Southern District of Texas
Press releases recorded for this federal judicial district.
Houston Woman Indicted for Fraud and Identity TheftRead the Press Release
HOUSTON – Simone Nicole Gary, 35, of Houston, has been arrested following the return of a 35-count indictment alleging multiple counts of mail fraud, Social Security fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Nov. 20, 2013, was unsealed today upon her arrest. She is expected to make her initial appearance before U.S. Magistrate Judge George Hanks at 2:00 p.m.
The indictment alleges that between July 2009 and August 2012, Gary used the name and personal identifiers such as the Social Security number of another individual to obtain employment at Houston area medical clinics. She then allegedly submitted fraudulent applications to the American Kidney Fund for grants to patients to assist with the dialysis treatments. The American Kidney Fund then sent grant checks to Gary who then allegedly used the funds for her personal benefit.The indictment alleges 27 counts of mail fraud, two counts of Social Security Fraud and six counts of identity theft.
If convicted, she faces up to 20 years in prison on each count of mail fraud as well as up to five years imprisonment for each count of Social Security fraud. For the aggravated identity theft, she faces an additional two years on each count, upon conviction, which must be served consecutively to any other prison term imposed. All charges also carry a possible $250,000 fine if convicted.
The indictment also contains a notice of forfeiture of $55,191.53.
The case was investigated by Secret Service and Social Security Administration - Office of Inspector General and is being prosecuted by Assistant United States Attorney John Braddock.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Durable Medical Equipment Company Owner Sentenced for Defrauding MedicareRead the Press Release
HOUSTON – Emeka Daniel Orji, 43, of Richmond, has been sentenced to federal prison and ordered to pay restitution following his conviction for conspiracy to commit and committing health care fraud, announced United States Attorney Kenneth Magidson. Orji pleaded guilty July 29, 2013.
Today, U.S. District Judge Lynn Hughes handed Orji a sentence of 48 months in prison. He was also ordered to pay $1.5 million in restitution to the Medicare program.
During his plea, Orji admitted that between January 2006 and March 20, 2008, he agreed with Aghaegbuna "Ike" Odelugo, of Supar Land, to split the profits of a scheme to defraud Medicare and Medicaid. Orji opened the Durable Medical Equipment (DME) company Spectrum Foundation Inc. and obtained a Medicare provider number. He admitted he worked with Odelugo and, through Spectrum, submitted approximately $4.4 million in false claims to Medicare and received payments totaling approximately $1.5 million.Orji said that most items billed to Medicare and Medicaid, including “Artho kits” and power wheelchairs, either were not delivered at all, not medically necessary, not prescribed by a physician or upcoded from what was actually delivered. The items in the kit primarily consisted of a double shoulder brace, a lower back brace, left and right elbow braces, left and right wrist braces, gloves, left and right knee braces, left and right ankle braces and left and right foot braces. While Medicare may cover some of the items in this kit individually based on medical necessity, they are not recognized nor authorized to be provided as a kit. At Spectrum, approximately 96% of the items billed were the Artho Kits and lymph edema pumps, 3% were power wheelchairs and accessories and the remainder was various other DME.
In addition, several of the items were upcoded ‑ that is, the item billed to Medicare is paid at a higher rate than the actual item delivered. The upcoding was most prevalent in the back braces and heating pads. Using Spectrum, Orji and Odelugo submitted approximately $700,000 in claims to Medicare for the thoracic lumbar sacral orthotic brace - a full torso, rigid clamshell brace. If a beneficiary received any lumbar brace, it was usually a small flexible neoprene brace.
Orji admitted Odelugo obtained Medicare beneficiary information by paying recruiters, then created paperwork and patient files to give the appearance of a valid claim. Odelugo electronically filed the claim with Medicare or Medicaid and sent the patient files to Orji. Spectrum submitted 157 claims for dead beneficiaries. The Medicare money was then split between Orji and Odelugo with 25% going to Orji and 75% going to Odelugo. In total, Orji received approximately $375,000.
Odelugo also pleaded guilty and was sentenced last year to 72 months in prison.
Orji 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 criminal charges are the result of an investigation conducted by agents of the United States Department of Health and Human Services-Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Al Balboni.
Bank Robber Ordered to Federal PrisonRead the Press Release
HOUSTON – The third of four convicted in the armed bank robbery of a Wells Fargo Bank in September 2012 has been ordered to federal prison, announced United States Attorney Kenneth Magidson. Stanley Snowden, 40, of Houston, pleaded guilty June 28, 2013.
Today, U.S. District Judge Melinda Harmon sentenced Snowden to 87 months for his role in the aggravated bank robbery as well as an additional 84 months for brandishing a firearm during commission of the crime. The sentences are to be served consecutively for a total of 171 months in federal prison.
On Sept. 26, 2012, at approximately 9:45 a.m., the Wells Fargo Bank on Fulton Street in Houston was robbed by Snowden and two others - David Wilson Holiday, 35, of Houston, and Alvin Theotis Snowden, 41, of Houston - wearing masks and bandanas. Stanley Snowden and Alvin Snowden were armed with semiautomatic pistols.
Holiday and Alvin Snowden jumped over the teller counter demanded that the bank employees lay down on the ground, while Alvin Snowden pointed his weapon at them. Alvin Snowden took the bank manager to the vault and demanded money and Holiday took one of the bank employees to her teller drawer.
Stanley Snowden controlled the lobby area, during which time he assaulted an elderly female customer by throwing her to the ground and pointing his pistol directly at her as she lay on the floor of the bank.
After the robbery, the three men exited the bank and entered a Chevrolet Impala, driven by Anthony D. Brown, 40, of Houston, who drove the others to the bank prior to the robbery. All were apprehended a short time later, at which time a .32 caliber pistol, a 9mm pistol and money stolen from the bank were recovered from the vehicle.
The three others also pleaded guilty. Alvin Snowden received a total sentence of 319 months, while Brown will serve 92 months in federal prison. Holiday will be sentenced next month.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
Zeta Commander “Taliban” Facing Trial in the U.S.Read the Press Release
LAREDO, Texas - Ivan Velasquez-Caballero, aka “Taliban” and “50” has been extradited to the U.S. and made his initial appearance this morning in federal court in Laredo, announced United States Attorney Kenneth Magidson. He is set for an arraignment and detention hearing at 10:00 a.m. on Nov. 27, 2013.
Velasquez-Caballero, 43, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in Mexico since Sept. 26, 2012, when he was arrested in San Luis Potosi, Mexico. He was extradited under the treaty between the United States and Mexico and arrived in Laredo on Nov. 21, 2013.
The charges against him stem from a Feb. 17, 2010, superseding indictment charging the defendant and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U.S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges.
Specifically, Velasquez-Caballero is charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments. If convicted, he faces a maximum of life imprisonment and a $4 million fine for the drug conspiracy as well as a $250,000 fine and up to 20 years for the money laundering conspiracy.
Of those originally charged in relation to the case, 15 have been convicted and sentenced with two receiving life sentences. In addition, four others have also been convicted in separate indictments resulting from the same investigation.
The indictment was a result of an Organized Crime Drug Enforcement Task Force investigation dubbed Operation Prophecy conducted by the Drug Enforcement Administration and the Laredo Police Department with assistance from Homeland Security Investigations, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service, Webb County District Attorney's Office and Webb County Sheriff’s Office. The Justice Department’s Office of International Affairs provided assistance with the extradition.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Three members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake to one count of conspiracy to participating in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013. Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participating in racketeering activity.
According to court documents, Shipman, Maynard, Harris and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. The defendants and numerous other ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and committing multiple acts of violence and/or narcotics trafficking on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.
Shipman, Maynard and Harris are four of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 18 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Mexican Cocaine Supplier ConvictedRead the Press Release
LAREDO, Texas – Salvador Ibarra De-Alba, 48, of Nuevo Laredo, Tamaulipas, Mexico, has entered a plea of guilty for his role in a conspiracy to transport five kilograms or more of cocaine, announced United States Attorney Kenneth Magidson.
De-Alba was named in a sealed indictment returned Aug. 28, 2012, which indicated a drug trafficking organization had transported five kilograms or more of cocaine since 2008 from Nuevo Laredo, Mexico, to Houston and Miami, Fla., on a regular basis. De-Alba is the eighth conspirator to plead guilty in the case.
As part of the plea, De-Alba admitted he supplied cocaine to relatives living in Laredo and ensured its transportation further north into the United States. After the arrest of De-Alba’s brother, Juan Ramon Ibarra Sr. in 2010, De-Alba worked with his nephew, Juan Ramon Ibarra Jr., to continue the transportation of cocaine. Ibarra Sr. was sentenced to 130 months in federal prison along with another of his sons, Alejandro Ibarra, who received a sentence of 120 months. Ibarra Jr. is set for sentencing Feb. 3, 2014.
U.S. District Judge Marina Garcia Marmolejo, who accepted De-Alba's plea and the others in this case, has set his sentencing also for Feb. 3, 2014, at which time he faces a mandatory minimum of 10 years up to a maximum of life in prison as well as a possible $10 million fine. The United States is also seeking a money judgment in the amount of $2,408,204.
The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.
Business Owner Admits to Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Leticia Reyna 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, Reyna admitted she and Jorge Montemayor operated Professional Skilled Services Inc., a home health care business that provided basic skilled care. She acknowledged that in her role as president, she had authority to conduct financial transactions on behalf of Professional Skilled Services Inc. and exercised signatory authority on the company's bank accounts. The indictment had alleged Reyna was required to collect, truthfully account for, and pay over employment taxes to the United States which include federal income tax, Social Security and Medicare taxes.
As part of the plea, Reyna admitted she knowingly and willfully failed to pay over to the IRS approximately $48,562.44 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of Professional Skilled Services Inc., for the fourth quarter of 2008. Reyna admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
A sentencing date has not yet been set. She faces a statutory maximum penalty of five years in prison and a $250,000 fine. She was permitted to remain on bond pending the sentencing hearing.
The investigation resulting in the charges against Reyna was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
Two Head to Prison for Attempted "Ice" DistributionRead the Press Release
McALLEN, Texas – Raymundo Jose Cabrera-Paredes, of Mission, and Estevan Ochoa-Gomez, of Huixtla, Chiapas, Mexico, have been ordered to federal prison for more than 20 years following their involvement in the distribution of crystal methamphetamine from McAllen to Dallas, announced United States Attorney Kenneth Magidson along with along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Cabrera-Paredes, 47, and Ochoa-Gomez, 44, pleaded guilty in January 2013.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty pleas, handed Cabrera-Paredes and Ochoa-Gomez respective sentences of 292 and 262 months in federal prison. In handing down the sentence, Judge Alvarez noted their extensive involvement in the narcotics transactions. The court also noted Cabrera-Paredes was involved in two additional narcotics transaction in April and May of 2012 that, respectively, involved crystal methamphetamine and cocaine. Cabrera-Paredes will serve a five-year-term of supervised release. Ochoa-Gomez is expected to face deportation proceedings after he serves his sentence.
