Southern District of Texas
Press releases recorded for this federal judicial district.
Houston Area Pastor Heads to Prison for Investment Fraud SchemeRead the Press Release
HOUSTON - Samuel Ray Palasota, 53, has been ordered to federal prison following his convictions on multiple counts of mail and wire fraud, announced United States Attorney Kenneth Magidson. The Houston-area pastor was convicted of 21 counts of mail fraud and three counts of wire fraud in conjunction with an investment fraud ponzi scheme after three days of trial on Oct. 17, 2013.
Today, U.S. District Judge Ewing Werlein Jr. found the intended loss amount to be more than $1 million, because Palasota had attempted to cause the victim to sell her home and give him those funds in addition to the $650,000 in investment funds she had already sent him. As a result of the convictions and total intended loss, the court ordered he serve 71 months in federal prison to be immediately followed by a three-year-term of supervised release. Judge Werlein further ordered the forfeiture of two vehicles Palasota had purchased with proceeds of the fraud scheme - a Dodge Ram truck and a Hyundai Genesis sedan.
During trial, the victim of the fraud scheme testified that Palasota convinced her to invest in what he claimed was a real estate investment program. Palasota provided her with documentation of the so-called real estate investment that was to be run under his company name, “The Maker’s Resources.” The documents from Palasota, which were introduced at trial, stated she would receive a “guaranteed” 40 percent return on her principal annually if she provided Palasota with $650,000 to invest. The recently divorced mother with young children agreed to the investment program and, in September 2009, sent Palasota the requested investment funds.
At the hearing today, additional evidence was presented including religious-themed letters Palasota had written to the victim in order to lull her into complacency while she was “investing” her money with him.
Detailed bank records and financial charts were introduced at trial demonstrating Palasota invested none of the victim’s funds in real estate.
During the scheme, Palasota mailed and wired funds to the woman that he termed “returns on investment.” However, the financial records illustrated that the funds Palasota sent were just a small portion of the woman’s own investment principal, rather than the profits of a legitimate investment. She further testified that the alleged returns on her investment Palasota sent convinced her that the investment program was real and was successful.
The financial documents demonstrated that instead of investing in real estate, Palasota spent Rowland’s investment funds on luxury goods, such as cars, clothing, jewelry, computer equipment and furniture, among other items. The financial documentation showed that by late 2010, Palasota had spent all of the victim’s funds. Further, by that time, Palasota’s bank account balance was negative.
Palasota 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. Assistant United States Attorneys Robert S. Johnson and Sharad Khandelwal prosecuted the case.
4 Charged with Sex Trafficking of MinorsRead the Press Release
HOUSTON – Emanuel Dandre Wade, 24, has been indicted along with Charmaine Henderson, 25, Ashley Shawntal Williams, 21, and Darquesha Perry, 26, for conspiracy to commit sex trafficking of minors, announced United States Attorney Kenneth Magidson. Henderson and Wade are also charged with one and five counts of sex trafficking of minors, respectively.
The six-count indictment, returned under seal March 4, 2014, was unsealed in its entirety upon the arrest of Williams today. She is expected to make her initial appearance before U.S. Magistrate Judge Stephen Smith at 10:00 a.m. or 2:00 p.m., at which time the government expects to request her detention pending further criminal proceedings.
Henderson has been in state custody on charges stemming from this investigation and will make her initial appearance on the federal charges today at 10:00 a.m.
Wade will also appear on these charges today at 10:00 a.m. He was taken into custody Feb. 10, 2014, upon the filing of a criminal complaint and appeared for a detention hearing two days later. At that time, U.S. Magistrate Judge George Hanks found probable cause that Wade committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk. He was ordered into custody pending further criminal proceedings.
Perry was taken into custody March 6 and was released upon posting bond, but will have to wear an electronic monitor and abide by several conditions including having no unsupervised contact with minors.
The criminal complaint, filed Feb. 10, 2014, alleges the girls were forced to prostitute for Wade and were severely beaten in some instances.
According to that complaint, Williams supplied a vehicle in which Wade transported several minor victims to dates where the girls participated in commercial sex acts. Williams often transported the girls herself, according to the allegations. In one instance, after one of the victims had left, Williams allegedly lured her out and transported her back to Wade who then beat her to the point that she needed medical attention, according to the charges.
The complaint further alleges Perry transported a minor victim to Wade on many occasions when the minor victim was caused to participate in commercial sex acts and Perry participated in commercial sex acts herself.
All four defendants face up to life in federal prison for the conspiracy charge, upon conviction. For sex trafficking of minors, Henderson and Wade also face a minimum of 10 years and up to life imprisonment on each count of conviction. All charges also carry as possible punishment a fine of up to $250,000.
The Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office, investigated this case. Assistant United States Attorney Sherri L. Zack is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Corpus Christi Man Sentenced in Child Pornography CaseRead the Press Release
CORPUS CHRISTI, Texas – Jose Gutierrez III, 21, has been ordered to prison following his conviction of possession of child pornography, announced United States Attorney Kenneth Magidson. Gutierrez pleaded guilty Nov. 8, 2013.
Today, Senior United States District Judge Janis Graham Jack considered the very low rate of successful treatment for individuals who are sexually attracted to children and subsequently handed him a total of 80 months in federal prison. He will also have to pay a $5,000 fine to a known victim of the child pornography series he possessed. In handing down the sentence, Judge Jack noted that Gutierrez has been interested in child pornography since he was 15 years old, accounting for most of his teenage and adult life. Gutierrez was further ordered to serve the rest of his life on supervised release following completion of his prison term and he will be ordered to register as a sex offender.
On Nov. 3, 2012, Homeland Security Investigations (HSI) identified a user on the Internet that was making files of suspected child pornography available to other users. That person was ultimately identified as Gutierrez who lives in Corpus Christi.
Agents and officers executed a federal search warrant on his home, at which time he admitted to using the Internet to acquire images of child pornography. Gutierrez stated that his interest in child pornography had begun several years prior and that he had continued to engage in this behavior despite knowing it was illegal. Several computers and other electronic storage devices were seized from Gutierrez which were later found to contain numerous images of child pornography.
Previously released on bond, Gutierrezwas taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI with the assistance and support of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant United States Attorney Lance Duke is prosecuting.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 22-year-old Houston man will be spending the next 189 months in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Demontray Ward entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Justin Devon Hayes, 24, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Ward a sentence of 105 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes is set for sentencing May 5, 2014.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.Rockwall Resident Sentenced and Ordered to Pay $10 Million in Restitution for Massive Fraud SchemeRead the Press Release
HOUSTON – Kelly Taylor Gipson, 34, has been ordered to federal prison for 48 months and ordered to pay $9,651,660.15 to victims of life settlement investment fraud scheme, announced United States Attorney Kenneth Magidson along with special agent in charge Lucy Cruz, Internal Revenue Service – Criminal investigation (IRS-CI) and Inspector in Charge Robert Wemyss, U.S. Postal Inspection Service (USPIS).
Gipson was accused along with Charles Craig Jordan, 34, of misappropriating investor funds which ultimately resulted in policies lapsing and investors losing their investment. Jordan entered a guilty plea to conspiracy to commit mail and wire fraud, while Gipson pleaded to conspiring to launder the proceeds from the fraud scheme.
Today, U.S. District Judge Lee H. Rosenthal sentenced Gipson to the four-year-term to be followed by three years of supervised release. Jordan was sentenced in December 2013 to 156 months in federal prison. Both were further ordered to pay restitution of $9,661,660.15 to 503 individuals named as victims in the case.
Jordan and Gipson were accused of devising a scheme to defraud investors from around the United States and Canada who invested millions in the life settlement offerings of Secure Investment Services and American Settlement Associates of Houston. Secure Investment Services was a business name utilized by Jordan initially in this scheme.
A life settlement is an investment in which a person, who is typically elderly or terminally ill, sells his or her life insurance policy for a cash payment, which is a percentage of the life insurance policy’s face value or death benefit payable by the insurance company upon the insured’s death. Once the insured sells an insurance policy, the insured is no longer responsible for paying the policy’s premiums. To keep the policy in force, the life settlement company must ensure any premiums are paid. All premiums due prior to the death of the insured must be paid, in full and on a timely basis, to prevent additional cost or lapse. Investors who purchase life settlements only realize a profit if the total amount invested in the policy, including the purchase price and any additional premium costs, is less than the amount of the death benefit. A life settlement is not profitable if the expenses of acquiring and maintaining the policy (including the amount of premiums that are paid) are more than the amount of the death benefit paid when the insured dies. Typically, the longer an insured lives, the more expensive it is to maintain a life settlement.
Jordan resided in Los Angeles, Calif., and Gipson lived in Rockwall, Texas, while they have been on bond pending the criminal proceedings. While on bond, each are to make monthly payments into the registry of the court towards an anticipated restitution order.
The criminal investigation was conducted by IRS-CI and USPIS and prosecuted by Assistant United States Attorney Melissa Annis.Local Attorney, His Father and 17 Others Sentenced for Trafficking Cocaine Through Starr CountyRead the Press Release
McALLEN, Texas – A total of 19 people have been handed federal prison sentences for their roles in a drug trafficking conspiracy originating out of Starr County involving more than 10,000 kilograms of marijuana in 2012 and 2013, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio.
“This HSI Organized Crime Drug Enforcement Task Force (OCDETF) investigation, worked in collaboration with the Drug Enforcement Administration (DEA) and our other law enforcement partners, dealt a major blow to the Delfino Bazan Drug Trafficking Organization as 19 of its members were sentenced,” said Ayala. “HSI, in collaboration with the DEA, seized approximately 12,247 kilograms of marijuana, 19 weapons, along with U.S. currency and other personal property purchased with illicit proceeds.”
