Homeland Security Investigations and FBI. Assistant United States Attorney Juan F. Alanis is prosecuting.Three Sent to Prison in Massive Stash House CaseRead the Press Release
HOUSTON – Three of the five men arrested in connection with the March discovery of more than 100 illegal aliens in an area stash house have been ordered to federal prison, announced United States Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jonathan Solorzano-Tavila, 30, Jose Cesmas-Borja, 26, and Eugenio Sesmas-Borja, 20, pleaded guilty just one month after their arrest as did Jose Aviles-Villa, 32, and Antonio Barruquet-Hildeberta, 46. All are from Michoacan, Mexico.
They were all convicted of conspiracy to harbor and transport ilegal aliens and use of a firearm during and in relation to a crime of violence.
Today, U.S. District Judge Lee Rosenthal, handed Solorzano-Tavila, Sesmas-Borja and Cesmas-Borja respective sentences of 60, 54 and 51 months in federal prison for the conspiracy charge. Each were also ordered to serve consecutive 60-month sentences for the use of a firearm, resulting in total sentences ranging from 120 to 111 months in prison. As illegal aliens, they are all expected to face deportation proceedings following release from prison. Aviles-Villa and Barruquet-Hildeberta will be sentenced Sept. 4, 2014.
The five men were arrested March 19, 2014. On that date, 115 illegal aliens were discovered in a stash house on Almeda School Road in Houston.
The convicted smugglers admitted they obtained substantial profits as a result of the conspiracy. They had established networks who brought the aliens into the U.S. illegally across the Southwest border. The illegal aliens were then held in stash houses while the smugglers arranged payment of remaining smuggling fees from their families.
While in the stash house, the conspirators seized the victim aliens’ clothes, shoes, phones and other possessions. The conspirators used guns, paddles, tasers and other equipment to control and prevent the illegal aliens from escaping from the stash house. They guarded the aliens with guns displayed in plain view and threatened to kill them by shooting them in the back of the head if they tried to escape.
In one specific instance, the conspirators contacted the mother of one of the stashed aliens and told her to pay an additional $13,000 for the victim and her two children. She was advised that if she did not pay, they would “make her family disappear and make her family pay.”
They will all remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI with the assistance of the Houston Police Department. Assistant United States Attorney (AUSA) Julie Searle and Special AUSA Rick Bennett are prosecuting.
Seven Sentenced to Federal Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON - The final two defendants charged for their roles in a multi-million dollar mortgage fraud scheme operating in the Houston area have been ordered to prison, announced United States Attorney Kenneth Magidson. Din Chaney, 36, and Lisa Lipton, 50, admitted to participating in a conspiracy to commit bank, mail and wire fraud as did Catherine Sanoubane, 35, Jose Batista, 36, Dennis Hannah, 43, Nathaniel Gordon III, 32, and Shawn Lewis Washington, 38.
All were convicted of the conspiracy. Chaney, Sanoubane, Hannah and Gordon also admitted to conspiracy to commit money laundering
Today, U.S. District Judge Lee H. Rosenthal sentenced Chaney to a total of 36 months, while Lipton received a 52-month-term of imprisonment. Lipton and Chaney were also ordered to pay $3,499,129.06 and $4,551,917.65 in restitution, respectively.
Sanoubane, Hannah, Gordon, Washington and Batista were all sentenced earlier this year to respective terms of 115, 46, 24, 97 and six months in federal prison. All were also ordered to pay restitution in varying amounts ranging from more than $1.6 million to more than $6.3 million.
The scheme involved the recruitment of straw borrowers to purchase residential properties at an inflated value. Financing was obtained from various lenders who were provided false and fraudulent information meant to induce them to fund the loans. The defendants arranged to be compensated with a portion of the loan proceeds.
Ultimately, the loans fell into default which resulted in a substantial loss to the lenders. Sanoubane, Lipton, Chaney and Gordon were all licensed loan officers in the State of Texas engaged in mortgage lending during the commission of the fraud. In addition, Lipton was also a licensed mortgage broker doing business as TWMC Inc.
The criminal investigation was led by the FBI, U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting.
Edcouch Woman Pleads Guilty to Embezzling More Than $90K from Halfway HouseRead the Press Release
McALLEN, Texas – Ofelia Alvarado Vallejo, 44, of Elsa, has admitted to embezzling more than $90,000 from the Mid Valley House Residential Reentry Center when she worked there as an administrative assistant, announced U.S. Attorney Kenneth Magidson.
