Southern District of Texas

LAREDO, Texas – A federal grand jury has added a charge of conspiracy to possess with the intent to distribute heroin, cocaine and methamphetamine to the current kidnapping allegations against Raul Ochoa-Perez, announced United States Attorney Kenneth Magidson.

Ochoa-Perez, 42, of Laredo, was originally indicted for conspiracy to kidnap and kidnapping on May 14, 2014. The new charge alleges Ochoa-Perez has been a part of a conspiracy to transport drug-laden fire extinguishers since at least 2012. Further, the indictment alleges that in the course of the drug conspiracy, Ochoa-Perez had another individual abducted, bound and taken to Mexico where Ochoa-Perez threatened the lives of that individual’s family if he did not work for him.

Following the return of the original indictment, he made an appearance before U.S. Magistrate Judge J. Scott Hacker, at which time he was ordered detained pending further criminal proceedings. He is expected to appear again on the new charges in the near future.

Ochoa-Perez faces a mandatory minimum of 10 years and up to life in prison, upon conviction, as well as a potential $10 million fine. The U.S. is also seeking a money judgment in the amount of $3,066,975.

The case is the result of an investigation led by the FBI with the assistance of Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Hepburn is the handling the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

LAREDO, Texas – Sergio Alejandro Valero Ibarra, 48, a resident of Mexico, has been ordered to prison following his conviction of possession with the intent to distribute more than five kilograms and more of cocaine, announced United States Attorney Kenneth Magidson. Ibarra pleaded guilty Aug. 29, 2013. 

Today, Senior U.S. District Judge George Kazen handed Ibarra a total sentence of 78 months in federal prison. At the hearing, additional evidence was presented including Ibarra’s prior crossings into the U.S. He is expected to face deportation proceedings following his release from prison.

On June 21, 2013, Ibarra was detained by Customs and Border Protection (CBP) officers as he attempted to enter the United States at the Gateway to Americas Bridge II, in Laredo. At that time, CBP Officers noticed fingerprints and potential tampering with Valero’s vehicle fuel tank. Ibarra and his vehicle were then sent for secondary inspection, at which time 13.82 kilograms of cocaine were discovered bundled inside the fuel tank.

Ibarra admitted to importing and trafficking the drugs for individuals in Mexico. He stated he was driving the drug-laden vehicle for delivery in Houston and admitted he previously made three other drug deliveries in Houston.

Ibarra 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 CBP and Homeland Security Investigations. Assistant U.S. Attorney Sanjeev Bhasker prosecuted the case. 

LAREDO, Texas – A total of seven people are headed to prison for their roles in a conspiracy to transport five kilograms or more of cocaine and international money laundering, announced United States Attorney Kenneth Magidson.

Juan Ramon Ibarra Jr., 31, Salvador Rodriguez-Fajardo, 39, Ricardo Garza, 40, Moises Andrade, 22, and Laura Rodriguez, 43, all of Laredo, Rene Cardenas, 38, of Miami, Fla., and Salvador Ibarra De-Alba, 49, of Nuevo Laredo, Tamaulipas, Mexico, each previously pleaded guilty at varying times in 2013.

Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty pleas, handed Ibarra Jr. a total sentence of 188 months in prison. Salvador Ibarra De-Alba received a sentence of 135 months, while Cardenas, Rodriguez-Fajardo, Garza, Andrade and Rodriguez received respective sentences of 78, 120, 84, 37 and 24 months in prison. The court further entered a money judgment in the amount of $2,408,204 against all seven. Not U.S. citizens, De-Alba, Rodriguez-Fajardo and Rodriguez are expected to face deportation proceedings following their release from prison, while the remaining defendants will serve between three and five years of supervised release following completion of their prison terms.

De-Alba admitted he supplied cocaine to relatives living in Laredo and ensured its transportation further north into the United States. After the arrest of De-Alba’s brother, Juan Ramon Ibarra Sr., in 2010, De-Alba worked with his nephew, Juan Ramon Ibarra Jr., to continue the transportation of cocaine.

In 2010, Ibarra Sr. pleaded guilty to his role in the drug conspiracy and was sentenced by U.S. District Judge Micaela Alvarez to 130 months in federal prison. Following Ibarra Sr.’s arrest, Ibarra Jr. assumed the role of his father and continued the transportation of cocaine for the drug trafficking organization.

In his plea, Ibarra Jr. admitted he participated in the transportation of cocaine to Miami since 2004. He and his father coordinated with Cardenas and the other co-conspirators to transport the drugs in aftermarket compartments installed in the rear wheel axles of tractor-trailers. In May 2010, agents with the Drug Enforcement Administration (DEA) came upon several co-conspirators loading over 12 kilograms of cocaine into this secret compartment. Once the cocaine was delivered to Miami, the compartment was loaded with large amounts of United States currency destined for Nuevo Laredo. One such load was intercepted in March 2010 when agents recovered approximately $422,000 in the compartment with a drug ledger. 

On three separate occasions in July and August 2011, Garza delivered cocaine to Rodriguez-Fajardo at a Home Depot parking lot. Rodriguez-Fajardo stored the cocaine in a secret compartment located behind a stove in the house he shared with his wife, Laura Rodriguez.

Rodriguez assisted Rodriguez-Fajardo in carrying out the conspiracy. On one occasion, she traveled to St. Augustine Square in downtown Laredo to collect money for him and another person as payment for their services.

Andrade admitted to his role in the transportation of one cocaine load on Aug. 7, 2011, for which he received $500.

The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the DEA with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.

LAREDO, Texas – Two indictments have been unsealed following the arrest of one McAllen and four Zapata residents alleging marijuana and/or cocaine trafficking, announced United States Attorney Kenneth Magidson.  

Both indictments were returned under seal May 13, 2014, and unsealed upon today’s arrests of Roberto Piedra, 33, Isidro Ramirez, 34, Ramiro Guerrero, 35, and Omar Gonzalez, 50, all of Zapata, and Martin Gonzales Garces Jr., 55, of McAllen. All five are expected to make an initial appearance before U.S. Magistrate Judge J. Scott Hacker Tuesday morning.

The first indictment alleges Piedra, Ramirez, Guerrero and Gonzalez conspired to possess with the intent to deliver 1,000 kilograms or more of marijuana between February 2013 and Nov. 25, 2013, from South Texas to northern destinations. 

Specifically, transporters would allegedly drive the marijuana from the Rio Grande Valley to Laredo through ranches west of Laredo in order to avoid traveling through U.S. Border Patrol Immigration checkpoints. The indictment alleges the marijuana was concealed in belly dump trucks below loads of caliche as well as in utility trucks in order for these vehicles to blend in with oil field traffic on ranches. Members of the organization allegedly scouted for these loaded vehicles.

The first indictment further alleges that Piedra, Ramirez, Guerrero and Gonzalez possessed with the intent to distribute more than 1,000 kilograms of marijuana on Nov. 24-25, 2013, and that Piedra possessed with the intent to distribute five kilograms or more of cocaine on Nov. 22, 2013.

The second indictment alleges that Garces conspired and possessed with the intent to deliver five kilograms or more of cocaine on Feb. 7, 2014. 

If convicted, all face a mandatory minimum sentence of 10 years and up to life in prison and a possible $10 million fine.

The case is being investigated by the Homeland Security Investigations with the assistance of U.S. Border Patrol and the Zapata County Sheriff’s Office. Assistant United States Attorneys Elizabeth R. Rabe and Raul Guerra are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

HOUSTON - A combined federal, state and local investigation has led to the arrest of three Jordanian nationals on federal fraud charges, one of whom is also charged in state district court with murder.

The announcement is being made jointly by United States Attorney Kenneth Magidson and Harris County District Attorney Devon Anderson along with FBI Acting Special Agent in Charge Carlos J. Barron, Special Agent in Charge Robert G. Feldt of the Social Security Administration - Office of Inspector General (SSA-OIG), Houston Police Department (HPD) Chief Charles A. McClelland Jr., Harris County Sheriff Adrian Garcia, Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI), Montgomery County District Attorney Brett Ligon and Montgomery County Sheriff Tommy Gage.

Ali Mahmood-Awad Irsan, 57, a naturalized U.S. Citizen from Jordan and resident of Conroe, was arrested yesterday along with his wife, Shmou Ali Alrawabdeh, 37, also a Jordanian national, and daughter, Nadia Irsan, 30, a U.S. citizen. Ali Irsan and his family members are charged federally with conspiracy to defraud the U.S., theft of public money and benefits fraud. The investigation also led to charges against Ali Irsan for murder in state district court.

“The filing of both federal and state charges in this matter demonstrates the outstanding coordination between our offices and with all of the exceptional federal, state and local law enforcement partners working the investigation,” said Magidson. “This matter is a true testament of everyone’s dedication to working together and ensuring those suspected of crimes are properly charged.”

“We never forgot about this case. We will continue to work with all our law enforcement partners to make sure justice prevails,” said Anderson. “This investigation into the murder of Gelareh Bagherzadeh is far from over.”

“It is precisely these types of violent crimes the FBI will continue to address in conjunction with our local, state and federal law enforcement partners,” said Barron. “We will ensure all law enforcement resources and capabilities are brought to bear to safeguard our community.”

The federal criminal complaint was unsealed this morning in federal court in Houston. The indictment charging Ali Irsan with murder was filed in state district court yesterday.