U.S. District Judge Crane sentenced South Texas attorney Jose Luis Palacios Jr., 38, of Mission, and his father, Jose Luis Palacios Sr., 64, a legal permanent resident of Edinburg and owner of J&J Auto Sales in McAllen to 144 and 60 months in federal prison, respectively. Elee Camargo, 37, of McAllen, an oil field service’s entrepreneur, received a sentence of 84 months. They were all convicted for their roles in the attempt to coordinate the transportation of 428 kilograms of marijuana to the primary target of the investigation, Delfino Bazan.
Bazan, 44, of Houston, would receive shipments of marijuana from various co-conspirators in Houston to sell to others. Today, he was sentenced to a total of 324 months in prison. It is estimated that over the course of the conspiracy, Bazan was receiving at least 1,000 kilograms of marijuana each month to distribute to others in the spring of 2012. Bazan was also sentenced to 324 months for cocaine trafficking in a case originating out of the Eastern District of Texas. The sentences will be served concurrently. As part of the plea agreement in that case, he has agreed to a monetary judgment of more than $10 million.
Bazan’s common law wife Alejandrina Martinez, 43, of Houston, received a sentence of 30 months for her role in laundering drug proceeds through bank accounts on behalf of Bazan.
Also sentenced today were Sostenes Ferreira-Garcia, 50, Enrique Montalvo, 40, and Jose Felipe Ramon, 33, all of Rio Grande City; and Samuel Espino-Morales, 59, Jorge Luis Martinez-Moreno, 28, and Homero Daniel Gutierrez-Aguilar, 24, all of Camargo, Tamaulipas, Mexico. All were each sentenced for their respective roles in smuggling marijuana from Mexico into the United States near La Casita for further distribution within the United States. They assisted in the smuggling of at least 10,000 kilograms of marijuana during the spring of 2013, all of which was intercepted by law enforcement during the course of the investigation. Ferreira-Garcia, who coordinated the smuggling and further distribution was sentenced to 240 months. Enrique Montalvo scouted for the group and received a sentence of 108 months. Load driver Espino-Morales was sentenced to 51 months, while Martinez-Moreno and Gutierrez-Aguilar, who assisted with the loading and unloading of the marijuana were sentenced, respectively, to 140 and 112 months in prison. Ramon allowed his residence to be used as a stash location and received a sentence of 135 months in prison.
Eight others - Ivan Del Jesus Campos-Landa, 31, David Muniz, 54, Jose Luis Lozano, 41, Mario Alberto Martinez, 44, and David Ulloa Correa, 48, all of Rio Grande City; Thomas Garcia, 53, of Garciasville; Edmundo Canales, 23, of Edinburg; and Rosendo Benitez, 45, of McAllen - were all convicted of attempting to transport varying amounts of marijuana at varying times throughout the conspiracy. Campos-Landa was sentenced to 57 months, while Muniz, Lozano, Martinez, Correa, Garcia and Canales were ordered to serve 60, 41, 72, 24, 120 and 46 months in prison, respectively. Benitez will serve a 87-month-term of imprisonment.
The OCDETF investigation dubbed “Operation Casanova” was conducted by HSI, DEA Internal Revenue Service – Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Jury Convicts Leader of Houston Hostage Taking OrganizationRead the Press Release
HOUSTON – A federal jury in Houston has convicted Mexican national Samuel Castro-Flores, aka “Chame” or “Chamuco,” 41, on 18 counts to include conspiracy to commit hostage taking, hostage taking and other charges involving smuggling aliens and firearms, announced United States Attorney Kenneth Magidson. The verdict was returned this afternoon following a two-week trial and approximately an hour of deliberation.
The charges in the case stem from an investigation that began in mid-August 2012. Two illegal aliens had been smuggled into the country and their family members began to receive extortion calls demanding money for their release.
On Sept. 7, 2012, agents executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members paid for their release. Victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Some victims said they were threatened with harm or death if payment was not received.
The evidence at trial showed Castro-Flores was the leader of the organization which held these aliens hostage and extorted their families for thousands of dollars before their release. The evidence demonstrated Castro-Flores took extensive steps to avoid being detected by law enforcement. For example, he asked witnesses to help him present a false story that he was simply a repairman who happened to be at the Amblewood residence on one occasion to fix the air-conditioning.
An air-conditioning repair company owner in Houston reported that he once employed Castro-Flores as a helper in his business but fired him after learning he was involved in smuggling aliens. He also testified Castro-Flores later tried to use him to present a false impression to law enforcement that he was only involved in the air-conditioning business.
Prior to committing the offenses in this case, Castro-Flores was convicted of conspiracy to harbor aliens in the Southern District of Texas in July 2009 and subsequently deported in January 2011. He re-entered the United States after his deportation and was arrested in this case on Dec. 5, 2012, in Houston. Before trial, Castro-Flores pleaded guilty to illegal re-entry, one of the charges from the indictment in the current case.He was convicted of one count of conspiracy to commit hostage taking, five counts of hostage taking, one count of conspiracy to harbor illegal aliens, five counts of harboring illegal aliens, one count of being an alien illegally present in the U.S., one count of
conspiracy to transport illegal aliens, two counts of transportation of illegal aliens, as well as using and carrying a firearm in furtherance of a crime and brandishing that firearm.U.S. District Judge Gray Miller, who presided over the trial, has set sentencing for June 28, 2014. At that time, he faces up to life in prison for each of the hostage taking counts. He also faces up to 20 years for the illegal entry after deportation and up to 10 years for each of the alien harboring and transporting counts. For the firearms charges, he will also face another seven years to life in prison, which must be served consecutively to any other prison term imposed. All the convictions also carry as possible punishment a $250,000 fine.
Already on supervised release for the 2009 alien harboring case, he faces possible revocation of that term and up to another 10 years additional imprisonment.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington, D.C., and Virginia along with the Houston Police Department. Assistant United States Attorneys Casey N. MacDonald and Arthur R. Jones prosecuted the case.
Federal Agent Charged in Insurance Fraud SchemeRead the Press Release
McALLEN, Texas - Reynaldo Gonzalez, 37, has been arrested following the return of a 13-count federal indictment charging wire fraud, aggravated identity theft and making false statements to federal agents, announced United States Attorney Kenneth Magidson. Gonzalez is a deputy U.S. Marshal in San Antonio.
The sealed indictment was returned yesterday and unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge John Primimo at 3:00 p.m. today in San Antonio.
The indictment alleges Gonzalez purchased an accident-only insurance plan from the American Family Life Assurance Company (AFLAC) in May 2005. From Feb. 4, 2008, through March 24, 2009, Gonzalez allegedly engaged in a scheme to defraud AFLAC by submitting fraudulent claims alleging he had received medical treatment for various injuries. To accomplish the fraud, Gonzalez used a physician’s signature and tax identification number without the physician’s knowledge or consent, according to the charges. AFLAC, in turn, allegedly sent several benefit checks to Gonzalez as payment for these fraudulent claims.
The indictment further alleges Gonzalez stated to federal agents that the claims legitimately reflected his injuries and resulting examination by the physician. However, the physician had not treated Gonzalez since 2007, according to the allegations.
If convicted, he faces up to 20 years in federal prison on the six wire fraud counts as well as another five years on each of the six counts of making false statements. Aggravated identity theft carries as possible punishment another mandatory two-year-term which must be served consecutively to any other prison term imposed. Each count could also include a fine of up to $250,000.
The investigation was conducted by the FBI with assistance from the Office of the Inspector General. Assistant United States Attorneys Grady J. Leupold and Linda Requénez 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.Mexican Pair Indicted in Debit/Credit Card ConspiracyRead the Press Release
McALLEN, Texas – A federal grand jury has returned a four-count indictment against Mary Vaquera-Garcia, 27, and Daniel Dominguez-Guardiola, 28, alleging a conspiracy to use debit/credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Vaquera-Garcia and Dominguez-Guardiola, both of Mexico, allegedly wired thousands of dollars overseas to purchase stolen account information in order to create counterfeit debit/card cards. According to the charges, the cards had account numbers belonging mostly to Hidalgo County residents. The defendants then allegedly used the counterfeit cards to purchase high-end electronics - such as iPads, iPods and Macbook laptops - at local stores including Best Buy, Wal-Mart, K-Mart, Toys-R-Us and HEB. In particular, subsequent investigation revealed the defendants went on a $30,000 shopping spree on Jan. 12 using the counterfeit cards, according to the allegations.
Vaquera-Garcia and Dominguez-Guardiola were arrested Jan. 19, 2014, on several outstanding warrants as they attempted to re-enter the U.S. through the Anzalduas Port of Entry. A total of 96 counterfeit cards were allegedly found hidden in Dominguez-Guardiola’s waistband.
If convicted, they face up to 10 years in federal prison and a possible $250,000 fine on each count.
Both have been ordered to remain in custody pending further criminal proceedings.
This case was investigated by the Secret Service with the assistance of the McAllen Police Department. 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.League City Registered Sex Offender Convicted of Multiple Counts Involving Child PornographyRead the Press Release
GALVESTON, Texas – Donald Post, of League City, 68, has entered a guilty plea to production and distribution of child pornography involving a four-year-old minor female as well as possession of child pornography, announced United States Attorney Kenneth Magidson.
