Southern District of Texas
Press releases recorded for this federal judicial district.
Former Houston Banker Convicted of Bank FraudRead the Press Release
HOUSTON – Carlos Lavin Ibarra, 33, of Houston, has entered a guilty plea to one count of bank fraud, announced United States Attorney Kenneth Magidson.
Ibarra worked at JP Morgan Chase Bank in Houston. He admitted that while employed there, he purchased or caused to be purchased $779,000 in cashier’s checks on accounts owned by a person from Nigeria. This person was deceased at the time of the defendant’s actions and Chase was not advised of his death. The defendant admitted he acted fraudulently and without authority.
The cashier’s checks were all made payable to “Ben Leasing.” Ibarra admitted he caused another individual to obtain a certificate of operation under the assumed name of Ben Leasing from the County Clerk of Harris County and open a bank account in that name. However, that person refused to accept the cashier’s checks and Ibarra then re-deposited the checks at Chase. He further caused eight more cashier’s checks to be purchased in various amounts, payable to different individuals with whom Ibarra had a relationship. Three of these checks were subsequently exchanged for identical Chase cashier’s checks. All of the Chase cashier’s checks were deposited into different bank accounts in Houston.
U.S. District Judge WHO, has set sentencing for Sept. 29, 2014. At that time, Ibarra faces a maximum penalty of 30 years imprisonment and a fine of up to $1 million. He was permitted to remain on bond pending that hearing.
As part of his plea, Ibarra has also agreed to a forfeiture of $779,000.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two more Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Steven Worthey, of San Antonio, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, pleaded guilty to the same charge on July 3, 2014.
According to court documents, Worthey, Burns 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. Worthey, Burns 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, Worthey and Burns 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.Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 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.
Mexican Pair Pleads Guilty to Debit/Credit Card Conspiracy in $35K McAllen Shopping SpreeRead the Press Release
McALLEN, Texas – Mary Carmen Vaquera-Garcia, 27, and Daniel Dominguez-Guardiola, 28, both of Mexico, have entered guilty pleas to conspiring to use debit/credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Vaquera and Dominguez admitted today that on Jan. 12, 2014, they went on a $35K+ shopping spree in McAllen using unauthorized Lone Star National Bank Visa card accounts. The pair intended to sell the fraudulently-purchased merchandise in Mexico for a profit. Vaquera further admitted to wiring money overseas to obtain stolen account information for the cards and to hiring Dominuez to help her use the cards.
The magnetic strips on the fake cards had been encoded with stolen, real account information for other people’s accounts that the defendants were not authorized to use. The names on the front of the fake cards were associated with false male and female identities that the defendants were using. Therefore, a retailer simply checking the name on an ID against the front of the card might not have been able to detect the fraud.
Vaquera-Garcia and Dominguez-Guardiola were arrested on Jan. 19, 2014, on several outstanding warrants as they attempted to re-enter the U.S. through the Anzalduas Port of Entry. A total of 96 counterfeit cards were found hidden in Dominguez’s waistband.
As part of their plea agreements, the defendants agreed to pay restitution and forfeiture in the amount of $35,422.21 and to forfeit several items that were seized from them on the day of their arrest, including hundreds of dollars in currency and gift cards.
Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty pleas, has set sentencing for Sept. 24, 2014. At that time, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum fine. They will remain in custody pending that hearing.
This case was investigated by the Secret Service with the assistance of the McAllen Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting.
Gun Store Owner Convicted of Firearms ViolationRead the Press Release
VICTORIA, Texas – Garrett Vincent Riedesel, 25, of Victoria, has entered a guilty plea to one count of possession of an unregistered firearm, announced United States Attorney Kenneth Magidson.
Riedesel, a federal firearms licensee, owned Garrett’s Gun Vault in Victoria at the time of his arrest. The store is now closed.
Riedesel admitted he was in possession of a Remington Model 870, 12-gauge shotgun which had a barrel length of more than seven inches and an overall length of nearly 15 inches. A check of the National Firearms Registration and Transfer Record (NFRTR) revealed that the firearm was not registered to Riedesel.
The investigation began after customers reported having trouble retrieving firearms that had been dropped off at Riedesel’s establishment for repair.
On March 13, 2014, a federal search warrant was executed at Garrett’s Gun Vault in Victoria. At that time, agents seized 117 firearms that were not properly logged into Riedesel’s acquisition and disposition books as required by federal law. Four of the weapons seized were required to be registered in the NFRTR, including the shotgun Riedesel admitted to possessing as part of his guilty plea today.
Senior U.S. District Judge John D. Rainey has set sentencing for Oct. 6, 2014. At that time, Riedesel faces up to 10 years in federal prison and a possible $250,000 maximum fine. He was ordered to remain in custody pending that hearing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant U.S. Attorney Patti Hubert Booth is prosecuting.
Local Tax Return Preparer ConvictedRead the Press Release
HOUSTON - Diane Caldwell Larry has entered a plea of guilty for falsifying client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
During her plea hearing today, Larry admitted that while operating a tax return preparation service under the name Paradise South Tax Services, she prepared 33 materially false client tax returns for tax years 2007 through 2010. Those returns generated excessive refunds and caused aggregate losses to the IRS totaling approximately $168,792. Larry acknowledged she had included in these client tax returns fraudulent “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds. When some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false and excessive itemized deductions and credits.
Specifically, Larry admitted she knowingly and willfully included a false $84,215 business loss deduction for a non-existent “side business” as well as false deductions for uniforms upkeep, toll bridge fees, job-related tools and employee business expenses totaling $10,644 in a client’s 2009 tax return. This tax return alone caused a loss to the U.S. Treasury of approximately $18,382.
The plea agreement requires Larry to make full restitution to the IRS for all of the fraudulent refunds.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea today, has set a sentencing date of Oct. 20, 2014, at which time Larry faces up to three years in prison and $250,000 fine. Larry has been permitted to remain on bond pending that hearing.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
Illegal Alien Convicted of Using Deceased Boy’s IdentityRead the Press Release
HOUSTON – Jesus Duenas-Barajas, 53, a Mexican National illegally residing in Houston, has entered a plea of guilty to submitting a false statement on a U.S. passport application and aggravated identity theft, announced United States Attorney Kenneth Magidson.
On or about Feb. 10, 2012, Duenas-Barajas completed a DS-11 U.S. Passport application at the Westfield Post Office in Houston, using the identity of a boy who had died in 1978. On that application, he represented he was that person and provided the deceased victim’s date of birth, Social Security number and birth certificate.
Evidence indicates Duenas-Barajas had been using the deceased boy’s identity since as early as 1986. During that time, he had also been able to obtain a driver’s license using the deceased boy’s identifiers.
U.S. District Judge Vanessa Gilmore, who accepted the plea, has set sentencing for Oct. 14, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine for the false statement conviction. For aggravated identity theft, he will also face a mandatory two-year-term of federal imprisonment which must be served consecutively to any other sentence imposed. He is expected to face deportation proceedings after he serves his sentence.
The investigation was conducted by the Department of State and Social Security Administration. Assistant U.S. Attorney Julie Searle is prosecuting.
Several Laredoans Get Massive Sentences in Multi-Million Dollar Methamphetamine ConspiracyRead the Press Release
LAREDO, Texas – A total of six Laredoans and three others have been sentenced for their roles in a conspiracy to transport more than 100 kilograms of methamphetamine in 2011, announced United States Attorney Kenneth Magidson. Silvia Esther Flores, 56, Lilia Esther Garza, 53, Shirley Flores, 32, Gabriel Delafuente, 33, Flavio Lozano-Torres, 42, and Gabriel Gonzalez, 34, all of Laredo, and Roel Lopez-Cisneros, 38, Simon Alvarez-Rebolledo, 36, and Liborio Requena-Morales, 48, all of Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty to conspiring to possess with the intent to distribute methamphetamine, cocaine and heroin.
Today, U.S. District Judge Diana Saldaña sentenced Silvia Flores to 327 months, while Garza, Shirley Flores and Delafuente were ordered to serve respective sentences of 168, 235 and 168 months in federal prison. Lozano-Torres will serve 294 months in federal prison. Lopez-Cisneros was ordered to serve a sentence of 198 months, while Alvarez-Rebolledo, Gonzalez and Requena-Morales were ordered to serve respective sentences of 121, 120 and 108 months of imprisonment. Lozano-Torres and Shirley Flores will also serve 10-year-terms of supervised release, while the others will serve five-year-terms following completion of their prison sentences. As non-U.S. citizens, Lopez-Cisneros, Alvarez-Rebolledo and Requena-Morales are expected to face deportation proceedings following their terms of federal imprisonment.
Silvia Flores coordinated the transportation of large drug loads from Nuevo Laredo into Laredo and onto Dallas as did Lozano-Torres and Lopez-Cisneros with the assistance of Alvarez-Rebolledo. Silvia Flores then transported drug proceeds back from Dallas into Mexico. She utilized Garza as a courier who brought the drugs from Mexico into the United States. Flores also sent her own daughter, Shirley Flores, along with her friend, Delafuente, to transport the drugs to Dallas.Requena-Morales admitted he transported one load of approximately 20 kilograms of methamphetamine from Mexico into the United States for the organization, while Gonzalez also attempted to transport a load from Laredo northbound through the IH-35 Checkpoint for the group. Upon detection at the checkpoint, Gonzalez fled in his vehicle until running into a fence and escaping on foot through the brush and left approximately 27 kilograms of the organization’s methamphetamine in the trunk of the vehicle. He was ultimately captured in Laredo during an enforcement action on April 20, 2012.