On Oct. 16, 2012, Cabrera-Paredes met with an undercover agent and negotiated the transportation of eight kilograms of crystal methamphetamine from McAllen to Dallas. At the time of the meeting, he claimed his associate, Ochoa-Gomez, was wrapping the narcotics for transportation. Two days later, Ochoa-Gomez delivered to the crystal methamphetamine to the undercover agent for delivery to Dallas.
A subsequent analysis of the narcotics revealed the net weight of the crystal methamphetamine was 12.01 kilograms and that the narcotics had purity level of 98.4%. A purity level of greater than 80% qualifies the narcotic as “ice.”
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by DEA. Assistant United States Attorney Juan Alanis is prosecuting the case.
Attempted Crystal Meth Distribution Results in Significant SentencesRead the Press Release
McALLEN, Texas – Gelacio Cendejas-Renteria, 44, of Uruapan, Michoacan, Mexico, and Julian Martinez-Rodriguez, 44, of McAllen, have been ordered to federal prison for their respective involvement in the distribution of crystal methamphetamine from McAllen to Houston, announced United States Attorney Kenneth Magidson along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA).
Today, U.S. District Judge Randy Crane sentenced Cendejas-Renteria to life in prison. In handing down the sentence, Judge Crane noted Cendejas-Renteria’s role in the transaction as well as utilization of his residence to store the narcotics and involving the assistant of a minor in the drug negotiations. As an illegal alien, Cendejas-Renteria is expected to
Taking into consideration his role in the case as well as his prior criminal history, Judge Crane sentenced Martinez-Rodriguez to 360 months in federal prison today. He will also face deportation proceedings following his release from prison.
On Jan. 17, 2013, Cendejas-Renteria met with an undercover agent and negotiated the transportation of crystal methamphetamine from McAllen to Houston. On Feb. 1, 2013, Cendejas-Renteria met with the agent and provided him money to cover the cost of transporting the narcotics to Houston. On the same date, Cendejas-Renteria provided the agent the keys to a motor vehicle containing the narcotics. The agent then obtained the vehicle and, while traveling to another location, was followed by Martinez-Rodriguez. The vehicle was determined to have 10 bricks of crystal methamphetamine with a gross weight of 12 kilograms. A subsequent search at the residence of Cendejas-Renteria and Martinez-Rodriguez lead to the discovery of an additional 20 bricks of crystal methamphetamine with a gross weight of 22 kilograms and an additional 29 bundles of marijuana with a gross weight of 272 kilograms.
Cendejas-Renteria pleaded guilty on March 25, 2013, while Martinez-Rodriguez pleaded guilty on May 3, 2013.
Both men will remain in custody.
The investigation was conducted by DEA and is being prosecuted by Assistant United States Attorney Juan Alanis.
Two Indicted for Assault of A Border Patrol AgentRead the Press Release
LAREDO, Texas - Mexican National Jose Luis Zavala-Rodriguez aka Jose Juan Zavala-Rodriguez or Jose Juan Rodriguez-Rosa, 22, and Johnny Jose Redrovan-Pesantez, 23, of Ecuador, have been charged with assault of a federal officer causing bodily injury, announced United States Attorney Kenneth Magidson. Zavala-Rodriguez is also charged with conspiracy to transport aliens and transporting an alien for personal financial gain.
Currently in custody, both men are expected to make an initial appearance before U.S. Magistrate Judge Scott Hacker tomorrow, at which time the government expects to request their continued detention pending further criminal proceedings.
The indictment, returned today, alleges that on or about Oct. 23, 2013, the men did knowingly forcibly assault, resist, oppose, impede, intimidate, and interfere with a U.S. Border Patrol agent while he was performing his official duties. The agent required medical attention but survived.
The three-count indictment also alleges that Zavala-Rodriguez conspired to transport as well as transporting an alien who had entered and remained in the United States illegally for the purpose of commercial advantage and private financial gain.
If convicted of the assault on the officer, each faces up to 20 years in prison and a possible $250,000 fine. Zavala-Rodriguez further faces an additional 10-year possible sentence on each of the remaining two charges, upon conviction, as well as a $250,000 fine.
The case was investigated by FBI and the Laredo Police Department and is being prosecuted by Assistant United States Attorney Homero Ramirez.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Pearland Septuagenarian Heads to Prison for Nearly 14 Years in Child Pornography CaseRead the Press Release
GALVESTON, Texas – David Paul Roetcisoender, 73, of Pearland, has been ordered to federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Roetcisoender was convicted by a federal jury on Aug. 28, 2103, following a two-day trial and approximately two hours of deliberation.
In handing down the sentence, U.S. District Judge Gregg Costa, who presided over the trial, took into consideration his age as well as the large number of images involved and the length of time he was engaged in the activity. Roetcisoender was then ordered to serve respective terms of 120 and 163 months for the possession and distribution convictions, which will served concurrently for a total of 163 months in federal prison. He will then serve eight years of supervised release following completion of his prison term and will also be ordered to register as a sex offender.
During the trial, the jury testimony from a detective with the Pearland Police Department who explained how he discovered several videos of child pornography over the Internet which were later traced to a computer used by Roetcisoender.
Evidence proved that on June 4, 2012, officers executed a search warrant at Roetcisoender’s residence in Pearland. At that time, an officer conducted a computer forensic preview which resulted in the discovery of thousands of images and videos of child pornography on a computer Roetcisoender used.
At the time of the search, testimony further revealed Roetcisoender admitted to downloading and viewing child pornography since the 1990s.
The jury also heard that more than 2000 videos and more than 100,000 images of child pornography were found on computers, hard drives and other storage devices seized by officers and used by Roetcisoender.
Further, the government proved that he not only possessed the child pornography but distributed it on at least two separate occasions. A Pearland computer forensic officer testified that the file sharing program used by Roetcisoender contained data that specified which specific files had been downloaded by others over the Internet from Roetcisoender’s computer.
Roetcisoender attempted to convince the jury that he did not knowingly distribute child pornography.
The jury disagreed and found him guilty on two counts of distribution of child pornography and one count of possession of child pornography.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Pearland Police Department investigated the case 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."
Houston Woman Convicted of Using Brother’s Social Security Number to Cash Deceased Woman’s Benefit ChecksRead the Press Release
HOUSTON – Doris Hayes, 36, of Houston, has entered a guilty plea to two counts of making false statements involving a Social Security number, announced United States Attorney Kenneth Magidson.
Hayes admitted she opened bank accounts at International Bank of Commerce and University Federal Credit Union using false Social Security numbers, including that of her brother, in order to facilitate a check cashing scheme.
A previous related indictment charged Sandra Carrier, 57, of Houston, with taking part in the scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts Hayes had opened with false Social Security numbers. Carrier and Hayes continued to negotiate the checks up to eight years after Carrier’s mother’s death.
The United States suffered $177,642 in damages as a result of the scheme.
U.S. District Judge David Hittner, who accepted the guilty plea today, has set sentencing for Feb. 13, 2014, at 9:45 a.m., at which time Hayes faces up to five years in prison and a possible $250,000 fine.
Carrier has already pleaded guilty to related charges and received a sentence of 12 months and one day in prison.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.Guilty Plea Entered for False Claims Against the Government in Connection with Fraudulent Tax ReturnsRead the Press Release
HOUSTON – Alisa Grisson has pleaded guilty to one count of making a false claim against the government, announced United States Attorney Kenneth Magidson.
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 Internal Revenue Service (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 stipulated that the tax losses to the government is $674,284.62 and has agreed to pay that in restitution to the United States. 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.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for Jan. 28, 2014. At that time, she faces up to five years in federal prison and a possible $250,000 fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Former Loan Processor Indicted with Husband and Brother in Conspiracy to Defraud California BankRead the Press Release
HOUSTON - An 11-count sealed indictment charging conspiracy and bank fraud has been unsealed following the arrests of area residents Rita “Jessica” Martinez, her husband Gilbert Martinez and her brother Felix Martinez, announced United States Attorney Kenneth Magidson.
The three were arrested this morning without incident at their residences. They made their initial appearances before U.S. Magistrate Judge Mary Malloy today, at which time they were permitted release upon posting bond. They are set for arraignment on Monday, Nov. 18, at 9:45 a.m.
Rita “Jessica” Martinez, 31, Gilbert Martinez, 35, both of Houston, and Felix Martinez, 37, of New Caney, are charged for their alleged involvement in a scheme to defraud Farmers and Merchants Bank of Long Beach, Calif., out of bank loans for themselves and others.
According to allegations in the indictment, Jessica Martinez worked as a loan processor at a Houston area business known variously as Globan Mortgage Company, Casa Milagro and First Milagro. She allegedly submitted falsified loan applications for Gilbert and Felix Martinez and others to Farmers and Merchants Bank. The indictment alleges the defendants completed loan applications containing falsified income information and provided false information about borrowers’ employment, income and assets.
The Indictment also provides notice of the government’s intent to forfeit their interest in the loan proceeds they allegedly obtained as a result of the bank fraud scheme, including a house in New Caney, which was allegedly purchased with loan proceeds from the purported fraud.The maximum penalty, upon conviction, for conspiracy and bank fraud is 30 years in prison and a $1 million fine.
This case is being investigated by the FBI, United States Postal Inspection Service and the Federal Deposit Insurance Corporation. Assistant United States Attorney Belinda Beek is prosecuting.
Three Handed Sentences for Lengthy Health Care Fraud ConspiracyRead the Press Release
McALLEN, Texas – Two former clinic staffers and a physician assistant’s wife have all been ordered to prison for conspiracy to defraud Medicare and the Texas Medicaid program in the operation of the Mission Clinic and La Hacienda Family Clinic, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
Eliza Lozano Lumbreras, 46, and San Juanita Gallegos Lozano, 57, a couple who operated the Mission Clinic, were in the midst of trial in late 2012, when they opted to enter guilty pleas for their roles in the conspiracy. Manuel Anthony Puig, 48, and Romelia Puig, 45, both of Edinburg, operated La Hacienda Family Clinic near Alton and both previously pleaded guilty in advance of trial.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Lumbreras and Lozano to 50 and 33 months in federal prison, respectively. In addition to the prison terms, Judge Hinojosa ordered they pay $371,720.16 in restitution to Medicare and Medicaid for the false and fraudulent claims they submitted or caused to be submitted to the health care programs. Romelia Puig was ordered to pay $185,881.75 in restitution and received a sentence of 18 months. All will also serve three-year-terms of supervised release upon completion of their prison sentences. Manuel Puig will be sentenced Tuesday, Nov. 12, 2013 at 2:30 p.m.