Vallejo admitted that from March 2012 through and February 2013, she embezzled more than 600 money orders and vendor checks that belonged to Mid Valley and to the Federal Bureau of Prisons. The funds included subsistence payments by Mid Valley residents (typically a quarter of a Mid Valley resident’s income), payments for anger-management classes and vendor checks that were commissions from laundry services. Vallejo was responsible for collecting all of these funds, posting the credit items to Mid Valley financial records and depositing the credit items into Mid Valley’s corporate account at Bank of America.
Instead, she deposited the money orders and vendors checks into her personal accounts with JP Morgan Chase and Bank of America for her own benefit. She also falsified records to hide her criminal misconduct. For example, she would forge the information on the money orders by replacing the payee information with her name and also falsify Mid Valley’s financial records to conceal the missing funds.
During the one-year period beginning on March 1, 2012, Mid Valley received more than $10,000 in federal funding.
Under the plea agreement, Vallejo has agreed to pay back the funds that she embezzled as restitution.
U.S. District Judge Micaela Alvarez has set sentencing for Oct. 22, 2014, at which time she faces up to 10 years in federal prison. She was permitted to remain on bond pending that hearing.
This case was investigated by Department of Justice - Office of Inspector General with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting.
Three Sentenced for Money Laundering and Drug Trafficking CrimesRead the Press Release
CORPUS CHRISTI, Texas - Three Brownsville residents have been sentenced to federal prison for their roles in a drug trafficking and money laundering conspiracy, announced United States Attorney Kenneth Magidson. Roberto Ruiz aka Bobby, 38, Rodolfo Ruiz Jr. aka Pollo, 26, and Jose Luis Guerrero aka Pana, 41, previously pleaded guilty to possession with intent to distribute more than five kilograms of cocaine and conspiring to launder the drug proceeds.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Roberto Ruiz to 140 months, while Rodolfo Ruiz and Guerrero received respective sentences of 100 and 160 months. All will also have to serve five years of supervised release following completion of their prison terms. As part of his plea agreement, Robero Ruiz agreed to forfeit his interest in his residence in Brownsville.
In assessing her sentence, Judge Ramos noted the length of the conspiracy, which was Jan. 1, 2005, to Aug. 28, 2013. She also noted that Roberto Ruiz had a leadership role in the organization. Guerrero, she noted, had an extensive criminal history.
Also charged and convicted were Peter Morales aka Pirucha, 31, of Houston, and Leonel Mendoza Diaz aka Masacuata, 39, of Brownsville. They pleaded guilty to the drug conspiracy and were previously sentenced to 135 months in prison. Ricardo Olivas aka Bugs, 42, and Mario de la Fuente, 37, both of Brownsville, also pleaded guilty to their involvement in the conspiracies and will be sentenced at a later date.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, sheriff’s offices in Cameron and Willacy Counties, as well as police departments in Brownsville, Port Isabel, Harlingen and San Benito. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Jury Convicts Alamo Woman on Multiple Firearms ChargesRead the Press Release
BROWNSVILLE, Texas - Yadira Garcia, 35, has been convicted of all six counts of making false statements on firearm records, announced United States Attorney Kenneth Magidson along with Robert W. Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A federal jury convicted Garcia, of Alamo, late yesterday following two days of trial and approximately 30 minutes of deliberation.
In August 2013, Garcia purchased five assault rifles over a six-day period from two federally licensed firearms dealers located in Harlingen and McAllen and paid more than $5,000 in cash. Within the same week, Garcia attempted to buy two more rifles and was denied sale due to the suspicion of straw purchasing the firearms.
In connection with the purchases, Garcia executed three different Firearms Transaction Records (4473 Forms) which must be filled out when a person purchases a firearm from a Federal Firearms Licensee (FFL). On all three forms, Garcia certified she was the actual buyer and provided an address in Pharr.
