Southern District of Texas
Press releases recorded for this federal judicial district.
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.Brownsville Man Sentenced on Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Jesus Mauricio Juarez Jr. aka Flaco 27, has been sentenced to federal prison for his involvement in a 1,000 pound marijuana load, announced United States Attorney Kenneth Magidson. He pleaded guilty in November 2013.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Juarez to 31 months in federal prison. In handing down the sentence, Ruben Gonzalez-Cavazos aka Mume, also pleaded guilty in relation to the conspiracy and was sentenced to 47 months in federal prison and assessed a $15,000 fine on Feb. 3, 2014. Co-defendant Francisco Javier Maya, 35, went to trial last week in Brownsville and was convicted on all counts. He will be sentenced on May 13, 2014. Adolfo Lozano-Luna aka Chefero, 35, and Alberto Martinez aka El Diablo, 50, also pleaded guilty and will be sentenced at a later date.
Evidence at Maya’s trial placed all five men in a conspiracy involving a 1,000 pound marijuana, which was forcibly hijacked from them by unknown individuals on Dec. 11, 2012. One month later, Juarez was injured after an improvised explosive device (IED) detonated at his residence in Brownsville. In sentencing Juarez today, Judge Tagle discussed the bombing incident and noted that at least he and his family still have their lives.
Evidence also linked Juarez, Gonzalez-Cavazos and Maya to other marijuana loads during the conspiracy. Maya’s role in the drug trafficking organization was to provide drivers for tractor trailers to drive marijuana loads to locations to include Houston and Taylor. Maya, Juarez and Gonzalez-Cavazos would share in the profits of each successful marijuana load.At the direction of Juarez, Maya provided bank account numbers associated with him and Gonzalez-Cavazos to Juarez in order to deposit drug profits. Juarez then made deposits stemming from narcotics proceeds from a successful marijuana load delivered to Taylor in November 2012. Evidence was presented at Maya’s trial that a $6,000 deposit was made into an account associated with Maya on Nov. 28, 2012, while another $6,500 was deposited into an account associated with Gonzalez-Cavazos on the same day.
The jury last week also heard that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest, known as a “Padrino,” perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. After meeting with the Padrino, Maya, Gonzalez-Cavazos and Juarez decided the marijuana load should remain in the Rio Grande Valley. The next day, a second ritual, attended by all five defendants, was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen from the group by unknown individuals that evening. After the theft and subsequent IED detonation, law enforcement was able to piece together the events and conspirators involved in this drug trafficking organization.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. The case was prosecuted by Assistant United States Attorneys Angel Castro and Jody Young.
Brownsville Man Sentenced on Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Jesus Mauricio Juarez Jr. aka Flaco 27, has been sentenced to federal prison for his involvement in a 1,000 pound marijuana load, announced United States Attorney Kenneth Magidson. He pleaded guilty in November 2013.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Juarez to 31 months in federal prison. In handing down the sentence, Ruben Gonzalez-Cavazos aka Mume, also pleaded guilty in relation to the conspiracy and was sentenced to 47 months in federal prison and assessed a $15,000 fine on Feb. 3, 2014. Co-defendant Francisco Javier Maya, 35, went to trial last week in Brownsville and was convicted on all counts. He will be sentenced on May 13, 2014. Adolfo Lozano-Luna aka Chefero, 35, and Alberto Martinez aka El Diablo, 50, also pleaded guilty and will be sentenced at a later date.
Evidence at Maya’s trial placed all five men in a conspiracy involving a 1,000 pound marijuana, which was forcibly hijacked from them by unknown individuals on Dec. 11, 2012. One month later, Juarez was injured after an improvised explosive device (IED) detonated at his residence in Brownsville. In sentencing Juarez today, Judge Tagle discussed the bombing incident and noted that at least he and his family still have their lives.
Evidence also linked Juarez, Gonzalez-Cavazos and Maya to other marijuana loads during the conspiracy. Maya’s role in the drug trafficking organization was to provide drivers for tractor trailers to drive marijuana loads to locations to include Houston and Taylor. Maya, Juarez and Gonzalez-Cavazos would share in the profits of each successful marijuana load.At the direction of Juarez, Maya provided bank account numbers associated with him and Gonzalez-Cavazos to Juarez in order to deposit drug profits. Juarez then made deposits stemming from narcotics proceeds from a successful marijuana load delivered to Taylor in November 2012. Evidence was presented at Maya’s trial that a $6,000 deposit was made into an account associated with Maya on Nov. 28, 2012, while another $6,500 was deposited into an account associated with Gonzalez-Cavazos on the same day.
The jury last week also heard that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest, known as a “Padrino,” perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. After meeting with the Padrino, Maya, Gonzalez-Cavazos and Juarez decided the marijuana load should remain in the Rio Grande Valley. The next day, a second ritual, attended by all five defendants, was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen from the group by unknown individuals that evening. After the theft and subsequent IED detonation, law enforcement was able to piece together the events and conspirators involved in this drug trafficking organization.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. The case was prosecuted by Assistant United States Attorneys Angel Castro and Jody Young.
Speech Therapist and Office Manager Charged with FraudRead the Press Release
HOUSTON – Rebecca Lee Rabon, 44, and Tiffany Nicole Thompson, 31, both of Houston, have been charged in a 44-count indictment alleging conspiracy to commit health care fraud, health care fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Janice Flores of the Defense Criminal Investigative Service (DCIS) - Southwest Field Office in Arlington.
The sealed indictment, returned Jan. 30, 2014, was unsealed late yesterday as Rabon made her initial appearance before U.S. Magistrate Judge Frances Stacy. After the hearing, Judge Stacy permitted Rabon’s release upon posting bond. Just a short time ago, Thompson turned herself in to federal authorities and is expected to appear before Judge Stacy at 2:00 p.m. today.
“As the investigative arm of the Department of Defense - Office of Inspector General, one of the primary missions of the DCIS is the detection of fraud, especially the type that targets critical funding for health care for our warfighters, their families and military retirees,” said Flores. “This investigation demonstrates the commitment of DCIS in rooting out and stopping health care fraud.”
The indictment alleges Rabon, the owner of Rabon Communication Enhancement (RCE) fraudulently billed TRICARE and Blue Cross and Blue Shield of Texas approximately $3,784,642 for speech therapy and swallowing therapy services that were not provided to patients. Of that amount, the indictment alleges approximately $1,285,827.67 was paid on the fraudulent claims. Rabon and Thompson also allegedly submitted fraudulent claims for themselves and three employees of RCE for services that were not provided. Two individuals are identified in the indictment as victims of identity theft.
Rabon and Thompson both face up to 10 years in federal prison for each of the conspiracy to commit health care fraud and 36 substantive health care fraud charges. Rabon, who is also charged with five counts of mail fraud, faces up to 20 years in prison on each of those charges. If convicted of either of the two counts of aggravated identity theft, each also face an additional two-year-term which must be served consecutively to any sentence for the underlying offenses. There is also a possibility of up to a $250,000 fine for conviction of any of the offenses.
DCIS investigated the case. Assistant United States Attorney Julie Redlinger 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.Speech Therapist and Office Manager Charged with FraudRead the Press Release
HOUSTON – Rebecca Lee Rabon, 44, and Tiffany Nicole Thompson, 31, both of Houston, have been charged in a 44-count indictment alleging conspiracy to commit health care fraud, health care fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Janice Flores of the Defense Criminal Investigative Service (DCIS) - Southwest Field Office in Arlington.
The sealed indictment, returned Jan. 30, 2014, was unsealed late yesterday as Rabon made her initial appearance before U.S. Magistrate Judge Frances Stacy. After the hearing, Judge Stacy permitted Rabon’s release upon posting bond. Just a short time ago, Thompson turned herself in to federal authorities and is expected to appear before Judge Stacy at 2:00 p.m. today.
“As the investigative arm of the Department of Defense - Office of Inspector General, one of the primary missions of the DCIS is the detection of fraud, especially the type that targets critical funding for health care for our warfighters, their families and military retirees,” said Flores. “This investigation demonstrates the commitment of DCIS in rooting out and stopping health care fraud.”
The indictment alleges Rabon, the owner of Rabon Communication Enhancement (RCE) fraudulently billed TRICARE and Blue Cross and Blue Shield of Texas approximately $3,784,642 for speech therapy and swallowing therapy services that were not provided to patients. Of that amount, the indictment alleges approximately $1,285,827.67 was paid on the fraudulent claims. Rabon and Thompson also allegedly submitted fraudulent claims for themselves and three employees of RCE for services that were not provided. Two individuals are identified in the indictment as victims of identity theft.
Rabon and Thompson both face up to 10 years in federal prison for each of the conspiracy to commit health care fraud and 36 substantive health care fraud charges. Rabon, who is also charged with five counts of mail fraud, faces up to 20 years in prison on each of those charges. If convicted of either of the two counts of aggravated identity theft, each also face an additional two-year-term which must be served consecutively to any sentence for the underlying offenses. There is also a possibility of up to a $250,000 fine for conviction of any of the offenses.
DCIS investigated the case. Assistant United States Attorney Julie Redlinger 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.Local Woman Sentenced for False Claims in Connection with Fraudulent Tax ReturnsRead the Press Release
HOUSTON – Alisa Grisson has been ordered to federal prison following her conviction of one count of making a false claim against the government, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Lucy Cruz, of Internal Revenue Service - Criminal Investigation (IRS-CI). Grissom pleaded guilty Wednesday, Nov. 13, 2013.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Grissom a 30-month sentence. Grissom will also be required to serve a term of three years of supervised release following completion of the prison term.
Grisson stipulated that the tax losses to the government is $674,284.62 and has agreed to pay that in restitution to the United States.
According to the plea agreement filed in the record of the case, Grisson acknowledged she prepared tax returns in her name and in the names of others. She acknowledged she knew the returns were false and fraudulent when she prepared them and caused them to be filed with the IRS.
Grisson admitted in the plea agreement that these returns reported income that had not been earned and/or expenses that had not been incurred, thus claiming monies from the government in the form of tax refunds to which she and the other taxpayers were not entitled. Specifically, she admitted to falsely claiming a refund of more than $7.4 million for the 2009 tax year.
Grisson further agreed never again to aid or assist in preparing or presenting tax returns for any taxpayer except herself and not to oppose any civil action brought by the United States seeking to enjoin her from preparing income tax returns for others.
Grissom was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Local Woman Sentenced for False Claims in Connection with Fraudulent Tax ReturnsRead the Press Release
HOUSTON – Alisa Grisson has been ordered to federal prison following her conviction of one count of making a false claim against the government, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Lucy Cruz, of Internal Revenue Service - Criminal Investigation (IRS-CI). Grissom pleaded guilty Wednesday, Nov. 13, 2013.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Grissom a 30-month sentence. Grissom will also be required to serve a term of three years of supervised release following completion of the prison term.
Grisson stipulated that the tax losses to the government is $674,284.62 and has agreed to pay that in restitution to the United States.
According to the plea agreement filed in the record of the case, Grisson acknowledged she prepared tax returns in her name and in the names of others. She acknowledged she knew the returns were false and fraudulent when she prepared them and caused them to be filed with the IRS.