Lumbreras and Lozano conspired together and with the others to submit claims to Medicare and Medicaid using the Medicaid provider number of a medical doctor who for years before his death, was unable to practice medicine. In fact, the doctor suffered from Parkinson’s disease and associated Dementia and had been mentally incompetent to practice medicine since September 2001. Although the doctor was unable to practice, they kept the Mission Clinic open for patient care. Lumbreras and Lozano took the doctor to the Mission Clinic and placed him in an office while Lumbreras saw and treated patients. Neither Lumbreras or Lozano were licensed to provide any medical services. The government’s evidence showed that between September 2001 and January 2006, Lumbreras and Lozano submitted bills to the Medicare and Medicaid programs which fraudulently claimed the doctor had provided patients with more than 13,000 medical benefits, items or services when in fact those services had been provided by Lumbreras or not at all. As a result, Medicare and Medicaid paid more than $344,000 on those claims.
Beginning in April 2005, Lumbreras and Lozano also arranged for Manual Puig to operate La Hacienda Family Clinic in Alton and to send bills to Medicare and Medicaid using the provider number of that same unpracticing doctor. Manuel Puig is physician assistant. By state law, a licensed physician is required to supervise and delegate work to a physician assistant and to be responsible for the physician assistant. At his plea hearing, Manuel Puig admitted he joined the ongoing conspiracy, admitting to fraudulently using the Medicaid provider number of that doctor who was unable to practice medicine nor provide any health care benefits, items or services; who did not delegate authority to Manuel Puig to provide any health care benefits, items or services; and who did not supervise Puig’s attempts to provide health care benefits, items or services.
Romelia Puig admitted that between May 2005 and January 2006, she was the biller at La Hacienda Family Clinic and that she submitted or caused to be submitted more than 6,000 claims to Medicare and Medicaid fraudulently using that Texas Medical provider number for which Medicare and Medicaid paid approximately $173,830.56.Lumbreras had access to the doctor’s bank accounts and was able to obtain control over the money Medicare and Medicaid paid for the fraudulent bills submitted from the Mission and La Hacienda clinics, which was divided among Lumbreras, Lozano, their families, Puig and his wife.
Previously released on bond, all were allowed to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by the FBI and the Texas Attorney General's Medicaid Fraud Control Unit with assistance from the Mission Police Department. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.
Pearland Man Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
HOUSTON – Travis James McReynolds, 33, of Pearland, has entered a plea of guilty to production and distribution of child pornography, announced United States Attorney Kenneth Magidson.
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 her genitals and anus. 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 entered the plea before U.S. Magistrate Judge Froeschner today. Sentencing is set for Jan. 22, 2013, before U.S. District Judge Gregg Costa, at which time McReynolds faces a minimum of 15 and up to 30 years imprisonment for production as well as up to 20 years on the distribution charge. He also faces a potential fine of $250,000 and up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. McReynolds will remain in custody pending that hearing.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."
Two Weslaco Residents Arrested for Trafficking MarijuanaRead the Press Release
LAREDO, Texas – An indictment has been partially unsealed following the arrest of Santiago Martinez, 37, and Casimiro Bautista, 38, alleging their involvement in a conspiracy to possess with the intent to distribute marijuana, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal Oct. 16, 2013, and partially unsealed upon the arrests of the Weslaco residents today. It remains sealed as to those charged but not as yet in custody.
The two men are expected to make an initial appearance before U.S. Magistrate Judge Peter M. Ormsby tomorrow morning.
The indictment alleges Martinez and Bautista conspired to transport 1,000 kilograms or more of marijuana since July 2001. Specifically, the indictment alleges Martinez and Bautista acted as leaders and organizers within a drug organization in South Texas who arranged for the purchase of marijuana and transportation from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
The allegations further contend that this organization packaged, wrapped and weighed marijuana prior to transportation north. The organization allegedly concealed the marijuana in semi-tractor trailers among legitimate loads of goods, in hidden compartments in “low boy” trailers and in hidden lead-lined aftermarket compartments in recreational camping vehicles. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas, according to the indictment. The proceeds were allegedly placed in hidden compartments in tractor trailers or recreational camping vehicle or were deposited in bank accounts.
If convicted, the two face a mandatory minimum sentence of 10 years and a maximum of life in prison and a possible $10 million fine. The government is also seeking a money judgment for nearly $12 million, alleged proceeds from the criminal activity.
The case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Former Police Officer Sent to Federal PrisonRead the Press Release
HOUSTON - Michael Mares, a former officer with the Onalaska Police Department, has been ordered to federal prison for providing firearms to a convicted felon, announced United States Attorney Kenneth Magidson. Mares, 51, pleaded guilty, admitting he knowingly sold a firearm and various police items to a convicted felon who was planning a home invasion in which he and others planned on impersonating police officers.
Today, U.S. District Judge Nancy Atlas, ordered Mares serve a term of 37 months in federal prison. At the hearing, the court admonished Mares that when police officers arrive at a home, citizens rely on them actually being police officers and that Mares helped others who intended to abuse that trust to commit crimes.On Aug. 30, 2011, a FBI confidential source met with Mares and provided him with $1000 to purchase a firearm, five police t-shirts and police strobe lights. The source told Mares that he was a convicted felon. The source further noted he and others were going to conduct a home invasion of a narcotics trafficker and intended to impersonate police officers in order to gain control of the residence. Mares agreed to purchase the items for him.
The investigation culminated in the indictment of 25 members and associates of the Texas Mexican Mafia charged with drug trafficking, various firearms offenses and violent crimes in aid of racketeering.
According to the indictment, the TMM formed in the early 1980s in the Texas Department of Criminal Justice. The defendants conspired with one another and others from 2008 through October 2012 to procure illegal drugs and distribute 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 as well as detonation cord to FBI sources.
Mares 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 four-year investigation was conducted by the FBI, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting.
Former Cameron County Woman Convicted of Voter FraudRead the Press Release
BROWNSVILLE, Texas – Sonia Leticia Solis, 55, has entered a plea of guilty to voting more than once in connection with the 2012 primary runoff election held in Cameron County on July 31, 2012, announced United States Attorney Kenneth Magidson.
The election included candidates running for the U.S. House of Representatives.
Solis resided in Brownsville during the election and obtained multiple mail-in ballots by forging applications on behalf of individuals she represented to be disabled.
U.S. District Judge Hilda Tagle, who accepted the guilty plea, has set sentencing for Feb. 5, 2014, at which time Solis faces a possible federal prison sentence of up to five years and a maximum $10,000 fine.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Bill Hagen.
Local Businessman Convicted of Transporting and Sexually Assaulting Female EmployeesRead the Press Release
HOUSTON – Henri De Sola Morris, 66, president and chief executive officer of Solid Software Solutions LLC, which does business as Edible Software Inc., has been convicted on five counts of transportation, announced United States Attorney Kenneth Magidson.
Morris, a naturalized U.S. citizen residing in Houston, admitted that between February 2010 and February 2012, he traveled in interstate commerce and committed, and attempted to commit, the drug-facilitated sexual assaults of several women. Three of the women were present in the courtroom today as he acknowledged his guilt.
According to the plea agreement, five women relayed similar experiences of being in compromising situations with Morris after he provided each woman with a drugged alcoholic beverage he had prepared. Each woman reported instances of memory loss that followed the encounter consistent with being administered drugs commonly used in drug facilitated sexual assault. The women also reported unwanted contact with Morris and, due to their impairment, were unable to defend themselves against him. One woman described how she knew what was happening, but had lost physical control of her body and could not stop Morris from even undressing her.
The women all worked for Morris at one time and had taken business trips with him at his request to various states, including New York, New Jersey and Pennsylvania. The plea agreement indicates that on those trips, Morris gave the women drugged alcoholic drinks and later gained access to the women’s rooms and engaged in unwanted sexual contact while they were incapacitated.
In one instance, a woman attempted to dilute the drink Morris gave her using a bottle of soda. However, shortly after consuming only part of the beverage, she already felt intoxicated. She later awoke in her hotel room and heard a “click.” At that time, she saw Morris standing over her naked body and taking pictures with his cell phone. She also had scratches on each of her hips and bruises on her arm. During a later conversation with the woman, Morris admitted he was “lonely.”
Knowing he was about to leave for another trip with a female employee, the FBI obtained a search warrant which was executed at Bush Intercontinental Airport as he was headed out of town. The search resulted in the discovery of drugs, some of which were later identified as benzodiazipams, that a toxicologist has indicated can cause physical impairment and memory loss especially when mixed with alcohol. The toxicologist reviewed the statements of the women and found their experiences to be consistent with someone ingesting these drugs with alcohol. Viagra and Cialis, drugs commonly used for erectile dysfunction, were also found during the search.
At the time of the search, photos of the woman he previously photographed were recovered which corresponded to the dates of her travel with Morris.
Each count of transportation carries as punishment a maximum of 10 years in prison and a possible maximum $250,000 fine. Morris will also have to register as a sex offender. U.S. District Judge Melinda Harmon, who accepted the guilty plea, has set sentencing for Feb. 7, 2014. Morris was permitted to remain on bond pending that hearing.
The case was investigated by the FBI – Houston Division Violent Crime Task Force, comprised of agents and officers from the FBI, Houston Police Department and the Harris County Sheriff’s Office, with the assistance for the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Sherri Zack and John Jocher.
Houston Couple Sentenced to Federal Prison for SBA Loan FraudRead the Press Release
HOUSTON – Mohammad Qureshi, 59, of Houston and South Dakota, and Fouzia Qureshi, 59, of Houston, have been ordered to prison following their convictions of conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson. The pair pleaded guilty Aug. 9, 2013.
Today, U.S. District Court Judge Melinda Harmon, who accepted the pleas, handed Mohammad and Fouzia Qureshi a sentence of 12 months and a day in federal prison. A money judgment of $281,672.90 for restitution was imposed as a part of the sentence, of which more than $151,200 has been paid thus far.
The conspiracy began in July 2007 when the couple agreed to buy the Cullen Food Mart for $500,000. The majority of that amount - $420,000 - was financed through Main Street Lender, a Small Business Administration (SBA) guaranteed loan lender. The Qureshis signed as guarantors for the loan and provided documents and information that was false and misleading as to their assets and liabilities. As part of the loan program, the pair were to pay the seller a “cash injection” of $145,000 which was to come from existing funds. However, instead of using such existing funds, the Qureshis in fact used monies from another undisclosed line of credit, in contrast to SBA program rules.