Post was arrested Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
Post has admitted to photographing a four-year-old female victim in lewd and lascivious poses and then distributing these images via the Internet. He also authored a document that chronicled his activities with this victim. The account of the incident is incredibly graphic and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
U.S. District Court Judge Gregg Costa , who accepted the guilty plea, has set sentencing for May 21, 2014. At that time, Post faces a minimum of 25 years and a possible 20, 40 and 50 years, respectively, for the possession, distribution and production of child pornography convictions. The charges also carry as possible punishment a maximum fine of $250,000. Upon completion of any prison term imposed, he further faces a maximum of life on supervised release and he will again be required to register as a sex offender.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
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."
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
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."
Heroin and Methamphetamine Traffickers ConvictedRead the Press Release
LAREDO, Texas - Edgar Loera and Miguel Angel Vives-Macias have been convicted by a federal jury of multiple counts in a drug trafficking conspiracy involving heroin and methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late today after a five-day trial and less than four hours of deliberation.
Loera, 31, of Mira Loma, Calif., and Vives-Macias, 34, of San Antonio, were convicted of conspiracy to import and possession with intent to distribute controlled substances as well as importation and possession with intent to distribute heroin.
Prior to trial, 10 others had pleaded guilty in relation to the conspiracy.
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois and Washington. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entry U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for June 2, 2014, at which time both face up to life in federal prison and a possible $10 million fine. They will remain in custody pending that hearing.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with the Drug Enforcement Administration, Homeland Security Investigations and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno prosecuted the case.Rio Grande City Man Sentenced for Smuggling Nearly 3,000 Kilograms of MarijuanaRead the Press Release
LAREDO – Rodolfo Reyna Sanchez, 45, of Rio Grande City, has been ordered to federal prison following his conviction of possession with the intent to distribute 2,845.5 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Diana Saldaña sentenced Sanchez to a term 80 months imprisonment to be followed by a three-year term of supervised release.On July 30, 2012, Border Patrol agents were patrolling the Mines Road area northwest of Laredo just south of the Briscoe Ranch and noticed a tractor-trailer traveling north, which agents determined as registered to Sanchez. The vehicle was traveling on a route commonly used to avoid U.S. Border Patrol checkpoints and contained caliche, a sedimentary rock with little value in the back.
When agents approached, they immediately noticed a strong smell of marijuana. Sanchez provided consent to search his vehicle, at which time agents discovered 404 bundles of marijuana under the thin layer of dirt and rock in the trailer. The marijuana weighed 2,845.5 kilograms.
Sanchez admitted someone had paid for the truck and instructed him to register it in his name. He was en route to Houston where he was to receive $50,000 for transporting the marijuana. He admitted he knew the truck contained marijuana.
The investigation leading to the charges was conducted by the Homeland Security Investigations and Border Patrol. Assistant United States Attorney Elizabeth Rabe is prosecuting the case.
Jury Convicts Mexican Resident Alien of Bringing Cocaine and Methamphetamine into U.S.Read the Press Release
BROWNSVILLE, Texas - Valentin Muniz-Saavedra, 44, residing in Brownsville, has been convicted of conspiracies to possess and import and possession with intent to distribute and import cocaine and methamphetamine, announced United States Attorney Kenneth Magidson. The jury deliberated for more than a day and convicted Muniz-Saavedra tonight of possession with intent to distribute 18 kilograms (39.6 pounds) of cocaine, possession with intent to distribute 5.5 kilograms (12.1 pounds) of methamphetamine as well as conspiracy to import cocaine and methamphetamine into the United States.
The charges arose from an inspection and seizure at the Gateway International Bridge Port of Entry in Brownsville where Muniz-Saavedra entered the United States as the driver of a mini-van. During inspection of this vehicle, agents discovered 18 kilograms of cocaine and 5.5 kilograms of methamphetamine hidden within the side quarter panels, firewall and roof. A total of 32 bundles were removed by inspectors.Muniz-Saavedra claimed to have no knowledge of the drugs but admitted to having picked up the van on the Mexican side of the bridge and was planning to drop it off to another individual immediately upon entering the U.S. Muniz-Saavedra also admitted to agents and inspectors that he lied about when he obtained the van, saying he had “borrowed it earlier in the day.”
Evidence at the four-day trial showed that upon further investigation by Homeland Security Investigations (HSI), it was determined Muniz-Saavedra had met earlier in the day at several different locations in Brownsville with other individuals associated with the mini-van. A Drug Enforcement Administration (DEA) agent testified the cocaine and methamphetamine was worth more than $500,000.
U.S. District Judge Hilda Tagle, who presided over trial, has set sentencing for June 2, 2014, at which time he faces a mandatory minimum of 10 years and up to life in federal prison as well as a $10 million fine for each of the counts of which he was convicted. He has been remanded to the custody pending that hearing.
This case was investigated by HSI with the assistance of DEA. Assistant United States Attorney Oscar Ponce is prosecuting.Jury Convicts Austin Lawyer in Relation to “Butch” Ballow Case and Stock Sale SchemeRead the Press Release
HOUSTON – Patrick Lanier, 65, of Austin, has been convicted on 16 counts to include one count of harboring and concealing Harris “Butch” Ballow from arrest, announced United States Attorney Kenneth Magidson. Lanier was convicted of conspiracy to commit wire fraud arising from a stock sale scheme, 13 counts of wire fraud, one count of harboring and concealing Ballow from arrest and one count of assisting a federal offender. The jury returned its verdicts last night following a 13-day trial.
Lanier is an Austin attorney who represented Ballow during proceedings before the Securities and Exchange Commission (SEC) in 2004 and also during the criminal case that led to Ballow becoming a fugitive. While a fugitive, Ballow controlled a corporation used to bilk hundreds of investors, many of whom lived in Canada, out of millions of dollars. Lanier served as a lawyer for that corporation.
Evidence demonstrated that Lanier assisted Ballow in selling shares of stock in public companies acquired and controlled by Ballow while he was a fugitive from justice. Assisted by Lanier, Ballow and co-conspirators sold stock to unsuspecting investors by hiding Ballow’s true identity, disseminating false and misleading information to increase and maintain the value of stock, failing to fulfill promises to remove restrictions which prevented investors from selling the stock and selling land and ownership interests in a real estate development that never materialized.
Ballow was a fugitive from justice in the United States for more than five years. He was indicted in federal court in Houston in 2003 for fraud and money laundering which centered on misrepresentations made in connection with the purchase and sale of stock. Ballow pleaded guilty before U.S. District Judge David Hittner to money laundering in November 2003 and faced a maximum of 10 years imprisonment. At the time, Ballow, who had been in custody without bond for approximately a year, agreed to cooperate with an SEC investigation and was released on a $100,000 bond pending his sentencing. On Dec. 16, 2004, the day of sentencing, Ballow failed to appear and a warrant was soon issued for his arrest. Ballow was arrested by Mexican authorities on July 13, 2010, in Nuevo Vallarta, Mexico, and extradited by Mexico to the United States on April 8, 2011. He was later sentenced to 10 years for money laundering and ordered to pay $10 million in restitution.
According to evidence presented in Lanier’s trial, Ballow lived under the names John Gel, Tom Brown and Marty Twinley during his time as a fugitive and also acquired a British passport in the name of Melvyn John Gelsthorpe. Ballow used these names to take control of publicly-traded corporations, including E-SOL International Corp., Medra Corp., Deep Earth Resources Inc. and Aztec Technology Partners Inc. (now known as Ultimate Lifestyles Corporation) and sold the stock to investors without revealing his true identity, his use of multiple names, his past convictions for fraud and money laundering and his status as fugitive from justice in the United States. After Ballow fled, Lanier traveled to Mexico to meet him and provided legal work for Ballow under his various false names to consummate Ballow’s fraudulent transactions to bilk investors.
Several others have also pleaded guilty in relation to the scheme and are pending sentencing.
Lanier faces up to 20 years in federal prison on the conspiracy charge as well as the substantive wire fraud charges. For the harboring and false statement charges, he also faces up to five years in prison, while the assisting a federal offender conviction carries a possible 2 ½ years in prison. All counts of conviction also carry a possible $250,00 fine. Sentencing is set for August 2014.
Previously released on bond, Lanier was taken into custody upon the return of the verdicts yesterday. A detention hearing is set for 2:00 p.m. today before Judge Lee Rosenthal.
The case was jointly investigated by the United States Marshals Service and the FBI with substantial assistance of Internal Revenue Service - Criminal Investigation and the U.S. Postal Inspection Service. Valuable assistance was also provided by the Royal Canadian Mounted Police. Assistant U.S. Attorneys John R. Lewis and Belinda Beek prosecuted the case.
Car Dealer Pleads Guilty to FraudRead the Press Release
HOUSTON – George Baumanis, 59, of Houston, has pleaded guilty to conspiracy to transport stolen property in interstate commerce, announced United States Attorney Kenneth Magidson.
Baumanis operated a car dealership called Primus Northwest located at 10600 West Road in Houston. He would browse Internet sites seeking for cars being sold by owners and travel around the country to purchase them.
Owners were persuaded to sell by promising to pay the balance of the note or lease on the cars. In the presence of the owners, checks for payment of the loan or lease in full were mailed and the cars would then be transported to Primus Northwest in Houston where the dealership would attempt to sell them. However, the checks were executed by Primus Northwest but without sufficient funds in the account. The lien holders were never repaid.
In one instance, a victim from Michigan leased a 2010 Volvo S80 from U.S. Bank and later sold the vehicle to Primus Northwest based on the promise to pay off that lease. U.S. Bank received two fraudulent checks from Primus Northwest totaling $22,187.35. No payoff was ever received by U.S. Bank and Baumanis later fraudulently sold the vehicle in Texas.
