Southern District of Texas
Press releases recorded for this federal judicial district.
Continuum Healthcare Executives and 8 Others Charged with Kickback ConspiracyRead the Press Release
HOUSTON – Jeffery Parsons, of Crockett, and David Edson, of Palm Harbor, Fla., have been charged in a 13-count indictment alleging a conspiracy to pay kickbacks to several area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson today. Edson, 65, and Parsons, 55, were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC.
The indictment also charges personal care home owners Aretha Johnson, 61, of Sweeny; Inger Michelle Pace, 51, James Bobino, 44, Mary Browning, 66, Cheryl Waller, 68, all of Houston; Deborah Davis, 51, of Atlanta, Ga.; and patient advocates Earnestine Johnson, 55, and Ronald Turner, 53, both also of Houston.
The indictment, returned under seal Thursday, April 17, 2014, was partially unsealed upon the arrest of Edson yesterday in Palm Harbor, Fla. He made his initial appearance before a U.S. magistrate Judge in Florida, while Davis made hers before a U.S. magistrate Judge in Georgia. Parsons and the remaining defendants were arrested yesterday and appeared before U.S. Magistrate Judge George Hanks in Houston. With the exception of Pace, who was temporarily ordered into custody pending a detention hearing set for Monday morning, all were released upon posting bond.
The indictment alleges Edson and Parsons ran Continuum, which owned and operated three community mental health centers in the greater Houston Area. They allegedly billed Medicare and Medicaid for mental health services which were unnecessary, and, in some cases, not even provided. According to the indictment, Edson and Parsons directed kickbacks to be paid to numerous area personal care home owners and patient advocates in exchange for the referral of Medicare patients to Continuum.
All defendants are charged with conspiring to solicit or receive kickbacks in connection with a federal benefit program.
Edson, Parsons and Aretha Johnson are also charged with money laundering for engaging in monetary transactions in criminally derived property greater than $10,000 from proceeds of the conspiracy to pay and receive kickbacks. According to the allegations in the indictment, Edson and Parsons caused Continuum to bill $173 million to the Medicare and Medicaid programs for patients obtained as the result of illegal kickbacks paid to the personal care home owners and patient advocates. Medicare and Medicaid paid Continuum a total of $69.4 million.
Conspiracy to solicit or receive kickbacks and soliciting or receiving kickbacks each carries a maximum penalty of five years in a federal prison, upon conviction, while money laundering carries a maximum penalty of 10 years. The convictions also carry as possible punishment a maximum $250,000 fine.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Department of Health and Human Services-Office of Inspector General, Texas Attorney General's Office - Medicaid Fraud Control Unit, Internal Revenue Service- Criminal Investigation and the Railroad Retirement Board-Office of Inspector General. This case will be prosecuted by Assistant United States Attorney (AUSA) Al Balboni and Special AUSA Adrienne Frazior.
A defendant is presumed innocent unless and until convicted through due process of law.Alien Smuggler Gets More Than 16 Years for Deadly CrashRead the Press Release
CORPUS CHRISTI, Texas - Mexican National Manuel Rendon-Lucas, 19, has been ordered to federal prison and must pay nearly $3 million in restitution for his involvement in a deadly single vehicle accident that occurred in Brooks County in Novemeber 2013, announced United States Attorney Kenneth Magidson. Rendon-Lucas pleaded guilty March 21, 2014, to conspiracy to transport illegal aliens causing serious bodily injury.
Today, Senior U.S. District Judge Janis Graham Jack handed the teenager a sentence of 200 months of federal imprisonment to be followed by three years of supervised release. Rendon-Lucas was also ordered to pay more than $2.65 million in restitution. In handing down the sentence, the judge noted she had never seen such an egregious case.
The charges stem from a Nov. 23, 2013, single vehicle accident in Brooks County that killed five and injured 10, including Rendon-Lucas, who was driving. All of the vehicle’s occupants were determined to be undocumented aliens from Mexico, Honduras, El Salvador, Ecuador and Nicaragua.On that date, while attempting to flee from law enforcement officers at a high rate of speed, the vehicle hit a construction barrier and begin to swerve out of control. As the vehicle began to skid, it exited the roadway and struck a curb with its left front tire causing the vehicle to become airborne. The front left portion of the vehicle then struck a tree at a high rate of speed. Five occupants were pronounced dead on the scene, including a brush guide who had assisted in smuggling the undocumented aliens. Several of the survivors sustained spinal fractures during the accident and remain paralyzed.
In federal custody since his arrest, Rendon-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charge stems from an investigation by Homeland Security Investigations, Border Patrol, Falfurrias Police Department, Brooks County Sheriff’s Department and Texas Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
“Investment Advisory Firm” Owner Sentenced to Federal PrisonRead the Press Release
GALVESTON – Kimberly Fontenot, a Brazoria County resident, has been ordered to federal prison following her conviction of defrauding clients of her so-called investment advisory firm, Stellar Grants Inc., announced United States Attorney Kenneth Magidson. Fontenot, 53, entered a plea of guilty Thursday, Dec. 5, 2013.
Today, U.S. District Judge Gregg Costa cited the need for the sentence to reflect the seriousness of the offense and to deter criminal conduct and ultimately handed Fontenot a total sentence of 37 months to be immediately followed by three years of supervised release. She was further ordered to pay a $115,115 in restitution. In handing down the sentence, Judge Costa further noted there were more than 20 victims affected by the complex wire fraud and identity fraud scheme.
As outlined in documents filed with the court and admitted by Fontenot at the time of her plea, from at least January through December 2012, Fontenot lured potential clients by falsely claiming to know numerous wealthy investors located throughout the U.S. She offered access to these wealthy investors, whom she called her “angel investors,” to potential Stellar Grants clients in exchange for money. Specifically, Fontenot misrepresented that in exchange for money, she could put Stellar Grants clients in contact with the “angel investors” and would help them seek investments from the angel investors.
In addition to claiming personal and business relationships with them, Fontenot used the web-based email services Yahoo.com and Gmail.com to create fake email accounts in the names of the investors. She used these accounts to send emails to Stellar Grants clients, making it seem as if the emails were coming to and from the “angel investors” when, in reality, they were coming from Fontenot.Fontenot also hired a voice actor to impersonate the “angel investors” or their representatives during telephone calls with Stellar Grants clients. She also instructed the actor how to act and what to say during the calls. Fontenot then held fake conference calls in which she pretended to represent the Stellar Grants client and the voice actor pretended to be the angel investor or a representative of the angel investor, all in an attempt to justify the consulting fees paid by the Stellar Grants clients.
To avoid detection, Fontenot arranged for Stellar Grants clients or their representatives to sign “Master Consulting Agreements.” These agreements included a penalty clause which imposed heavy financial penalties if the clients contacted any of the angel investors.
Fontenotwas 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 the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Hidalgo Drug Trafficker Gets Life in Federal PrisonRead the Press Release
McALLEN, Texas – Daniel Nunez, 38, of Hidalgo, has been ordered to prison for life following his conviction for conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to transport and attempt to transport monetary instruments to Mexico to promote drug trafficking, United States Attorney Kenneth Magidson announced today. Nunez pleaded guilty Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Randy Crane handed down the sentence and noted that this was a significant drug trafficking conspiracy over a long period of time.
Nunez had been involved in an organization that had crossed marijuana into the United States from Mexico. They would arrange to cross marijuana from Mexico through the Rio Grande River in the Military Highway area, and transport it to stash locations in Edinburg and Hargill. From there, the marijuana would be taken to another stash location where it would be loaded onto tractor trailers for further distribution in the Dallas area as well as Panama City and Orlando, Fla., and Steele, Ala. areas.
Nunez also arranged to transport the proceeds of his drug-trafficking organization from various locations in Florida back to Hidalgo County, and from there, transport it into Mexico.
According to previous court records, the exploits of Nunez were celebrated in narco-corridos that were posted to YouTube entitled “Corridos De Arranque” that sung of “El Patron y El Comandante,” “El Comandanta y Su Gente,” “El Guero y su Clicka,” “El Reinocertonte (M-50)”and El-M-3.
Several others have been charged and convicted with sentences so far ranging from more than two years to nearly 18 years in prison.
Nunez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigations leading to the criminal charges were conducted in McAllen, Panama City, Orlando and Steele. This Organized Crime Drug Enforcement Task Force investigation was led by Homeland Security Investigations, FBI and Internal Revenue Service - Criminal Investigation. These cases are being prosecuted by Assistant United States Attorney Patricia Profit.Convicted Hostage Takers Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Miguel Angel Navarro, Milton Leonel Trevino and Onan Herrera-Sanchez have been ordered to prison for their involvement in the hostage taking of a University of Texas-Pan American student, announced United States Attorney Kenneth Magidson. Trevino, 21, of Pharr, and Herrera-Sanchez, 30, of Honduras, both pleaded guilty, while Navarro, 36, of Hidalgo, was convicted by a jury on both counts with which he was charged after a four-day trial and less than four hours of deliberation on Jan. 24, 2014.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Navarro a sentence of 408 months on one count of conspiracy to commit hostage taking and 408 months for hostage taking, to be served concurrently. Herrera-Sanchez and Trevino received respective sentences of 240 and 120 months in federal prison. Navarro will be on supervised release for life following completion of his prison term, while Trevino will serve a four-year-term. As a non-U.S. citizen, Herrera-Sanchez is expected to face deportation proceedings following his release from prison.
At the hearing today, additional testimony was presented including the effect the crime had on the victim. During Navarro’s sentencing hearing, the victim explained that her health, confidence, concentration and grades in school, among other things, had been negatively impacted since the offense occurred. She further stated that no matter how much time the defendants spent in jail, it would never repair the damage that had been done to her and her family. She added that although outwardly she may appear normal, emotionally, she was no longer the same person. She also noted that Navarro had no remorse for what he had done.
Navarro was given the opportunity to allocate during the hearing, but initially remained silent. Judge Crane then informed him that the victim was in court and he could apologize if he wanted. Navarro responded by indicating he had nothing to say to her and that he put his faith in the appellate process.
In handing down Navarro’s sentence, Judge Crane took into consideration the defendant’s prior state conviction for criminal solicitation, among other conduct, and noted that he hoped the lengthy prison sentence would prevent Navarro from engaging in violent crime again and that it served as a deterrent to others.
The victim testified at trial and told the jury about the events that unfolded Sept. 25-26, 2012, during which she was forcibly taken from a University of Texas-Pan American parking lot and put in a vehicle occupied by Navarro as well as Milton Leonel Trevino and Onan Herrera-Sanchez. She was then taken to another location where she was transferred to a different vehicle and ultimately to the residence of Trevino, where she was held against her will.