After several years, the Qureshis defaulted on the loan and the bank and the SBA incurred a loss of more than $281,000.
Previously released on bond, both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by SBA-Office of Inspector General and is being prosecuted by Assistant United States Attorney Martha Minnis.
25 Sentenced in Operation Prison CellRead the Press Release
CORPUS CHRISTI, Texas – 14 former Texas Department of Criminal Justice (TDCJ) correction officers and 11 others have been ordered to federal prison following their convictions related to a large-scale racketeering case involving the McConnell Unit in Beeville, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston.
“’Operation Prison Cell’ is a very appropriate name for this investigation in that it describes where those responsible for the corruption, trafficking and violence uncovered in this case will spend a considerable portion of the rest of their lives,” said Moskowitz. “Unfortunately, while we expect convicted criminals to act like criminals, we will not tolerate those entrusted to serve the public to do the same, and these sentences send an unmistakable message to both the corrupted and their corruptors that we will catch you and punish you for your crimes.”
With the exception of Juan Ledezma, who was convicted following a two-day trial, 28 others pleaded guilty to varying counts of racketeering or other charges. U.S. District Judge Hayden Head, who accepted the guilty pleas and presided over the trial, handed down the sentences against 25 of those convicted from Tuesday through today. Four others will be sentenced at a later date.
Former McConnell Unit guards Stephanie Deming, 24, Lela Ysolde Hinojosa, 52, and Arturo Salas, 23, all of Beeville, Christy Nesloney, 27, of Cuero, James Randal Standlea, 25, of Mathis, Desiree Silguero, 43, of McAllen, Emmanuel Cotto, 32, of San Antonio, Megan Brook Morales, 24, of Bulverde, Lakeisha Jeanette Reid, 25, of Austin, Jaime Jorge Garza, 38, of Santa Elena, and Oscar Juraidini, 25, of Brownsville, were all convicted of one count of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), as was contract mental health professional Kimberly Koenig, 32, of Victoria. Nesloney was sentenced today to 28 months in federal prison, while Deming received 27 months, while Reid received a sentence of 24 months in federal prison, while Salas and Juraidini will each serve 22 months. Hinojosa and Morales each received 21-month terms of incarceration, while Garza will be in prison for 15 months. Silguero and Cotto will serve five months to be immediately followed by another five months on home confinement. Standlea and Koenig will be on probation for three years.
Other McConnell Unit Guards Jamar Tremayne Green 30, of Refugio, Casey Simmons, 25, of Kenedy, and Justin Leonard, 24, of Cypress, were convicted of conspiracy to possess with the intent to distribute ecstasy, marijuana and cocaine, respectively. Simmons was sentenced to three years of probation, while Green and Leonard will serve five months in prison plus five months of home confinement.
Seven of the 10 individuals considered “facilitators” in the case were also sentenced today. Yvonne Sandoval, 37, of Corpus Christi, Maria Fernanda Hidalgo, 32, of McAllen, and Lindsey Elaine Savage, 30, of Copperas Cove, were all convicted of RICO and received sentences of 18 months, 12 months plus one day, and 38 months, respectively. Melissa Lozano, 29, of San Antonio, was also convicted on the RICO count and will be sentenced Nov. 25, 2013. The six other facilitators pleaded guilty to one count of money laundering. Juanita Beltran Mendez, 50, of Bishop, will be on probation for five years, while Nancy Star Onega, 27, and Donna Sorise, 57, both of Hialeah, Fla., and Maria Rose Rodriguez, 35, of Alamo, will serve sentences of 60, 71 and 66 months, respectively. Craig Owens, 29, of Kileen, and Karla Sanchez, 26, of Houston, will be sentenced Nov. 25, 2013.
The final four charged in the case – Aaron Trevino, 37, of Lockhart, Christopher Karl Owens, 33, of Killeen, Christopher Smith, 28, of Chester, and Ledezma, 40, of Brownsville – were considered “inmates” in the overall scheme and were at one time or another in TDCJ custody during the conspiracy. Trevino pleaded guilty to the RICO count and received a total of 198 months in federal prison, while Smith entered a plea to money laundering and received time served, approximately 10 months of incarceration. Ledezma, who was found guilty by a Corpus Christi federal jury of conspiracy to possess with the intent to distribute methamphetamine, cocaine and marijuana, will serve a total of 360 months in federal prison for the three counts of conviction. Christopher Owens will be sentenced in January 2014.
There are still two fugitives in the case and warrants remain outstanding for their arrests.
The arrests came as a result of a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
Correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were then sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison.
During Ledezma’s trial, the jury heard testimony that Ledezma acted as an intermediary between drug traffickers in south Texas and Mexico. He had connections to drug suppliers and, utilizing the illegally smuggled cell phones, coordinated with other prisoners to organize drug deals inside and outside the prison. Jurors heard that prisoners had made phone calls to Ledezma while in the McConnell Unit. In these calls, Ledezma agreed to help arrange for six pounds of methamphetamine to be purchased in Corpus Christi and distributed in Arkansas. The buyers of the methamphetamine were to pay more than $20,000 per pound of the drug.
The overall investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of the illegal cell phones.
A subsequent investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-Office of Inspector General, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
Local Man Gets 20 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Charlie Hernandez, 36, of Corpus Christi, has been ordered to serve 240 months in federal prison following his conviction of sexual exploitation of a child, announced United States Attorney Kenneth Magidson. He pleaded guilty Aug. 1, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Hernandez the 20-year-term to be immediately followed by 10 years of supervised release. The court heard from the victim’s mother who described the destruction that the defendant’s crimes have wrought upon her family. The mother explained how the her child wanted to be at the hearing to speak to the court but was too emotionally distraught to appear. She spoke of the negative effects on the emotional and financial well-being of herself, her victimized child and other members of her family. The mother explained that in addition to the psychological damage Hernandez has caused, she had also suffered a heart attack since learning of the crime, despite being in good health and only 34 years of age. The victim’s mother urged the court to hold Hernandez accountable for his crime and all of the pain it has caused. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Hernandez in the future.
On May 10, 2013, an officer with the Corpus Christi Police Department (CCPD) responded to a sexual assault call, at which time he spoke to the victim, a juvenile female relative of Hernandez. She stated that he had been sexually abusing her for four years, which had progressed from peeping to rape.
Hernandez was arrested and admitted to the abuse as well as creating sexually explicit photographs of his victim with a cell phone. The cell phone was recovered during a search of his office, which led to the discovery of some of the sexually explicit images.
Hernandez has been in custody since his arrest on June 24, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by CCPD- Internet Crimes Against Children Task Force and the FBI and 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 Truck Driver Sentenced to 120 Months for Drug Trafficking with Wooden-HampersRead the Press Release
LAREDO, Texas – Mexican national Moises Rodriguez-Ortega, 36, has been ordered to federal prison for 10 years for possessing with intent to distribute almost 10 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. Rodriguez-Ortega pleaded guilty July 8, 2013.
Today, U.S. District Judge Diana Saldana handed Rodriguez-Ortega the total 120-month-term of federal imprisonment. As a non-U.S. citizen, he is expected to face deportation proceedings following release from prison.
On May 21, 2013, Rodriguez-Ortega was arrested at the Columbia Solidarity International Bridge in Laredo after applying for admission into the United States. He was driving a tractor-trailer, and upon inspection by United States Customs and Border Protection (CBP) agents, was referred to secondary inspection for further investigation.
CBP agents discovered methamphetamine inside his tractor cab. Agents had located wooden-wicker hampers and drug dogs alerted to the presence of narcotics. Upon X-ray examination of these hampers, CBP agents discovered and extracted approximately 9.4 kilograms of methamphetamine from the wooden frames. Upon questioning, Rodriguez-Ortega admitted to smuggling the narcotics into the United Stated with the intention to traffic and sell these drugs throughout the United States.
The case was investigated by Homeland Security Investigations (HSI) and CBP. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting.
Cartel Money Laundering Cell ArrestedRead the Press Release
BROWNSVILLE, Texas – Law enforcement officials have arrested a total of nine individuals alleging they violated the laws of the United States by moving money undetected through the United States banking system from Florida to Texas into Mexico, announced United States Attorney Kenneth Magidson and Janice Ayala, special agent in charge of Homeland Security Investigations (HSI), San Antonio.
Those arrested include Oscar J. Aguilar, 37, Yurixi Guadalupe Vega-Martinez, 29, Bea Marie Fairbanks, 24, Mayte Ayde Diaz, 39, Lorena M. Moreno-Martinez, 39, Teodosa Gonzalez-Rodriguez, 32, and Yezenia V. Campos-Silva, 31, all of Brownsville, and Yamileth Sinai Carballo, 20, and Miguel Jonathan Pereira, 21, both of Bayview. They are expected to make their initial appearance before U.S. Magistrate Judge Ronald G. Morgan tomorrow morning.
Jose M. Rivera, 26, of Brownsville, is also charged but not as yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 1-866-DHS-2ICE (1-866-347-2423).
The 21-count indictment was returned under seal Oct. 22, 2013, and unsealed upon the arrests today.
“Those individuals arrested today are members of a money laundering organization that allegedly orchestrated the movement of millions of dollars in illicit proceeds in an attempt to circumvent law enforcement and reap their illicit gains abroad,” said Ayala. “HSI is dedicated to dismantling suspected transnational criminal organizations, seizing their assets and severing their financial life line.”
The alleged money laundering cell opened bank accounts at Bank of America in Brownsville and then sent their account numbers to unknown individuals in Florida, according to allegations. There, the unknown individuals would allegedly deposit cash in amounts under the $10,000 reporting requirement for cash transactions. The indictment alleges that on the same day, defendants in Brownsville would then withdraw the cash in amounts under the $10,000 reporting requirement. They allegedly kept a portion of the cash as their payment and then gave the bulk of the money to another individual for it to be walked across the border at ports of entry in Brownsville. The scheme allegedly occurred from on or about November 2008 through December 2012.
The indictment indicates the money was proceeds of illegal narcotics sales belonging Mexican drug trafficking organizations including the Gulf Cartel.
All are charged with one count of conspiracy and one count of operation of an unlicensed money transmitting business which carries as possible punishment a maximum five-year-term of imprisonment and $250,000 fine on each count. All are also charged with varying counts of structuring withdrawals at a financial institution which also carries the same five years and $250,000 fine on each charge, upon conviction. However, if is determined the financial scheme involved more than $100,000, then the punishment is up to 10 years imprisonment and the same $250,000 fine. Aguilar, Diaz and Moreno-Martinez are also charge with conspiracy to commit international money laundering and further face 20 years in federal prison and a $500,000 fine.