Grisson admitted in the plea agreement that these returns reported income that had not been earned and/or expenses that had not been incurred, thus claiming monies from the government in the form of tax refunds to which she and the other taxpayers were not entitled. Specifically, she admitted to falsely claiming a refund of more than $7.4 million for the 2009 tax year.
Grisson further agreed never again to aid or assist in preparing or presenting tax returns for any taxpayer except herself and not to oppose any civil action brought by the United States seeking to enjoin her from preparing income tax returns for others.
Grissom was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Zapata Firearms Trafficking Ring Sentenced for Purchasing Firearms for Los ZetasRead the Press Release
LAREDO, Texas - Six members of a firearms trafficking organization operating out of the Zapata, Texas, area from approximately 2009 through mid-2011 have been ordered to federal prison, announced United States Attorney Kenneth Magidson. Claudia Medrano, 29, Maria Micaela Berrones, 26, Marlene Riojas, 32, Anna Salinas-Alaniz, 53, all of Zapata; Maria Elena Ramos, 31, of Rio Grande City; and Maria Del Carmen Carbajal, 31, of Sullivan City, all previously pleaded guilty to their roles in the firearms offenses.
Today, Senior U.S. District Judge George P. Kazen sentenced Ramos to a 60-month-term of imprisonment. Berrones will serve term of 35 months in prison, while Riojas, Salinas-Alaniz and Carbajal received respective terms of 16, 24 and 28 months. Medrano was ordered to federal prison for 42 months. All were further ordered to be on supervised release for three years following completion of their prison terms. Adriana Garza, 32, of Mission, who also pleaded guilty, will be sentenced Monday, Feb. 3, 2014.
The convictions and sentences were a result of crimes that were discovered during a three‑plus year investigation into a drug trafficking and money laundering organization based out of Zapata. That investigation led to the conviction and lengthy sentences of 16 defendants for various drug trafficking and money laundering activities in August 2013.
As part of the investigation, the defendants sentenced today had been purchasing firearms on behalf of other persons at Gladiator Guns and Ammo in Roma, Texas, and that these weapons and ammunition were ultimately being illegally smuggled to members of Los Zetas drug cartel in Mexico.
Collectively, during the course of the offenses, the defendants illegally obtained a total of 51 firearms from Gladiator Guns and Ammo, the vast majority of which were AR-15-type assault rifles. These weapons were ultimately illegally exported to Mexico. In addition, on June 8, 2010, officers caught Ramos in Zapata attempting to illegally export 3,500 rounds of ammunition and other items to Mexico. She had just obtained this ammunition from Gladiator Guns and Ammo, which included approximately 320 .50 caliber rounds, 1,260 7.62 x 39 millimeter caliber rounds, 2,000 .223 caliber rounds, one night vision spotting scope and two sets of night vision goggles.
Of the firearms the defendants illegally obtained, the Mexican military subsequently recovered approximately seven of the assault rifles at various locations in northern Mexico after military engagements between the Mexican military and members of Los Zetas.
This case is the result of an investigation conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Border Patrol, Homeland Security Investigations, Texas Department of Public Safety and the Zapata and Webb County Sheriff’s Offices. Assistant United States Attorney Arthur R. Jones is prosecuting the case.
Passport Office Worker Convicted of Passport FraudRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted Nyle Churchwell, 51, for his role in the issuance of passports for unqualified people, announced United States Attorney Kenneth Magidson along with George M. Nutwell III, special agent in charge of the Department of State’s Diplomatic Security Service (DSS). The verdict was returned moments ago following four days of trial and approximately six hours of deliberation.
“The DSS is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Nutwell. “When a public servant in a position of trust is alleged to have committed a federal felony such as passport fraud, we vigorously investigate claims of corruption.”
Churchwell was a passport office adjudications manager at the Mickey Leland Federal Building in Houston. The jury heard that Churchwell used his knowledge and authority to conspire to falsely submit and approve passport applications with substandard documentation. He also falsely documented parental identification for a minor child. By Churchwell’s approval, the passports were issued to individuals under false identities and non-citizens of the United States.
Several passport employees provided testimony at trial that detailed how Jamaican applicants who were not U.S. citizens would come in to the office and use other person’s identification and photos of their birth certificate. One of those co-conspirators was Lorna Brown, whom Churchwell knew. He would accept the substandard documents without question and, due to his status in the office, the passports would be issued. Additional evidence demonstrated that Churchwell’s initials and signature were on all the applications and he was asked for by name.
Specifically, the trial evidence proved a non-U.S. citizen and minor child from Jamaica received a passport without the proper two-parent consent. Further, Jamaican criminals were issued valid and full passports under true U.S. citizen names when they were not entitled to them.
Temi Russell, an Internal Revenue Service tax examiner and co-conspirator who worked in the same building as Churchwell, also testified. She described how she would pick up the fraudulent passports from the will-call desk and deliver them to co-conspirators, knowing the true identities and immigration status of the co-conspirators.
Eventually, the fraud was uncovered when one employee came forward and confronted Churchwell.
At trial, Churchwell’s defense contended was he was guilty only for being a nice guy and did not commit any crimes. He further suggested he did not know that the applicants were fraudulent.
The jury ultimately did not believe all of his story and found him guilty on two counts of making false statements in the application and use of a passport.
Churchwell, who has worked for the Department of State for several years, was placed on indefinite suspension after his arrest in September 2012.
U.S. District Judge David Hittner, who presided over the trial, remanded Churchwell to custody following the return of the verdicts today where he will remain pending sentencing, which has yet to be determined. At that time, he will face a maximum of 10 years on each count of conviction.
Brown and Russell both pleaded guilty in advance of trial and will be sentenced in June and April, 2014, respectively.
The case was investigated by the DSS and the Department of Treasury’s Inspector General for Tax Administration. Assistant U.S. Attorney Suzanne Elmilady and Robert Stabe are prosecuting the case.
Santeria Follower Convicted of Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Francisco Javier Maya, 35, has been convicted of one count of conspiracy to possess and possession with intent to distribute approximately 1,000 pounds of marijuana, announced United States Attorney Kenneth Magidson. The verdict was returned less than an hour ago after two days of trial testimony and approximately six hours of deliberations.
The jury heard evidence that placed Maya in a conspiracy involving several marijuana loads each totaling between 300 and 1,000 pounds between the summer of 2012 and January 2013. His role in the drug trafficking organization was to provide tractor trailer drivers to drive marijuana loads to locations including Houston and Taylor, Texas. Maya would share in the profits of each load, making between $4000-$5000 per load.
On one occasion, he provided his wife’s bank account number in order for another conspirator to deposit the drug proceeds. Evidence was presented that $6,500 was deposited Maya’s wife’s account on Nov. 28, 2012, right after a successful 300 pound marijuana delivery to Taylor by the organization.
Two cooperating defendants testified at trial that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. Tthe “priest’s” decision was for the marijuana load to remain in the Rio Grande Valley. The next day, a second ritual was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen by unknown individuals from the group that evening. After the theft, law enforcement was able to determine the events and conspirators surrounding the drug trafficking organization.
Other members of the organization, Jesus Maruicio Juarez aka Flaco or JJ, Ruben Gonzalez Cavazos aka Mume, Adolfo Loazano Luna aka Chofero, and Alberto Martinez aka Diablo, have already pleaded guilty and are set for sentencing Feb. 5, 2014.
U.S. District Judge Hilda G. Tagle, who presided over the trial, has set Maya’s sentencing for May 7, 2014, at which time he faces a mandatory minimum of five and up to 40 years in prison on each count of convictions. He will remain in custody pending that hearing.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young prosecuted the case.
Tax Preparer Arrested for Allegedly Stealing More Than $220,000 from the GovernmentRead the Press Release
LAREDO, Texas – Michelle A. Morin has been arrested following the return of a 14-count indictment alleging she aided and assisted in the preparation of false and fraudulent income tax returns, announced United States Attorney Kenneth Magidson.
Morin was arrested yesterday on the sealed indictment, returned Wednesday, Jan. 22, 2014. It was unsealed this morning as she appeared before US. Magistrate Court Judge Scott Hacker, at which time she was permitted release upon posting a $75,000 cash/surety bond and surrendering her U.S. passport.
The indictment alleges that between tax years of 2007 to 2010, Morin aided and assisted in the preparation of U.S. Individual Income Tax Returns Forms 1040. The forms were allegedly false and fraudulent. According to allegations, the forms represented taxpayers were entitled to claim specified amounts in business losses, interest and taxes paid, gifts to charity, job expenses and miscellaneous deductions as well as residential energy credits. Morin knew the taxpayers were not entitled to claim the deductions, according to the charges.
Morin is accused of assisting in the preparation of 14 fraudulent tax returns for a total of seven different taxpayers during the four-year-period, resulting in a total tax harm of more than $220,000 to the United States.
If convicted, Morin faces a maximum sentence of three years in prison and a $250,000 fine on each count. This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant United States Attorney Sanjeev Bhasker.
A defendant is presumed innocent unless and until convicted through due process of law.Six in Custody in Houston Armored Car Robbery CasesRead the Press Release
HOUSTON – Seven men from Houston have been charged in two separate and unrelated cases involving the robbery or attempted robbery of armored cars operating in and around Houston, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
“The arrests in these cases underscore our commitment to vigorously prosecuting in federal court those that perpetrate violent robberies of armored cars and clearly endanger innocent lives,” said Magidson.
Dezmond Lacraig Edwards, 24, and Allen Bernard Roundtree, 27, were taken into custody late yesterday without incident. They are charged along with James Van-Gerald Johnson, 30, who was previously arrested, with robbing a Loomis armored car on Dec. 6, 2013, at the University of Houston Student Center. During the course of the arrests, authorities recovered several firearms, including three assault rifles, narcotics, cash and other items. They were charged in a sealed indictment returned Jan. 23, 2014, and unsealed this morning as they made their initial appearance before U.S. Magistrate Judge Frances Stacy. They have been ordered held in custody pending a detention hearing set for Jan. 30, 2014, at 10:00 a.m.
Also charged is Ronald Dean Richards, 23, who is considered 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 or Crimestoppers at 713-222-TIPS. Crimestoppers will offer a reward up to $5000 for any information leading to his location and arrest. In addition, beginning today, Richards will be featured on Clear Channel Outdoor's Houston area digital billboards. Clear Channel Outdoor is donating the space as a public service to the community.
In the second, unrelated case, William Hendrick Williams, 27, Stephen Carter, 29, and Bobby Gray, 27, are charged for their involvement in the Oct. 7, 2013, attempted robbery of a Garda Cash Logistics armored truck at the Chase Bank at 19747 N. US 59 in Humble, Texas. Williams and Carter were taken into custody on Friday, Jan. 24, 2014, at which time they made their initial appearance. They are set to appear again in court before Judge Stacy today at 2:00 p.m. Gray is currently in state custody and is expected to appear on the federal charges Jan. 30, 2014.