Trevino testified for the government and admitted he and the others knowingly and intentionally conspired with each other to detain and make threats in order to compel another person to pay a sum of money as an explicit or implicit condition of the victim’s release. Trevino admitted he assisted in the actual abduction of the victim and he guarded her while they waited for the ransom money.
The victim’s father also testified and described to the jury about receiving the ransom calls, during which a demand for money was made in exchange for his daughter’s release. He further testified that during the calls, he was told that if the money was not paid, he would never see his daughter again.
Navarro's former wife testified that at his request she assisted in transporting the victim from one location to another. She further claimed she was unaware of the kidnapping at that time, but suspected the female was the victim of the university kidnapping once she was made aware of media news reports. She further admitted she spoke to Navarro during the early morning hours of Sept. 26, given her concerns of his involvement in the kidnapping. At that time, he told her, among other things, not to worry and that they were just trying to get money.
The victim was eventually released physically unharmed by Trevino.
The investigation was the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from the Edinburg Police Department and Texas Rangers. This case is being prosecuted by Assistant United States Attorneys Linda Requénez and Grady J. Leupold.
Long-Time Nigerian Fugitive Convicted of Importing Heroin into the U.S.Read the Press Release
HOUSTON - Koyode Lawrence aka “papa,” who recruited college students in Nigeria to transport heroin into the U.S., has pleaded guilty to conspiracy to import a controlled substance, announced United States Attorney Kenneth Magidson.
The investigation was initiated Feb. 18, 2001, following the arrests of two co-defendants at Bush Intercontinental Airport (IAH) as they attempted to internally smuggle 1498 grams of heroin into the country from Nigeria. Both men were determined to be working for Lawrence, 45, of Lagos, Nigeria.
Lawrence headed the organization in which couriers would swallow heroin filled pellets in Nigeria, enter the U.S. and expel the pellets upon arrival at their final destination.
Lawrence recruited carriers who had dual U.S. and Nigerian citizenship because Lawrence believed them to be less suspicious. Generally, most were born in the U.S. when their parents were attending school and moved back to Nigeria while still children. Most of the carriers were recruited while attending college in Nigeria.
Individuals called “strikers” recruited potential couriers and brought them to Lawrence’s house in Lagos, where they were tested for their internal smuggling ability. Some of the couriers required extensive training to develop the ability to swallow between 700 and 800 grams of heroin filled pellets at a time. The couriers were paid between $6,000 and $15,000 per trip.
Lawrence accompanied carriers to a hotel in Ghana where they were given the heroin pellets to swallow. The carriers usually then flew from Ghana to Amsterdam and then to an international airport in the U.S., frequently arriving at IAH. Upon arrival, they were met by a manager who would escort them back to an apartment in Chicago, where they were instructed to expel the pellets. Carriers would often stay in Chicago for several days until arrangements could be made for their return.
Between March 2000 and November 2002, 14 heroin arrests were subsequently linked to Lawrence with multiple historical runs further attributed to him. Throughout the conspiracy, the Lawrence organization is responsible for importing at least 29 kilograms of heroin into the U.S. from Nigeria.
Lawrence fought his extradition from Nigeria for nearly 10 years and was finally brought to the U.S. in the latter part of 2013.
U.S. District Judge Nancy F. Atlas accepted the plea today and has set sentencing for July 9, 2014, at which time Lawrence faces a mandatory minimum of 10 years and up to life imprisonment as well as a potential $5 million fine. He will remain in custody pending that hearing.
The investigation leading up to the charges was conducted by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorney Stuart A. Burns is prosecuting the case.
Former Houston Police Officer IndictedRead the Press Release
HOUSTON – Former Houston Police Department (HPD) officer Marcos E. Carrion, 36, has surrendered to authorities, announced United States Attorney Kenneth Magidson today.
Carrion was charged in a sealed indictment, returned April 16, 2014. It was unsealed as Carrion turned himself into authorities this morning. He is expected to make his initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 2:00 p.m. today.
Carrion is charged with conspiring with others to possess with the intent to distribute five or more kilograms of cocaine from mid-2013 through April 2014.
Carrion, a five-year HPD veteran, had recently resigned from his position.
If convicted, he faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine.
The charges are the result of a six-month investigation by the Drug Enforcement Administration with the assistance of HPD and the FBI. The case will be prosecuted by Assistant United States Attorneys Mark E. Donnelly and Shelley J. Hicks.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Bryan Woman Heads to Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been ordered to federal prison for 11 years following her multiple convictions in relation to a large health care fraud conspiracy, announced United States Attorney Kenneth Magidson. A federal jury in Houston convicted Nowlin Sept. 4, 2013, following seven days of trial and less than three hours of deliberations.
At the sentencing hearing late yesterday, U.S. District Judge Sim Lake handed Nowlin a total sentence of 132 months in federal prison - 120 months for conspiracy to commit health care fraud to be served consecutively to a 12-month sentence for health care fraud, conspiracy to violate the anti-kickback statute and Social Security fraud. She was further ordered to pay $744,105 in restitution to Medicare and Medicaid and $106,492.10 to the Social Security Administration. In handing down the sentence, Judge Lake noted the fraud occurred over several years, harming beneficiaries, the public and the Medicare and Medicaid systems. Nowlin will also be required to serve three years of supervised release following completion of the prison term.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 51, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial. Parnell is scheduled to be sentenced May 15, 2014.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. A total of $744,105 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Previously released on bond, Nowlin was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Architect Pleads Guilty in Conjunction with Progreso Bribery SchemeRead the Press Release
HOUSTON - Jesus Bustos, 58, has pleaded guilty to conspiracy, announced United States Attorney Kenneth Magidson.
Bustos was charged in a second superseding federal indictment alleging his participation in a bribe paying scheme in Progreso. Today in Houston federal court, Bustos admitted that from 2004 through 2013, he paid bribes and kickbacks to obtain architectural contracts for his architectural firm IDEA Group LLC on public projects in Progreso and Weslaco.
Bustos admitted he conspired with, and primarily paid these bribes through, an IDEA Group employee to obtain contracts on construction projects with the Progreso Independent School District (PISD) and with the Weslaco Independent School District (WISD). The collective value of the PISD and WISD projects on which Bustos paid bribes was in the millions of dollars.
PISD’s Director of Maintenance and Transportation Jose Guadalupe Vela, Progreso Mayor Omar Vela and PISD Board of Trustees President Michael Vela largely controlled contracting with PISD and directed PISD contracts to those who were willing to pay Vela family members bribes. Jose Vela shared the bribe money with PISD School Board members who were willing to vote for contractors that Jose Vela chose for their willingness to pay bribes.
In Progreso, Bustos paid bribes through his employee to members of the Vela family to obtain contracts on PISD construction projects, to include West Elementary School, Fine Arts Center, North Elementary School and the Science and Technology building. Bustos also personally delivered bribe money to Michael Vela in approximately 2011.
In Weslaco, Bustos paid a bribe through his employee to a WISD school board member in order to obtain a contract on the Mario Ybarra Elementary School Construction project. He paid two bribes through his employee to the school board member at the end of the construction project in order to expedite payment from WISD to IDEA Group.U.S. District Judge David Hittner has set sentencing for July 25, 2014. At that time, Bustos faces up to five years in prison and a possible $250,000 fine.
The case was investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting.
8 Weslaco Men Enter Guilty PleasRead the Press Release
McALLEN, Texas - A total of eight men residing in Weslaco have entered guilty pleas to conspiracy to possess with the intent to distribute narcotics, announced U.S. Attorney Kenneth Magidson.
Tomas Reyes Gonzalez aka “El Gallo,” 37, Eloy Gonzalez, 39, Hector Rodriguez Jr., 37, Hector Rodriguez Sr., 61, Federico Rodriguez, 27, Miguel Placencia III, 28, Jamail Thomas, 27, William Champion Gonzalez, 22, all of Weslaco, entered their guilty pleas just a short time ago in McAllen federal court. Reyes Gonzalez also pleaded to one count of conspiring to launder money as did a ninth defendant - Francisco Rios, 40, from Atlanta, Ga.
The investigation revealed that from 2007 to 2013, Reyes Gonzalez headed a drug trafficking organization responsible for the distribution of thousands of kilograms of marijuana and hundreds of kilograms of cocaine. The narcotics were transported from the Rio Grande Valley to Arkansas, Tennessee, Alabama and Georgia. Reyes Gonzalez used the resulting drug proceeds to purchase properties. He also provided some of proceeds to former Hidalgo County Sheriff Lupe Trevino and former Hidalgo County Sheriff’s Office Commander Jose Padilla.
U.S. District Judge Randy Crane, who accepted the pleas today, has set sentencing for July 17, 2014. At that time, those convicted of the drug charge will face a maximum of life imprisonment along with a potential fine up to $10 million. Reyes Gonzalez will also face a maximum of 20 years imprisonment and a $500,000 (or twice the amount of the proceeds) for the conspiracy to launder money as will Rios for his conviction.
The investigation leading to the charges was conducted by Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Seven Convicted in Firearms Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Seven Houston residents have pleaded guilty 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).
Today, 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, Martha Gonzales, 41, and Angel Aquino-Pineda, 27, previously pleaded guilty at varying times before U.S. Magistrate Judges Ellington and Jason Libby.
“These convictions are examples of ATF’s continuing effort to stop the illegal flow of firearms to the hands of violent offenders, said Elder. “This is a continuation of ATF’s Frontline initiative working with our state and local partners in the fight against violent crime.”
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.
Lopez, Garcia, Deanda, Gonzalez and Mears are set for sentencing July 11, 2014, before U.S. District Judge Nelva Gonzales Ramos. Judge Ramos will sentence Resendez July 18, 2014. Aquino-Pineda, charged and convicted in a separate, but related indictment, is set for sentencing before U.S. District Judge Hayden Head June 12, 2014.
All defendants face up to five years in federal prison as well as a possible $250,000 fine. Resendez also pleaded to being a felon in possession of a firearm and Lopez also pleaded guilty to being an illegal alien in possession of a firearm. Both will also face an additional 10 years and another possible $250,000 fine for these convictions.
Mears, Deanda, Gonzales remain on bond. The others have been in federal custody since their arrest and will remain in custody pending their sentencing hearings.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffery D. Preston are prosecuting the case.