The indictment also includes a notice of forfeiture against the defendants for $1,893,170, alleged proceeds from the criminal activity.
Today’s arrests came as a result of a year-long investigation by HSI, Financial Crimes Group with the assistance of U.S. Marshals Service, Border Patrol, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office and the Brownsville Police Department. The case is being prosecuted by Assistant United States Attorney Karen Betancourt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON - Francisco Chao-Martinez, 31, and five others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced United States Attorney Kenneth Magidson. Mexican National Chao-Martinez pleaded guilty to conspiracy to transport aliens as did Juan Carlos Solis-Sanchez, 31, of Mexico, Daniel Sanchez-Cabarello, 31, of El Salvador, and Edgar Carranza-Espinal, 36, and Carlos Benegas-Benetiz, 36, both of Honduras. A sixth defendant, Fredis Sanchez-Martinez, 22, of Honduras, was convicted of conspiracy to harbor aliens illegal present in the United States
Late yesterday, U.S. District Judge Sim Lake, who accepted all the guilty pleas, handed Chao-Martinez a 57-month sentence. In handing down the sentence, Judge Lake found Chao-Martinez was the organizer and leader of the two-year conspiracy involving a conservative estimate of 500 undocumented aliens.
Solis-Sanchez was sentenced Tuesday of this week to a term of 27 months in prison, while Sanchez-Cabarello and Benegas-Benetiz received respective sentences of 18 and four months. Sanchez-Martinez was also sentenced Tuesday to a 12-month and one day term of imprisonment. Carranza-Espinal will be sentenced today at 3:00 p.m.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in January 2013 after federal agents received information that Chao-Martinez was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In June 2013, Chao-Martinez, Solis-Sanchez and Sanchez-Caballero were arrested in connection with arranging the transportation of 14 aliens illegally present in the United States. Later, agents executed a search warrant at a residence in Houston which was being used by Chao-Martinez and his conspirators to stash aliens awaiting transportation. Agents encountered 10 additional aliens illegally present in the United States. Agents also encountered Sanchez-Martinez, Cararranza-Espinal and Benegas-Benetiz, all of whom were determined to be employees of Chao-Martinez involved in the alien smuggling conspiracy.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Former Employee Sentenced to Federal Prison for Stealing from BankRead the Press Release
McALLEN, Texas – Armando Ruben Aleman, 28, of Weslaco, has been ordered to federal prison following his conviction of one count of embezzlement, announced United States Attorney Kenneth Magidson. Aleman pleaded guilty March 27, 2013, admitting he stole more than $190,000 from the bank account of a deceased customer of BBVA Compass Bank in Mission while Aleman was an employee at that bank.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, sentenced Aleman to 12 months in federal prison without parole to be followed by two years of supervised release. At the hearing, testimony was presented by the heir to the deceased bank customer, who was entitled to receive the money in the account from which Aleman stole the funds. The heir told the court that while he harbored no resentment toward Aleman, the defendant had brought the consequences of his crime upon himself through his actions. Judge Alvarez noted that while the bank had paid the heir the money owed to him, the bank had not been able to recoup all of the lost amount from Aleman. Therefore, the court ordered Aleman to pay the remaining, unrecovered $61,772 in restitution to the bank.
In determining the sentence, the court considered that Aleman had used another bank customer’s identifying information to open a bank account without authorization in order to hide the stolen funds. The court noted that the customer, through no fault of his own, was experiencing difficulties opening bank accounts because of the account Aleman had fraudulently opened using that customer’s name.
At the time of the guilty plea, Aleman admitted that during more than half of last year, while he was employed at BBVA Compass Bank, he emptied a deceased client’s account before the executor of the client’s will could retrieve the funds.
Aleman withdrew cash and forged cashier’s checks in the deceased client’s name in order to steal the funds from his account. Then, Aleman transferred the funds into an account he opened at Chase Bank using a stolen identity from another person. Aleman managed to spend and transfer to himself more than $70,000 from the fraudulently-opened Chase account before his scheme was discovered and the bank froze the account.
Aleman was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Secret Service with the assistance of the FBI. Assistant U.S. Attorney Christopher Sully prosecuted the case.
Eight Head to Federal Prison for Violent Robberies of Area BanksRead the Press Release
Sentences Range from 60 to 525 months in Prison
HOUSTON – Eight men have been ordered to prison on charges related to the armed bank robberies of several area financial institutions, including one involving the shooting of an off-duty Harris County Sheriff’s Office (HCSO) sergeant, announced United States Attorney Kenneth Magidson.
Shelton McGowen, 24, opted to plead guilty before trial was set to begin on Tuesday, May 28, 2013. During jury selection the next day, seven more entered guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 31, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. The final two – Calvin Wesley Gray, 34, pleaded guilty the morning of opening statements, while Dwayne Holmes, 34, entered his guilty plea following the government’s opening remarks and with a witness about to take the stand.
Today, U.S. District Judge David Hittner sentenced Mosley, identified as the shooter of the off-duty officer, to a total term of 525 months in prison. He was convicted of conspiracy, three counts of bank robbery and discharging a firearm during commission of a violent crime. Simmons, also convicted on the same five counts as Mosely, was ordered to serve a 480-month term of imprisonment. Tarpley and Ahmad, both convicted of conspiracy as well as three counts of bank robbery and brandishing a firearm during commission of a violent crime, were sentenced to respective terms of 480 and 444 months in prison, while Gray, convicted of conspiracy and two counts of bank robbery will serve 300 months. McGowen, Jackson and Williams were each convicted of one count of conspiracy, and will serve 60 months in federal prison. The sentencings of Holmes and Harris were continued to November.
At the hearing today, additional evidence and testimony was presented including statements from the wounded officer and another victim. The officer commented upon his actions and that he would not change anything he did that day. He testified that he saw that something was going to happen and that it was his obligation as a law enforcement officer to step up and act. He further noted the effect the shooting has had on him, his family and well as the sheriff and his family.
An 11th defendant, Anthony Demonde Nowlin, 24, had previously pleaded guilty earlier this year to bank robbery and conspiracy to interfere with commerce through bank robbery. He is set for sentencing on Monday.
The defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011.
According to court records, the defendants would “case” banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, which were committed on weekday mornings between 9:00 a.m. and noon, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees. The men would also use stolen vehicles during the robberies to elude law enforcement.
During the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land, the robbers shot the off-duty sergeant who was in the bank on personal business.
Tarpley, Nowlin, Ahmad, Mosley, McGowen and Williams were arrested on the morning of Sept. 16, 2011, on Interstate 45 North after several were observed both driving and going in and out of a stolen Dodge Intrepid. Officers later observed McGowen enter the Associated Credit Union for the purpose of casing it for a robbery. Law enforcement officers observed several suspicious vehicles one with paper plates near the Kroger that housed the Associated Credit Union on the day of their Sept. 16 arrest. Due to previous robberies of groceries store banks and credit unions, law enforcement had reason to believe that the defendants were about to commit an armed bank robbery.
Further investigation led to the identification of the additional five defendants involved in the scheme resulting in the federal indictment for multiple bank robberies in the greater Houston area. After the dismantling of this 11-man crew, no further violent takeover style bank robberies occurred inside of bank grocery stores.
All men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by the FBI Bank Robbery Task Force which is comprised of personnel from the FBI, Houston Police Department and HCSO with special assistance from the Fort Bend County Sheriff’s Office and the Baytown and Pasadena Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.
McAllen Area Ambulance Company Owner and Former Biller Indicted on Multiple Health Care CrimesRead the Press Release
McALLEN, Texas ‐ Frank Gonzalez, 30, and Graciela Escamilla, 51, both of Mission, have been charged in a federal indictment for their alleged roles in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
The indictment, returned Tuesday, Oct. 15, 2013, was unsealed following their arrests on Friday, Oct. 18, at which time they made their initial appearance in federal court. Today, both appeared for an arraignment and detention hearing and were permitted release upon posting a $50,000 bond. Trial is set for Dec. 3, 2013.
Gonzalez, the owner of River Valley Transport (dba Med-Alert EMS), and Escamilla, the owner of RioPlex Billing Solution, are both charged with one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of aggravated identity theft. Gonzalez is also charged with one count of mail fraud.
The indictment alleges that from June 2007 to February 2011, Gonzalez engaged in and directed a scheme to submit false and fraudulent claims to Medicare and Texas Medicaid for ambulance transportation services in the McAllen area that were not provided. Escamilla, acting as a biller for Gonzalez and Med-Alert EMS, allegedly participated in the scheme to defraud and conspired with and aided Gonzalez in the submission of false and fraudulent billings and theft of the identity of a beneficiary.
According to allegations in the indictment, from June 2007 to February 2011, Gonzalez and Escamilla sent or caused others to send approximately 1,524 false and fraudulent claims totaling approximately $638,090 to Medicare and Texas Medicaid for ambulance transportation services of dialysis patients allegedly provided to Medicare and Texas Medicaid beneficiaries. The billings were allegedly false and fraudulent because none of the patients were transported by ambulance as claimed. The indictment further alleges that Medicare and Texas Medicaid paid out more than $335,000 on the false and fraudulent claims.
The indictment also alleges that to conceal their fraud, phony ambulance transportation records were created, signatures of individuals were forged on documents and Gonzalez and Escamilla illegally used the identity of a patient on their unlawful billings.
Conspiracy to commit health care fraud and each of the seven counts of health care fraud carry a maximum punishment of 10 years in federal prison, while mail fraud carries a possible 20-year sentence. Those charges also carry as possible punishment a $250,000 fine. If convicted of aggravated identity theft, both defendants also face 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 Attorneys Michael Day and Rex Beasley are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Former Sheriff’s Deputies Head to Federal PrisonRead the Press Release
McALLEN, Texas – Two former deputy sheriffs from Duval County have been sentenced to prison for conspiracy to distribute cocaine, announced United States Attorney Kenneth Magidson. Ruben Silva, 35, of Freer, and Victor Carrillo, 28, of Benavides, pleaded guilty Aug. 30, 2012.
Today, U.S. District Judge Micaela Alvarez sentenced Silva and Carillo to respective terms of 105 and 70 months in federal prison. They were each also ordered to serve three years of supervised release following completion of their prison terms. Silva was also ordered to pay a $5,000 fine. In handing down the sentences, the court noted their special status as police officers in uniform and carrying their duty weapons in announcing a higher sentence.