Garcia admitted to agents that she purchased the rifles and claimed she had done so using bingo winnings. However, Garcia gave inconsistent statements regarding the whereabouts of those firearms. She initially claimed they were with a relative, then changed her story and indicated they were stashed with a friend whose name, location and contact information she could not provide. Garcia purchased three AR-15 and two AK-47 style rifles, considered “weapons of choice” by drug trafficking organizations in Mexico. One of the AK-47s was recovered by Mexican law enforcement in Reynosa, Tamaulipas, Mexico on Aug. 27, 2013, only 20 days after she had Garcia purchased it. Garcia admitted she lied about her current residence address on her signed 4473 forms.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for Oct. 27, 2014. At that time, she faces up to five years in federal prison and a $250,000 fine for each count of conviction. She was permitted to remain on bond pending that hearing.
ATF investigated. Assistant United States Attorneys David A. Lindenmuth and Carrie Wirsing are prosecuting the case.
Friendswood Man Convicted of Receipt and Possession of Child PornographyRead the Press Release
GALVESTON, Texas - Miguel Angel Macias, 53, formerly of Friendswood, has entered a guilty plea to receipt and possession of child pornography, announced United States Attorney Kenneth Magidson.
The investigation into Macias began as a result of an investigation into a website and message board by investigators in San Diego, Calif. During that investigation, a computer was traced to Macias and identified as accessing the message board and downloading images of child pornography.
A search warrant was conducted at his Friendswood home. At that time, officers seized a laptop computer, a number of CDs and several external hard drives which were found to contain more than 2,000 images and more than 100 videos containing child pornography.Macias admitted to downloading and viewing child pornography.
U.S. Circuit Judge Gregg Costa, sitting by designation, has set sentencing for Oct. 7, 2014. At that time, Macias faces at least five and up to 20 years on the receipt charges and up to 10 years imprisonment for possession of child pornography. Both convictions also carry a possible $250,000 maximum fine. Upon completion of any prison term imposed, Macias also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. He will also be required to register as a sex offender.The charges against Macias were the result of an investigation conducted by Homeland Security Investigations, Friendswood Police Department and the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, as brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Five Ordered to Custody in Galveston on Charges of Methamphetamine DistributionRead the Press Release
GALVESTON, Texas – Five men, charged with conspiracy to possess with the Intent to distribute methamphetamine in the Galveston area, have been ordered detained pending further criminal proceedings, announced United States Attorney Kenneth Magidson.
Abel Hinojosa, 34, Nelson Agapito Ventura, 37, Daniel Reyna, 33, Israel Sanchez, 20, and Rodolfo Hernandez Perez, 26, all of La Marque, appeared before U.S. Magistrate Judge John R. Froeschner last Friday. The court took the matter under advisement and subsequently ordered they be detained pending trial.
All five are charged with one count of conspiracy to possess with the Intent to distribute more than 50 grams of methamphetamine as well as more than 500 grams of a mixture containing methamphetamine in the Galveston Division of the Southern District of Texas.
Perez and Hinojosa are further charged with one and three counts, respectfully, of possession with intent to distribute varying amounts of methamphetamine. The indictment also includes a notice of forfeiture.
At the hearing, the government presented evidence that Hinojosa and Ventura were the alleged leaders of this narcotics conspiracy. According to the allegations, they were obtaining crystal methamphetamine and other narcotics from Mexico, sending couriers to pick up the narcotics and then distributing the drugs within Galveston as well as to out-of-state customers.
Perez and Sanchez allegedly served as couriers for the drug conspiracy, helping to pick up the drugs from Mexico and transporting it to customers.
The government presented evidence that Reyna served as a street-level distributor. Upon his arrest, he was allegedly found with crystal methamphetamine, eight firearms (including two assault rifles) and approximately 1000 rounds of ammunition.
After hearing the evidence and testimony, Judge Froeschner found them to be a danger to the community and ordered they be detained pending further criminal proceedings. The court further noted the strength of the government’s case and its substantial evidence. Trial is set for Sept. 22, 2014.
Each face a minimum of 10 years and up to life in federal prison for the conspiracy, if convicted. The possession with intent charges against Hinojosa and Perez also carry varying terms of either a minimum of five and up to 40 or another minimum of 10 and up to life for the underlying drug offenses.
The case is being investigation by the Drug Enforcement Administration, Homeland Security Investigations and Galveston Police Department. Assistant United States Attorneys Ted Imperato and Sharad Khandelwal are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendants are presumed innocent unless and until convicted through due process of law.Houston Women Charged in Bank Fraud/Identity Theft CaseRead the Press Release
HOUSTON - Tonya Beverly, 38, and Leatrice Reynaud, 43, both of Houston, have been arrested following the return of a 20-count indictment alleging conspiracy to commit bank fraud, bank fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Both are expected to make their initial appearance before U.S. Magistrate Judge Frances Stacy today.