Mexican Man Sentenced for Trafficking Marijuana Out of Starr CountyRead the Press Release
McALLEN, Texas – Silvestre Barrera-Villegas, a member of drug trafficking conspiracy originating out Starr County, has been ordered to federal prison for nearly 10 years, announced United States Attorney Kenneth Magidson. Barrera-Villegas, 52, of Camargo, Tamaulipas, Mexico, pleaded guilty Jan. 29, 2014, to his role in smuggling more than 8,000 kilograms of marijuana in 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Barrera-Villegas to a total term of 130 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Barrera-Villegas admitted to assisting Sostenes Ferreira-Garcia, 50, of Rio Grande City; and Jorge Luis Martinez-Moreno, 28, and Homero Daniel Gutierrez-Aguilar, 24, both of Camargo, in smuggling marijuana from Mexico near La Casita for further distribution within the U.S.Ferreira-Garcia, who coordinated the smuggling and further distribution was previously sentenced to 240 months in federal prison, while Martinez-Moreno and Gutierrez-Aguilar, who assisted with the loading and unloading of the marijuana were sentenced, respectively, to 140 and 112 months in prison.
At the sentencing of Barrera-Villegas today, the court took into consideration information that Barrrera-Villegas, along with Ruben Patino-Garcia, took over Ferreira-Garcia’s duties after the organization in Mexico became dissatisfied with the work of Ferreira-Garcia.
Patino-Garcia, aka Orejon, 19, and Rosbel Morin-Barrera, aka Zacate, 54, both of Mexico, are fugitives in the case. The public can report tips to Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) by calling (866)-DHS-2-ICE (866-347-2423). On the receiving end, a team of special agents, intelligence research specialists and law enforcement specialists man the phones. They are all highly trained in a number of laws related to worksite enforcement, document and benefit fraud, intellectual property rights, money laundering, drug smuggling, child pornography and human trafficking. Callers can expect minimal wait times to speak to a tip line specialist. Average phone calls take less than five minutes to complete. The ICE-HSI Tip Line is open 24 hours a day, seven days a week.
This prosecution was a part of Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Casanova,” conducted by HSI, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Former Hidalgo County Sheriff’s Commander Enters Guilty PleaRead the Press Release
McALLEN, Texas – Jose A. Padilla, 54, of Weslaco, has entered a plea of guilty for one count of receipt of a bribe, announced United States Attorney Kenneth Magidson. Padilla was a former deputy commander at the Hidalgo County Sheriff’s Office and served under the leadership of former sheriff Guadalupe “Lupe” Trevino.
Padilla has admitted that during 2011 and 2012, he received cash from alleged drug trafficker Tomas “El Gallo” Gonzalez. In exchange for the cash payments, Padilla performed various tasks for Gonzalez and provided information to Gonzalez related to ongoing law enforcement activities.
U.S. District Judge Randy Crane accepted Padilla’s plea today and has set sentencing for July 17, 2104. At that time, he faces a maximum of 10 years in federal prison and a potential maximum fine of $250,000, or twice the amount he received.
He was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Four Kenyan Nationals Sentenced in Marriage Fraud ConspiracyRead the Press Release
HOUSTON – Four Kenyan nationals residing in Houston have been sentenced for conspiracy to commit marriage fraud, marriage fraud and visa fraud, announced United States Attorney Kenneth Magidson. Herman Ogoti, 53, Alfonso Ongaga, 36, Andrew Mokoro, 36, and Rebmann Ongaga, 33, were all convicted following a seven-day trial on Nov. 14, 2013. Ogoti and Alfonso Ongaga were also convicted of unlawful procurement of naturalization.
Today, U.S. District Judge Melinda Harmon sentenced Alfonso Ongaga and Andrew Mokoro to terms of 16 months in federal prison, while Ogoti and Rebmann Ongaga each received six-month terms. Judge Harmon also signed an order revoking the naturalization of Ogoti and Alfonso Ongaga, thereby stripping them of their fraudulently acquired U.S. citizenship.
A fifth defendant charged in the case, Andrew Mitema, 35, of Houston, pleaded guilty in advance of trial to conspiracy to commit marriage fraud and tampering with a witness. He is set for sentencing on April 23, 2014.
The defendants conspired together to recruit and pay U.S citizens to enter into fraudulent marriages for the purpose of receiving lawful permanent resident status or citizenship. Before entering the U.S., each of the defendants applied for student visas. All but Rebmann Ongaga were granted those visas and used them to enter the country. After his student visa was denied, Rebmann Ongaga, working with his other co-conspirators, flew a recruited U.S. citizen to Kenya for the sole purpose of conducting a sham wedding ceremony. After two days in Kenya, the woman returned to the United States. Several months later, Rebmann Ongaga entered the U.S. with a spouse visa.
After entering the country, the remaining defendants married recruited American citizens, most of whom were related to each other and to the citizen who traveled to Kenya. Each recruited woman was to be paid $5,000 for her participation in the sham marriages.
The scheme was uncovered Nov. 10, 2009, after two additional recruited women were detained at the U.S. Passport Office in Houston, suspected of committing passport fraud. They had told officials that they were traveling to Africa “to see the animals,” although they did not know where. Upon further questioning, they admitted they were both recruited to travel to Africa to marry the recruiters’ family members. At trial, surveillance video showed the two women entering into the passport office with a male, later identified as Mokoro.
The case was investigated by the Department of State – Diplomatic Security Service, Immigration and Customs Enforcement - Enforcement and Removal Operations and Department of Homeland Security - Fraud Detection and National Security. Assistant United States Attorneys Kebharu H. Smith and Suzanne Elmilady and Department of Justice Trial Attorney Ashlee McFarlane prosecuted the case.
Five Convicted in Massive Stash House CaseRead the Press Release
HOUSTON – Five men arrested last month in connection with the discovery of more than 100 illegal aliens in an area stash house have entered guilty pleas, announced United States Attorney Kenneth Magidson.
Jose Aviles-Villa, 34, Jonathan Solorzano-Tavila, 28, Antonio Barruquet-Hildeberta, 40, Jose Cesmas-Borja, 22, and Eugenio Sesmas-Borja, 20, were arrested March 19, 2014. On that date, 115 illegal aliens were discovered in a stash house on Almeda School Road in Houston. A two-count criminal information was filed April 8, 2014, charging the five men, all from from Michoacan, Mexico, with conspiracy to harbor and transport ilegal aliens and use of a firearm during and in relation to a crime of violence.
Today, all five defendants pleaded guilty to both counts as charged.
The convicted smugglers admitted they obtained substantial profits as a result of the conspiracy. They had established networks who brought the aliens into the U.S. illegally across the Southwest border. The illegal aliens were then held in stash houses while the smugglers arranged payment of remaining smuggling fees from their families.
While in the stash house, the conspirators seized the victim aliens’ clothes, shoes, phones and other possessions. The conspirators used guns, paddles, tasers and other equipment to control and prevent the illegal aliens from escaping from the stash house. They guarded the aliens with guns displayed in plain view and threatened to kill them by shooting them in the back of the head if they tried to escape.
In one specific instance, the conspirators contacted the mother of one of the stashed aliens and told her to pay an additional $13,000 for the victim and her two children. She was advised that if she did not pay, they would “make her family disappear and make her family pay.”
Sentencing has been set for July 30, 2014. At that time, they each face up to 10 years in federal prison and a $250,000 fine for the conspiracy conviction as well as a mandatory minimum of five years for using a firearm which must be served consecutively to any other prison term imposed.
They will all remain in custody pending that hearing.
The case was investigated by Homeland Security Investigations with the assistance of the Houston Police Department. Assistant United States Attorney (AUSA) Julie Searle and Special AUSA Rick Bennett are prosecuting.
Smuggler Gets Enhanced SentenceRead the Press Release
McALLEN, Texas ‐ Demetrio Vallejo, 41, of Edcouch, has been ordered to federal prison for nearly five years as a result of his conviction of smuggling undocumented aliens, announced United States Attorney Kenneth Magidson. Vallejo pleaded guilty Oct. 11, 2013.
Today, U.S. District Judge Randy Crane sentenced Vallejo to a sentence of 57 months imprisonment. The sentence was enhanced as the court took into consideration he had sexually assaulted a female undocumented alien and that a dangerous weapon was used during the assault. Following Vallejo’s prison term, he was further ordered to serve a three-year term of supervised release.
On June 29, 2013, deputies with the Hidalgo County Sheriff’s Office (HCSO) arrived at house in Edcouch. At that time, they encountered Vallejo and a female undocumented alien. The investigation resulted in the discovery that Vallejo had driven the undocumented alien and other undocumented aliens to a house where they were harbored and would also bring them food.
Co-defendants Esther Cano, 33, and George Love, 37, both of Weslaco, received respective sentences of 24 and six months for their roles in the alien smuggling conspiracy. Cano’s sentenced was enhanced because she had threatened two undocumented aliens after being arrested.
The investigation leading to the charges was conducted by Homeland Security Investigations and HCSO. Assistant United States Attorneys Kimberly Ann Leo and Kristen Rees prosecuted the case.
Former Hidalgo County Sheriff Pleads GuiltyRead the Press Release
McALLEN, Texas - Guadalupe Trevino, aka Lupe Trevino, 64, of McAllen, has entered a guilty plea a criminal information charging him with conspiracy to commit money laundering, announced United States Attorney Kenneth Magidson. Trevino was the former sheriff of Hidalgo County.
The investigation revealed that during 2011 and 2012, Trevino received cash contributions for his election campaign from alleged drug trafficker, Tomas “El Gallo” Gonzalez. Today, Trevino admitted he accepted the money, knowing it was from illegal activities. He admitted he accepted the monies directly and through others as donations to assist with his 2012 election campaign. Some of the monies received were subsequently deposited into bank accounts Trevino controlled and were comingled with other funds.During and after the transactions, Trevino and others acted to disguise and conceal the nature, location, source, ownership and control of the currency by filing false Candidate/Officeholder Campaign Finance Reports and producing other documents.
U.S. District Judge Micaela Alvarez, accepted the plea today and has set sentencing for July 17, 2014. At that time, Trevino faces up to 20 years in federal prison and $500,000 or twice the value of the property involved in the transaction.
On Friday, April 14, 2014, Trevino’s former chief of staff and campaign treasurer, Maria Patricia Medina, pleaded guilty to misprision of a felony, admitting she assisted Trevino in the concealment of the donations by falsifying election records. She faces up to three years in federal prison and a potential fine of $250,000.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration, Texas Department of Public Safety, Rangers Division and Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Former Bryan Chiropractor and Clinic Owner Sentenced in $3 Million Automobile Insurance ScamRead the Press Release
HOUSTON – Chase Lindsey, 36, and Brittany Jessie, 25, have been sentenced to federal prison for engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, announced United States Attorney Kenneth Magidson. Lindsay and Jessie previously entered guilty pleas to conspiracy to defraud the insurance companies.