At the plea hearings, Silva admitted he conspired with Carillo, Jerry Tovar and Jose Luis Tovar to distribute 10 kilograms of cocaine which they would steal from a drug supplier. Both Silva and Carrillo participated in the conspiracy by performing a “pretend” traffic stop using their official Duval County Sheriff’s vehicles and while in uniform, making the owner of the narcotics believe law enforcement had seized the drugs. Silva received $5,000 as payment for his role in the drug distribution conspiracy and Carrillo received $1,000 from that payment. Following the “pretend” traffic stop, Jerry Tovar received approximately six kilograms of cocaine at his residence in Mission from a source working with the Drug Enforcement Administration (DEA).
During the investigation, federal and state investigative agents discovered the Tovar criminal organization, led by Jose Luis Tovar.
He was negotiating with who he believed were illegal drug traffickers to transport large amounts of narcotics, when in reality these “drug traffickers” were undercover federal agents. During the ongoing drug trafficking negotiations, Jose Luis Tovar brokered a deal for these “drug traffickers” to illegally purchase six firearms through the Tovar criminal organization. These firearms included two uzi type weapons and an assault rifle capable of accepting a 100-round magazine. Both brothers were previously convicted felons who were prohibited from possessing firearms.
Jose Luis Tovar was sentenced as head of the Tovar criminal organization brokering the gun trafficking. Jerry Tovar was sentenced for his role in gun trafficking and for a separate conspiracy to distribute more than five kilograms of cocaine. Jerry Tovar and Jose Luis Tovar, both of Mission, were sentenced in December 2012 to 210 and 135 months, respectively. Jose Luis Tovar was also ordered to pay $20,000 in fines.
Previously released on bond, Silva was taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future and Carillo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being jointly investigated by the DEA, Texas Rangers, Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. Assistant U.S. Attorney (AUSA) Jason C. Honeycutt and former Southern District of Texas AUSA Cory J.H. Crenshaw prosecuted the case.
Two Army National Guard Soldiers Plead Guilty to Schemes to Defraud U.S. Army National Guard BureauRead the Press Release
To Date, 16 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
HOUSTON – Two current U.S. Army National Guard soldiers have pleaded guilty for their role in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau.
U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Annika Chambers, 28, of Houston, pleaded guilty today to one count of conspiracy and one count of bribery. Elisha Ceja, 27, of Barboursville, W.V., previously pleaded guilty to the same charge on Oct. 1, 2013. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 16 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ceja and Chambers both admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers to falsely claim that they were responsible for referring the potential soldiers to join the Army National Guard.
As a result of these fraudulent representations, Ceja collected approximately $12,000 in fraudulent bonuses and Chambers collected approximately $17,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Ceja and Chambers are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on Dec. 19, 2013, and March 11, 2013, respectively.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section.
Huntsville Resident Convicted of Distributing Child PornographyRead the Press Release
HOUSTON – Reed Christopher LeBlanc, 20, a former resident of Huntsville, has entered a plea of guilty to distribution of child pornography, announced United States Attorney Kenneth Magidson.
The investigation started as a result of several downloads of child pornography over the Internet by a federal agent with the New York office of the FBI which were traced to a computer used by LeBlanc.
On Dec. 3, 2012, federal agents served a search warrant at LeBlanc’s Huntsville address and seized his Apple computer. A forensic exam was conducted, revealing approximately 82 images and 33 videos of child pornography.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for Jan. 14, 2014, at which time Leblanc faces at least five and up to 20 years imprisonment as well as a possible $250,000 fine. Upon completion of any prison term imposed, LeBlanc also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. He will remain in custody pending that hearing.
The charges against were the result of an investigation conducted by the FBI and officers with the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Local Men Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas– Carlos Cortinas, 40, and Mark Anthony Stokes, 35, of Three Rivers, have entered pleas of guilty to sexual exploitation of a child, announced United States Attorney Kenneth Magidson.
During the pleas today, Cortinas and Stokes admitted that on May 13, 2013, police responded to a domestic violence call in Three Rivers. Stokes, who had been stabbed and cut by his wife, told officers that his wife had injured him after she discovered nude photos of minor female relative on a flash drive.
Stokes admitted to a sexual interest in children for the past 20 years and that he and his friend, Cortinas, had a previous conversation in which both discussed their mutual sexual interest in children.
Stokes told Cortinas he had nude images of the young female, which Cortinas asked to see. Stokes then sent some of the images of the child via text message from his cell phone. Within an hour, Cortinas then sent nude images of one of his minor female relatives as well. From that day forward, Stokes and Cortinas would send each other voyeur type images of these minor children taken without the their knowledge as well as other child pornography images downloaded from the Internet. Stokes stated that Cortinas also sent nude images of another child which he had taken. State search warrants were executed on both residences which resulted in the discovery of evidence related to the child pornography production described by Stokes. Senior U.S. District Judge John D. Rainey, who accepted the guilty pleas, has set sentencing for Feb. 18, 2014, at 4:30 p.m., at which time they each face a minimum of 15 and up to 30 years imprisonment. Both have been and will remain in custody pending that hearing.
This case, prosecuted by Assistant United States Attorney Lance Duke and investigated by the FBI, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sugar Land Physician Sentenced to Federal Prison for Diagnostic Testing ScamRead the Press Release
HOUSTON – Donald Gibson II, 57, of Sugar Land, is headed to prison following his conviction of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today. Gibson entered a plea of guilty to conspiracy to commit health care fraud on April 1, 2013.
Today, U.S. District Judge Lynn H. Hughes, who accepted the guilty plea, took into consideration Gibson’s cooperation with federal authorities and handed him a sentence of 52 months in federal prison. Judge Hughes also ordered restitution in the amount of $6,943,478.87. The United States previously seized approximately $2.62 million in Gibson’s assets and froze another $505,455 Medicare was to pay to Gibson. As a result, these two amounts totaling $3,129,175 will be applied to Gibson’s restitution and subsequently returned to Medicare program.
As part of the scheme to defraud, Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number. Gibson worked in conjunction with the owners and operators of medical clinics and diagnostic testing centers in the Houston area. As part of the scheme, Medicare patients were paid to show up at the clinics for testing. Patient recruiters were also paid for recruiting and bringing patients to the clinics for the unneeded testing.
From January 2007 through January 2012, Gibson caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Gibson’s co-defendant, Sunday Joseph Edem, is scheduled to be sentenced by Judge Hughes on Nov. 18, 2013.
This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the U.S. Department of Health and Human Services – Office of Inspector General, Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case with Assistant U.S. Attorney Kristine Rollinson overseeing the asset forfeiture.
Felon in Possession of Firearm Gets More Than Eight Years in PrisonRead the Press Release
McALLEN, Texas – Four-time convicted felon Aurelio Perez-Aleman, of Roma, has been ordered to prison for possessing a firearm, United States Attorney Kenneth Magidson announced today. Perez-Aleman, 37, pleaded guilty May 30, 2013.
Today, U.S. District Judge Randy Cane sentenced Perez-Aleman to 100 months imprisonment to be followed by a three-year-term of supervised release. The sentence was enhanced due to his prior violent felonies and the high capacity magazine involved.
On Sep. 7, 2013, Perez-Aleman was discovered in his vehicle near the Rio Grande River by Border Patrol (BP) agents after illegal aliens were spotted nearby. After giving the BP agents consent to search his vehicle, a WASR 10, 7.62 mm rifle was discovered inside his vehicle. Records indicated he was a previously convicted felon, thereby prohibiting him from possessing a firearm. He has two prior felony convictions for possession of marijuana as well as aggravated robbery and assault on a public servant.
The investigation revealed Perez-Aleman had been waiting for an individual to cross the Rio Grande River so Perez-Aleman could give him the firearm.
Aurelio Perez-Aleman has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and BP. The case was prosecuted by Assistant United States Attorney Steven Schammel.
Pharr Man Handed Sentence for Involvement in Straw Purchase of FirearmsRead the Press Release
McALLEN, Texas – Christopher Bryan Santos, 21, of Pharr, has been handed a federal prison sentence for making false statements in the acquisition of firearms from Federal Firearms Licensees (FFL), commonly known as straw purchasing, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Today, U.S. District Judge Randy Crane sentenced Santos to 51 months in federal prison to be immediately followed by a two-year-term of supervised release.
In February 2011, ATF agents discovered information regarding several firearms purchases made by Santos. On March 28, 2011, and April 15, 2011, Santos purchased a total of four firearms. He admitted he provided false information on ATF forms that the firearms were purchased for himself, when he knew they were actually for another individual.
It was further determined that the firearms were being trafficked and used or possessed for another felony offense. The sentence today was further enhanced because it was determined he recruited others to make additional straw purchases.
Santos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the ATF and is being prosecuted by Assistant United States Attorney Juan Villescas.
Ex Enron Executive Indicted on Bankruptcy ChargesRead the Press Release
HOUSTON – A federal grand jury has returned a 24-count indictment against Jeffrey Adam Shankman with bankruptcy fraud and concealment of assets, announced United States Attorney Kenneth Magidson.
The indictment was returned today. Shankman is expected to turn himself in to federal authorities and make an initial appearance before a U.S. magistrate judge in the near future.
According to the indictment, Shankman engaged in a scheme to conceal assets to defraud creditors and the trustee who was appointed to collect and dispose of all Shankman’s assets in his bankruptcy estate.
A debtor is required to complete several documents to carry out the bankruptcy process, which consist of a petition which contains summary information about the debtor’s financial condition, various bankruptcy schedules and a statement of financial affairs. That statement contains, among other things, detailed information about the debtor’s assets, liabilities, recent payments to creditors, past and current income and anticipated future income. The documents are required to be signed and certified under penalty of perjury that the information contained in them is true and correct. A debtor is required to disclose all creditors to the bankruptcy court so that the court can provide notice to the creditors of the filing of the bankruptcy petition. One purpose of this requirement is to allow the creditors the opportunity to participate in the bankruptcy proceeding and protect their interests.
Shankman, 46, filed for chapter 7 bankruptcy in October 2008. The indictment alleges he concealed, transferred and sold various pieces of fine art, decorative art as well as Jewelry and other assets without the knowledge, consent and approval of the trustee or the bankruptcy court. The approximate value of the assets was $952,125, according to allegations.
Shankman was head of the Global Markets Division of Enron in 2001 before its collapse and served on the Art Committee of Enron.
In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system; the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
If convicted, he faces up to five years in federal prison and a possible $250,000 fine of on each count.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Quincy L. Ollison.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Woman Sent to Prison for College Station Area Identity TheftRead the Press Release
HOUSTON – Tiffany Margaret Taylor, 33, has been sentenced to more than four years in federal prison following her convictions of conspiracy, bank fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Keith Ellison sentenced Taylor to a 27-month-term for the conspiracy and bank fraud charges and a consecutive 24 months for aggravated identity theft for a total sentence of 51months. She was further ordered to serve a three-year-term of supervised release following completion of that prison term and to pay $21,640.40 in restitution.