“Our citizens shouldn’t have to worry about violent offenders opening fire at busy shopping centers or our university campuses. These violent robberies are putting guards and innocent by-standers in grave danger, and they will not be tolerated, said Morris. “The FBI will continue to work tirelessly with our law enforcement partners to ensure justice in every one of these cases.”
Loomis Armored US Inc. and Garda Cash Logistics, who operated the trucks during the alleged robbery and robbery attempt, maintain offices throughout the United States and were engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
On Dec. 6, 2013, Johnson, Richards and Roundtree allegedly drove to the University of Houston Student Center. Johnson, who was armed with a pistol, jumped out and forced the pregnant driver out of the Loomis truck, according to the allegations. The messenger, who was filling the ATM inside the student center, tried to stop Johnson and fired his service weapon. According to the indictment, his attempt was unsuccessful and Johnson was able to abscond with the vehicle which was loaded with money. Johnson, Richards and Roundtree allegedly used a stolen vehicle as their switch vehicle and then loaded all the cash they obtained into two more vehicles they had planted at a prearranged location across from the University of Houston Campus.
Johnson was apprehended as he was leaving town, at which time he had cash, a new car, jewelry and was also carrying a firearm matching the description of the one used during the robbery.
The four men are charged with conspiracy to interfere with commerce by robbery and with interference with commerce by robbery. In addition, Johnson was further charged with brandishing a firearm during a crime of violence.
In the second matter, Williams, Carter and Gray are charged with their involvement in the Oct. 7, 2013, attempted robbery of a Garda Cash Logistics armored truck. The indictment alleges Carter drove the others to the location where they all waited for the armored car to arrive. It is alleged that the guard, who was filling the ATM machine, retrieved money from the armored car, at which time Williams demanded money and shot him several times in the back. Gray allegedly attempted to retrieve the money, but both guards returned fire and the defendant’s fled. The guard was critically wounded, but is continuing to recover.
Williams, Carter and Gray are all charged with one count of conspiracy to interfere with commerce by robbery and one count of interference with commerce by robbery and aiding and abetting. Williams is also charged with discharging a firearm during the commission of a crime of violence.
The conspiracy charge and the convictions for interference with commerce by robbery both carry as possible punishment up to 20 years in prison as well as a possible $250,000 fine. Williams also faces at least an additional 10 years in federal prison and up to life for discharging a firearm during the commission of the Garda attempted robbery which must be served consecutively to the other terms imposed. For brandishing a firearm during the commission of the Loomis robbery, Johnson faces a seven-year consecutive term to any underlying sentence for the robbery offenses.
Both cases are being investigated by the FBI’s Bank Robbery Task Force, which includes members from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Additional assistance was provided in the respective cases by University of Houston Police Department, Texas Rangers, Humble Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, the Gulf Coast Regional Task Force and Crimestoppers. The Loomis and Garda armored cases are being prosecuted by Assistant United States Attorney Megan Paulson and Jennie Basile, respectively.
Mexican National Handed Significant Sentence for Drug Trafficking and Money LaunderingRead the Press Release
McALLEN, Texas – Julio Cesar Almeida, 40, a Mexican National residing in Weslaco, has been ordered to prison for 210 months as a result of his convictions of possession with the intent to distribute cocaine and methamphetamine and money laundering, announced United States Attorney Kenneth Magidson.
Almeida previously pleaded guilty, admitting that In March 2007, authorities seized approximately 408 kilograms of cocaine and 27 kilograms of methamphetamine following a traffic accident near Robstown. Almeida supplied the narcotics which were destined for Georgia. Following a lengthy investigation, Almeida was arrested in March 2010 for coordinating the transportation of numerous loads of cocaine from the Rio Grande Valley area to Georgia and elsewhere. Additionally, the investigation revealed Almeida utilized the proceeds generated from his drug trafficking activities to purchase various properties and assets.
Chief U.S. District Judge Ricardo Hinojosa, who handed down the sentence, ordered he remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Almeida is expected to face deportation proceedings following his release from prison.
The investigation leading to the charges was conducted by the Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuted the case.
Gun Store Owner Guilty of Smuggling Ammunition and Firearm Magazines to MexicoRead the Press Release
LAREDO,Texas – Robert Jacaman Sr., 60, owner of Jacaman Guns and Ammo, has entered a plea of guilty to conspiring to smuggle firearm ammunition and magazines to Mexico, announced United States Attorney Kenneth Magidson. Jacaman, now a convicted felon, surrendered his federal firearms license, is no longer a firearms dealer and is prohibited from possessing firearms, ammunition and destructive devices.
According to the written plea agreement filed with the court, Jacaman admitted to unlawfully conspiring with others to fraudulently and knowingly export .223 caliber and 7.62 mm ammunition and high capacity rifle magazines designed to fit AR 15-type and AK47-type firearms, contrary to the Arms Export Control Act. Several violations Jacaman committed as part of the conspiracy were discussed with federal U.S. Magistrate Judge Diana Song Quiroga, who presided over the entry of the guilty plea this morning.
Jacaman admitted being in direct contact with Oswaldo Roberto Borrego-Ramos aka “Baldo” during the conspiracy, who negotiated the purchase and delivery of the ammunition and firearm magazines with Jacaman. Borrego-Ramos would then send couriers to deliver cash to Jacaman and others to pick up the items to smuggle them into Mexico. In one instance, Jacaman even advised Borrego-Ramos of an outstanding balance which he had not paid for prior sales.
Another co-defendant, Alejandro Rivera-Ruiz, admitted delivering more than $100,000 to Jacaman on behalf of Borrego-Ramos. According to court documents, Borrego-Ramos told agents he was working for “Los Zetas” Mexican criminal organization, supplying them with firearms, ammunition and firearm accessories such as firearm magazines from various sources, including Jacaman.
On March 14, 2012, authorities arrested two Mexican nationals who had just received 27,000 rounds of .223 caliber ammunition from Jacaman’s gun store. They admitted they were on their way to deliver the ammunition to an awaiting Mexican truck driver who would smuggle the ammunition to Mexico. They admitted working for Rivera-Ruiz and Borrego-Ramos.
Borrego-Ramos, Rivera-Ruiz and the two Mexican Nationals have all pleaded guilty and are serving their sentences in federal prison for their respective crimes.
Others originally named with Jacaman in the indictment, Atanacio “None” Gonzalez-Torres, 43, Jose Luis Estrada, 23, and Carlos Picazio, 30, have also pleaded guilty for their roles in this conspiracy and are pending sentencing. Jacaman was permitted to remain on bond pending his sentencing hearing, set for May 27, 2014, at 9:00 a.m. before U.S. Judge Marina Garcia Marmolejo. At that time, he faces a maximum sentence of five years in federal prison and a possible $250,000 fine.
The ammunition and magazines referenced in this indictment were intercepted before being delivered to Mexico.
The case is being investigated by Homeland Security Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the Laredo Police Department. One of HSI's top priorities is the dismantling of organizations involved in the smuggling of firearms to Mexican drug cartels. The collective expertise and authorities of our law enforcement partners during this investigation significantly contributed to preventing hundreds of rifles and handguns from reaching violent criminal organizations and prosecuting those who were responsible. Several police officers have been cross-designated as ATF Task Force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Jose Homero Ramirez is prosecuting this case.
Kidnapper ConvictedRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against Miguel Angel Navarro, 36, of Hidalgo, on two counts of conspiracy to commit and committing hostage taking, announced United States Attorney Kenneth Magidson. The verdict was returned following a four-day trial and less than four hours of deliberation.
The victim testified at trial and told the jury about the events that unfolded Sept. 25-26, 2012, during which she was forcibly taken from a University of Texas-Pan American parking lot and put in a vehicle occupied by Navarro as well as Milton Leonel Trevino and Onan Herrera-Sanchez. She was then taken to another location where she was transferred to a different vehicle and ultimately to the residence of Trevino, where she was held against her will.
Trevino, 21, of Pharr, and Herrera-Sanchez, 29, of Honduras, both pleaded guilty in the case prior to the commencement of this trial. Trevino testified for the government and admitted he and the others knowingly and intentionally conspired with each other to detain and make threats in order to compel another person to pay a sum of money as an explicit or implicit condition of the victim’s release. Trevino admitted he assisted in the actual abduction of the victim and he guarded her while they waited for the ransom money.
The victim’s father also testified and described to the jury about receiving the ransom calls, during which a demand for money was made in exchange for his daughter’s release. He further testified that during the calls, he was told that if the money was not paid, he would never see his daughter again.
Navarro's former wife testified that at his request she assisted in transporting the victim from one location to another. She further claimed she was unaware of the kidnapping at that time, but suspected the female was the victim of the university kidnapping once she was made aware of media news reports. She further admitted she spoke to Navarro during the early morning hours of Sept. 26, given her concerns of his involvement in the kidnapping. At that time, he told her, among other things, not to worry and that they were just trying to get money.
The victim was eventually released physically unharmed by Trevino.
At the inception of the case, the defense claimed Navarro was not involved in the offense. After the testimony of numerous government witnesses, the defense attempted to discredit the witnesses and claimed Trevino and Navarros's former wife lied during their testimony in exchange for favorable consideration in connection with their pending charges.
Ultimately, the jury did not believe him and found Navarro guilty as charged.
Navarro and the others have been and will remain in custody pending sentencing, which is set for April 10, 2014, at 09:00 a.m. before United States District Judge Randy Crane. All face up to life imprisonment and a $250,000 fine.
The investigation was the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from the Edinburg Police Department and Texas Rangers. This case is being prosecuted by Assistant United States Attorney Linda Requénez and Grady J. Leupold.
Jury Convicts 20-Year-Old of Smuggling $1 Million in MethRead the Press Release
BROWNSVILLE, Texas - A federal jury has convicted Jaime Homero Guerrero of conspiracy to possess and possession with intent to distribute more than 50 grams of methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts today following more than two days of testimony and approximately five hours of deliberation.
Guerrero, 20, was a passenger in a 2010 Nissan on April 5, 2013, when it was stopped for a traffic violation on Highway 77 near Raymondville in Willacy County. At that time, officers found 36 packages containing a total of 26.16 kilograms of methamphetamine.
Guerrero initially stated he was headed from Matamoros, Mexico, to a Quincenera in Houston. He later claimed he was going to deliver the vehicle to Houston.
Also charged was Oraldo Arvey Castro-Rocha, who was driving the Nissan and later pleaded guilty.
At trial, agents testified the methamphetamine Guerrero and Castro smuggled was valued at nearly $1 million in the Houston area.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for April 28, 2014, at which time Guerrero faces a mandatory minimum term of 10 years and up to life in federal prison on each count of conviction as well as a possible $10 million fine. He has been in custody since his arrest where he will remain pending sentencing.
The case was investigated by Drug Enforcement Administration and the Texas Department of Public Safety. Assistant United States Attorneys Carrie Wirsing and David A. Lindenmuth prosecuted the case.