Dennis Kane was allegedly a partner of Baumanis in this scheme. The case against him is pending and he is presumed innocent unless and until found guilty through due process of law.
U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, has set sentencing for May 23, 2014, at 10:00 a.m. At that time, he faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing. d to remain free on bail pending sentencing.
The case was investigated by the U.S. Postal Inspection Service and the Houston Police Department. Assistant United States Attorney Jay Hileman is prosecuting.
Smugglers Who Extorted and Threatened Victims Sentenced to PrisonRead the Press Release
McALLEN, Texas ‐ Ivan Cabrera and Michael Ayala, both of Edinburg, and Mexican National Maria Isabel Rivera-Castillo have been sentenced to federal prison as a result of their convictions for smuggling undocumented aliens, announced United States Attorney Kenneth Magidson. Cabrera, 23, Ayala, 27, and Rivera-Castillo, 52, all pleaded guilty on varying dates in November 2013.
Today, U.S. District Judge Randy Crane sentenced Cabrera to a sentence of 63 months imprisonment, while Rivera and Ayala received respective sentences of 52 and 33 months. The sentences were enhanced as the court took into consideration the fact that while in the defendants’ custody, the aliens were beaten and threatened with physical and sexual violence. The defendants held the undocumented aliens for days and, in some cases, weeks to extort monies from their families in exchange for their release.
Cabrera, Ayala and Rivera-Castillo have been in custody since their arrest on Sept. 27, 2013. Following their terms of imprisonment, Cabrera and Ayala will serve three years of supervised release, while Rivera is expected to face deportation proceedings following her release from prison.
The investigation was conducted by Homeland Security Investigations, Border Patrol and Edinburg Police Department. Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
Alien Sentenced for Possessing Firearms He Intended to Take to MexicoRead the Press Release
McALLEN, Texas – Manuel Francisco Gomez-Perales, a Mexican national who returned to the United States illegally to recover firearms previously acquired for another person knowing those firearms were destined for Mexico, has been sentenced to prison, United States Attorney Kenneth Magidson announced today.
Chief United States District Judge Ricardo H. Hinojosa sentenced Gomez-Perales, 31, of Monterrey, Nuevo Leon, Mexico, to 114 months of imprisonment. On Sept. 7, 2011, Gomez pleaded guilty to being an alien, illegally and unlawfully present in the United States, in possession of firearms.
Gomez had been removed from the United States on Aug. 9, 2010, but had returned illegally four days later. Homeland Security Investigations (HSI) agents were able to locate Gomez and began to follow his vehicle. Once he noticed the agents, Gomez attempted to flee. Ultimately, he crashed his vehicle into a utility pole, then fled on foot, abandoning his common law spouse and child, before being apprehended by law enforcement.
Inside the vehicle, law enforcement located four AKM type rifles with obliterated serial numbers.
Gomez admitted he had acquired the firearms with the intent to ship them to other persons and that the firearms were destined for Mexico. Gomez further admitted he was deported before he could transfer the firearms; therefore, he had returned to the United States to complete the transfer as originally planned.
Gomez has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by HSI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pharr Police Department. The case was prosecuted by Assistant United States Attorney (AUSA) Steven Schammel. AUSA Jason C. Honeycutt handled the sentencing today.
Distributing Child Pornography Lands Huntsville Man in Federal PrisonRead the Press Release
HOUSTON – Reed Christopher LeBlanc, 20, a former resident of Huntsville, will now be serving a federal prison sentence of nearly 11 years following his conviction of distribution of child pornography, announced United States Attorney Kenneth Magidson. LeBlanc pleaded guilty Tuesday, Oct. 22, 2013.
U.S. District Judge Nancy Atlas, who took into consideration that LeBlanc had molested a young girl when he was a juvenile, ordered a total sentence of 130 months in federal prison. The sentence will be immediately followed by 30 years of supervised release, during which time he will be under special conditions designed to protect children and prohibit the use of the Internet. He will also be ordered to register as a sex offender.
The investigation started as a result of several downloads of child pornography over the Internet by a federal agent with the New York office of the FBI which were traced to a computer used by LeBlanc. On Dec. 3, 2012, federal agents served a search warrant at LeBlanc’s Huntsville address and seized his Apple computer. A forensic exam was conducted, revealing approximately 82 images and 33 videos of child pornography.
LeBlanc will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against were the result of an investigation conducted by the Texas City office of the FBI and officers with the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Victoria Housing Authority Commissioner Charged with HUD and SSA FraudRead the Press Release
VICTORIA, Texas – Raquel Garcia, 37, has been charged in an three-count indictment alleging theft from the U.S. Department of Housing and Urban Development (HUD) and fraud against the Social Security Administration (SSA), announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Feb. 20, 2014, was unsealed this morning upon her arrest by federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Janice B. Ellington at 2:00 p.m. today.
The indictment alleges that beginning in 1998 and continuing until July 2013, Garcia concealed her husband’s cohabitation and income. As a result, she allegedly received nearly $175,000 in HUD rent reductions to which she was not entitled. Further, through her alleged fraud and concealment, Garcia also received approximately $113,000 in SSA Supplemental Security Income (SSI) for herself and as representative payee for her minor son, according to the charges. The total loss to the government allegedly totals more than $287,000.
Garcia served as a mayorally-appointed commissioner of the Victoria County Housing Authority for two consecutive two-year terms from 2006-2010.
If convicted, she faces up to 10 years in federal prison for each of the one count of theft of HUD government funds and up to five years on each of the two SSA fraud charges. All charges also carry a possible $250,000 fine, upon conviction.
The investigation leading to the charges was conducted by the SSA – Office of Inspector General and HUD – Office of Inspector General. Assistant United States Attorneys Jeffrey D. Preston and Hugo R. Martinez are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Former Government Analyst Charged with BriberyRead the Press Release
HOUSTON – Augustine Ihenacho Nnadi, aka Austin, 60, of Houston, has been arrested for accepting a bribe in exchange for assistance in an ongoing health care fraud case, announced United States Attorney Kenneth Magidson.
The FBI arrested Nnadi this morning shortly after officers with the Texas Attorney General’s office confiscated his credentials and terminated his employment. Nnadi is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The criminal complaint, filed today, alleges Nnadi accepted more than $5000 on Feb. 16, 2014, from a criminal defendant in exchange for assistance on a pending health care fraud case.
He is charged with bribery concerning programs receiving federal funds.
If convicted, he faces up to 10 years imprisonment and a possible $250,000 fine.
The operation was a combined, cooperative effort conducted by the FBI, the Texas Rangers and the Medicaid Fraud Control Unit of the Texas Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney James McAlister.
Reputed Aryan Brotherhood of Texas Gang Leader and A Fellow Gang Member Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – An alleged general of the Aryan Brotherhood of Texas gang (ABT) and a fellow gang member pleaded guilty today to racketeering charges related to their membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
James Francis Sampsell, aka “Skitz,” 44, of Odessa, and Fredrick Michal Villarreal, aka, “Big Mike,” 35, of Houston, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Sampsell, Villarreal 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. Sampsell, Villarreal 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 activities.
By pleading guilty to racketeering charges, Sampsell and Villarreal 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.
At sentencing, scheduled for Oct. 7, 2014, Sampsell and Villarreal each face a maximum penalty of life in prison.
Sampsell and Villarreal are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 21 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 Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Another Drug Conspiracy and Money Laundering Ring Leader Heads to Prison for 30 YearsRead the Press Release
CORPUS CHRISTI, Texas – Jose Fidel Guajardo aka “Garfield,” 42, a leader of a drug trafficking and money laundering conspiracy, has been handed a significant federal sentence, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Janis Graham Jack determined Guajardo to be a leader in the conspiracy and sentenced him to a total of 360 months in federal prison. In handing down the sentence, Judge Jack considered his extensive criminal history and the need to protect the public from future criminal conduct. She further ordered he serve a five-year-term of supervised release following completion of his prison term and also ordered forfeiture of his interest in a property on Aaron Street in Corpus Christi.
Another leader in the conspiracy, Manuel Pena aka “Super,” also received a 30-year sentence earlier this year. Several others – Ignacio Pena aka “Nacho,” Raul Leal Martinez aka “Indio” or “Wahoo,” and David Pete Dominguez aka “Buda,” all also of Corpus Christi, previously pleaded guilty in relation to the case as well and were sentenced to 168, 85 and 120 months, respectively. Julieann Gutierrez was sentenced yesterday to 220 months, while the last defendant, Rocky Bazaldua aka “Rock,” will be sentenced March 20, 2014.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed Guajardo, a member of the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in March 2011 Guajardo made deals to provide 20 kilograms of cocaine to a drug distributor located in San Antonio. Guajardo also made deals with Manuel Pena to purchase methamphetamine for distribution in the Corpus Christi area.
Guajardo and Martinez also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. Evidence showed that Guajardo invested significant amounts of cash into the material, labor and services supplied in the building of homes in the Corpus Christi area. Agents determined this cash was the proceeds of illegal drug sales. As part of his plea agreement, Guajardo also agreed to forfeit his interests in various properties around Corpus Christi.