The investigation began when the U.S. Postal Inspection Service (USPIS) started receiving multiple complaints from individuals residing in the College Station area regarding stolen mail, credit cards, checks and other items containing personal identifiers. Many of the credit card charges took place in College Station.
Agents were able to obtain surveillance videos and talk to eye witnesses who saw Taylor and her co-conspirator, Joshua Lee Miller, using victims’ credit cards at the Post Oak Mall in College Station. Taylor and Miller were subsequently arrested and their vehicle was searched, at which time they were found to be in possession of credit cards, fake identities, merchandise purchased with various victim’s credit cards and methamphetamine.
Miller, 32, remains in custody pending sentencing next month.
The investigation leading to the charges in this case was conducted by the USPIS. Assistant United States Attorney Julie Searle prosecuted the case.
Bank Robber Caught with Help of Crime Stoppers Tip Sent to PrisonRead the Press Release
McALLEN, Texas – Palmview resident Erick Lee Chiu, 22, has been ordered to federal prison following his conviction of robbing the International Bank of Commerce in McAllen, announced United States Attorney Kenneth Magidson. Chiu entered a plea of guilty March 5, 2013.
Today, Chief United States District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Chiu a sentence of 92 months and was ordered to pay restitution. At the hearing, the IBC Bank representative advised that the teller from whom Chiu demanded the money was so traumatized from the robbery that she had to leave her position with the bank. Chiu will be required to serve a term of three years of supervised release following completion of the prison term.
On Sept. 16, 2012, Chiu, trying to conceal his identity, walked into the International Bank of Commerce wearing a wig and handed the teller a note demanding money. The note threatened that he had a gun, but that no one would be hurt as long as they did not call the police. Bank tellers handed Chiu the money and he fled the bank before law enforcement arrived.
Through a McAllen Crime Stoppers Tip the following day, police were able to identify Chiu as the bank robber. He was subsequently arrested and the money was recovered.
He has been in custody since Nov. 17, 2012, and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated the case along with the McAllen Police Department. Assistant U.S. Attorney Kristen J. Rees is prosecuting the case.
Attempted Robbery of Traveling Jewelry Salesman Results in Significant Prison TimeRead the Press Release
HOUSTON – A Colombian national claiming the name Santos Diaz-Soto, 27, been ordered to federal prison for 21 years for his involvement in the attempted robbery of a jewelry salesman and his guard, announced United States Attorney Kenneth Magidson. Diaz-Soto, who resided in Houston and Atlanta, Ga., entered a plea of guilty April 5, 2013, to conspiracy, interference of commerce by robbery and brandishing of a firearm in furtherance of a violent crime.
Today, U.S. District Judge Melinda Harmon handed him a total sentence of 252 months in federal prison - 168 months for the conspiracy and robbery charges and a consecutive 84 months for the use of the firearm. At the hearing today, additional testimony was presented including the fact that he was in fact a Colombian national with several aliases such as Jason Lerma-Mejia, Juan Carlos-Mejia, Christian Jolian Morales, Luis Angel and many more. In handing down the sentence, Judge Harmon noted this was a sophisticated robbery of a traveling jeweler, that he was in fact a leader/organizer and that his actions mimicked another robbery he had previously committed. The court also noted that he had obstructed justice by claiming he was shot by others when, in fact, he was shot by the salesman’s guard, by feeling to Mexico after initial apprehension as well as falsely identifying himself as a Puerto-Rican national known as Santos Diaz-Soto.
Further testimony today revealed that his name had come up on similar investigations around the country. Diaz-Soto was further ordered to pay in restitution and will serve three years of supervised release.
The victimized guard also provided testimony today as to the impact the robbery has had on his life, the pain and discomfort he had and is still experiencing, including daily reminders about the attack, as well as the terror his wife felt when she heard about the incident.
According to court records, in the fall of 2009, a jewelry salesman traveled from Louisiana to Houston to meet with local jewelers. On Sept. 11, 2009, he and his guard - an off-duty Texas Alcohol and Beverage Commission (TABC) officer - were approached in their car by two Hispanic males – Diaz-Soto and Gabriel Ocampo-Mayorquin, 28, of Colombia. Diaz-Soto had a firearm and Ocampo-Mayorquin had a glass punch which was used to break a window. The guard fired several shots and wounded both men. During the robbery, Hugo Ortiz, 29, Juan Carlos Valencia, 30, and Osorio Pemberthy, 26, all also of Colombia, acted as lookouts and get-away drivers.
Immediately after the robbery, witnesses observed three vehicles race into the back parking lot of an apartment complex located across the street from the robbery scene. Several men were seen entering and exiting the vehicles and removing temporary license plates from at least one vehicle. Through further investigation, including a visit to an area hospital, task force officers ultimately identified all five charged in the case.
Ortiz, Valencia and Pemberthy all pleaded guilty and were sentenced to federal prison.
Ocampo-Mayorquin is a fugitive and a warrant remains outstanding for his arrest. Anyone having information regarding his whereabouts is urged to contact the Houston office of the FBI at (713) 693-5000 or their local FBI office.
Diaz-Soto will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by members of the FBI’s Houston Violent Crimes Task Force which includes officers of the Houston Police Department. The Department of Homeland Security – Immigration and Customs Enforcement also provided invaluable assistance. The case is being prosecuted by Assistant U.S. Attorneys Kebharu H. Smith, Suzanne Elmilady and Joe Magliolo.
Romanian Man Convicted on 33 Counts of Wire FraudRead the Press Release
VICTORIA, Texas - A federal jury sitting in Victoria has convicted Romanian national Doru Gabriel Trifu, 28, on all 33 counts as charged in an Internet fraud scheme, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late yesterday following a four-day trial.
Trifu, a Romanian non-immigrant residing in Orangevale, Calif., was part of the fraudulent scheme in which consumer items were listed for sale over the Internet. Individuals attempting to make purchases were instructed to send money via MoneyGram to an escrow agent who would accept the funds, complete the transaction and deliver the item. However, after the buyer electronically transferred the money, the item would never be delivered.
During trial, the government presented videos and numerous surveillance photographs taken from Wal-Mart stores across Texas, Mississippi and Alabama where the fraudulent transactions occurred.
Testimony was provided by several victims who described how they were told they were purchasing the item from a U.S. serviceman who was about to deploy to the Middle East and were told to use a third party broker to complete the transaction.
An agent with Homeland Security Investigations (HSI) also testified and identified a pattern of approximately 230 fraudulent transactions between March 2011 and February 2012 using two fake U.S. passport numbers. Over the course of the scheme, the amount of identified fraud totaled more than $567,000.
Senior U.S. District Judge John Rainey, who presided over the trial, has set sentencing for Dec. 2, 2013, at which time Trifu faces a maximum of 20 years of imprisonment and a possible $250,000 fine on each count. He has been in custody since his November arrest in California where he will remain pending that hearing.The case was investigated by HSI. Assistant U.S. Attorney Lance Watt is prosecuting.
Aryan Brotherhood of Texas Gang Leader Sentenced for Role in Racketeering ConspiracyRead the Press Release
HOUSTON – A high-ranking member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 360 months in prison for his role in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Charles Lee Roberts, aka “Jive,” 68, of Beaumont, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Roberts will serve five years of supervised release.On May 10, 2013, Roberts pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Roberts admitted to being a senior leader of the ABT, trafficking in methamphetamine and heroin, and being involved in several homicides on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Roberts is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Jury Convicts Rio Grande City Woman in Marijuana CaseRead the Press Release
McALLEN, Texas – Celia Raquel Zuniga, 45, of Rio Grande City, has been convicted of conspiracy to possess with intent to distribute and possession with intent to distribute marijuana, announced United States Attorney Kenneth Magidson. The McAllen federal jury convicted Zuniga following a two-day trial and approximately two hours of deliberations.
During trial, Starr County sheriff’s deputies testified that on Dec. 6, 2012, they observed three vehicles driving in tandem going east on Expressway 83 near the Starr County and Hidalgo County line. They then observed the middle vehicle change lanes without signaling. Deputies conducted a traffic stop and identified Zuniga as the driver. At that time, deputies noticed a strong odor of marijuana emitting from the vehicle and a canine subsequently alerted to the presence of narcotics.
Initially, Zuniga lied to deputies and denied there was anything illegal in her vehicle. However, after stepping out of her vehicle and when asked a second time, Zuniga admitted there was something illegal inside. Deputies then recovered 24 bundles of marijuana, weighing approximately 243 kilograms within the car.
In her defense, Zuniga testified she had been kidnaped by multiple men while she was driving to a friend’s house. She claimed they took her to a cemetery while bundles of marijuana were loaded into her vehicle. She further testified they told her she would need to drive the vehicle to McAllen or else something would happen to her family.
The jury was not convinced of Zuniga’s claim of duress and ultimately found her guilty as charged.
U.S. District Judge Micaela Alvarez, who presided over the trial, has set sentencing for Dec. 12, 2013, at which time she faces a minimum of five and up to 40 years in federal prison.
Previously released on bond, Zuniga was taken into custody following the return of the verdict where she will remain pending sentencing.
The case was investigated by Homeland Security Investigations with the assistance of the Starr County Sheriff’s Office. Assistant United States Attorney Kimberly Ann Leo is prosecuting.
Donna Man Sentenced for “Lasering” Customs and Border Protection HelicopterRead the Press Release
McALLEN, Texas – Margarito Tristan III, 28, of Donna, has been ordered to federal prison for aiming a laser at a Customs and Border Protection (CBP) helicopter, announced United States Attorney Kenneth Magidson. Tristan pleaded guilty July 1, 2013.
Today, U.S. District Judge Micaela Alvarez ordered him to prison for a term of 18 months to be immediately followed by a two-year-term of supervised release.
On March 7, 2013, CBP Air and Marine offices were conducting a night training operation in CBP helicopter, designated Omaha 26A. At approximately 10:20 p.m., while conducting a training flight near Weslaco, the pilots were illuminated by a green laser at which time their eyes were irradiated by the laser causing them disorientation.
After altering course, the aircrew was able to detect a vehicle which was the source of the laser by using their night vision goggles. The aircrew then directed law enforcement officers on the ground to the vehicle and they subsequently conducted a traffic stop. A green laser was recovered from the vehicle and Tristan admitted to using it to illuminate the helicopter.
During the sentencing hearing today, the court cited its concern, not only for the lives of the pilots, but also the lives of those on the ground should the helicopter have gone down in formulating the sentence for this first-time offender.
Tristan was initially permitted release upon posting bond. However, he has not yet been able to do so and he remains in custody where he has been since his arrest.