The murder charge alleges Ali Irsan intentionally or knowingly caused the death of Gelareh Bagherzadeh on Jan. 15, 2012, by shooting her with a firearm.

Ali Irsan is not expected to personally appear in federal court today. The other two are set for an initial appearance at 2:00 p.m. before U.S. Magistrate Judge Nancy Johnson.

The charges in the federal criminal complaint allege Ali Irsan and his wife falsified documents in order to receive Social Security disability benefits with the assistance of Nadia Irsan. Ali Irsan and his family allegedly secreted assets, such as real estate, vehicles and currency, which would make him and his wife ineligible to receive benefits. Nadia Irsan, who lives with her father and is unemployed, allegedly maintained a bank account with more than $150,000 in cash for her father, which was separate from the benefits received from the SSA. The family also purchased several pieces of real estate and vehicles with cash. 

“This investigation is a fine example of collaborative efforts of federal, state and local law enforcement,” said Feldt. “SSA-OIG will vigorously investigate and bring to justice, those individuals who intentionally defraud SSA programs.”

If convicted of any of the federal fraud charges, the three family members face up to 10 years in prison and a possible $250,000 fine. If convicted of murder in state district court, Ali Irsan also faces up to life in prison and a $10,000 fine. 

The joint investigation was a coordinated effort conducted by the U.S. Attorney’s Office, Harris County District Attorney’s Office, FBI, HPD, Harris County Sheriff’s Office, SSA-OIG, HSI, Montgomery County District Attorney's Office and Montgomery County Sheriff's Office.

Assistant U.S. Attorney James McAlister is handling the federal prosecution, while Assistant District Attorneys Tammy Thomas and Connie Spence are prosecuting Ali Irsan on the murder charge. 

A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – Roberto Carlos Garza, Alexander Chavez and Martin Loya-Plancarte have all been ordered to federal prison for their roles in a five kilogram methamphetamine deal that occurred on May 18, 2013, announced United States Attorney Kenneth Magidson. Garza, 24, and Chavez, 34, both of Rio Grande City, and Loya-Plancarte, 26, an undocumented alien from Mexico residing in the Houston area, all previously pleaded guilty in the case.

Today, U.S. District Judge Lynn N. Hughes sentenced Loya-Plancarte to a 294-month federal prison term, while Garza and Chavez were ordered to serve 90 and 96 months, respectively. Garza and Chavez will also be required to serve five years of supervised release. Loya-Plancarte, not a U.S. citizen, also received a five-year-term of supervised release but is expected to face deportation proceedings following his release from federal prison.

At the time of their guilty pleas, the men admitted to arranging a methamphetamine transaction on May 17, 2013, for approximately 22 pounds of methamphetamine at a price of $15,000 per pound. The following day, Garza and Chavez each agreed to deliver the drugs to a parking lot near the Houstonian Hotel in Houston. 

At approximately 12:58 p.m. on May 18, 2013, agents observed a gray Honda CR-V arrive at the location driven by Chavez with Garza riding as a passenger. Shortly after arrival, agents attempted to take Garza and Chavez into custody. Identifying themselves as law enforcement officers and wearing law enforcement identification, agents ordered them out of the vehicle. Chavez attempted to flee, driving in reverse and striking another vehicle, then driving forward and accelerating rapidly towards two agents who were on foot.

Fearing for his life, one of the agents fired two rounds from his service weapon toward Chavez while attempting to move out of the way and avoid being hit. The agent believed Chavez was attempting to run him over and had no choice but to fire his weapon toward the vehicle to avoid being run over and possibly killed. The rounds appeared to strike Chavez and the CR-V veered to the side, struck two other vehicles and came to a stop.

Garza was then taken into custody and Chavez was treated at the scene until an ambulance arrived and transported him to a hospital for treatment. Agents subsequently seized three plastic containers containing methamphetamine from the rear area of the Honda. The methamphetamine had a net weight of 4.946 kilograms, was 90.1% pure and had been imported into the U.S. from Mexico.

Upon his arrest, Garza made several statements incriminating himself, Chavez and Loya-Plancarte in this methamphetamine transaction. Garza and Chavez each also stated that Loya-Plancarte was the person in Houston who had set up the deal and that they were conducting the transaction in part under his supervision.

All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case is the result of an investigation conducted by agents from the Drug Enforcement Administration with assistance from the Houston Police Department. Assistant United States Attorney Arthur R. Jones is prosecuting.

BROWNSVILLE, Texas - Orlando Giovanni-Hernandez, 28, has been convicted of conspiracy to possess with intent to distribute and possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Giovanni-Hernandez following three days of trial and approximately four hours of deliberation.

The jury heard that on or about Dec. 10, 2012, Francisco Chavez-Arriaga, 49, a drug coordinator based out of San Juan, provided an ice chest filled with 10 kilograms of cocaine to a truck driver with instructions to deliver the cocaine to Natalie Hernandez, 26, of Concord, N.C. When the truck driver contacted Hernandez, she advised she could not pick up the cocaine, but another woman driving a white Volvo would be at the truck stop to receive it.  

Giovanni-Hernandez, a drug trafficker himself, lived in a stash house with Nidia Ramirez-Martinez, 23, in Charlotte, N.C. On Dec. 17, 2012, Ramirez-Martinez and Giovanni-Hernandez were together when Ramirez-Martinez received a phone call from Hernandez requesting she pick up the cocaine. Ramirez-Martinez asked Giovanni-Hernandez to borrow his white Volvo to pick up some drugs and he agreed.

Ramirez-Martinez, Giovanni-Hernandez and a third co-defendant, Melanie Pretell, 24, also of Concord, drove approximately 90 miles to the truck stop. Along the way, they smoked marijuana and continued to negotiate the drug deal.  

At the truck stop, Giovanni-Hernandez orchestrated the transaction entirely. He received the cocaine and was planning to take it  to his stash house where Hernandez was supposed to come and get it. However, he was stopped en route by local authorities, at which time Giovanni-Hernandez lied to the troopers about where he had been and made various statements trying to pass the blame onto the other co-defendants.

At trial, he again re-iterated that he was not guilty and the crime was perpetrated by the others. The jury disagreed and found him guilty as charged.

At the time of his sentencing, Giovanni-Hernandez faces a minimum of 10 years and up to life on each count of the two counts of conviction.

Chavez-Arriaga, Ramirez-Martinez, Hernandez and Pretell have all pleaded guilty and are awaiting sentencing. 

The charges are the result of the joint investigative efforts of Drug Enforcement Administration agents in Texas and North Carolina along with the North Carolina Highway Patrol. Assistant United States Attorneys Holly D’Andrea and Carrie Wirsing are prosecuting.

HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been ordered to prison for nearly 13 years following his conviction on six counts related to the interstate transportation of stolen goods and obstruction of justice, announced United States Attorney Kenneth Magidson. A federal jury sitting in Houston convicted Danhach March 4, 2013, after just an hour of deliberation following a five-day trial.

Today, U.S. District Judge Sim Lake, who presided over the trial, handed Danhach a total sentence of 151 months in federal prison and further ordered him to pay nearly $540,000 in restitution. Danhach resides in Houston but is a legal permanent resident of the U.S. from Lebanon. He is expected to face deportation proceedings following his release from prison.

Five others are charged in the case. Two of those have pleaded guilty, while three remain as fugitives and warrants remain outstanding for their arrests.

At trial, evidence demonstrated Danhach was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.

The scope of this criminal enterprise ranged from April 2008 to February 2012.

Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.

To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.

Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.

A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach, which documented the extent of Danhach’s criminal enterprise. Specifically, the records showed that between August 2011 through January 2012, Danhach was responsible for nearly $3 million in sales of stolen OTC items. At the time of the search, Danhach instructed a co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling. The video specifically showed several days worth of stolen merchandise being delivered to the warehouse, undocumented aliens removing the retailers’ labels, then repackaging and shipping the OTC items on pallets. 

Several cooperating witnesses testified on behalf of the United States, including one of his “boosters,” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.

At the sentencing hearing today, the court also considered Danhach’s role in the receipt of 38 Parmigiani watches taken during a June 2010 robbery of travelling Swiss jewelers. The government presented evidence that he later attempted to sell the watches at a fraction of their value to a local jewelry store, at which time he was arrested. At least two of the watches were taken to the United Arab Emirates (UAE) by Danhach’s brother-in-law a year after the robbery. Allegedly, Danhach’s brother-in-law took the watches, taken during the robbery, to a jewelry store where he attempted to get cases for the watches. Parmigiani officials in Switzerland became aware of this attempted transaction and notified the FBI that the two watches were presented to the UAE jewelry store representatives. 

Danhach will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith and Joe Magliolo.

LAREDO, Texas - Carlos Contreras, 33, and his wife Ana Rosa Contreras, 31, have entered guilty pleas in relation to a massive drug trafficking and money laundering case involving members of the Texas Mexican Mafia prison gang, announced United States Attorney Kenneth Magidson.

The two Laredo residents were charged along with several other members and associates of the Texas Mexican Mafia in an indictment alleging conspiracy to possess with intent to distribute heroin, cocaine and methamphetamine and money laundering.

Carlos Contreras entered a plea today to conspiracy to possess with the intent to distribute 10 kilograms of heroin, while his wife pleaded guilty to money laundering. Both have admitted to purchasing their residence in the prestigious Lakeside subdivision with the proceeds of drug sales. As a result of their pleas, the government is seeking the forfeiture of the residence, valued at more than $300,000. 