Former Employee Heads to Federal Prison for Defrauding Exxon Mobil of More Than $5 MillionRead the Press Release
HOUSTON – Garry W. Arnold, of Dayton, has been ordered to prison for more than five years following his conviction of defrauding Exxon Mobil, his former employer, and causing a loss of more than $5 million, announced United States Attorney Kenneth Magidson. Arnold pleaded guilty Friday, Sept. 20, 2013.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Arnold a 63-month sentence to be immediately followed by a three-year-term of supervised release. In handing down the sentence, Judge Hittner noted, "this has gone on long enough." He was further ordered to pay $5,548,015.80 in restitution.
Arnold, 62, was employed by the Exxon Mobil Chemical Company from 2004 through 2010 at the company’s Baytown Olefins Plant. His job responsibilities included overseeing the maintenance and repair of numerous large furnaces located at the plant, including ordering replacement parts and coordinating the purchase, delivery and installation of these parts.
Arnold also controlled and was part owner of Metal Blinds Unlimited Inc. During the relevant time period, Metal Blinds had minimal legitimate business operations, had no employees other than Arnold himself and it operated out of his residence.
Beginning in or around January 2004 and continuing through April 2010, Arnold carried out a fraudulent invoicing scheme which caused Exxon to pay more than $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which it paid an excessive amount. Arnold and another person shared the proceeds of the scheme by having Exxon send the payment checks to One Source Industrial, a company the other person owned. The other person then caused that company to make payments to Metal Blinds Unlimited, a sham corporation owned by Arnold. The other individual also made payments to Arnold for legitimate work done by One Source Industrial for Exxon and other clients, again by making regular payments by check to Metal Blinds.
In total, the scheme resulted in Exxon creating approximately 78 purchase orders and paying more than $5.5 million to One Source Industrial for work purportedly done by Metal Blinds. Arnold received more than $3.2 million in payments from One Source Industrial in association with these invoices. One Source Industrial also paid approximately $310,253.20 to Arnold as part of the concealed profit-sharing agreement.Previously released on bond, Arnold was taken into custody following the hearing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
Business Owner Admits to Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Jorge Montemayor has entered a plea of guilty to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson.
According to the written plea agreement filed in the record of the case, Montemayor was the Chief Financial Officer (CFO) and one of the initial owners of a home health care business that provided basic skilled care. He acknowledged that in his role as CFO, he had authority to conduct financial transactions on behalf of GDM Home Health Inc. and exercised signatory authority on the company's bank accounts.
The indictment had alleged Montemayor was required to pay over employment taxes to the United States which include federal income tax, Social Security and Medicare taxes. As part of the plea, Montemayor admitted he knowingly and willfully failed to pay over to the IRS approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of GDM Home Health Inc. for 2008. Montemayor admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
He faces a statutory maximum penalty of five years in prison and a $250,000 fine at a sentencing date yet to be determined. He was permitted to remain on bond pending that hearing.
The investigation resulting in the charges against Montemayor was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.
Katy Man Indicted on Federal Hate Crime for Assault of Elderly African American ManRead the Press Release
HOUSTON – A grand jury in Houston has just returned a federal indictment against Conrad Alvin Barrett, 27, charging him with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
“Cases are brought to us from a variety of federal, state and local authorities when there has been a suspected violation of federal law,” said Magidson. “We consider each case on its merits, to include the overall evidence and sufficiency to prove guilt beyond a reasonable doubt in court. Criminal civil rights violations will continue to be high priority of this office.”
Barrett was initially charged by criminal complaint on Dec. 24, 2013. He was arrested two days later and subsequently appeared before U.S. Magistrate Judge Frances Stacy who ordered him held in custody pending further criminal proceedings. He is expected to make an appearance on the indictment before Judge Stacy next week.
Barrett, of Katy, is charged with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. According to court documents, on Nov. 24, 2013, Barrett attacked the elderly man because of the man’s race and color in what Barrett called a “knockout.”
According to the allegations, Barrett recorded himself on his cell phone attacking the man and showed the video to others. The indictment alleges Barrett made several recordings from his cell phone, one in which he identifies himself and another in which he makes a racial slur.
In one recording, Barrett claimed he would not hit “defenseless people” just moments before punching the elderly man in the face, according to court records. Barrett allegedly hit the man with such force that the man immediately fell to the ground. Barrett then laughed and said “knockout,” as he ran to his vehicle and fled, according to allegations. The victim suffered two jaw fractures and was hospitalized for several days as a result of the attack.
“Everyone is protected equally under the law when violent attacks are clearly motivated by race, religion or other bias,” said Morris. “We encourage reporting such crimes to the FBI. Reporting crime is the first step to ensuring justice!”
If you or someone you know has been the victim of a violent hate crime based on race, religion, sexual orientation or gender identity, the FBI may be able to help. The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act of 2009 gives the FBI authority to investigate violent hate crimes, including violence directed at the gay, lesbian, bisexual and transgender community. This federal civil rights law criminalizes willfully causing bodily injury (or attempting to do so with fire, a firearm, or other dangerous weapon) when:
(1) the crime was committed because of the actual or perceived race, color, religion, national origin, of any person, or
(2) the crime was committed because of the actual or perceived religion, national origin, gender, sexual orientation, gender identity, or disability of any person, and the crime affected interstate or foreign commerce, or occurred on federal property.If you or someone you know is a victim of a hate crime, or if you have direct knowledge of such a crime, please contact your local FBI office. This law protects all persons equally regardless of immigration status. Reporting the incident to the FBI is a necessary step to ensuring justice for all victims of violent hate crimes.
If convicted, Barrett faces a statutory maximum of 10 years in prison and a $250,000 fine.
The investigation was conducted by the FBI in cooperation with the Fulshear and Katy Police Departments as well as the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Ruben R. Perez and Joe Magliolo and Civil Rights Division Trial Attorneys Saeed Mody and Olimpia Michel in cooperation with Ft. Bend County District Attorney John Healey.
A defendant is presumed innocent unless proven guilty through due process of law.Jury Convicts Laredo Resident in Drug CaseRead the Press Release
LAREDO, Texas - Roberto Castillo, 34, of Laredo, has been found guilty of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. The federal jury returned the verdict very late yesterday after a two-day trial and approximately seven hours of deliberation.
During trial, the jury heard that on Nov. 6, 2013, law enforcement officers were conducting surveillance and observed a Ford Taurus and Ford Thunderbird drive past a suspected narcotics drop off location near the intersection of Abbeville and Allen Road in Laredo. The occupants met up at a nearby grocery store before the Thunderbird returned to the location where several individuals placed multiple large bundles inside the vehicle.
The driver of the Thunderbird bailed out of the vehicle as U.S. Border Patrol agents drove behind, at which time agents recovered five large bundles of marijuana weighing 172.7 kilograms. The driver was soon apprehended and identified as Eduardo Rodriguez, 24, of Laredo.
While the Thunderbird was being loaded with narcotics, agents also observed the Taurus driving in the same area. The vehicle failed to stop at a traffic light and was stopped by law enforcement. The occupants of the Taurus were identified as Gabriel Aguirre, 22, of Laredo, and Castillo.
Rodriguez and Aguirre both pleaded guilty in advance of trial.
Rodriguez admitted he was asked if he wanted to transport drugs, to which he agreed in exchange for payment of $800. He met with Aguirre and Castillo and followed them to a second location where he was instructed to get into the Taurus. While they drove to pick up the narcotics, Castillo and Aguirre communicated with what appeared to be smugglers from Mexico via cellular phone. He was driven to the Thunderbird and told to wait until he got the call that the area was clear. Rodriguez claimed Castillo and Aguirre said they were going to drive to the pick-up area and make sure there was no law enforcement presence. Soon after, he received a call from Aguirre to pick up the narcotic. He then drove to the area where several males came up to him carrying bundles of marijuana and placed them in his vehicle. He drove away with the bundles, but saw Border Patrol and decided to abandon his vehicle and hide.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for April 8, 2014, at which time Castillo faces a minimum of five and up to 40 years in federal prison and a possible $5 million fine. Previously released on bond, Castillo was ordered into custody following return of the verdict where he will remain pending sentencing.
The case was investigated by Homeland Security Investigations and Webb County Sheriff’s Department with the assistance of Border Patrol. Assistant U.S. Attorney Raul Guerra prosecuted the case.
Three-Hour Manhunt Results in Drug ConvictionRead the Press Release
LAREDO, Texas – Rodolfo Aranda, 25, of Laredo, has been ordered to prison for possession with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Aranda pleaded guilty Sept. 10, 2013.
Today, U.S. District Judge Diana Saldana ordered Aranda to federal prison for 60 months which will be immediately followed by a five-year-term of supervised release. He was further ordered to pay a $2,000 fine.
On July 11, 2013, U.S. Border Patrol (BP) agents arrested Aranda for absconding from authorities on Highway-44 near Laredo. He had been driving a pick-up truck with tampered oil-field numbers, at times drastically increasing and decreasing his speed. BP requested a registration check of the vehicle and learned the license plates did not match the vehicle. Suspicious of illegal activity, agents initiated an immigration inspection and activated their overhead lights.
Aranda then accelerated his vehicle and abruptly turned off the highway, driving his truck through a ranch fence and into the brush. He exited his vehicle on foot and fled through the ranch.
A three-hour manhunt ensued and involved both air and ground patrol. He was arrested within the brush as a result of the search.
At the time of his arrest, Aranda’s fingerprints were found within the vehicle as well as matching footprints near the crime scene. Agents also discovered 20 bundles of marijuana, weighing 202.8 kilograms and valued at $357,760 within the truck.
Aranda will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration and US Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted the case.
Pearland Man Gets Nearly 30 Years for Producing and Distributing Child PornographyRead the Press Release
GALVESTON, Texas – Travis James McReynolds, 32, of Pearland, has received a significant sentence following his two convictions of production and distribution of child pornography, announced United States Attorney Kenneth Magidson. McReynolds pleaded guilty Nov. 7, 2013.
Today, U.S. District Judge Gregg Costa handed McReynolds 351 and 60 months for the production and distribution convictions, respectively. The sentences will run concurrently. At the hearing, the victim’s mother testified about the impact this has had on her daughter and described how McReynolds took her innocence away. In handing down the sentence, Judge Costa took the crimes into consideration and noted how the defendant exploited someone who trusted him. Following completion of his prison term, McReynolds will be on supervised release for the rest of his life and will also be ordered to register as a sex offender.
McReynolds was chatting online with an undercover officer in New Mexico, during which the undercover officer received three images and several videos of child pornography. One of the videos appeared to be a webcam video of a minor female under the age of 13 who is seen lewdly displaying her genitals for the camera and digitally penetrating herself. Still images depicting minor girls displaying their genitals were also emailed to the undercover officer. The officer was able to determine the Internet Service Provider and traced the user to McReynold’s address in Pearland. The undercover officer received from McReynolds a short video clip of what turned out to be a young teen girl that McReynolds had produced himself. Based on this, the undercover officer contacted Galveston area law enforcement with the information.
On Oct. 20, 2012, a state search warrant was executed at the defendant?s apartment in Pearland, at which time two laptop computers were seized which revealed child pornography. Upon questioning, McReynolds admitted to obtaining child pornography by chatting with others over the Internet. Forensic analysis resulted in the discovery of approximately 132 images and 35 videos of child pornography on the two computers.