The investigation was conducted by the FBI, Customs and Border Protection, Texas Department of Public Safety, Hidalgo County Sheriff’s Department and the Donna Police Department. Assistant United States Attorney Steven Schammel is prosecuting.
Conroe Man Gets Hefty Sentence for Interstate Transportation of A MinorRead the Press Release
HOUSTON – Jacob Daniel West, 34, has been ordered to prison for 13 years following his conviction of transporting a minor with the intent to engage in sexual activity, announced United States Attorney Kenneth Magidson. West pleaded guilty July 11, 2013.
U.S. District Judge Sim Lake, who accepted the plea, heard a statement written by the victim’s grandmother and handed West a sentence of 156 months in federal prison to be followed by 15 years of supervised release. West will also be ordered to register as a sex offender.
West travelled with the 14-year-old minor female from Texas through several states over the course of approximately a week in January 2013. They travelled together through Oklahoma, Arkansas, Tennessee, New York, Virginia and the Carolinas before arriving in Florida.
The victim had engaged in sex acts on previous occasions with West, who was a neighbor of her mother and father. She was legally in the custody of her grandmother but had been staying with her parents on occasion at the time she left the area with West.
On Jan. 28, 2013, the St. Lucie County Sheriff’s Office in Ft. Pierce, Fla., located West’s car at a Sleep Inn hotel. West had rented a room at the hotel the previous night during which time he engaged in sexual activity with the victim. Officers had observed the room and arrested West as he exited.
West admitted he stole an AR-15, hand guns, money and credit cards from a deceased friend in Texas prior to leaving the state with the victim.
West will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and the U.S. Marshals Service investigated.This case, prosecuted by Assistant United States Attorney Sherri 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."
Permanent Resident Charged in Viagrar and Cialisr CaseRead the Press Release
HOUSTON – Mohammad Jamal Rashid, 45, a legal permanent resident from Pakistan residing in Houston, has been arrested following the return of a seven-count indictment involving counterfeit Viagra® and Cialis® products, announced United States Attorney Kenneth Magidson and Special Agent in Charge Patrick J. Holland of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City Field Office.
The indictment, returned Sept, 12, 2013, was unsealed today upon his arrest. Rashid made his initial appearance this afternoon before U.S. Magistrate Judge Stephen Wm. Smith at which time he was permitted release upon posting bond.
“Today’s arrest demonstrates the continued commitment by the FDA-OCI and its law enforcement partners to aggressively pursue those allegedly involved in the sale of counterfeit pharmaceuticals,” said Holland. “Those ultimately convicted of such crimes are often motivated by greed and prey upon an unsuspecting public with no regard for public safety.”
The indictment charges Rashid with conspiracy, trafficking in counterfeit and misbranded Viagra® and Cialis® pills, introducing misbranded drugs into interstate commerce and smuggling.
Rashid allegedly conspired with others to import counterfeit and misbranded Viagra® and counterfeit and misbranded Cialis® to his home in Houston. The indictment alleges Rashid received a package containing approximately 3,200 counterfeit Viagra® and approximately 4,000 counterfeit Cialis® drugs. According to the indictment, Rashid accepted delivery and took possession of a package containing the counterfeit drugs which were addressed to Rashid’s home, under another person’s name on Jan. 26, 2012. The indictment further alleges Rashid delivered a package of counterfeit drugs to another individual on that same day.
The possible punishment for a conviction of trafficking in counterfeit goods is up to 10 years in prison and a fine of not more than $2 million. He further faces up to 20 years in prison and a $250,000 fine if convicted of smuggling as well as another five years and $250,000 fine for the conspiracy, upon conviction. For introducing misbranded drugs into interstate commerce, the possible punishment is up to three years in prison and a $10,000 fine.
The investigation was conducted by Homeland Security Investigations and the FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Four Sentenced for Drug TraffickingRead the Press Release
LAREDO, Texas – Four people have been ordered to prison for their role in a drug conspiracy to ship more than 1000 pounds of marijuana from Laredo to Dallas, announced United States Attorney Kenneth Magidson. Nancy Gutierrez, 28, and Jimmy Eusebio Trujillo, 50, both of Nuevo Laredo, Mexico, Pedro Menchaca, 39, of Rio Bravo, and Ricardo Cruz, 22, of Laredo, all entered guilty pleas at varying times in early 2013.
Today, U.S. District Court Judge Marina Garcia Marmolejo sentenced Gutierrez and Trujillo each to 60 months in federal prison, while Menchaca and Cruz will both serve 46-month-terms of imprisonment.
According to the evidence presented during the sentencing hearing today, these four defendants conspired between Aug. 13 – 20, 2009, to transport approximately 1,000 pounds of marijuana from Laredo to Dallas. Gutierrez recruited a Drug Enforcement Administration (DEA) confidential source to secure transportation for the marijuana. Subsequently, undercover agents, posing as would be transporters, then coordinated with Gutierrez and Trujillo on the delivery of the marijuana at a Laredo warehouse for loading onto an 18-wheeler and ultimate transportation to Dallas. They agreed the marijuana would be delivered to the warehouse in two separate loads.
Agents set up surveillance at the warehouse and witnessed Menchaca and Cruz in a beige minivan arrive at the warehouse and park next to a tractor trailer. They delivered 202.03 kilograms of marijuana which was then loaded onto the trailer. Menchaca and Cruz then departed the warehouse and were expected to return with another load of marijuana.
Trujillo was seen conducting counter surveillance around the area in a Dodge Durango.
The minivan and Durango traveled to a residence on the south side of Laredo where they picked up a second load of marijuana. A Webb County Sheriff’s Office (WCSO) deputy performed a traffic stop of Menchaca’s vehicle, at which time several duffle bags were discovered containing approximately 234 kilograms of marijuana.
Trujillo witnessed the seizure and proceeded back to the warehouse where he advised the undercover agents of the seizure and instructed them to proceed with taking the first load to Dallas. Ultimately, the tractor trailer and the marijuana load were seized, resulting in a total of 436.08 kilograms of marijuana seized in relation to these defendants.
The indictment against these four was one of seven relating to a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Ultimate D.” The OCDTEF investigation charged several drug trafficking cells operating out of the Laredo area engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston.
OCDETF Operation Ultimate D was spearheaded by the DEA with the assistance of Internal Revenue Service - Criminal Investigation, Webb County District Attorney’s Office, WCSO and the U.S. Marshals Service. Assistant United States Attorney Mary Lou Castillo is prosecuting the case.
Nuevo Laredo Man Gets 10 Years for Trafficking ICERead the Press Release
LAREDO, Texas – Arthur Carapia, 23, a U.S. citizen from Dallas residing in Nuevo Laredo, has been ordered to federal prison following his conviction for possession with intent to distribute 3.39 kilograms of a mixture containing methamphetamine, announced United States Attorney Kenneth Magidson. Carapia pleaded guilty May 13, 2103.
Today, U.S. District Judge Diana Saldana ordered him to prison for 120 months to be followed by a five-year-term of supervised release.
On March 8, 2013, Carapia was arrested at the El Espreso bus station in Laredo. Border Patrol agents had noticed Carapia wearing excessively large clothing while standing in line to board an autobus and subsequently discovered two packages of crystal methamphetamine attached to his legs.
Carapia was arrested and admitted his intentions to traffic these narcotics throughout the United States. He stated the drugs arrived from Nuevo Laredo and planned to transport them to Atlanta, Ga.
The methamphetamine, also known as “Ice” because of its high purity levels, weighed 3.39 kilograms and has an estimated street value of $288,000.
Carapia 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, Border Patrol and Laredo Police Department. Assistant U.S. Attorney (AUSA) Sanjeev Bhasker and former AUSA Roel Canales prosecuted the case.
Former Employee Pleads Guilty to Defrauding Exxon Mobil of More Than $1 MillionRead the Press Release
HOUSTON – Garry W. Arnold, of Dayton, has pleaded guilty to defrauding Exxon Mobil, his former employer, and causing a loss of more than $1 million, announced United States Attorney Kenneth Magidson.
Arnold 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 at least $1 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 a company the other person owned, after which the other person caused that company to make payments to 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 at least $1 million to One Source Industrial for work purportedly done by Metal Blinds. Arnold received at least $1 million in association with these invoices through his sham corporation. The other company also paid approximately $310,253.20 to Arnold as part of the concealed profit-sharing agreement.
U.S. District Judge Ewing Werlein Jr., who accepted Garza’s plea today, has set sentencing for Dec. 13, 2013. At that time, he faces a maximum penalty of 20 years in federal prison and a $250,000 fine or twice the pecuniary gain or loss.
The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
Federal Judge Sends Cuban to Prison for Possessing Debit and Credit Card Account NumbersRead the Press Release
McALLEN, Texas - Pedro Garcia-Morales, a legal permanent resident from Cuba living in Donna, has been sentenced to federal prison for approximately eight years following his conviction of possessing more than 15 unauthorized access devices with intent to defraud, United States Attorney Kenneth Magidson announced today. A McAllen federal jury convicted Garcia-Morales on May 14, 2013, following one day of trial and less than two hours of deliberation.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Garcia-Morales a 97-month sentence and further ordered he pay $1,359.61 in restitution. In handing down the sentence, Judge Alvarez noted that too many people think credit card abuse is a type of criminal activity that doesn’t really hurt anybody. However, it affects individuals whether they have a lot or a little in their accounts. Several victims struggled while their accounts were closed. Their accounts were overdrawn or they were financially stressed to find money to eat or pay for gas. The court noted that the defendant seemed to be living off of these people for several years.
During trial, the government contended Garcia-Morales, 41, knowingly possessed more than 500 account numbers linked to credit and debit cards belonging to people from all over the United States.
On Jan. 11, 2013, a search warrant was executed at the defendant’s home, at which time agents discovered two laptops, two flash drives, a credit card encoder and 49 gift/prepaid cards that had been encoded with stolen/unauthorized debit or credit card account numbers. The government proved Garcia-Morales knew the cards were to be used to make fraudulent purchases.
In fact, testimony of witnesses established that over a two-year period, Garcia-Morales used international hacking websites to purchase hundreds of account numbers. He then wired money internationally to hackers in China, Vietnam, Romania and the Ukraine. Encoding software on his laptops and flash drives was used to transfer the purchased account numbers on to the magnetic strips of gift/prepaid cards. The cards could then be used at retail stores to make seemly legitimate purchases. However, use of the cards unlawfully charged those transactions to others’ credit and debit card accounts.
Garcia-Morales will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Secret Service and the Hidalgo County Sheriff’s Office investigated. The case is being prosecuted by Assistant United States Attorney (AUSA) Kristen Rees and former AUSA Patricia Rigney.