Guajardo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Local Tax Preparer ArrestedRead the Press Release
HOUSTON - Diane Caldwell Larry has been charged in a 21-count indictment alleging 19 counts of preparing false client tax returns and two counts of interfering with the enforcement of tax laws, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Feb. 12, 2014, and unsealed yesterday upon her arrest. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
According to the indictment, Larry operated a tax return preparation business in Houston under the name Paradise South Tax Services. She allegedly prepared dozens of materially false client tax returns during calendar years 2008 through 2011. The indictment also alleges she included in these tax return bogus “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds totaling approximately $200,000. The indictment further alleges that when some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false
and excessive itemized deductions.If convicted, Larry faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Physician Arrested in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Dr. Enyibuaku Rita Uzoaga, 41, and Charles Harris, 53, have been indicted on charges of conspiracy to commit health care fraud and health care fraud, announced United States Attorney Kenneth Magidson.
The seven-count indictment was returned Feb. 12, 2014, and unsealed this morning as Uzoaga surrendered to federal authorities. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
Harris, aka Celestine Nwajfor and Okechi Nwajiofor, is a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
The indictment alleges that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous unnecessary vestibular diagnostic tests. Some patients were allegedly tested more than 1,000 times. According to the indictment, the testing was either not performed, not medically necessary and/or not performed by licensed individuals.
Harris had allegedly operated Cevine Health Care and Rehabilitation Center in the Houston area and performed the tests, according to the charges.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. Upon diagnosis, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this allegedly unlawful scheme, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims, and paid approximately $389,285 on those claims. From 2006 to 2010, vestibular testing comprised approximately 25 percent of Uzoaga’s income from Medicare and Medicaid.
If convicted, both face up to 10 years in federal prison and a $250,000 maximum fine on the conspiracy charge as well as the substantive counts of health care fraud.The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations, FBI and the United States Attorney’s Office. Special Assistant United States Attorney (SAUSA) Suzanne Bradley and AUSA Kebharu Smith 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 Man Gets 14 Years for Possessing MethamphetamineRead the Press Release
HOUSTON – Houston resident Francisco Rodriguez, 22, has been sentenced to a total of 168 months for possessing with the intent to distribute multiple kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. Rodriguez pleaded guilty Feb. 13, 2013, to possessing a gross weight of more than five kilograms of 90% pure methamphetamine.
According to court records, Rodriguez negotiated a deal for the purchase of methamphetamine with undercover Homeland Security Investigations (HSI) agents. On Nov. 9, 2012, Rodriguez met with an undercover officer in a Houston area business parking lot to complete the transaction. Rodriguez pulled a backpack out of the toolbox of the truck that he had driven to the meeting, opened it and showed the agent several plastic containers. According to court records, he opened one of the containers and revealed a crystal-like substance, at which time he was arrested.
The substance tested positive for the presence of methamphetamine with 90% purity. The methamphetamine had a gross weight of 5.54 kilograms.
U.S. District Judge David Hittner, who handed down the sentence today, further ordered he serve five years of supervised release following completion of the prison term. 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 HSI, Customs and Border Protection Air Unit, Houston Police Department and the Harris County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Richard J. Magness as part of the Organized Crime Drug Enforcement Task Force.
Houston Lawyer Charged with Bankruptcy FraudRead the Press Release
HOUSTON – Calvin C. Braun, a local Houston attorney who handles bankruptcy cases, has been arrested on charges of bankruptcy fraud and filing false declarations in bankruptcy court, announced United States Attorney Kenneth Magidson.
Braun was charged in four-count indictment returned Feb. 12, 2014. He was taken into custody yesterday and made an initial appearance before U.S. Magistrate Judge George C. Hanks. He was permitted release upon posting bond and was further ordered to not to take on any new bankruptcy cases.
The indictment alleges Braun, 47, filed a bankruptcy case under Chapter 7 on behalf of a woman on May 31, 2010, who agreed to pay Braun $2,500 to represent her. She had allegedly been referred to Braun by her ex-husband who had previously utilized the Orlando & Braun law firm to represent him on matters related to various companies he owned. On Dec. 23, 2010, the man had retained Braun to file a Chapter 11 bankruptcy case in his behalf, according to allegations. The indictment further alleges the woman had been listed as a creditor in the documents filed in her ex-husband’s case.
Braun allegedly falsely filed a Disclosure of Compensation of Attorney on behalf of the woman in bankruptcy court in which he certified he had received his full fee of $2,500 prior to filing the disclosure statement on July 2, 2010. However, the indictment alleges he knew she had not paid the full amount owed when he filed the statement and he continued to collect money from her in the case.
Later, Braun also allegedly filed an Application to Employ with an attached affidavit seeking the bankruptcy court’s approval to represent the man in his Chapter 11 case. In that affidavit,Braun allegedly stated he had no conflict of interest in representing him nor represented any of his creditors. The woman filed an objection to that application. Braun later admitted in an amended affidavit that he did represent the woman in her Chapter 7 case, but again reiterated he did not represent any creditors of the male, according to the allegations. However, in truth and in fact according to the indictment, he was counsel of record for her and that she was listed as a creditor in the man’s Chapter 11 bankruptcy case.
Furthermore, on Nov. 30, 2010,Braun allegedly charged the woman an additional fee of $300 and promised to file a motion to re-open her bankruptcy case which had been closed due to Braun’s failure to file a critical document. Later, on Dec. 28, 2010, the woman paid an additional $1,258.91 for the balance owed Braun to re-open the case. He took the money in both instances, but never filed the motion to re-open the case, even though he was still her counsel of record, according to the allegations.
If convicted of the charges, Braun faces up to five years in federal prison and a possible $250,000 fine.
FBI investigated with the assistance of the United States Trustee’s Office. Assistant United States Attorney Quincy L. Ollison is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Teacher Sentenced on Child Pornography ConvictionRead the Press Release
LAREDO, Texas – Jorge Valadez, 53, a former high school teacher in Laredo, has been handed a 52-month prison term for possessing child pornography on his computer, announced United States Attorney Kenneth Magidson. He pleaded guilty Nov. 13, 2013, to possessing four videos of child pornography between June 1, 2013, and Sept. 13, 2013.
Senior U.S. District Judge George Kazen handed down the sentence which will be followed by 10 years of supervised release. He will also be required to register as a sex offender.
Valadez was sharing his computer’s files on a peer-to-peer network. An investigator was able to download two complete and two partial videos tracked to Valadez for examination.
Federal authorities executed search and seizure warrants for Valdez his home, automobile, computers and electronic storage devices on Sept. 13, 2013. At that time, Valadez agreed to speak with the agents and admitted he had downloaded child pornography videos and images over the prior five years out of curiosity, adding that he was unsure of how many videos he had actually downloaded.
Agents located four videos containing child pornography on his computer. Valadez further admitted he had his computer “cleaned” shortly before the encounter with federal authorities.
Valadez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Webb County Sheriff’s Department and Homeland Security Investigations. Assistant United States Attorneys Jose Homero Ramirez and Sonah Lee prosecuted the case.
Ammunition Smuggler SentencedRead the Press Release
LAREDO, Texas - Luis Garcia-Ugarte, 38, of Laredo, has been sentenced to federal prison for facilitating the attempted illegal export of thousands of rounds of assault rifle ammunition, announced United States Attorney Kenneth Magidson. He pleaded guilty Aug. 28, 2013.
Today, U.S. District Judge Marina Garcia Marmolejo handed Garcia-Ugarte a sentence of 41 months in federal prison to be followed by two years of supervised release.
According to testimony, authorities learned an individual was to purchase and provide to Garcia-Ugarte 1,500 rounds of 7.62x39 millimeter assault rifle ammunition on Oct. 10, 2012. Federal and local authorities conducted surveillance and observed Garcia-Ugarte arrive as scheduled at a Wal-Mart parking lot in Laredo driving a small sedan.
After obtaining the ammunition, Garcia-Ugarte left the parking lot and was pulled over by a Laredo Police Department (LPD) patrol officer for a traffic violation. The officer reported Garcia-Ugarte spoke only Spanish and did not possess a drivers’ license or any means of identification.
A search of the vehicle’s trunk resulted in the discovery of an additional 8,160 rounds of assault rifle ammunition (7.62x39 millimeter and .223 caliber). He claimed that none of the 9,660 rounds of ammunition belonged to him. He later recanted this claim, admitting to transporting the ammunition in his car and that he was to later transport other ammunition in his home to Mexican truck drivers who would attempt to illegally smuggle it into Mexico. Agents discovered an additional 2,318 rounds of 7.62x39 millimeter assault rifle ammunition at his residence, resulting in a total of 11,978 rounds of ammunition.
All ammunition was intercepted before reaching smugglers.
He 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 Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosvies with the assistance of Border Patrol and the Laredo Police Department. Assistant United States Attorneys Jose Homero Ramirez and James B. Hepburn prosecuted the case.
Two Local Men Sentenced for Producing Child Pornography of Young RelativesRead the Press Release
CORPUS CHRISTI, Texas – Carlos Cortinas, 40, and Mark Anthony Stokes, 36, of Three Rivers, have received significant sentences following their convictions of sexual exploitation of a child, commonly known as production of child pornography, announced United States Attorney Kenneth Magidson. Both men pleaded guilty Monday, Oct. 21, 2013.
Senior U.S. District Judge John D. Rainey, who accepted the guilty pleas, sentenced Cortinas and Stokes to respective sentences of 212 and 140 months in federal prison. At the hearing, the court considered Stokes cooperation with the government and the fact that Cortinas had victimized two children, but recognized both men had committed the same crime in essentially the same manner. In handing down the sentence, Judge Rainey considered the need to protect the public and deter future criminal conduct. They will both serve 10 years of supervised release following completion of their prison terms and will also be ordered to register as sex offenders.