The indictment was returned under seal July 16, 2014, and unsealed yesterday upon their arrest.
Beverly and Reynaud allegedly created at least 33 false and fraudulent USAA customer profiles, which included checking and savings accounts, using the identification information of individuals without their knowledge or permission. According to the indictment, Beverly and Reynaud linked the false and fraudulent USAA accounts with the real bank accounts of the victims whose identification information was used and transferred money from the real accounts into the false and fraudulent USAA accounts.
Further, the indictment alleges that the two received and used debit cards issued to the false and fraudulent USAA accounts to withdraw cash from ATM machines and make purchases, including plane tickets. In addition to the conspiracy and bank fraud, the indictment alleges Beverly and Reynaud unlawfully used the identification of at least eight individuals as part of their bank fraud scheme.
The indictment includes a notice of forfeiture in the amount of $106,383 in allegedly unlawful proceeds.
In a related case, co-conspirator Demetria Jones, 40, also of Houston, was charged with conspiracy to commit bank fraud. The criminal information charging Jones was filed yesterday in Houston federal court. She is expected to surrender to authorities Wednesday, July 23, 2014.
A conviction for conspiracy or bank fraud carries a possible punishment of up to 30 years in federal prison and/or a possible $1 million fine. If convicted of aggravated identity theft, Beverly and Reynaud further face a $250,000 fine and a mandatory two years in federal prison which must be served consecutively to any other prison term imposed.
The investigation was conducted by the United States Secret Service. Assistant United States Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Corpus Christi Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Lee Marvin Koerner, 50, has been ordered to prison following his conviction of possession of child pornography, announced United States Attorney Kenneth Magidson. Koerner pleaded guilty April 21, 2014.
Today, Senior U.S. District Judge John D. Rainey sentenced Koerner to 60 months in federal prison to be immediately followed by 10 years of supervised release. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Torres in the future. He must also register as a sex offender.
Koerner came to the attention of law enforcement in October 2013 when he attempted to use his email address to distribute an image of child pornography to another email account. A search warrant was conducted on Koerner’s Corpus Christi home, which led to the eventual discovery of more than 1100 images and 200 videos of suspected child pornography.
At that time, Koerner admitted to using a computer to access the Internet to obtain images of child pornography and that he had engaged in this behavior for several years.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the conviction was conducted by the Corpus Christi Police Department’s Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Accountant Sentenced for Assisting in Preparing False Income Tax ReturnsRead the Press Release
HOUSTON - John E. Carter, a local accountant and income tax return preparer, has been ordered to prison following his multiple convictions of willfully aiding and assisting in the preparation and presentation of false income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). A federal jury convicted Carter in February 2014 following two days of trial.
Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Carter a total sentence of 41 months in prison to be immediately followed by one year of supervised release. He was further ordered to pay a $132,477 in restitution to the IRS.
At trial, the jury heard that Carter prepared tax returns for his clients that claimed false deductions for large charitable contributions of appreciated art. The evidence proved the taxes owed to the U.S. on the five tax returns in question was more than $400,000.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorneys Charles J. Escher and John R. Braddock.
Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Kenneth Michael Hancock, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. James Erik Sharron, aka “Flounder,” of Houston, pleaded guilty to the same charge on July 14, 2014.
According to court documents, Hancock, Sharron and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Hancock, Sharron and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Hancock and Sharron admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Hancock and Sharron are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Hancock and Sharron are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 34 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Killeen Area Man Found Guilty of Sex Trafficking of A MinorRead the Press Release
HOUSTON – Bobby Barrett, aka “Black,” 30, has been convicted of sex trafficking of a minor who was under 18 with force, fraud or coercion, and transporting her across state lines for the purpose of engaging in prostitution, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against the Killeen area man after a four-day trial and less than two hours of deliberation.
Barrett was found guilty of one count each of sex trafficking of a minor and transportation of a minor with intent to engage in criminal sexual activity.
The federal charges brought against Barrett are the result of an investigation conducted by the Houston Innocence Lost Task Force, led by the FBI and the Shreveport, La., Police Department (SPD). The investigation began in October 2013 after the victim was detained during an enforcement operation in Houston. Barrett bonded her out and then transported her across state lines to Louisiana where ads for prostitution services were posted. SPD arrested her in another operation less than two weeks later along with Barrett and another woman.