Jessie and Lindsey admitted they participated in a conspiracy along with Earlie Dickerson, 41, Marion Young, 43, and Edward Graham, 37, to defraud numerous auto insurance companies. The scheme involved the creation of fraudulent chiropractic bills for treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
Today, U.S. District Judge Kenneth Hoyt handed Lindsey and Jessie respective terms of 24 and 30 months in federal prison. Judge Hoyt further ordered Lindsey and Jessie to pay restitution to the insurance companies totaling $1.1 million and $1 million, respectively. Both will also serve two-year-terms of supervised release following completion of their prison terms.
Sanjoh & Associates represented clients allegedly injured in auto accidents. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy. Jessie sometimes cashed checks and took the cash to Lindsey for payment.
For the clients he actually evaluated, Lindsey routinely recommended medically unnecessary therapeutic treatments. In some instances, Lindsey either never evaluated the patient or did so after the patient had already begun receiving treatments. The treatments, if done, were done by unlicensed, untrained and unqualified individuals whom Lindsey never supervised. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. He prescribed the treatments be done 3-4 times per week for 5-6 weeks, but patients usually went once a week for 3-4 weeks. Lindsey also provided no follow-up treatments.
Jessie was instructed on which treatments to mark down in order for the billing to be approved and to alternate treatments on the billing so it did not look suspicious. At one point, Jessie provided a set of treatment guidelines to an employee at Private Chiropractic Care to follow which were needed for the billing of patients. Jessie instructed that employee to mark down patient treatments, even if the treatments were not done, because it was necessary for billing. Jessie further instructed the employee to have the patients initial off next to the fraudulent treatments as if they received them. Jessie also fraudulently marked down treatments and the patient's pain levels on treatment forms at the Sanjoh & Associates office when the patient had not received the treatment and prepared the false chiropractic billing statements at law firm.
The co-conspirators used four chiropractic clinics in the scheme. Lindsey started working at the first clinic, Texas Avenue Chiropractic Clinic, in February 2007 and continued until it closed on or about Sept. 1, 2007. After that, Lindsey was listed as the only chiropractor at H & E Chiropractic and Private Chiropractic Care, two businesses also involved in the conspiracy. After Private Chiropractic Care shut down in September 2009, Lindsey and others agreed to continue the fraud scheme by sending the law firm clients to Lindsey Chiropractic Care - Lindsey's chiropractic clinic. Clients were sent there until search warrants were executed in November 2009. Dickerson was the office manager of Sanjoh & Associates Law Firm. Jessie worked both at Sanjoh and Associates, as a tech at the chiropractic clinics and was the owner of Private Chiropractic Care. All the defendants reside in Bryan where all the businesses are also located.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Co-conspirators recruited individuals allegedly involved in auto accidents to be represented by the law firm who were then sent to Lindsey to be evaluated. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals. Lindsey knew that most of the treatments were not being performed. Nonetheless, Lindsey allowed false and fraudulent chiropractic bills to be created under his name from each of the four clinics for treatments which were never performed.
The fraudulent bills were used as support for settlement demand letters sent to auto insurance companies which caused the insurance companies to issue settlement checks. Lindsey and Jessie acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.
Lindsey and Jessie were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Young entered a guilty plea to one count of conspiracy and one count of wire fraud, while Graham and Dickerson were convicted following an eight-day trial of the conspiracy and 30 counts of mail fraud. Those three defendants are scheduled for sentencing on July 28, 2014.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney (AUSA) Al Balboni and Special AUSA Adrienne Frazior are prosecuting the case.Former Hidalgo County Sheriff’s Office Chief of Staff Pleads GuiltyRead the Press Release
McALLEN, Texas - Maria Patricia Medina, 40, has entered a guilty plea to one count of misprison of a felony, announced United States Attorney Kenneth Magidson. Medina was the former chief of staff for former Hidalgo County Sheriff Lupe Trevino.
The investigation revealed that during 2011 and 2012, the former sheriff received cash contributions from alleged drug trafficker, Tomas “El Gallo” Gonzalez. Medina, who was the chief of staff and campaign treasurer, admitted she assisted Trevino in the concealment of the donations by falsifying election records.
Chief U.S. District Judge Ricardo H. Hinojosa accepted the plea today and has set sentencing for July 3, 2014. At that time, Medina faces up to three years in federal prison and a potential fine of $250,000.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Donna Man Charged with Hacking into Multiple Local ServersRead the Press Release
McALLEN, Texas – Fidel Salinas, 27, of Donna, has been charged in a superceding federal indictment with new computer-hacking charges, announced United States Attorney Kenneth Magidson.
Salinas was originally indicted in October of last year on one charge of attempting to gain unauthorized access to the Hidalgo County web server and, as a result, causing damage and loss of more than $5,000. Further investigation has resulted in the return of a superseding indictment, returned April 2, 2014, alleging 14 additional charges. He is excepted to make his initial appearance before U.S. Magistrate Judge Peter E. Ormsby today at 8:45 a.m.
The additional counts allege that between November 2011 and January 2012, he repeatedly tried to gain unauthorized access to, cause damage to and obtain information from web servers hosting websites for Hidalgo County, La Joya Independent School District and The Monitor newspaper. Salinas allegedly belonged to a conspiracy related to the computer-hacking group “Anonymous” and that he entered into a chat room belonging to Anonymous’ Operation Anti-Security.
The FBI arrested Salinas in Donna 2013 upon the filing of a criminal complaint. According to that complaint, during the late evening of Jan. 4, 2012, through early morning Jan. 5, 2012, Salinas made more than 14,000 hacking attempts to the administration management page of the Hidalgo County web site server. This allegedly resulted in true administrators being unable to access their web site and the county incurring losses of more than $10,000 in responding to the attack. Following that alleged hacking incident, the FBI discovered Salinas had allegedly posted a quote used by Anonymous and other “hacktivist” groups on his Facebook page.The maximum sentence varies for each count as charged in the indictment, reaching a maximum of up to 10 years in federal prison upon conviction on the most serious charge.
Each of the charges carry a maximum sentence of up to 10 years in federal prison, upon conviction.
The FBI is investigating with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
A complaint or indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.More Convictions in Relation to Progreso Bribery CaseRead the Press Release
HOUSTON – Jose Vela, 65, and his Michael Vela, 30, have entered guilty pleas to conspiracy and bribery concerning programs receiving federal funds, announced United States Attorney Kenneth Magidson. Also pleading guilty today in a separate, but related case was Orlando Vela, 33.
Jose and Michael Vela were originally charged along with Omar Vela and others based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. Today, they admitted they participated in the scheme from 2004 through 2013. Michael, Omar and Orlando are brothers and Jose is their father. Omar is the mayor of Progreso, while Michael was the president of the Progreso Independent School District Board (PISD) of Trustees.
From 2004 through 2013, PISD received more than $1 million per year in federal program grants and funds from the U.S. Department of Education. In order to obtain contracts from PISD or from the City of Progreso, contractors were required to pay bribes to Vela and others.
The Velas were able to extract bribes from contractors as a result of their political control of Progreso and PISD. As government officials, Michael and Omar had a level of control over local government. In addition, Jose Vela controlled the PISD School Board by rewarding board members who voted as he directed with bribe money. Through this control over the PISD Board, Jose Vela caused contracts with PISD to be awarded to contractors who were willing to pay him bribes and kickbacks in return. Omar and Michael Vela assisted their father by gathering bribe payments from contractors and delivering the payments to him. They were then given a portion of those monies.According to the plea agreement, during the time frame of the conspiracy, the Velas required a local architect, his firm, a construction company and the school board attorney to pay bribes and kickbacks to Vela and others in order to obtain work with PISD or the City of Progreso. In total, Jose, Omar and Michael extracted more than $300,000 in bribe payments.
In a separate, but related case, Orlando Vela entered a guilty plea to a criminal information charging him with theft from a program receiving federal funds. He is employed by PISD as a risk manager. In this role, he is responsible for directing and managing the school district’s risk management, loss control and safety programs. On May 11, 2012, Orlando Vela formed a company called Borderline Office Supplies which purported to be in the business of supplying office and janitorial products to school districts.
Between May 2012 and March 2013, Orlando Vela submitted invoices to PISD for products that Borderline did not actually supply to PISD. The business bank account showed no purchases of the products that it claimed to have resold to PISD. The payments on the fraudulent invoices were approved by PISD’s business manager, Orlando Vela’s wife, and totaled $12,874.42.
On Aug. 12, 2013, Orlando Vela received a subpoena requesting documents related to his business’s alleged purchases of products and subsequent sales to PISD. In response, he provided invoices from a company in Mexico that purported to show that Borderline had purchased the products in Mexico and resold to PISD. However, upon further investigation, agents learned those invoices were in fact fraudulent.
U.S. District Judge David Hittner, who accepted the pleas today, has set sentencing for July 25, 2014. At that time, all face up to 10 years in federal prison for the bribery involving federal programs convictions. Jose and Michael Vela also face up to five years in federal prison for the conspiracy. All convictions also carry as possible punishment a maximum fine of $250,000. All were permitted to remain on bond pending their hearings.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
Houston Man Convicted of Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 22, of Houston, has entered a plea of guilty on two charges of trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson.
According to the plea agreement, from January through July 2012, Harris forced young girls, who he knew were minors, into prostitution by using force and intimidation. Harris stipulated that in order to gain the trust of victims, whom he met on social networking sites, he would tell them he was going to help them become models. Instead, he picked them up, took them to motel rooms and then forced them to have sex with him. Harris would also deprive them of their cell phones, thereby cutting off their communication with the outside world.
Harris used violence to keep the minors cooperating with him. In one instance, he deprived a victim of food for more than four days because he did not believe she was servicing his clients well enough. He also supplied her with marijuana and alcohol. Another victim was beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
The victims were photographed and their images were posted in online ads for prostitution. Harris kept all monies they earned.
U.S. District Judge David Hittner accepted the guilty pleas today and set sentencing for July 7, 2014. At that time, Harris faces a minimum of 10 years and up to life imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Harris also faces a maximum of life on supervised release and he will be required to register as a sex offender. He was ordered to remain in custody pending that hearing.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney 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."
Zeta Leader “Talivan” Pleads GuiltyRead the Press Release
McALLEN, Texas - Ivan Velasquez-Caballero, aka Talivan or 50, has entered guilty pleas to conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments, announced United States Attorney Kenneth Magidson.
Velasquez-Caballero, 44, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in the United States since he was extradited to Laredo on Nov. 21, 2013.
The charges stem from a Feb. 17, 2010, indictment charging Velasquez-Caballero and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U. S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges. To date, 15 others have been convicted by plea or trial.