Mr. Contreras faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine. His wife could receive up to a maximum of 20 years in federal prison and $500,000 fine, or twice the pecuniary gain. 

To date, the 21 defendants arrested thus far in the investigation have all entered guilty pleas before U.S. Magistrate Judge Guillermo R. Garcia and are pending sentencing at varying times before U.S. District Judge Diana Saldana. The indictment remains sealed as to those charged but not as yet in custody.

The indictment is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation named “Operation X3,” investigated by the FBI, Drug Enforcement Administration, Homeland Security Investigations and Internal Revenue Service – Criminal Investigation. They were assisted at different times by the U.S. Marshals Service, police departments in Laredo, Austin and San Marcos, Customs and Border Protection, Texas Department of Public Safety - Criminal Investigations Division and the LaSalle County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Andy Guardiola and James Hepburn.

McALLEN, Texas ‐ Rafael Cruz, 25, and Roberto Cruz, 27, both of Mission, have been ordered to federal prison to serve lengthy sentences as a result of their convictions for conspiracy to commit hostage taking, announced United States Attorney Kenneth Magidson. Both defendants, who are brothers, pleaded guilty Feb. 4, 2014.

Late this afternoon, U.S. District Judge Micaela Alvarez sentenced Rafael Cruz to a sentence of 480 months imprisonment. The sentence was enhanced as the court took into consideration the fact he had sexually assaulted a female undocumented alien on a number of occasions. Judge Alvarez then sentenced Roberto Cruz to a sentence of 360 months for his role in the hostage taking conspiracy. After their sentences, they will each have to serve a five-year-term of supervised release. Also sentenced today was the sister of the Cruz brothers, Jisel Emery Cruz, 30, of Penitas, who was ordered to serve 46 months for harboring aliens.
 
On Sept. 9, 2013, law enforcement received a 911 call from an illegal alien claiming he and a group of other undocumented aliens were being held against their will at a stash house in Edinburg. Upon their rescue, these individuals told law enforcement they were kidnapped at gunpoint from a stash house by the Cruz brothers and a third individual who is a fugitive and taken to the stash house in Edinburg. There, they were made to call their families and request money to be paid for their release. They were also threatened with death if the money was not paid.
 
The investigation leading to the charges was conducted by Homeland Security Investigations, Border Patrol, Hidalgo County Sheriff’s Office and Edinburg Police Department. Assistant United States Attorneys Kimberly Ann Leo and Kristen Rees prosecuted the case.

VICTORIA, Texas - A federal grand jury in Victoria has indicted Jack Kennedy, 55, of Houston, for perpetrating a multi-year mail and wire fraud scheme, announced U.S. Attorney Kenneth Magidson. Kennedy’s fraud is alleged to have resulted in more than a $1 million loss to his former employer, Alcoa World Alumina, aka Alcoa – Point Comfort Operations, located in Calhoun County.

Kennedy was arrested yesterday. The indictment was returned under seal May 14, 2014, and unsealed today as he made his initial appearance before U.S. Magistrate Judge Jason B. Libby in Corpus Christi. At that time, he was ordered into custody pending a detention hearing and arraignment set for Friday, May 23, 2014, at 9:30 a.m.

According to the indictment, Kennedy was employed in the Alcoa machine shop, where he was responsible for inventorying and ordering parts, tools and supplies. For nearly four years, he allegedly ordered large quantities of these expensive items, many of which were not needed. According to the charges, Kennedy would then steal the items and sell them at a wholesale discount to a metalworking supply and salvage company in Tonawanda, N.Y.  

The indictment further alleges that between 2008 and 2011, the N.Y. company routinely sent checks to Kennedy’s home address in Victoria via United Parcel Service totaling approximately $650,000. Kennedy would, in turn, mail boxes of the tools, parts and supplies from a Home Depot retail location near his home in Victoria, according to the indictment.    

If convicted, Kennedy faces up to 20 years in federal prison without parole and a fine of up to $250,000.

The FBI investigated. Assistant U.S. Attorneys Jeffrey D. Preston and Hugo R. Martinez are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

HOUSTON -  A Houston man pleaded guilty today to conspiring to smuggle and to traffic in counterfeit and misbranded pharmaceuticals, including Viagra tablets, from China, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.

Nasif Baqla, 26, of Houston, pleaded guilty before U.S. District Judge Nancy F. Atlas to one count of conspiracy to traffic in counterfeit goods, to introduce misbranded prescription drugs into interstate commerce and to import such goods contrary to U.S. law. 

Baqla was indicted on Aug. 22, 2012, as were two other individuals – Jamal Khattab, 49, of Katy, and Fayez Al-Jabri, 45, of Chicago – in a separate, but related case. Khattab and Al-Jabri each pleaded guilty on Dec. 3, 2013, and March 21, 2014, respectively, to the same conspiracy charge as Baqla, as well as trafficking in counterfeit goods and introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.

According to court documents, in July 2010, a package of counterfeit Viagra tablets was shipped from China to Houston, intended for Baqla and Khattab. The package was intercepted by Customs and Border Protection officers. Baqla claimed the pills were his and that he received them on behalf of a friend. Although the tablets were marked with trademarks substantially indistinguishable from the genuine marking on a legitimate Viagra pill, the drugs in the package were counterfeit and misbranded.

This matter was investigated by Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, Diplomatic Security Service and police departments in Houston and Chicago. The case is being prosecuted by Assistant U.S. Attorney Kebharu Smith and Assistant Deputy Chief for Litigation John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.

CORPUS CHRISTI, Texas - Five men and three women have been arrested today as a result of an the efforts of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Prototype,” announced United States Attorney Kenneth Magidson.

The four-count indictment was returned under seal April 23, 2014, and unsealed today upon the arrest of Francisco R. Canchola, 39, Antonio Medina Soto, 24, Efren Amescua, 39, Brenda Amescua, 19, Luz Medina, 36, Carlos Flores, 26, Maria D. Amescua, 43, all of Mission, and Prudencio Villalobos, 45, of Jackson, Ga.

The defendants have or will make their initial appearances before U.S. magistrate judges in Atlanta, McAllen and Houston, at which time the U.S. expects to seek the continued detention of all defendants without bond pending further criminal proceedings.

All are charged with conspiracy to launder monetary instruments and two counts of conspiracy to structure transactions to avoid currency reporting requirements. If convicted of the money laundering conspiracy, they each face up to 20 years in prison as well as a maximum of 10 years in federal prison for each of the structuring counts. 

Canchola and Soto are charged with conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana. If convicted, they will face no less than 10 years and up to life in federal prison.

Also included in the indictment is a notice of the government’s intent to seek the forfeiture of eight bank accounts held at Wells Fargo Bank and Bank of America as well as a the intent to seek personal money judgments in the amount of $700,000 against all defendants. 

The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mission Police Department, Border Patrol, Customs and Border Protection and the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting.

Defendants are presumed innocent unless and until convicted through due process of law.

BROWNSVILLE, Texas - Jaime Homero Guerrero, 20, has been ordered to prison for conspiracy to possess and possession with intent to distribute more than 50 grams of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury convicted Guerrero, of Brownsville and Matamoros, Mexico, on Jan. 24, 2014, following more than two days of testimony and approximately five hours of deliberation.
 
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Guerrero a sentence of 188 months in federal prison to be immediately followed by five years of supervised release. The court noted the sentence was imposed to reflect the seriousness of the offense, promote respect for the law, provide just punishment for the offense and afford adequate deterrence to criminal conduct.
 
Guerrero was a passenger in a 2010 Nissan on April 5, 2013, when it was stopped for a traffic violation on Highway 77 near Raymondville in Willacy County. At that time, officers found 36 packages containing a total of 26.16 kilograms of methamphetamine.
 
Guerrero initially stated he was headed from Matamoros, Mexico, to a Quincenera in Houston. He later claimed he was going to deliver the vehicle to Houston.
 
Also charged was Oraldo Arvey Castro-Rocha, who was driving the Nissan and later pleaded guilty. He will be sentenced June 4, 2014.
 
At trial, agents testified the methamphetamine Guerrero and Castro smuggled was valued at nearly $1 million in the Houston area.
 
Guerrero 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 Drug Enforcement Administration and the Texas Department of Public Safety. Assistant United States Attorneys Carrie Wirsing and David A. Lindenmuth prosecuted the case.

BROWNSVILLE, Texas – Oscar J. Aguilar, 37, a Mexican citizen legally residing in Brownsville, has entered a guilty plea to conspiring to commit international money laundering, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. 

Aguilar has admitted to recruiting nine others, some of whom were family members, to open bank accounts at Bank of America in Brownsville. Later, co-conspirators in Florida would deposit money from narcotics sales into the accounts. Aguilar’s recruits withdrew the money in amounts under the $10,000 reporting requirement and would give that money to Aguilar or other co-conspirators. The recruits were paid for moving the money through their bank accounts.

After Aguilar received the money, he facilitated its crossing from Brownsville to Matamoros, Mexico, where it was delivered to the Gulf Cartel.

From September 2008 through November 2012, the conspirators moved approximately $1,893,170 through nine bank accounts, with nearly $1.5 million from September 2011 through November 2012 alone.