The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Nemesis led by the Drug Enforcement Administration with the assistance of the FBI and Homeland Security Investigations. Assistant United States Attorney James Hepburn is prosecuting.Mexican Man Sentenced for Alien Smuggling Operation Resulting in DeathRead the Press Release
HOUSTON - Heriberto Barajas-Coria, a Mexican citizen, has been ordered to prison for six years for conspiracy to transport and harbor aliens which resulted in the death of one, announced U.S. Attorney Kenneth Magidson. Barajas-Coria pleaded guilty Feb. 6, 2014.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the plea, handed Barajas-Coria a total sentence of 72 months in federal prison. As an illegal alien, Barajas-Coria is expected to face deportation proceedings following his release from prison.
On or about June 1, 2012, several undocumented aliens entered the U.S. from Mexico and were guided to a stash house in a trailer park in McAllen. Two days later, they were driven for approximately three hours where they exited the vehicles and were then guided through the brush for approximately five days.
After finally reaching a road, Barajas-Coria proceeded to drive them to Houston. After two hours of driving, a 40-year-old Mexican male died. Barajas-Coria told two other undocumented aliens to leave the body by the side of the road. The other aliens were taken to a stash house in Houston.
On or about June 11, 2012, Barajas-Coria contacted a relative of one of the undocumented aliens to demand smuggling fees. That relative contacted police who subsequently arranged for a meeting with Barajas-Coria to pay the fees. Barajas-Coria fled that meeting but was later arrested.
Barajas-Coria 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 agents of Homeland Security Investigations, Bee County Sheriff’s Office and the Nueces County Office of the Medical Examiner. Former Special Assistant U.S. Attorney (SAUSA) Dan Menes prosecuted the case. SAUSA Richard Bennett handled the sentencing today.
Mexican Man Pleads Guilty to Possessing 31 Counterfeit Credit and Bank CardsRead the Press Release
McALLEN, Texas – Alfredo Alejandro Alvarez-Mendicuti, 35, of Mexico, has entered a plea of guilty to possessing 31 counterfeit credit and bank cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Alvarez-Mendicuti admitted that on April 25, 2014, he possessed 31 fake credit cards and bank cards that he had hidden in his waistband area. The cards purported to be issued by American Express, Discover, Banorte, AFIRME, HSBC, Bancomer, Banco Del Bajio, Banamex and Santander. Officers found the cards after Alvarez-Mendicuti entered the U.S. at the Anzalduas Port of Entry.He admitted he had purchased the cards in Mexico, knowing that they were counterfeit and fake, so that he could use them to fraudulently purchase items in the U.S.
U.S. District Judge Micaela Alvarez, who accepted the plea today, has set sentencing for Sept. 18, 2014. At that time, he faces a possible sentence of up to 10 years in federal prison and a maximum $250,000 fine.
This case was investigated by the Secret Service. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
Leader Sentenced in Alien Smuggling Scheme to Steal Fees from Aliens and Their FamiliesRead the Press Release
McALLEN, Texas – Pedro Rayon-Perez, 28, has been ordered to prison following his conviction for harboring undocumented aliens, announced United States Attorney Kenneth Magidson. The Mexican national previously pleaded guilty as did three others – Mexican national Osiel Castillo, 46, and Roxanna Leal, 26, and Luis Aguilar-Hernandez, 42.
Today, U.S. District Judge Randy Crane, who accepted all the guilty pleas, handed Rayon-Perez a sentence of 96 months in federal prison. As an illegal alien, Rayon-Perez was further sentenced to 21 months for having been found in the United States following previous deportations. Those sentences will be served concurrently for a total sentence of 96 months in federal prison. On June 13, 2013, Judge Crane sentenced Leal to a term of 15 months. Castillo was ordered to serve a 10-month term in addition to a 36-month state prison sentence at his hearing on June 17, 2013. Aguilar-Hernandez is set for sentencing next month. Rayon-Perez, Aguilar-Hernandez and Castillo are expected to face deportation proceedings following their release from prison, while Leal will serve two years of supervised release following completion of her prison term.
The investigation revealed Rayon-Perez concocted a scheme to capture illegal aliens attempting to enter the U.S. and extort money from their families for safe passage further north. Once they had exhausted the extortion payments from families, Rayon-Perez and his co-conspirators planned to abandon the aliens in public places south of the checkpoint. Having victimized one group of smuggled aliens, the group seized five additional aliens on Nov. 12, 2011, as they crossed the river, including a pregnant woman and her husband. The 21-year-old woman was 8.5 months pregnant and had not seen her mother since her mother fled to the U.S. 20 years prior to financially support her family. The couple had intended to surprise her mother upon their arrival in the country.
Instead, Rayon-Perez and his co-conspirators exploited the young couple and three others by using their vulnerability to extort family members and intending to abandon them in the Rio Grande Valley once their scheme was complete. Rayon-Perez successfully defrauded the pregnant woman’s mother by stealing $4,800 – nearly all her savings. Rayon-Perez then double-crossed his co-conspirators by taking the money and abandoning the aliens in the custody of Luis Aguilar-Hernandez and Leal. When Aguilar-Hernandez demanded additional payment from the mother, she sought law enforcement assistance. The San Juan Police Department, assisted by the U.S. Marshals Service, conducted a tactical operation on Nov. 17, 2011, that freed the aliens from the stash house where Aguilar-Hernandez and Leal were harboring them.
In rendering his sentence today, Judge Crane emphasized the unusual nature of the scheme and the unique vulnerability of its victims. Judge Crane lauded law enforcement for its investigation of such aggravating circumstances that placed lives at risk and deprived immigrant families of their limited resources. The court found the sentence appropriate as this type of crime is beyond the “heartland” of typical smuggling cases and represents a unique threat to the community.
Rayon-Perez, Aguilar-Hernandez and Castillo have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Leal was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.
The case was investigated by Homeland Security Investigations with assistance from the San Juan Police Department. Assistant United States Attorneys Grady J. Leupold and Leo J. Leo III are prosecuting the case.
Another Houston Man Sentenced in Area Armored Car RobberiesRead the Press Release
HOUSTON – Allen Moore Jr., 47, of Dallas, has been ordered to federal prison for 20 years following his convictions for discharging his firearm during an attempted robbery of an armored car operating in and around Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Gray H. Miller handed Moore a sentence of 120 months for interference with commerce by robbery and a consecutive 120 months for discharging a firearm during the crime. Following completion of his 20-year sentence, Moore will be on supervised release for five years.
Four others also charged in the case - Walter Keitric Freeman, 25, Chad Eric Haywood, 25, and Corinthians Lachell Phillips, 29, all of Houston, and Hendrick Dwayne Lynn, 31, of Houston – all previously also entered guilty pleas and were sentenced for their roles in the crimes. Haywood was convicted of two counts of interference with commerce by robbery and sentenced to 60 months in addition to a consecutive term of 120 months for discharging a firearm during a crime of violence for a total of 180 months. Freeman was sentenced to 57 months for his conviction of conspiracy to interfere with commerce by robbery as well as a consecutive sentence of 120 months for discharging of a firearm during the commission of a crime of violence for a total of 177 months. Phillips was convicted of the conspiracy charge and sentenced to 97 months. Lynn was convicted of the conspiracy charge and the attempted robbery and robbery of the two armored cars and sentenced 60 months.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard, who has since recovered, had been filling an ATM machine, but it was already locked and, therefore, no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Jury Convicts Houston Man for Robbery of Postal VehicleRead the Press Release
HOUSTON – Kenton Deon Harrell, 41, has been convicted of conspiracy to interfere with commerce by robbery, announced U.S. Attorney Kenneth Magidson. A federal jury convicted the Houston resident this morning following four days of trial and approximately three hours of deliberation.
The jury heard that on or about Feb. 21, 2013, Harrell met with Charles Ray Blake and Kenneth Shane Howard to plan the robbery of a contract postal vehicle. The three men had received information that the vehicle contained more than $2 million in cash and precious metals. Evidence at trial showed that the three men had been provided with a description of the vehicle, the route it would be taking and the time the vehicle would leave the post office in downtown Houston.
According to testimony, the co-conspirators acted on that information and stopped the vehicle as planned as it entered onto I-10 from downtown Houston. They forcibly removed the driver at gun point and drove the vehicle to a location where they removed jewelry worth approximately $240,000.
Blake, 41, Howard, 34, and Malcolm Derrail Williams, 32, all of Houston, previously pleaded guilty for their respective roles in the scheme and are pending sentencing, Blake will be sentenced Sept. 9, 2014, while Howard, Williams and Harrell are set for Oct. 10, 2014. Blake was permitted to remain on bond, while Howard and Williams were ordered to remain in custody. Previously released on bond, Harrell was taken into custody where he will remain pending sentencing. All face up to 20 years in federal prison and a possible $250,000 fine.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorneys Richard D. Hanes and Sharad Khandelwal prosecuted the case.
Houston Man Sentenced for Threatening to Bomb SynagogueRead the Press Release
HOUSTON - Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.
On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
The FBI investigated the case with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ruben Perez and Joe Magliolo and Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division are prosecuting in cooperation with the Harris County District Attorney’s Office.
Engineer Sentenced for Traveling to Laredo to Engage in Illicit Sexual ConductRead the Press Release
LAREDO, Texas – Douglas Alan Butler, 55, a resident of Battle Creek, Mich., has been sentenced for traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, announced United States Attorney Kenneth Magidson. Butler pleaded guilty Sept. 9, 2013.
Today, Senior U.S. District Judge George P. Kazen handed Butler a sentence of 30 months in federal prison to be immediately followed by five years of supervised release. Butler will also be required to register as a sex offender.
According to the record, Butler started communicating with an undercover officer posing as a 15-year-old female by way of a local chat room. Communication started on March 28, 2013, and lasted for approximately a month until the date of his arrest, April 23, 2013.