Velasquez-Caballero was a plaza boss for Nuevo Laredo in 2004 under the Gulf Cartel and one of the leaders of the Zetas drug cartel from 2005 until his arrest by Mexican authorities in August 2012. The drug conspiracy involved the importation and distribution of 150 kilograms or more of cocaine and 1000 kilograms or more of marijuana from Mexico into the United States. Millions of dollars in drug proceeds were also exported from the United States to Velasquez-Caballero and others in Mexico.
U.S. District Judge Micaela Alvarez, accepted the pleas today and set sentencing for July 18, 2014, at 10:30 a.m. At that time, he faces a minimum of 10 years and up to life as well as a $4 million fine for the drug conspiracy charge plus a maximum sentence of 20 years and a $500,000 fine for the money laundering conspiracy.
The Organized Crime Drug Enforcement Task Force investigation is being conducted by the Drug Enforcement Administration, and the Laredo Police Department with the assistance of Immigration and Customs Enforcement’s BEST task force, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno is prosecuting.
Multimillion Dollar Cocaine Conspiracy Results in Significant SentenceRead the Press Release
LAREDO, Texas – Jose Gomez-Ramirez, 32, of Nuevo Laredo, Mexico, has been ordered to prison for his role in a conspiracy to possess with the intent to distribute cocaine, announced United States Attorney Kenneth Magidson. Gomez-Ramirez pleaded guilty in May 2013.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty plea, handed Gomez-Ramirez a sentence of 108 months in federal prison to be followed by a five-year-term of supervised release. He was also ordered to forfeit $5,303,660.
At the hearing, additional testimony was presented regarding his role in the organization. He had transported and delivered 123 kilograms of cocaine to a truck driver who was then to transport the cocaine to Dallas on Feb. 11, 2011. According to court documents, the drug trafficking organization for which Gomez-Ramirez worked transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas from Nuevo Laredo. The organization also attempted to transport more than $1.4 million in cash from Atlanta, Ga., to Nuevo Laredo.
Gomez-Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant U.S. Attorneys James Hepburn and Elizabeth Rabe are prosecuting.
Spring Man Ordered to Prison for Two Charges Involving Child PornographyRead the Press Release
HOUSTON - Garrett Michael Chase, 38, has been sentenced to more than 11 years in federal prison for distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. He pleaded guilty Oct. 23, 2013.
Today, U.S. District Judge Gray Miller handed Chase a sentence of 135 months for the distribution charge and another 120 months for possession of child pornography. The sentences will be served concurrently. He was further ordered to serve 25 years on supervised release following completion of the prison term. He will also be required to register as a sex offender.
Chase was identified through an undercover operation in which he was linked to an IP address sharing 25 files of identified child pornography. One of those files was a 52-second video depicting a female child, approximately nine years of age, partially nude and sitting in the lap of an adult male. In the video, she is shown touching the male’s genitalia while he fondles her.
A search warrant was executed on his Spring residence which revealed computers and other electronic media. At that time, he admitted to downloading child pornography images and videos. He would save them to a shared folder making them available to others using peer-to-peer software. Chase admitted he had been viewing child pornography since high school and that he last viewed child pornography just two weeks prior to the execution of the warrant.
Chase further admitted to setting up a video camera to capture images/video of a 14-year-old who had stayed in his home. He continued to have thoughts of her and admitted to taking a video of her without her shirt. He instructed investigators where they could find the video on his computer.
Forensic examination of the computers revealed 57 videos containing child pornography.
Chase was permitted to remain on bind and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service investigated.
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."
Dallas Man Guilty of Straw Purchasing Firearms and Other ChargesRead the Press Release
LAREDO, Texas – Martin Lopez-Villela, 51, a legal permanent resident of Dallas, has entered a plea of guilty to conspiracy to defraud, smuggling goods from the United States and making a false statement during the purchase of firearms, announced United States Attorney Kenneth Magidson.
A straw purchase, as it is commonly referred, occurs when the true purchaser solicits a middleman to conduct a firearm transaction for him. The true purchaser does not want to reveal his identity, frequently because federal law prohibits him from purchasing firearms.
On or about Feb. 13, 2014, Lopez-Villela drove a 2007 Chevrolet Avalanche to the Lincoln Juarez Bridge in Laredo, attempting to exit the U.S. and enter Mexico. At that time, he was questioned and he gave a negative declaration for firearms and ammunition. Upon inspection, however, agents and officers discovered two .22 caliber semi-automatic firearms and five boxes that contained 300 rounds of various handgun ammunition.
Lopez-Villela was traveling to San Luis Potosi, Mexico, to deliver the firearms and ammunition. He admitted that while in Dallas, he purchased the two firearms from a firearms dealer and was to transport them and the ammunition into Mexico. He expected to be paid a total of $450 upon delivery.
U.S. District Judge Diana Saldana will sent a sentencing date in the near future. At sentencing, he faces up to 10 years in federal prison for the straw purchasing conviction, as well as a maximum of five and 10 years, respectively, for the conspiracy and smuggling charges. All charges also carry a possible $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Customs and Border Protection and Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting.
Weslaco Man Convicted of Marijuana TraffickingRead the Press Release
LAREDO, Texas – Santiago Martinez, 37, of Weslaco, has entered a guilty plea to conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 5,000 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling “low boy” trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased the marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
Martinez will remain in custody pending his sentencing hearing to be set in the near future. At that time, he faces a mandatory minimum sentence of 10 years and up to life in prison as well as a $10 million fine for the drug conspiracy. The United States is also seeking a money judgment in the amount of $11,555,000 based on the amount of marijuana transported by the organization during the span of the conspiracy.
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
Sugar Land Resident Ordered Detained on Child Pornography ChargesRead the Press Release
HOUSTON – Glenn Casey Portwood, 52, of Sugar Land, has been ordered held in custody pending trial on child pornography charges, announced United States Attorney Kenneth Magidson.
Portwood was charged in a sealed indictment, returned March 20, 2014, for two counts of receipt of child pornography, one count of attempted distribution of child pornography and one count of possession of child pornography. He was taken into custody Tuesday, April 2, 2014. Today, he appeared before U.S. Magistrate Judge Frances Stacy, who found probably cause he committed the crimes charged against him. Judge Stacy further noted him to be a danger to the community and a flight risk and ordered he remain in federal custody pending further criminal proceedings. He is currently set for trial May 19, 2014.
Portwood came to the attention of law enforcement on Sept. 12, 2012, when an officer was investigating peer-to-peer file sharing programs on the Internet. According to allegations, he determined that a computer was sharing child pornography and traced that computer to the Internet account of Portwood.
On Sept. 26, 2012, officers executed a search warrant at Portwood’s house. At that time, officers found a Honda parked in the driveway which was registered to Portwood and inside its trunk was a black backpack, according to allegations. Officers allegedly discovered several CDs, an external hard drive and two laptop computers inside the bag. According to the charges, one of the CDs was labeled “VCKY 2004” and officers found a folder named “Vicky” with movie files containing child pornography. Four of the CDs allegedly contained child pornography, while a fifth CD depicted adult pornography involving women who were sleeping or drugged, according to the charges. The “Vicky” series is a widely traded child pornography series on the Internet.
At the detention hearing today, the government contended that upon forensic examination, images of child pornography were found on both of the laptops, to include approximately 325 images and 70 videos of child pornography along with approximately 2000 images of child erotica. In addition, the external hard drive was found to contain approximately 50,000 child pornography images and 1300 child pornography videos, according to the allegations. Officers allegedly found images and videos depicting babies and toddlers.
If convicted, Portwood faces a minimum of five and up to 20 years imprisonment for the receipt and distribution charges in addition to a maximum of 10 years on the possession charge. All charges, upon conviction, also carry a possible $250,000 fine. Upon completion of any prison term imposed, Portwood also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges against Portwood are the result of an investigation conducted by the Sugar Land Police Department as part of the Houston Metro Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Six Arrested in Multiple Drug/Firearms IndictmentsRead the Press Release
LAREDO, Texas – Three separate indictments have been partially unsealed following the arrest of six Laredo residents on a variety of charges including methamphetamine and/or cocaine trafficking and felon in possession of a firearm, announced United States Attorney Kenneth Magidson.
A grand jury returned three sealed indictments on Feb. 18, 2014. The first alleges that a drug trafficking organization had been transporting 50 grams or more of methamphetamine since January 2013. The organization allegedly coordinated the transportation, delivery and distribution of multi-ounce quantities of methamphetamine and heroin to San Antonio. Transporters for the organization allegedly concealed the drug by taping it to their bodies or hiding it within a vehicle. Personal use amounts of the drugs were distributed in the greater-Laredo area, according to the charges. Santos Arturo Ortiz, 27, Kenneth John Swisher, 56, Armando Bautista Jr., 28, and Alan Salinas, 27, all of Laredo, were arrested today for their alleged roles in that conspiracy.
Also taken into custody today was Agustin Zuniga, 37, of Laredo. He is charged in the second partially unsealed indictment with conspiracy and possession with the intent to distribute cocaine.
The third indictment unsealed today alleges Jose Casarez, 33, of Laredo, was a felon in possession of a firearm.
Four of the six arrested today are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga, at which time the government expects to request their detention pending further criminal proceedings. Ortiz and Bautista were taken into custody in San Antonio and Dallas, respectively. They will make initial appearances there and are expected to be transported to Laredo in the near future.
For the methamphetamine conspiracy, Ortiz, Swisher, Bautista and Salinas face a mandatory minimum sentence of 10 years and up to life in in prison and a possible $10 million fine. Zuniga faces up to 20 years in federal prison and a possible $1 million fine, if convicted of the charge he faces, while Cesarez will face up to 10 years in prison and a $250,000 fine, upon conviction.
The cases are the result of an investigation led by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Elizabeth Rabe 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.Dual Chinese/U.S. Citizen Sentenced in Money Laundering SchemesRead the Press Release
CORPUS CHRISTI, Texas - Kin Fu Chow, 47, of Chicago, Ill., has been ordered to prison for his involvement in a money laundering conspiracy involving alien smuggling activity, announced United States Attorney Kenneth Magidson. Chow pleaded guilty to one count of money laundering on Jan. 2, 2014.
Today, Senior U.S. District Judge Hayden Head handed Chow a sentence of 15 months in federal prison to be immediately followed by three years of supervised release.
Chow was a leader in a large money laundering conspiracy operating in the Southern District of Texas. The money laundering was accomplished through other illegal activity including alien smuggling and drug trafficking.