“HSI Special Agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organization,” said Ayala. “These investigations deprive the organizations from enjoying the benefits of these illicit proceeds, and prevent them from furthering the efforts of the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”

Nine others have been convicted in relation to this case. With the exception of Francisco Jesus Arambul-Cortez, who also pleaded to conspiracy to commit International money laundering, the eight others entered guilty pleas to operating an unlicensed money transmitting business.

Aguilar entered his plea today before U.S. Magistrate Judge Ronald G. Morgan. He will remain in custody pending his sentencing hearing, set for Aug. 18, 2014, before U.S. District Judge Andrew S. Hanen. At that time, he faces up to 20 years in prison and a possible fine of $500,000. 

This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Karen Betancourt and Joseph Leonard.

CORPUS CHRISTI, Texas – Michael Paul Torres, 34, has been ordered to prison following his conviction of sexual exploitation of a child, more commonly referred to as production of child pornography, announced United States Attorney Kenneth Magidson. Torres, of Corpus Christi, pleaded guilty Feb. 28, 2014.

Today, Senior U.S. District Judge Hayden Head sentenced Torres to a total of 16 years in federal prison to be immediately followed by 16 years of supervised release. Additional testimony was provided by the victim and her family describing how this crime has and continues to traumatize them. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Torres in the future.

On Oct. 28, 2013, a minor female reported that Torres had sexually assaulted her earlier that day. Torres was located and arrested and admitted to sexually assaulting the victim. At the time of his arrest, Torres was in possession of a cell phone which contained pornographic images he had taken of his victim.  

Torres 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 Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI.

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."

HOUSTON – Mark Allan James, 47, a citizen of the United Kingdom (UK), has been convicted for conspiring with a number of other individuals to defraud Hewlett-Packard (HP) of millions of dollars, announced United States Attorney Kenneth Magidson. James utilized straw buyers to make false representations in order to fraudulently secure HP computer equipment at steeply discounted rates. The verdict was returned moments ago after seven days of trial and approximately five hours of deliberation.

The trial evidence showed that James recruited individual business owners from around the globe to pose as persons interested in securing a large volume of computing products. He then directed them to falsely state the procured products would be used internally by those individuals’ businesses and not be resold. Based upon those false representations, HP applied steep discounts to the products for various business reasons to include the opportunity for future large volume sales, further utilization of HP products in the customer's technology infrastructure and continued maintenance of existing HP products. These types of transactions fell under HP’s “Big Deal” program and HP would not have offered the degree of discount on its products, which often reach millions of dollars in a single transaction, without the false representations that the products would be used internally and not be re-sold.

Once negotiations were complete on a Big Deal, James would receive money via international wire transfer from the company for whom James was procuring the discounted products, identified in the indictment as Company A. That company wired money from the United States to a bank account James maintained in the UK in the name of his company, Roamer Media Ltd. James would then send the funds to the bank accounts of the straw buyers in Canada, the United States and Singapore. After the straw buyers received the funds from the Roamer Media bank account, they then forwarded payment for the products to HP or its partners, thereby further deceiving HP and its partners into believing that the computer equipment was being purchased by the straw buyer. In reality, the HP computer equipment never reached the straw buyers, but was instead diverted for re-sale by Company A.

The trial included testimony from members of HP’s Global Security and Brand Protection Departments as well as one of the straw buyers who assisted James in fraudulently procuring HP products on his behalf. Trial evidence included a large number of emails between James and others which demonstrated the level of deception used to deceive HP at every stage of the fraudulent transactions. In addition to the use of straw buyers, James also took care to hide his true identity and the role of Company A  when inspecting the products prior to shipping. He also took care to disguise the true destination of the products by either routing them to an intermediary location or utilizing blind shipping techniques that hid the fact that the products were ultimately destined for Company A. 

James was found guilty of conspiring to direct four different straw buyer transactions, spanning between May 2009 and November 2011. During one undercover transaction, James unwittingly corresponded with individuals cooperating with law enforcement in an attempt to fraudulently procure a Big Deal discount. The estimated losses to HP are in excess of $14 million.

James faces up to 20 years imprisonment and up to a $250,000 fine in connection with the conspiracy to commit wire fraud. He faces the same sentence for his conviction to conspiring to commit international money laundering, as well as a fine of up to $500,000 or twice the value of the laundered funds, whichever is greater.

The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorneys Jason Varnado and John Pearson.

CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 48, of Robstown, has been ordered to federal prison following his conviction of mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.  Ramirez pleaded guilty Feb. 18, 2014.

Today, Senior U.S. District Judge Hayden Head, who accepted the guilty plea, handed Ramirez a sentence of 37 months in federal prison. He was further ordered to pay a $10,000 fine and $370,638.28 in restitution to Medicare and Medicaid and will also be required to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Head noted how Ramirez had abused his position of trust within the health care community.

Ramirez, a licensed physician in Texas since 1997 and owner of Health Resolutions Inc., was indicted by a federal grand jury on Oct. 9, 2013, for a scheme to defraud Medicare and Medicaid through fraudulent billings. He opted to enter a guilty plea on the day he was set to begin trial to one count of mail fraud for using the United States Postal Service (USPS) for the purpose executing his scheme. His medical office in Corpus Christi is now closed.  

Ramirez admitted he knowingly and willfully engaged in a scheme to defraud Medicare and Texas Medicaid and submitted false and fraudulent billings for medical services he did not provide. He also admitted he committed mail fraud by using USPS to receive payment on the fraudulent bills.

Court documents indicated that Ramirez knowingly and willfully engaged in the scheme from May 2008 through December 2011 by submitting fraudulent billings for physician services he did not provide. Thousands of false and fraudulent bills were submitted, according to the charges. Ramirez billed for medical services he claimed he personally provided to patients who had actually died prior to the dates of his claimed services. He also submitted bills claiming he personally provided services to patients at his clinic when he was actually overseas or in another state. Some of the bills also indicated he would have personally worked more than 24 hours in a single day. Court documents also alleged that when he provided medical services to Medicare and Medicaid patients in nursing homes, he would send fraudulent bills claiming he had seen the patients in private residences in order to collect the higher fees paid for house calls.  

Ramirez was 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 was conducted by the FBI, U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Rex G. Beasley are prosecuting.  

McALLEN, Texas – A federal grand jury in McAllen has indicted Alfredo Alejandro Alvarez-Mendicuti, 35, of Mexico, for possessing 31 counterfeit credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.

According to the criminal complaint originally filed in the case, Alvarez-Mendicuti was arrested on April 25, 2014, at the Anzalduas Port of Entry after the 31 cards were found hidden in his waist and leg areas. He was allegedly attempting to enter the U.S. from Mexico with a revoked passport, according to the charges. He allegedly intended to use the fake cards to shop in McAllen.

He made his initial appearance on April 28, 2014, before U.S. Magistrate Judge Peter E. Ormsby who ordered him to remain in custody pending further criminal proceedings.

If convicted, Alvarez faces up to 10 years in federal prison without parole and a fine of up to $250,000.

This case is being investigated by the Secret Service. Assistant U.S. Attorney Christopher Sully is prosecuting the case.

LAREDO, Texas – A federal grand jury has indicted Raul Ochoa-Perez, 42, of Laredo, on charges of conspiracy to kidnap and kidnapping, announced United States Attorney Kenneth Magidson. 

A criminal complaint was filed Jan. 15, 2014, but Ochoa-Perez had allegedly fled to Mexico. Ochoa-Perez turned himself in to federal authorities April 15, 2014, and was subsequently detained pending further proceedings. He is expected to appear before U.S. Magistrate Judge Song Quiroga in the coming days for his initial appearance.

The indictment, returned today, alleges that on Jan. 13, 2014, Ochoa-Perez forced a male victim into a vehicle and took him into Mexico at gunpoint. There, he was allegedly bound and beaten. According to the charges, Ochoa-Perez supervised as others put a gun in the victim's mouth and a knife to his throat. They allegedly demanded money and threatened to cut the victim into pieces if he did not comply. The indictment also alleges Ochoa-Perez called the victim’s girlfriend and threatened her life, the lives of her children and parents as well as the life of the victim if she did not give Ochoa-Perez $55,000.

If convicted, Ochoa-Perez faces a maximum sentence of life in prison and a $250,000 fine for each charge.

The case is the result of an investigation led by the FBI. Assistant U.S. Attorney James Hepburn is handling the case.

A defendant is presumed innocent unless convicted through due process of law.

BROWNSVILLE, Texas – Houston resident Alexander Ortega, 24, has been ordered to prison following his convictions of conspiracy to possess with intent to distribute and conspiring to import approximately 5.1 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury in Brownsville convicted Ortega on Feb. 6, 2013, following three days of trial.

Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, handed Ortega a total of 360 months in prison for each of the four counts of conviction to be served concurrently. In handing down the sentence, Judge Tagle noted the amount of drugs involved and Ortega’s role as leader of the conspiracy. Ortega will also be required to serve a term of five years of supervised release following completion of the prison term.

At trial, the government presented evidence that on March 13, 2011, Omar Lerma-Teniente, 24, of Houston, was caught at the Gateway International Port of Entry with approximately with approximately 5.1 kilograms of methamphetamine hidden underneath the rear seat of the car. Subsequently, on Oct. 24, 2011, John Phelps, 26, of Houston, and William Holley, 27, of Houston, were arrested at the Hidalgo Port of Entry for attempting to smuggle approximately 20 kilograms of methamphetamine into the United States. The investigation linked both cases to Ortega.