McReynolds will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The charges against McReynolds were the result of an investigation conducted by the Galveston and Albuquerque offices of Homeland Security Investigations and the Pearland Police Department as part of 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."
Parole Officer Sentenced to Federal Prison for BriberyRead the Press Release
HOUSTON – April Carson, 35, of Houston, has been ordered to federal prison for accepting payoffs from parolees, announced United States Attorney Kenneth Magidson. Carson was employed as a Texas Department of Criminal Justice (TDCJ) parole officer and pleaded guilty Aug. 27, 2013.
Today, U.S. District Judge Lee H. Rosenthal accepted arguments of counsel and a plea for leniency by the defense based on Carson’s lack of criminal record and sentenced Carson to 18 months in federal prison. She will also have to serve a term of three years of supervised release following her release from prison.
Carson was responsible for the supervision of state inmates. As part of her duties, she supervised parolees, their travel between the states as well as their activities to ensure they did not engage in criminal conduct. Carson was found guilty of accepting $2000 from a parolee on Oct. 15, 2012, to allow him to travel while under her supervision.
She 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 operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and TDCJ - Office of Inspector General. The case is being prosecuted by Assistant United States Attorney James McAlister with the assistance of the Harris County District Attorney’s Office.
Two Sentenced for Illegally Possessing Firearms with Plans to ExportRead the Press Release
McALLEN, Texas – The second of two defendants has been ordered to federal prison for being a prohibited person in possession of firearms, announced United States Attorney Kenneth Magidson. Eduardo Villanova-Anaya, 21, a Mexican citizen illegally present in the United States, and Jorge Rodriguez, 35, of Pharr, had previously entered guilty pleas in the case.
Today, U.S. District Judge Randy Cane sentenced Rodriguez to 78 months in federal prison to be followed by a three-year-term of supervised release. Villanova-Anaya was previously sentenced to 120 months and, as a non-U.S. citizen, is expected to face deportation proceedings following his release from prison.
The investigation into both defendants began after agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were alerted to individuals who had made straw purchases of firearms. Villanova-Anaya was determined to be their recruiter and organizer.
During the investigation, Villanova-Anaya contacted an undercover ATF agent to determine if he could procure firearms for him to take to Mexico. After several discussions, Villanova ordered six highly-trafficked firearms and the agent was to be paid upon delivery.
On July 26, 2012, Villanova, Rodriguez and the agent met for the purposes of the transaction, at which time Villanova stated the firearms were going to be smuggled into Mexico. Rodriguez aided and abetted Villanova-Anaya by acting as a driver, assistant and protection at the meeting. They were arrested as Villanova-Anaya picked up and moved the firearms from the agent’s vehicle to his own.
Villanova-Anaya and Rodriguez have been in custody without bond where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant United States Attorney Steven Schammel prosecuted the case.
Last Man Heads to Prison for Area Bank RobberyRead the Press Release
HOUSTON – Kendrick Deswhan Castille, 20, has been ordered to prison for his involvement in the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. Castille pleaded guilty as did co-defendants Terrance Trent Batiste, 21, and Joshua Demond Clay, 29.
Today, U.S. District Judge Kenneth Hoyt sentenced Castille to 31 months for conspiracy to commit bank robbery as well as 31 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 117 months in federal prison. He will be further required to serve three years of supervised release following completion of the prison term.
Batiste was previously sentenced to 60 months for conspiracy to commit bank robbery as well as 78 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 162 months in federal prison. He will be further required to serve five years of supervised release following completion of the prison term. Clay was sentenced to 60 months in prison for conspiracy to commit bank robbery.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Income Tax Return Fraudsters Headed to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Margo Marvette Stafford, Richard Clayton and Mark Jerome Jackson have been sentenced to federal prison for conspiring to use stolen identities to file fraudulent income tax returns, announced United States Attorney Kenneth Magidson. All previously entered guilty pleas in relation to the case.
Today, Senior U.S. District Judge John D. Rainey sentenced Stafford to a term of 12 months and one day in federal prison followed by three years of supervised release. She was further ordered to pay restitution of $98,493. Jackson and Clayton had been sentenced previously to respective terms of six and 14 months, each to be followed by three years of supervised release. The court further ordered restitution to be paid by Jackson and Clayton in the amounts of $19,871 and $75,668, respectively.
In 2011, Internal Revenue Service – Criminal Investigation (IRS-CI) and the U.S. Postal Inspection Service (USPIS) began investigating a fraudulent tax refund scheme in the Corpus Christi area. During the course of the investigation, nine bank accounts were identified which received numerous fraudulent tax refund deposits. Those accounts were opened and controlled by Stafford, Clayton and Jackson.
At the time of their pleas, each admitted they were part of a conspiracy to defraud the United States, acknowledging they opened and maintained bank accounts for the purpose of receiving funds generated by fraudulent tax returns filed using stolen identities. Clayton also admitted he prepared and submitted some of the fraudulent tax returns using stolen identifying information provided by a co-conspirator. Stafford acknowledged stealing identity information from medical files at two nursing homes where she was employed and forwarding that information to a co-conspirator to use in the preparation of fraudulent tax returns. Stafford further admitted to receiving debit cards through the U.S. mail used to access $40,242 resulting from an additional 15 fraudulent tax returns.
Stafford opened and maintained three accounts which had received deposits tied to 47 fraudulent tax returns filed in the names of 47 different victims resulting in electronic tax refund deposits totaling $54,910. An additional seven fraudulent tax returns requested $14,848 in tax refunds, but were detected as fraudulent and not deposited. Agents found 43 fraudulent tax refunds were deposited into five accounts Clayton controlled totaling $56,732.30, with an additional 19 fraudulent income tax returns requesting $31,841 determined to be fraudulent and not deposited. The one account used by Jackson had 17 electronic tax refund deposits related to fraudulent tax returns filed in the names of 17 different individuals, totaling $19,871.
Stafford was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons (BOP) facility to be determined in the near future. Jackson has also been allowed to voluntarily surrender, while Clayton has already reported to a BOP facility to serve his sentence.
These cases were investigated by IRS-CI and USPIS and are being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Four Sentenced for Involvement in A Straw Purchases RingRead the Press Release
McALLEN, Texas – Four people associated with making false statements in the acquisition of firearms from federal firearms licensees (FFL), commonly referred to as straw purchasing, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Jose Maria Flores, 21, and Arnulfo Torres, 33, both of McAllen; Rene Rene Olivo, 25, of Alamo; and Mario Reynoso Jr., 39, of Mission, all pleaded guilty to making false statements and/or aiding and abetting the making of the false statements to FFLs on Aug. 7, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed prison sentences to each of the defendants. Flores received 60 months in federal prison, while Torres, Olivo and Reynoso received respective sentences of 60, 37 and 30 months. All were further ordered to serve two-year-terms of supervised release following completion of their prison sentences. At the hearing today, additional evidence was presented indicating a total of 125 firearms were purchased between all the defendants and co-conspirators.
In March 2011, agents with the Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) began an investigation into the purchase of high-powered rifles from local FFLs in McAllen. Through their investigation, agents identified the defendants as being involved in the straw purchasing of multiple firearms and admitted to doing so at their respective plea hearings.
The sentences imposed today were further enhanced as the court determined the firearms were being trafficked and used or possessed for another felony offense.Reynoso was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Flores, Torres and Olivo have been and will remain in custody.
The investigation was conducted by the ATF and prosecuted by Assistant United States Attorney Juan Villescas.
Former Executive Indicted for Defrauding Health Care Company of Nearly $3 MillionRead the Press Release
HOUSTON – Joseph S. Antonucci, 41, of Houston, has been charged with defrauding his former employer, Patriot Managed Health Care Systems Inc., and causing a loss of more than $2.9 million, announced United States Attorney Kenneth Magidson.
Antonucci was charged in a sealed indictment, returned Jan. 14, 2014, and unsealed today upon his arrest. He made his initial appearance before U.S. Magistrate Judge Mary Milloy this morning and was ordered into custody pending a detention hearing set for tomorrow afternoon.
The indictment alleges Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts, according to the indictment.
From at least January 2007 through September 2012, Antonucci allegedly defrauded Patriot by embezzling approximately $2.9 million from the company’s bank accounts. The indictment alleges Antonucci made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally, according to the allegations.
Antonucci allegedly executed the scheme by creating false financial documents. The indictment alleges these documents misrepresented key accounting figures for the company and overstated the company’s net worth while concealing Antonucci’s embezzlement. Antonucci allegedly sent these false documents via email to the managing partner of the investment fund that owned Patriot. Antonucci also used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
The indictment charges Antonucci with 15 counts of wire fraud based on these emails and personal expenses paid by Antonucci (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. The indictment also charges Antonucci with five counts of engaging in a monetary transaction with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. The indictment also alleges one count of making false a statement, based on alleged false statements Antonucci made when FBI agents interviewed him in February 2013.
A conviction for wire fraud carries as possible punishment a maximum penalty of 20 years in federal prison on each count and a $250,000 maximum fine or twice the pecuniary gain or loss. Engaging in monetary transactions with the proceeds of specified unlawful activity carries as possible punishment a maximum penalty of 10 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss. If convicted of making a false statement, Antonucci also faces up to five years in federal prison and another $250,000 maximum fine.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Attempting to Smuggle More Than $2 Million Lands Illinois Man in PrisonRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has been ordered to prison for attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. Orizaba entered a guilty plea Sept. 6, 2013.
Today, U.S. District Judge Diana Saldana handed Orizaba a sentence of 37 months in federal prison and ordered the forfeiture of $2,147,985. In handing down the sentence, Judge Saldana noted the sentence takes into account the need to protect the public, noting “where there is money of this magnitude, there are people willing to protect it…which means danger.” Orizaba will also be required to serve a term of three years of supervised release following completion of the prison term.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
At the time of the guilty plea, Orizaba acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
Orizaba will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Local Gang Member, Associates Sentenced for Federal Drug Trafficking CrimesRead the Press Release
CORPUS CHRISTI, Texas – Three men working with the Texas Mexican Mafia (TMM) to distribute heroin and cocaine in the Corpus Christi area have been sentenced to federal prison, announced United States Attorney Kenneth Magidson. Alejandro Guerrero, 39, of Corpus Christi, was found guilty of conspiracy to distribute heroin after a two-day jury trial in October 2013.
Today, Senior U.S. District Judge Hayden W. Head sentenced Guerrero to a total term of 188 months in federal prison which will be immediately followed by five years of supervised release.
Jose Miguel Zuniga aka Slick, 33, also of Corpus Christi, and Alberto Donicio Galindo aka Crazy Horse, 38, of Laredo, had previously entered respective guilty pleas to possession with intent to distribute heroin and conspiracy to possess with intent to distribute cocaine. Zuniga and Galindo were also sentenced today to 74 and 24 months in federal prison, respectively. Both will serve three years of supervised release.