Chow purchased a 1975 Cessna 310R aircraft to enable the criminal organization to smuggle illegal money, aliens and drugs. He was responsible for the smuggling of Chinese nationals into the United States via Mexico. Chow’s co-conspirators were arrested in 2010 and the aircraft was seized as part of their prosecution. At the time of their arrest, Chow then fled to China. He returned to the U.S. on an aircraft that landed in Seattle, Wash., in October 2013, at which time he was immediately arrested.
Chow will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Sky’s the Limit.” The investigation was led by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration and the Corpus Christi Police Department. Assistant United States Attorney Julie K. Hampton is prosecuting.
Progreso Mayor Convicted in Bribery SchemeRead the Press Release
McALLEN, Texas - Omar Leonel Vela, 36, has entered a plea of guilty to conspiracy and bribery concerning programs receiving federal funds, announced United States Attorney Kenneth Magidson.
Vela, the mayor of Progreso was originally charged along with several others based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. Today, Vela admitted he participated in the scheme from 2004 through 2013.
The school district for Progreso is the Progreso Independent School District (PISD). From 2004 through 2013, PISD received more than $1 million per year in federal program grants and funds from the U.S. Department of Education. In order to obtain contracts from PISD or from the City of Progreso, contractors were required to pay bribes to Vela and others.
Vela and others were able to extract bribes from contractors as a result of their political control of Progreso and PISD. Vela was a government official, giving him a level of control over local government. Vela and others facilitated the scheme by gathering bribe payments from contractors and delivering the payments, of which he would then receive a portion.
According to the plea agreement, during the time frame of the conspiracy, Vela and others required a local architect, his firm, a construction company and the school board attorney to pay bribes and kickbacks to Vela and others in order to obtain work with PISD or the City of Progreso. In total, Vela and others extracted more than $300,000 in bribe payments.
In addition, from April 2009 to December 2012, Vela instructed the owner of a plumbing and electrical supply company to provide fraudulent invoices to PISD and the City of Progreso for products they did not provide. When the invoices were paid, the owner returned the funds to Vela, resulting in more than $14,000 in kickbacks.
The charges against the others in this case remain pending. They are presumed innocent unless and until convicted through due process of law.
U.S. District Judge David Hittner, who accepted the pleas today, has set sentencing for July 25, 2014. At that time, Vela faces up to five years in federal prison for the conspiracy and another possible 10 years for the bribery involving federal programs conviction. Both convictions carry as possible punishment a maximum fine of $250,000. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
El Canonazo Store Owner and Four Others Sentenced in Firearms Smuggling CaseRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss El Canonazo sporting apparel and firearm accessories stores in Laredo, has been ordered to prison following his conviction of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. A federal jury in Laredo convicted Gonzalez Jan. 9, 2014, after a three-day trial and approximately nine hours of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Gonzalez a 63-month sentence. Also sentenced today were Juan Carlos Ordonez-Guzman, 28, of Nuevo Laredo, Mexico, Juan Fernando Guzman Jr., 35, a U.S. citizen living in Nuevo Laredo, Jorge Sosa, 45, and Leticia Moncada Infante, 57, both of Laredo, who all pleaded guilty for their roles in the offense. Ordonez-Guzman received a 36-month sentence, while Sosa, Guzman and Infante were each sentenced to 24-month terms of federal imprisonment.
At the hearing, additional testimony was presented from Sosa, who testified that Gonzalez had directed him to provide ammunition to Mexican couriers. Judge Marmolejo assessed Gonzalez a $7,000 fine, payable immediately. Gonzalez and the others will also be required to serve a term of three years of supervised release following completion of the prison. Ordonez-Guzman is expected to face deportations proceedings following completion of his prison term.
“Today’s sentencing sends a clear message to individuals who sell, transport and facilitate the attempted smuggling of weapons, ammunition and other related items,” said Ayala. “Preventing these items from being acquired from or delivered to the wrong hands is a top priority for HSI. Our special agents will continue working jointly with our law enforcement partners and utilize our expertise in export enforcement to keep our citizens safe and secure.”
According to testimony at trial, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to Infante at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed Infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them.
An HSI special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Sosa, a former employee of Gonzalez, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifle magazines to Guzman at Sosa’s personal storage unit. Sosa and Guzman testified that both met at Sosa’s storage unit on Dec. 7, 2012, where Guzman picked up five boxes containing a total of 360 magazines. Guzman was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa. The undercover recording had Gonzalez saying “this is the plan” before instructing Sosa to move the magazines to the storage unit, where Guzman would pick them up.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer. Gonzalez reiterated that story today.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Evelyn Linaldi-Delfin and Jesus Roberto Cisneros-Villarreal, who also pleaded guilty in the case are set for sentencing April 8, 2014. They are in custody pending that hearing.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
Previously released on bond, Gonzalezwas taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Guzman and Ordonez-Guzman will remain in custody pending their transfer, while Sosa and Moncada were allowed to remain on bond and voluntarily surrender in the near future.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
DME Owner Convicted on All CountsRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been convicted today of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. The jury returned its verdicts this afternoon following three days of trial and less than two hours of jury deliberation.
Tellison, the director of operations, chief compliance officer and co-owner of Texas Durable Medical Company was charged in March 2013 with health care fraud and aggravated identity theft in relation to the submission of approximately $1.48 million worth of enteral nutrition and enteral feeding supply claims to Medicare.
During trial, jurors heard the testimony of six Medicare beneficiaries detailing that they did not need tube feedings and did not receive tube feeding supplies despite Tellison billing thousands of dollars for those items. They also heard from seven Houston area physicians who stated they did not order tube feedings or tube feeding supplies for the Medicare beneficiaries and that they did not authorize Tellison to use their names and UPIN numbers to submit claims to Medicare and Medicaid for those items.
The government presented evidence including many forms that had been signed by Tellison indicating that Medicare beneficiaries needed tube feedings and tube feeding supplies. However, evidence demonstrated she did not order those items for delivery despite billing Medicare for the 29,113 tube feeding supply kits.
Special Agents from the Railroad Retirement Board (RRB) and the FBI testified that in a 2011 interview, Tellison admitted both knowledge of the false and fraudulent claims and the insufficient inventory for delivery to Medicare beneficiaries. A Forensic accountant from the FBI further testified that Tellison not only failed to purchase the 29,113 tube feeding supply kits, but that she also failed to purchase sufficient quantities of nutritional products for delivery. Various representatives from Medicare and Medicaid contractors provided supporting testimony about how these federally funded programs operate and the claims submitted by Tellison.
U.S. District Judge Lee Rosenthal, who presided over the trial, permitted Tellison to remain on pending sentencing to be held later this year. At that time, she faces up to 10 years in federal prison on each count of health care fraud and a mandatory two-year-term for each count of aggravated identity theft which must be served consecutively to each other and to any other prison term imposed.
The investigation into Tellison was the result of a joint investigation conducted by agents from the FBI, RRB - Office of the Inspector General, Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Julie Redlinger and Tina Ansari prosecuted the case.
Two Charged in Tax Fraud Scheme Targeting More Than 600 VictimsRead the Press Release
HOUSTON - A 13-count federal indictment has been returned against Tanzanian national Amon Rweyemamu Mtaza and Dion Hatch, of Houston, alleging a stolen identity refund fraud (SIRF) scheme, announced United States Attorney Kenneth Magidson.
Hatch, 40, was taken into custody this morning and is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy today at 2:00 p.m. Mtaza, 38, was arrested upon the filing of a criminal complaint March 3, 2014. He appeared for a detention hearing Thursday, March 28, 2014, at which time he was ordered into custody pending further criminal proceedings.
The indictment, returned March 26, 2014, charges both defendants with one count of conspiracy to commit wire fraud, six counts of wire fraud and six counts of aggravated identify theft.
Mtaza and Hatch engaged in a sophisticated tax fraud/identity theft case involving the filing of hundreds of fraudulent tax returns, according to allegations. Mtaza and Hatch allegedly used stolen and unlawfully obtained personal identity information, including the names and Social Security numbers, of true persons to prepare fraudulent U.S. income tax returns. The suspects electronically filed the fraudulent federal income tax returns in order to generate and obtain tax refunds to which they were not entitled, according to the charges. Mtaza and Hatch then either directed the fraudulently obtained tax refunds to be deposited onto reloadable debit cards or disbursed as U.S. Treasury checks.
The fraudulently obtained refunds were used to obtain cash and goods for their own benefit, according to the allegations. The tax refund filings attributed to this group allegedly account for an excess of $1.8 million in losses and more than 600 victims.
Each conviction of conspiracy to commit and substantive counts of wire fraud carry a possible 20-year prison sentence as well as a possible $250,000 fine. If convicted of aggravated identify theft, the defendants also face an additional mandatory two-year prison term on each counts which must be served consecutively to any other prison term imposed.
The investigation leading up to the arrest was conducted by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Ordered to Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON – Former Houston resident Walter Ryan Macapaz has been ordered to prison along with Houston businessman Tony David Maldonado and attorney and former mortgage loan officer Buffy Marie Lawrence for their roles in a scheme to defraud residential mortgage lenders of more than $22 million in loans, announced United States Attorney Kenneth Magidson along with FBI Special Agent in Charge Stephen L. Morris and Internal Revenue Service - Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz.
Today, U.S. District Judge Gray Miller, who accepted the guilty pleas, handed Macapaz, 36, a sentence of 108 months in federal prison, while Maldonado, 33, and Lawrence, 42, will serve respective sentences of 24 and 12 months. All three defendants will be required to serve a term of three years of supervised release following completion of their prison terms. In handing down the sentences, Judge Miller noted the seriousness of the offenses.
A fourth defendant, attorney and former title company escrow officer Lisa Carol Ross, 52, of Missouri City, also pleaded guilty in the case and was sentenced to 13 months in prison on May 17, 2013.All were indicted in 2011 for a scheme to defraud residential mortgage lenders. The conspirators used fraudulent documents to help borrowers qualify for mortgage loans to purchase condominium units in the Commerce Towers building located on Main Street in downtown Houston as well as residential homes in the Houston area. The documents had false and misleading information about the borrowers’ income, assets, liabilities, employment status, bank deposits, rental payments, intent to use properties as a primary residence and source of funds used to close the real estate transactions.
Macapaz and Lawrence have admitted they knowingly arranged for borrowers to submit the false documents to mortgage lenders in order to obtain loans, while Maldonado has admitted he knowingly created some of the false documentation.
Previously released on bond, Macapaz was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Maldonado and Lawrence 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 investigation leading to the charges was conducted by the FBI, IRS-CI, Federal Deposit Insurance Corporation – Office of Inspector General and Houston Police Department. Assistant United States Attorney John Lewis is prosecuting the case.