At trial, the government proved Ortega recruited Lerma-Teniente, Phelps and Holley, having paid them to smuggle the methamphetamine into the United States from Mexico.

Lerma-Teniente, Phelps and Holley were all also convicted in separate, but related cases.

Ortega will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case was investigated by Homeland Security Investigations. Assistant United States Attorney Ana Cano is prosecuting.

HOUSTON - Donal Monta Amerson, 37, of Missouri City, has been ordered to federal prison for nearly 18 years for operating a cocaine and marijuana distribution organization in Bryan, announced United States Attorney Kenneth Magidson.

Amerson was indicted Sept. 27, 2010, and soon fled the Houston area. He was apprehended April 5, 2013, in the Dallas area by agents and officers of an FBI task force in Dallas. He pleaded guilty Nov. 25, 2013, to aiding and abetting possession with intent to distribute up to 100 kilograms of marijuana and more than 500 grams of cocaine.

Also charged were Jumond Anthony Burrell, 32, of Hearne, Zarick Banard Shivers, 34, and Johnnie Willie Hickman, 73, both of Bryan, and Bennie Ray Hawkins Jr., 25, of College Station. All pleaded guilty and have been sentenced to varying terms for their roles in the conspiracy.

During his sentencing hearing, Amerson challenged the manner in which the court calculated the amount of drugs distributed through the organization as well as the allegation that he was the organization’s leader. 

U.S. District Judge Lynn N. Hughes rejected Amerson’s claims, finding that between December 2008 and April 2010, Amerson, through his organization, distributed hundreds of kilograms of cocaine onto the streets of Bryan.

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI worked jointly with the Bryan Police Department in the investigation.  Former Assistant U.S. Attorney (AUSA) Kenneth P. Dies prosecuted the case. AUSA Richard Hanes handled the sentencing.

HOUSTON – Lawrence Tyler, 41, has been convicted of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. The verdicts were returned just moments ago following five days of trial and less than four hours of deliberation. 

Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.

The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. During the conspiracy, Tyler submitted approximately $3 million in claims for durable medical equipment and was paid approximately $1.4 million by Medicare and Medicaid.

The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.

In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank. The monies were proven to be the proceeds of the health care fraud conspiracy. 

Tyler faces up to five years in prison for the conspiracy as well as up to 10 years for each count of health care fraud and money laundering in addition to substantial fines.

The case was the result of a joint investigative effort of the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the U.S. Attorney’s Office. Special Assistant United States Attorneys Suzanne Bradley and Adrienne E. Frazior prosecuted the case.

McALLEN, Texas - Robert Ricardo Maldonado, 49, of Weslaco, has entered a plea of guilty to one count of conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson. Maldonado was a former deputy with the Hidalgo County Sheriff’s Office.  

From 2001 to November 2013, Maldonado transported currency derived from the distribution of narcotics from various destinations including Detroit, Chicago, Birmingham and elsewhere to the Rio Grande Valley. Maldonado was a paid a percentage of the total amount of the currency transported. He then utilized these funds to purchase various properties and assets.

U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for July 21, 2014. At that time, Maldonado faces up to 20 years in prison along with a potential fine up to $500,000 or twice the amount of the proceeds.

The investigation leading to the charges was conducted by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuting the case.

HOUSTON – Jason Wade Crawford, 37, has entered a plea of guilty to one count each of bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.

According to information presented in open court, beginning in at least May 2012, Crawford broke into several mail boxes throughout the Houston area to steal mail, much of which included checks, credit cards, gift cards and other mail with personal identifiers. He then created false identifications and used them to deposit or cash the checks.

Bank surveillance photos showed Crawford negotiating stolen checks at Woodforest National Bank and Amegy Bank. Local area law enforcement officers were also able to seize bags full of stolen mail from Crawford’s car.

At the time of his guilty plea, he admitted he participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks. 

U.S. District David Hittner, who accepted the plea, has set Crawford’s sentencing for Aug. 1, 2014. At that time, he faces up 30 years in federal prison and a possible $1 million fine for the bank fraud, while access device fraud carries a possible punishment of up to 10 years and a maximum $250,000 fine. In addition, with the conviction of identity theft, Crawford will also be required to serve a mandatory two-year prison term which must be served consecutively to any other sentence imposed.

Crawford will remain in custody pending that hearing.

The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.

CORPUS CHRISTI, Texas - Jason Thomas Dreyer, 31, has been ordered to federal prison following his conviction for possession of child pornography, announced United States Attorney Kenneth Magidson. Dreyer pleaded guilty to the charge Dec. 5, 2013. 

Today, U.S. District Judge Nelva Gonzales Ramos handed Dreyer a sentence of 60 months in prison to be followed by 10 years of supervised release. He will also have to obtain sex offender treatment and will not be permitted contact with minor children without adult supervision, cannot seek employment where minors congregate and is to have no Internet access without permission. Dreyer will also be required to register as a sex offender.

In December 2012, Dreyer was identified through an undercover investigation as an online user who was offering child pornography for distribution. That month and next, detectives successfully downloaded child pornography from Dreyer. 

Dreyer later admitted to downloading and viewing child pornography on the Internet through file sharing software. A forensic evaluation of Dreyer’s computer led to the discovery of numerous images and more than 100 videos of child pornography. The majority of the images and videos were of prepubescent females engaged in sexually explicit conduct, primarily oral and vaginal sex with adult males.

Dreyer was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations and the Corpus Christi Police Department – Internet Crimes Against Children Task Froce investigated.

This case, prosecuted by Assistant U.S. Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

BROWNSVILLE, Texas – A 10-count federal indictment has been unsealed following the arrest of three Brownsville residents for conspiring to possess with intent to distribute marijuana, announced United States Attorney Kenneth Magidson along with Stephen Whipple, acting special agent in charge of the Drug Enforcement Administration (DEA), and Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).

The indictment was returned under seal April 22, 2014, and unsealed today upon the appearances of Mario Enrique Patlan, 44, his daughter Cristina Patlan, 22, and Reymundo Abel Brown Jr., 26, before U.S. Magistrate Judge Ronald G. Morgan. At that time, they were temporarily ordered into custody pending detention hearings set for May 8, 2014. 

Mario Patlan is charged with allegedly using his security credentials and position at United Parcel Service (UPS) in order to move drugs through local airports.

“Those that violate the security entrusted to them and bypass normal screening processes that are designed to protect our shipping and transportations systems is something we do not take lightly,” said Magidson. “We will vigorously prosecute anyone we believe has attempted to engage in any criminal behavior that could potentially pose a threat to our national security.”

All are charged with conspiracy to possess with intent to distribute controlled substances. Mario Patlan is also charged with attempted possession of controlled substances with the intent to distribute, substantive drug offenses as well as three counts of making false statements to federally insured banks. Brown is also charged with attempted possession of controlled substances with the intent to distribute, while Cristina Patlan is named in substantive drug offenses.

Mario Patlan and Brown were UPS employees during the course of the drug conspiracy, according to pleadings filed in the case and worked at UPS facilities operating in Cameron County that shipped parcel through Valley International Airport in Harlingen and Miller International Airport in McAllen.

Mario Patlan held a Secure Identification Display Area (SIDA) badge issued by the Transportation Security Administration (TSA) which allows access to commercial aircraft in restricted areas of the airport, according to records. Mario Patlan allegedly used this special security status to load UPS parcels packed with illegal drugs onto commercial aircraft for shipment out of the Rio Grande Valley. Brown allegedly assisted Mario Patlan. 

According to the allegations, Cristina Patlan served as a recruiter for the conspiracy. She allegedly sought the business of drug traffickers who wanted to move marijuana via UPS facilities for a fee, typically $50 - $100 per pound. Destinations for the parcels included Michigan, Indiana, Pennsylvania, Georgia, Florida, Ohio, New York and other locations in the interior of the U.S. Government pleadings suggest one conspirator alone shipped approximately 1,000 pounds or more of marijuana in this manner.

Mario Patlan is also accused of making false statements to get loans from banks to purchase vehicles.

If convicted of the conspiracy, all face up to 40 years in federal prison and a potential $5 million fine. The other drug charges carry either up to five or up to 40 years as possible punishment and more potential fines. Mario Patlan also faces up to 30 years in federal imprisonment on each of the making false statements, upon conviction, as well as a possible $1 million fine. The indictment also includes a notice of forfeiture of a residence and $1 million.

The multi-year investigation was conducted by DEA and IRS-CI with the assistance of Border Patrol and UPS. The case is being prosecuted by Assistant United States Attorneys Charles Lewis, David A. Lindenmuth and Carrie Wirsing.

McALLEN, Texas – A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.

Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa.  Sentencing is scheduled for July 25, 2014, at 9:30 a.m.

According to a factual statement read during the plea hearing, a general election was held on or about Nov. 6, 2012, in Donna that included candidates for the presidential election, as well as various state, county and local offices, including the members of the Donna School Board. Balderas assisted in the campaign to elect four candidates to the Donna School Board. In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two campaign managers also paid voters in her presence.

Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane on Feb. 14, 2014. She is scheduled for sentencing on Sept. 16, 2014.

This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo and Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.