During the chats, Butler was informed the girl was 15 years of age, but he still steered the communication to sexually illicit conversation and repeatedly asked the undercover investigator about sex. Butler also engaged in extensive conversations about what kind of sexual activities they would engage in when they finally met. Particularly, Butler indicated that he “could teach her so many things.” Butler advised that he had plans of traveling to Laredo and expressed a desire to meet her.
Butler had made arrangements to meet the deputy whom he believed to be the minor female at a local city park and promised to bring a sex toy during that encounter. He was arrested upon arrival at that park, at which time a pink vibrator was discovered in his car. A subsequent search of his hotel also resulted in the discovery of several condoms, Viagra pills and other paraphernalia of a sexual nature.
Butler admitted he had engaged in online chats of sexual nature with several young girls from Laredo and that he had met and engaged in sex with several women he had met in Laredo.
He 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 Homeland Security Investigations and Webb County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Sonah Lee and Suntrease Williams.
Two Set to Appear in Federal Court on Charges of Murder on Federal LandRead the Press Release
HOUSTON – Cristian Alexander Zamora, 22, and Ricardo Leonel Campos-Lara, 19, have been indicted on charges of committing murder in the Sam Houston National Forest, a designated federal land, announced United States Attorney Kenneth Magidson.
Zamora, aka Christian Zamora, Alexander, Alex or Pollo; and Campos-Lara, aka La Muerte, are set to make their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Mary Milloy. At that time, the U.S. expects to request they be ordered into federal custody pending further criminal proceedings.
The indictment, returned June 18, 2014, alleges they committed the murder of a 16-year-old male victim while in the Sam Houston National Forest. On Sept. 22, 2013, Zamora and Campos-Lara, both of El Salvador, allegedly aided and abetted each other in the murder by striking the victim with a bat and a machete.
If convicted of murder within the territorial jurisdiction of the U.S., both will face up to life imprisonment or the death penalty.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney Mark E. Donnelly.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is considered innocent unless and until convicted through due process of law.Four Ordered to Prison in Firearms Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Four people residing in Houston have been ordered to prison for their roles in a conspiracy to traffic dozens of AK-47 variant rifles from the Houston area to Mexico, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Mexican nationals Abel Lopez, 35, and Arturo Garcia, 31; and Roberto Santana Mears, 22, and Martha Gonzales, 41, all pleaded guilty at varying times earlier this year as did Javier Resendez, 29, Angel Aquino-Pineda, 28, and Mary Bel Deanda, 39. All reside in Houston.
Today, U.S. District Judge Nelva Gonzales Ramos handed Lopez, who was also convicted of being an illegal alien in possession of a firearm, to a total of 180 months in federal prison, while Mears, Garcia and Gonzalez were ordered to serve respective terms of 36, 46 and 36 months. In handing down the sentence, Judge Ramos admonished Lopez that he was just fueling the violence in his very own country. Earlier this month, Aquino-Pineda was ordered to serve 100 months in federal prison. Resendez and Bel Deanda will be sentenced July 18, 2014.
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 are prosecuting the case.
Triple Bank Robber Pleads GuiltyRead the Press Release
CORPUS CHRISTI, Texas - Robert Perez Jr., 35, of Corpus Christi, has pleaded guilty to charges stemming from the robbery of three local banks, announced United States Attorney Kenneth Magidson.
At the hearing today, the court heard about a series of robberies Perez committed over a five-month period. The first robbery occurred on Jan. 8, 2014, at the Kleberg Bank located in Corpus Christi, during which he brandished a can of mace and threatened employees by claiming to have a gun. He fled on a bicycle which was later recovered by officers who learned it had been purchased at a local pawn shop with a credit card belonging to Perez. Surveillance also showed Perez purchasing the bicycle.
The next robbery occurred on April 14, 2014, at the IBC Bank in Corpus Christi. There, Perez pointed a can of mace at employees and again claimed he had a gun. After this robbery, a witness was able to provide information about the license plate of the vehicle in which he fled, which was also later linked to Perez.
During the third robbery, at another IBC Bank location in Corpus Christi, Perez also claimed to have a gun. Perez was arrested May 9, 2014, following a search at his residence. In his attic, agents discovered cash which included money traced to the May 5, 2014, robbery.
Perez pleaded guilty before U.S. Magistrate Judge B. Janice Ellington today and will later be sentenced by U.S. District Judge Nelva Gonzales Ramos. At that time, Perez faces up to 20 years in federal prison as well as a possible $250,000 fine. He will remain in custody pending that hearing.
The charges stem from an investigation by Corpus Christi Police Department and the FBI. This case is being prosecuted by Assistant U.S. Attorney Hugo R. Martinez.
Jacaman SentencedRead the Press Release
LAREDO,Texas – Robert Jacaman Sr., 60, former owner of Jacaman Guns and Ammo, has received his federal sentence for conspiring to smuggle firearm ammunition and magazines to Mexico, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio and Special Agent in Charge Robert Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Jacaman pleaded guilty Jan. 28, 2014. Now a convicted felon, he surrendered his federal firearms license, is no longer a firearms dealer and is prohibited from possessing firearms, ammunition and destructive devices.
“Today’s sentence is a direct result of the dedicated efforts of HSI, the U.S. Attorney's Office and our law enforcement partners in creating a safer community for the citizens of Laredo and the surrounding area,” said Ayala. “Seizing illicit weapons and proceeds, and arresting those who attempt to illegally use and smuggle weaponry is a priority for HSI.”
Today, visiting U.S. District Judge Keith P. Ellison handed Jacaman a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay a $4,000 fine. At the hearing, Jacaman testified that he is currently blind and in constant physical pain due to a motorcycle injury in 1984 and requires around-the-clock attention. In handing down the sentence, Judge Ellison noted Jacaman had those ailments when he committed the crime and, although sympathetic to his ailments, believed the Bureau of Prisons could accommodate someone with his medical conditions.
“Enforcing the federal firearms laws through a cooperative effort with ATF Industry Operations, as well as Laredo Police Department and Border Patrol is paramount to our Frontline Strategy of utilizing our resources to have the greatest impact,” said Elder. “While 99% of federal firearms licensees abide by ATF regulations, it is paramount that we remain vigilant against the outlier who markets firearms illegally."
Jacaman had admitted to unlawfully conspiring with others to fraudulently and knowingly export .223 caliber and 7.62 mm ammunition and high capacity rifle magazines designed to fit AR 15-type and AK47-type firearms, contrary to the Arms Export Control Act. Several violations Jacaman committed as part of the conspiracy were discussed with federal U.S. Magistrate Judge Diana Song Quiroga, who presided over the guilty plea in January.
Jacaman admitted being in direct contact with Oswaldo Roberto Borrego-Ramos, 32, aka “Baldo,” of Nuevo Laredo, Tamaulipas, Mexico, during the conspiracy, who negotiated the purchase and delivery of the ammunition and firearm magazines with Jacaman. Borrego-Ramos would then send couriers to deliver cash to Jacaman and others to pick up the items to smuggle them into Mexico. In one instance, Jacaman even advised Borrego-Ramos of an outstanding balance which he had not paid for prior sales.
Another co-defendant, Alejandro Rivera-Ruiz, 39, of Laredo, admitted delivering more than $100,000 to Jacaman on behalf of Borrego-Ramos. According to court documents, Borrego-Ramos told agents he was working for “Los Zetas” Mexican criminal organization, supplying them with firearms, ammunition and firearm accessories such as firearm magazines from various sources, including Jacaman.
On March 14, 2012, authorities arrested Mexican nationals Abraham Garcia-Perguero, 41, and Maria Isabel Rodriguez-Olivio 38, who had just received 27,000 rounds of .223 caliber ammunition from Jacaman’s gun store. They admitted they were on their way to deliver the ammunition to an awaiting Mexican truck driver who would smuggle the ammunition to Mexico. They admitted working for Rivera-Ruiz and Borrego-Ramos.
Borrego-Ramos, Rivera-Ruiz and the two Mexican Nationals have all pleaded guilty and are serving their sentences in federal prison for their respective crimes.
Also sentenced today were Atanacio “None” Gonzalez-Torres, 45, Jose Luis Estrada, 25, who had all also pleaded guilty for their roles in this conspiracy. Jacaman’s wife, Veronica Jacaman, 43, who was convicted of the misdemeanor offense of failure to record a firearm transaction by a firearms dealer, will serve six months and pay a $1,000 fine, while Gonzalez-Torres and Estrada were ordered to serve 28 and 21 months, respectively for their conviction of smuggling goods from the U.S.
The ammunition and magazines referenced in this indictment were intercepted before being delivered to Mexico.
Jacaman, his wife and Estrada were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by Homeland Security Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting this case.
Illegal Alien Gets Maximum Sentence for Distribution of Child PornographyRead the Press Release
HOUSTON – Carmen Hernandez has been sentenced to the statutory maximum of 20 years for distributing child pornography, announced U.S. Attorney Kenneth Magidson. Hernandez, 37, pleaded guilty to the charge March 31, 2014.
Today, U.S. District Judge David Hittner handed Hernandez the maximum 240 months in in federal prison to be followed by life on supervised release. He must also register as a sex offender. Due to his illegal status in the country, he is expected to face deportation proceedings following his release from prison.
Hernandez utilized peer-to-peer software to obtain and distribute child pornography images and videos via the Internet. A savvy computer user, he had provided technological assistance to his neighbor and used their wi-fi to facilitate his criminal behavior. This unsuspecting family was then subject of a search warrant executed at the location which authorities believed was traceable to Hernandez. The investigation revealed Hernandez had access to their Internet service provider. He later admitted to the illegal activity.