Katy Man Charged with Multiple Crimes Including Possession of Explosive MaterialsRead the Press Release
HOUSTON – Robert James Talbot Jr., 38, has been arrested and charged by criminal complaint alleging attempted interference with commerce by robbery, solicitation to commit a crime of violence and possession of an explosive material, specifically Composition 4 (C4), announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
Talbot, formerly of Batavia, N.Y., and now a resident of Katy, was arrested yesterday following an eight-month undercover investigation by the FBI Joint Terrorism Task Force (JTTF). He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy today at 10:00 a.m. or 2:00 p.m., at which time the U.S. expects to request his detention pending further criminal proceedings.
According to the complaint, filed late yesterday, Talbot espoused his desire to recruit five to six other like-minded individuals to blow up government buildings, rob banks and kill law enforcement officers. Talbot allegedly created a Facebook page titled “American Insurgent Movement” (AIM). The complaint alleges he described that page as:
“a Pre-Constitutionalist Community that offers those who seek True patriotism and are looking for absolute Freedom by doing the Will of God. Who want to restore America Pre-Constitutionally and look forward to stopping the Regime with action by bloodshed.”
The criminal complaint further alleges Talbot made several postings on the page between Jan. 30, 2014, and Feb. 9, 2014, seeking people interested in “walking away from your life…to stop the regime.”
On March 15, 2014, Talbot allegedly posted again to the page:
“In a few weeks me and my team are goin active for Operation Liberty…I will not be able to post no more. We will be the revolution, things will happen nation wide or in the states. They will call us many names and spin things around on media. Just remember we fight to stop Marxism, liberalism, Central banking Cartels and the New World Order. I will try to find someone to take over this community page, but most of the guys who are admins are part of my unit. I will have a website up in 2 months…The funding is unlimited since the banking cartel will be forced to fund our movements.”
The complaint alleges that on March 20, 2014, Talbot conducted surveillance of multiple financial institutions in the Northwest Houston area, monitoring the movements of people entering and exiting the banks. Talbot also allegedly followed an armored car, watching how personnel exited the vehicle and whether the carrier was picking up or dropping off bags.
On March 22, 2014, Talbot sent $500 as a down payment for the explosive devices he had requested, according to the complaint.
Two days later, Talbot allegedly claimed to have quit his job and was preparing for an upcoming armored car robbery. On March 27, 2014, Talbot and others met at a storage facility in Houston with the intent to conduct an armor car robbery that morning, according to allegations. Talbot allegedly provided detailed maps of the target financial institution as well as escape routes in order to quickly evade law enforcement. The complaint further alleges he placed two explosive devices made of C4 into his black backpack and allegedly stated he would place the explosive device on the vehicle. He further instructed the group how to block the armor car with their vehicle to prevent it from leaving the location and provided a “manifesto” which was read to the group. “We must rebel. There is no other option no. Blood and bullets are the only two things that will change this world, short of divine action.”
While en route to conduct the armored car robbery, Talbot was arrested and taken into custody by the FBI Houston Division Special Weapons and Tactics team.
If convicted, he faces up to a maximum penalty of 20 years imprisonment and a possible $250,000 fine for the attempted robbery as well as another 10 years imprisonment and $100,000 fine for each of the remaining charges.
This case was investigated by the FBI’s JTTF, which includes personnel from the FBI, U.S. Coast Guard Investigative Service, U.S. Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, Houston and Houston Metro Police Departments and the Harris County Sheriff's Office. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Convicted of Hoax Bomb ThreatRead the Press Release
HOUSTON - Cody Matthew Tackett, 23, has entered a plea of guilty to a criminal information charging him with making a hoax bomb threat, announced United States Attorney Kenneth Magidson.
Tackett has admitted he willfully sent a false threatening communication through an instrument of interstate commerce to the University of St. Thomas - Houston, concerning an attempt to unlawfully damage real property by means of an explosive. Specifically, on November 20, 2013, he sent an email to school officials stating that there was a bomb on the campus.
U.S. District Judge Ewing Werlein Jr., who accepted the plea, has permitted Tackett to remain on bond pending sentencing, scheduled for June 20, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
FBI investigated the case which is being prosecuted by Assistant United States Attorney Craig Feazel.Second Former Gulf Cartel Plaza Boss Pleads Guilty to Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 46, aka Wicho or XW or Commandante Wicho, has entered a plea of guilty to conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson. As part of his plea, he has also agreed to a $5 million forfeiture. His brother, Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2, entered the same plea and agreed forfeiture on Tuesday, March 25, 2014.
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, and during that time, Arizmendi Hernandez was second in command. Arizmendi-Hernandez became the plaza boss on Nov. 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Zuniga-Hernandez received marijuana shipments from the States of Durango and Michoacán, Mexico, purchased at $60 per kilogram in Mexico and sold at $130 per kilogram in the U.S. Zuniga-Hernandez indicated the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On Oct. 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez and other members of the CDG in preparation for and after the Oct. 27, 2011, gun battle.
Zuniga-Hernandez and Arizmendi Hernandez have stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
They face a mandatory minimum sentence of 10 years and up to life in federal prison. Both will be sentenced before U.S. District Court Judge Hilda G. Tagle on June 30, 2014.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Laredo Resident Arrested for Threatening to Blow up Federal BuildingRead the Press Release
LAREDO, Texas – Cristina Lara, 43, has been charged with threatening to blow up the building that houses the Drug Enforcement Administration (DEA) in Laredo, announced United States Attorney Kenneth Magidson.
The criminal complaint, filed under seal March 17, 2014, was unsealed this morning as she was taken into custody by federal authorities. Lara is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
According to the charges, the DEA received a voicemail message on the morning of Feb. 21, 2014, from an anonymous caller threatening to blow up the building. The entire building, which houses the DEA offices as well as other federal agencies, was evacuated immediately.
The FBI traced the message to a phone number located within the Laredo Medical Center which is allegedly attached to a particular phone located in the reception area of the building. Video surveillance allegedly shows Lara using the phone at the same time the call was made.
If convicted, Lara faces up to 10 years in federal prison.
The case is being investigated by FBI is being prosecuted by Assistant U.S. Attorney Sonah Lee.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Indicted for Threatening to Bomb SynagoguesRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a six-count indictment against Dante Phearse, 33, for calling in bomb threats to two Houston synagogues, a municipal courthouse and a private business. 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, of Houston, is charged with two civil rights violations for threats called into two synagogues. Specifically, Phearse allegedly obstructed, by threat of force with an explosive device, members of the synagogues from enjoying the free exercise of their religious beliefs. Phearse is also charged with four counts of using an instrument of interstate commerce to communicate a threat to kill and injure people and destroy a building by means of an explosive device.
The indictment alleges that on April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voicemails threatening to bomb the buildings and cause other harm to the members. Also on that day, Phearse allegedly called in and threatened to bomb the City of Houston Municipal Courts building and a private business.
If convicted, Phearse faces a maximum penalty of 20 years in federal prison for each civil rights violation and up to 10 years for making bomb threats over the telephone.
Phearse has been in custody since his arrest. He is expected to make an initial appearance on the indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
This case is being investigated by the FBI in cooperation with the Houston Police Department.
Assistant United States Attorneys Ruben Perez and Joe Magliolo of the Southern District of Texas are prosecuting the case along with Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division in cooperation with the Harris County District Attorney’s Office.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Guilty Plea in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Rance Hunter, 29, of Atlanta, has been convicted in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced United States Attorney Kenneth Magidson.
According to court records, Hunter was employed at the Fulton County, Ga., Superior Court Clerk’s Office. There, he had access to the Sheriff’s Office Database and personal identifying information (PII), including names, birth dates and Social Security (SS) numbers, of arrestees, inmates and employees. Hunter would print out the PII from the database and sell the information when requested by his co-conspirators. From 2010 through 2013, those co-conspirators would use the PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds.
At the time of his arrest, Hunter was in possession of another 10,000 names, SS numbers and dates of birth.
According to Internal Revenue Service (IRS) 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.
Eight people, including three U.S. Postal Service workers, are charged with conspiring together and participating in the scheme in a separate, but related, indictment.
U.S. District Judge Keith P. Ellison, who accepted the guilty plea, has set sentencing for June 17, 2014. At that time, Hunter faces up to 20 years imprisonment for conspiracy to commit mail fraud as well as a mandatory two-year-term which must be served consecutively to any other sentence imposed. Both conviction also carry a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The matter was investigated by the U.S. Postal Inspection Service and IRS - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Canadian Businessman Ordered to Prison in $3 Million Telemarketing FraudRead the Press Release
LAREDO, Texas - Ragavan Thamby, 53, a Canadian citizen, has been sentenced to federal prison following his conviction of one count of conspiracy to commit telemarketing fraud, announced United States Attorney Kenneth Magidson along with Acting Special Agent in Charge Aaron C. Rouse of the FBI. Thamby pleaded guilty Aug. 15, 2012.
Today, U.S. District Judge George P. Kazen handed Thamby a sentence of 192 months in federal prison. At the hearing, additional testimony from family members of victims was presented including the effect the telemarketing scheme had on those elderly persons targeted. He was further ordered to pay restitution in the amount of $1,356,576 to the victims of his crime. In handing down the sentence, Judge Kazen noted, “the scheme was specifically to select older people because they were gullible and more vulnerable.” Judge Kazen further noted Thamby “did real damage.”
“This case demonstrates the FBI's commitment to investigate and prosecute those who are motivated by greed and who seek personal enrichment by defrauding investors,” said Rouse. “This behavior destroys the financial security of hard working individuals in our community.”
According to the plea agreement, between 2003 and 2007, Thamby and his associates contacted elderly Americans via telephone falsely representing to them that they or their deceased spouse had won a lottery or sweepstakes or that they had unclaimed funds. The organization’s telemarketers attempted to befriend these persons through numerous calls and detailed stories. To obtain the winnings, the individuals were informed they would have to send money to pay for taxes, fees and other costs. These identified individuals would send cash or checks, varying from a few hundred dollars to thousands of dollars without ever receiving their winnings.
This scheme was uncovered when FBI agents identified one such person in Zapata who was asked to send money to a mailbox in Canada. The FBI and Canadian law enforcement tracked this package and Canadian law enforcement observed Thamby pick up the package in Toronto, Canada. At the time of his arrest, Canadian law enforcement seized from Thamby target lists with contact information for individuals, “sucker lists,” checks mailed by targets of the scheme and complaint letters.
As a result of his fraudulent scheme, Thamby or his organization netted approximately $3 million from more than 600 victims.