The remaining defendants in this case, Ruben Esparza aka Popo, 36, and Ernesto Villarreal aka Crash, 36, both of Robstown, have also pleaded guilty to their involvement in the heroin conspiracy and are scheduled for sentencing in Houston before U.S. District Judge Nancy F. Altas in February.
Jurors in the trial of Guerrero heard testimony that Esparza, a local leader of the TMM, had been receiving shipments of narcotics from Laredo in 2011. Investigators learned of the time and place of drug shipments and witnessed Guerrero meet with a courier from Laredo at a Corpus Christi Walmart on two occasions. After a traffic stop, law enforcement discovered a loaded handgun in the passenger compartment of Guerrero’s vehicle. “Black tar” heroin was also found hidden in a secret compartment of Guerrero’s vehicle.
Galindo was another courier for the Laredo drug source. He delivered 4 ½ ounces of cocaine to Esparza in April 2011. Zuniga, another member of the TMM, admitted to purchasing an ounce of heroin from Esparza in May 2011, which Zuniga then intended to distribute.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorney Michael Hess.Jury Convicts Mexican Truck Driver in Methamphetamine/Heroin ConspiracyRead the Press Release
LAREDO, Texas - A federal jury has returned a guilty verdict against Juan Manuel Reyes Vasquez, 36, of Nuevo Laredo, for engaging in a conspiracy to posses with intent to distribute in excess of a kilogram of heroin and 500 grams of methamphetamine, announced United States Attorney Kenneth Magidson. The verdicts were returned following four days of trial and approximately 10 hours of deliberation.
Vasquez and others were identified during a long term Organized Crime Drug Enforcement Task Force (ICDETF) investigation as being part of conspiracy that was engaged in smuggling multiple kilograms of methamphetamine and heroin from Nuevo Laredo to Laredo for further distribution to other areas to include Dallas.
The jury heard evidecne that Vasquez was a tractor-trailer driver who was employed with a legitimate company and who would travel regularly between Nuevo Laredo to Laredo to deliver goods for the company. Unbeknownst to his employer, Vasquez was also illegally importing heroin in his tractor. After delivering the company’s goods in Laredo, he deviated from his route to meet a co-conspirator and exchange narcotics.
Agents were able to identify and locate the tractor in question and observe a meeting between Vasquez and co-conspiractor Blanca Abundez. Following the meeting, officers conducted a traffic stop of her vehicle and discovered two separate bags each containing eight bundles of drugs. Abundez had transported eight bundles of methamphetamine believing she was going to deliver the drugs to Vasquez, but instead Vasquez delivered eight bundles of Heroin to her.
Following the traffic stop and arrest of Abundez, agents were able to discover that several bundles of drugs still remained at the Abundez residence. A search warrat was executed which resulted in the discovery of an additional 17 bundles of methamphetamine.
The total weight of drugs seized for the two days was approximately 28 kilograms of methamphetamine and nine kilograms of heroin. The overall long-term OCDETF investigation yieled a total of 61, 23 and nine kiolgrams of methamphetamine, cocaine and heroin, respectively.
Four others previously entered pleas of guilty and are awaiting sentencing - Christian Abundez, 23, and Blanca Abundez, 28, both of Laredo; Ilmar Sierra, 35, of Dallas; and Rolando Salinas Apac, 33, of Nuevo Laredo. Vasquez will remain in custody pending sentencing which will be set at a later date before U.S. District Judge George P. Kazen.
The case was investigated by DEA with the assistance of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant United States Attorney Mary Lou Castillo prosecuted the case.
Brownsville “Doctor” Sentenced in Stem Cell CaseRead the Press Release
HOUSTON – Francisco Morales, 54, of Brownsville, has been sentenced for his role in a conspiracy to introduce misbranded and unapproved new drugs into interstate commerce, announced United States Attorney Kenneth Magidson. Morales and co-defendant Lawrence Stowe, 60, both falsely represented they were licensed to practice medicine in the United States. Morales operated a medical clinic in Brownsville, but was reportedly only licensed to practice in Mexico and carried out stem cell treatments for U.S. citizens in Mexico.
Today, U.S. District Judge Gray Miller handed Morales a sentence of 60 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Miller noted his sentence was limited to 60 months by statute. Restitution was also ordered in the amount $479,862. Stowe is set for sentencing March 7, 2014.
On Sept. 5, 2012, Morales entered a guilty plea, admitting he sold an unapproved drug product to Stowe called SF 1019 knowing Stowe would sell this product to patients. Morales falsely represented to the public that he had extensive training and experience regarding stem cells and stem cell therapy, when his exposure was actually limited to attending seminars and reading materials published by researchers.
In June 2006, he received $8,300 from a couple to perform an unapproved stem cell procedure involving stem cells on their minor son who had experienced neurological problems after a near drowning incident. Prior to performing the procedure, Morales falsely represented that the stem cell procedure would be beneficial to combat the child’s medical condition. He also falsely represented to two other patients that he obtained stem cells from private Universities and had treated more than 1000 patients using stem cells with only positive results.
Stowe admitted that beginning in January 2006, he utilized several businesses, Stowe BioTherapy Inc. and The Stowe Foundation to advertise and promote a medical treatment protocol for the treatment of amyotrophic lateral sclerosis (ALS) also known as Lou Gehrig’s disease, multiple sclerosis (MS), Parkinson’s and other neurological diseases. This treatment protocol, which was named “Applied Biologics,” consisted of supplements, vaccines, patient specific transfer factors and ultimately stem cell therapy. Stowe falsely represented to patients that this treatment protocol had been reviewed by all levels of the FDA and was effective in the treatment of ALS, MS and Parkinson’s. There is currently no cure for these diseases.
Morales also pleaded guilty in a second case for introducing stem cells extracted from umbilical cords into interstate commerce and introducing an unapproved new drug into interstate commerce. He admitted to purchasing stem cells from a company called Caledonia Consulting located in Mt. Pleasant, S.C. After acquiring stem cells from Caledonia, he would travel to Mexico and perform stem cell procedures, knowing the FDA had not approved the use of stem cells to treat human diseases. Morales further admitted that in April 2009, he began purchasing vials containing stem cells from a company called Global Laboratories. He will be sentenced in that case tomorrow, Jan. 17, 2014, at 4:00 p.m. before U.S. District Judge Ewing Werlein Jr.
Two others were also convicted in that case - Alberto Ramon, of Del Rio, Texas, and Vincent Dammai, of Mount Pleasant, S.C. They are set for sentencing Jan. 27, 2014.
The cases were investigated by the Food and Drug Administration (FDA) - Office of Criminal Investigations and the FBI with assistance from Internal Revenue Service-Criminal Investigation. Assistant United States Attorney (AUSA) Cedric L. Joubert and former AUSA Samuel J. Louis prosecuted the case with assistance of Carol Wallack with the Department of Justice Civil Division’s Consumer Protection Branch.
Magnolia Man Sentenced in Firearms ConspiracyRead the Press Release
HOUSTON – Daniel Wade Holler, 27, has been sentenced to federal prison for conspiracy to make false written statements to licensed dealers in connection with the acquisition of firearms and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. Holler, of Magnolia, pleaded guilty June 28, 2013.
Today, U.S. District Judge Gray Miller ordered Holler to serve a total of 121 months in federal prison to be immediately followed by three years of supervised release.
In September 2011, authorities began to connect several firearms purchases by multiple individuals to Holler. His vehicle had been used during the purchases and ultimately led to the discovery of the overall conspiracy. Some of the co-conspirators had been seen on store surveillances and by witnesses arriving and leaving in a red car. The authorities were able to trace the car back to Holler and connected him to the purchase of 55 firearms by multiple individuals.
Holler’s role in the conspiracy included directing the co-defendants to falsify statements intended to deceive the federal firearms licensees. Each co-conspirator was paid approximately $100-150 dollars per firearm bought and then turned them over to an individual who would send them to Mexico. All nine co-conspirators have pleaded guilty to their roles in this conspiracy.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation and has played an integral role in combatting firearms trafficking between the United States and Mexico.
This case was prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Woman Indicted for Threat Against PresidentRead the Press Release
HOUSTON – Denise O’Neal, aka Teddy Bear Paradise, was been indicted by a federal grand jury for threatening to injure and murder President Obama, announced United States Attorney Kenneth Magidson.
O’Neal was initially arrested on Dec. 26, 2013, upon the filing of a criminal complaint. She subsequently appeared before U.S. Magistrate Judge Nancy Johnson who ordered her held without bond pending further criminal proceedings. She is expected to make an initial appearance on the indictment in the near future.
The indictment alleges O’Neal, a 57-year-old resident of Houston, mailed a letter to the President that contained a threat, specifically, that she was going to travel to Washington D.C. to murder him.
If convicted, O’Neal faces up to five years in federal prison and a possible $250,000 fine.
The case is being investigated by the Secret Service and is prosecuted by Assistant United States Attorney Julie N. Searle.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Architect Arrested in Connection with Progreso Bribery SchemeRead the Press Release
McALLEN, Texas - Jesus Bustos, 57, has been arrested on charges of conspiracy and bribery associated with a federally-funded program, announced United States Attorney Kenneth Magidson.
Bustos was charged in a sealed superceding indictment, returned Jan. 8, 2014, and unsealed this morning upon his arrest. He is expected to make an initial appearance before U.S. Magistrate Judge Peter Ormsby at 9:00 a.m. in McAllen.
The superseding indictment alleges Bustos participated in a bribe paying scheme in Progreso. Bustos is accused of paying bribes to public officials in Progreso in order to obtain contracts on public construction projects for his architectural firm, IDEA Group LLC.
Also indicted are Jose Vela, the former director of maintenance and transportation for the Progreso Independent School District (PISD), and his sons - mayor of Progreso Omar Vela and former president of the PISD Board of Trustees Michael Vela. The Vela family defendants are accused of using their control of Progreso municipal government and the PISD Board of Trustees to extract bribes and kickbacks from contractors, including IDEA Group. PISD receives more than $1 million per year in federal funds from the United States Department of Education, according to the indictment.
Beginning in June 2004, the Vela family members allegedly conspired with Bustos and others to obtain bribes and kickbacks from IDEA Group and from a construction company that were both hired as contractors by the city of Progreso and PISD. According to the indictment, bribes were also paid by an attorney who was hired as local counsel to advise the PISD Board and by a company that supplied the city of Progreso and PISD with electrical and plumbing supplies.
The indictment alleges Jose Vela maintains political control in Progreso through his sons Omar and Michael. Jose Vela allegedly controls members of the PISD Board through a system of reward and retaliation in which board members who vote as Jose Vela directs are rewarded with bribe money, while those who do not follow his direction are retaliated against. Through this system of political control, the Vela family was able to obtain bribes from Bustos and other willing contractors.
If convicted, Bustos faces up to 10 years in prison and a possible $250,000 fine.
The FBI investigated the case and Assistant United States Attorney Robert S. Johnson 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.Texas Mexican Mafia General Heads to Federal Prison for Nearly 13 YearsRead the Press Release
HOUSTON - Eric Gomez aka Valla, a general in the Texas Mexican Mafia prison gang, has been ordered to prison for his role in the distribution of heroin, announced United States Attorney Kenneth Magidson. Gomez, 37, of San Antonio, pleaded guilty Sept. 11, 2013.