Forensic analysis resulted in the discovery of child pornography images/videos on computer media belonging to Hernandez. These images included those involving bondage and children under 12 being penetrated by adults and foreign objects.
The charges were the result of an investigation conducted by members of the Houston Area Cyber Crimes Task Force of the FBI which focuses its attention on, among other things, investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. 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."
Edcouch Woman Charged with Embezzling More Than $90K from Halfway HouseRead the Press Release
McALLEN, Texas – Ofelia Alvarado Vallejo, 44, of Edcouch, has made an initial appearance on charges she embezzled more than $90,000 from the Mid Valley House Residential Reentry Center while working there, announced U.S. Attorney Kenneth Magidson.
Vallejo appeared before U.S. Magistrate Judge Peter E. Ormsby this morning to hear the charges outlined in a criminal information filed June 9, 2014. Judge Ormsby ordered Vallejo released upon posting a $30,000 bond.
The criminal information alleges Vallejo embezzled $90,519.70 from March 2012 through February 2013 from the Mid Valley House Residential Reentry Center.
During the one-year period beginning on March 1, 2012, Mid Valley received more than $10,000 in federal funding.
If convicted, Vallejo could face up to 10 years in federal prison and a fine of up to $250,000.
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 the case.
A defendant is presumed innocent unless convicted through due process of law.Galveston Resident Pleads Guilty to Stealing Deceased Benefits for More Than A DecadeRead the Press Release
GALVESTON, Texas – John Stephen Davis, 64, of Galveston, has pleaded guilty to embezzlement and theft of federal government benefits, announced United States Attorney Kenneth Magidson.
Davis admitted during his plea that he obtained a power of attorney over the bank account of an individual on March 4, 2003, just weeks before her death on April 18, 2003. He further admitted he did not notify the government about the death so funds would continue to be deposited into that account. He also did not notify the bank about the woman's death in order to retain his access to the account. Davis admitted he used the benefit payments for his own personal needs and expenses.
“Davis took advantage of the trust placed in him by the deceased in order to defraud the Government," said Inspector General Patrick E. McFarland, U.S. Office of Personnel Management - Office of the Inspector General (OPM - OIG). "Davis stole from hardworking American taxpayers when he committed theft against these two federal programs, and he is now paying the price.”
As part of his plea agreement, Davis was ordered to forfeit $385,632.15, the amount he illegally received as part of the scheme.
Davis entered his guilty plea today before U.S. Magistrate Judge John R. Froeschner. If the plea is accepted by U.S. Circuit Judge Greg Costa, sitting in designation, he will be sentenced Sept. 9, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges in this case was conducted by the Social Security Administration – Office of Inspector General (OIG ) and Office of Personnel Management – OIG. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Alleged Leader of Sex Trafficking Ring Lands in U.S. After Extradition from MexicoRead the Press Release
HOUSTON - Gerardo Salazar has landed in the U.S. to face charges related to the smuggling of minor girls and young women from Mexico and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Carlos J. Barron of the FBI.
“The formal arrest following the successful extradition of the defendant today represents our commitment to bring those accused of human trafficking to the bar of justice,” said Magidson.
“The victims in this case were young Mexican women and girls alleged to have been beaten and forced into prostitution inside Houston area cantinas,” said Barron. “Let Salazar’s return provide assurance to these victims and others that those who engage in the egregious crimes of human trafficking will be pursued around the globe and brought to justice.”
Salazar, 47, of Mexico City, Mexico, had been a fugitive since 2005. He was recently arrested in Mexico and arrived in Houston this afternoon. He is expected to make an initial appearance before U.S. Magistrate Judge Mary Milloy tomorrow.
Gerardo Salazar aka “El Gallo" was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar.
The indictment alleged “El Gallo” was the leader of the group. He is charged with conspiracy, sex trafficking, transportation of minor for immoral purposes, alien harboring for prostitution and transportation of illegal aliens. If convicted, he faces up to life in federal prison and a maximum $250,000 fine.
All the other co-defendants have entered guilty pleas in the case and were sentenced to federal prison.
The investigation was conducted by the FBI, Harris County Sheriff's Office, Homeland Security Investigations, Texas Alcoholic Beverage Commission and others as part of the Human Trafficking Rescue Alliance. The Justice Department's Office of International Affairs provided assistance with the extradition.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.16 Charged in Alleged Large Scale Marijuana Trafficking OrganizationRead the Press Release
HOUSTON – A multi-count federal indictment has been unsealed following the arrest of 11 individuals throughout south Texas and the Houston areas, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI), and Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA).
The indictment was returned under seal May 29, 2014, and unsealed upon each arrest yesterday. Those taken into custody are expected to make initial appearances before U.S. magistrate judges in Houston or McAllen today.
“These arrests demonstrate the value of multi-agency collaboration, which is essential to our ability to disrupt and dismantle drug trafficking organizations,” said Arabit. “DEA, HSI and the numerous state and local agencies that worked on this investigation underscore the commitment that enabled us to dismantle this network charged with the distribution of marijuana and other illicit drugs from McAllen to Houston and the transportation of bulk cash from Houston to south Texas.”
The joint DEA/HSI - led investigation into the organization began in March 2011. Since that time, agents have seized approximately 7500 pounds of marijuana and thousands of dollars.
During the course of the arrests, law enforcement also discovered and seized approximately 400 pounds of marijuana and thousands of dollars in U.S. currency as well as several utility trailers, tractors, vehicles and firearms.
“Our collective efforts today under ‘Operation Ranch Hand’ have struck a blow to what we believe is a significant drug trafficking organization operating in south Texas,” said Moskowitz. “Those who bet the ranch on being able to traffic tons of marijuana from the border up through our cities are now feeling the long arm of the law upon them.”
Those taken into custody include Daniel Villarreal Sr., 55, of Conroe; Jose Villarreal aka Mikey, 38, Ishmael Villarreal, 56, Guadalupe Arechiga-Gutierrez aka Lupe, 36, Felipe Licea, 35, and Danny Sandoval aka Capo, 29, all of Sullivan City; Jaime Garcia aka YuYu, 49, of Palmview; Severiano Homero Garza Jr. aka Cuerdas or Borracho, 55, of Rio Grande City; Osvaldo Martinez-Trevino, 42, and Joel Blanco, 31, both of Houston; and Gerardo Flores, 37, of Mission.
Also charged but not as yet in custody are Gilberto Mena-Garcia, aka Yune, 60, and Daniel Garza, 33, both of Mexico; David Isaac Garcia, 43, of Pharr; Erbey Siller aka BiBi, 35, of Mission; and Gerardo Mena, 32, of Pasadena.
Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332), DEA at 1-713-693-3000 or HSI at 1-866-347-2423.
All have been charged with conspiracy with the intent to distribute more than 1000 kilograms of Marijuana. If convicted, they each face a minimum of 10 years and up to life in prison as well as a possible $4 million fine. With the exception of Ishmael Villarreal, Flores and Licea, all are also charged with one or more counts of possession with intent to distribute more than 100 kilograms of marijuana for which they face a mandatory minimum of five and up to 40 years in federal prison and another possible $2 million on each count. Martinez-Trevino is further charged with two counts of distribution of marijuana and faces up to 20 years and a potential $1 million fine, while Ishmael Villarreal and Martinez-Trevino further face a maximum of 20 years upon conviction of conspiracy to launder drug proceeds.
The indictment also includes a notice of forfeiture of 10 properties, including a ranch in Conroe, as allegedly used in the facilitation of drug smuggling or acquired with drug proceeds. The United States is also seeking a money judgment in the amount of $4 million.
The investigation was led by both HSI and DEA as part of the High Intensity Drug Trafficking Area Task Force in Houston and McAllen with the assistance of sheriff's offices in Montgomery, Harris and Hidalgo Counties, Texas Department of Public Safety, Border Patrol, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas National Guard, as well as police departments in Houston, Pasadena, Palmview, Sullivan City, McAllen, Weslaco, San Juan, Pharr, Mission and Rio Grande City. Assistant U.S. Attorney Bertram Isaacs is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Repeat Bank Robber Handed Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – Joseph C. M. Krist, 43, of San Antonio, has been ordered to prison for 30 years for bank robbery and using a firearm during the commission of a crime of violence, announced United States Attorney Kenneth Magidson. Krist was convicted by a Corpus Christi federal jury Dec. 12, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos, who presided over the trial, handed Krist a sentence of 240 months for the bank robbery and a consecutive sentence of 120 months for the firearm charge, resulting in a total 360-month federal prison sentence. In handing down the sentence, Judge Ramos noted the need to protect the public. Krist will also be required to serve a term of five years of supervised release following completion of the prison term.
Joseph C. M. Krist was found to have committed the bank robbery of the IBC Bank on corner of Everhart and Burney in Corpus Christi on Jan. 13, 2013. He entered the bank wearing a grey hoodie and green shirt sleeve covering the lower portion of his face while brandishing a .40 caliber pistol at employees.
Evidence demonstrated that Krist was a prior convicted bank robber both in state and federal court. At the time of the IBC bank robbery, he was wanted by the authorities for violations of his state parole and federal supervised release.
Authorities located him at a campground in Uvalde three days after the robbery. At the time of his arrest, Krist was found in possession of a large amount of cash and a .40 caliber handgun as well as the grey hoodie and a green t-shirt missing a single shirt sleeve.
Krist had initially admitted to the robbery. At trial, however, he contended he was not present at the robbery, but he refused to identify the actual robber. The jury deliberated for approximately four hours before finding him guilty as charged.
Krist 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 FBI with the assistance of the U.S. Marshals Service and Corpus Christi Police Department and is being prosecuted by Assistant United States Attorney Lance Duke.