The investigation began on May 13, 2013, after police responded to a domestic violence call in Three Rivers. Stokes, who had been stabbed and cut by his wife, told officers that his wife had injured him after she discovered nude photos of minor female relative on a flash drive. Stokes admitted to a sexual interest in children for the past 20 years.
Several years prior to this incident, Stokes and Cortinas had a conversation in which both discussed their mutual sexual interest in children. Stokes told Cortinas he had nude images of the young female, which Cortinas asked to see. Stokes then sent some of the images of the child via text message from his cell phone. Within an hour, Cortinas then sent nude images of one of his minor female relatives as well. From that day forward, Stokes and Cortinas would send each other voyeur type images of these minor children taken without the their knowledge as well as other child pornography images downloaded from the Internet. Cortinas also sent nude images of another child which he had taken. State search warrants were executed on both residences which resulted in the discovery of evidence related to the child pornography production described by Stokes.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.This case, prosecuted by Assistant United States Attorney Lance Duke and investigated by the FBI, 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."
Online Solicitation of A Child Sends Ohio Man to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has been ordered to prison for using a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Peterson pleaded guilty to online solicitation Monday, Sept. 16, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration the need to protect the public and deter future criminal conduct and handed Peterson a total sentence of 120 months. Additional information was also presented today, including the fact that Peterson had been warned by friends in Ohio not to come to Texas and meet this child, yet he came anyway. Peterson will serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to minimize his contact with children and access to the Internet. He will also be ordered to register as a sex offender.
"This case illustrates the lengths child predators will go to take their inappropriate relationship from text to talk to what they hope will be physical contact,” said Moskowitz. "Sadly, today’s technology in the hands of a predator with access to children has put our children at greater risk than ever before. HSI will continue to work tirelessly to protect our kids and brings their abusers to justice.”
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson, of Toledo, Ohio, and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Peterson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which 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."
Corpus Christi Doctor Convicted in Connection with Fraudulent Health Care Billing SchemeRead the Press Release
CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 49, of Robstown, has entered a plea of guilty to 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, 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 was set for trial this morning, but opted to enter a guilty plea 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.
Senior U.S. District Judge Hayden Head, who accepted the guilty plea, has set sentencing for May 15, 2014, at which time Ramirez faces up to 20 years in federal prison and a $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
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.
Two Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two members of the Aryan Brotherhood of Texas gang (ABT) have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Ronald Lee Prince, aka “Big Show,” 44, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Stephen Tobin Mullen, aka “Scuba Steve, 44, of Dallas, previously pleaded guilty to the same charge.
According to court documents, Prince, Mullen 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. Prince, Mullen 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, Prince and Mullen 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, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 9, 2014, each defendant faces a maximum penalty of life in prison.
Prince and Mullen are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 19 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 Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Three Charged in Tax Fraud SchemeRead the Press Release
HOUSTON – Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, Carey Jermaine Johnson aka Jermaine Johnson, and Tarmera Renee Wyckoff aka Toni Wyckoff, are charged in a 23-count indictment alleging conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS), wire fraud and making false claims to obtain tax refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (CI), and Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS).
“Today's announcement exemplifies IRS special agents' intense focus on the rigorous pursuit of refund fraud,” said Cruz. “At the IRS, protecting taxpayer money is a matter we take very seriously; IRS-CI will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The sealed indictment, returned Jan. 30, 2014, was unsealed yesterday. At that time, Wyckoff appeared before U.S. Magistrate Judge George C. Hanks Jr. and was released upon posting bond. Carey Jermaine Johnson is set to appear today at 2:00 p.m.
A warrant remains outstanding for the arrest of Cheryl Reed Johnson.
The indictment alleges the defendants devised a scheme to acquire personal identifying information of various individuals and used that information in the filing of tax returns. According to the indictment, the returns were filed online through a tax preparation service and the refunds were directed to the bank accounts of the defendants and others. The returns submitted to the IRS by the defendants in 2008 falsely claimed a first time home buyer credit, according to the charges. These false claims allegedly totaled approximately $1.5 million.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Wemyss. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
The charges of conspiracy to commit mail or wire fraud as well as wire fraud each carry a possible 20-year federal prison term, upon conviction. If convicted of conspiracy to make false claims to the IRS, the three also face another 10 years, while making a false claim to obtain tax refunds is punishable by up to five years in prison. All the charges also carry a possible $250,00 fine upon conviction.
IRS-CI and USPIS investigated. Assistant United States Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Office Manager Convicted of Defrauding Former Employer of More Than $400,000Read the Press Release
HOUSTON – Carol Mack, 43, of Humble, has pleaded guilty to one count of wire fraud and defrauding her former employer of hundreds of thousands of dollars, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Mack during her guilty plea today, from approximately February 2005 through August 2012, Mack embezzled at least $400,000 from a Houston area plastics company. She wired corporate funds into her bank account, using a credit card terminal to make the wire transfers look like customer refunds.
As part of her guilty plea, Mack admitted she worked at the company as an office manager and executive assistant to the company’s CEO. She had access to sensitive financial information and the ability to process credit card transactions using a point of sale terminal. Mack admitted that beginning in at least February 2005, she stole money from her employer by processing sham customer refunds on more than 500 occasions. She entered credit card numbers linked to her own bank accounts, then prompted the terminal to send refunds to those accounts. Mack admitted she spent the embezzled funds on herself.
Mack also admitted that in order to conceal her scheme, she made false entries in the company’s general accounting ledger. These entries offset the fraudulent customer refunds and made it seem as if the transactions had no cumulative impact on company accounts.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for May 15, 2014. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney John Pearson.
Houston Man Pleads Guilty to Producing Child PornographyRead the Press Release
HOUSTON – Daniel M. Layne, 33, of Houston, has been convicted of production of child pornography, announced United States Attorney Kenneth Magidson.
The investigation began in Maine when the mother of a 14-year-old girl discovered a motel key card in her daughter’s pants pocket and sexually graphic text messages on her cell phone. She contacted local authorities who then determined that Layne had traveled to Maine after meeting the girl over the Internet. The investigation revealed Layne had taken sexually explicit photos of the young girl.
As a result of the information gathered in Maine, authorities in the Houston area conducted a search at Layne’s residence on Sept. 24, 2013, at which time they seized computers, a tablet and cell phones from the house. A forensic analysis revealed images of the 14-year-old on the tablet and a cell phone.
U.S. District Judge David Hittner, who accepted the guilty plea today, has set sentencing for May 13, 2014, at which time Layne faces at least 15 and up to 30 years imprisonment and a $250,000 maximum fine. Upon completion of any prison term imposed, Layne also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Layne was arrested on the federal charges in October 2013 and has been in custody since that time where he will remain pending his sentencing.
Homeland Security Investigations and the Harris County Sheriff’s Office investigated the case in conjunction with the Houston Metro Internet Crimes Against Children Task Force and the Westbrook, Maine, Police Department.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Deputy Constable Charged with Tax EvasionRead the Press Release
HOUSTON – Vernon Matthews has been charged with using dependent information of people he contacted during his time as a deputy constable to file false tax returns, announced United States Attorney Kenneth Magidson. Matthews is a 21-year veteran of law enforcement and was a former Precinct 6 deputy constable.
Matthews was charged in a five-count indictment returned Tuesday, Feb. 11, 2014. He surrendered to authorities this morning and is set to make an initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
The indictment alleges Matthews obtained names and identifying information of the children of parents he contacted during his service as a deputy constable. Matthews then allegedly claimed the children as dependent nephews and nieces on his 2007, 2008, 2010 and 2011 tax returns. He also claimed “child care” and educational expenses for his non-existent relatives and made false statements to the FBI when questioned about the claims in a March 2013 interview, according to allegations.
If convicted, Matthews faces up to five years in federal prison on the false statement charge and each of the four counts of tax evasion. Making a false statement also carries a possible $250,000 fine, while the tax evasion charges could result in a $100,000 fine on each conviction.
Internal Revenue Service-Criminal Investigation, FBI and the Texas Rangers investigated. Assistant United States Attorney James McAlister is prosecuting.
Another Houston Bank Robber Heads to Federal PrisonRead the Press Release
HOUSTON – Jose Vasquez Selio Jr., 23, of Houston, has been ordered to prison following his involvement in a bank robbery conspiracy, announced United States Attorney Kenneth Magidson. Selio pleaded guilty to the conspiracy as well as one count of bank robbery Sept. 24, 2013.
Today, U.S. District Judge Gray H. Miller handed Selio a sentence of 108 months of federal imprisonment - 60 months for the conspiracy and 108 months for the bank robbery to be served concurrently. Selio will also have to serve a term of three years of supervised release following completion of the sentence.
Co-defendant Kederly Nataly Portillo, 19, also of Houston, pleaded guilty to the conspiracy charge and will be sentenced Feb. 28, 2014.
At the time of their earlier pleas, both admitted they knowingly conspired to rob the Wells Fargo Bank at 5175 West 34th street in Houston. Portillo was an employee of the bank and was on duty at the time of the robbery. On the morning of May 14, 2013, Selio opened the front door of the Wells Fargo Bank with a key Portillo had given him the prior day. Upon entry, he demanded no one push any buttons and grabbed a teller by the hair, threw her to the floor and used zip ties to restrain her before forcing her to open the vault. Portillo was also restrained. During the robbery, Selio make several threats, including “I’m not going to jail,” “If ya’ll move I swear to God I’ll kill ya’ll,” and “don’t make me do anything I will regret!” The teller stated that Selio was relaxed and even laughed during the robbery and seemed to know the layout of the bank. It was later determined Selio had also been briefly employed by the bank only a few months prior to the robbery.