Thamby 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 various Canadian and U.S. law enforcement agencies including, the Ontario (Canada) Provincial Police and the FBI. The case was prosecuted by Assistant United States Attorney (AUSA) Elizabeth Rabe and former AUSAs Sam Sheldon and Don J. Young.
Armed Career Criminal Handed 15+ Year Prison SentenceRead the Press Release
CORPUS CHRISTI, Texas – Joel Sanchez Jr., 44, of Corpus Christi, will now be serving 188 months in federal prison following his conviction of being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. He entered a plea of guilty Nov. 7, 2013.
Late yesterday, U.S. District Judge Janis Graham Jack handed Sanchez his sentence which will be followed by five years of supervised release. Sanchez had previously been convicted in state court for numerous felonies and was determined to be an armed career criminal by the court.
On July 19, 2013, agents and officers executed a federal search warrant at Sanchez’s Corpus Christi residence. The search warrant was based on information that Sanchez was selling crack cocaine from his residence and the purchase of 3.1 grams of crack cocaine by agents during an undercover operation. During the search, agents located a Sig Sauer Model 2022, 9mm pistol in Sanchez’s room.
In federal custody since his arrest, Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charge stems from an investigation by the Bureau of Alcohol. Tobacco, Firearms and Explosives and the Corpus Christi Police Department Gang Unit. Assistant U.S. Attorney Hugo R. Martinez is prosecuting.
U.S. Settles Civil Lawsuit Against Valley Heart Consultants/DoctorsRead the Press Release
McALLEN, Texas - Valley Heart Consultants Dr. Carlos Mego and Dr. Subbarao Yarra have settled a suit brought by the United States in McAllen alleging violations of the Federal False Claims Act, announced United States Attorney Kenneth Magidson.
“Today’s settlement once again demonstrates our commitment to uncover fraud and abuse that threatens the financial health of our federal healthcare programs,” said Magidson.
The suit alleged that from Jan. 1, 2004, through September 2010, Mego and Yarra violated the False Claims Act by billing Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The United States also alleged that the nuclear medicine used in the tests was injected by personnel who lacked the requisite license. Many of the nuclear stress tests were allegedly unnecessary, as well as many of the coronary angiographies, echocardiograms and carotid doppler studies which the defendants billed to Medicare, according to the allegations.
Valley Heart, Mego and Yarra have denied liability and this settlement is not an admission of guilt on their part. Pursuant to the terms of the settlement, Valley Heart Consultants, Mego and Yarra have agreed to pay $3.9 million to the United States and will enter into a three-year integrity agreement with the U.S. Department of Health and Human Services.
The investigation leading to the settlement began in 2007 after two former employees of Valley Heart Consultants filed a lawsuit under seal under the qui tam provisions of the Federal False Claims Act. The False Claims Act empowers private citizens with knowledge of fraud against the United States to present those allegations to the government by bringing a lawsuit on behalf of the United States under seal. If the investigation substantiates those allegations, the private citizen is entitled to share in any recovery.
The investigation was conducted by Department of Health and Human Services - Office of Inspector General with the assistance of the FBI. Assistant United States Attorneys Michelle Zingaro and Daniel David Hu handled the case and conducted the settlement negotiations.
Spa Owner Indicted on Federal ChargesRead the Press Release
McALLEN, Texas - A McAllen federal grand jury has arrested Elva Navarro, 37, of Hidalgo, for Food and Drug Administration (FDA) violations in relation to the injection of unapproved substances, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal yesterday and unsealed just moments ago following her arrest. She is expected to appear before U.S. Magistrate Judge Dorina Ramos tomorrow morning.
Specifically, Navarro is charged with receiving an adulterated device and misbranding a device.
The indictment alleges 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 FDA. According to the allegations, Navarro also falsely represented to her customers to whom she administered the liquid silicone injections that they were safe when in fact they were not.
If convicted of the federal charges, she faces up to three years in prison and a possible $10,000 fine.
The FBI, FDA-Office of Criminal Investigations, FDA-Forensic Chemistry Center and the Hidalgo County Sheriff's Office investigated the case. Assistant United States Attorney Kimberly Ann Leo 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.Distributing Child Pornography Lands Former Local Resident in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Trent Ashley Willis, 37, formerly of Corpus Christi, has been ordered to prison for 10 years following his conviction of distributing child pornography, announced United States Attorney Kenneth Magidson. Willis pleaded guilty Jan, 8, 2014.
Today, Senior U.S. District Judge Janis Graham Jack took into consideration the need to protect the public and deter future criminal conduct and handed Willis a total of 120 months in federal prison. Additional information was also presented today, including the fact that in addition to his distribution of actual child pornography, Willis had posted non-pornographic images of children with whom he had contact on the web in an effort to entice other pedophiles. In handing down the sentence, Judge Jack stated that she doubted anything could be done to deter his future criminal conduct and ordered Willis to serve a lifetime of supervised release following completion of his prison term. During that time, he will have to comply 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.
Willis came to the attention of law enforcement after multiple pornographic images of children were posted to several websites. The investigation led to the identity of Willis who had been posting and exchanging child pornography in Corpus Christi between May and October of 2012 via legitimate websites with other users who were similarly interested. Willis resided in Corpus Christi during parts of 2012, but left the area sometime during late 2012. He was eventually discovered and arrested without incident in Petersberg, Va., in October 2013.
The ongoing investigation has linked Willis to numerous occurrence of Internet-based child pornography related activities in multiple states.
Willis will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The FBI investigated with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
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."Mathis Man Convicted in Large-Scale Drug-Trafficking and Money Laundering Conspiracies O Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
CORPUS CHRISTI, Texas - A federal jury in Corpus Christi has convicted Ricardo Guerrero, 55, of Mathis, of conspiracy to commit drug trafficking, conspiracy to launder money and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. The jury returned its verdict late this afternoon following an eight-day trial and approximately two hours of deliberation. The jury also separately voted to forfeit three of Guerrero’s residential properties to the U.S.
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, 25, 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, 36, of Beeville, and Douglas Massey, 34, Ricky Bazaldua, 36, and Ramon Alonzo Gonzales, 44, 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, 43, 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, 41, 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.
Molina, Hernandez and Contreras have already been sentenced to 44, 151 and 188 months imprisonment, respectively, as have Pacheco and Lugo, who each received 63-month-terms. The remaining co-defendants will be sentenced April 17, 2014.
Senior U.S. District Judge Hayden Head presided over the trial and has set Guerrero’s sentencing for June 5, 2014. At that time, he faces life in federal prison and a possible fine of up to $10 million.
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.
Two Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Linus Davar Riggs, 32, and Nowell Joshua Cousin, 31, both of Houston, have been convicted of filing fraudulent tax returns using identification information that was either stolen or used without lawful authority, announced United States Attorney Kenneth Magidson. Riggs entered a guilty plea today, while Cousin entered his plea March 10, 2014. Both were convicted of one count of conspiracy to commit mail fraud and one count of conspiracy to submit false claims to the U.S.
According to court records, the defendants used personal identifying information, including names and Social Security numbers, to file at least 266 fraudulent tax returns claiming approximately $1,296,710 in refunds. According to Internal Revenue Service (IRS) records, the government paid out approximately $544,846 before Riggs and Cousin were arrested and the scheme 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.
Both face up to 20 years in federal prison for conspiracy to commit mail fraud as well as 10 years on the conspiracy to submit false claims. Both convictions also carry a potential $250,000 fine.
U.S. District Judge Kenneth Hoyt, who accepted the pleas, has set sentencing for Riggs June 16, while Cousin will be sentenced May 27, 2014. Cousin will remain in custody, while Riggs was permitted to remain on bond pending sentencing.
The matter was investigated by the U.S. Postal Inspection Service and IRS-Criminal Investigation. Assistant U.S. Attorney James R. Buchanan is prosecuting.
Murder for Hire Plot Against Judge Lands Septuagenarian A 20-Year SentenceRead the Press Release
DALLAS, Texas - Phillip Monroe Ballard, 72, of Fort Worth, has been ordered to federal prison for 20 years following his conviction in the attempted murder for hire of a federal judge in Texas, announced United States Attorney Kenneth Magidson of the Southern District of Texas. Ballard was convicted by a federal jury Dec. 11, 2013, after approximately two days of trial and less than an hour of deliberation.
U.S. District Judge Donald E. Walter from the Western District of Louisiana presided over the trial and sentencing today. At the hearing, additional evidence was presented including evidence that Ballard was originally indicted on tax charges and was known to use aliases in order to perpetrate his fraudulent tax schemes. Judge Walter ordered Ballard to serve a total of 240 months in federal prison to be immediately followed by three years of supervised release.
According to evidence presented at trial, from on or about Sept. 9, 2012 and continuing through Sep. 27, 2012, Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas. The jury heard from four government witnesses, one of whom was an informant who testified he had developed a friendship with Ballard as they both were in custody on unrelated criminal matters. He stated that Ballard had asked him if he would help him arrange the shooting death of the judge, who was presiding over his federal tax case. They eventually negotiated a price of $100,000.
The informant reported the incident to authorities and the plot was foiled before any harm came to the judge.
Ballard’s defense claimed he never had any actual intent to kill the judge. The jury disagreed and convicted him as charged.
Ballard 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 FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel from the Southern District of Texas are prosecuting the case.
Houston Woman Sent to Prison for Scheme to Cash Deceased Woman’s Benefit ChecksRead the Press Release
HOUSTON – Doris Hayes, 37, of Houston, has been ordered to prison for using her brother’s Social Security number to open a bank account to cash a deceased woman’s benefit checks, announced United States Attorney Kenneth Magidson. Hayes pleaded guilty to two counts of making false statements involving a Social Security number on Wednesday, Nov. 13, 2013.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hayes a sentence of 33 months in federal prison to be followed by a three-year-term of supervised release. She was further ordered to pay restitution in the amount of $177,694. Hayes, currently serving time in state prison for forgery and possession of a controlled substance, requested her federal and state sentences to run concurrently. Judge Hittner denied that request.
Hayes admitted she opened bank accounts at International Bank of Commerce and University Federal Credit Union using false Social Security numbers, including that of her brother, in order to facilitate a check cashing scheme.
A previous related indictment charged Sandra Carrier, 58, of Houston, with taking part in the scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts Hayes had opened with false Social Security numbers. Carrier and Hayes continued to negotiate the checks up to eight years after Carrier’s mother’s death.
The United States suffered $177,642 in damages as a result of the scheme.
Carrier pleaded guilty to related charges and received a sentence of 12 months and one day in prison.
Hayes will remain in custody pending transfer to a U.S. Bureau of Prisons facility upon completion of her state sentence.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.