San Benito Man Sentenced for Role in Purchasing FirearmsRead the Press Release
BROWNSVILLE, Texas - Danny Cantu, 24,has been sentenced to 72 months for his role in purchasing firearms by making false statements, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cantu pleaded guilty in July 2013.
The evidence proved Cantu had recruited nine others to purchase a total of 30 firearms by making false statements on ATF Form 4473. Those individuals claimed they were the actual buyer of the firearms when in truth and in fact they were acquiring the firearms on behalf of Cantu.
Cantu’s sentence today included upward adjustments or increases in his calculated sentencing guideline range because he engaged in trafficking of firearms by acquiring the firearms for individuals in Mexico, because he was an organizer of the criminal activity and because the offense involved more than 25 weapons.
The nine individuals Cantu recruited have all pleaded guilty and been sentenced to varying terms of probation or federal imprisonment.
ATF investigated. Assistant U.S. Attorney Angel Castro is prosecuting.
Tax Preparation Business Owner Convicted of Tax FraudRead the Press Release
HOUSTON – Charles Lee Harrison, the owner of a tax preparation business, has entered a guilty plea to willfully aiding and assisting in the preparation and presentation of a false tax return, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).
According to the plea agreement filed in the record of the case, Harrison was the owner of Harrison and Harrison, a tax preparation business with offices in Houston and Navasota.
Today, he admitted he placed false items on a client’s income tax return that caused a loss of more than $9,000. However, as part of his plea, Harrison stipulated that the relevant conduct for purposes of sentencing is approximately $396,057, which includes tax loss on other returns he prepared for others as well as his own.
U.S. District Judge Lynn N. Hughes, who accepted the plea today, has set sentencing for Sept. 15, 2014. At that time, Harrison faces up to three years imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Houston Store Owner Convicted of Identity Theft and Multiple Counts of Wire FraudRead the Press Release
HOUSTON – Austyn Enahoro Afenkhena, 53, of Houston, has entered a plea of guilty to eleven counts of wire fraud and four counts of aggravated identity theft, announced United States Attorney Kenneth Magidson.
Beginning in at least January 2008, and continuing through June 2013, Afenkhena obtained credit cards that were created from stolen identities, according to the information presented in court today. He would then run the cards through his store front, Phase 2 Auto Repair on Harwin Drive, in order to obtain cash.
To facilitate the scheme, Afenkhena also created fake merchant accounts under the names of Phase 2 Auto Inc., Phase 2 Automotive, ENA Auto Repair and ENA Automotive, so that he could obtain multiple credit card machines on which to run the fraudulent cards. Afenkhena often created false documentation such as invoices and receipts whenever necessary to further the scheme. He would use these documents to falsely represent to multiple banking institutions that transactions occurred at his store.
Afenkhena fraudulently received at least $350,000 as a result of his scheme.
U.S. District Judge David Hittner, who accepted the plea, has set sentencing for Sept. 11, 2014. At that time he faces up to 30 years in federal prison and a possible $1 million fine for each count of wire fraud. He also faces a mandatory two-year-term for aggravated identity theft, which must be served consecutively to any other sentence imposed.
The investigation was conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 24-year-old Houston man will be spending the next nine years in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Justin Devon Hayes entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Demontray Ward, 22, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Hayes a sentence of 24 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes will also serve five years of supervised release following completion of his prison term.Ward was sentenced in March 2014 to a total of 189 months in prison.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
Galveston Resident Charged with Stealing Deceased Benefits for More A DecadeRead the Press Release
GALVESTON, Texas – John Stephen Davis, 64, of Galveston, has been charged with theft of nearly $400,000 in federal government benefits from the Social Security Administration (SSA) and the Office of Personnel Management (OPM), announced United States Attorney Kenneth Magidson.
The criminal information was filed in federal court this morning. Davis is expected to make an initial appearance before a U.S. magistrate judge in Galveston later this week.
For more than a decade, Davis allegedly stole the Social Security and retirement benefits of an individual who died in 2003. According to the allegations, Davis had a power of attorney over the individual’s bank account and failed to notify the government of the death in order to continue receiving government benefits.
Davis fraudulently received $385,632.15 as a result of the scheme, according to the criminal information.
If convicted, he faces up to 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by SSA – Office of Inspector General (OIG) and OPM – OIG. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Huntsville Tax Return Preparer Sentenced for Fraudulent Refund SchemeRead the Press Release
HOUSTON – Cedric Keith Oliphant has been ordered to prison following his conviction related to the preparation of false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Oliphant pleaded guilty in August 2013.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Oliphant a 33-month sentence. He was further ordered to pay a restitution of $325,852 and will also be required to serve one year of supervised release following completion of the prison term.
Oliphant owned and operated Oliphant Tax Service on Sam Houston Avenue in Huntsville until 2009. Court documents show that Oliphant had included false deductions in at least 69 tax returns without his clients’ knowledge or consent, which fraudulently increased their refunds by approximately $325,000 for tax years 2006 through 2008. The most egregious fraudulent refund was obtained in a 2007 tax return that claimed false deductions for medical, charitable and unreimbursed business expenses totaling almost $65,000. This tax return alone caused an estimated loss to the U.S. Treasury of $11,261.In handing down the sentence today, Judge Harmon noted that Oliphant had prepared hundreds more tax returns with deductions similar to those described in the plea agreement indicating that actual losses to the National Treasury could be as much as $1 million.
Oliphant had been previously released on bond. However, that bond was revoked when it was determined he violated the conditions of his release by continuing to prepare tax returns after conviction. At that bond hearing on April 10, 2014, evidence demonstrated Oliphant had prepared and electronically filed at least 463 client tax returns during the 2014 filing season.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 these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.Former Bank Employee Sentenced to Federal Prison for Bank FraudRead the Press Release
McALLEN, Texas - A former bank officer with Texas State Bank has been ordered to federal prison for defrauding her former employer, announced United States Attorney Kenneth Magidson. Sondra Tredaway, 65, of Mission, was the former manager of the Texas State Bank branch located in McAllen. She pleaded guilty to one count of bank fraud on June 7, 2011.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Tredaway a sentence of 41 months in federal prison and further ordered she pay restitution to Texas State Bank in the amount of $4,496,455.83. The prison term will be immediately followed by a two-year-term of supervised release.
Tredaway had admitted she defrauded Texas State Bank, using her position as branch manager to defraud the bank of approximately $2.4 million. She used the names and personal information belonging to several individuals, without their permission, to create more than 58 fictitious loans beginning in 1998 through 2010. Tredaway further admitted she used the loan proceeds for her own benefit. The fraud was discovered when BBVA Compass Bank purchased Texas State Bank and began reviewing their loan records.
After handing down the sentence today, Judge Hinojosa permitted Tredway to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the FBI. Assistant United States Attorney Robert Wells Jr. prosecuted the case.Methamphetamine Deals Lands Laredoan in Federal PrisonRead the Press Release
LAREDO, Texas - Carlos Mercado, 39, has been ordered to prison following his conviction for transportation with intent to distribute 2.7 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury convicted the Laredo resident on April 8, 2104, following a two-day trial.
Today, Senior U.S. District Judge George Kazen handed Mercado a total sentence of 160 months in federal prison followed by a five-year-term of supervised release. At the hearing, Judge Kazen admonished the defendant that the people who suffer the most from these lengthy prison sentences are the defendants’ families.During trial, the jury heard testimony that on April 11, 2012, Mercado left his South Laredo home and traveled to a Wal-Mart parking lot located on 2320 Bob Bullock Loop at Clark Boulevard where he met with an undercover agent to arrange for the transportation of 2.7 kilograms of methamphetamine to Dallas. Mercado handed the undercover agent a child’s backpack containing the methamphetamine, then followed him to a car wash where the agent concealed the drugs in a hidden compartment. Mercado followed the undercover agent up Interstate Highway 35 until making a U-turn one mile before the IH-35 Checkpoint.
Mercado 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 Drug Enforcement Administration. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Tax Preparer Pleads Guilty to Stealing More Than $228,000Read the Press Release
LAREDO, Texas – Michelle A. Morin has entered a plea of guilty to aiding and assisting in the preparation of false and fraudulent income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (IRS-CI). Morin owned and operated Discount Tax Service, a Laredo-based tax preparation business, and has admitted to causing more than $228,000 in tax loss to the government.
Between tax years 2007 - 2010, Morin aided and assisted in the preparation of fraudulent returns by willfully placing false items on tax returns she prepared for clients knowing they were not entitled to claim them. Such claims included false Schedule A itemized deductions, false Schedule C business losses and false Form 5695 residential energy credits in addition to gifts to charity, job expenses and miscellaneous deductions. Morin also, in certain instances, improperly directed portions of taxpayer tax refunds into her personal bank account.
As part of her plea today, Morin admitted fraudulently claiming a false Schedule C loss in the amount of $83,184.00 for a non-existent online business on a on a taxpayer’s 2009 tax return. Morin also fraudulently reported $2,000 in residential energy credits that she knew the taxpayer was not entitled to claim. Subsequently, Morin improperly directed $2,000 of the false refund to her personal account.
U.S. Magistrate Judge Scott Hacker presided over the plea today. Sentencing will be set at a later date before U.S. District Judge George Kazen. At that time, Morin faces up to three years in federal prison and a possible $250,000 fine.
She was permitted to remain on bond pending that hearing.
This case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Sanjeev Bhasker.
South Laredo Trafficking Group IndictedRead the Press Release
LAREDO, Texas – A total of 24 alleged members of a cocaine, crack and marijuana trafficking group have been arrested and charged with multiple violations of federal law, announced United States Attorney Kenneth Magidson along with Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA). A 25th defendant was also taken into custody and charged by criminal complaint. The defendants are all residents of Laredo.