McALLEN, Texas - Jose Luis Garcia-Saldivar, 29, an undocumented alien from Mexico, has been sentenced to 10 years in federal prison for enticing a minor, announced United States Attorney Kenneth Magidson today. Garcia-Saldivar previously pleaded guilty Sept. 4, 2012, admitting he intended to have sex with a minor for money.
 
Today, Chief U.S. District Judge Ricardo Hinojosa heard additional evidence and ultimately handed Garcia-Saldivar a sentence of 121 months. Part of the evidence included that Garcia-Saldivar had requested the victim send him photographs of herself on her cell phone which constituted sexually explicit conduct. The sentence imposed today was enhanced because the minor victim was only 14 years of age at the time. He will also be required to register as a sex offender.
 
In April 2012, a Pharr Police Department investigator contacted Homeland Security Investigations (HSI) agents concerning the solicitation of a minor for sexual purposes. Agents recovered a cellular telephone that was being utilized by a 14-year-old minor to receive messages from adult males requesting sexual encounters in exchange for money. Posing as the minor, agents began conversing with the unknown males via text messages over the cell phone.
 
During this investigation, two others were arrested and subsequently charged in separate cases with enticing a minor. Felipe de Jesus Ponce-Torres, 25, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz and received a sentence of 120 months in prison. Teofanes Salas-Campos, 41, of Mission, entered his plea guilty before U.S. District Court Judge Randy Crane who sentenced him to 135 months in prison.
 
During their respective guilty pleas, all three men admitted they intended to have sex with an individual whom them believed was a minor and that they were going to pay the minor between $80 and $100.
 
All three men have been and will remain in custody.
 
The investigation leading to the charges against these defendants was conducted by HSI and Pharr Police Department. Assistant United States Attorneys Kimberly Ann Leo and Juan Villescas prosecuted the case.

HOUSTON - Mohammad Jamal Rashid, 45, has been ordered to prison for conspiracy to illegal importation and traffic in counterfeit and misbranded Viagra® and Cialis,® and receiving and delivering misbranded drugs, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI) and Resident Agent in Charge Tommy R. Hennesy from the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI).Rashid pleaded guilty Friday, Jan. 10, 2014.

Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Rashid a total sentence of 27 months in federal prison for both counts of conviction. A non-U.S. citizen, he is expected to face deportation proceedings following his release from prison.

In arriving at the sentence, Judge Hittner noted the serious risks posed by the illegal importation of counterfeit prescription medications, Rashid’s direct and personal role in having the drugs sent to his home as well as the results of testing done on the drugs Rashid received. Specifically, it was noted that the Viagra® tablets contained less active ingredient than what was printed on the label. In addition, the Cialis® tablets did not contain any of its active ingredient, but rather the active ingredient of Viagra.® Judge Hittner also noted that the counterfeit and misbranded drugs Rashid imported looked like the authentic product. Under the Food, Drug and Cosmetic Act, a drug is considered misbranded when it does not contain the information written on its packaging and labeling. A drug is considered counterfeit when it, or its container or labelling, bears trademarks without the authority of the registered trademark holder.

“This conviction is the culmination of a multi-agency effort to prevent the smuggling and distribution of counterfeit pharmaceuticals into the United States,” said Moskowitz. “Intellectual property (IP) related crimes such as this one help remind us of the potential public safety hazards posed by IP thieves who care more about profits than people.”

Rashid, a legal permanent resident originally from Pakistan and residing in Houston, admitted he conspired to illegally import counterfeit and misbranded Viagra® and Cialis® to his home in Houston under a false name and with a false declaration waybill. A total of 3,200 counterfeit Viagra® and 4,000 counterfeit Cialis® were sent to the defendant’s home from China in open foil blister packs without packaging or labels.

Although the drugs sent to Rashid looked authentic, testing conducted by the FDA, Pfizer and Eli Lilly confirmed the drugs were not authentic and were in fact counterfeit and misbranded. The tablets had inconsistencies in physical appearance and packaging. Additionally, the counterfeit Viagra® had less of Pfizer’s active pharmaceutical ingredient than the 100 mg stated on the foil pack, while the counterfeit Cialis® did not contain any of Eli Lilly’s active pharmaceutical ingredient.

“Distributing counterfeit and misbranded drugs puts the health of the public at risk,” said Hennesy. “The FDA will continue to work with our law enforcement partners to protect unsuspecting consumers from unsafe and illegal products.”

Rashid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The investigation into Rashid was conducted by HSI and FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.

HOUSTON – Lawrence Stowe, 61, has been ordered to prison for his role in a conspiracy to introduce misbranded and unapproved new drugs into interstate commerce, announced United States Attorney Kenneth Magidson along with Tommy Hennesy, resident agent in charge of the Food and Drug Administration (FDA) - Office of Criminal Investigations. Stowe pleaded guilty Sept. 7, 2012. 

Today, U.S. District Judge Gray Miller sentenced Lawrence Stowe, 61, a total sentence of 78 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Miller emphasized that Stowe “…took advantage of people dying and offered them hope.” Restitution was also ordered in the amount of $419,358 to be paid jointly and severally with co-defendant Francisco Morales, 54, of Brownsville. Morales was previously sentenced to 60 months in prison.

Stowe, of Moline, Ill., admitted that beginning in January 2006, he utilized several businesses, Stowe BioTherapy Inc. and The Stowe Foundation to advertise and promote a medical treatment protocol for the treatment of amyotrophic lateral sclerosis (ALS) also known as Lou Gehrig’s disease, multiple sclerosis (MS), Parkinson’s and other neurological diseases. This treatment protocol, which was named “Applied Biologics,” consisted of supplements, vaccines, patient specific transfer factors and ultimately stem cell therapy. Stowe falsely represented to patients that this treatment protocol had been reviewed by all levels of the FDA and was effective in the treatment of ALS, MS and Parkinson’s. There is currently no cure for these diseases.

At the hearing, testimony was presented by a sister of a victim in the scheme detailing how she cared for her brother in the last year of his life when he met Stowe and paid him $47,000 with the false hope of a cure. She said her brother did not have much cash so the $47,000 was all his savings. Her brother was preyed upon and never helped medically by Stowe, she said. 

“Preying on those who are among our most vulnerable consumers – those who are without hope of a cure for their conditions – is illegal and just plain wrong,” said Hennesy. “The FDA helps protect the public health, and we will move firmly against those who attempt to profit from the sale of false hope and fraudulent health products.”

Stowe entered a plea of guilty to conspiring with Morales and others to introduce supplements, vaccines and stem cells that were not approved by the FDA as well as introducing a misbranded and unapproved new drug called Immune Factor G-40 into interstate commerce, which had not been reviewed or approved by the FDA for human use.

Stowe further admitted that one of the unapproved drug products was a product called patient specific transfer factors. In order to produce this product, he obtained the services of a pathologist in Bryan/College Station. He then directed patients to send samples of their blood to the pathologist for the purpose of growing bacteria that would later be used to create the patient specific transfer factors. Stowe hired a laboratory in South Carolina to receive the bacteria which was then fed to chickens. The eggs produced by these chickens were later freeze dried and the powder from the eggs were placed in capsules and sold to patients. Stowe admitted he knew the manufacturing process and the product itself was not approved by the FDA for that treatment of human diseases.

This case was presented on the CBS News program 60 Minutes in January 2010.

Previously released on bond, Stowe was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The cases were investigated by the FDA and the FBI with assistance from Internal Revenue Service-Criminal Investigation. Former Assistant United States Attorney Samuel Louis and Assistant U.S. Attorney Cedric L. Joubert prosecuted the case with assistance of Carol Wallack with the Department of Justice Civil Division’s Consumer Protection Branch.

LAREDO, Texas - Jorge Montemayor and Leticia Reyna have been ordered to prison for their convictions of failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson. Montemayor and Reyna pleaded guilty Jan. 24, 2014, and Nov. 18, 2013, respectively.

Today, U.S. District Judge Andrew Hanen handed Montemayor a sentence of 30 months in federal prison, while Reyna will serve a 15-month term. Montemayor was ordered to pay restitution in the amount of $368,025.84 while Reyna was ordered to pay $48,562.44. Both must serve a period of supervised release following their release from prison and must perform community service.

Montemayor was the chief financial officer (CFO) of GDM Home Health Inc. and Reyna was the president of Professional Skilled Services Inc., both home health care business that provided basic skilled care in Laredo. In their roles, both had authority to conduct financial transactions and exercised signatory authority on the company's bank accounts.

As part of the plea, Montemayor admitted he knowingly and willfully failed to pay approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable employee wages from the year 2008 while Reyna admitted she failed to pay over to the IRS approximately $48,562.44 for the fourth quarter of 2008.

Both admitted that had different business expenses and personal choices been made, funds would have been available to pay these taxes. In his plea agreement, Montemayor admitted that corporate funds were used for lavish trips to Europe and Las Vegas, sporting events, restaurants, jewelry and real estate. Specifically, Montemayor agreed that between August and November 2008, GDM Home Health spent $46,548.75 on basketball tickets for the San Antonio Spurs and purchased season tickets for the Laredo Bucks hockey team. He also stated he provided local politicians and doctors tickets to attend these professional sporting events. In her agreement, Reyna admitted that corporate funds were used for shopping, restaurants and private school expenses.

Both 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 was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.

HOUSTON – Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty this week to racketeering charges related to their membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.

Kelley Ray Elley, of Seguin, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.

According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.  

By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.

Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.  
                                                 
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.

The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.