Gomez was charged along with 25 members or associates of the notorious Texas Mexican Mafia (TMM) prison gang with trafficking in heroin, cocaine and methamphetamine as well as firearms violations, distributing explosive materials and violent crimes in aid of racketeering in October 2012. Court records showed the TMM gang made money by trafficking heroin, cocaine and methamphetamine and by selling firearms.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Gomez a sentence of 151 months in federal prison. In handing down the sentence, Judge Atlas noted that the heroin quantity was as significant as any case in her 18 years on the bench.
The TMM formed in the early 1980s in the Texas Department of Criminal Justice. During a four-year-period from 2008 through October 2012, the TMM procured illegal drugs and distributed the drugs to numerous associates involved in drug trafficking in order to carry out the business of the gang. Gang members also sold numerous assault rifles and other guns to FBI sources as well as detonation cord. Gomez himself facilitated the sale of 5.5 kilograms of heroin to a FBI confidential source from December 2011 - January 2013.
In addition to Gomez, 22 others have also pleaded guilty in the case to date. Among those include Houston residents Robert Arechiga, 35, Francisco Galvan, 47, Alexander Garcia, 41, George Maldonado, 46, Carlos Romero, 32, and Juan Sarmientos, 46. Also convicted include Valentin Ayala-Gutierrez, 52, Gilbert Gonzalez, 43, Jose Cerda, 27, and Enrique Bravo, 39, all of San Antonio; Ruben Esparza, 36, of Robstown; Jorge Montemayor, 37, and Michael Villarreal, 33, both of Baytown; Alvin Valadez, 43, of Seguin; and Ernesto Villarreal, 36, of Corpus Christi. Also pleading guilty were Juan Deluna, 43, Adam Guzman, 45, Jorge Montemayor, 37, Johnny Reyes, 52, Ricardo Sanchez, 34, Tony Valdez, 38, and Armando Villarreal III, 25.
Gomez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The case was investigated by the FBI with assistance from Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, Harris County Sheriff’s Office, police departments in Baytown and Houston and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting.
Mexican National Convicted of Transferring Obscene Matter to A MinorRead the Press Release
LAREDO, Texas – Mexican National Germain Zamarron Celis, 38, has entered a guilty plea to transferring obscene matter to a minor, announced United States Attorney Kenneth Magidson.
According to court records, Celis had started communicating with whom he thought was a 15-year-old minor female by way of a local chat room and through his personal email address. In reality, he was communicating with an undercover officer. Celis started the communication on Aug. 29, 2013, which continued for approximately a month.
During the communication, Celis made several extremely sexually explicit comments. He further mentioned he was “dreaming about her” and expressed a desire to meet her. In preparation for such meeting, he sent her a picture of his male genitalia.
Celis was arrested outside of his apartment complex in Laredo on Nov. 6, 2013, where he had been illegally residing. Sentencing has been set for April 7, 2014, before U.S. District Judge Marina Garcia Marmolejo. At that time he faces up to 10 years in federal prison and a maximum $250,000 fine. He will remain in custody pending that hearing.
Homeland Security Investigations and the Webb County Sheriff’s Office investigated the case and Assistant United States Attorney Suntrease Williams-Maynard is prosecuting.
Nigerian Man Sentenced for Bank/Mail Fraud Scheme and ID TheftRead the Press Release
HOUSTON - Olasunkanmi Shittu, 42, has been sentenced to a total of 84 months in federal prison for his role in a bank fraud and mail fraud scheme that defrauded approximately 25 victims, announced United States Attorney Kenneth Magidson. Shittu pleaded guilty Oct. 15, 2013, to one count each of conspiracy to commit bank and mail fraud, four counts of mail fraud and rwo counts of aggravated identity theft.
Today, U.S. District Judge David Hittner handed him a sentence of 18 months for each of the conspiracy to commit mail fraud and mail fraud charges. Those sentences will be served concurrently to each other but consecutive to another 18 months for the conspiracy to commit bank fraud. He was further ordered to serve 24 months on each of the two identity theft charges which will both be served consecutively to each other and to the other sentences imposed for a total term of 84 months in federal prison. He will also pay restitution payment in the amount of $10,550. Not a U.S. citizen, he is expected to face deportation proceedings back to Nigeria following completion of his prison term.
Shittu stole personal identifying information and credit card account information from multiple victims. He and his co-conspirators would then hack into the victim’s credit card accounts via the Internet, steal reward points associated with the account, convert those points into cash and transfer the cash onto debit cards or gift cards under their sole custody and control. Using this scheme, on or about June 11, 2012, Shittu caused four Wal-Mart re-loadable MoneyCards valued at approximately $10,550 to be sent to him and his co-conspirators via the U.S. Mail. The four Wal-Mart cards were funded with reward points stolen from at least 25 different victims.
Shittu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Julie Searle.
McAllen Area Ambulance Company Owner Charged with Multiple Health Care Fraud AllegationsRead the Press Release
McALLEN, Texas ‐ The owner of a McAllen area ambulance transportation company has turned himself into federal authorities following the return of a federal indictment alleging a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
Victor Gonzalez, 26, of Mission, was charged in a sealed indictment, returned Jan. 8, 2014. The nine-count indictment was unsealed as he surrendered this morning. He made his initial appearance before U.S. Magistrate Judge Peter Ormsby today, at which time he was ordered into custody pending a detention hearing set for Jan. 15, 2014, at 9:00 a.m.
Gonzalez, the owner of Vic’s Texas Transport Inc. (dba Victory EMS), is charged with five counts of health care fraud, three counts of aggravated identity theft and one count of mail fraud.
The indictment alleges that from December 2010 to February 2013, Gonzalez submitted false and fraudulent claims to Medicare and Texas Medicaid for ambulance transportation services in the McAllen area that were not provided. In the submission of false and fraudulent billings, Gonzalez also allegedly stole the identity of a beneficiary.
According to allegations in the indictment, Gonzalez sent or caused others to send approximately 621 false and fraudulent claims totaling approximately $545,054 to Medicare and Texas Medicaid for ambulance transportation services. The billings were allegedly false and fraudulent because none of the patients were transported by ambulance as claimed, according to the indictment. As a result of the claims, Medicare and Texas Medicaid allegedly paid out $339,730.26.
The indictment also alleges that to conceal his fraud, phony ambulance transportation records were created, and Gonzalez illegally used the identities of patients on his unlawful billings.
Each of the five counts of health care fraud carries a maximum punishment of 10 years in federal prison upon conviction, while mail fraud carries a maximum punishment of 20 years. Both convicted also carry as possible punishment a $250,000 fine. If convicted of aggravated identity theft, Gonzalez will be ordered to serve a mandatory two‐year additional prison term which must be served consecutive to any other prison sentence imposed.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Michael Day is prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Guilty Plea in Counterfeit Viagrar and Cialisr CaseRead the Press Release
HOUSTON - Mohammad Jamal Rashid, 45, has pleaded guilty to one count of conspiracy related to the illegal importation and attempted trafficking of counterfeit drugs and one count of receiving and delivering misbranded drugs, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI) and Resident Agent in Charge Tommy R. Hennesy from the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI).
“This conviction is the culmination of a multi-agency effort to prevent the smuggling and distribution of counterfeit pharmaceuticals across international borders,” said Moskowitz. “This will serve as a reminder to those that choose to engage in illegal activity and endanger the public - that HSI will use all of its resources to identify, investigate and dismantle these criminal networks wherever they operate.”
Rashid, a legal permanent resident originally from Pakistan and residing in Houston, admitted he conspired to illegally import counterfeit and misbranded Viagra® and Cialis® to his home in Houston under a false name and with a false declaration waybill. A total of 3,200 counterfeit Viagra® and 4,000 counterfeit Cialis® were sent to the defendant’s home from China in open foil blister packs without packaging or labels.
Although the drugs sent to Rashid looked authentic, testing conducted by the FDA, Pfizer and Eli Lilly confirmed the drugs were not authentic and were in fact counterfeit and misbranded. The tablets had inconsistencies in physical appearance and packaging. Additionally, the counterfeit Viagra® had less of Pfizer’s active pharmaceutical ingredient than the 100 mg stated on the foil pack, while the counterfeit Cialis® did not contain any of Eli Lilly’s active pharmaceutical ingredient.
“Distributing counterfeit and misbranded drugs puts the health of the public at risk,” said Hennesy. “The FDA will take firm action to protect unsuspecting consumers from products that are deceptive and could be dangerous to their health.”
U.S. District Judge David Hittner, who accepted the plea, has set sentencing for April 7, 2014. At that time, Rashid is facing a possible punishment is up to five years in prison and a $250,000 fine for the conspiracy conviction and a maximum of three years and a $10,000 fine for receiving and delivering the misbranded drugs into interstate commerce.
Previously released on bond, Rashid was taken into custody following the hearing today where he will remain pending sentencing.
The investigation into Rashid was conducted by HSI and FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.
“El Canonazo” Owner Guilty of Illegally Smuggling Firearm Magazines to MexicoRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss “El Canonazo” sporting apparel and firearm accessories stores in Laredo, has been convicted of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson today. The verdict was announced late today after a three-day trial and approximately nine hours of deliberation.
According to testimony from Leticia Moncada Infante, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to her at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them. Infante has already pleaded guilty and is awaiting sentencing.A Homeland Security Investigations (HSI) special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Jorge Sosa, a former employee of Gonzalez who has also pleaded guilty, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifles to another courier at the employee’s personal storage unit. The employee and the third courier testified that both met at the employee’s storage unit on Dec. 7, 2012, where the courier picked up five boxes containing a total of 360 magazines. The courier was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Gonzalez was permitted to remain on bond pending sentencing, which is set for April 14, 2014.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
Former Local Resident Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Trent Ashley Willis, 37, has pleaded guilty to distributing child pornography, announced United States Attorney Kenneth Magidson. The plea was entered yesterday in federal court in Corpus Christi before Senior U.S. District Judge Janis Graham Jack.
Willis came to the attention of law enforcement after multiple pornographic images of children were posted to several websites. The investigation led to the identity of Willis who had been posting and exchanging child pornography in Corpus Christi between May and October of 2012 via legitimate websites with other users who were similarly interested. Willis resided in Corpus Christi during parts of 2012, but left the area sometime during late 2012. He was eventually discovered and arrested without incident in Petersberg, Va., in October 2013.
The ongoing investigation has linked Willis to numerous occurrence of Internet-based child pornography related activities in multiple states.
Judge Jack has set sentencing for March 19, 2014, at which time he faces a minimum of five and up to 20 years in federal prison. Upon completion of any prison term imposed, Willis also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender. Willis has been in custody since his arrest where he will remain pending that hearing.
The FBI investigated with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Mexican Man Gets Significant Sentence for Cocaine ConspiracyRead the Press Release
HOUSTON – Oscar Nava-Valencia, 42, of Guadalajara, Mexico, has received a 25-year sentence for his role in the smuggling of a 3,100 kilogram load of cocaine from Panama, announced United States Attorney Kenneth Magidson.