The indictment was returned under seal April 29, 2014, and unsealed upon the arrest of each defendant today. They are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga tomorrow.
According to the indictment, the drug trafficking organization was allegedly responsible for distributing cocaine, crack and marijuana throughout the Laredo area, maintaining a drug premises and utilizing minors to distribute the narcotics. The indictment alleges the conspiracy spanned from January 2012 through April 2014.
“DEA and our federal, state and local law enforcement partners are working together to have a positive impact at the local level,” said Arabit. “Together, we are taking these drug dealers off the streets and depriving them of the opportunity to further engage in criminal activity which has adversely affected the quality of life in this region. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer.”
Rafael Melendez aka “Chon,” 18, was charged in the criminal complaint with possession with intent to distribute cocaine.
Those charged in the indictment as part of the conspiracy and taken into custody today include:
Adan Melendez aka “12,” 38
Gerardo Melendez aka “Jerry,” 31
Rafael Andres Melendez aka “Lito,” 42
Mario Alberto Melendez, 34
Mario Alberto Gutierrez aka “Chito,” 38
Roberto Daniel Perez aka “Danny,” 36
Adan Melendez Jr. aka “Vivi,” 20
Jesus Rosendo Garcia-Melendez aka “Goldy,” 21
Juan Jose Melendez aka “Pelon,” 31
Maria Guadalupe Melendez aka “Wawi,” 39
Maria Del Rosario Melendez aka “Chayo,” 44
Manuel Hernandez aka “Lolo,” 19
Alejandro Reyes aka “Keiko,” 31
Rene Gabriel Gonzalez aka “Beast,” 46
Carlos Alberto Acosta aka “Pinni,” 36
Jorge Armando Perez, 34
Hertor Manuel Cavazos, 26
Pedro Omar Garza-Cadena, 31
Oscar Sanchez-Avila, 24
Arturo Garcia, 21
Luis Felipe Melendez aka “3,” 22
Julio Eduardo Almazan Jr., 22
Jose Juan Sosa, 19
Jesus Ramirez aka “Playboy,” 19The indictment remains sealed as to those charged but not as yet in custody.
If convicted of the conspiracy, they each face a minimum of five and up to 40 years in federal prison as well as a possible $5 million fine.
Adan Melendez and Hernandez are also charged with possession of a firearm in furtherance of a drug trafficking offense and face a potential sentence of up to life imprisonment, upon conviction.
The indictment also charges Adan Melendez, Rafael Andres Melendez and Roberto Perez with conspiracy to launder monetary instruments along with Mario Gutierrez and Sanchez-Avila who were also indicted for laundering monetary instruments. Each of those convictions carry a maximum 20-year sentence and a possible $500,000 fine.
Adan Melendez and Maria Guadalupe Melendez will further face a potential 20-year sentence and another $500,000 fine if convicted of maintaining a drug-involved premises.
The remaining counts charge multiple defendants with varying criminal violations, to include possession with intent to distribute cocaine, crack or marijuana, employment or use of persons under 18 years of age in drug operations and/or use of a communication facility in a controlled substance violation. Upon conviction, those charges carry varying terms of imprisonment, up to a maximum of 40 years in federal prison and fines up to $1 million.
The Organized Crime Drug Enforcement Task Force investigation was conducted by the Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.League City Registered Sex Offender Gets Significant Sentence for Multiple Child Pornography ConvictionsRead the Press Release
GALVESTON, Texas – Donald Post, of League City, 69, has been ordered to prison for 40 years following his convictions of production and distribution of child pornography involving a four-year-old minor female as well as possession of child pornography, announced United States Attorney Kenneth Magidson. Post pleaded guilty March 5, 2014.
Today, U.S. Circuit Judge Gregg Costa sitting in designation, handed Post a sentence of 480 months for each of the distribution and production charges as well as 240 months for possession of child pornography. The sentences will be served concurrently for a total 40-year federal sentence.
Post was arrested Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
Post has admitted to photographing a four-year-old female victim in lewd and lascivious poses and then distributing these images via the Internet. He also authored a document that chronicled his activities with this victim. The account of the incident is incredibly graphic and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
Post will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the FBI and prosecuted by Assistant U.S. 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."
Spa Owner Pleads Guilty as Trial Set to BeginRead the Press Release
McALLEN, Texas - Elva Navarro, 37, of Hidalgo, has entered a guilty plea to violating the U.S. Food, Drug and Cosmetics Act as her federal trial was about to being today, announced United States Attorney Kenneth Magidson.
The investigation into Navarro began in November 2013 after law enforcement discovered she was involved with providing liquid silicone to women to effect the structure and function of their bodies.
Court documents demonstrated that Navarro would administer injections of liquid silicone into individuals who would frequent her facility - Bella Face and Body Spa in McAllen. These injections were not approved by the Food and Drug Administration (FDA). Navarro falsely represented to her customers that they were safe when, in fact, they were not.
During her plea today, Navarro admitted that on Oct. 5, 2013, she used an adulterated device, namely, liquid silicone on a female customer at her spa. Navarro knew that the substance had caused complications on previous occasions, but admitted she intended to mislead the woman by not disclosing that information to her female customer.
The woman later died as a result of the injections.
U.S. District Judge Micaela Alvarez, who accepted the plea, has set sentencing for Aug. 21, 2014. At that time, Navarro faces up to three years in prison and a possible $250,000 fine. She will remain in custody pending that hearing.
The case is being investigated by FDA, Hidalgo County Sheriff's Office and the FBI. Assistant U.S. Attorney Kim Leo is prosecuting.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake 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. Blake 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, Blake admitted to being a member 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, previously, 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 violate the rules or pose 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.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 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.
Local Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Christopher Lee, 41, of Corpus Christi, has been ordered to federal prison for possession of child pornography, announced United States Attorney Kenneth Magidson. Lee pleaded guilty March 3, 2014.
U.S. District Judge Nelva Gonzalez Ramos considered the need to protect the public and deter future criminal conduct and ordered Lee serve a total sentence of 70 months in prison. He will also serve 10 years of supervised release 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.
On March July 28, 2013, the Corpus Christi Police Department (CCPD) responded to a domestic disturbance call at a motel in Corpus Christi. The victim claimed her boyfriend, Lee, had assaulted her. She further alleged Lee had been viewing child pornography on his cell phone earlier that day. She described images of nude girls between the ages of seven and nine as well as a video of an adult male sexually assaulting a six-month old female infant.
Lee later contacted the police in an effort to obtain reports related to the assault and on Aug. 7, 2013, he came to the police station to pick up the assault reports. At that time, he provided consent for officers to search his cell phone, which resulted in the discovery of child pornography. A forensic examination identified numerous child pornography and child erotica images.
Lee later admitted to downloading, viewing and saving the child pornography on his phone.
Lee will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and CCPD – Internet Crimes Against Children task force investigated.
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."
Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – Lenyn Acosta, 33, and three others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced U.S. Attorney Kenneth Magidson. Mexican National Acosta pleaded guilty to conspiracy to transport aliens as did Debora Baldizon, 37, of Nicaragua, and Maurisio Hernandez-Chinchilla, 32, and Franklin Gutieres, 33, both of Honduras.
Today, U.S. District Judge Melinda Harmon, who accepted all the guilty pleas, handed Acosta a total sentence of 97 months in federal prison. In handing down the sentence, Judge Harmon found Acosta was the organizer and leader of an ongoing and extensive conspiracy involving hundreds of undocumented aliens, to include juveniles. Judge Harmon also found Acosta caused serious bodily injury to a female alien he harbored by sexually assaulting her during the course of the conspiracy. At the hearing today, that victim testified about the impact the crime has had on her life.
Baldizon and Hernanez-Chinchilla were also sentenced today to a respective terms of 30 and 12 months in prison. Gutieres was sentenced on May 23, 2014, to a 12-month term of imprisonment.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in July 2012 after federal agents received information that Acosta was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In May 2014, Hernandez-Chinchilla and Gutieres were arrested in connection with arranging the transportation of eight aliens illegally present in the U.S. Later, agents executed a search warrant at a residence in Houston which was being used by Acosta and his conspirators to stash aliens awaiting transportation. Agents encountered 13 additional aliens illegally present in the country.
All 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 charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Transporting and Harboring Aliens Lands Four in PrisonRead the Press Release
Nine Aliens Killed During Transport
McALLEN, Texas – Four defendants, who conspired to transport and harbor illegal aliens resulting in multiple deaths, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Carmelo Diaz-Gopar, 26, and Jose Vega-Zapata, 37, both of Mexico, and Gloria Solis, 26, and Luis Julian Vargas, 21, both of Mission, all previously pleaded guilty to one count of conspiring to transport and harbor illegal aliens within the U.S. resulting in the death of at least one person.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Vega-Zapata a sentence of 132 months in federal prison, while Diaz-Gopar, Solis and Vargas receive respective sentences of 121, 42 and 100 months imprisonment. In handing down the sentences, the court noted that transporting and harboring aliens is a horrendous profession motivated by greed and that this offense tragically resulted in the death of nine individuals who had come to this country in search of work. Vargas and Solis must also serve two years of supervised release following completion of their prison terms. Both Diaz-Gopar and Vega-Zapata are illegal aliens and are expected to face deportation proceedings following release from prison.
According to court records, on April 10, 2012, Border Patrol (BP) agents attempted to conduct a traffic stop on a mini-van suspected of transporting undocumented aliens. The mini-van initially stopped on the side of the road in Palmview, at which time Diaz-Gopar exited from the van and ran away in an attempt to elude agents. He was apprehended shortly thereafter.