HOUSTON – Steven Patrick Jones, 49, of Kingwood, and Panama City, Panama, has pleaded guilty to mail fraud, announced United States Attorney Kenneth Magidson.

Jones has admitted he and a partner formed a company called Intermodal Wealth to sell shipping containers. Intermodal offered to sell shipping containers to investors, then lease the containers for the investors. Jones promised to pay their investors 16% per year from the proceeds of the leases. 

However, the company had few containers and did not lease any of them. Payments were made to investors, but the funds came from subsequent investors rather than from true proceeds.

Intermodal received more than $5.5 million from investors throughout the United States and worldwide. Jones, his family and partners spent the majority of the investment funds they received.

John Patrick Acord, 71, of Magnolia, is named in the indictment as Jones’ partner. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Postal Inspection Service at 713-238-4444. He is considered innocent unless convicted through due process of law.

U.S. District Judge Gray Miller, who accepted the guilty plea today, has set sentencing for Sept. 5, 2014. At that time, Jones faces up to 20 years in federal prison without parole and a fine of up to $250,000. He has been and will remain in custody pending that hearing.

The U.S. Postal Inspection Service investigated the case with the assistance of the Texas State Securities Board. Assistant U.S. Attorney Jay Hileman is prosecuting.

CORPUS CHRISTI, Texas - Roberto Veliz, 34, a U.S. citizen from Mission, has been convicted of one count of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Veliz this morning following a two-day trial and less than three hours of deliberation.  

During trial, the government presented testimony that from Feb. 15, 2013, until Oct. 5, 2013, Veliz hired women to transport marijuana for him from Mission to places such as Houston and San Antonio. During that time, law enforcement agents seized more than 160 kilograms of marijuana from the women transporting the marijuana on his behalf. In addition to those amounts seized, trial evidence proved Veliz was transporting marijuana from Mission to Houston or San Antonio at least once a month, sometimes more. The marijuana was wrapped in plastic bundles and concealed inside suitcases.            

U.S. District Judge Nelva Gonzales Ramos, who presided over trial, has set sentencing for Aug. 5, 2014, at which time he faces a mandatory minimum of five and up to 40 years imprisonment as well as $5 million fine. 

This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Chad W. Cowan. 

HOUSTON – Han Woon Liew, 45, of Sugarland, has been arrested for conspiracy to traffic in counterfeit goods, announced United States Attorney Kenneth Magidson.

The indictment, returned under seal April 16, 2014, was unsealed today upon Liew’s arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow at 10:00 a.m. 

The one-count indictment alleges that from January 2012 and continuing through the date of the indictment, Liew intentionally trafficked in goods, specifically counterfeit Louis Vuitton, Michael Kors, Coach and Gucci purses and wallets. Liew knowingly used counterfeit marks, which were registered trademarks, in an attempt to make the items appear legitimate, according to the allegations. 

The maximum penalty, upon conviction, for conspiring to traffic in counterfeit goods is 10 years imprisonment and a maximum fine of $2 million. The indictment also includes an order of forfeiture of $3 million.

The investigation leading to the charges was conducted by Homeland Security Investigations. Assistant United States Attorney (AUSA) Celia Moyer and Special AUSA Mark Evans are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

LAREDO, Texas - Israel Garza, 40, of Mission, has been ordered to federal prison for 240 months following his conviction for possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. Garza pleaded guilty Dec. 10, 2013, admitting he possessed with the intent to distribute 14 kilograms of cocaine.

Today, U.S. District Judge Marina Garcia-Marmolejo handed Garza the 20-year sentence which will be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Marmolejo noted Garza is a career drug offender and his actions resulted in a significant punishment. At sentencing, Garza addressed the court as well as a group of visiting school children, whom he told to live a clean and positive life and not make the mistakes he did or else they will spend their lives in prison.

On Sept. 18, 2013, Border Patrol (BP) agents arrested Garza at the checkpoint approximately one mile south of Hebbronville. At that time, a canine dog alerted to the presence of narcotics in an ice cooler located in the cab of the freightliner tractor-trailer he was driving. The cooler appeared to be bulging abnormally. Upon further inspection, agents discovered 12 vacuumed-sealed packages inside, containing approximately 14 kilograms of cocaine, valued at $976,000.

Garza admitted he was delivering drugs for the Gulf Cartel. 

The case was investigated by the Drug Enforcement Administration and United States Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted this case.

LAREDO, Texas – Yi Hui Chen, 47, a merchant in downtown Laredo, has been ordered to federal prison for trafficking in counterfeit goods and ordered to pay more than $400,000 in restitution, United States Attorney Kenneth Magidson announced today along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI). Chen pleaded guilty May 16, 2013.

Today, U.S. District Judge Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Chen a sentence of 18 months in federal prison. He was further ordered to pay restitution in the amounts of $265,836 to Coach and $80,324.23, $39,943.33, $35,675, $5,343, $826.23 and $290 to Tory Burch, Louis Vitton, Gucci, Burberry, Nike and Prada, respectively.

Chen, a U.S. legal permanent resident who was born in Taiwan, was the owner of J Design located in downtown Laredo. He is expected to face deportation proceedings following his release from prison.

HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna. 

“Intellectual property theft is not a victimless crime and should concern every American,” said Ayala. “Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”

The case was investigated by HSI. The case was prosecuted by former Assistant U.S. Attorney (AUSA) Roel Canales. AUSA Shawn Coker handled the sentencing today.   

HOUSTON – Alexander Joseph Johnson, 25, has been ordered to prison following his three convictions of transportation, transportation of a minor and sex trafficking of a minor, announced United States Attorney Kenneth Magidson. Johnson was indicted in August 2013 and pleaded guilty Dec. 16, 2013, to all counts as charged without a plea agreement.

Today, U.S. District Judge Nancy F. Atlas handed Johnson 120 and 128 months for the transportation and transportation of a minor charges, respectively, and 128 months for sex trafficking of a minor. The sentences will run concurrently for a total of 128 months. In handing down the sentence, Judge Atlas commented that he was an adult and should have known better and that hopefully his time in prison would lead him to understand that he cannot exploit young women to make a living. Johnson was further ordered to serve 10 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.

The investigation concluded that Johnson had posted online advertisements for commercial sex with a female in both Houston and Colorado. The 15-year-old victim was forced to perform sex acts with strangers for money and was required to earn $500 an evening and turn that money over to Johnson. When she met her quota, he would “reward” her by having sex with her. Johnson repeatedly gave the young female marijuana and alcohol. Food was provided only at his discretion.

Johnson was arrested Aug. 6, 2013, based on a criminal complaint. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using online advertisements for the victim’s services and hotel records from several hotels.

This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.

McALLEN, Texas – Five defendants, all former law enforcement officers, have been ordered to federal prison for their roles in a drug trafficking conspiracy, announced United States Attorney Kenneth Magidson.

Jorge Garza, 60, of Edinburg, was convicted in August 2013 after six days of trial, while Fernando Guerra Jr., 24, Claudio Mata, 35, and James Phil Flores, 47, all of Edinburg, and Gerardo Mendoza-Duran, 31, of Pharr, all previously pleaded guilty in relation to the case.
 
Today, U.S. District Judge Randy Crane handed Mata a total sentence of 140 months in federal prison. Garza received a sentence of 121 months, while Flores was sentenced to a 120-month term of imprisonment. Mendoza-Duran and Flores both received 96-month terms.
 
“The prosecution of corrupt law enforcement officers will always be a priority of this office in order to ensure the community’s faith in our judicial system,” said Magidson. “The sentencings today represent part of that continuing effort.”
 
Fernando Guerra Sr., 48, Jonathan Trevino, 29, Eric Alcantar, 29, Alexis Espinoza, 30, all of McAllen, Salvador Arguello, 34, of Edinburg, and Fabian Rodriguez, 29, of Edcouch, have all also pleaded guilty in the case and are expected to be sentenced tomorrow.
 
Arguello, Mata, Alcantar and Rodriguez were former members of the Hidalgo County Sheriff’s Office (HCSO) and the now infamous and defunct Panama Unit. Espinoza was a former Mission Police Officer, as was Trevino who also served on the Panama Unit. Mendoza-Duran, Flores and Garza were all members of the HCSO, but not part of the Panama Unit itself. All were convicted of using their positions as law enforcement officers to traffic narcotics.

“Today’s sentencing of law enforcement officials involved in crimes they are sworn to investigate serves as a sobering warning about the consequences of violating the public's trust,” said Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. “While HSI is saddened by the circumstances that brought this sentencing to bare, HSI feels justice has been served.”
 
The investigation revealed that from 2010 through 2012, the defendants used their positions to steal narcotics and currency from local drug traffickers. The stolen narcotics were then re-distributed to Guerra Sr. In addition, Trevino, Espinoza and Mendoza-Duran attempted to assist narcotics traffickers by escorting loads of cocaine which travelled through Hidalgo County in exchange for thousands of dollars.

The Guerras, Flores and Garza were also convicted for their roles in the distribution of stolen narcotics. Flores and Garza assisted Guerra Sr. and Jr. by performing false traffic stops utilizing HCSO vehicles in order to assist the Guerras with the theft of the narcotics.
 
The investigation leading to the charges was conducted by HSI, Drug Enforcement Administration, Immigration and Customs Enforcement - Office of Professional Responsibility, FBI and the Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.