Testimony at trial revealed Barrett posted no less than 26 Internet prostitution ads from his phone. Barrett rented hotel rooms for the prostitution dates and supplied the victim and another woman with marijuana. The victim, a 17-year-old minor, testified she was the person depicted in seductive settings for the purpose of some of the advertisements for prostitution posted online. She said that at the time of the incidents, Barrett not only knew she was 17, but her High School identification was found in his pocket. Moreover, the minor testified she feared Barrett and that he cut her face during an altercation just prior to his arrest.
In addition to the victim’s description, an expert further testified as to how this subculture operates. Barrett took all monies the minor victim earned.
Forensic analysis of Barrett’s cell phone conducted by the FBI revealed pictures of multiple victims that were used in Backpage ads posted on the Internet. Phone records also confirmed that Barrett posted multiple ads on Backpage, including at least two minors under the age of 18. Hotel records verified that Barrett traveled out of state with the victims.
U.S. District Judge Keith P. Ellison, who presided over the trial, has set sentencing for Oct. 15, 2014. At that time, Barrett faces up to 40 years in federal prison for sex trafficking of a minor and a mandatory minimum of 10 years and up to life imprisonment for transporting a minor with the intent to engage in criminal sexual activity. Upon completion of any prison term imposed, Barrett also faces a maximum of a life term of supervised release and will be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Illinois Man Sentenced for Trafficking Counterfeit Goods and Drugs into the U.S.Read the Press Release
HOUSTON - An Illinois man, who previously pleaded guilty to trafficking in counterfeit goods and introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act, was sentenced today to serve 41 months in prison.
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Brian Moskowitz of Homeland Security Investigations (HSI) made the announcement.
Fayez Al-Jabri, 45, of Chicago, Ill., was sentenced by U.S. District Judge Nancy F. Atlas. In addition to his prison term, Al-Jabri will serve three years of supervised release and must pay $15,066.92 in restitution. On March 21, 2014, Al-Jabri pleaded guilty to one count of conspiracy to traffic in counterfeit goods, to introduce misbranded prescription drugs into interstate commerce and to import such goods contrary to U.S. law; one count of trafficking in counterfeit goods; and one count of introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.
Al-Jabri was indicted on Aug. 22, 2012, along with one other individual, Jamal Khattab, 49, of Katy, for their respective roles in the conspiracy. Khattab pleaded guilty on Dec. 3, 2013, to the same charges, and his sentencing is scheduled for Aug. 14, 2014. According to court documents, Al-Jabri conspired to traffic in more than 26,000 counterfeit Viagra tablets over the course of the conspiracy, including the shipping of thousands of counterfeit Viagra tablets from Chicago to an undercover agent in Houston from July 2011 through October 2012. HSI submitted all of the tablets seized during the investigation to both the U.S. Food and Drug Administration (FDA) and Pfizer, Viagra’s manufacturer, for analysis. Both the FDA and Pfizer identified the tablets as counterfeit and misbranded Viagra.
This matter was investigated by HSI, the FDA’s Office of Criminal Investigations, Department of State - Diplomatic Security Service and police departments in Houston and Chicago. The case is being prosecuted by Assistant U.S. Attorneys Kebharu Smith and Jennifer Lowery and Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.
Four Convicted in Sex Trafficking, Harboring and Money Laundering InvestigationRead the Press Release
HOUSTON – Four people have entered guilty pleas to conspiracy to harbor illegal aliens relating to their roles in a sex trafficking, harboring and money laundering organization, announced United States Attorney Kenneth Magidson.
Abel Medeles aka Chito, 64, and Odelia Hernandez, 45, both of Houston, entered their respective pleas this morning before U.S. District Judge Ewing Werlein Jr. as did Eduardo Guzman Gonzales aka Miguel Rojas or El Pantera, 30, Alberto Mendez Flores aka Ardilla, 25, both Mexican citizens illegally residing in the U.S.
As part of their pleas, all admitted they worked for Las Palmas II, a cantina located in Houston. They all knew the cantina concealed, harbored and shielded illegal aliens who worked there from detection by law enforcement and that the owners were profiting from such concealment. As part of their employment, they aided in the operation of the business and their conduct substantially facilitated the concealment, harboring and shielding of the employees and patrons of the Las Palmas II, whom they all knew were illegally in the U.S.