Nava-Valencia previously pleaded guilty and was sentenced late yesterday afternoon in federal court in Houston.
U.S. District Judge Ewing Werlein Jr. sentenced Nava-Valencia to a term of 300 months in federal prison and further ordered him to pay a $5,000 fine.
In March 2006, Panamanian authorities seized approximately 2,080 kilograms of cocaine from a warehouse in Panama City, Panama. The seized cocaine was part of a larger load totaling approximately 3,100 kilograms which was to be shipped from Panama to Mexico and eventually destined for the United States. Nava-Valencia, along with other associates, was to take possession of approximately 1,250 kilograms of cocaine once it arrived in Mexico. In January of 2010, Nava-Valencia was apprehended by Mexican authorities and extradited to the United States in January 2011.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorneys James Sturgis prosecuted the case.
Corpus Christi Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Corpus Christi resident Paul Pittman, 45, has been sentenced to seven years for possessing child pornography, announced United States Attorney Kenneth Magidson. Pittman pleaded guilty Oct. 3, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Pittman a total sentence of 84 months in federal prison to be followed by a 15-year-term of supervised release. In handing down the sentence, the court considered the need to protect the public and deter future criminal behavior by Pittman and others. Pittman will also be required to register as a sex offender.
Pittman came to the attention of law enforcement following a complaint at a Wal-Mart in Corpus Christi alleging an unknown male had inappropriate contact with a minor female. Pittman was identified as the suspect by witnesses to the incident and he was arrested. At that time, he was in possession of a cell phone which was subsequently searched, resulting in the discovery of numerous images of child pornography.
Homeland Security Investigations and the Corpus Christi Police Department's Internet Crimes Against Children Task Force investigated.
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."
Last Man Ordered to Prison for Wells Fargo RobberyRead the Press Release
HOUSTON - Justin Levar Taylor, 33, of Houston, has been sentenced to federal prison for his role in the robbery of the Wells Fargo Bank on Kirby Drive in Houston in December 2012, announced United States Attorney Kenneth Magidson. Taylor and three others - Aaron Derrow, 43, Terrance Jackson, 35, and Willie Wright III, 32, all also of Houston - each pleaded guilty in the case.
Today, U.S. District Judge Judge Nancy Atlas sentenced Taylor to 51 months for the bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 135 months in federal prison.
On Friday Dec. 28, 2012, Derrow and the others robbed the Wells Fargo Bank at 5202 Kirby Drive in Houston. All of the men were wearing various disguises, and Wright, Derrow and Taylor were armed with pistols. Jackson and Derrow jumped over the teller counter while Wright and Taylor controlled the lobby. Derrow threatened a male teller with his gun while filling a bag with money. After getting the money, the two jumped back over the teller counter and all four ran out of the bank to their getaway vehicle, a stolen white Toyota pickup truck. All were apprehended a short time later at a residence several miles away.
In December 2013, Judge Atlas sentenced Derrow to 51 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 135 months in federal prison. Wright was sentenced to 46 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 130 months in federal prison. Jackson was given a sentence of 108 months for his conviction of aggravated bank robbery.
All have been and will remain in custody.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Houston Man Convicted of Distribution and Possession of Child PornographyRead the Press Release
HOUSTON - Ivan Geovanni Ramirez, 29, has entered guilty pleas to distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Ramirez was indicted in August 2013 and today admitted to both allegations as charged.
Ramirez was arrested on March 5, 2013, following an investigation which revealed Ramirez was using peer-to-peer file sharing software to distribute child pornography over the Internet.
In October 2012, an FBI special agent was able to download child pornography from Ramirez. Authorities obtained and executed a search warrant and seized his computer, among other items. Forensic analysis revealed 358 images and 112 videos containing child pornography which involved pre-pubescent females, some under the age of 12, engaging in sexually explicit conduct with adult males.
U.S. District Judge Lynn Hughes, who accepted the plea, has set sentencing for April 7, 2014, at which time he faces a minimum of five and up to 15 years for the distribution conviction as well as a maximum of 10 years for the possession of child pornography. Both convictions also carry a possible $250,000 fine. Upon completion of any prison term imposed, Ramirez also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender. Ramirez has been in custody since his arrest where he will remain pending that hearing.
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."
Katy Man Charged with Federal Hate Crime for Punching and Breaking Jaw of 79-Year-old African American ManRead the Press Release
HOUSTON - Conrad Alvin Barrett, 27, has been charged with a federal hate crime related to a racially-motivated assault of a 79-year-old African American man, announced United States Attorney Kenneth Magidson along with Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division and Special Agent in Charge Stephen L. Morris of the FBI.
“Suspected crimes of this nature will simply not be tolerated,” said Magidson. “Evidence of hate crimes will be vigorously investigated and prosecuted with the assistance of all our partners to the fullest extent of the law.”
The criminal complaint was filed under seal Dec. 24, 2013, and unsealed today upon Barrett's arrest. He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy at 10:00 a.m. or 2:00 p.m.
The complaint charges Barrett, of Katy, with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. According to the complaint, on Nov. 24, 2013, Barrett attacked the elderly man because of the man’s race and color in what Barrett called a “knockout.”
“Hate crimes tear at the fabric of entire communities,” said Samuels. “As always, the Civil Rights Division will work with our federal and state law enforcement partners to ensure that hate crimes are identified and prosecuted, and that justice is done.”
Barrett allegedly recorded himself on his cell phone attacking the man and showed the video to others. The complaint alleges Barrett made several videos, one in which he identifies himself and another in which he makes a racial slur. In addition, Barrett had allegedly been working up the “courage” to play the knockout game for approximately a week.
The “knockout game” is an assault in which an assailant aims to knockout an unsuspecting victim with one punch. According to the complaint, the conduct has been called other names and there have been similar incidents dating as far back as 1992.
According to the complaint, Barrett comments in a video that “the plan is to see if I were to hit a black person, would this be nationally televised?” The complaint further alleges Barrett claims he would not hit “defenseless people” just moments before punching the elderly man in the face. Barrett allegedly hit the man with such force that the man immediately fell to the ground. Barrett then laughed and said “knockout,” as he ran to his vehicle and fled, according to allegations. The complaint indicates the victim suffered two jaw fractures and was hospitalized for several days as a result of the attack.
“It is unimaginable in this day and age that one could be drawn to violently attack another based on the color of their skin,” said Morris. “We remind all citizens we are protected under the law from such racially motivated attacks, and encourage everyone to report such crimes to the FBI.”
If convicted, Barrett faces a statutory maximum of 10 years in prison and a $250,000 fine.
The investigation was conducted by the FBI in cooperation with the Fulshear and Katy Police Departments as well as the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Ruben R. Perez and Joe Magliolo and Civil Rights Division Trial Attorneys Saeed Mody and Olimpia Michel in cooperation with Ft. Bend County District Attorney John Healey.
A defendant is presumed innocent unless proven guilty through due process of law.Local Doctor Pleads Guilty in Misbranding Drugs CaseRead the Press Release
LAREDO, Texas – Eduardo Miranda M.D., 55, of Laredo, has pleaded guilty to one count of introducing misbranded drugs into the country, announced United States Attorney Kenneth Magidson.
From October 2007 through January 2009, Miranda, a doctor who specializes in treating patients with cancer, ordered cancer drugs from a pharmacy called QSP, based in Canada. These drugs were not approved for distribution or use in the U.S. and did not bear adequate labeling for use. Some of the drugs had instructions and labeling in other languages. QSP was also not an authorized distributor or a retailer of these drugs in Canada.
Miranda then used these drugs interchangeably with Food and Drug Administration (FDA) - approved versions on his patients and filed insurance claims with Medicaid, Medicare and Blue Cross/Blue Shield of Texas as if he were using lawfully-approved versions.As part of the plea agreement, Miranda has agreed to pay back the reimbursement he had received while using non-approved versions - more than $1 million.
He was permitted to remain on bond pending his sentencing, which will be set at a later date. At that time, he will face up to a year in federal prison and/or a possible $100,000 fine.
The case was investigated by the FDA and Texas Attorney General’s Office-Medicaid Fraud Control Unit and prosecuted by Assistant United States Attorneys (AUSA) Raul Guerra and Sonah Lee and former AUSAs Sam Louis, Diana Song and D.J. Young.13-Year Fugitive Doctor Convicted for Federal Income Tax FraudRead the Press Release
HOUSTON – A former doctor who was a fugitive for more than 13 years has been convicted of filing a false income tax return, announced United States Attorney Kenneth Magidson. Steven Louis Price pleaded guilty late yesterday after a lengthy hearing to making false statements on a federal income tax return.
Price became a fugitive when he failed to appear in court on this case on Dec. 16, 1999. He remained a fugitive until his surrender to the U.S. Marshals Service on March 20, 2013.
The investigation established Price willfully made materially false statements in his 1992 federal income tax return by understating gross income derived from his medical practice and falsely claiming entitlement to a married joint filing status. Price was never married. The Investigation further determined Price willfully understated Schedule C gross receipts derived from his medical practice on his federal income tax return by at least $98,315. Price received the majority of this income from attorneys and insurance companies paying worker’s compensation or automobile accident claims. In order to conceal this income, Price cashed many of the checks and used the proceeds to purchase cashier’s checks.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for Feb. 26, 2014. At that time, he faces up to 36 months in prison and a possible $100,000 fine. Price has been in custody since his surrender on March 20, 2013, where he will remain pending that hearing.
The investigation was conducted by Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Daniel C. Rodriguez.
Real Estate Agent Headed to Prison for Money LaunderingRead the Press Release
McALLEN, Texas - Freddy Centeno, 52 of Brownsville, has been ordered to prison for money laundering for a convicted drug trafficker, announced United States Attorney Kenneth Magidson. Centeno, a licensed real estate agent, pleaded guilty to a one-count criminal information August 30, 2013.
Today, U.S. District Judge Micaela Alvarez handed Centeno a sentence of 24 months in prison to be immediately followed by a two-year-term of supervised release. In handing down the sentence, Judge Alvarez noted Centeno was responsible for laundering more than $200,000 and further ordered the forfeiture of all real properties.
At the time of his plea, he admitted he helped a narcotics trafficker launder drug profits through the purchase of real properties in Brownsville. Centeno structured financial transactions of residential and commercial properties to conceal the identity and ownership of a narcotics trafficker.
The conviction and sentence comes as a result of the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Spike Strip. The narcotics trafficking and money-laundering investigation targeted the Armando Arambul drug trafficking organization which operated under the auspices of the Gulf Cartel in Matamoros, Mexico, and throughout the Southern District of Texas.
Arambul and others were responsible for transporting multi-ton quantities of cocaine to Houston and other major U.S. cities and remitted millions of dollars to the Gulf Cartel. Arambul was convicted and was previously sentenced to 14 years in prison.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, FBI, Customs and Border Protection, Border Patrol, Cameron County District Attorney’s Office-Narcotics Investigation Division and the U.S. Marshals Service. Assistant United States Attorneys Jesse Salazar is prosecuting the case.