At the hearing today, additional testimony was presented including that of the Wells Fargo branch manager who stated Selio had been fired because he was suspected of stealing.
Portillo admitted her involvement and that she was given part of the proceeds for her assistance in the robbery.
Selio has been and will remain in custody. Portillo has been permitted to remain on bond pending her sentencing.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Joe Porto is prosecuting the case.
Former CFO Arrested for Failure to Pay Employment TaxRead the Press Release
HOUSTON - Lanny C. McCandles has been arrested for failing to pay employment tax and other tax offenses, announced United States Attorney Kenneth Magidson.
A federal grand jury returned the 16-count indictment Tuesday, Feb. 11, 2014. He was arrested today and is expected to make his initial appearance before U.S. Magistrate George C. Hanks tomorrow at 10:00 a.m.
According to the indictment, McCandles was the Chief Financial Officer for Complete Care Medical Inc. In that role, he was responsible for collecting, truthfully accounting for, and paying over the company’s employment taxes, including funds withheld in trust from employee paychecks to pay income tax and Medicare and Social Security taxes. However, instead of paying these taxes, McCandles allegedly embezzled the withheld funds between 2008 and 2010 and used them to pay personal expenses.
The indictment further alleges McCandles made false personal tax returns. He allegedly attached fictitious Forms W-2 claiming withholdings when, in fact, he did not have any withholdings from his wages. He also attached fictitious W-2s to tax returns he prepared on behalf of his girlfriend, according to allegations.
The indictment alleges actual and attempted tax loss to the U.S. Treasury of more than $134,000.
If convicted, McCandles faces a maximum of five years on each of the nine counts of failure to pay employment taxes, as well as three years on each of three counts of making a false tax return and four counts of preparing false tax returns.
IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration investigated the case. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Ammunition Smugglers SentencedRead the Press Release
McALLEN, Texas – Mexican nationals Gregorio Rodriguez-Aranda, 25, and Maria Luisa Sanchez-Lopez, 24, have been sentenced following their convictions relating to the exportation of 707 rounds of 7.62mm ammunition and 98 AK47 magazines, announced United States Attorney Kenneth Magidson. Both pleaded guilty Nov. 25, 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Rodriguez and Sanchez to 57 and 46 months imprisonment, respectively. The court enhanced the sentences because the couple used their five-year-old child to further the offense by traveling as a family unit and thereby concealing the true unlawful purpose of the trip. Additionally, Judge Alvarez noted that Rodriguez and Sanchez, in committing this offense, have contributed to the violence in Mexico that cause so many flee to the United States.
Rodriguez and Sanchez have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorneys Kristen J. Rees is prosecuting.
Two Women Ordered to Prison in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have been handed prison sentences for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of IRS-CI’s Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States. They entered pleas of guilty May 10, 2013.
“Investigating identity theft and refund fraud is a priority for IRS-CI,” said Cruz. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, handed Walton and Rogers each a sentence of 24 months in federal prison. Both were further ordered to pay $60,000 in restitution to the IRS and to serve a term of three years of supervised release following completion of their prison terms. Judge Rosenthal previously sentenced co-defendant Antoinne Quinay Jackson to six months in federal custody. He has completed that term of imprisonment and is presently serving a three-year-term of supervised release.
Walton and Rogers acknowledged that between Feb. 15, 2013, and Feb. 27, 2013, they met with tax return preparer, Marlin Beckett, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests on March 8, 2013, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
Both women will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The tax return preparer, Marlin Beckett, was also sentenced today by Judge Nancy F. Atlas in a separate case. Judge Atlas sentenced Beckett to 36 months in prison and ordered him to make full restitution for preparing false tax returns that generated $196,923 in excessive client refunds. Beckett has been in custody since violating his bond conditions by continuing to prepare client tax returns after his guilty plea on April 10, 2013.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Two Women Ordered to Prison in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have been handed prison sentences for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of IRS-CI’s Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States. They entered pleas of guilty May 10, 2013.
“Investigating identity theft and refund fraud is a priority for IRS-CI,” said Cruz. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, handed Walton and Rogers each a sentence of 24 months in federal prison. Both were further ordered to pay $60,000 in restitution to the IRS and to serve a term of three years of supervised release following completion of their prison terms. Judge Rosenthal previously sentenced co-defendant Antoinne Quinay Jackson to six months in federal custody. He has completed that term of imprisonment and is presently serving a three-year-term of supervised release.
Walton and Rogers acknowledged that between Feb. 15, 2013, and Feb. 27, 2013, they met with tax return preparer, Marlin Beckett, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests on March 8, 2013, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
Both women will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The tax return preparer, Marlin Beckett, was also sentenced today by Judge Nancy F. Atlas in a separate case. Judge Atlas sentenced Beckett to 36 months in prison and ordered him to make full restitution for preparing false tax returns that generated $196,923 in excessive client refunds. Beckett has been in custody since violating his bond conditions by continuing to prepare client tax returns after his guilty plea on April 10, 2013.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Husband and Wife Ordered to Prison for Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Tax return preparers Marlin Jermaine Beckett and Gia Cooper Beckett have sent to prison for making up deductions that resulted in approximately $360,000 in fraudulent client refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Both pleaded guilty in April 2013.
Today, U.S. District Judge Nancy F. Atlas, who accepted the guilty pleas, handed Marlin Beckett a 36-month sentence to be followed by a one-year-term of supervised release. He was also ordered to pay $196,923 in restitution to the IRS. Gia Beckett will be on probation for three years and must pay another $163,441 in restitution. The court further ordered neither person prepare any more tax returns except their own.
“One of the IRS’s main objectives is to ensure that all tax practitioners and preparers adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance; our special agents play a valuable role by identifying, investigating and recommending prosecution of abusive return preparers. As we approach tax filing season, we remind taxpayers to be very diligent when deciding who they select to prepare their returns.”
The Becketts are husband and wife tax return preparers and were charged in separate, but related cases. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Originally released on bond, Marlin Beckett was recently taken into custody when further investigation of his activities revealed he continued to prepare tax returns in violation of his bond conditions. At least one of those tax returns had the same kind of false deductions that had led to his conviction.
Further investigation of Marlin Beckett’s activities also led to the successful prosecution of Yevette Lauren Walton and Lakisha Lashell Rodgers for their role in a local stolen identity refund scheme. Rodgers and Walton pleaded guilty, admitting they used dozens of identities over a two-year period that caused about $60,000 in actual losses during the 2012 tax filing season. The scheme could have caused another $540,000 had it not been detected early in the 2013 tax filing season.
Stolen identity refund frauds typically involve the use of stolen identities to obtain fraudulent tax refunds wired to debit cards in the victims’ names so the refunds can be harvested anonymously by the perpetrators. Walton and Rodgers were also sentenced today to 24-month-terms of imprisonment before Judge Lee Rosenthal.
The investigation leading to these charges was conducted by IRS-CI with assistance from the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting both cases.
Husband and Wife Ordered to Prison for Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Tax return preparers Marlin Jermaine Beckett and Gia Cooper Beckett have sent to prison for making up deductions that resulted in approximately $360,000 in fraudulent client refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Both pleaded guilty in April 2013.
Today, U.S. District Judge Nancy F. Atlas, who accepted the guilty pleas, handed Marlin Beckett a 36-month sentence to be followed by a one-year-term of supervised release. He was also ordered to pay $196,923 in restitution to the IRS. Gia Beckett will be on probation for three years and must pay another $163,441 in restitution. The court further ordered neither person prepare any more tax returns except their own.
“One of the IRS’s main objectives is to ensure that all tax practitioners and preparers adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance; our special agents play a valuable role by identifying, investigating and recommending prosecution of abusive return preparers. As we approach tax filing season, we remind taxpayers to be very diligent when deciding who they select to prepare their returns.”
The Becketts are husband and wife tax return preparers and were charged in separate, but related cases. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Originally released on bond, Marlin Beckett was recently taken into custody when further investigation of his activities revealed he continued to prepare tax returns in violation of his bond conditions. At least one of those tax returns had the same kind of false deductions that had led to his conviction.
Further investigation of Marlin Beckett’s activities also led to the successful prosecution of Yevette Lauren Walton and Lakisha Lashell Rodgers for their role in a local stolen identity refund scheme. Rodgers and Walton pleaded guilty, admitting they used dozens of identities over a two-year period that caused about $60,000 in actual losses during the 2012 tax filing season. The scheme could have caused another $540,000 had it not been detected early in the 2013 tax filing season.
Stolen identity refund frauds typically involve the use of stolen identities to obtain fraudulent tax refunds wired to debit cards in the victims’ names so the refunds can be harvested anonymously by the perpetrators. Walton and Rodgers were also sentenced today to 24-month-terms of imprisonment before Judge Lee Rosenthal.
The investigation leading to these charges was conducted by IRS-CI with assistance from the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting both cases.
Hallettsville Man Gets 28 Years for Receiving Child PornographyRead the Press Release
VICTORIA, Texas – Hallettsville resident James Leland Copeland, 42, has been sentenced to a significant term of federal imprisonment for receiving child pornography, announced United States Attorney Kenneth Magidson. Copeland pleaded guilty on May 10, 2013.
U.S. District Judge Gregg Costa, who accepted the guilty plea, sentenced Copeland to the 28-year-term taking into consideration the need to protect the public and deter future criminal behavior in the defendant and others. He was further ordered to serve the rest of his life on supervised release following completion of the prison term. In handing down the sentence, Judge Costa noted Copeland’s recidivism and substantially greater role in the offense than the average child pornography recipient. Judge Costa determined that Copeland, while not directly producing the child pornography he received himself, he nonetheless played a significant role in causing it to be produced. Copeland will also be required to register as a sex offender.