Medeles operated the Las Palmas II parking lot. It was part of his job to notify his co-conspirators inside the cantina of any law enforcement presence he observed in order for his co-conspirators to be able to conceal from law enforcement the illegal activities in the Las Palmas II. Similarly, on at least one occasion, Hernandez told co-conspirators to lock the doors when she realized law enforcement was coming.
Gonzales and Flores managed the cantina. They paid the owners $20,000 each week out of the money received from the operation of the Las Palmas II and kept all the monies received in excess of that amount.
The cases against the others charged in relation to the investigation remain pending. They are considered innocent unless and until proven guilty through due process of law.
Judge Werlein has set sentencing for Medeles and Hernandez on Oct. 10, 2014, while Gonzales and Flores will be sentenced the following week. At that time, each faces up to 10 years in federal prison and a possible $250,000 maximum fine. They all will remain in custody pending that hearing.
The three-year investigation was conducted as part of the Human Trafficking Rescue Alliance (HTRA) and includes FBI, Harris County Sheriff?s Office, Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, Texas Alcoholic Beverage Commission, Department of State, Texas Department of Public Safety and the Houston Police Department.
Assistant United States Attorneys Ruben R. Perez and Joe Magliolo are prosecuting.
Former Sheriff Ordered to PrisonRead the Press Release
McALLEN, Texas - Guadalupe Trevino, aka Lupe Trevino, has been sentenced to federal prison following his conviction of conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson. Trevino, 64, of McAllen, was the former sheriff of Hidalgo County and pleaded guilty April 14, 2014.
“No one is above the law,” said Magidson. “Those entrusted with protecting the public safety have a specific duty to guard against corruption. When they become crooked themselves, the interests of the people demand full accounting for their illegal activities.”
Calling this day a “sad” one for Hidalgo County, U.S. District Judge Micaela Alvarez upwardly departed from the recommended guidelines and handed Trevino a 60-month term of imprisonment. He was also ordered to pay a $60,000 fine and will serve a two-year-term of supervised release following completion of the prison sentence.
“The sentencing of the former Hidalgo County sheriff is the culmination of a long-term investigation into corruption and the violation of public trust,” said Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. “While the local community mourns this violation, they're now able to put this chapter behind them.”
Jose A. Padilla, of Weslaco, a former deputy commander with the Hidalgo County Sheriff’s Office who served under the leadership of Trevino pleaded guilty to receiving a bribe, in a separate, but related case. Nine others, including drug trafficker Tomas Reyes Gonzalez aka “El Gallo,” were convicted in relation to the underlying narcotics/money laundering conspiracy. They will all be sentenced Sept. 18, 2014, by U.S District Judge Randy Crane.
The investigation revealed that from 2007 to 2013, Reyes Gonzalez headed a drug trafficking organization responsible for the distribution of thousands of kilograms of marijuana and hundreds of kilograms of cocaine. The narcotics were transported from the Rio Grande Valley to Arkansas, Tennessee, Alabama and Georgia. Reyes Gonzalez used the resulting drug proceeds to purchase properties.
Trevino admitted he received cash contributions for his election campaign through Padilla from Reyes Gonzalez, acknowledging he accepted the money knowing it was from illegal activities. At the time of his guilty plea, Padilla also admitted he received cash from Reyes Gonzalez in exchange for providing information to him related to ongoing law enforcement activities.
Trevino admitted he accepted the monies directly and through others as donations to assist with his 2012 election campaign. Some of the monies received were subsequently deposited into bank accounts Trevino controlled and were comingled with other funds. During and after the transactions, Trevino and others acted to disguise and conceal the nature, location, source, ownership and control of the currency by filing false Candidate/Officeholder Campaign Finance Reports and producing other documents.
Trevino’s former chief of staff and campaign treasurer, Maria Patricia Medina, pleaded guilty to misprision of a felony, admitting she assisted Trevino in the concealment of the donations by falsifying election records. She will be sentenced July 23, 2014, by Chief U.S. District Judge Ricardo Hinojosa.