The driver of the van, a juvenile, then drove away at a high rate of speed and was involved in a single car accident just a short distance from the location of the original stop. A total of 16 undocumented aliens were being transported in the mini-van at the time of the accident. Nine were killed and the others were taken to local hospitals to seek medical treatment. Homeland Security Investigations (HSI), along with several other law enforcement agencies responded to the scene of the accident.
After further investigation, it was determined the aliens had been picked up from a stash house in Mission, where they had been harbored and were subsequently being transported to another destination. Believing additional undocumented aliens were still being harbored at the same stash house; law enforcement subsequently conducted a consensual search of the stash house where they discovered 12 additional aliens in the residence, along with Solis, Alexander Barrios-Grajales, 28, and Alejandro Garcia-Nava, 20.
Vega-Zapata and Vargas were later apprehended for their involvement in the alien harboring. Some of the undocumented aliens provided statements to agents implicating the defendants and their involvement in the alien harboring, according to the court records.
At the hearing today, additional testimony was presented concerning the role each individual defendant played in the offense. Vega-Zapata was in charge of hiring individuals who would in turn secure stash houses and drivers for the organization’s use. Diaz-Gopar made arrangements with some of the aliens while still in Mexico and not only guided them through Mexico but was also to guide them north once they had been smuggled into the U.S. Vargas hired the juvenile to drive the transport vehicle which was subsequently involved in the accident, while Solis was the caretaker of the aliens at the stash house.
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.
Barrios-Grajales and Garcia-Nava have also pleaded guilty to related charges and were also sentenced to federal prison.
The investigation was the result of an investigation led by Homeland Security Investigations with the assistance of Border Patrol and the Palmview Police Department. Assistant United States Attorney Linda Requénez prosecuted the case.
Significant Sentence Handed Down for Firearms TraffickingRead the Press Release
CORPUS CHRISTI, Texas - Angel Aquino-Pineda, 27, of McAllen, has been ordered to serve more than eight years in the Bureau of Prisons for his role in trafficking AK-47 variant rifles to Mexico, announced United States Attorney Kenneth Magidson. Aquino-Pineda pleaded guilty before Senior U.S. District Judge Hayden Head on March 26, 2014.
In handing down the 100-month sentence, Judge Head observed that the firearms in Aquino-Pineda’s possession were “were weapons of war.” The court further expressed relief that the assault rifles were intercepted, as there was simply no way to know how many lives they would have taken.
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.
Six Houston residents have also pleaded guilty for their roles in a conspiracy to traffic the firearms. Javier Resendez, 29, entered a guilty plea before U.S. Magistrate Judge Janice Ellington. Abel Lopez, 34, Arturo Garcia, 30, Roberto Santana Mears, 22, Mary Bel Deanda, 39, and Martha Gonzales, 41, previously pleaded guilty at varying times before U.S. Magistrate Judges Ellington and Jason Libby. They all await sentencing.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) 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.
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 are prosecuting the case.
Postal Carrier and Another Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Tangela R. Jackson-Lezeau, 34, and Kerry Lionel Ruffin, 31, have both entered guilty pleas in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson.
Both entered guilty pleas to conspiracy to commit mail fraud. Ruffin also pleaded guilty to aggravated identity theft.
According to court records, Ruffin obtained stolen personal identifying information (PII) from a Fulton County, Ga., employee who had received the information from Rance Hunter, 29, of Atlanta, Ga. Hunter had access to the sheriff’s office database including names, birth dates and Social Security numbers of arrestees, inmate, and employees.
Ruffin, of Atlanta, acted as a conduit, funneling the stolen PII to co-conspirators in Houston. From 2010 through 2013, Ruffin’s co-conspirators used the stolen PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to Internal Revenue Service records, the National Treasury paid out more than $6 million before the scheme was discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.
Jackson-Lezeau was employed as a postal carrier in Port Saint Lucie, Fla. She was recruited into the scheme and paid for allowing addresses on her delivery route to be used by the co-conspirators as locations where the fraudulently obtained tax refunds could be sent. After gathering the mail containing the refund debit cards, Jackson-Lezeau sent it via express mail to her co-conspirators in Houston.
Hunter previously pleaded guilty in a companion case and is set for sentencing Oct. 8, 2014.
Co-conspirator Calvin Shelton, a postal carrier in Atlanta, pleaded guilty May 21, 2014 to conspiracy to commit mail fraud, mail fraud, seven counts of wire fraud and seven counts of aggravated identity theft for his part in the scheme. He remains in custody awaiting sentencing, set for Aug. 14, 2014.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas today, has set sentencing for Sept. 3, 2014. At that time, Ruffin and Jackson-Lezeau face of up to 20 years imprisonment for the conspiracy charge. Ruffin also faces another mandatory two years for the aggravated identity theft which must be served consecutively to any other sentence imposed. Both convictions also carry a possible $250,000 maximum fine. They were permitted to remain on bond pending that hearing.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Mathis Man Sentenced to Life in Prison for Large-Scale Drug-Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Ricardo Guerrero, 55, of Mathis, has been sentenced to federal prison for conspiracy to commit drug trafficking, conspiracy to launder money and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Guerrero following an eight-day trial and approximately two hours of deliberation on Tuesday, March 18, 2014.
Today, Senior U.S. District Judge Hayden Head, who presided over the trial, handed Guerrero a total sentence of life in federal prison. As part of his sentence, Guerrero was also ordered to forfeit three properties to the U.S. and pay a money judgment of $500,000.
During trial, the government provided evidence that Guerrero was the leader of the conspiracies, which existed from 2009 through his arrest on Sept. 26, 2013. Guerrero was proven to be a major dealer in methamphetamine, heroin and cocaine.
Over the course of the two-year investigation, law enforcement agents seized more than six kilograms of methamphetamine, five kilograms of heroin and six kilograms of cocaine. In addition to these amounts, trial testimony also proved that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month. He obtained the illegal narcotics from Mexico and had them crossed into the United States at Brownsville, McAllen or Laredo and stored the narcotics on numerous properties he owned in Mathis and in neighboring counties. Guerrero sold the methamphetamine, heroin and cocaine to sources throughout South Texas, as far north as Houston, and even as far west as San Antonio.
The money laundering conspiracy involved concealing money Guerrero made from his drug trafficking, primarily through cattle and vehicle auctions.
The government presented testimony from 52 witnesses, which included information about the arrests of 21 other conspirators that had been working for Guerrero in the drug trafficking and money laundering conspiracies. Those defendants all entered guilty pleas to their respective roles prior to trial.
Jesus Borja-Borja, 26, of Edinburg, pleaded guilty to the conspiracy, specifically, to being Guerrero’s main source of supply in obtaining the illegal narcotics. Elena Barrera, 36, of Mathis, and Frank Coronado, 30, of Brownsville, were convicted of conspiracy to commit money laundering. Wayne Dedow, 49, of Mathis, Miguel Montemayor, 37, of Beeville, and Douglas Massey, 34, Ricky Bazaldua, 37, and Ramon Alonzo Gonzales, 45, all from Corpus Christi, pleaded guilty for transporting or selling specific loads of narcotics for Guerrero. Six others - Krystan Rios, 23, Eddie Hernandez, 32, Victor Arocha, 54, Sulema Vasquez, 50, Jada Gregg Warren, 30, and Daniel Sosa, 44, all of San Antonio - entered guilty pleas to their roles in transporting or selling specific loads of narcotics for Guerrero.
The remaining conspirators pleaded guilty to their roles in transporting or selling narcotics for Guerrero. These included Carlos Molina, 71, and Roberto Contreras, 57, both of Robstown, Richard Pacheco, 42, of Karnes City, Lee Roy Tanguma, 38, of Beeville, Benjamin Hernandez, 38, of Sandia, and Emmanuel Pabon Lugo, 37, and Amalia Dimas, 36, both of Corpus Christi.
All 21 of the other defendants have already been sentenced to prison terms ranging from 18 months to 180 months.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety. The case is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Houston Woman Convicted in Alien Smuggling That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Karin Yamilec Aguilar-Melgor, 22, of Houston, has admitted to smuggling of a group of nine illegal aliens that left one deceased, announced United States Attorney Kenneth Magidson.
According to documents filed of record in the case, on Feb. 25, 2014, at approximately 3:30 a.m., Border Patrol (BP) agents observed individuals getting into a red Ford pickup truck on a Farm to Market Road near Falfurrias. Finding the activity suspicious, BP agents activated their emergency equipment and approached the vehicle. The vehicle then fled the area.
BP agents remained at the scene and apprehended one illegal alien. The pickup truck was located approximately five miles away, which had crashed into a tree on FM 2191 near Falfurrias. At the scene, eight more illegal aliens were discovered as well as Aguilar-Melgor, the driver.
One of the illegal aliens subsequently died due to injuries sustained in the accident.
Aguilar-Melgor was arrested at the scene and has remained in custody since that time.
U.S. District Judge Nelva Gonzales Ramos, who accepted the guilty plea, has set sentencing for Oct. 1, 2014. At that time, Aguilar-Melgor faces up to 20 years in prison and a $250,000 fine.
The case is being investigated by Homeland Security Investigations. Assistant United States Attorney Jeffrey S. Miller is prosecuting.
Father and Son Sentenced for Shooting Federal AgentRead the Press Release
McALLEN, Texas – Two Hargill men have received significant sentences for the July 2012 aggravated assault on a Homeland Security Investigations agent, announced United States Attorney Kenneth Magidson. A federal jury in McAllen convicted Pedro Alvarado, 43, and his son Arnoldo Alvarado, 20, on March 21, 2014, following a four-day trial.
Today, U.S. District Judge Randy Crane sentenced Pedro Alvarado to 120 months for aggravated assault of a federal agent and 120 months for discharging a firearm during and in relation to a crime of violence. The court ordered that the sentences run consecutive for a total sentence of 240 months of federal imprisonment followed by a three-year-term of supervised release. Arnoldo Alvarado will serve 72 months for the aggravated assault and a consecutive 120 months for discharging a firearm for a total sentence of 192 months in federal prison followed by three years of supervised release.