Copeland was a wanted person from Tennessee for failure to register as a sex offender. He had been previously convicted of possession of child pornography in the Eastern District of Tennessee in 2004 and sentenced to 51 months in the Bureau of Prisons. The U.S. Marshals Service (USMS) determined Copeland was living in Hallettsville and had failed to register within the state of Texas.
As a result of a federal arrest and search warrant, authorities searched Copeland’s residence on Dec. 18, 2012, at which time several electronic storage devices and other written media were seized from the home. The Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a forensic examination of the electronic storage devices which led to the discovery of several images of child pornography. An examination of the written media revealed it to be the transcription of emails and other Internet-based communications between Copeland and various persons on the Internet.
Some of that correspondence was with a person calling herself “Ms. Majesty,” later identified as Desiree Lee Padilla, of Brownsville. The communications between the two were primarily sexual in nature and discussed their mutual sexual attraction to children. Padilla sent several pictures of child pornography wherein she sexually assaulted an infant female relative.
Padilla was prosecuted by state authorities for aggravated sexual assault of a child and subsequently sentenced to 25 years imprisonment on Sept. 11, 2013.
Copeland will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, CCPS-ICAC investigated with the assistance of USMS.
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."
Hallettsville Man Gets 28 Years for Receiving Child PornographyRead the Press Release
VICTORIA, Texas – Hallettsville resident James Leland Copeland, 42, has been sentenced to a significant term of federal imprisonment for receiving child pornography, announced United States Attorney Kenneth Magidson. Copeland pleaded guilty on May 10, 2013.
U.S. District Judge Gregg Costa, who accepted the guilty plea, sentenced Copeland to the 28-year-term taking into consideration the need to protect the public and deter future criminal behavior in the defendant and others. He was further ordered to serve the rest of his life on supervised release following completion of the prison term. In handing down the sentence, Judge Costa noted Copeland’s recidivism and substantially greater role in the offense than the average child pornography recipient. Judge Costa determined that Copeland, while not directly producing the child pornography he received himself, he nonetheless played a significant role in causing it to be produced. Copeland will also be required to register as a sex offender.
Copeland was a wanted person from Tennessee for failure to register as a sex offender. He had been previously convicted of possession of child pornography in the Eastern District of Tennessee in 2004 and sentenced to 51 months in the Bureau of Prisons. The U.S. Marshals Service (USMS) determined Copeland was living in Hallettsville and had failed to register within the state of Texas.
As a result of a federal arrest and search warrant, authorities searched Copeland’s residence on Dec. 18, 2012, at which time several electronic storage devices and other written media were seized from the home. The Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a forensic examination of the electronic storage devices which led to the discovery of several images of child pornography. An examination of the written media revealed it to be the transcription of emails and other Internet-based communications between Copeland and various persons on the Internet.
Some of that correspondence was with a person calling herself “Ms. Majesty,” later identified as Desiree Lee Padilla, of Brownsville. The communications between the two were primarily sexual in nature and discussed their mutual sexual attraction to children. Padilla sent several pictures of child pornography wherein she sexually assaulted an infant female relative.
Padilla was prosecuted by state authorities for aggravated sexual assault of a child and subsequently sentenced to 25 years imprisonment on Sept. 11, 2013.
Copeland will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, CCPS-ICAC investigated with the assistance of USMS.
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."
Repeat Offender Sentenced for New Child Pornography ViolationRead the Press Release
CORPUS CHRISTI, Texas – Arthur Gregg Hutchins, 67, under supervised release for a previous conviction of possessing child pornography, has been ordered to prison again, announced United States Attorney Kenneth Magidson.
Hutchins was previously convicted in 2005 and released from prison in 2012. He was under supervised release when he pleaded guilty to one count of possession of child pornography on June 24, 2013.
Following a lengthy hearing yesterday, Senior U.S. District Judge Hayden Head considered Hutchins’ demonstrated recidivism and the need to protect the public and ordered him to federal prison for 188 months. The sentence will be served concurrently to a five-year-term of imprisonment ordered for the revocation of his supervised release in the 2005 case. He will also serve a new lifetime term of supervised release following his release during which he will have to comply with numerous conditions designed to restrict his access to children and the internet.
In handing down the sentence, the court noted that Hutchins presents a real and ongoing danger to the children of our community. The court considered the evidence seized in the case - the child pornography as well as written communications between Hutchins and other pedophiles. In those emails, Hutchins claimed to have himself been sexually assaulted, to have personally sexually assaulted children in the past and expressed a desire to sexually assault children in the future. Hutchins claimed that such writings were nothing more than fantasy. However, the Judge rebuffed that denial and stated that society was entitled to take him at his word that he is a person who has and is capable of sexually assaulting children. The court further noted that his almost immediate return to child pornography following his release from prison in June 2012 was a strong indication that he is likely to reoffend.
Hutchins came to the attention of law enforcement from a CyberTip received by the National Center for Missing and Exploited Children (NCMEC) regarding a person who had posted child pornography images online beginning in September 2012. The images were posted to a popular online photo sharing website by a person using an IP address linked to the Corpus Christi area.
The IP address was later traced to the wife of Hutchins. Under supervised release and forbidden to reside near a school, Hutchins did not reside with his wife. The investigation was able to exclude the wife due to her work schedule and conflicting times associated with the online postings of child pornography. An investigation into his online activities and financial transactions, led to his identification of the one responsible for the postings.
At the time of his plea, he admitted to possessing images of child pornography he acquired from the internet.
The investigation was conducted by the FBI and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC).
Assistant United States Attorney Lance Duke is prosecuting the case, which 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."
Repeat Offender Sentenced for New Child Pornography ViolationRead the Press Release
CORPUS CHRISTI, Texas – Arthur Gregg Hutchins, 67, under supervised release for a previous conviction of possessing child pornography, has been ordered to prison again, announced United States Attorney Kenneth Magidson.
Hutchins was previously convicted in 2005 and released from prison in 2012. He was under supervised release when he pleaded guilty to one count of possession of child pornography on June 24, 2013.
Following a lengthy hearing yesterday, Senior U.S. District Judge Hayden Head considered Hutchins’ demonstrated recidivism and the need to protect the public and ordered him to federal prison for 188 months. The sentence will be served concurrently to a five-year-term of imprisonment ordered for the revocation of his supervised release in the 2005 case. He will also serve a new lifetime term of supervised release following his release during which he will have to comply with numerous conditions designed to restrict his access to children and the internet.
In handing down the sentence, the court noted that Hutchins presents a real and ongoing danger to the children of our community. The court considered the evidence seized in the case - the child pornography as well as written communications between Hutchins and other pedophiles. In those emails, Hutchins claimed to have himself been sexually assaulted, to have personally sexually assaulted children in the past and expressed a desire to sexually assault children in the future. Hutchins claimed that such writings were nothing more than fantasy. However, the Judge rebuffed that denial and stated that society was entitled to take him at his word that he is a person who has and is capable of sexually assaulting children. The court further noted that his almost immediate return to child pornography following his release from prison in June 2012 was a strong indication that he is likely to reoffend.
Hutchins came to the attention of law enforcement from a CyberTip received by the National Center for Missing and Exploited Children (NCMEC) regarding a person who had posted child pornography images online beginning in September 2012. The images were posted to a popular online photo sharing website by a person using an IP address linked to the Corpus Christi area.
The IP address was later traced to the wife of Hutchins. Under supervised release and forbidden to reside near a school, Hutchins did not reside with his wife. The investigation was able to exclude the wife due to her work schedule and conflicting times associated with the online postings of child pornography. An investigation into his online activities and financial transactions, led to his identification of the one responsible for the postings.
At the time of his plea, he admitted to possessing images of child pornography he acquired from the internet.
The investigation was conducted by the FBI and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC).
Assistant United States Attorney Lance Duke is prosecuting the case, which 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."
Husband, Wife and Business Associate Charged with Health Care FraudRead the Press Release
HOUSTON – William Owuama, 55, Marla Owuama, 46, and Florida Holiday Island, 64, all of Houston, have been charged in an eight-count indictment alleging conspiracy to commit health care fraud, health care fraud and conspiracy to violate the federal anti-kickback statute, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Jan. 22, 2014, was unsealed this afternoon as all three defendants made their initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. At the hearing, Judge Stacy permitted Marla Owuama and Island be released upon posting bond. Upon surrendering his passport, William Owuama is also expected to be released upon posting bond.The indictment alleges William Owuama was the owner of Wilmar Healthcare Systems, his wife Marla was a registered nurse and Island transported patients to and from the clinic. According to allegations, they not only paid patients for visiting the clinic in violation of the anti-kickback statute, but billed Medicare and Medicaid for vestibular testing that was never performed. The indictment also alleges the clinic billed Medicare and Medicaid under the provider number of a local doctor while that doctor was incarcerated on unrelated charges. From January 2006 through October 2009, Medicare and Medicaid paid Wilmar more than $4 million based on the alleged fraudulent claims.
If convicted, all three defendants face up to five years in federal prison and a $250,000 fine for conspiring to commit healthcare fraud and violating the anti-kickback statute. The Owuamas also face up to 10 years in prison and a $250,000 fine for the substantive healthcare fraud charges.
The investigation leading to the charges in this case was conducted by the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney (SAUSA) Adrienne Frazior and AUSAs Andrew Leuchtmann and John Pearson are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.