The overall investigation was conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Indictment Unsealed in Unauthorized Aliens Employment ConspiracyRead the Press Release
HOUSTON – Four Houston residents and one from Puerto Rico have been charged in a 13-count indictment involving a conspiracy to employ unauthorized aliens and encouraging and inducing undocumented aliens to reside in the country, announced United States Attorney Kenneth Magidson along with Special Agent in Charge of Homeland Security Investigations (HSI) Brian Moskowitz.
The indictment was returned under seal May 21, 2014, and unsealed in its entirety today as Ceasar Santiago Arroyo, 49, of Puerto Rico, surrendered to agents in Houston. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today. Also charged and previously arrested were Houston residents Mary Louise Flores, 43, Fernando Emmanuel Bustos, 31, Rudy Alexander Martinez, 33, and Israel Arquimides Martinez, 37.
They are all charged with conspiracy to and encouraging and inducing illegal aliens to reside in the U.S. as well as conspiracy to and unlawfully employing unauthorized aliens.
According to allegations in the indictment, Arroyo, Rudy Martinez and Israel Martinez were employees of a waste disposal company and worked at the company’s Afton Road location in Houston. Arroyo was the district operations manager, while Rudy Martinez and Israel Martinez were the commercial route manager and residential operations lead driver, respectively. Flores and Bustos were employed by a staffing company in Houston and worked as managers onsite at the waste disposal company’s Afton location, according to the indictment.
From on or around July 30, 2008, through on or around April 24, 2012, the five defendants allegedly conspired to hire and continue to employ aliens they knew were unauthorized work in the U.S. at the waste disposal company’s Afton location in Houston.
Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work in the country. However, according to allegations, they hired manual laborers with little or no regard to their legal status.
The defendants and their co-conspirators allegedly failed to take corrective measures to ensure the hired workers were authorized to work in the U.S. The indictment alleges that even after internal audits demonstrated the workers were, in fact, unauthorized to work in the country, the defendants continued to facilitate their continued employment. In some cases, the aliens themselves provided information indicating they were not eligible to work in the U.S.
According to the allegations, the defendants encouraged undocumented aliens to obtain false documentation, assigned false identities to undocumented aliens and, in some cases, provided them with employment documents related to their false identity. The individuals whose identities were assumed did not authorize or even know their identities were being used, according to the indictment. Those individuals were often former employees of the companies, or individuals who had applied for employment but were never hired. The indictment alleges information was stolen from documentation and records executed in connection with applications for employment. The defendants and their co-conspirators would allegedly enter information from the assumed identities of others, resulting in a paycheck for the undocumented alien under the other individual’s name.
According to the allegations, on or around Jan. 31, 2012, the defendants and their co-conspirators “fired” at least 10 helpers they knew to be unauthorized aliens purportedly because the aliens failed to supply documentation establishing they were legally present and authorized to work in the U.S. The indictment alleges that during their “termination,” the defendants encouraged them to assume the identity of U.S. citizens or individuals who had authorization to reside and legally work in the country. The defendants also allegedly informed undocumented aliens that they could come back to work if they got “good papers” belonging to other individuals. Following the “termination” of these undocumented aliens, the defendants and their co-conspirators assigned false identities to certain aliens and assisted said aliens in obtaining related identifiers to use for employment and payroll purposes, according to the charges. The defendants then allegedly “rehired” at least 10 aliens under their assumed identities.
If convicted of encouraging and inducing aliens to reside or conspiracy to do so, all face up to 10 years in federal prison. Thye further face another five years on any of the charges relating to the unlawful employment of unauthorized aliens. All charges also carry as possible punishment, a maximum fine of $250,000, upon conviction.
The investigation leading to the charges was conducted by HSI. Assistant United States Attorneys Casey N. MacDonald and Suzanne Elmilady are prosecuting the case.
The defendants are presumed innocent unless and until convicted through due process of lawCorporation Owner/CEO Charged with Federal Income Tax FraudRead the Press Release
HOUSTON – Robert Earl Carter has been arrested following the return of a four-count indictment alleging false statement on his personal tax returns, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal July 9, 2014, and unsealed today upon Carter’s arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today.
The indictment charges Carter, owner/CEO of Enterprise Advisory Services Inc., with willfully making materially false statements in his 2007, 2008, 2009 and 2010 personal federal income tax returns. According to the indictment, he allegedly under-reported the total income he had earned in each of those four years.
If convicted, Carter faces up to three years in federal prison and/or a $100,000 fine on each count.