LAREDO, Texas – Marco Antonio Marchan, 45, has been ordered to federal prison for engaging in a conspiracy to distribute and possession with intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury convicted Marchan Wednesday, Dec. 18, 2013.

Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a sentence of 210 months in federal prison to be immediately followed by a five-year-term of supervised release.

At the hearing, additional information was presented to include that Marchan was was not just any offender, but a leader/organizer in a long standing conspiracy. The government argued Marchan had been engaged in drug trafficking on a long-term basis and that between 2008 and 2009 alone he arranged for others to transport more than 8,500 kilograms of marijuana from Laredo to the Dallas area. The government noted that the evidence presented at trial established Marchan was the man who coordinated and arranged for the delivery of several loads of marijuana from Laredo to Dallas. Marchan would call upon co-defendants to deliver the drugs to warehouses in Laredo to his drivers who would then transport it to Dallas. Marchan would then dictate where and to whom the marijuana would ultimately be delivered. Marchan would set the price of the marijuana in Dallas in order to ensure he would profit from the endeaver.

Further information was also presented today to indicate Marchan obstructed and impeded justice when he indirectly attempted to intimidate and otherwise influence a witness who was set to testify against him.

The court concurred and found him to be a leader/organizer, that he did in fact obstruct justice and, therefore, was subject to a significant sentence. Following the hearing, a family member of Marchan stood and protested the sentence.

During trial, evidence was presented that Marchan was a former Laredo resident who had several businesses but moved to the Dallas area in 2008, where he operated a business known as Bumper World. According to testimony, upon moving there, he began coordinating to have Los Zetas supply him with multi-ton quantities of marijuana in the Laredo area for ultimate delivery to him in the Dallas area.

A former co-conspirator testified that Marchan had previously been kidnapped by the Zetas for a drug debt and decided to move his drug trafficking operation to the Dallas area. From 2008 to 2009, Marchan had been supplied with at least six marijuana loads. The investigation revealed Marchan’s co-conspirators had sent him 5,500 pounds to the Dallas area on Nov. 30, 2009, and then an additional load of 1,132 kilograms three days later.

Between Nov. 24, 2009, through Dec. 2, 2009, Marchan recruited a person to secure a warehouse and truck driver who could deliver 1,300 kilograms of marijuana from Laredo to Dallas. That person reported the incident to the Drug Enforcement Administration (DEA) and an undercover operation was launched during which time agents coordinated to receive the marijuana.

Marchan ordered the drugs to be delivered to a certain address on Dan Morton Street in Dallas. Marchan’s Bumper World business trucks were seen throughout the area conducting counter surveillance while the transaction was underway. Marchan’s people also followed a white van to a second location where the marijuana was off-loaded from the undercover tractor trailer to the van. The white van then transported the marijuana to a third location, a residence on Lynnacre in Dallas. There, a search warrant was executed which resulted in the discovery of the 1,132 kilograms of marijuana in the van. An additional 2,877 kilograms of marijuana was also found inside the residence which was believed to be the load sent to Marchan on Nov. 30, 2009. 

The total weight of marijuana seized by DEA Laredo and Dallas was 4009 kilograms with a value of more than $2.5 million.

The jury deliberated for less than an hour in returning the guilty verdict against Marchan in December 2013.
 
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The case was investigated by DEA Laredo and Dallas with the assistance of local Dallas law enforcement authorities and prosecuted by Assistant United States Attorneys Mary Lou Castillo and Sanjeev Bhaskar. 

McALLEN, Texas - A federal grand jury has returned a second superseding indictment against Fidel Salinas, 27, of Donna, adding additional attempted computer-hacking charges and 18 counts of cyberstalking, announced U.S. Attorney Kenneth Magidson. 

According to the criminal complaint originally filed in the case, Salinas is allegedly linked to the computer-hacking group Anonymous. With the return of the second superseding indictment today, he now faces 44 charges arising out of his alleged attempts in 2011-2012 to hack into the computers of Hidalgo County, La Joya Independent School District and the McAllen Monitor newspaper, as well as a female victim, whom he allegedly cyberstalked at least 18 times in the days surrounding Christmas 2011.

According to the allegations, between Dec. 23-29, 2011, Salinas had the intent to harass and intimidate a female victim. Allegedly, he repeatedly e-mailed her, attempted to gain unauthorized access to her website, made submissions through a contact form on that site and tried to open user accounts without her consent.

The indictment lists his alleged attempts to stalk her and hack into her website. According to the indictment, he repeatedly did so late at night and early in the morning, with his stalking attempts or messages sometimes occurring less than one minute apart from each other. He allegedly did so as part of a conspiracy or agreement with at least one other person, according to the charges. 

Salinas also remains charged with attempting to hack into and damage computer servers belonging to Hidalgo County, the La Joya School District and The Monitor over the course of five days in 2011-2012 and causing thousands of dollars in loss as a result. Court documents allege that between the late night and early morning of Jan. 4-5, 2012, Salinas made more than 14,000 hacking attempts to the administration management page of the Hidalgo County website server, resulting in true administrators temporarily not being able to access it. The county allegedly incurred a loss of more than $10,000 in responding to the attack.

He believed the web server contained voter registration information, Social Security numbers, personal identifiers and human resource and payroll information on county employees, according to the charges. 

The superseding indictment charges Salinas with conspiring with others to attempt to hack into and damage these sites and links him to the computer-hacking group Anonymous.

Salinas allegedly participated in an online chat room for the Operation Anti-Security faction of Anonymous and attempted to enter the IRC Operations server for Anonymous. According to the charges, after his alleged attempt to hack his way into the Hidalgo County web server, he posted a profanity-laced rant on his Facebook page that ended with a quote used by Anonymous members: “We do not forgive, we do not forget, divide by zero we fall, EXPECT US!”   

Salinas faces up to 10 years in federal prison on each of the charges, 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.

HOUSTON – Two professors at the University of Houston have been charged with making false statements and wire fraud in connection obtaining federal funds for research grants, announced United States Attorney Kenneth Magidson.

Abdelhak Bensaoula, Ph.D., 57, and David Starikov, Ph.D, 58, both of Houston, surrendered to federal authorities this morning. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m.

The 29-count indictment, returned April 24, 2014, alleges one count of conspiracy, seven counts of making false statements and 21 counts of wire fraud, all in connection with the Small Business Innovation Research (SBIR) program.  

According to the indictment, both defendants are professors in the Physics Department at the University of Houston and are affiliated with The Nitride Group. They allegedly started a small business known as Integrated Micro Sensors Inc. (IMS) which applied for and received SBIR grants or contracts from NASA, National Science Foundation, Department of Energy and the United States Air Force.    

The indictment further alleges Bensaoula and Starikov made false statements in the application and proposal process and in filing electronic claims for payment after they were awarded grants or contracts. On behalf of IMS, they both allegedly used false and fraudulent letters of support and made false representations with regards to facilities, equipment and materials. Additionally, the indictment alleges the defendants stated in proposals that IMS would pay a required subcontract fee to the University of Houston, which it failed to pay on four of five contracts. Bensaoula and Starikov, through IMS, also allegedly  applied for and received at least 25 SBIR grants between 2000 and 2013. From 2008 through 2013, the defendants and IMS allegedly received at least five SBIR contracts for approximately $1.3 million.           

The defendants allegedly attempted to hide their scheme from detection from the government and university officials.

If convicted of the conspiracy, both face up to a five-year prison term as well as another five years upon each conviction of making false statements. For the wire fraud charges, the defendants face up to 20 years for each conviction. All charges also carry as possible punishment a $250,000 fine.

The investigation of this case has been conducted by the NASA - Office of Inspector General, National Science Foundation, U.S. Department of Energy, U.S. Air Force, Defense Criminal Investigative Service and the Defense Contract Audit Agency with the assistance and cooperation of the University of Houston. Assistant United States Attorney Cedric L. Joubert is prosecuting. 

HOUSTON – Dante Phearse, 33, has entered a plea of guilty to calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division.

Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, he admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device. 

According to court records, Phearse called the synagogue and left the following voice message.

Yes hello, um I was just wondering when you’re going to actually stop lying to the people you know we been helping you Jews for a long time you know the Shriners and we been considering the fact the people that blacks are the direct descendents of God we know there is no such thing as a white Jew Jews out there in Jerusalem all those (unintelligible)... they’re black we know that Jews are over the media over a lot of things y’all staged these bomb attacks is a lie saying this is an Islamic terrorist group you know we are not supporting you Jews anymore we’re tired of lying to you the Masons and Eastern Stars we are a Satanist group we just we using you Jews for money we know that you’ve been teaching the fact that blacks are cursed that’s why they have long penises we all know they are the real chosen people If you don’t stop and tell your students the truth we will be forced to bomb your facility I’m sorry about this but we will be forced to bomb your facility on May 2nd we’re Mason’s  the Illuminati is the one who is going to take over. 

As a result of the above threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.

U.S. District Judge Kenneth M. Hoyt, accepted the plea today and has sentencing for July 7, 2014. At that time, Phearse faces up to 20 years in federal prison for the civil rights violation and a maximum 10 years for making bomb threats over the telephone.   

The FBI investigated the case with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ruben Perez and Joe Magliolo and Civil Rights Division Trial Attorneys Nicholas Murphy and Saeed Mody are prosecuting in cooperation with the Harris County District Attorney’s Office.

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.

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.

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.

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.

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.

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.