At trial, the jury heard that in the early morning hours of July 3, 2012, Homeland Security Investigations (HSI) agents received information regarding a tractor-trailer located near Hargill that was going to be used to transport a large load of marijuana. Based on this information, agents traveled to Hargill and set up surveillance. One of those agents parked near the residence of Pedro Alvarado. Unbeknownst to the agents, another group of individuals were also conducting surveillance of the same tractor-trailer for the purpose of stealing the load of marijuana that they believed the tractor-trailer contained.
At approximately 3:30 a.m., one of those individuals noticed several vehicles in the area, specifically, a vehicle parked near Pedro Alvarado’s residence and notified him. Pedro Alvarado then told his sons, Arnoldo, and another 16-year-old minor, to get their guns and get into their pickup truck.
Pedro Alvarado then drove the truck with his sons as passengers, without his headlights, near the location the agent was parked. As the truck approached, the agent began to drive away, at which time the 16-year-old minor began shooting with a .22 caliber rifle.
The agent attempted to get away, but Pedro Alvarado continued to pursue him at a high rate of speed, while Arnoldo Alvarado began to shoot at him with a 9 mm firearm. Approximately one mile into the chase, a bullet struck the agent in the back. Although injured, he continued to flee, ultimately landing him in a brush where he got out of the vehicle and managed to run to avoid being detected by this assailants.
Sometime thereafter, other agents located the agent and transported him to the hospital where he underwent surgery to repair his lung which was pierced by the bullet.
The subsequent investigation lead agents to the residence of Pedro Alvarado where agents conducted a search and found both weapons used during the assault hidden in the attic.
Both men have been in custody since their arrests July 3, 2012, where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and HSI investigated. Assistant U.S. Attorneys Anibal J. Alaniz and James Sturgis prosecuted the case.
Drug Traffickers Plead Guilty on Eve of TrialRead the Press Release
BROWNSVILLE, Texas - Jose Angel Marichalar, 33, Phillip Cross, 56, and Yisnel Garcia Gonzalez, 30, have all entered guilty pleas in a trial set to begin today, announced United States Attorney Kenneth Magidson. Marichalar, from Mission, pleaded guilty shortly before the jury was empanelled this morning, while Cross, from Indianapolis, Ind., and Gonzalez, from Miami, Fla., entered their guilty pleas late yesterday.
Marichalar was convicted of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder money. He is also forfeiting his interest in several properties and numerous personal items, including tractors, trailers and jewelry, valued at more than $1 million. Additionally, as part of his plea agreement, Marichalar has also agreed to a $10 million money judgment against him.
Cross also pleaded guilty to the marijuana conspiracy, while Garcia pleaded guilty to possession with intent to distribute approximately 1,141 kilograms of marijuana that occurred during a traffic stop in Zapata County on July 12, 2012.
Evidence presented in support of the pleas, demonstrated that Marichalar, Cross, Garcia and others were part of a multi-state drug trafficking and money laundering organization that had existed since 2010. The drug trafficking organization, based out of the Rio Grande Valley, would hire out of state truck drivers to haul loads of produce with ton quantities of marijuana hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley. The conspiracy extended to Indiana, Kentucky, Illinois, North Carolina and Tennessee.
All three men will remain in custody pending their sentencings. Cross and Garcia will be sentenced before U.S. District Judge Hilda G. Tagle on Sept. 10, 2014, while Marichalar will be sentenced Sept. 14, 2014. At their hearings, they will all face a mandatory minimum of 10 years and up to life in federal prison as well as a maximum $10 million fine. Marichalar also faces a maximum of 20 years in prison and another $500,000 fine for the money laundering conspiracy.
The case was investigated by the Drug Enforcement Administration Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Sheriff’s Offices in Cameron and Zapata Counties, Hildalgo County High Intensity Drug Trafficking Area task force, Border Patrol and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.Campaign Worker Pleads Guilty to Buying Votes in Donna School Board ElectionRead the Press Release
McALLEN, Texas – A campaign worker pleaded guilty today for paying voters to vote in the November 2012 Donna school board election, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Guadalupe Escamilla, 72, of Weslaco, pleaded guilty to one count of vote-buying before Chief U.S. District Judge Ricardo Hinojosa. She faces a maximum penalty of five years in prison and a $10,000 fine. Sentencing is set for Aug. 29, 2014.
According to a factual statement read during the plea hearing, a general election was held on or about Nov. 6, 2012, in Donna, which included candidates for the presidential election, as well as various state, county and local offices, including the members of the Donna School Board. Escamilla assisted in the campaign to elect candidates to the Donna School Board. In the course of that work, Escamilla knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two candidates gave her money to pay to voters for voting in the election.
Two other campaign workers, Rebecca Gonzalez, 44, and Diana Balderas Castaneda, 48, of Donna, have pleaded guilty to the same charge. They are awaiting sentencing.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo and Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.
Portland Man Sentenced for Distributing Child PornographyRead the Press Release
VICTORIA, Texas – Richard R. Montez, 32, been ordered to prison following his conviction on one count of distribution of child pornography, announced United States Attorney Kenneth Magidson. Montez pleaded guilty Feb. 18, 2014.
Today, Senior U.S. District Judge John D. Rainey considered the need to protect the public and deter future criminal conduct and handed Montez a sentence of 97 months in federal prison. The sentence will be immediately followed by 10 years of supervised release during which time he will have to comply to comply with numerous requirements designed to restrict his access to children and the Internet. Montez will also be ordered to register as a sex offender.
The FBI had identified Montez in an undercover operation out of Tulsa, Okla. He had been on a file sharing network with 214 suspected files of child pornography he had made available for sharing.
On Oct. 24, 2013, FBI agents and local officers executed a federal search warrant on his Portland home. At that time, Montez admitted to using a file sharing network to acquire child pornography.
Forensic analysis of a laptop Montez owned led to the discovery of more than 500 images and more than 250 videos of child pornography.
Previously released on bond, Montez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI investigated with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force and the Portland Police Department.
This case, prosecuted by Assistant United States 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."
Former Laredo Customs Broker Sentenced for False Classification of Imported GoodsRead the Press Release
LAREDO, Texas - Alejandro Santos, 34, a former U.S. Customs broker, has been ordered to prison following his convictions related to the smuggling of goods into the country, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Janice Ayala, of Homeland Security Investigations (HSI) in San Antonio. Santos pleaded guilty May 14, 2013, before U.S. Magistrate Judge J. Scott Hacker.
Today, U.S. District Judge George P. Kazen, who later accepted the guilty plea, handed Santos a total sentence of 28 months in federal prison for his three convictions of entry of goods by false classification, smuggling goods into the U.S. and making a false statement to an HSI agent. He was further ordered to pay nearly $140,000 in restitution and will serve three years of supervised release following completion of the prison term.
“As illustrated by this probe, HSI and U.S.Customs and Border Protection import specialists are cracking down on customs fraud, which often involves a substantial loss of revenue for law abiding companies and the government,” said Ayala. “Our focus on trade violations and related criminal activities is crucial to maintaining the integrity of a vital commercial trade.”
Santos was licensed by Customs and Border Protection (CBP) to file entry documents for commercial shipments on behalf of importers. As a result of his conviction, Santos was required to surrender his broker’s license. His responsibilities included generating entry packages, describing, classifying and valuating shipments for importation into the U.S. and submitting appropriate payments to CBP on behalf of his clients for any duties, taxes and fees owed, if any.
Santos used a scheme to defraud the government by falsifying the country of origin on goods imported into the United States. The falsification allowed him to benefit from the North American Free Trade Agreement preferential treatment program, resulting in zero duties and taxes owed. In truth, duties and taxes should have been paid to the U.S. Santos would then collect money from his clients to cover the correct amount of duties and taxes that should have been paid to CBP. Santos then failed to turn over the money to CBP, keeping the monies for himself.
Santos admitted to importing various goods into the U.S. made in India and Italy, while falsely claiming the goods were made in Mexico. He would then collect money from his clients (importers of record) and keep the money.
Santos was permitted to remain on bond but is required to surrender no later than June 9, 2014, to begin his sentence with a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI. Assistant U.S. Attorney (AUSA) Roberto Ramirez and former AUSA Roel Canales prosecuted the case. AUSA Homero Ramirez handled the sentencing today.
Former Army National Guard Soldier Pleads Guilty to Bribery and Defrauding U.S. Army National Guard BureauRead the Press Release
To Date, 23 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
WASHINGTON – A former soldier in the U.S. Army National Guard pleaded guilty to bribery and fraud on the U.S. Army National Guard Bureau, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. .
Former Specialist Christopher Renfro, 26, of Houston, pleaded guilty today to two counts of wire fraud and one count of aggravated identity theft. Previously, on March 24, 2014, Renfro pleaded guilty to one count of conspiracy and one count of bribery in connection with the same scheme.
According to court documents, former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 23 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Renfro admitted that between approximately February 2008 and August 2011, he paid former Sergeant First Class Michael Rambaran for the personal identifying information of potential Army National Guard soldiers. Renfro further admitted he used the personal information for these potential soldiers to obtain fraudulent bonuses by falsely claiming he was responsible for referring these soldiers to join the Army National Guard.
With Renfro’s plea, five individuals have now been convicted in connection with this particular charge, including Rambaran, who also pleaded guilty to one count of aggravated identity theft. Renfro, Rambaran and the others will all be sentenced Jan. 9, 2015, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by the San Antonio Fraud Resident Agency of U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. This case is being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.