The indictment was the result of an investigation conducted by Internal Revenue Service – Criminal Investigation and NASA - Office of Inspector General. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendant is presumed innocent unless and until convicted through due process of law.Jury Convicts Mission Man in Marijuana ConspiracyRead the Press Release
McALLEN, Texas – A federal jury in McAllen has convicted Rogelio Guerrero, 50, a U.S. citizen residing in Mission, on one count of conspiracy to possess with intent to distribute and possession with intent to distribute large amounts of marijuana, announced United States Attorney Kenneth Magidson. The jury returned its verdict late this morning following a three-day trial and less than four hours of deliberation.
During the trial, the government presented testimony that Guerrero and his associates utilized tractor-trailers to transport large quantities of marijuana from Mission to Houston. The jury heard that Guerrero’s drivers transported between 3,000-5,000 pounds of marijuana to Houston every few weeks. The government also presented evidence that Guerrero owned nearly 10,000 pounds of marijuana that was seized in 2011.
He was convicted of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and possession with intent to distribute more than 100 kilograms of marijuana.
U.S. District Judge Micaela Alvarez, who presided over the trial, has set sentencing for Sept. 25, 2014. At that time, Guerrero faces a mandatory minimum of 10 years and up to life imprisonment as well as a possible $10 million fine. He will remain in custody pending that hearing.
Guerrero’s conviction is a culmination of an Organized Crime Drug Enforcement Task Force Operation dubbed “White Line.” The six-year investigation, targeting Guerrero and other significant drug traffickers based in Mission, was conducted by Homeland Security Investigations, Drug Enforcement Administration, Hidalgo County Sheriff’s Office, Mission Police Department, U.S. Border Patrol, Texas Department of Public Safety, Internal Revenue Service – Criminal Investigation and the FBI.
To date, there have been approximately 20 other convictions in relation to the investigation.
Assistant United States Attorneys Jesse Salazar and Robert Wells are prosecuting.
Houston Man Convicted of Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Pierre Johnson aka “Too Good,” 39, of Houston, has entered a plea of guilty to trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson.
According to the plea agreement, from Aug. 1, 2013, through Nov. 1, 2013, Johnson forced at least three minor girls into prostitution by using force and intimidation. Johnson stipulated that he and his conspirators would photograph the girls and post online ads for prostitution. In those ads, he would advertise the girls for both one-girl and two-girl specials. Johnson kept all monies earned and also supplied the victims with marijuana. Johnson prostituted his victims in Texas, Louisiana and Colorado.
U.S. District Judge David Ellison accepted the guilty pleas today and set sentencing for Nov. 6, 2014. At that time, Johnson faces up to life imprisonment and a maximum fine of $250,000. He was ordered to remain in custody pending that hearing.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Julie N. Searle and Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Five Charged in Galveston with Distributing MethamphetamineRead the Press Release
GALVESTON, Texas - A four-count federal indictment has been unsealed in Galveston following the arrest of five area residents, announced United States Attorney Kenneth Magidson.
Abel Hinojosa, 34, Nelson Agapito Ventura, 37, Daniel Reyna, 33, Israel Sanchez, 20, were taken into custody today and made their initial appearances in federal court in Galveston before U.S. Magistrate Judge John R. Froeschner. A fifth defendant - Rodolfo Hernandez Perez, 26 - was previously in custody. A detention hearing is set for Tuesday, July 15, 2014.
The indictment was returned May 15, 2014, and unsealed upon the arrests of the La Marque residents today. All five are charged with one count of conspiracy to possess with the Intent to distribute more than 50 grams of methamphetamine as well as more than 500 grams of a mixture containing methamphetamine in the Galveston Division of the Southern District of Texas.
Perez and Hinojosa are further charged with one and three counts, respectfully, of possession with intent to distribute varying amounts of methamphetamine. The indictment also includes a notice of forfeiture.
Each face a minimum of 10 years and up to life in federal prison for the conspiracy. The possession with intent charges against Hinojosa and Perez also carry varying terms of either a minimum of five and up to 40 or another minimum of 10 and up to life for the underlying drug offenses.
The case is being investigation by the Drug Enforcement Administration, Homeland Security Investigations and Galveston Police Department. Assistant United States Attorneys Ted Imperato and Sharad Khandelwal are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendants are presumed innocent unless and until convicted through due process of law.